xvii) Provisions, contingent liabilities and contingent assets
A provision is recognized when the Company has a present obligation (legal or constructive) as a result of a past event
and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation,
in respect of which a reliable estimate can be made.
Provisions (excluding retirement benefits, compensated absences and decommissioning liability) are not discounted
to its present value and are determined based on best estimate required to settle the obligation at the balance sheet
date. These are reviewed at each balance sheet date adjusted to reflect the current best estimates.
In case of contingent liabilities, where there is no certainty of outflow or the amount of obligation cannot be measured
reliably, disclosure is made in the notes forming part of the financial statements. Contingent assets are not recognized
in the financial statements. However, where the realization of income is reasonably certain, a disclosure of the fact is
provided.
xviii) Leases
The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a
lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company
assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the
economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct
the use of the asset.
At the date of commencement of the lease, the Company recognizes a right-of-use asset ("ROU") and a corresponding
lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less
(short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the
lease payments as an operating expense on a straight-line basis over the term of the lease.
Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term.
ROU assets and lease liabilities include these options when it is reasonably certain that they will be exercised.
The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs
less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment
losses.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the
lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events
or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment
testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined
on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from
other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the
asset belongs.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease
payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental
borrowing rates in the country of domicile of these leases. Lease liabilities are re-measured with a corresponding
adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an
extension or a termination option.
The Company has elected not to recognize right-of-use assets and lease liabilities for short term leases of real estate
properties that have a lease term of 12 months. The company recognizes the lease payments associated with these
leases as an expense on a straight-line basis over the lease term are classified as finance leases whenever the terms
of the lease transfer substantially all the risks and rewards incidental to the ownership of an asset to the Company.
All other leases are classified as operating leases. Operating lease payments for land are recognized as prepayments
and amortized on a straight-line basis over the term of the lease. Contingent rentals, if any, arising under operating
leases are recognized as an expense in the period in which they are incurred.
xix) Earnings per share
Basic Earnings per share is computed by dividing the net profit after tax by the weighted average number of equity
shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the
weighted average number of equity shares considered for deriving basic earnings per share and the weighted average
number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.
xx) Statement of cash flow
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of
income or expenses associated with investing or financing cash flows. The cash flows are segregated into operating,
investing and financing activities.
xxi) Cash and cash equivalents
Cash comprises for the purposes of cash flow statement comprise cash on hand and demand deposits with banks.
Cash equivalents are short-term balances with a maturity of not exceeding three months, highly liquid investments
that are readily convertible in to known amounts of cash which are subject to insignificant risk of change in value.
xxii) Borrowing costs
Borrowing costs include interest and amortization of ancillary costs incurred. Costs in connection with the borrowing
of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of
Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilized for qualifying assets, pertaining
to the period from commencement of activities relating to construction/development of the qualifying asset upto the
date of capitalization of such asset is added to the cost of the assets. Capitalization of borrowing costs is suspended
and charged to the statement of Profit and Loss during extended periods when active development activity on the
qualifying assets is interrupted. Interest Income earned on temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing
costs are recognized in profit or loss in the period which they incurred.
Borrowing cost also includes exchange differences arising from foreign currency borrowings or swap transaction
entered to the extent that they are regarded as an adjustment to interest cost i.e. equivalent to the extent to which
the exchange loss does not exceed the difference between the cost of borrowing in functional currency t"Rs.") when
compared to the cost of borrowing in a foreign currency due to derivative transaction entered.
xxiii) Segment Reporting
Operating segments reflect the Company's management structure and the way the financial information is regularly
reviewed by the Company's Chief operating decision maker (CODM). The CODM considers the business from both
business and product perspective based on the dominant source, nature of risks and returns and the internal
organisation and management structure. The operating segments are the segments for which separate financial
information is available and for which operating profit / (loss) amounts are evaluated regularly by the CODM in deciding
how to allocate resources and in assessing performance. The reporting of segment information is the same as
provided to the management for the purpose of the performance assessment and resource allocation to the segments.
xxiv) Business combination
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair value
that meet the condition for recognition, except that:
Deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are recognized
and measured in accordance with Ind AS 12 Income Taxes' and Ind AS 19 'Employee Benefits', respectively.
Business Combination under Common control
A business combination involving entities or businesses under common control is a business combination in which all
the combining entities or businesses are ultimately controlled by the same party or parties both before and after the
business combination and the control is not transitory. Business combinations involving entities or businesses under
common control are accounted for using the pooling of interest method as follows:
• The assets and liabilities of the combining entities are reflected at the carrying amounts.
