Foreign exchange gains and losses
resulting from the settlement of such
transactions and from the translation
of monetary assets and liabilities
denominated in foreign currencies
at year end exchange rates are
generally recognised in statement
of profit and loss. Non-monetary
items that are measured in terms of
historical cost in a foreign currency,
using the exchange rate at the date
of the transaction. Non-monetary
items that are measured at fair value
in a foreign currency are translated
using the exchange rates at the date
when the fair value was determined.
Translation differences on assets
and liabilities carried at fair value are
reported as part of the fair value gain
or loss.

(c) Revenue recognition

i. Sale of services - Recognition
& measurement

Revenue is recognised upon
transfer of control of promised
services to customers in an
amount that reflects the
consideration which the
Company expects to receive in
exchange for those services.

Revenue from seismic data
acquisition, processing and
interpretation services are
recognised on output basis
measured by milestones
reached, units delivered,
efforts expended, number of
transactions processed, etc.

Revenue on time-and-material
contracts are recognised as the
related services are performed and
revenue from the end of the last
invoicing to the reporting date is
recognized as unbilled revenue

Revenue is measured based on
the transaction price, which is
the consideration, adjusted for
volume discounts, service level
credits, performance bonuses, price
concessions, penalties and incentives,
if any, as specified in the contract with
the customer. Revenue also excludes
taxes collected from customers.

The company disaggregates revenue
from contracts with customers by
geography of services provided.

ii. Dividend income

Dividend income on investments
is accounted for when the right to
receive the same is established.
Dividend income is included in other
income in the Statement of Profit and
Loss.

iii. Interest income

Interest income from debt
instruments is recognised using
the effective interest rate method.
The effective interest rate is the rate
that exactly discounts estimated
future cash receipts through the
expected life of the financial asset
to the gross carrying amount of a
financial asset. When calculating the
effective interest rate, the company
estimates the expected cash flows

by considering all the contractual
terms of the financial instrument but
does not consider the expected credit
losses.

d. Leases

i. As a lessee

The company accounts for each
lease component within the contract
as a lease separately from non-lease
components of the contract and
allocates the consideration in the
contract to each lease component on
the basis of the relative stand-alone
price of the lease component and the
aggregate stand-alone price of the
non-lease components.

The company recognises a right-of-
use asset representing its right to
use the underlying asset for the lease
term at the lease commencement
date. The cost of the right-of-use
asset measured at inception shall
comprise of the amount of the initial
measurement of the lease liability
adjusted for any lease payments made
at or before the commencement date
less any lease incentives received, plus
any initial direct costs incurred and
an estimate of costs to be incurred
by the company in dismantling and
removing the underlying asset or
restoring the underlying asset or site
on which it is located. The right-of-use
assets are subsequently measured
at cost less any accumulated
depreciation, accumulated
impairment losses, if any and adjusted
for any remeasurement of the lease

liability. The right-of-use assets is
depreciated using the straight-line
method from the commencement
date over the shorter of lease term
or useful life of right-of-use asset.
The estimated useful lives of right-
of-use assets are determined on
the same basis as those of property,
plant and equipment. Right-of-use
assets are tested for impairment
whenever there is any indication that
their carrying amounts may not be
recoverable. Impairment loss, if any, is
recognised in the statement of profit
and loss.

The company measures the lease
liability at the present value of the
lease payments that are not paid at
the commencement date of the lease.
The lease payments are discounted
using the interest rate implicit in
the lease, if that rate can be readily
determined. If that rate cannot be
readily determined, the company
uses an incremental borrowing rate.
For leases with reasonably similar
characteristics, the company, on
a lease-by-lease basis, may adopt
either the incremental borrowing
rate specific to the lease or the
incremental borrowing rate for the
portfolio. The lease payments shall
include fixed payments, variable lease
payments, residual value guarantees,
exercise price of a purchase option
where the company is reasonably
certain to exercise that option and
payments of penalties for terminating
the lease, if the lease term reflects

the company, exercising an option
to terminate the lease. The lease
liability is subsequently remeasured
by increasing the carrying amount to
reflect interest in the lease liability,
reducing the carrying amount to
reflect the lease payments made
and remeasuring the carrying
amount to reflect any reassessment
or lease modifications or to reflect
revised in-substance fixed lease
payments. The company recognises
the amount of the re-measurement
of lease liability due to modification
as an adjustment to the right-of-use
asset and statement of profit and
loss depending upon the nature of
modification. Where the carrying
amount of the right-of-use assets is
reduced to zero and there is a further
reduction in the measurement of
the lease liability, the company
recognises any remaining amount of
the re-measurement in statement of
profit and loss.

