3.19. Provisions, contingent liabilities and contingent
assets
a) Provisions
Provisions are recognised when the Company
has a present obligation (legal or constructive) as
a result of a past event and it is probable that the
outflow of resources embodying economic benefits
will be required to settle the obligation and can be
reasonably estimated. The expense relating to the
provision is presented in the statement of profit and
loss net of any reimbursement
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax
rate that reflects, when appropriate the risks specific
to the liability. When discounting is used, the increase
in the provision due to passage of time is recognised
as a finance cost.
b) Contingent liabilities and contingent assets
Contingent liability is a possible obligation arising
from past events and the existence of which will be
confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly
within the control of the Company or a present
obligation that arises from past events but is not
recognized because it is not possible that an outflow
of resources embodying economic benefit will be
required to settle the obligations or reliable estimate
of the amount of the obligations cannot be made.
The Company discloses the existence of contingent
liabilities in Other Notes to financial statements.
Contingent assets are not recognised in financial
statements since this may result in the recognition
of income that may never be realised. However,
when the realisation of income is virtually certain,
then the related asset is not a contingent asset and
is recognised. A contingent asset is disclosed, in
financial statements, where an inflow of economic
benefits is probable.
3.20. Fair value measurement
The Company's accounting policies and disclosures
require the measurement of fair values, for both financial
and non-financial assets and liabilities
Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurements date.
The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the
liability takes place either;
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most
advantageous market for the asset or liability.
The principal or the most advantageous market must be
accessible by the Company. The fair value of an asset
or a liability is measured using the assumptions that
market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes
into account a market participant's ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant
that would use the assets in its highest and best use.
The company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the use
of unobservable inputs.
All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows,
based on the lowest level input that is significant to the
fair value measurement as whole :
Level 1. Quoted (unadjusted) market prices in active
market for identical assets or liabilities.
Level 2. Valuation techniques for which the lowest
level input that is significant to the fair
value measurement is directly or indirectly
observable.
Level 3. Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is unobservable.
External valuers are involved for valuation of significant
assets and liabilities. Involvement of external valuers is
decided by the management of the Company considering
the requirements of Ind AS and selection criteria include
market knowledge, reputation, independence and
whether professional standards are maintained.
For assets and liabilities that are recognised in the
balance sheet on a recurring basis, the Company
determines whether transfers have occurred between
levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the
fair value measurement as a whole) at the end of each
reporting period.
For the purpose of fair value disclosures, the company
has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset
or liability and the level of the fair value hierarchy as
explained above.
3.21. Financial Instruments
A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity of another entity.
3.21.1.Financial Assets
a. Initial recognition and measurement
All financial assets are initially recognized when
the Company becomes a party to the contractual
provisions of the instruments. A financial asset is
initially measured at fair value plus, in the case of
financial assets not recorded at fair value through
Profit or Loss, transaction costs that are attributable
to the acquisition of the financial asset. However,
trade receivables that do not contain a significant
financing component are measured at transaction
price.
b. Subsequent measurement
For purposes of subsequent measurement financial
assets are classified in three categories:
• Measured at amortised cost;
• Measured at Fair value through Other
Comprehensive Income (FVTOCI); and
• Measured at Fair value through Profit or Loss
(FVTPL).
Financial assets are not reclassified subsequent to
their initial recognition, except if and in the period the
Company changes its business model for managing
financial assets.
Measured at Amortized Cost :
A financial asset that meets the following two
conditions is measured at amortised cost (net of
any write down for impairment) unless the asset is
designated at fair value through profit or loss under
the fair value option:
• Business model test: The objective of the
company's business model is to hold the
financial asset to collect the contractual cash
flows (rather than to sell the instrument prior to
its contractual maturity to realise its fair value
changes).
• Cash flow characteristics test: the contractual
terms of the financial asset gives rise on specified
dates to cash flows that are solely payments of
principal and interest on the principal amount
outstanding.
After initial measurement, such financial assets are
subsequently measured at amortized cost using the
effective interest rate (EIR) method.
