r) Provisions (other than employee benefits)
Provisions are recognized when the Company has a
present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources
will be required to settle the obligation and the amount
can be reliably estimated. Provisions are not recognized
for future operating losses.
Where there are a number of similar obligations, the
likelihood that an outflow will be required in settlement
is determined by considering the class of obligations as
a whole. A provision is recognized even if the likelihood
of an outflow with respect to any one item included in
the same class of obligations may be small.
Provisions are measured at the present value of
management's best estimate of the expenditure
required to settle the present obligation at the end of the
reporting period. The discount rate used to determine
the present value is a pre-tax rate that reflects current
market assessments of the time value of money and
the risks specific to the liability. The increase in the
provision due to the passage of time is recognized as
interest expense.
s) Contingencies
Disclosure of contingent liabilities is made when there
is a possible obligation or a present obligation that may,
but probably will not, require an outflow of resources.
Where there is possible obligation or a present
obligation in respect of which the likelihood of outflow
of resources is remote, no provision or disclosure is
made.
Contingent assets are not recognized in the standalone
financial statements. However, contingent assets are
assessed continuously and if it is virtually certain that
an inflow of economic benefits will arise, the assets and
the related income are recognized in the period in which
the change occurs. Contingent assets are recognized
where an inflow of economic benefits is probable.
t) Employee Benefits
Liability on account of short-term employee benefits
is recognized on an undiscounted and accrual basis
during the period when the employee renders service/
vesting period of the benefit.
Defined Contribution Plan:
The Company pays contribution to the provident fund
and employee state insurance corporation which is
administered by respective Government authorities.
The Company has no further payment obligations once
the contributions have been paid. The Contributions
are recognized as employee benefit expense in the
statement of profit and loss to the year it pertains.
Defined benefit plan:
Gratuity: The Company’s liability towards gratuity is
determined using the projected unit credit method
which considers each period of service as giving rise
to additional unit of benefit entitlement and measures
each unit separately to build up the final obligation.
The cost for past services is recognized on a straight
line basis over the average period until the amended
benefits become vested.
Re-measurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognized in the period in which they
occur, directly in other comprehensive income. They
are included in retained earnings in the statement of
changes in equity and in the balance sheet.
Obligation is measured at the present value of
estimated future cash flows using a discount rate
that is determined by reference to market yields at
the Balance Sheet date on Government bonds where
the currency and the terms of Government bonds are
consistent with the currency and estimated term of
defined benefit obligation.
u) Earnings Per Share
Basic earnings per share is calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the period.
For the purpose of calculating diluted earnings per share,
the net profit attributable to equity shareholders and
the weighted average number of shares outstanding
are adjusted for the effect of all dilutive potential equity
shares from the exercise of options on unissued share
capital. The number of equity shares is the aggregate of
the weighted average number of equity shares and the
weighted average number of equity shares which are
to be issued in the conversion of all dilutive potential
equity shares into equity shares.
v) Segment reporting
Segments are identified based on the manner in which
the Chief Operating Decision Maker ('CODM’) decides
about resource allocation and reviews performance of
the Company. The Managing Director of the Company
is identified as CODM, who assesses the financial
performance and position of the Company and makes
strategic decisions.
The CODM reviews revenue and gross profit as the
performance indicators and does not review the total
assets and liabilities for each reportable segment.
The measurement of each segment’s revenues and
expenses is consistent with the accounting policies that
are used in preparation of the Company’s standalone
financial statements.
w) Unforeseeable losses
The Company has a process whereby periodically all
long-term contracts (including derivative contracts)
are assessed for material foreseeable losses. As at
the year end, the Company did not have any long-term
contracts (including derivative contracts) for which
there were any material foreseeable losses.
HU KEY ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of the Company’s standalone financial
statements requires the management to make
judgements, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets
and liabilities, and the accompanying disclosures, and
the disclosure of contingent liabilities. Uncertainty
about these assumptions and estimates could result
in outcomes that require a material adjustment to
the carrying amount of assets or liabilities reflected
in future periods. Management believes that the
estimates used in the preparation of the financial
statements are prudent and reasonable. Estimates and
underlying assumptions are reviewed by management
at each reporting date. Actual results could differ from
these estimates. Any revision of these estimates is
recognized prospectively in the current and future
periods.
