CONTENTS
Overview
01 Highlights
02 Chairman’s Statement
03 Chief Executive’s Review
Corporate Governance
09 Board and Executive Management
10 Director’s Report
13 Corporate Governance
Financial Statements
16 Independent Auditor’s Report 
18 Consolidated Statement of Financial Position
20 Consolidated Statement of Comprehensive Income
21 Consolidated Statement of Changes in Equity
22 Consolidated Statement of Cash Flow
24 Notes to Consolidated Financial Statements OVERVIEW
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 has been reduced to 63%). Other partners 
in the bock 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 issued in November 2010, the 2P 
recoverable reserves, 2C contingent & best estimate prospective resources in the block are in 
excess of 4 tcf of gas.  1
HIGHLIGHTS
SGL Field Development
 Consistent gas production during the year with production from the block totalling 
2223 mmscf during the year.
 Successful drilling of new development wells with good gas shows. Sufficient number 
of development wells has been drilled & completed to meet gas supply requirement 
of 33.5 mmcf/d (net of Co
2
) under Phase II of the sale agreement signed with GAIL. 
 Successful completion of the new ‘Gas Gathering Station (GGS)’ with CO² removal 
facility with daily production capacity of approximately 65 mmcf/d gas. 
 GAIL has been notified of its “take or pay” obligation in respect of Phase II gas supplies 
under the GSPA. With the commencement of this Phase II, the price of the gas also will 
increase from US$ 4.11 per mmbtu to US$ 5 per mmbtu.
 On-going negotiation for supply of additional 28 mmscfd (net of CO²) to state owned 
power company (RRVUNL) through GAIL in advanced stages. RRVUNL has already 
ordered the turbine for additional 160 MW capacity following requisite approvals for 
this expansion. 
Operational (Cumulative as on 31
st
 March 2012)
 Acquired, processed and interpreted 1,371 km
2
 of 3D seismic data as on 31 March
2012, with additional 174 km
2
 of 3D seismic data acquired between April-July 2012.
 Acquired, processed and interpreted 1,037 line km of 2D seismic data. 
 Drilled a total of 29 wells totalling 100,020 meters. 
Financial 
 Consolidated revenues, operating profits & profit before tax of respectively 
US$ 6.76 mn, US$ 3.98 mn & US$ 3.13 mn for the year. Provision of notional deferred 
tax liability of US$ 1.78 mn as per IFRS requirements. Given the Company’s carried 
forward capital depreciation allowances management believe this is not likely to be 
payable for many years if at all. 
 Total net cash investment of US$ 68.83mn during the year in respect of appraisal and 
development of the Block. Partly financed from drawdowns of US$ 52.39mn from 
US$ 110mn debt facility and renewed existing related party loan of US$ 25.27mn 
during the year.
 Repayment of term loan facility commenced in respect of US$ 110mn debt facility 
sanctioned earlier - total repayment of US$ 11.79mn of principle and payment of 
interest of US$ 4.77mn during the year. 
 Sanction of a new debt facility of US$ 40mn by existing lenders. The facility has been 
fully utilized post year ending 31 March 2012. 2
CHAIRMAN’S STATEMENT
It is my pleasure to present to shareholders the Fourth Annual Report and Consolidated 
Financial Statements of Indus Gas Limited (the “Company”), covering the financial year from 
1
st
 April 2011 to 31
st
 March 2012.
During the year 2011-12, the main focus of the Company has been to complete SGL Field 
Development. I am pleased to note that the Company has substantially completed the SGL 
Field Development including installation of the required gas production facilities and drilling 
of a large number of production wells to deliver contracted quantities of gas. This will expand 
the revenues of the Company in a significant manner and will provide financing for further 
appraisal investments and will meet repayment obligations under the contracted debt facilities.
Further, in view of 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 current 4,026 km
2
 discovery area. The Company 
has drilled several new wells and tested previously drilled wells in addition to drilling new 
prospects to meet this requirement. 
The gas market scenario in India is undergoing a significant change. Due to supply shortages 
from largest producing field in KG basin, India had to import a large quantity of gas on prices 
much higher than domestic prices. The domestic gas producers are increasingly looking for 
price parity with imported gas. Looking into the energy scarcity in the country and huge 
amount of locked investment in gas based industries like power; the price of domestic gas is 
expected to increase sharply over medium to long term. In the short term also, some correction 
in the average gas prices realized by the Company may be possible. 
The Company has received continued financial support from existing lenders to enable it to 
make the required investment in the Block and discharge all its repayment obligations. 
As I look forward for one more eventful year, I thank all our stakeholders, partners and lenders 
for providing the required support and encouragement. I also like to appreciate the efforts of 
the operator, for success in quest for new reserves as well as commercialisation of the existing 
reserves. 
MARC HOLTZMAN
Chairman
19
th
 September, 2012 3
CHIEF EXECUTIVE’S REVIEW
We have had another active year and am I 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 fulfilled all the tasks needed 
to set up the infrastructure for meeting the requirements of enhanced production as per the 
GSPA. We have also continued with our appraisal program and have done significant drilling 
and testing, confirming and establishing further gas presence. The summary of activities since 
April 2011 is described below:
SGL Field Development
During the year, a total quantity of 2,223 mmscf of gas was produced from the field and 
supplied to GAIL. There were no major breakdowns, and all parties met their respective 
obligations under the ‘Take or Pay’ agreement with respect to Phase I of contracted gas supply 
of approximately 7 mmcf/d. This gas has been supplied without CO² removal and GAIL pays 
a price of US$ 4.11 per mmbtu for the Phase I gas supplies.
As per gas sale contract signed with GAIL, the daily gas supply quantities were to be enhanced 
to around 33.5 mmcf, for which the Company needed to install a large gas gathering station 
and processing plant consisting of CO² removal facilities. As per agreement, the price of gas 
is to be revised to US$ 5 per mmbtu once this second phase (Phase II) commences.
While this Phase II gas production was originally scheduled to commence from April 2011, 
this was delayed due to certain technical issues in plant design, fabrication and delays on the 
part of one of key supplier of gas processing plant. The Company has utilized this period to 
increase the capacity of the gas processing plant so that similar delays are not experienced in 
future. Now the Company has completed the Phase II production facilities and is fully geared 
up to expand the sales gas quantity from 7 mmcf/d (without CO² removal) to 33.5 mmscf/d 
(net of CO²). 