ii. As a lessor

At the inception of the lease the
company classifies each of its leases as
either an operating lease or a finance
lease. The Company recognises lease
payments received under operating
leases as income on a straight- line
basis over the lease term. In case of
a finance lease, finance income is
recognised over the lease term based
on a pattern reflecting a constant
periodic rate of return on the lessor's
net investment in the lease. When the
Company is an intermediate lessor it

accounts for its interests in the head
lease and the sub-lease separately.
It assesses the lease classification
of a sub-lease with reference to the
right-of-use asset arising from the
head lease, not with reference to
the underlying asset. If a head lease
is a short term lease to which the
Company applies the exemption
described above, then it classifies the
sub-lease as an operating lease.

(e) Property, plant and equipmenti) Recognition and measurement

The initial cost of property, plant and
equipment comprises its purchase
price, including import duties and
non-refundable purchase taxes, and
any directly attributable costs of
bringing an asset to working condition
and location for its intended use. It
also includes the initial estimate of
the costs if any of dismantling and
removing the item and restoring
the site on which it is located. Items
such as spares are capitalized when
they meet the definition of property,
plant and equipment. If significant
parts of an item of property, plant
and equipment have different useful
lives, then they are accounted for as
separate items (major components)
of property, plant and equipment.
Likewise, expenditure towards
major inspections and overhauls are
identified as a separate component
and depreciated over the expected
period till the next overhaul
expenditure.

ii) Subsequent expenditure

Subsequent costs are included in the
asset's carrying amount or recognised
as a separate asset, as appropriate
in property, plant and equipment
the cost of replacing part of such
an item when the cost is incurred if
the recognised criteria are met. The
carrying amount of any component
accounted for as separate asset is
derecognised when replaced. All
other repairs and maintenance are
charged to profit or loss during the
reporting period in which they are
incurred.

iii) Derecognition

An item of property, plant and
equipment is derecognised upon
disposal or when no future economic
benefit is expected to arise from the
continued use of the asset. 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 item)
is recognised in profit and loss in the
period the item is derecognised.

iv) Depreciation expense

Depreciation is charged on straight
line basis so as to write off the
depreciable amount of the asset over
the useful lives specified in Schedule
II to the Act. The useful life of the
assets are periodically reviewed and
re-determined based on a technical
evaluation and expected use. In case
of revision in useful life of an asset,

the unamortised depreciable amount
is charged over the remaining
useful life of such asset. The cases,
where the useful life of assets so
determined, considering the nature
of the asset, estimated usage of the
asset, the operating conditions of the
asset, past history of replacement,
anticipated technological changes,
manufacturers warranties and
maintenance support, etc., different
from the useful life as specified under
Part C of Schedule II of the Act as
given below:

The company reviews the residual
value, useful lives and depreciation
method annually and, if expectations
differ from previous estimates, the
change is accounted for as a change in
accounting estimate on a prospective
basis.

Advances paid towards the
acquisition of property, plant and
equipment outstanding at each
Balance Sheet date is classified as
capital advances under other non¬
current assets and the cost of assets
not ready to use before such date
are disclosed under 'Capital work-in¬
progress'.

(f) Intangible assets and amortization

Intangible assets acquired separately are
measured on initial recognition at cost.
Following initial recognition, intangible
assets are carried at cost less accumulated
amortization and accumulated impairment
losses, if any.

The estimated useful life and amortization
method are reviewed at the end of each
reporting period, with the effect of any
changes in estimate being accounted for
on a prospective basis.

g) Financial instruments

A financial instrument is any contract that
gives rise to a financial asset for one entity
and a financial liability or equity instrument
for another entity. Financial instruments
are recognized on the balance sheet when
the company becomes a party to the
contractual provisions of the instrument.

(i) Financial assets
Classification:

The company classifies its financial
assets in the following measurement
categories:

• those to be measured
subsequently at fair value (either
through other comprehensive
income, or through profit or
loss), and

• those measured at amortised
cost.

The classification depends on
the entity's business model for
managing the financial assets and the
contractual terms of the cash flows.

For assets measured at fair value, gains
and losses will either be recorded in
profit or loss or other comprehensive
income. For investments in debt
instruments, this will depend on
the business model in which the
investment is held. For investments in
equity instruments, this will depend
on whether the Company has made
an irrevocable election at the time
of initial recognition to account for
the equity investment at fair value
through other comprehensive
income.

The company reclassifies debt
investments when and only when its
business model for managing those
assets changes.