Measured at FVTOCI :
A financial asset that meets the following two
conditions is measured at fair value through
other comprehensive income unless the asset is
designated at fair value through profit or loss under
the fair value option.
• Business model test: The financial asset is held
within a business model whose objective is
achieved by both collecting contractual cash
flows and selling financial assets.
• Cash flow characteristics Test: The contractual
terms of the financial asset give rise on specified
dates to cash flows that are solely payments of
principal and interest on the principal amount
outstanding.
Financial assets meeting these criteria are measured
initially at fair value plus transaction costs. They are
subsequently measured at fair value with any gains
or losses arising on remeasurement recognized in
other comprehensive income, except for impairment
gains or losses and foreign exchange gains / losses or
interest income, which are recognized in statement
of profit and loss. On derecognition of the asset,
cumulative gain or loss previously recognized in OCI
is reclassified from the equity to profit and loss.
Measured at FVTPL :
Even if an instrument meets the two requirements to
be measured at amortised cost or fair value through
other comprehensive income, a financial asset is
measured at fair value through profit or loss if doing so
eliminates or significantly reduces a measurement or
recognition inconsistency (sometimes referred to as
an accounting mismatch') that would otherwise arise
from measuring assets or liabilities or recognising
the gains and losses on them on different basis.
All other financial assets are measured at fair value
through profit or loss.
De-recognition
The Company de-recognizes a financial asset on
trade date only 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 assets to another entity.
Impairment of financial assets
The Company assesses at each date of balance sheet
whether a financial asset or a group of financial assets
is impaired. Ind AS - 109 requires expected credit
losses to be measured through a loss allowance.
The company recognizes lifetime expected losses
for all contract assets and/or all trade receivables
that do not constitute a financing transaction. For
all other financial assets, expected credit losses
are measured at an amount equal to the 12 month
expected credit losses or at an amount equal to the
life time expected credit losses if the credit risk on
the financial asset has increased significantly since
initial recognition.
3.21.2. Financial Liabilities
a. Initial recognition and measurement
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 lease
liabilities, trade and other payables.
b. Subsequent measurement
Financial liabilities are measured subsequently at
amortized cost or Fair Value through Profit and Loss
(FVTPL). A financial liability is classified as FVTPL if it
is classified as held for-trading, or it is a derivative or it
is designated as such on initial recognition. Financial
liabilities at FVTPL are measured at fair value and net
gains and losses, including any interest expense, are
recognized in profit or loss. Other financial liabilities
are subsequently measured at amortized cost
using the effective interest rate method. Interest
expense and foreign exchange gains and losses
are recognized in profit or loss. Any gain or loss on
derecognition is also recognized in profit or loss.
c. Derecognition
A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires.
d. Offsetting of financial instruments
Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet, if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle
the liabilities 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.
3.22. Prior Period Items
All incomes and expenditures in aggregate pertaining to
prior year(s) above the threshold limit of ? 150 Lakhs are
corrected and accounted retrospectively.
3.23. Site Restoration
At expiry of the Lease period, the Company's Management
expects to handover the Oil Wells at different locations in
working condition to Government of India, assuming the
leases are not extended in favour of the Company. This
is similar to the manner in which the Indrora oilfield was
handed over to ONGC during the year FY 2019-20.
In view of the above, Management believes that the
Company would not be required to abandon these fields
with any corresponding abandonment costs. However,
as per the decisions taken at Management Committee
Meeting (MCM) with Directorate General of Hydrocarbons
(DGH), the Company creates earmarked funds, each year,
in the form of Bank Deposits, towards Site Restoration
Fund. The said deposits are shown as under the Other
Bank balances as "Under Lien to Government of India /
State Government - For Site Restoration Fund Account"
and accounted for to that extent in the books.
Management believes that this treatment provides a
more prudent and faithful view of Financial Statements
and reflects the economic substance of the transactions,
other events and conditions, and not merely the legal
form.