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. Sufficient number of production wells have been drilled and completed and are 
now ready for production to meet the contracted requirements of Phase II. We understand 
that final gas consumer, RRVUNL is in the final stages of implementation of its power plant 
expansion, and the enhanced gas supply is expected to start from Q4’ 2012. However, GAIL 
has been notified of its contracted “take or pay” obligation agreed in gas sales agreement 
and we believe that GAIL will commence “take or pay” payment shortly upon successful testing 
of Phase II facilities. GAIL/RRUVNL has already inspected new facilities and the respective 
parties are making arrangement to commission & test Phase II at the earliest. 4
As part of future gas development, the Company has made further advances in the negotiations 
with GAIL/RRVUNL for supply of additional 28 mmscfd 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, RRVUNL has already placed order for the power plant in 
anticipation of signing gas sales contract with the Company. 
Drilling, Seismic and Completion Operations
Operational activities over the last year have largely followed Company’s multiple objectives 
in following order of priority:
a) drilling and completion of production wells for SGL Field Development as planned to 
enable meet gas sale contractual requirements, 
b) appraisal drilling covering as large an area as possible to be able to retain maximum 
potential area as development area upon completion of appraisal phase in early 2013 
under the Production Sharing Contract; 
c) testing various wells previously drilled, where gas shows were encountered to enable 
company to increase its reserve base: and 
d) test tight gas recovery potential in addition to conventional gas discovered in the 
Pariwar and B&B formation. 
During the year, the Company has been acquiring in phases significant amounts of new 
seismic data, giving more clarity on the Block potential and providing with additional drilling 
prospects. Some of these new prospects have been drilled/under drilling and a few more are 
proposed to be drilled. Some of the existing zones which had earlier shown encouraging results 
have been further drilled and tested. A good number of gas shows have been encountered 
during the year. 
As the Company has materially expanded its operation, the company has installed a central 
camp & warehousing facility in the Block, and all its logistics are now channelized through this 
base camp. This has resulted in increased operational efficiencies, less wastage and enhanced 
control on both the utilisation as well as availability of critical resources. The time for drilling 
a well has now reduced significantly. This has also brought in efficiency in terms of manpower 
cost, energy costs and to some extent on the overheads. With the reduced time required for 
drilling achieved through efficient rig utilisation, the Company is well set to drill extensively in 
the next year and appraise the maximum area in the block.
The details of the wells, which were either drilled or on which additional activities include the 
following: 5
SGL-P1 (3505m) Gas Producer (Pariwar)
Production well - SGL-P1 (formerly called SGL-P3) was drilled in an optimal position on the 
crest of the SGL field structure and was the first location selected for ongoing development 
of the SGL Field. The well was terminated in the Pariwar Formation at 3505 meters, cased, 
completed & tested and is ready to produce gas from the main ‘P10’ reservoir zone.
SGL-D2 (3211m) Gas Producer (Pariwar)
Production well - SGL-D2 has been drilled on the Western flank of the SGL field area, potentially 
within a separate fault-compartment to the other SGL wells. The well was terminated in the 
Pariwar Formation at 3211 meters, cased, completed & tested and is ready to produce gas 
from the main ‘P10’ reservoir zone.
SGL-5 (3340m) Gas Producer (Pariwar)
Production well - SGL-5 has been drilled in the Northern-most part of the SGL field area. The 
well was terminated in the Pariwar Formation at 3340 meters, cased, completed & tested and 
is ready to produce gas from the main ‘P10’ reservoir zone.
SGL-6 (3325m) Gas shows (Pariwar)
Production well SGL-6 encountered good gas shows within the target Pariwar reservoir zone. 
The well was terminated at 3325 meters, cased and perforated for production from the Key 
‘P10’ reservoir zone with a 3 metre perforation interval (3139-3142m). In spite of good 
drilling and wireline log gas shows, as seen in other nearby wells on the SGL Field that flows 
successfully, this well has not flowed in line with other production wells drilled so far. This 
appears to indicate a mechanical/completion failure and further testing and assessment is 
ongoing currently.
SGL-7 (3230m) Gas Producer (Pariwar)
Production well SGL-7 encountered a pronounced clean sand interval within the main target 
zone of the Pariwar Formation with strong drilling and wire line log gas shows. The well was 
terminated at 3230 meters, cased, completed & tested and is ready to produce gas from the 
main ‘P10’ reservoir zone. 
SGL-8 (3215m) Gas Producer (Pariwar)
Production well SGL-8 encountered gas shows within the target Pariwar reservoir zones. The 
well was terminated at 3215 meter, cased, completed & tested and is ready to produce gas 
from the main ‘P10’ reservoir zone.
Southern Comfort-1 (4478m) Gas Shows (Pariwar / B&B)
Appraisal well - Southern Comfort-1 located in the extreme South area of RJ-ON/6 Block was 
drilled to 4,478 meters and cased/completed. The well successfully recovered gas to surface  6
during open-hole testing of the Pariwar formation, but testing complications arising due to 
sand production meant that this zone could not be fully evaluated. B&B formation with good 
gas shows is awaiting further testing and evaluation in this well. The Company also plans to 
drill another well nearby to re-evaluate Pariwar formation potential.
SX-2 (3390m) Gas Shows (Pariwar)
Appraisal well SX-2 is located in the extreme South-Western area of RJ-ON/6 Block and was 
drilled with the initial primary objective of testing the extent of over pressured gas within B&B 
Formation reservoir target zones. During drilling, the well encountered significant gas shows 
in the Pariwar Formation (secondary) reservoir target zone which successfully flowed gas to 
surface during DST. Accordingly, drilling was terminated at 3390 meters to Pariwar Formation 
and the well was cased for further assessment. However, subsequent tests were inconclusive, 
probably as a result of mechanical/completion issues. The well is currently undergoing further 
assessment.
SU-1 (3885m) Gas Shows (Pariwar / B&B)
The primary aim of appraisal well SU-1 was to assess the presence of over-pressured gas 
within the lower B&B Formation in the extreme Southern parts of Block RJ-ON/6 which were 
encountered in nearby wells INDIAN SHINGLI-1 and SOUTHERN COMFORT-1. The well is 
currently drilling into the B&B Formation at the time of writing with gas shows in the Lower B&B 
and within the Pariwar ‘P10’ reservoir zone highlighted for further assessment in due course.
The results of both appraisal as well as production drilling have been extremely encouraging, 
particularly at Pariwar formation across the entire South Western area of the RJ-ON/6 Block. 
Partly due to this success and partly due to requirement of drilling large number of production 
wells to meet contractual requirements of gas sales, the Company has not been able to focus 
much on B&B formation or tight gas potential. With the appraisal period coming to end in 
early 2013, the company will have to further delay drilling targeted at B&B formation and tight 
gas to late 2013 and beyond, as the immediate focus will continue to be on drilling as many 
appraisal well covering as large area as possible, so that the company can retain maximum 
potential area as development area. Upon conclusion of the appraisal period in 2013, the 
Company will submit an integrated development plan based on accumulated reserves from 
various wells/fields. 