Information about significant areas of estimation and
assumptions/ uncertainty and judgements in applying
accounting policies are as follows:
(i) Deferred income taxes
The assessment of the probability of future
taxable profit in which deferred tax assets can
be utilized is based on the Company’s latest
forecast, which is adjusted for significant non¬
taxable profit and expenses and specific limits
to the use of any unused tax loss or credit. The
tax rules in the different jurisdictions in which the
Company operates are also carefully taken into
consideration. If a positive forecast of taxable
profit indicates the probable use of a deferred tax
asset, especially when it can be utilized without
a time limit, that deferred tax asset is usually
recognized in full.
(ii) Revenue recognition
Contracts with customers often include promises
to transfer multiple services to a customer.
Determining whether services are considered
distinct performance obligations that should be
accounted for separately or together requires
significant judgment based on nature of the
contract, ability of the service to benefit the
customer on its own or together with other readily
available resources and the ability of the service
to be separately identifiable from other promises
in the contract. Estimation relating to warranty
obligation in the projects undertaken by the
Company are determined based on the nature of
the contract and future costs to fulfil the obligation
under the warranty period.
In contracts, where percentage of completion
method is followed for revenue recognition,
estimation of total budgeted cost of completion
is required to be made. The Company reviews
forecasts of total budgeted costs in the scope
of work and other payments to the extent that
they are probable, and they are capable of being
measured at the end of each reporting period.
(iii) Useful lives of various assets
The charge in respect of periodic depreciation or
depletion is derived after determining an estimate
of an asset’s expected useful life and the expected
residual value at the end of its life. The useful
lives and residual values of assets are determined
by the management at the time of acquisition
of asset and reviewed periodically, including
at each financial year. The lives are based on
historical experience with similar assets as well
as anticipation of future events, which may impact
their life, such as changes in technology.
(iv) Current income taxes
The tax jurisdiction for the Company is India.
Significant judgments are involved in determining
the provision for income taxes including judgment
on whether tax positions are probable of being
sustained in tax assessments. A tax assessment
can involve complex issues, which can only
be resolved over extended time periods. The
recognition of taxes that are subject to certain
legal or economic limits or uncertainties is
assessed individually by management based on
the specific facts and circumstances.
(v) Accounting for defined benefit plans
In accounting for post-retirement benefits, several
statistical and other factors that attempt to
anticipate future events are used to calculate plan
expenses and liabilities. These factors include
expected discount rate assumptions and rate of
future compensation increases. To estimate these
factors, actuarial consultants also use estimates
such as withdrawal, turnover, and mortality rates
which require significant judgment. The actuarial
assumptions used by the Company may differ
materially from actual results in future periods
due to changing market and economic conditions,
regulatory events, judicial rulings, higher or lower
withdrawal rates, or longer or shorter participant
life spans.
(vi) Impairment
An impairment loss is recognized for the
amount by which an asset’s or cash-generating
unit’s carrying amount exceeds its recoverable
amount to determine the recoverable amount,
management estimates expected future cash
flows from each asset or cash generating unit
and determines a suitable interest rate in order to
calculate the present value of those cash flows.
In the process of measuring expected future cash
flows, management makes assumptions about
future operating results. These assumptions
relate to future events and circumstances. The
actual results may vary, and may cause significant
adjustments to the Company’s assets.
In most cases, determining the applicable
discount rate involves estimating the appropriate
adjustment to market risk and the appropriate
adjustment to asset-specific risk factors.
(vii) Expected credit loss
Refer note for Impairment of financial assets
mentioned in accounting policy on financial
instruments above.
(viii) Share based payments
Estimating fair value for share-based payment
requires determination of the most appropriate
valuation model. The estimate also requires
determination of the most appropriate inputs to
the valuation model including the expected life of
the option, volatility and dividend yield and making
assumptions about them.
(ix) Fair value of financial instruments
Management uses valuation techniques in
measuring the fair value of financial instruments
where active market quotes are not available. In
applying the valuation techniques, management
makes maximum use of market inputs and
uses estimates and assumptions that are, as
far as possible, consistent with observable data
that market participants would use in pricing
the instrument. Where applicable data is not
observable, management uses its best estimate
about the assumptions that market participants
would make. These estimates may vary from the
actual prices that would be achieved in an arm’s
length transaction at the reporting date.
