Annual Report, 2014 - Bombay Stock Exchange“RESOLVED THAT the Company do take on lease the office...

2 Annual Report, 2014

23RD ANNUAL REPORT2013-2014

COMPANY PROFILE

BOARD OF DIRECTORS : Vijay Misra - Chairman

Gopal Pallipuram Srinivasan - Managing Director

Lee Chye Cheng Adrian - Director

Arun Kumar Agarwal - Director

Lai Kai Jin Michael - Director

Ambrose Gerard Corray - Director

Krishna Kumar Nittala - Director

Ajay Gupta - Director

COMPANY SECRETARY : Parvinder Singh Arora

STATUTORY AUDITORS : M/s. Shirish Desai & Co.Chartered Accountants, Vadodara

BANKERS : HDFC Bank Ltd., DBS Bank Ltd.Yes Bank Ltd., State Bank of India

REGISTERED OFFICE : 211A, 2nd Floor, Triveni ComplexE-10-12, Jawahar Park, Laxmi Nagar, New Delhi-110092

CORPORATE OFFICE : H-20, Sector 27, NOIDA, Uttar Pradesh-201301

SITE LOCATIONS : GCS BaolaVillage : Salajda Tal, Distt : Ahmadabad, Gujarat-382220

Modhera BlockVillage : Modhera, Distt : Mehsana, Gujarat-384212

CONTENTS1. Notice .............................................................................................................................................................................. 03

2. Directors’ Report .......................................................................................................................................................... 11

3. Corporate Governance Report ................................................................................................................................... 20

4. Auditors’ Report ........................................................................................................................................................... 36

5. Financial Statements ................................................................................................................................................. 41

6. Attendance Slip ............................................................................................................................................................ 62

3Annual Report, 2014

INTERLINK PETROLEUM LIMITEDCIN: L23209DL1991PLC219214

Regd. Office: 211A, 2nd Floor, Triveni Complex, E-10-12Jawahar Park, Laxmi Nagar, New Delhi-110092

Website: www.interlinkpetroleum.com, Email: [email protected] No.: +91 120 4052222, +91 11 32228364, Fax No.: +91 120 4052211

NOTICE OF ANNUAL GENERAL MEETING

NOTICE is hereby given that the 23rd Annual General Meeting of the members of Interlink Petroleum Limitedwill be held on Wednesday the 24th September 2014 at 11:00 A.M. at Assam Association, Srimanta SankardevaBhawan, A-14B, Qutub Institutional Area, Satsang Vihar Marg, New Delhi-110067 to transact the followingBusinesses:

ORDINARY BUSINESS

1. To receive, consider and adopt the Financial Statements of the Company as on 31st March, 2014together with the Reports of the Board of Directors and the Auditors’ thereon.

2. To consider and if thought fit, to pass with or without modification(s) the following resolution as anordinary resolution.

“RESOLVED THAT the vaccancy on Board of Directors of the Company created an account of the factthat Dr. Ambrose Gerard Corray (DIN: 05100174) a director liable to retire by rotation does not wishto seek re-appointment as a director of the Company, be not filled”.

3. To appoint a Director in place of Mr. Vijay Misra (DIN: 00458031), who retires by rotation and beingeligible, offers himself for re-appointment.

4. To re-appoint M/s. Shirish Desai & Co., Chartered Accountants, Vadodara, as Statutory Auditors andfix their remuneration:

“RESOLVED THAT M/s. Shirish Desai & Co., Chartered Accountants (Registration No. 112226W), be andis hereby appointed as Statutory Auditors of the Company, to audit the accounts for the financial year2014-15 and to hold office from the conclusion of this Annual General Meeting until the conclusion ofthe next Annual General Meeting of the Company on such remuneration as shall be fixed by the Boardof Directors.

SPECIAL BUSINESS

5. To consider and, if thought fit, to pass with or without modification the following resolution as anOrdinary Resolution:

"RESOLVED THAT pursuant to the provisions of Section 148 and all other applicable provisions of theCompanies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 (including any statutorymodification(s) or re-enactment thereof, for the time being in force), M/s. K L Jaisingh & Co., the Cost


Auditors, appointed by the Board of Directors of the Company, to conduct Audit of the cost records ofthe company for the financial year ending 31st March 2015, be paid the consolidated remuneration of` 25,000/- plus applicable taxes and out of pocket expenses.