Based on the operational activities till date, the Company has initiated a new reserve report to 
establish additional reserves/resources. The reserve report is expected to be published later 
in the year. 
Financials
During the financial year, the company has sold 2,223 mmscf of gas (without CO2 removal) 
and invoiced revenues of US$ 6.76 mn, resulting into the operating profit of US$ 3.98 mn.  7
The profit before tax was US$ 3.13 mn after considering foreign exchange gain of US$ 
0.10 mn and interest cost of US$ 0.95 mn.
While, the Company is not expected to pay any significant taxes on its income for many years 
in view of the 100% depreciation allowed under Indian income tax act on the capital expenses 
in the Block, the Company has accrued a notional non-cash deferred tax liability of US$ 1.78 
mn as per IFRS requirements. 
Post this deferred tax liability provision, the net profit for the year was US$ 1.36 mn.
The exploration and evaluation assets have increased by US$ 26.89 mn to US$ 41 mn. The 
development assets and other tangible plant and machinery have increased by US$ 39.05 mn 
after considering an amortisation of US$ 1.91 mn for the year.
The current assets (excluding cash) as on 31 March 2012 stood at US$ 8.99 mn, which 
includes US$ 7.95 mn of inventory and US$ 0.80 mn of trade receivables. The current 
liabilities of the Company, excluding the related party liability of US$ 49.40 mn and current 
portion of long term debt of US$ 15.42 mn, stood at US$ 2.71 mn. This comprised mainly 
of deferred revenue of US$ 2.43 mn and accrued expenses and liabilities of US$ 0.26 mn.
As on 31 March, the outstanding term loan of the Company was US$ 96.87 mn, out of which 
US$ 15.42 mn was categorised as short term (repayable within a year) and the remaining 
US$ 81.46 mn has been categorised as long term liability. This liability is part of a US$ 
110mn term loan facility, against which, the company utilized US$ 52.41 mn during the 
year availing almost the entire sanctioned amount of US$110mn. As per agreed terms, the 
repayment of the facility also commenced from August 2011 and company repaid an amount 
of US$ 11.79 mn as per the scheduled repayment plan. 
In view of delay in implementation of phase II, the repayment obligation was met primarily 
through continued financial support from a related company (which has a majority shareholding 
in the Company). Accordingly, the amount payable to related parties have increased by 
US$ 20.77 mn from US$ 81.17 mn in F .Y 2010-2011 to US$ 101.94 mn in F .Y 2012. As on 
31 March 2012, the current portion of related party payable is US$ 49.40 mn whereas the 
non-current portion is US$ 52.54 mn. The non-current portion accrues an interest @6.5% per 
annum, is subordinated to the bank term loan and is repayable (both interest and principle) 
only after the entire term loan availed from the bank lenders have been paid off.
In addition to initial US$110mn term debt facility, the Company received sanction for an 
additional term debt facility of US$ 40 mn from the existing lenders to enable the company to 
repay part of the short term loan to the related party and meet additional capital investment 
requirements during FY 2012-13. The facility carries interest rate of 3 month LIBOR + 4.25% 
till six months from confirmation of achievement of Phase II production of 33.5 mmcf/d and 
3 month LIBOR + 4.00% thereafter. The loan is to be repaid in 28 quarterly instalment of  8
US$ 0.40 mn each commencing from June 2012 and 8 quarterly instalments of US$ 3.60mn 
each commencing from June 2019, with entire facility scheduled to be repaid by March 
2021. The documentation of this facility was signed on 1
st
 March 2012 and the facility was 
completely drawn before June 2012.
The Company expects to meet its capital investment requirements during FY 2012-13, primarily 
from loans and revenues from gas sales. The Company also expects to be able to contract 
additional debt financing from banks/institutions after establishment of additional reserves, 
contracting additional gas supplies and commencement of Phase II production to meet long 
term capital requirements beyond 2012-13.
Outlook
During the next twelve months, we look forward to continued extensive appraisal drilling and 
testing campaign to be able to establish 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 early 2013. It is intended to receive a new 
reserve report by end of 2012. 
Based on the outcome of new reserve report and further appraisal drilling, we will consider 
various development options to be able to exploit gas resources in an integrated manner with 
an eye to maximize gas sales revenues considering Indian gas market dynamics, which are 
changing rapidly and hopefully in the direction of better market prices.
AJAY KALSI
Chief Executive Officer
19
th
 September, 2012  9
BOARD AND EXECUTIVE MANAGEMENT
MARC HOLTZMAN (52) – CHAIRMAN & NON EXECUTIVE DIRECTOR
Mr. Holtzman is Chairman of Meridian Capital Asia and an Executive Vice Chairman of 
Barclays Capital. He has over two decades of international business, financial, political and 
public service experience across America, Russia and Eastern Europe, in various capacities, 
including being 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 financial sectors, president of the University of Denver, Secretary of Technology of 
Colorado State and senior positions in various committees and non-profit organizations. He 
holds a BA in economics from Lehigh University.
AJAY KALSI (51) – CHIEF EXECUTIVE OFFICER
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.
JOHN SCOTT (54) – CHIEF FINANCIAL OFFICER
Mr. Scott entered the oil industry in 1980 with the British National Oil Corporation and 
worked in a variety of technical and commercial roles. Following an MBA at London Business 
School, he joined the Energy Group of Citibank and subsequently gained corporate finance 
experience at ABN Amro and Standard Bank. Mr Scott returned to the industry with Halliburton 
in a senior financial role and has been Finance Director of the Toronto Venture Stock Exchange 
listed Exile Resources Inc.
JOHN BEHAR (42) – NON EXECUTIVE DIRECTOR
Mr Behar has over 17 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. 10
DIRECTORS’ REPORT
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 2011 to 31
st
 March 2012.
Principal activity and review of the business
The principal activity of the Company is that of oil and gas exploration, development and 
production in India.
Results and dividends
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 2010-11: £nil).
Review of business and future developments
A review of the business and likely future developments of the Company are contained in the 
Chairman’s statement on page 2 and the CEO’s review on page 3.
Directors and Director’s interests
The Directors of the Company during the year are noted on page 9.
Directors Remuneration
The Directors’ remuneration for the year ended 31
st
 March 2012 was:
Remuneration (£) Remuneration (US$)
Ajay Kalsi 150,000 236,625
John Scott 100,000 159,074
Marc Holtzman 40,000 63,828
John Behar 25,000 40,064
Total Director’s Remuneration 315,000 499,591
 There are no further cash payments or benefits provided to Directors. 11
Directors Share Options
The share options in force at 31
st
 March 2012 and held by current 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
Exercise period for options will expire on the fifth anniversary of Admission in June 2013.
Financial instruments
Details of the use of financial instruments by the Company are contained in note 29 to the 
attached financial statements.