(x) Estimation of provision for decommissioning
costs
The Company along with the lead operator of
the oilfield operations, estimates provision for
decommissioning for the future decommissioning
of oil assets at the end of their economic lives.
The decommissioning activities would be in the
future, the exact requirements that may have
to be met during 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 uncertainty. The timing and the
future expenditures are reviewed at the end of
each reporting period. The economic life of the
oil assets is estimated based on the economic
production profile of the relevant oil asset.
(xi) 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 on impairment, if any. The Company uses the
services of third-party agencies for estimation of
reserves of its assets who adopt latest industry
practices for their evaluation.
(xii) Business combination
Management applies judgement in determining
whether an acquisition constitute a business
or not. In applying judgement, the Company
determines whether the acquisition constitute
inputs and when processes are applied to those
inputs, it should have the ability to contribute to
the creation of outputs. Further, determination
of fair values of assets and liabilities acquired in
a business combination involves estimation of
future cash flows and operating results which
relate to future events and circumstances, which
might vary.
Note 11.4: During the year, the Company has not surrendered or disclosed any income 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). Accordingly,
there are no transaction which are not recorded in the books of accounts.
Notes:
1. There are no trade receivables due from any director or any officer of the Company, either severally or jointly with any other
person.
2. Trade receivables due from a private company in which director of the Company is a director amounts to ' 1,050.93 Lakhs
(March 31,2025: ' 1,026.12 Lakhs).
3. Trade receivables includes retention money amounting to ' 9,517.43 Lakhs (March 31,2025 : ' 5,347.20 Lakhs).
4 Refer note no. 41 for disclosures relating to the credit risk exposure and analysis relating to allowances for expected credit
loss
(b) Terms and rights attached to equity shares
The Company has only one class of equity shares having a par value of ' 10 per share. Each holder of equity share is
entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the
Board of Directors is subject to the approval of the shareholders in the Annual General Meeting except for interim dividend.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholder.
A(i) During the year there is a reduction in the percentage holding of Oilmax Energy Private Limited by 0.22% as the share capital of the
Company has increased during the year ended March 3i, 2026, however there is no change in the number of equity shares held by
Oilmax Energy Private Limited.
In Previous year there was an increase in the percentage holding of Oilmax Energy Private Limited by 14.02% as additional shares
were allotted by way of preferential allotment during the year ended March 31, 2025"
(i) There is no reduction in the percentage holding of Ritu Garg, as compared to a reduction by 0.01%, as the share capital of the
Company increased during the year ended March 31, 2025. There is no change in the number of equity shares held by Ritu Garg.
* Computed excluding the equity shares held in trust for the employees under the ESOP scheme.
(f) No additional shares were allotted as fully paid up by way of bonus shares or for consideration other than cash and also
no shares have been bought back during the last five years.
Notes:
(i) The balance unexercised equity shares held by the ESOP Trust at the end of the year had been reduced against the
share capital as if the trust is administered by the Company itself. The securities premium related to the unexercised
equity shares held by the trust at the close of the year amounting to ' 20.41 Lakhs (March 31,2025: ' 82.59 Lakhs)
has been reduced from securities premium account and adjusted against the loan outstanding from the ESOP Trust.
(ii) In 2021-22 the Company had approved the "Asian Energy Services Limited - Employee Stock Option Plan - 2021"
("AESL ESOP 2021") authorising grant of maximum 380,744 stock options to the eligible employees. During the
current year, 51,296 (March 31,2025: 200,643 stock options) were exercised . During the current year stock options
Nil ( March 31,2025: 5030 stock options) had lapsed.
(iii) In 2024-25 the Company had approved the "Asian Energy Services Limited - Employee Stock Option Plan - 2024"
("AESL ESOP 2024") authorising grant of maximum 380,744 stock options to the eligible employees. During the
current year, 1,62,677 (March 31, 2025: Nil) Stock Options were exercised. During the current year 58,577 stock
options had lapsed.
(iv) During the year the Company had approved the "Asian Energy Services Limited - Employee Stock Option Plan -
2025" ("AESL ESOP 2025") authorising grant of maximum 8,00,000 stock options to the eligible employees. 'The
Company has granted 4,94,260 stock options to employees of the Company under the Asian ESOP Scheme 2025
with a grant date of October 7, 2025 and 3,05,740 options allotted to employees of group entities. Out of Total Option
79,635 stock options had lapsed.