“RESOLVED FURTHER THAT the Board of directors of the company be and is hereby authorized to settleany question difficulty or doubt that may arise in giving effect to this resolution and to do all suchacts, deeds and things as may be necessary expedient and desirable for the purpose of giving effect tothis resolution.”

6. To consider and, if thought fit, to pass with or without modification the following resolution as anSpecial Resolution:

“RESOLVED THAT the Company do take on lease the office space at basement and Ground Floor at H-20,Sector-27, NOIDA 201 301 for a period of one year starting from 1st September 2014 to 31st August2015.

RESOLVED FURTHER THAT the rent for the space would be ̀ 1,61,051/- per month for the one year.

RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised to settleany question difficulty or doubt that may arise in giving effect to this resolution and to do all suchacts, deeds and things as may be necessary expedient and desirable for the purpose of giving effect tothis resolution.”

7. To consider and, if thought fit, to pass with or without modification the following resolution as anSpecial Resolution:

“RESOLVED THAT pursuant to Section 186 and other applicable provisions of the Companies Act 2013and rules framed thereunder the approval of the shareholders be and is hereby accorded to acquireby way of subscription, purchase or otherwise, the securities of any other body corporate, up to anamount not exceeding ̀ 3000 crores, notwithstanding that the said loan/security/acquisition exceeds60% of the paid-up share capital, free reserves and security premium account or 100% of the freereserves and security premium account, whichever is more.

RESOLVED FURTHER THAT the Board of directors be and are hereby authorized to do all such acts,deeds as they may, in their absolute discretion, consider necessary, expedient or desirable includingto delegate all or any of the above powers to such Committee of Directors or the Managing Director orthe Director or any other officer of the Company, in order to give effect this resolution or as otherwiseconsidered by them to be in the best interest of the Company, as it may deems fit.”

For and on behalf of the Board,INTERLINK PETROLEUM LIMITED

Sd/-

Place : NOIDA Parvinder S AroraDated: 13th August 2014 COMPANY SECRETARY


Notes :

1. Shareholders are requested to bring their copy of Annual Report to the Meeting.

2. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE EXTRAORDINARY GENERAL MEETING (THE “MEETING”)IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF/HERSELF AND THEPROXY NEED NOT BE A MEMBER OF THE COMPANY. The instrument appointing the proxy in Form MGT-11 annexed hereto, in order to be effective, should reach the registered office of the Company at least48 hours before the time of the meeting. A person can act as a proxy on behalf of the members notexceeding 50 and holding in aggregate not more than ten percent of the total paid up share capital ofthe Company. However, a single person may act as a proxy for a member holding more than 10 percentof the total voting share capital of the Company provided that such person shall not act as proxy forany other person.

3. All alterations made in the Form of Proxy should be duly initialed.

4. Corporate Members intending to send their authorised representatives to attend the Meeting arerequested to send to the Company a certified copy of Board Resolution authorizing their representativesto attend and vote on their behalf at the Meeting.

5. Information about the directors proposed to be appointed and re-appointed, as required under theclause 49IVG of the listing agreement is annexed thereto.

6. Explanatory Statements pursuant to Section 102 of the Companies Act, 2013, relating to the SpecialBusiness to be transacted at the Meeting are annexed hereto.

7. Relevant documents referred to in the accompanying Notice and Explanatory Statement are open forinspection at the Registered Office of the Company at 211A, 2nd Floor, Triveni Complex, E-10-12,Jawahar Park, Laxmi Nagar, New Delhi-110092, on all working days except Saturdays and Sundaysduring business hours up to the date of the Meeting.

8. The Register of Members and Share Transfer Books of the Company shall remain closed from 15th dayof September 2014 to 24th day of Septebmer 2014 (both inclusive).

9. Members who hold shares in dematerialized form are requested to bring their Client ID and DP IDnumbers for easy identification of attendance at the meeting.

10. In case of joint holders attending the meeting, only such joint holder who is higher on the order ofnames will be entitled to vote.

11. Members holding shares in physical form are requested to notify immediately any change of addressto their Depository Participants (DPs) in respect of their holdings in electronic form and to theRegistrars of the Company i.e. Link Intime India Pvt. Ltd., 44 Community Centre, 2nd Floor, NarainaIndustrial Area, Phase - I, Near PVR, Naraina, New Delhi, Delhi, 110028.

12. SEBI vide its Circular No. MRD/Dop/Cir-05/2009 dated 20th May 2009 has made it mandatory to submitPAN for registration of physical share transfer requests. Members holding shares in electronic formare, therefore, requested to submit a copy of their PAN to their Depository Participants with whom theyare maintaining their Demat Accounts. Members holding shares in physical form can submit their PANdetails to the Company / Registrars and Transfer Agents M/s. Link Intime India Private Limited.