Related party transactions
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.
Going 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 
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.
Directors’ responsibilities
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  12
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 maintenance and integrity of the corporate financial 
information including 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 (‘IFRS’) endorsed by the European Union (‘EU’);
 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.
Auditors
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 Company’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
JOHN SCOTT
Director
19
th
 September, 2012  13
CORPORATE GOVERNANCE
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 Directors
The Board is responsible for the proper management of the Company. The Board comprises 
of two Executive Directors, Ajay Kalsi (CEO) & John Scott (CFO) and two Non-Executive 
Directors, Marc Holtzman (Chairman) and John Behar. The resume of the board members is 
as outlined on page 9.
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.
Sub-Committees
The Board has appointed the three sub-committees outlined below. All of the sub-committees 
have met during the year as required.
Audit 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.
Remuneration 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 
and recommends to the Board the total individual package of each executive director including  14
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.
Nomination 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.
Share Dealing
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.
The City Code on Takeovers 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.
Disclosure and Transparency Rules
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 
requirements of Rule 17 of the AIM Rules. Furthermore, the Articles may be amended in the 
future by a special resolution of the Shareholders. 15
Control by significant shareholder
Mr Ajay Kalsi through private companies mainly Gynia owns a significant percentage of the 
Company. Mr Kalsi 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. 16
Independent Auditor’s Report to the Members 
of Indus Gas Limited
We have audited the consolidated financial statements of Indus Gas Limited (the ‘Company’) 
for the year ended 31 March 2012 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 and the company’s 
members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As described in the Statement of Directors’ Responsibilities on page 11 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.
Scope 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. 17
Opinion 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 2012 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: 
Under The Companies (Guernsey) Law, 2008 we are required 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 
19
th
 September, 2012 18
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(All amounts in United States Dollars, unless otherwise stated)
31 March 2012 31 March 2011
ASSETS
Non-current assets
Intangible assets: exploration and evaluation 
assets
6 40,997,873 14,110,885
Property, plant and equipment 7 212,407,163 173,356,791
Deferred tax assets (net) 8 - 618
Other assets 885 11,149
Total non-current assets 253,405,921 187,479,443
Current assets
Inventories 10 7,949,584 6,439,619
Trade receivables 796,047 1,172,052
Current tax assets 114,322 35,639
Other current assets 11 126,546 746,501
Cash and cash equivalents 12 248,246 2,252,815
Total current assets 9,234,745 10,646,626
Total assets 262,640,666 198,126,069
LIABILITIES AND EQUITY
Shareholders’ equity
Share capital 13 3,618,472 3,618,472
Additional paid-in capital 13 46,501,666 46,501,666
Currency translation reserve (9,313,781) (9,313,781)
Merger reserve 19,570,288 19,570,288
Share option reserve 21 398,569 386,381
Accumulated losses (2,184,754) (3,541,234)
Total shareholders’ equity 58,590,460 57,221,792 19
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTD.)
(All amounts in United States Dollars, unless otherwise stated)
31 March 2012 31 March 2011
Liabilities
Non-current liabilities
Long term debt from banks, excluding current 
portion
14 81,457,230 45,089,825
Provision for decommissioning 15 745,651 501,392
Finance lease obligations, excluding current 
portion
16 3,100 31,222
Deferred tax liabilities (net) 8 1,775,857 -
Payable to related parties, excluding current 
portion
17 52,540,536 45,369,000
Total non-current liabilities 136,522,374 90,991,439
Current liabilities
Current portion of long term debt from banks 14 15,415,367 11,835,959
Current portion of finance lease obligations 16 23,014 68,126
Current portion payable to related parties 17 49,402,804 35,801,031
Accrued expenses and other liabilities 257,602 93,050
Deferred revenue 2,429,045 2,114,672
Total current liabilities 67,527,832 49,912,838
Total liabilities 204,050,206 140,904,277
 
Total equity and liabilities 262,640,666 198,126,069
(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 19
th
 September, 
2012 and was signed on its behalf by:
JOHN SCOTT
Director 20
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(All amounts in United States Dollars, unless otherwise stated)
Year ended
31 March 2012
Year ended
31 March 2011
Revenues 6,762,763 2,187,649
Cost of sales (1,052,416) (518,515)
Gross profit 5,710,347 1,669,134
Cost and expenses
Administrative expenses (1,732,573) (1,578,364)
Income from operations 3,977,775 90,770
Foreign currency exchange gain/(loss) 19 101,414 (1,346,582)
Interest expense (946,284) (1,183,161)
Interest income 50 21,846
Profit/(loss) before tax 3,132,954 (2,417,127)
Income taxes 9
- Deferred tax (expense)/credit (1,776,474) 618
Profit/(loss) for the year (attributable to the 
shareholders of the company) 1,356,480 (2,416,509)
Other comprehensive income
Currency translation adjustment - 1,241,191
Total comprehensive income/(loss) for the year
(attributable to the shareholders of the company) 1,356,480 (1,175,318)
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) 21
CONSOLIDATED STATEMENT 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 2010 182,913,924 3,618,472 46,501,666 (10,554,972) 19,570,288 341,303 (1,124,725) 58,352,032
Share based payment 
transactions
- - - - - 45,078 - 45,078
Transactions with owners - - - - - 45,078 - 45,078
Loss for the year - - - - - - (2,416,509) (2,416,509)
Other comprehensive income:
Currency translation adjustment - - - 1,241,191 - - - 1,241,191
Total comprehensive income/ 
(loss) for the year
- - - 1,241,191 - - (2,416,509) (1,175,318)
Balance as at 31 March 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
Transaction 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
(The accompanying notes are an integral part of these consolidated financial statements)  22
CONSOLIDATED STATEMENT OF CASH FLOW
(All amounts in United States Dollars, unless otherwise stated) 
Year ended 31 
March 2012
Year ended 31 
March 2011
Cash flow from operating activities
Profit/(loss) before tax 3,132,954 (2,417,127)
Adjustments
Unrealised exchange loss 3,268 1,283,713
Interest income (50) (21,846)
Interest expense 946,284 1,183,161
Share based payment 12,188 45,078
Depreciation 484,055 156,168
Changes in operating assets and liabilities
Inventories (1,509,965) (1,102,087)
Payable to related party-operating activities 1,892,333 1,735,628
Trade receivables 376,005 (1,172,052)
Deferred revenue 314,372 2,114,672
Other current and non-current assets (8,260) 516,663
Accrued expenses and other liabilities 158,506 41,898
Cash generated from operations 5,801,690 2,363,869
Income taxes paid (78,680) -
Net cash generated from operating activities 5,723,010 2,363,869
Cash flow from investing activities
Investment in exploration and evaluation assets 
A
(24,100,129) 51,423,352
Purchase of property, plant and equipment 
A
(44,727,688) (116,386,152)
Maturity of short term investments - 8,831,712
Interest received 50 21,846
Net cash used in investing activities (68,827,750) (56,109,242) 23
CONSOLIDATED STATEMENT OF CASH FLOW (CONTD.)