(h) Share warrants
(i) The Allotment Committee of the Board of Directors of the Company, on November 05, 2024, considered and approved
the allotment of 47,00,000 convertible share warrants on preferential basis to certain identified non-promoter
persons/ entities ("Allottees") each carrying a right upon being fully paid up, to subscribe one equity share of face
value of ' 10 each at an issue price of ' 335.00 /-.
The Company has complied with the provisions of section 42 and section 62 of the Companies Act, 2013 and the
rules framed thereunder in relation to such preferential allotment on a private placement basis.
The warrants entitled the holders to apply for an equivalent number of equity shares of the Company within a period
of 18 months from the date of allotment, i.e., on or before 04 May 2026, upon payment of the balance 75% of the
issue price per warrant. Certain warrant holders did not exercise the conversion option within the stipulated period.
Accordingly, in line with the applicable provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations,
2018, the warrants lapsed with effect from 05 May 2026, and the upfront amount of ~868.74 Lakhs (being 25% of
issue price on 10,37,298 warrants) paid at the time of allotment have been forfeited by the Company vide approval of
the Allotment Committee of the Board dated 05 May 2026.
(a) Nature of security and terms of repayment of long term borrowings1. Term loan from Bank
' 3,214.28 Lakhs (' 684.04 Lakhs as at March 31,2025) the Company has availed term loan from Bank of Maharashtra
for the purpose of purchase of plant and machinery carrying variable interest rate linked to MCLR plus spread (9.30%
p.a as at March 31,2026) with agreed interest rate reset clause which is repayable in 42 equal monthly installments
along with interest, upto 2029-30. These are primarily secured by way of hypothecation of plant and machinery to be
purchased out of the proceeds of such loan.
The loan is also secured by way of corporate guarantee by M/s Oilmax Energy Private Limited (Holding Company).
2. Vehicle Loan¬
' 302.95 Lakhs (' 106.72 Lakhs as at March 31,2025) the Company has availed vehicle loans. Interest rate charged
ranges from 8.75% p.a. to 10% p.a. The vehicles financed through such borrowing are forming part of the property,
plant and equipment and have been hypothecated for the said borrowings. The borrowings will be repaid by the
Company in equal predetermined instalments over a period ranging from 39 to 48 months from the borrowings
origination date with the last instalment repayable in F.Y. 2029-30.
(b) Working capital facilities from bank :
(i) Cash credit facility from Bank of Maharashtra is secured by way of first pari passu charge on stock and book debts
and all the current assets of the Company. Further, the facility is secured by certain fixed deposits and counter
indemnity. The interest rate applicable to the facility is computed using prevailing MCLR plus spread of 1.5%. These
are repayable on demand. The facility is also secured by way of corporate guarantee by M/s Oilmax Energy Private
Limited (Holding Company).
(ii) Cash credit facility from Union Bank of India is secured by way of exclusive charge on certain fixed deposits and
counter indemnity, hypothecation of stock and book debts, plant and machineries at various projects of the Company.
The facility is secured by way of personal security of Mr. Kapil Garg (Managing Director), Mrs. Ritu Garg (Promoter)
and Mr. Aman Garg (Non-Executive Director and relative of promoter and managing director). The interest rate
applicable to the facility is computed using prevailing MCLR plus spread of 1.5%. The above mentioned personnel
have also provided certain personal immovable properties as security. These are repayable on demand. The facility
is also secured by way of corporate guarantee by M/s Oilmax Energy Private Limited (Holding Company).
(iii) Cash credit facility from Kotak Mahindra Bank is secured by way of Second pari passu charge on existing and future
current assets and movable fixed assets of the Company. Further, the facility is secured by Exclusive registered/
equitable mortgage of the Commercial office located at Unit No- G 102 Ground Floor, Omkar Square, Chunnabhatti
Signal, Eastern Express Highway, Sion Mumbai-400022 owned by Oilmax Energy Private Limited commercial
property. The interest rate applicable to the facility is computed using prevailing 3 Months Repo rate 3.25% as on
March 31,2026. These are repayable on demand. The facility is also secured by way of corporate guarantee by M/s
Oilmax Energy Private Limited (Holding Company) and Corporate guarantee/s of Kuiper Holding along with Lien on
30% shares of target companies of Kuiper group.