• No adjustments are made to reflect fair values, or recognize new assets or liabilities. Adjustments are made to
harmonize significant accounting policies.
• The financial information in the financial statements in respect of prior periods is restated as if the business
combination has occurred from the beginning of the preceding period in the financial statements, irrespective of
the actual date of the combination.
The balance of the retained earnings appearing in the financial statements of the transferor is aggregated with the
corresponding balance appearing in the financial statements of the transferee. The identity of the reserves are
preserved and the reserves of the transferor become the reserves of the transferee.
xxv) Standards notified but not yet effective
There are no standards that are notified and not yet effective as on the date.
3. Critical accounting judgments, assumptions and key sources of estimation uncertainty
Inherent in the application of many of the accounting policies used in preparing the Financial Statements is the need for
Management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities,
the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual outcomes
could differ from the estimates and assumptions used.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized
in the period in which the estimates are revised and future periods are affected.
Key source of judgments, assumptions and estimation uncertainty in the preparation of the Financial Statements which
may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are in
respect of oil and gas reserves, impairment, useful lives of property, plant and equipment, depletion of oil and gas assets,
decommissioning provision, employee benefit obligations, provisions, provision for income tax, measurement of deferred tax
assets and contingent assets & liabilities.
3.1 Critical judgments in applying accounting policies
The following are the critical judgements, apart from those involving estimations (Refer note 4.2), that the Management
have made in the process of applying the Company's accounting policies and that have the significant effect on the
amounts recognized in the Financial Statements.
(a) Determination of functional currency
Currency of the primary economic environment in which the Company operates ("the functional currency") is
Indian Rupee ($) in which the company primarily generates and expends cash. Accordingly, the Management has
assessed its functional currency to be Indian Rupee ($).In case of foreign subsidiaries in United States Dollar, it
is converted using the year end exchange rates.
(b) Evaluation of indicators for impairment of oil and gas assets
The evaluation of applicability of indicators of impairment of assets requires assessment of external factors
such as significant decline in asset's value, significant changes in the technological, market, economic or legal
environment, market interest rates etc. and internal factors such as obsolescence or physical damage of an
asset, poor economic performance of the asset etc. which could result in significant change in recoverable
amount of the oil and gas assets.
3.2 Assumptions and key sources of estimation uncertainty
(a) Estimation of provision for decommissioning
The Company estimates provision for decommissioning for the future decommissioning of oil & gas assets at the
end of their economic lives. Most of these decommissioning activities would be in the future, the exact
requirements that may have to be met when the occurrence of removal events are uncertain. Technologies and
costs for decommissioning are varying constantly. The timing and amounts of future cash flows are subject to
significant uncertainty.
The timing and the future expenditures are reviewed at the end of each reporting period, together with rate of
inflation for current cost estimates and the interest rate used in discounting the cash flows. The economic life
of the oil & gas assets is estimated based on the economic production profile of the relevant oil & gas asset.
(b) Estimation of reserves
Management estimates production profile (proved and developed reserves) in relation to all the oil and gas
assets determined as per the industry practice. The estimates so determined are used for the computation of
depletion and loss of impairment if any.
The year-end reserves of the Company have been estimated by the Geological & Geophysical team which follows
the guidelines for application of the petroleum resource management system consistently. The Company has
adopted the reserves estimation by following the guidelines of Society of Petroleum Engineers (SPE) which
defines "Reserves are those quantities of petroleum anticipated to be commercially recoverable by application of
development projects to known accumulations from a given date forward under defined conditions.
Reserves must further satisfy four criteria: They must be discovered, recoverable, commercial and remaining
(as of a given date) based on development project(s) applied". Volumetric estimation is made which uses reservoir
rock and fluid properties to calculate hydrocarbons in-place and then estimate the recoverable reserves from it.
As the field gets matured with production history the material balance, simulation, decline curve analysis are
applied to get more accurate assessments of reserves.
The annual revision of estimates is based on the yearly exploratory and development activities and results
thereof. In addition, new in- place volume and ultimate recoverable reserves are estimated for any new discoveries
or new pool of discoveries in the existing fields and the appraisal activities may lead to revision in estimates due
to new sub-surface data. Similarly, reinterpretation is also carried out based on the production data by updating
the static and dynamic models leading to change in reserves. New interventional technologies, change in
classifications and contractual provisions may also necessitate revision in the estimation of reserves.
(c) Defined Benefit Obligation (DBO)
Management's estimate of the DBO is based on a number of critical underlying assumptions such as standard
rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases.
Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.
(d) Impairment of assets:
The assessment of whether a Cash Generating Unit tCGU) is impaired, and the extent of such impairment,
requires management estimates on uncertain factors such as future prices, the impact of inflation on operating
expenses, discount rates, and production profiles for crude oil and natural gas. For Oil & Gas assets, expected
future cash flows are estimated using management's best estimates of future crude oil and natural gas prices,
as well as production and reserve volumes. The present value of these cash flows is determined by applying pre¬
tax discount rates for Oil and Gas revenues, which are measured in US dollars tUS$).
Future cash inflows from the sale of Oil and Gas are projected using managements best estimates of crude oil
and natural gas prices and their correlation with benchmark crudes and other petroleum products.
In assessing the production profile, the company evaluates its reserves over the full period for which they are
economically producible, considering all contractually possible extensions, rather than restricting the assessment
to the term of the license.
The discount rates applied in the impairment assessment are reviewed and reassessed annually to reflect any
changes in market conditions.
(e) Litigation
From time to time, the company is involved in legal proceedings, with the ultimate outcome always subject to
the inherent uncertainties of litigation. A provision for litigation is recognized when it is considered probable
that a payment will be required, and the amount of potential loss can be reasonably estimated.
Significant judgment is exercised in evaluating various factors, including the probability of an unfavorable outcome
and the ability to make a reasonable estimate of the potential liability. Litigation provisions are reviewed at the
end of each accounting period, with adjustments made based on changes in facts and circumstances.
41. Significant Accounting Estimates, Assumptions and Judgements
(a) Site Restoration Costs
The Company estimates and provides for site restoration of wells, decommissioning of facilities and restoration of
sites expected to be incurred at a future date. The same is capitalized as part of producing property in accordance
with Ind AS 16. The estimation of liability is as per the industry practice and adjusted for inflation. The estimated cost
is discounted to the reporting date by an appropriate discount factor. Accordingly, the difference in cost and depletion
is adjusted.
(b) Employee Benefit Estimates
i. Defined contribution plan
The Company makes provident fund contribution under defined contribution plan for qualifying employees. Under
the scheme, the company is required to contribute a specified percentage of the payroll cost to fund the
benefits. The company recognized $ 40.18 lakhs (March 31,2024: $ 27.14 lakhs) for provident fund contribution
in the statement of profit and loss. The contributions are payable to this plan by the company at rates specified
in the rules of the scheme.
ii. Defined benefit plan
a) Gratuity
The following table sets out funded status of the gratuity and the amount recognized in the financial
statements.
The Company's pending litigations include claims against the Company and proceedings pending with Tax, Statutory, and
Government Authorities. After reviewing all pending litigations and proceedings, the Company has made adequate provisions
where required and has disclosed contingent liabilities where applicable in its financial statements. The above table excludes
guarantees amounting to $ 3,665.70 Lakhs (March 31, 2024: $ 3,328.88 Lakhs).
The Company does not expect the outcome of these proceedings to have a material impact on its financial position. Future
cash outflows related to these matters can only be determined upon receipt of judgments or decisions from the relevant
forums and authorities.
a) In CY-OS-90/1 tPY-3) block, an arbitration award dated February 28,2020 was issued against the Company and two
other co-respondents, by a majority of two to one dissent by an Arbitration Tribunal which was received and acknowledged
by the Company in June 2020. The share of the Company's exposure to the claim is $ 1,624 lakhs in addition to other
ancillary awards that are subject to reconciliation of cash call payments and net off other credits to be given to the
Company towards refund of excess service tax granted by the Tribunal, which are yet to be quantified.
HOEC initially appealed at the Malaysian High Court and subsequently at the Malaysian Court of Appeal both of which
were dismissed. The Company further appealed before the Federal Court of Malaysia which also rejected HOEC's plea.
Enforcement proceedings in respect of the said award is currently pending before Gujarat High Court.
b) During the year ended March 2020, there was a demand for service tax for $ 77.09 lakhs with an equivalent amount
of penalty due to disallowance of Cenvat credit for the period from October 2007 to March 2011. An appeal was filed
after paying an amount of $ 7.71 lakhs to the tax authorities. This dispute is before the CESTAT for adjudication and
no provision is made in the financial statements. The above amount also includes a demand of $ 14.74 lakhs pertaining
to one of the unincorporated joint ventures.