(All amounts in United States Dollars, unless otherwise stated) 
Year ended 31 
March 2012
Year ended 31 
March 2011
Cash flow from financing activities
Repayment of long term debt from banks (11,790,000) -
Proceeds from loans by related parties 25,269,213 15,196,962
Proceeds from long term debt from banks 52,385,604 42,823,156
Payment of interest (4,767,424) (1,183,161)
Net cash generated from financing activities 61,097,393 56,836,957
Net (decrease)/increase in cash and cash equivalents (2,007,347) 3,091,584
Cash and cash equivalents at the beginning of the year 2,252,815 220,724
Effects of exchange differences on cash and cash 
equivalents
2,778 (1,059,493)
Cash and cash equivalents at the end of the year 248,246 2,252,815
(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.  24
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in United States Dollars, unless otherwise stated)
1. INTRODUCTION
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.  25
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 2012 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 2012 31 March 2011
Non-current assets 253,405,037 187,467,676
Current assets 7,949,854 6,439,619
Non-current liabilities 10,745,651 45,901,614
Current liabilities 49,425,818 19,998,780
Expenses (net of finance income) 1,537,740 429,383
Commitments 15,660,379 20,923,564
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. Based on the 
Group’s current business model and accounting policies, management does not expect material changes  26
to the recognition and measurement principles on the Group’s consolidated financial statements when 
these Standards/Interpretations become effective. Information on the new standards, amendments and 
interpretations that are expected to be relevant to the Group’s consolidated financial statements is provided 
below.
(I) Information on new standards, amendments and interpretations that are expected to be relevant to 
the Group’s financial statements and which have not been endorsed by the European Union 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 by 
the end of 2010, 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.
Amendment (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 Agreements (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  27
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 
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 ACCOUNTING 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 CONSOLIDATION
The consolidated financial statements include the financial statements of the parent company and all of its 
subsidiary undertakings drawn up to 31 March 2012. 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.  28
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. 
5.2. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES
In preparing consolidated financial statements, Group’s management is required to make judgements, 
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 judgements, estimates and assumptions that have the most 
significant effect on recognition and measurement of assets, liabilities, income and expenses is provided 
in note 26 below. 
5.3. FOREIGN CURRENCIES
The consolidated financial statements have been presented in US$. 
Foreign currency transactions are translated into the functional currency of the respective Group entities, 
using the exchange rates prevailing at the dates of the transactions (spot exchange rate). Functional 
currency is the currency of the primary economic environment in which the entity operates. Foreign 
exchange gains and losses resulting from the settlement of such transactions and from the re-measurement 
of monetary items at year-end exchange rates are recognised in the profit or loss for the year. 
Non-monetary items measured at historical cost are recorded in the functional currency of the entity using 
the exchange rates at the date of the transaction. 
The Company has changed its functional currency from GBP to US$ during the previous year. This change 
was accounted for prospectively, accordingly relevant assets and liabilities in the Company have been 
translated into US$, which is also the Group’s presentation currency at the date of change in the functional 
currency. Income and expenses have been translated into US$ at the average rate over the related period. 
Exchange differences on this change are charged/ credited to the currency translation reserve in equity.  29
5.4 REVENUE RECOGNITION
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.
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 below. 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: 30
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 will be 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 
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 licence 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 licence 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. 31
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 
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. 32
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.
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  33
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. ACCOUNTING 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 
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. 34
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 ACTIVITIES
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.
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. OTHER 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 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. 35
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) 36
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 2010 68,534,029
Additions 39,770,041
Transfer to development assets 
B
(94,193,185)
Balance as at 31 March 2011 14,110,885
Additions 26,886,988
Transfer to development assets -
Balance as at 31 March 2012 40,997,873
The above includes borrowing costs capitalised of US$ 1,584,671 (previous year: US$ 1,474,526) 
during the year. The weighted average capitalisation rate on funds borrowed generally is 5.9 per cent 
per annum (previous year 4.4 per cent).
The Group has a valid appraisal license till January 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.
B
Based on a study conducted by an independent expert and their report of 26 November 2010, the 
Group believes that gas reserves discovered in the Eastern Promise 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 2010 into development assets. The aforementioned discovery shall be 
assessed for technical feasibility and commercial viability by the Management Committee (comprising of 
representatives of, inter alia, Newbury, iServices, Focus, ONGC and DGH) as required by the Production 
Sharing Contract.
(This space has been intentionally left blank) 37
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
D
Other
assets
Capital
work-in-
progress
Total
Balance as at 1 April 2010 34,204 1,426,788 51,326,085 3,074,036 1,060,501 800,564 1,332,454 59,054,632
Additions/transfers 2,233 493,550 114,746,292
C
1,023,520 801,707 287,227 2,241,540 119,596,069
Disposals/transfers - - - 237,173 - 25,998 1,900,988 2,164,159
Balance as at 31 March 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 37,010,640 392,313 1,832,201 238,616 1,708,555 42,200,200
Disposals/transfers - - ---- 1,244,110 1,244,110
Balance as at March 2012 36,437 2,951,796 203,083,017 4,252,696 3,694,409 1,300,409 3,381,561 217,456,215
Accumulated Depreciation
Balance as at 1 April 2010 - 131,023 - 981,584 340,582 399,423 - 1,852,612
Depreciation for the year - 131,419 156,168 546,771 270,300 179,857 - 1,284,515
Disposals/transfers - - - 6,163 - 1,213 - 7,376
Balance as at 31 March 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 1,905,852
Disposals/transfers - - ---- - -
Balance as at 31 March 2012 - 460,382 640,223 2,188,364 1,030,020 730,063 5,049,052
Carrying values
At 31 March 2011 36,437 1,657,896 165,916,209 2,338,191 1,251,326 483,726 1,673,006 173,356,791
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
The balances above represent the Group’s share in property, plant and equipment as per Note 3. 
C
 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 
production facilities (gas gathering station) in respect of the SGL field. The Group commenced production 
facility from July 2010, and accordingly such production assets have been depreciated since this date. 38
As mentioned in note 6, during the year ended 31 March 2011, development assets also include a 
transfer from exploration and evaluation assets, in respect of the Eastern Promise field, consequent 
to the commercial viability and technical feasibility of the reserves in the field, basis a report by 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$ 7,416,354 (previous year: 
US$ 3,635,743). The weighted average capitalisation rate on funds borrowed generally is 5.9 per cent 
per annum (previous year 4.4 per cent).