3.24. Cash Flow Statement
The cash flow statement is prepared by indirect method
set out in Ind AS 7 on cash flow statements and presents
the cash flows by operating, investing & financing
activities of the company. Cash & cash equivalent
presented in the cash flow statement consist of items as
mentioned in accounting policy 3.6 above on Cash and
Cash Equivalents. However, for the purpose of the Cash
Flow Statement the same is net of outstanding bank
overdrafts (if any).
3.25. Borrowing Cost
Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily
takes a substantial period of time to get ready for its
intended use or sale are capitalized as part of the cost of
the asset. All other borrowing costs are expensed in the
period in which they occur.
Borrowing costs consist of interest and other costs
that an entity incurs in connection with the borrowing
of funds. Borrowing costs also includes exchange
difference to the extent regarded as an adjustment to
the borrowing costs.
3.26. Standard Issued/amended but not yet effective
Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. For the year ended 31st
March, 2025, MCA has not notified any new standards or
amendments to the existing standards applicable to the
Company.
4. Significant accounting judgements and
key sources of estimates in applying the
accounting policies
Information about Significant judgements and Key sources
of estimation made in applying accounting policies that have
the most significant effects on the amounts recognized in
the financial statements are included in the following notes:
4.1. Defined benefit plan and obligations
The cost of the defined benefit plan and other post¬
employment benefits and the present value of such
obligation are determined during actuarial valuation. An
actuarial valuation involves making various assumptions
that may differ from actual developments in the future.
These include the determination of the discount rate,
future salary increases, mortality rates and attrition
rate. Due to the complexities involved in the valuation
and its long term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.
4.2. Fair value measurement of financial instrument
When the fair value of financial assets and financial
liabilities recorded in the balance sheet cannot be
measured based on quoted prices in a active market then
their fair value is measured using valuation techniques
including the Discounted Cash Flow (DCF) model.
The inputs to this model are taken from observable
markets where possible but where this is not feasible
a degree of judgement is required in establishing the
fair value. Judgements include consideration of input
such as liquidity risk credit risk and volatility. Changes in
assumption about this factor could affect the reported
fair value of financial instruments.
4.3. Impairment of financial assets
The impairment provision for financial asset is based
on assumption about risk of default and expected loss
rates. The company uses judgement in making the
assumptions and selecting the inputs to the impairment
calculation based on company's past history, the existing
market condition as well as forward looking estimates at
the end of each reporting period.
4.4. Evaluation of indicators for impairment of
Development of Hydrocarbon Properties
The evaluation of applicability of indicators of impairment
of Development of Hydrocarbon Properties requires
assessment of external factors such as significant
decline in value in use, 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
Development of Hydrocarbon Properties.
4.5. Evaluation of Reserves
Management estimates production profile (proved
and probable reserves) in relation to all the Oil Fields
determined by the Geological & Geophysical team as per
industry practice. The estimates so determined are used
for the computation of depletion and impairment testing
of Development of Hydrocarbon Properties.
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.
4.6. Leases
Ind AS 116 requires lessees to determine the lease term
as the non-cancellable period of a lease adjusted with
any option to extend or terminate the lease, if the use
of such option is reasonably certain. The Company
makes an assessment on the expected lease term on
a lease-by-lease basis and thereby assesses whether
it is reasonably certain that any options to extend or
terminate the contract will be exercised. In assessing
whether the Company is reasonably certain to exercise
an option to extend a lease, or not to exercise an option
to terminate a lease, it considers all relevant facts and
circumstances that create an economic incentive for the
Company to exercise the option to extend the lease, or not
to exercise the option to terminate the lease. The lease
term in future periods is reassessed to ensure that the
lease term reflects the current economic circumstances.
4.7. Allowances for Doubtful Debts
The Company makes allowances for doubtful debts
through appropriate estimations of irrecoverable
amount. The identification of doubtful debts requires
use of judgment and estimates. Where the expectation
is different from the original estimate, such difference
will impact the carrying value of the trade and other
receivables and doubtful debts expenses in the period in
which such estimate has been changed.