13. Members seeking further information about the Accounts/Working of the Company are requested towrite to the Company Secretary at least 7 days in advance of the meeting so as to enable the Directorsto keep the information ready for the meeting. They may also email their queries [email protected] at least seven days in advance.

14. The Company has already joined the Depository System and the ISIN for the equity shares of theCompany is INE959G01016. Members holding shares in physical mode are requested to convert theirholdings into Dematerialized mode.

15. Members who hold shares in dematerialized form are requested to bring their Client ID and DP IDnumbers for easy identification of attendance at the meeting.

16. Non-Resident Indian Members are requested to inform M/s. Link Intime India Private Limitedimmediately of any change in their residential status on return to India for permanent settlement.

17. Shareholders are requested to fill-in and sign the attendance slip and hand it over at the entrance tothe venue.

18. Members, who are holding shares in identical order of names in more than one folio are requested towrite to the Company enclosing their share certificates to consolidate their holdings in one folio.

19. Non-Resident Indian Members are requested to inform M/s. Link Intime India Private Limitedimmediately of any change in their residential status on return to India for permanent settlement.

20. Members are advised to make nomination in respect of their shareholding. Shareholders desirous ofmaking nominations are requested to send their request to the Registrar and Transfer Agent, M/s. LinkIntime India Private Limited.

21. To support the ‘Green Initiative’ in the Corporate Governance taken by the Ministry of CorporateAffairs, to contribute towards greener environment and to receive all documents, notices, includingAnnual Reports and other communications of the Company, investors are requested to register their e-mail addresses with Link Intime India Private Limited if shares are held in physical mode or with theirDP, if the holding is in electronic mode. In case a member holding shares in Dematerilized mode wantsto obtain the copy of Annual Report in physical mode, he is requested to request the Company or R&TAin writing, for the same.

The instructions for members for voting electronically are as under:-

(i) The voting period begins on 17thSeptember 2014 at 9:30 AM and ends on 18th September 2014 at6:00 PM. During this period shareholders’ of the Company, holding shares either in physical form orin dematerialized form, as on the cut-off date (record date) may cast their vote electronically. The e-voting module shall be disabled by CDSL for voting thereafter.

(ii) The shareholders should log on to the e-voting website www.evotingindia.com.

(iii) Click on Shareholders.

(iv) Now Enter your User IDa. For CDSL: 16 digits beneficiary ID,b. For NSDL: 8 Character DP ID followed by 8 Digits Client ID,c. Members holding shares in Physical Form should enter Folio Number registered with the Company.


(v) Next enter the Image Verification as displayed and Click on Login.

(vi) If you are holding shares in demat form and had logged on to www.evotingindia.com and voted on anearlier voting of any company, then your existing password is to be used.

(vii) If you are a first time user follow the steps given below:

For Members holding shares in Demat Form and Physical Form

PAN Enter your 10 digit alpha-numeric *PAN issued by Income Tax Department (Applicable forboth demat shareholders as well as physical shareholders)

• Members who have not updated their PAN with the Company/Depository Participantare requested to use the first two letters of their name and the 8 digits of the sequencenumber in the PAN field.

• In case the sequence number is less than 8 digits enter the applicable number of 0’sbefore the number after the first two characters of the name in CAPITAL letters. Eg. Ifyour name is Ramesh Kumar with sequence number 1 then enter RA00000001 in thePAN field.

DOB Enter the Date of Birth as recorded in your demat account or in the company records for thesaid demat account or folio in dd/mm/yyyy format.

Dividend Enter the Dividend Bank Details as recorded in your demat account or in the companyBank records for the said demat account or folio.Details • Please enter the DOB or Dividend Bank Details in order to login. If the details are not

recorded with the depository or company please enter the member id / folio number inthe Dividend Bank details field as mentioned in instruction (iv).

(viii) After entering these details appropriately, click on “SUBMIT” tab.

(ix) Members holding shares in physical form will then directly reach the Company selection screen.However, members holding shares in demat form will now reach ‘Password Creation’ menu whereinthey are required to mandatorily enter their login password in the new password field. Kindly notethat this password is to be also used by the demat holders for voting for resolutions of any othercompany on which they are eligible to vote, provided that company opts for e-voting through CDSLplatform. It is strongly recommended not to share your password with any other person and takeutmost care to keep your password confidential.