D
These vehicles have been secured against the finance leases as disclosed in Note 16.
The depreciation has been included in the following headings:
31 March 2012 31 March 2011
Depreciation included in exploration and evaluation 
assets
1,205,795 1,014,845
Depreciation included in development assets 199,569 106,125
Depreciation included in statement of comprehensive 
income under the head cost of sales
484,055 156,168
Total 1,889,419 1,227,138
8. DEFERRED TAX ASSETS/LIABILITIES (NET)
Deferred taxes arising from temporary differences are summarized as follows: 
  31 March 2012 31 March 2011
Deferred tax assets
Brought forward losses (Refer note 9 below) 92,437,437 7,481,719
Other tax credits - 1,820
Total 92,437,437 7,483,539
Deferred tax liabilities
Depreciation of development/production assets 17,538,163 6,848,022
Amortization of exploration and evaluation assets 75,805,470 595,903
Depreciation of property, plant and equipment 869,660 38,996
Total 94,213,294 7,482,921
Net deferred tax (liabilities)/assets (1,775,857) 618 39
9. INCOME 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 2012 31 March 2011
Current tax - -
Deferred tax (expense)/credit (1,776,474) 618
Total (1,776,474)618
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 2012 31 March 2011
Accounting profit/(loss) for the year before tax 3,132,954 (2,417,127)
Non taxable loss (1,073,693) (2,419,973)
Taxable income 4,206,647 2,847
Effective tax at the domestic rates applicable to profits in 
the country concerned
(1,776,474) (1,202)
Other tax credits - 1,820
Tax credit (1,776,474) 618
Indus Gas profits are taxable as per the tax laws applicable in Guernsey where zero per cent 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. However, considering the existence of double tax avoidance 
arrangement between Cyprus and India and Mauritius and 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 have opted to claim the expenditure in the first year of commercial production. During the year 
ended 31 March 2011, as the Group has commenced commercial production and has generated profits 
in Newbury and iServices, the management believes there is reasonable certainty of utilisation of such 
losses in the future years and thus a deferred tax asset has been created in respect of these. 40
10. INVENTORIES
Inventories comprise of the following:
31 March 2012 31 March 2011
Drilling and production stores and spares 7,868,454 6,348,371
Fuel 43,955 79,076
Goods in transit 37,175 12,172
Total 7,949,5846,439,619
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 5.9. 
Inventories of US$ 1,052,416 (previous year: US$ 122,634) were recorded as an expense under the 
heading ‘cost of sales’ in the consolidated statement of comprehensive income during the year ended 
31 March 2012.
11. OTHER CURRENT ASSETS
31 March 2012 31 March 2011
Prepayments for
- procurement of debt 17,894 656,373
- others 108,652 90,128
Total 126,546746,501
Prepayments for procurement of debts represent the proportionate fee paid for the un-utilised facility 
(refer Note 14).
12. CASH AND CASH EQUIVALENTS
31 March 2012 31 March 2011
Cash at banks in current accounts 248,246 2,252,815
Total 248,2462,252,815
The Group only deposits cash surpluses with major banks of high quality credit standing.
13. EQUITY
Authorised 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 2012 is 182,913,924 
(previous year: 182,913,924). 41
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. 
Additional 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 of on translation of entities financial statements into 
US$, where the functional currency is different than US $.
Share option reserve
The amount of share option reserve represents the accumulated expense recognized by the company in 
its profit & loss on account of share based options given by the Company.
 Merger reserve
The balance on the merger reserve represents the fair value of the consideration given in excess of the 
nominal value of the ordinary shares issued in an acquisition made by the issue of shares.
14. LONG TERM DEBT FROM BANKS
Maturity 31 March 2012 31 March 2011
Non-current portion of long term debt 2018 81,457,230 45,089,825
Current portion of long term debt from banks 15,415,367 11,835,959
Total 96,872,59756,925,784
In March 2010, Indus Gas signed an agreement with a consortium of banks for a term loan of 
US$ 110,000,000 repayable in quarterly instalments commencing on 31 August 2011. The loan bears 
interest of LIBOR plus 500 basis points. Indus Gas has drawn US$ 109,904,073 (previous year US$ 
57,490,173) against this loan during the current financial year.
Interest capitalised on loans above have been disclosed in note 6 and 7.
The term loan is 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.
In addition to above loan, in March 2012, Indus Gas signed an agreement with a consortium of banks for 
a term loan of US$ 40,000,000 repayable in quarterly instalments commencing on 30 June 2012. The 
loan bears interest of LIBOR plus margin which will be a minimum of 400 basis point. Indus Gas has not 
drawn any balance on this loan as at 31 March 2012.  42
The fair value of the above variable rate borrowings are considered to approximate their carrying 
amounts.
Financing facilities 
31 March 2012 31 March 2011
Bank loan facilities with various maturity dates through to 
2018
 - amount used 109,904,073 57,490,173
 - amount unused 95,927 52,509,827
110,000,000 110,000,000
31 March 2012 31 March 2011
Bank loan facilities with various maturity dates through to 
2021
 - amount used - -
 - amount unused 40,000,000 -
40,000,000 -
15. PROVISION FOR DECOMMISSIONING
 
Provision for 
decommissioning
Balance at 1 April 2010 369,809
Additions 131,583
Balance as at 31 March 2011 501,392
Additions 244,259
Balance as at 31 March 2012 745,651
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. 43
The table below summarises the total liability on account of these finance lease payments:
31 March 2012 31 March 2011
Finance lease 26,114 99,348
Less: current portion 23,014 68,126
Non-current portion 3,100 31,222
The finance lease obligations that are payable within the next 5 years from each reported period are as 
follows
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
Amount due as at 31 March 2011
Minimum lease 
payments
Interest Principal
Within 1 year 78,918 10,792 68,126
1- 5 years 36,254 5,032 31,222
Total 115,172 15,824 99,348
17. PAYABLE TO RELATED PARTIES 
Related parties payable comprise of the following:
Maturity 31 March 2012 31 March 2011
Current
Liability payable to Focus On demand 49,389,473 19,930,655
Borrowings from Gynia Holdings 
Ltd.
On demand - 15,085,376
Payable to directors 13,331 785,000
49,402,804 35,801,031 44
Maturity 31 March 2012 31 March 2011
Other than current
Borrowings from Gynia Holdings 
After payment 
of bank loan per 
Note 14
42,540,536 -
Liability payable to Focus
After payment 
of bank loan per 
Note 14
10,000,000 45,369,000
52,540,536 45,369,000
Total 101,723,59081,170,031
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”). 