At initial recognition

The company measures a financial
asset at its fair value plus, in the case
of a financial asset not at fair value
through profit or loss, transaction
costs that are directly attributable to
the acquisition of the financial asset.
Transaction costs of financial assets
carried at fair value through profit or
loss are expensed in profit or loss.

Subsequent measurement
Debt instruments

Subsequent measurement of
debt instruments depends on the
company's business model for

managing the asset and the cash flow
characteristics of the asset. There are
three measurement categories into
which the group classifies its debt
instruments:

i. At amortised cost:

Financial assets having contractual
terms that give rise on specified
dates to cash flows that are solely
payments of principal and interest on
the principal outstanding and that are
held within a business model whose
objective is to hold such assets in
order to collect such contractual cash
flows are classified in this category.
Subsequently, these are measured
at amortized cost using the effective
interest method less any impairment
losses.

ii. At fair value through other
comprehensive income (FVOCI):

Financial assets are measured at fair
value through other comprehensive
income if these financial assets
are held within a business whose
objective is achieved by both
collecting contractual cash flows
on specified dates that are solely
payment of principle and interest on
the principle amount outstanding
and selling financial assets.

iii. At fair value through profit or loss
(FVTPL):

Financial assets are measured at fair
value through profit or loss unless it is
measured at amortised cost or at fair

value through other comprehensive
income on initial recognition. The
transaction costs directly attributable
to the acquisition of financial assets
at fair value through profit or loss are
immediately recognised in profit or
loss.

Other equity investments

All other equity investments are
measured at fair value, with value
changes recognised in Statement of
Profit and Loss, except for those equity
investments for which the company
has elected to present the value
changes in 'Other Comprehensive
Income'.

Investment in subsidiaries

Investment in subsidiaries measured
at cost less impairment as per
Ind AS 27.

Cash and cash equivalents

Cash and cash equivalent in the
balance sheet comprise cash at banks,
cash on hand, liquid investments and
short-term deposits with an original
maturity of three months or less,
which are subject to an insignificant
risk of changes in value.

For the purpose of the statement of
cash flows, cash and cash equivalents
consist of cash and short-term
deposits, as defined above, net
of outstanding bank overdrafts
considered an integral part of the
company's cash management.

Trade receivables

Trade receivables are recognised
initially at fair value and subsequently
measured at amortised cost using
the effective interest method, less
provision for impairment.

(ii) Financial liabilities

Classification, initial recognition
and measurement

Financial liabilities are classified,
at initial recognition, as financial
liabilities at fair value through profit
or loss, loans and borrowings, or
payables, as appropriate. All financial
liabilities are recognised initially at
fair value and, in the case of loans
and borrowings and payables, net of
directly attributable transaction costs.
The company's financial liabilities
include trade and other payables,
loans and borrowings including bank
overdrafts.

Subsequent measurement

Financial liabilities are carried at
amortized cost using the effective
interest method. For trade and other
payables maturing within one year
from the balance sheet date, the
carrying amounts approximate fair
value due to the short maturity of
these instruments.

Trade and other payables

Trade and other payables represent
liabilities for goods and services prior
to the end of financial year which are

unpaid. Trade and other payables are
presented as current liabilities unless
payment is not due within 12 months
after the reporting period. They
are recognised initially at their fair
value and subsequently measured
at amortised cost using the effective
interest method.

Loans and borrowings

Borrowings are initially recognised
at fair value, net of transaction
costs incurred. Borrowings are
subsequently measured at amortised
cost. Any difference between the
proceeds (net of transaction costs)
and the redemption amount is
recognised in profit or loss over the
period of the borrowings using the
effective interest method. Fees paid
on the establishment of loan facilities
are recognised as transaction costs
of the loan to the extent that it is
probable that some or all of the
facility will be drawn down. In this
case, the fee is deferred until the
draw down occurs. To the extent
there is no evidence that it is probable
that some or all of the facility will be
drawn down, the fee is capitalised as
a prepayment for liquidity services
and amortised over the period of the
facility to which it relates.

Borrowings are classified as current
liabilities unless, at the end of the
reporting period, the Company
has unconditional right to defer
settlement of the liability for at least
12 months after reporting period.

Derecognition of financial
instruments

The company derecognises a financial
asset when the contractual rights to
the cash flows from the asset expire,
or when it transfers the financial asset
and substantially all the risks and
rewards of ownership of the asset
to another party. On de-recognition
of a financial asset the difference
between the carrying amount and the
consideration received is recognised
in the statement of profit and loss.