c) Service tax demand was made on cash call contributions, cost and profit petroleum share of the contractors and
Government of India, for the period commencing from April 2010 to March 2015 for various unincorporated joint
ventures under production sharing contracts for $ 8,676.85 lakhs with equivalent amount as penalty and interest of
which the participating interest of the Company is $ 6,638.84 lakhs. The Honorable High Court of Madras has
remanded back to the Commissionerate for fresh adjudication based on the merits of the case on April 8, 2022, in
response to the writ appeal filed by the Company. Further, the statement of demand received $ 6,901.11 lakhs for
the period April 2015 to June 2017 of which the participating interest of the Company is $ 2,705.35 lakhs is being
dealt with the same for disposal awaiting the outcome in respect of the earlier year. This being an industry issue, the
above claim of the tax authority is disputed by the Company and is being redressed at various appellate forum and
hence no provision has been considered in the financial statements. This industry issue is taken up by the Ministry of
Petroleum and Natural Gas with Finance Ministry of Government of India for appropriate clarification and redressal.
The department issued the letter dated July 4, 2022, kept it in abeyance.
d) Further, for the period April 2016 to June 2017 a show cause notice has been received towards service tax on royalty
amounting to $ 28.54 lakhs of which the participating interest of the Company is $ 24.86 lakhs. The company filed the
submission and seeking redressal before Ministry of Petroleum and Natural Gas, Government of India. The department
issued the order against that company filed an Appeal dated Nov 29,2023.
e) During the previous year a show cause notice has been received for the period July 2017 to March 2021 towards GST
on royalty amounting to $ 218.99 lakhs of which the participating interest of the Company is $ 208.76 lakhs. The
company is in the process of filing submission and seeking redressal before Ministry of Petroleum and Natural Gas,
Government of India.
f) During the FY 2022-23, the company had received an order from GST Commissionerate as Company rendering manpower
and business support service to UJV for the period July 2017 to March 2021 amounting to $ 888.03 lakhs of which the
participating interest of the Company is $ 315.73 lakhs. The company filed a writ petition on April 26, 2023.
48. HOEC has taken over 40% of the Participating Interest t'PI") of AEPL considering the outstanding dues from AEPL as on
March 31,2024 and thereby all the control, as well the obligations of B-80 field is fully with HOEC effective April 1, 2024.
In terms of the Joint Operating Agreement (JOA) considering the outstanding dues as on March 31, 2024, the entire
participating interest of AEPL stands forfeited as on March 31,2024. Considering the above, on March 31,2025 all
revenue and cost of B-80 amounting to total income of $ 5,499.89 lacs and total expenses of $ 5,271.44 lacs are fully
accounted in the books of HOEC effective April 1,2024.
HOEC also entered into an agreement with AEPL to complete the formalities of transfer of participating interest in favor of
HOEC by which all outstanding dues of AEPL will stand settled along with interest with additional considerations to be paid
by HOEC over a period of two years. Both the parties have submitted the application to Government of India to get the
approval vide the application dated March 31,2025.
Pending the above, the capitalization of the 40% participating interest and impacts thereon including the fair value adjustment
will be carried out in the books of HOEC after GOI's approval or deemed approval in terms of the Revenue Sharing Contract.
Other income includes interest on outstanding dues amounting to $ 4,595.81 lacs as per the agreement entered with
AEPL.
52. Financial Risk Management Objectives & Policies
The Company's principal financial liabilities comprise of short tenured borrowings, trade and other payables. Most of these
liabilities relate to the Company's working capital cycle. The Company has trade and other receivables, loans and advances
that arise directly from its operations.
The Company is accordingly exposed to market risk, credit risk and liquidity risk.
The Company's Senior Management oversees Management of these risks. The senior professionals working to manage the
financial risks for the Company are accountable to the Audit Committee and the Board of Directors. This process provides
assurance that the Company's financial risk-taking activities are governed by appropriate policies and procedures and that
financial risks are identified, measured and managed in accordance with Company's policies and overall risk appetite.
The Audit Committee reviews and agrees on policies for managing each of these risks which are summarised below:
(a) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises of foreign currency rate risk, commodity risk and interest rate risk.
Financial instruments affected by market risk include borrowings.
(i) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates
relates primarily to the Company's operating activities and operational contracts with the rates payable in
foreign currencies. The Company manages its foreign currency risk by having natural hedge as the revenue on
sale of oil and gas is determined and paid in equivalent US dollars.
(b) Credit risk
Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is not exposed to credit risk as its sale of oil and gas is to
Government Nominees.
(i) Cash and Bank balances
The Company holds cash and cash equivalents with credit worthy banks as at the reporting date. The credit worthiness
of such banks is evaluated by the Management on an ongoing basis and is considered to be good.
