1. Corporate Information:
Selan Exploration Technology Limited (referred to as the Company or Selan) was incorporated on 5 July, 1985 under the Companies Act, 1956. The Company is engaged in the business of oil & gas exploration and production. The Company has signed Production Sharing Contracts (PSCs) with Government of India (GoI) for Bakrol, Indrora, Lohar, Ognaj and Karjisan fields.
2. Capital Commitments:
Outstanding commitments for capital expenditure (net of advances) : t 33,750 (previous year : Nil).
3. The Company has taken premises and land for field operations on operating lease. The lease payments charged during the year in the statement of profit and loss amounts to X 16,109,478 (previous year ? 10,917,725). Amount due within one year ? 16,270,430.
4. In the Arbitration proceedings between the Company and the Ministry of Petroleum and Natural Gas, Government of India (GOI) with respect to the Lohar Oilfield, inter alia, the issue is whether Profit Petroleum is payable to the GOI in a financial year, when the Investment Multiple in the preceding year is less than 3.5. The Company had won an Award in its favour in May 2010, from the Arbitral Tribunal, against which the GOI had appealed to the Hon''''ble Delhi High Court. The Single Bench of the High Court ruled in favour of the GOI. The Company has appealed against this to the Division Bench of the High Court, which case is in progress.
5. The Company has not received any information from suppliers or service providers, whether they are covered under the "Micro, Small and Medium Enterprises (Development) Act, 2006. Disclosure relating to amount unpaid at the year-end together with interest payable, if any, as required under the said Act are not ascertainable.
6. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of the current assets, loans and advances in the ordinary course of business will not be less than the amount stated in the Balance Sheet.
7. The disclosures of Employee Benefits as defined in the revised Accounting Standard - 15 are given below:
i. Change in present value of obligation:
Note: The above information is given from the report furnished by the Actuary as at the end of the year.
Note: Provision for accruing liability for Gratuity and Leave Encashment which are done on overall Company basis and not separately ascertainable and, therefore, not included above.
8. Segment Reporting as per Accounting Standard - 17:
The Company is primarily engaged in the business of exploration and production of oil and natural gas. Therefore, it is a single segment business.
9. Related Party Disclosures as per Accounting Standard - 18:
(a) Related Parties and their relationships
(i) Key Management Personnel
- Mr. Rohit Kapur, Chairman and Whole-time Director
- Dr. D.J. Corbishley, Director
(b) Transactions with the above party in the ordinary course of business: -
10. Minimum Alternate Tax (MAT) :
The Company is entitled to avail Credit under Section 115 JA (1A). Accordingly, MAT credit entitlement has been considered as an asset to the extent there is convincing evidence that the Company will pay normal income tax during specified period under law.
11. Remittance in Foreign Currency to Non-residents on account of dividends: NIL
(Dividend are paid in local currency to the mandated banks)
12. Previous year figures have been regrouped wherever necessary to correspond with the current year figures