(iv) Cash credit facility from CITI Bank is secured by way of A first pari passu charge on Current Assets (Stock and Book
debts) of the Company and Pledge on Fixed Deposits of 25% of released limits Company. These are repayable on
demand.
(v) The quarterly returns/statements of current assets filed by the Company with bank is in agreement with the books of
accounts for all the quarters except for following instance:
FTl DISCLOSURES PERTAINING TO IND AS 116 - LEASES
The Company has lease contracts for its office premises and oilfield equipment. Generally, the Company is restricted from
assigning the leased assets. The Company’s obligation under its leases are secured by the lessor’s title to leased assets.
1. Recognition and derecognition
Right-of-use assets:
(i) The net carrying value of right-of-use assets as at March 31, 2026 amounts to ' 40.51 Lakhs (March 31, 2025:
' 43.52 Lakhs) and has been disclosed separately in note 6 to the standalone financial statements.
2. The Company has recognised the following in the statement of profit and loss:
(i) Depreciation expense from right-of-use assets of ' 123 Lakhs (March 31,2025: ' 117.64 Lakhs) (Refer note 6).
(ii) Interest on lease liabilities of ' 5.58 Lakhs (March 31,2025: ' 7.30 Lakhs) .
(iii) Expense amounting to ' 1,957.95 Lakhs (March 31,2025: ' 4,001.52 Lakhs) related to leases of low-value assets and
leases with less than twelve months of lease term. These have been included under machine hire charges, vehicle
hire charges and rent expenses.
3. The total net cash outflow for the payment of lease liability and interest is ' 143.92 Lakhs (March 31, 2025: ' 339.23
Lakhs).
IE! FAIR VALUE MEASUREMENTS
The fair value of financial assets and liabilities is the amount at which the instrument could be exchanged in a current transaction
between willing parties, other than in a forced or liquidation sale.
Fair value hierarchy:
Financial assets and financial liabilities measured at fair value in the Balance sheet are grouped into three levels of a fair value
hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1: Prices (unadjusted) in active markets for financial instruments.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant
inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
Fair value of financial assets and liabilities measured at amortised cost
The carrying amounts of trade receivable, cash and cash equivalents, other bank balances, loans, current security deposit, trade
payables and other current financial liabilities are considered to be the same as their fair values, due to their short term nature.
Fair value of other non-current financial assets approximate their carrying amounts due to the fact that it is estimated by
discounting future cash flows using market rates of interest applicable as at reporting dates.
Fair value of long term borrowings approximate their carrying amounts due to the fact that long term borrowings are measured
at amortised cost using the floating rates/fixed rates of interest, which in turn are based on interest rates prevailing in the
market for similar transaction.
Fair value of financial assets measured at FVTPL
The fair values of investments in mutual fund units is based on the net asset value ('NAV') as stated by the issuers of these
mutual fund units in the published statements as at reporting date.
Fair value of financial assets at FVTOCI
The fair value of investments carried at FVTOCI is determined, using a valuation model based on assumptions that are neither
supported by prices from observable current market transactions in the same instrument nor are they based on available
market data. The fair value of these investments is categorised as Level 3 because the shares are neither listed on an exchange
and there were no recent observable arm's lenght transactions in the shares.
There are no transfers in either level during the reporting periods.
WHt FINANCIAL RISK MANAGEMENT
The Company's activities expose it to credit risk, liquidity risk and market risk. This note explains the sources of risk which the
entity is exposed to and how the entity manages the risk and the related impact in the financial statements. The Companies risk
management is done in close co-ordination with the board of directors and focuses on actively securing the Company’s short,
medium and long-term cash flows by minimizing the exposure to volatile financial markets. Long-term financial investments
are managed to generate lasting returns. The Company does not actively engage in the trading of financial assets for speculative
purposes nor does it write options. The most significant financial risks to which the Company is exposed are described below:
Credit risk
Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. The Company is
exposed to credit risk from loans and advances to related parties, trade receivables, bank deposits and other financial assets.
Bank deposits are placed with reputed banks / financial institutions. Hence, there is no significant credit risk on such fixed
deposits.