(ii) Financial instruments and cash deposits
Credit risk from balances with banks is managed by the Company's treasury team in accordance with the policy
approved by the Board. Investments of surplus funds are made temporarily with approved counterparties, mainly
mutual funds, who meet the minimum threshold requirements under the counterparty risk assessment process.
(c) Liquidity risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral
obligations without incurring unacceptable losses. The Company's objective is to, at all times maintain optimum levels
of liquidity to meet it cash and collateral requirements. The Company closely monitors its liquidity position and deploys
a robust cash Management system. It maintains adequate sources of financing including loans from domestic banks
at an optimised cost.
Explanations to items included in computing the above ratios:
1. Current Ratio: Current Asset over Current Liabilities
2. Debt-Equity Ratio: Debt (Borrowings) over total shareholders equity (including Reserves & Surplus)
3. Debt Service Coverage Ratio: EBIT Interest Depreciation over (principal repayment interest payments)
4. Return on Equity Ratio: Profit After Tax over average Equity (including Reserves & Surplus)
5. Inventory turnover ratio: Revenue over average Inventory
6. Trade Receivables turnover ratio: Revenue from operations over average Trade Receivable
7. Trade payables turnover ratio: Purchases/Expenses over average Trade Payable
8. Net capital turnover ratio: Revenue from operations over average working capital
9. Net profit ratio: Profit After Tax over Revenue from operations
10. Return on Capital employed: Profit Before Interest & Tax over Capital employed (Capital employed includes total
shareholders equity, borrowings)
11. Return on investment: Interest income on fixed deposit Mutual fund investment gain over average investments
(investments includes investments in mutual funds, margin money and other bank deposits)
56. The Company has not been declared a willful defaulter by any bank or financial institution or other lender.
57. No proceedings have been initiated during the year or are pending against the company as at March 31, 2025 for holding
any benami property under the Benami Property Transactions (Prohibition) Act, 1988.
58. Transactions and balances with companies which have been removed from register of Companies [struck off companies] as
at the above reporting periods is Nil.
59. The Company has not traded / invested in Crypto currency or virtual currency.
60. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the company (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
61. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
62. The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961).
63. The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related
parties (as defined under Companies Act, 2013), either severally or jointly with any other person.
64. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the
Companies (Restriction on number of Layers) Rules, 2017.
65. No schemes of arrangements have been applied or approved by the Competent Authority in terms of section 230 to 237 of
the Companies Act, 2013.
66. The title deeds of all immovable properties, (other than immovable properties where the Company is the lessee and the lease
agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and
equipment and capital work-in-progress are held in the name of the Company as at the balance sheet date.
67. The Companies (Accounts) Rules, 2014 read with the Companies (Accounts) Fourth Amendment Rules 2022 dated August
05, 2022, mandates that the back-up of the books of accounts and the other papers of the company maintained in
electronic mode, shall be kept in server physically located in India, requiring backup on a daily basis. The Company is
maintaining back-up of the accounting software on daily basis in a server physically located in India.
68. As per the requirements of rule 3(1) of the Companies (Accounts) Rules, 2014, the Company uses only such accounting
software for maintaining its books of account that have a feature of recording audit trail of each and every transaction
creating an edit log of each change made in the books of account. This feature of recording audit trail has operated
throughout the year and not tampered with during the year. However, in respect of an accounting software, audit trail was
not enabled at the database level to log any data changes. In respect of a software operated by a third party software
service provider, for maintaining payroll records, based on the independent auditors system and organization controls
report covering the requirement of audit trail, the Company has used a software which has a feature of recording audit trail
(edit log) facility and the same has operated during the period April 1,2024 till December 31,2024 and no instance of audit
trail feature being tampered with has been reported in such independent auditors report for the aforesaid period.
The Company has established and maintained an adequate internal control framework over its financial reporting and based
on its assessment, has concluded that the internal controls for the year ended March 31, 2025 were effective.
69. Approval of financial statements
The financial statements were approved for issue by the Board of Directors on May 28,2025.
For and on behalf of the Board of Directors
Ashok Kumar Goel R. Jeevanandam N. Sivalai Senthilnathan Josephin Daisy
Director Managing Director Chief Financial Officer Company Secretary
DIN: 00025350 DIN: 07046442
Place : Chennai Place : Chennai Place : Chennai Place : Chennai
Date : 28-05-2025 Date : 28-05-2025 Date : 28-05-2025 Date : 28-05-2025
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