(x) For Members holding shares in physical form, the details can be used only for e-voting on theresolutions contained in this Notice.

(xi) Click on the EVSN for the relevant 140822055-Interlink Petroleum Limitedon which you choose tovote.

(xii) On the voting page, you will see “RESOLUTION DESCRIPTION” and against the same the option “YES/NO” for voting. Select the option YES or NO as desired. The option YES implies that you assent to theResolution and option NO implies that you dissent to the Resolution.

(xiii) Click on the “RESOLUTIONS FILE LINK” if you wish to view the entire Resolution details.


(xiv) After selecting the resolution you have decided to vote on, click on “SUBMIT”. A confirmation box willbe displayed. If you wish to confirm your vote, click on “OK”, else to change your vote, click on“CANCEL” and accordingly modify your vote.

(xv) Once you “CONFIRM” your vote on the resolution, you will not be allowed to modify your vote.

(xvi) You can also take out print of the voting done by you by clicking on “Click here to print” option on theVoting page.

(xvii) If Demat account holder has forgotten the same password then Enter the User ID and the imageverification code and click on Forgot Password & enter the details as prompted by the system.

(xviii) Note for Non – Individual Shareholders and Custodians

• Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodian are requiredto log on to www.evotingindia.com and register themselves as Corporates.

• A scanned copy of the Registration Form bearing the stamp and sign of the entity should beemailed to [email protected].

• After receiving the login details they have to create a compliance user should be created usingthe admin login and password. The Compliance user would be able to link the account(s) forwhich they wish to vote on.

• The list of accounts should be mailed to [email protected] and on approval ofthe accounts they would be able to cast their vote.

• A scanned copy of the Board Resolution and Power of Attorney (POA) which they have issued infavour of the Custodian, if any, should be uploaded in PDF format in the system for the scrutinizerto verify the same.

(xix) In case you have any queries or issues regarding e-voting, you may refer the Frequently AskedQuestions (“FAQs”) and e-voting manual available at www.evotingindia.com, under help section orwrite an email to [email protected].

EXPLANATORY STATEMENT FOR ITEM NO. 5 PURSUANT TO SECTION 102 OF THE COMPANIES ACT 2013

Pursuant to section 148 of the Companies Act, 2013, the Company is directed to have the audit of its costrecords conducted by a cost accountant in practice. The Board of your Company has, on the recommendationof the Audit Committee, approved the appointment of M/s. K L Jaisingh & Co. as the Cost Auditors of theCompany to conduct Audit of the cost records maintained by the company for the financial year ended 31st

March 2015 on consolidated remuneration of INR 25,000/- plus applicable taxes and out of pocket expenses.M/s. K L Jaisingh & Co., the cost auditors’ have furnished the eligibility certificates for appointment as CostAuditors of the Company. M/s. K L Jaisingh & Co. have vast experience in the field of cost audit and haveconducted the audit of the cost records of the Company for the past 2 years under the provisions of theerstwhile Companies Act, 1956.

The Board recommends the consolidate remuneration of INR 25000/- plus service tax and out-of-pocketexpenses to M/s. K L Jaisingh &Co. as the Cost Auditors and the approval of the shareholders is sought forthe same by an Ordinary Resolution.


None of the Directors and key managerial personnel of the Company or their respective relatives areconcerned or interested in this Resolution.


(a) Name of the related party : Mrs. Sushila Devi

(b) Name of the director or Key Managerial Personnel who is related: Mr. Vijay Misra

(c) Nature of Relationship : Mrs. Sushila Devi is mother of Mr. Vijay Misra

(d) Nature, material terms, monetary value and particulars of the contract or arrangement : The renewalof lease deed is a related party transaction pursuant to section 188 of the Companies Act, 2013 readwith Companies (Meeting of Board and its Powers) Rules 2014. The company is taking the basementand first floor of the House No. H-20, Sector-27, NOIDA-201301, Uttar Pradesh, India, for a period ofone year starting from 1st September 2014 to 31st August 2015 at a monthly rent of INR 1,61,051/-. Theowner of house is Mrs. Sushila Devi, mother of Mr. Vijay Misra, the Chairman and Promoter Directorof the Company. The draft lease deed is available for inspection at the Registered Office of the Companyat 211A, 2nd Floor, Triveni Complex, E-10-12, Jawahar Park, Laxmi Nagar, New Delhi-110092 on allworking days excepts Saturdays and Sundays during the business hours upto the date of AnnualGeneral Meeting. It is proposed to accord the permission to take the basement and first floor on leaseand sign and execute the lease deed.