4.8. Provisions and Contingencies
The assessments undertaken in recognising provisions
and contingencies have been made in accordance with
Indian Accounting Standards (Ind AS) 37, 'Provisions,
Contingent Liabilities and Contingent Assets'. The
evaluation of the likelihood of the contingent events is
applied to the best judgement of management regarding
the probability of exposure to potential loss.
IV. Employee Share Based Payment Plan
The Company implemented Selan Exploration Technology Limited Employee Stock Option Scheme 2022 ("Scheme"). The
Scheme was approved by the shareholders through Postal Ballot on 2nd March, 2023. The Scheme enables grant of stock
options to the eligible employees of the Company not exceeding 2,31,472 Shares, which is 1.52% of the paid up equity
share capital of the Company as on 23rd December, 2022. Further, the stock options to any single eligible employee under
the Plan during any one year shall not be equal to or exceed 1% of the issued equity share capital of the Company, except
separate approval of the shareholders of the Company.
The options granted under the Scheme have a vesting period of 3 years. The options granted are based on the performance
of the employees during the year of the grant and their continuing to remain in service over the next 3 years. The process
for determining the eligibility of employees for the grant of stock options under the Scheme shall be determined by the
Nomination and Remuneration Committee (Administrator of the Scheme) based on employee's grade, performance rating
and such other criteria as may be considered appropriate. The employees shall be entitled to receive one equity share of
the Company on exercise of each stock option, subject to performance of the employees, and continuation of employment
over the vesting period. The exercise price for stock options granted are ? 10/- per option.
49.Disclosures as per Ind AS 116 'Leases' are as follows:
The Company's significant leasing arrangements are in respect of leases for land, building, office premises etc. These leasing
arrangements which are cancellable ranging between 11 months and 9 years generally, or longer, and are usually renewable by
mutual consent on mutually agreed terms.
The Company has used the following practical expedients for lease accounting:
1. Applying a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar
remaining lease term.
2. Applied the exemption not to recognized right of use assets and liabilities for leases with less than 12 months of lease term
and low value leases.
3. Used hindsight in determining the lease term whether the contract contained options to extend or terminate the lease.
e. The weighted average incremental borrowing rate applied to lease liabilities is 10.00%.
f. The Company does not face a significant liquidity risk with regards to its lease liabilities as the current assets are
sufficient to meet the obligations related to lease liabilities as and when they fall due.
50.Fair value measurement
The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in
an orderly transaction in the principal (or most advantageous) market at measurement date under the current market condition
regardless of whether that price is directly observable or estimated using other valuation techniques.
The following methods and assumptions were used to estimate the fair values:
i. Fair value of cash and short-term deposits, loans, trade and other short term receivables, trade payables and other financial
liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.
ii. Financial instruments with fixed and variable interest rate are evaluated by the Company based on parameters such as
interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken into
account for the expected losses of these receivables.
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique.
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either
directly or indirectly.
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable
market data.
c. During the year ended 31st March 2025 and 31st March 2024, there were no transfers between Level 1 and Level 2 fair value
measurements, and no transfer into and out of Level 3 fair value measurements.
51. Financial Risk Management
The Company's principal financial liabilities comprise lease liabilities, trade and other payables. The main purpose of these
financial liabilities is to finance the Company's operations. The Company's principal financial assets include Investments, loans,
trade and other receivables and cash and bank balances that are derived directly from its operations.
The Company's activities expose it to market risk, credit risk and liquidity risk. The Company's financial risk management is an
integral part of how to plan and execute its business strategies. The Company's financial risk management policy is set by the
Managing Board. The Board of Directors reviews and finalises policies for managing each of these risks, which are summarised
below :
a. Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three type of risk: interest rate risk, foreign currency risk and commodity price risk.