The Company does not have significant credit risk from loans given considering these are provided to related parties or to
financial institution for shorter duration. Mutual fund investments are made in liquid and overnight plans of renowned asset
management company only. The credit risk associated with bank, security deposits and mutual fund investments is relatively
low.
The Company trades with recognised and credit worthy third parties. The Company periodically assesses the financial reliability
of the counter party, taking into account the financial condition, current economic trends, and analysis of historical bad debts
and ageing of accounts receivable.
Credit risk on trade receivables is limited as the Company’s customer base majorly includes reputed and large corporate groups
and public sector enterprises. It is the Company’s policy that all customers who wish to trade on credit terms are subject to
credit verification procedures. Also, generally the company does not enter into sales transaction with customers having credit
loss history. In addition, trade receivable balances are monitored on an on-going basis with the result that the Company’s
exposure to bad debts is not significant. In case of trade receivables due from related parties and in case of disputed trade
receivables, the Company performs individual credit risk assessment and creates expected credit loss allowance (ECL) based
on internal assessment. Further, the Company computes ECL on undisputed trade receivables (including those where ultimate
customer is a non-related party) at each reporting date, based on provision matrix which is prepared considering historically
observed overdue rate over expected life of trade receivables and is adjusted for forward-looking estimates.
Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a
reasonable price. For the Company, liquidity risk arises from obligations on account of financial liabilities - borrowings,
trade payables, lease liabilities and other financial liabilities.
The Company’s principal sources of liquidity are cash and cash equivalents, current investments and the cash flow that is
generated from operations. The Company believes that the working capital is sufficient to meet its current requirements.
Accordingly, no liquidity risk is perceived. The Company closely monitors its liquidity position and maintains adequate
source of funding.
The Company considers expected cash flows from financial assets in assessing and managing the liquidity risk, in
particular, its cash resource, investment in mutual funds and trade receivables.
Maturities of financial liabilities :
The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on the maturities
for all non-derivative financial liabilities. Balances due within 12 months equal their carrying balances as the impact of
discounting is not significant. For contractual maturities of lease liabilities, refer note 39.
Market risk
Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and net asset value
(NAV) of mutual fund units will affect the Company’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return. The sensitivity analysis excludes the impact of movements in market variables on the carrying value
of post-employment benefit obligations provisions and on the non-financial assets and liabilities. The sensitivity of the
relevant profit and loss item is the effect of the assumed changes in respective market risks.
Mutual fund price risk
The value of unquoted mutual fund investments measured at fair value through profit and loss as at March 31,2026 is
' Nil (March 31,2025: ' 1,837.92 Lakhs). A 10% change in value for year ended March 31,2026 would result in an impact
of Nil (March 31,2025: ' 183.79 Lakhs) on profit/ (loss) before tax and other equity (holding all other variables constant).
Foreign currency risk
The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the
US Dollar. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the
Interest rate risk
This refers to risk to Company’s cash flow and profits on account of movement in market interest rates.
For the Company the interest risk arises mainly from interest bearing borrowings which are at floating interest rates.
To mitigate interest rate risk, the Company closely monitors market interest and as appropriate makes use of hedged
products and optimise borrowing mix / composition.
An equal and opposite impact would be experienced in the event of an opposite change in interest rate by a similar
percentage.
The above calculation also assumes that the change occurs at the balance sheet date and has been calculated based on
risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt
outstanding during the period.
PH CAPITAL MANAGEMENT
The Company objectives when managing capital are to safeguard their ability to continue as a going concern so that they can
continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal structure to reduce
the cost of capital. In order to maintain or adjust the Capital structure, the Company may adjust the amounts of dividends paid
to shareholders, return capital to shareholders, issue new shares or sell new assets to reduce debt. The Company does not
have externally imposed capital requirements.
Note: In the long run, the Company’s strategy is to maintain a gearing ratio within acceptable range as deemed appropriate by
board of directors, which at present is to have less than 0.50.
151EMPLOYEE BENEFITS1. Short term employee benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee
benefits. Benefits such as salaries, incentives and allowances, short terms compensated absences, etc., and the expected
cost of bonus, ex-gratia are recognised in the year in which the employee renders the related service.
2. Long term employee benefits
(i) Defined benefit plan
Gratuity (funded) :
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who
are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/
termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied
for the number of years of service.