(e) Any other information relevant or important for members to take a decision on the proposed resolution:The Company is using this space as its Corporate Office since 2008. The Company took this space fromMrs. Sushila Devi on lease through lease deed. The lease deed was further renewed in September 2011for a period of 3 years at a monthly rent of INR 1,46,410/- with 10% increment after every year.However, after some time, the company requested Mrs. Sushila Devi not to increase the monthly rentfor some time. The company increased rent up to 1,61,051/- i.e. by 10% in January 2014 onwards andis paying the same. The Company propose to accord permission to take the basement and first floor onthe same rent for a period of one year w.e.f. 1st September 2014.

The Promoter Director Mr. Vijay Misra and his relatives are concerned or interested in the proposedresolution as set out in Item No. 6 of the Notice convening the AGM.

Other than Mr. Vijay Misra, none of the Directors, Key Management Personnel of the Company andtheir relatives is interested or concerned whether financially or otherwise in the resolution set out atItem No. 6 of the Notice of AGM.


In supersession of the earlier resolutions passed by the shareholders under section 372A of the CompaniesAct 1956, the company proposes to pass the resolution mentioned in Item No. 7 of the Notice, in terms of


section 186 of the Companies Act 2013. According to section 186 of Companies act 2013, a company cannotmake investment in other body corporate or give loan or guarantee or provide any security to any person orother body corporate in excess of the limits set out therein, unless it is previously authorized by a specialresolution.

The Company in future may invest as per the requirements of the company. Accordingly the company isseeking to invest directly or indirectly acquire by way of subscription, purchase or otherwise, the securitiesof any other body corporate, through this resolution.

The directors recommend the resolutions as set out in item no 7 of the notice for the approval of members.

None of the Directors and Key Managerial Personnel of the Company and their relatives is concerned orinterested, financial or otherwise, in the resolution set out at Item No. 7.

ANNEXURE TO THE NOTICE

PURSUANT TO THE PROVISIONS OF THE LISTING AGREEMENT WITH THE STOCK EXCHANGE, THE INFORMATIONREQUIRED TO BE GIVEN, IN CASE OF THE APPOINTMENT/REAPPOINTMENT OF THE DIRECTORS IS AS FOLLOWS:

Director’s Name Mr. Vijay Misra

Date of Birth 4th December 1961

Qualifications Masters in Business Administration andBachelors Degree in Law.

Nature of Expertise Consultant and Advisor in Oil & GasFields

Date of Appointment/ Reappointment 31st July 2008

Name of other Companies in which he • Doni Polo Infraconsultant Pvt. Ltd.holds Directorships • ManthanPharma Pvt. Ltd.

• Orchid Oil Pvt. Ltd.

Name of the committees of Companies NILin which he holds memberships

Shareholding in the Company 100000 Equity Shares*

*Held in own name.


DIRECTORS' REPORT

Dear Members,

The Directors of the Company presents the Company's Twenty Third (23rd) Annual Report of the Company,along with Audited Accounts for the financial year ended 31st March, 2014.

1. FINANCIAL PERFORMANCE(Figure in `)

Particulars 2013-14 2012-13Total Income 4377076 3455209Gross Profit / (Loss) before Interest, Depreciation & Tax (11635096) (6494462)Less : Interest 2496206 Nil Depreciation 618935 73276Profit before Tax (14750237) (6567738)Less: Provision for Taxation Nil NilProfit after Tax (14750237) (6567738)Amount carried to Reserves (14750237) (6567738)Equity Share Capital (Paid-up) 249212000 249212000Net Worth 354285339 369035576

2. DIVIDEND

In view of losses incurred during the financial year 2013-14, the Board does not recommend anydividend for the year under review.

3. REVIEW OF OPERATIONS

During the year, the Company recommenced production and supplying of gas to the buyer with effectfrom 12th April 2013. But, due to the water ingress, the production and supply of gas could notsustain and was suspended after flowing the well just for 38 days i.e. w.e.f. 19th May, 2013. The Gassupply agreement was also terminated at the request of the buyer.

The Company is currently attempting to produce Gas from a different zone from Well B #1.

Further, during the year, the company carried out steaming operations in Well B #8, to successfullytest flow the well and assess the crude oil production potential in the field. However, the results werenot very encouraging and require further work using latest technology to successfully test flow thewell and establish its commerciality.

The Company intends to carry out further operations in Baola & Modhera fields during the nextfinancial year.