As per the Amendment to Assignment Agreement signed with Focus on 26 March 2010, effective 1 April 
2009, (hereinafter referred to as the Amendment No. 4), Focus has agreed to convert US$40 million 
(along with interest thereon) being part of the outstanding balance due as subordinated unsecured long 
term loan repayable along with interest calculated at 6.5 per cent per annum after payment and full 
settlement of US$110 million loan taken from a consortium of banks as described in note 14 above, i.e. 
after August 2018. 
On 31 March 2012, in a further amendment to the agreement the Group and Focus, the Group decided 
to convert the entire outstanding balance of Focus, as reduced by US$ 10 million (along with interest 
thereon), on demand and accordingly classified these amounts as current liabilities. The shortfall to the 
subordinated loan for the purposes of debts obtained from banks, as earlier met by the borrowings from 
Focus would now be met through subordination on the borrowings of Gynia Holdings Ltd. The Group has 
agreed to reimburse interest cost incurred by Focus on loans taken from third parties to finance the 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). 
Borrowings from Gynia Holdings Ltd. carried interest rate of 6.5 per cent per annum compounded 
annually and were repayable on demand as at 31 March 2011. As per the amendment in the agreement 
mentioned above, on 31 March 2012, Gynia Holdings Ltd. has agreed to convert US$ 42.54 million 
(i.e. including interest thereon) being part of the outstanding balance due as subordinated unsecured 
long term loan repayable along with interest calculated at 6.5 per cent per annum after payment and 
full settlement of US$110 million loan and additional undrawn loan of US$ 40 million which has been 
taken from a consortium of banks described in note 14 above, i.e. after May 2018 and after March 2021 
respectively. These amounts were earlier subordinated by loan repayable to Focus for a similar amount.  45
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. 
Interest capitalised on loans above have been disclosed in note 6 and 7.
Other payables to related parties comprise of outstanding balances to associate entities and directors, all 
the amounts are short term. The carrying value 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 in the consolidated statement of comprehensive income amounting to 
US$ 242,652 (previous year US$ 229,150).
19. FOREIGN CURRENCY EXCHANGE (LOSS)/ GAIN, NET
The Group has recognised the following in the profit or loss on account of foreign currency fluctuations:
  31 March 2012 31 March 2011
Loss on restatement of foreign currency monetary 
receivables and payables
(3,268) (2,520,139)
Gain on restatement of foreign currency borrowings - 1,227,204
Loss arising on settlement of foreign currency transactions 
and restatement of foreign currency balances arising out of 
Oil block operations 
104,682 (53,647)
Total 101,414 (1,346,582)
20. OPERATING LEASES
Lease payments capitalised under exploration and evaluation assets and development/ production assets 
during the year ended 31 March 2012 amount to US$ 35,972,144 (previous year: US$ 29,525,204). No 
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 Group 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 Group has no legal or constructive obligation to  46
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 2012 is US$ 12,188 (previous year: US$ 45,078).The forfeiture 
rate for the year has been considered as Nil (previous year: Nil).
The stock options ‘Advisor Stock Options’ granted to Arden Partners on 6 June 2008 vested immediately 
upon granting and the expiry of the exercise period being 5 June 2011. Any unexercised option was 
to expire after the end of exercise period. Upon the request of Advisor, the validity of exercise period 
was extended by two years and now the options will expire on 6 June 2013. Due to change in exercise 
period, the fair value of the option was re-determined using Black Scholes option pricing model and the 
difference in the fair value has been recorded as an expense in the books of account of Indus Gas Limited 
i.e. US$ 6,177.
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
Employees and 
Others 29 May 2008
Advisor
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 3
A
Dividend yield - -
Risk-free interest rate 4.99 per cent 5.06 per cent
A
 Consequent to a modification made during the current year, the option life for advisors has been 
changed to 5 years. As the options have fully vested, the charge due to the change in the fair value of the 
options has been recorded immediately in the profit or loss. 47
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:
Share options granted to Employees and others providing similar services (i.e. Directors 
and Consultants)
There was no movement in the outstanding options under this category during the year ended 31 March 
2012 as the Share options granted to directors and consultants 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 directors and consultants for the year ended 31 March 2012 
were 240,000 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).
The share options outstanding at the end of the year had a weighted average remaining contractual life 
of 2.16 years (previous year: 3.16 years).
Share options granted to Advisors
There was no movement in the outstanding options under this category during the year ended 31 March 
2012 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 2012 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).
The share options outstanding at the end of the year had a weighted average remaining contractual life 
of 1.18 years (previous year: 1.16 years).
The value of the share options granted to the advisor has been measured as and when services are 
received from them. As the management believes that the fair value of the services received from the 
advisor cannot be ascertained reliably, the value of the services received from the advisor has been 
determined indirectly with reference to the fair value of the options granted to them.
22. EARNINGS/(LOSS) PER SHARE 
The calculation of the basic earnings/ (loss) per share is based on the earnings/ (losses) attributable to 
ordinary shareholders divided by the weighted average number of shares in issue during the year. 48
Calculation of basic and diluted earnings/ (loss) per share for the year ending 31 March 2012 and 31 
March 2011 are as follows:
  31 March 2012 31 March 2011
Profit/ (Loss) attributable to shareholders of Indus Gas 
Limited, for basic and dilutive
1,356,480 (2,416,509)
Weighted average number of shares (used for basic loss 
per share)
182,913,924 182,913,924
Diluted weighted average number of shares (used for
diluted loss per share)C
182,971,361 182,913,924
Basic earning/(loss) per share 0.01 (0.01)
Dilutive earning/(loss) per share 0.01 (0.01)
C
 The outstanding share options were considered anti-dilutive for the year ending 31 March 2011 as the 
Group has incurred loss during that year.
23. RELATED PARTY TRANSACTIONS
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. Enterprises 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 on 31 
March 2012 and 31 March 2011 is as under:
Transactions with parent company
Particulars 31 March 2012 31 March 2011
Transactions during the year with the holding company
Loan taken 26,040,883 15,085,376
Balances at the end of the year
Total payables 42,540,536 15,085,376 49
Transactions with KMP and entities over which KMP exercise control
Particulars 31 March 2012 31 March 2011
Transactions during the year
Remuneration to KMP
 Short term employee benefits 499,591 393,357
 Share based payments 6,010 18,783
Total 505,601 412,140
Entities over which KMP exercise control
Remittances 70,434,990 64,463,427
Net assets and costs allocated transferred during the year 59,813,014 62,403,871
Expenses to be reimbursed 1,126,261 90,334
Balances at the end of the year
Total payables 59,389,473 66,084,655
Directors’ remuneration
Directors’ remuneration is included under the head administrative expenses in the consolidated statement 
of comprehensive income. Remuneration by director, is also separately disclosed in the directors’ report 
on page 10.
24. SEGMENT REPORTING
The Chief Operating Decision Maker 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$ 253,405,037 (previous year: US$ 187,467,676).