Financial instrument affected by market risk include investments and deposits, foreign currency receivables, payables,
loans and borrowings.
i. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. In order to optimize the Company's position with regard to interest income and
interest expenses to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk
management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio. The
Company is also exposed to interest rate risk on surplus funds parked in fixed deposits and investments viz. mutual
funds, NCDs and MLDs. To manage such risks, such investments are done mainly for short durations, in line with the
expected business requirements for such funds.
Interest rate sensitivity
The Company has not availed any borrowings (floating or fixed interest) and also not having substantial long term fixed
deposits and other investments, hence is not exposed to interest rate risk.
ii. 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 entity has limited foreign currency exposure which are mainly on account of purchases
and imports. 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.
The Company does not have any foreign currency exposure as well as no hedging instruments outstanding as at 31st
March 2025 and 31st March 2024.
iii. Commodity price risk
The Company is exposed to volatility of the oil and gas prices since the Company does not undertake any oil price
hedge. The impact of a falling oil price is however partly mitigated via the production sharing formula in the PSCs,
whereby the Company's share of gross production increases in a falling oil price environment due to the cost recovery
mechanism. Gas prices are fixed for a certain duration of time and the same are linked to policy guidelines issued by
the Government.
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 exposed to credit risk from its operating activities (primarily trade receivables
and advances to suppliers) and from its financing activities, including deposits and other financial instruments.
i. Trade Receivables
Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and
ii. Financial Instruments and Cash and bank balances
Credit risk from balances with banks and financial institutions is managed by the Company in accordance with the
Company's policy. Investments of surplus funds are made only with the institutions having good credit ratings. Credit
worthiness of all theses institutions are reviewed by the Management on a regular basis. All balances with banks and
financial institutions is subject to low credit risk due to the good credit ratings assigned to these entities.
c. Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting financial obligations due to shortage of funds.
The Company's exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities.
In the management of liquidity risk, the Company monitors and maintains a level of cash and bank balances deemed
adequate by the management to finance the Company's operations and mitigate the effects of fluctuations in cash flow.
The table below summarises the maturity profile of the Company's financial liabilities at the end of the reporting period
based on contractual undiscounted repayment obligations :
53.Impairment of Assets and Customer/Vendor Balances
i. As a policy, the Company annually assesses the impairment of property plant and equipment (PPE), Development
of Hydrocarbon Properties and other non-current assets by comparing the carrying value of PPE, Development of
Hydrocarbon Properties and other non-current assets with its fair value. In case the fair value is less than the carrying
value an impairment charge is created. Management has concluded that there is no impairment of PPE, Development of
Hydrocarbon Properties and other assets during the current year and in previous year.
ii. Certain Trade Receivables, Advances and Trade Payables are subject to confirmation. In the opinion of the management,
the value of Trade Receivables and Advances on realisation in the ordinary course of business, will not be less than the
value at which these are stated in the Balance Sheet.
Explanation for change in the ratio by more than 25% as compared to the preceding year
a. Current Ratio
Mainly on account of increase in current investments and decrease in current liabilities as compared to preceding year,
current ratio is higher.
d. Return on Equity Ratio
Due to increase in profit after taxes for current year as compared to preceding year, return on equity ratio is higher.
g. Trade Payables Turnover Ratio
Due to decrease in average trade payables as compared to preceding year, trade payable turnover ratio is higher.
i. Net Profit Ratio
Due to increase in profit after tax and increase in net sales as compared to preceding year, net profit ratio is higher.
j. Return on Capital Employed
Due to increase in EBIT for current year as compared to preceding year, return on capital employed ratio is higher.
56.2. Compliance with number of layers of companies
No layers of companies has been established beyond the limit prescribed as per section 2(87) of the Companies Act, 2013
read with the Companies (Restriction on number of Layers) Rules, 2017.
56.3. Loans or Advances to Promoters, Directors, KMPs and the related parties
The Company has not given any loan or advance in the nature of loan to promoters, directors, KMPs and the related parties
(as defined under the Act), either severally or jointly with any other person during the year ended 31st March, 2025 and the
year ended 31st March, 2024, except as disclosed in Note No. 8 of the financial statements.