The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change
in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption,
the method (Projected Unit Credit Method) used to calculate the liability recognised in the balance sheet has been applied.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the
previous period. Sensitivities due to mortality and turnover are not material and hence impact of change due to these not
calculated.
G. Risk exposure
The Company is exposed to a number of risks, the most significant of which are actual salary growth rate and reduction
in discount rate in future, which can increase the obligation.
(ii) Defined contribution plan
Provident fund and employee's state insurance corporation
The Company pays fixed contribution to the provident fund, employee’s state insurance corporation entities and labour
welfare fund in relation to several state plans and insurances for individual employees. This fund is administered by the
respective Government authorities, and the Company has no legal or constructive obligations to pay contributions in
addition to its fixed contributions, which are recognised as an expense in the year that related employee services are
received.
(iii) Share-based payment transactions
In 2021-22, the Company had approved "Asian Energy Services Limited - Employee Stock Option Plan - 2021" ("AESL
ESOP 2021") authorising grant of not exceeding 380,744 stock options to the eligible employees. The scheme is designed
to provide long term incentives for certain employees to deliver long term shareholders return. During the current year, the
Company has granted Nil (March 31,2023: 380,000) employee stock options convertible into equivalent equity shares to
the eligible employees including that of group company pursuant to such scheme. The details of activity under the ESOP
schemes are summarized below:
In 2024-25, the Company has approved "Asian Energy Services Limited - Employee Stock Option Plan - 2024" ("AESL
ESOP 2024") authorising grant of not exceeding 380,744 stock options to the eligible employees. The scheme is designed
to provide long term incentives for certain employees to deliver long term shareholders return. During the current year, the
Company has granted Nil (March 31,2025: 3,80,744) employee stock options convertible into equivalent equity shares to
the eligible employees including that of group company pursuant to such scheme. The details of activity under the ESOP
schemes are summarized below:
During the year the company had approved the "Asian Energy Services Limited - Employee Stock Option Plan - 2025"
("AESL ESOP 2025") authorising grant of maximum 8,00,000 stock options to the eligible employees. The scheme is
designed to provide long term incentives for certain employees to deliver long term shareholders return. During the current
year, the Company has granted 8,00,000 (March 31,2025: Nil) employee stock options convertible into equivalent equity
shares to the eligible employees including that of group company pursuant to such scheme. The details of activity under
the ESOP schemes are summarized below:
D. Other outstanding arrangements:
Kapil Garg, Ritu Garg and Aman Garg have provided personal security towards cash credit facility availed by the Company.
These individuals have also provided certain personal immovable properties as security
The Holding Company has also provided a Corporate Guarantee to the bankers towards cash credit facilities availed by
the Company. Such facility has a debit balance amounting to ' 2752.35 Lakhs as on March 31,2026 (March 31, 2025 of
' 1,579.85 Lakhs).
* The figures are based on contractual arrangement executed and does not include the impact of Ind AS.
** Provision towards outstanding loan and interest accrued thereon aggregating ' 208.50 Lakhs was made during the previous years.
Also, interest on loan receivable from such subsidiary has not been accrued in books of account considering the financial position of
such subsidiary.
* Taxable value in the hand of KMP is reported
Notes:
(i) The closing amount pertaining to investment made in subsidiaries and joint ventures is not considered as a part of
disclosure on outstanding balance due.
(ii) Represents Company’s share of expenses in joint operation at Indrora oilfield.
(iii) The closing balance with related parties are unsecured in nature. The settlement of receivable/ payable balances
would be done through cash or other financial asset.
IE1 UN-HEDGED FOREIGN CURRENCY EXPOSURES:
For un-hedged foreign currency exposure, refer section 'Foreign currency risk’ under note 41 - Financial Risk Management.
IE! CORPORATE SOCIAL RESPONSIBILITY (CSR) EXPENDITURE
As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of
its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The
Board of Directors of the Company had constituted CSR Committee.
iii) Nature of CSR activities includes promoting education, healthcare, eradicating hunger, poverty and malnutrition,
empowering women and rural development projects.
iv) The Company did not wish to carry forward the excess amount spent during the previous year.
v) The Company does not have any ongoing projects as at March 31,2026.
vi) There is no unspent amount of CSR activities as at March 31,2026
vii) There is no related party transaction in relation to CSR expenditure.
There are no capital commitments as on respective reporting periods.