The Group has a single product, i.e. the sale of natural gas, which is supplied to a single customer, GAIL 
in a single geographical segment, being India.
25. COMMITMENTS AND CONTINGENCIES
The group has no contingencies as at 31 March 2012 (previous year Nil).
A summary of the commitments existing as at 31 March 2012 and 31 March 2011 are as follows: 50
Nature of the commitments 31 March 2012 31 March 2011
Group’s share in commitment for purchase of equipment 
and storage tanks 
15,660,379 20,923,564
Total 15,660,379 20,923,564
26. ACCOUNTING 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 the management’s view each of the individual entity’s functional currency reflects the 
transactions, events and conditions under which the entity conducts its business. The management believes 
that US$ has been taken as 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 Note 1.1 and 6 above, 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.
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 judgement to evaluate indicators triggering 
impairment. The Group monitors internal and external indicators of impairment relating to its tangible 
and intangible assets. The management has assessed that no such indicators have occurred or exists as 
at 31 March 2012 to require impairment testing of property, plant and equipment and intangible assets.
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)  51
method which involves significant estimates in respect of the total future production and estimate of 
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.
27. BASIS OF GOING CONCERN ASSUMPTION
The Group has current liabilities amounting to US$ 67,527,832 majority of which is towards current 
portion of borrowings from banks and related parties, Gynia and Focus. As at 31 March 2012, the 
amounts due for repayment within the next 12 months to banks are US$ 15,415,367 which the Group 
expects to meet from its internal generation of cash from operations. Gynia has also assured the Group 
to provide support any cash requirement to meet its obligations towards banks not met through internal 
generation of cash. Further, in respect of the amounts due to Gynia and Focus which are repayable on 
demand, these companies have assured the Group that there loans will not be demanded till such time 
where internal funds are sufficient to meet such repayments after other obligations to banks are met. 
Based on this, the consolidated financial statements have been prepared on 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 for shareholders and benefits for 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 net debt divided by total capital. 
Debt is calculated as total liabilities (including ‘current and non-current liabilities’ as shown in the 
consolidated Statement of Financial Position). Total capital is calculated as ‘equity’ as shown in the 
consolidated Statement of Financial Position plus net debt. 52
31 March 2012 31 March 2011
Net debt 204,050,206 140,904,278
Total equity 58,590,459 57,221,792
Total capital employed 262,640,665 198,126,069
Gearing ratio 78 per cent 71 per cent
The gearing ratio has increased since the previous year due to increase in the draw-down of loans from 
banks to fund additional exploration, evaluation and development activities for 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 2012 31 March 2011
Non-current assets
Loans and receivables
- Security deposits 885 11,149
Current assets 
Loans and receivables
- Trade receivables 796,047 1,172,052
- Cash and cash equivalents 248,246 2,252,815
Total financial assets under loans and receivables 1,045,178 3,436,016
Non current liabilities
Financial liabilities measured at amortised cost:
- Long term debt from banks 81,457,230 45,089,825
- Payable to related parties 52,540,536 45,369,000
Current liabilities
Financial liabilities measured at amortised cost:
- Current portion of long term debt from banks 15,415,367 11,835,959
- Current portion of payable to related parties 49,402,804 35,801,031
- Accrued expenses and other liabilities 257,602 93,050
Total financial liabilities measured at amortised cost 199,073,539 138,188,865 53
The fair value of the financial assets and liabilities described above closely approximates their carrying 
value on the statement of financial position date. 
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$. No 
forward exchange contracts were entered into during the year.
Entities within the Group conduct the majority of their transactions in their functional currency, other than 
finance lease obligation balances which are maintained in Indian Rupees and amounts of cash held in 
GBP. All other monetary assets and liabilities are denominated in functional currencies of the respective 
entities. The currency exposure on account of liabilities which are denominated in a currency other than 
the functional currency of the entities of the Group as at 31 March 2012 and 31 March 2011 is as follows:
Functional currency Foreign currency 31 March 2012 31 March 2011
Total exposure 42,936 2,297,020
Short term exposure US$ Indian rupee 23,014 68,126
Short term exposure US$ Great Britain pound 16,822 2,197,672
Long term exposure US$ Indian rupee 3,100 31,222
The Group’s currency exposure risk towards Indian Rupee is negligible due to the insignificant currency 
balance exposed to such risk.
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 
continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial 
assets and liabilities. The Group also has ‘Financing Facilities’ as additional undrawn facilities that the  54
Group has at its disposal to further reduce liquidity risk, which have been summarised in note 14. As the 
due date of the undrawn facilities is not known at the respective reporting dates, these amounts have not 
been included in the liquidity analysis below.
The table below summarises the maturity profile of the Group’s financial liabilities based on contractual 
undiscounted payments.
On demand
1-3
months
3 months to 
1 year
1-5 years 5+ years Total
31 March 2012
Non-interest bearing 1,126,261 70,397 187,205 - - 1,383,863
Variable interest rate 
liabilities
49,196,64 5,215,062 12,332,166 90,215,274 3,827,650 163,786,536
Fixed interest rate 
liabilities
- - - - 52,540,536 52,540,536
50,322,645 5,285,459 15,519,371 90,215,274 56,368,186 217,710,935
On demand
1-3
months
3 months to 
1 year
1-5 years 5+ years Total
31 March 2011
Non-interest bearing 90,334 93,050 681,308 - - 878,051
Variable interest rate 
liabilities
19,930,654 45,959 14,600,034 49,291,254 - 83,867,901
Fixed interest rate 
liabilities
15,085,376 - - - 70,502,816 85,588,192
35,106,364 139,009 15,281,342 49,291,254 70,502,816 170,334,144
Interest rate risk
The Group’s policy is to minimise interest rate risk exposures on long-term financing. Borrowing from 
Focus is divided between short term and long term. While long term is fixed at 6.5 percent, the interest 
rate on short term portion is linked to actual interest incurred by Focus capped between 6.5 percent 
and 10 percent. Therefore, borrowing from Focus doesn’t expose the Group to any significant risk from 
changes in interest rate. 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 is also exposed to changes in 
market interest rates through bank borrowings at variable interest rates. Interest rate on bank borrowing 
is 5 percent plus LIBOR. 
The Group’s interest rate exposures are concentrated in US$. 55
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, the management estimates a range 
of 50 basis points to be 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 2012 484,904 (484,904)
31 March 2011 167,308 (167,308)
Since the loans are taken specifically for the purpose of exploration and evaluation, development and 
production activities and according to the Group’s policy the borrowing costs are capitalised to the cost 
of the asset and hence changes in the interest rates do not have any immediate adverse 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 of 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 these to be 
significant. None of the financial assets held by the Group are past due.
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