The company derecognises
financial liabilities when, and only
when, the company's obligations
are discharged, cancelled or have
expired. On de-recognition of a
financial liability the difference
between the carrying amount of the
financial liability derecognised and
the consideration paid and payable is
recognised in the statement of profit
and loss.

Offsetting financial instruments

Financial assets and liabilities are
offset and the net amount is reported
in the balance sheet where there is a
legally enforceable right to offset
the recognised amounts and there
is an intention to settle on a net
basis or realised the asset and settle
the liability simultaneously. The
legally enforceable right must not

be contingent on future events and
must be enforceable in the normal
course of business and in the event
of default, insolvency or bankruptcy
of the counterparty.

(h) Impairment of assets
Financial assets

The company assesses at each date of
balance sheet impairment if any of a
financial asset or a group of financial
assets. The company uses, in accordance
with Ind AS 109, 'Expected Credit Loss'
(ECL) model, for evaluating impairment of
financial assets other than those measured
at fair value through profit and loss (FVTPL).
Expected credit losses are measured
through a loss allowance at an amount
equal to: The 12-months expected credit
losses (expected credit losses that result
from those default events on the financial
instrument that are possible within 12
months after the reporting date); or Full
lifetime expected credit losses (expected
credit losses that result from all possible
default events over the life of the financial
instrument).

For trade receivables Company applies
'simplified approach' which requires
expected lifetime losses to be recognised
from initial recognition of the receivables.
The company uses historical default rates
to determine impairment loss on the
portfolio of trade receivables. At every
reporting date these historical default rates
are reviewed and changes in the forward
looking estimates are analysed.

For other assets, the Company uses 12
month ECL to provide for impairment loss
where there is no significant increase in
credit risk. If there is significant increase in
credit risk full lifetime ECL is used.

Non-financial assets

Property, plant and equipment and other
intangible assets with definite life are
evaluated for recoverability when there is
any indication that their carrying amounts
may not be recoverable. If any such
indication exists, the recoverable amount
(i.e. 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. If the
recoverable amount of an asset or CGU
is estimated to be less than its carrying
amount, the carrying amount of the
asset or CGU is reduced to its recoverable
amount and impairment loss is recognised
in the profit or loss.

(i) Equity instruments

An equity instrument is a contract that
evidences residual interests in the assets
of the Company after deducting all of its
liabilities. Equity instruments issued by the
company are recorded at the proceeds
received, net of direct issue costs.

(j) Inventories

Stock of stores and spares is valued at
lower of cost and net realisable value.

Cost is determined considering the cost
of purchase and other costs incurred for
acquisition and on the basis of first in first
out method (FIFO). Net realizable value is
the estimated selling price in the ordinary
course of business, less estimated cost
necessary to make the sale.

(k) Tax expenses

Tax expense comprises of current tax and
deferred tax. Current tax is measured at
the amount expected to be paid to the
tax authorities, based on estimated tax
liability computed after taking credit for
allowances and exemption in accordance
with the prevailing tax laws for the year.

Current and deferred tax are recognised
in profit or loss, except when they relate
to items that are recognised in other
comprehensive income or directly in
equity, in which case, the income taxes
are recognised in other comprehensive
income or directly in equity, respectively.

Current tax assets and current tax liabilities
are presented in the statement of financial
position after off-setting the taxes paid or
deemed to be paid and current income tax
expenses for the year.

Deferred income taxes

Deferred tax is recognised using the balance
sheet approach. Deferred income tax assets
and liabilities are recognised for deductible
and taxable temporary differences arising
between the tax base of assets and

liabilities and their carrying amount, except
when the deferred income tax arises from
the initial recognition of goodwill or an
asset or liability in a transaction that is not
a business combination and affects neither
accounting nor taxable profit or loss at the
time of the transaction.

Deferred income tax asset is recognised
to the extent it is probable that taxable
profit will be available against which the
deductible temporary differences, the carry
forward unused tax credits and the carried
forward unused tax losses can be utilised.

The carrying amount of deferred income
tax assets is reviewed at each reporting
date and reduced to the extent that it is
no longer probable that sufficient taxable
profit will be available to allow total or
part of the deferred income tax asset to be
utilised.

Deferred tax assets and liabilities are
measured using substantively enacted
tax rates expected to apply to taxable
income in the years in which the temporary
differences are expected to be received or
settled.

Deferred tax assets and liabilities are offset
when it relates to income taxes levied
by the same taxation authority and the
relevant entity intends to settle its current
tax assets and liabilities on a net basis

The company recognises interest related to
income tax in interest expenses.