IE1 SEGMENT INFORMATION
(a) The Company publishes standalone financial statements along with the consolidated financial statements. Accordingly, as
per Ind AS 108 'Operating Segments’, no disclosures related to the segments are presented in these standalone financial
statements.
IE1 DIVIDEND
The Board of Directors at its meeting held on May 19, 2026 has recommended a final dividend of ' 1.25 per equity share of
' 10.00 each fully paid up, subject to approval of shareholders at the ensuing shareholders meeting. The dividend declared is in
accordance with section 123 of the Act to the extent it applies to declaration of dividend.
f) Cost to obtain or fulfil the contract:
(i) Amount of amortisation recognised in Statement of Profit and Loss during the year : Nil (March 31,2025: Nil)
(ii) Amount recognised as contract assets in relation to cost incurred for obtaining contract as at March 31,2026 : Nil
(March 31,2025: Nil)
g) In the normal course of business, the payment terms given to majority of the customers ranges from 30 to 60 days except
retention monies which are due after the completion of the project as per the terms of contract.
EQ| IMPACT ON ACCOUNT OF NEW LABOUR CODE
Effective from November 21, 2025, the Government of India notified the consolidation of 29 existing labour regulations into
four New Labour Codes, namely, The Code on Wages, 2019; The Industrial Relations Code, 2020; The Code on Social Security,
2020; and the Occupational Safety, Health and Working Conditions Code, 2020. In accordance with these codes and Ind AS
19 (Employee Benefits), particularly para’s 165-166 on past service cost recognition, the Company has estimated its Gratuity
liability, leading to recognition of incremental past service costs. This has resulted in an expense of ' 42.22 Lakhs, recognized
in the Standalone Statement of Profit and Loss for the year ended March 31, 2026. Upon notification of the related Rules and
any further Government clarifications on the New Labour Codes, the Company will evaluate and account for any differential
impact in subsequent periods.
ESI OTHER STATUTORY INFORMATION AS PER SCHEDULE III TO THE ACT
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
(ii) The Company does not have any transactions with Companies whose name has been struck off from the register of
Companies.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with registrar of companies (ROC)
beyond the statutory period
(iv) The Company has not traded or invested in Crypto currency or Virtual currency during the year.
(v) The Company have 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:
(a) 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
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) The Company have 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:
(a) 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
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vii) The Company has complied with number of layers prescribed under section 2(87) of the Act read with the Companies
(Restriction on number of Layers) Rules, 2017.
Proved reserves are those quantities of petroleum that, by analysis of geological and engineering data, can be estimated with
reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current
economic conditions, operating methods, and government regulations.
EJ AMALGAMATION SCHEME.
During the year ended March 31, 2026, the Company received Observation Letters stating 'No Objection’ from the stock
exchanges for the application filed by the Company for Merger by Absorption under Sections 230-232 read with Section 66 of
the Companies Act, 2013 for Amalgamation of Oilmax Energy Private Limited ("OEPL" or the "Transferor Company") with Asian
Energy Services Limited ("AESL" or the "Transferee Company" or the "Company") and their respective Shareholders ("Scheme").
Subsequently, upon joint application filed by the Applicant Companies, the National Company Law Tribunal, Mumbai Bench,
("NCLT Mumbai") passed the order dated April 22, 2026, inter alia, for convening meeting of the Equity Shareholders, which shall
be held on June 12, 2026. Results of the said meeting shall be filed within 30 days with the NCLT for further hearing. Therefore,
since the final approval from NCLT is pending, no effect of the scheme has been given in the financial statements.
EBI AUDIT TRAIL (EDIT LOG) FEATURE IN THE ACCOUNTING SOFTWARE
The Ministry of Corporate Affairs (MCA) introduced a new requirement for companies under the proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring companies,
which uses accounting software for maintaining its books of account, shall use only such accounting software which has a
feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account
along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
The Company has used accounting software for maintaining its books of account during the year ended March 31,2026. The
software has an audit trail (edit log) feature enabled at the application level for recording all relevant transactions. However, the
audit trail feature was not enabled at the database level to log any direct data changes.
Material Accounting Policies and key accounting estimates and judgements - 1 & 2
The accompanying notes form an integral part of the standalone financial statements - 3-57
These are the notes to the standalone financial statements referred to in our report of even date
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