56.4. Utilisation of Borrowed Funds and Share Premium
i. The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any
other sources or kind of funds) to any other persons or entities including foreign entities (intermediaries) with the
understanding that the Intermediaries shall 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 provided any guarantee, security or
the like or on behalf of the Ultimate Beneficiaries.
ii. The Company has not received any fund from any persons or entities, including foreign entities (funding party) with
the understanding that the Company shall 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 provided any guarantee,
security or the like or on behalf of the Ultimate Beneficiaries.
56.5. Compliance with approved Scheme(s) of Arrangements
The Board of Directors in their meeting held on 22nd November, 2023 had approved a Composite Scheme of Arrangement
between Antelopus Energy Private Limited, the Company and their respective shareholders and creditors, in compliance
with sections 230 to 232 read with section 66 and section 52 and other applicable provisions of the Companies Act,
2013 and rules made thereunder ("Scheme"). The Scheme, inter alia, provides for: (a) reduction of the capital of the
Antelopus Energy Private Limited ; and (b) amalgamation of the Antelopus Energy Private Limited with and into the
Company. The Company will issue (a) 4,287 equity shares of the Company of face value of ? 10/- each for every 10,000
equity shares of Antelopus Energy Private Limited; (b) 4,287 equity shares of the Company of face value of ? 10/- each
for every 10,000 Class A1 equity shares of Antelopus Energy Private Limited; and (c) 18 equity shares of the Company of
face value of ? 10/- each for every 10,000 Non-Convertible 0.001% Redeemable Preference Shares of Antelopus Energy
Private Limited to the Shareholders of Antelopus Energy Private Limited as on the record date defined in the Scheme.
The Company has received 'in-principle' approval from BSE Limited and National Stock Exchange of India Limited for the
Composite Scheme of Arrangement between Antelopus Energy Private Limited ("Antelopus" or "Transferor Company"),
the Company ("Selan" or "Transferee Company") and their respective shareholders and creditors on 27th June, 2024.
The Hon'ble National Company Law Tribunal, Chandigarh Bench ("NCLT") vide its order dated 12th August, 2024 had
directed to convene a meeting of the equity shareholders of the Company on Saturday, 5th October, 2024 through video¬
conferencing with the facility of remote e-voting to approve the Composite Scheme of Arrangement between Transferor
and Transferee Companies and their respective shareholders and creditors ("Scheme") in accordance with the provisions
of Section 230-232 read with Section 66 and Section 52 and other applicable provisions of the Companies Act, 2013.
Accordingly, a meeting of the equity shareholders of the Company was held on 5th October, 2024 through Video
Conference for the purpose of approving the Scheme. The proposed resolution approving the Scheme was passed by the
equity shareholders representing requisite majority. Subsequently, the second motion petition was filed with the Hon'ble
NCLT on 15th October, 2024. Joint hearing was conducted by the Hon'ble NCLT on 8th May, 2025. The Hon'ble NCLT heard
the submissions and reserved the Order.
56.6.Wilful Defaulter
The Company has not been declared as a wilful defaulter by any bank or financial Institution or other lender.
57. Presentation of Negative Amounts
Unless otherwise stated or the context requires it to be interpreted otherwise, figures in bracket in the financial statements represent
negative amounts.
58. Previous year figures have been rearranged / regrouped / reclassified wherever necessary.
Further, there are no material regroupings / reclassifications during the year.
For V. Sankar Aiyar & Co. For and on behalf of the Board of Directors
Chartered Accountants Siva Kumar Pothepalli Suniti Kumar Bhat
Firm Registration No.: 109208W Whole-Time Director Chairman and Managing Director
(DIN 08368463) (DIN 08237399)
Puneet Kumar Khandelwal Raajeev Tirupati Yogita
Partner Chief Financial Officer Company Secretary
(M. No. 429967) (M.No. A62611)
Place: Kolkata Place: Gurgaon Place: Gurgaon
Date: 9th May, 2025 Date: 9th May, 2025 Date: 9th May, 2025
|