4. SIGNIFICANT DEVELOPMENTS

The Company has been evaluating a few producing properties and prospective exploration blocks forfarm-in. The Company is currently in discussion to look into the possibility of buying an Oil & Gasfield outside India subject to the Company being able to raise the required funding. This will befinanced by a mix of equity and /or debt. Further, the Company is also in discussions with fewinvestors, who have shown interest to infuse funds in the company. The members in the Extra-ordinary General Meeting held on 6th July 2014 has also approved raising of funds to the extent of` 2,000 crores.

5. DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the requirements under Section 217 (2AA) of the Companies Act, 1956, with respect to theDirectors' Responsibility Statement, your directors confirm that:

(i) in the preparation of the annual accounts for the year ended 31st March 2014, the applicableaccounting standards read with requirements set out under schedule VI of the Companies Act1956, have been followed and there are no material departures from same;

(ii) the Directors have selected such accounting policies and applied them consistently andjudgments and estimates that are reasonable and prudent so as to give a true and fair view ofstate of affairs of the Company as at 31st March 2014 and of the losses of the Company for theyear ended on that date;

(iii) the Directors have taken proper and sufficient care for the maintenance of adequate accountingrecords in accordance with the provisions of the Companies Act, 1956 for safeguarding theassets of the company and for preventing and detecting fraud and other irregularities; and

(iv) the Directors have prepared the annual accounts on a 'going concern' basis.

6. DIRECTORS

There was no change in the Board of directors during the year. Mr. Vijay Misra and Dr. AmbroseGerard Corray, directors retire by rotation. Mr. Vijay Misra being eligible has offered himself forreappointment. However, Dr. Ambrose Corray has not expressed his intention of being reappointed assuch. The Board of Directors recommend not to appoint any other Director in place of Dr. AmbroseGerard Corray.

The Board recommends the re-appointment of Mr. Vijay Misra.

7. SUBSIDIARIES

As informed in the previous annual report, the company had started the winding up process of itswholly owned subsidiary namely Interlink Petroleum Pte. Limited (IPPL), incorporated under the lawsof Singapore. You may note that the IPPL has been successfully closed in the month of September,2013. This has helped the company in reducing the cost associated with maintaining the subsidiary.


8. PERSONNEL

In terms of the provisions of Section 217(2A) of the Companies Act, 1956, read with the Companies(Particulars of Employees) Rules, 1975 as amended, the names and other particulars of the employeesare set out in the annexure to the Directors' Report. Having regard to the provisions of Section219(1)(b)(iv) of the said Act, the Annual Report excluding the aforesaid information is being sent toall the members of the Company and others entitled thereto. Any member interested in obtaining suchparticulars may write to the Company Secretary at the Registered Office of the Company.

9. CORPORATE SOCIAL RESPONSIBILITY

Since the Company has not yet started earning revenue from its operations, the Company has neitherdevised nor implemented any program towards social responsibility.

10. FINANCIAL STATEMENTS

The Financial Statements, as prepared in accordance with the Accounting Standards and guidelinesissued by Institute of Chartered Accountant of India, forms a part of the Annual Report of the Company.

11. AUDITORS & AUDITORS' REPORT

The Auditors, M/s. Shirish Desai & Co. (Firm Registration No. 112226W) hold office until the conclusionof ensuing Annual General Meeting and are eligible for re-appointment. The requisite certificateunder Section 141 of the Companies Act, 2013 has been received from M/s Shirish Desai & Co.expressing their willingness and eligibility to act as an Auditor, if reappointed. The Audit Committeeand the Board has recommended the reappointment of M/s. Shirish Desai & Co, as Statutory Auditorsof the Company.

The Independent Auditors' Report read with Notes to the Accounts referred therein, are self-explanatoryand, therefore, do not call for any further comments.

12. COST ACCOUNTS & AUDIT

In pursuance of the Ministry of Corporate Affairs Order No. F.No.52/26/CAB-2010dated 2nd May 2011, the Company had appointed M/s K L Jaisingh & Co., Practicing Cost Accountants,for conducting the Cost Audit of the Company for the Financial year 2013-14. The Cost Audit Reportwould be submitted to the Ministry of Corporate Affairs in due course.

The Cost Audit Report for the Financial Year 2012-13 has been submitted to the Ministry of CorporateAffairs, New Delhi.

13. INFORMATION PURSUANT TO CLAUSE 5A I & 5A II OF THE LISTING AGREEMENT

During the year under review, there were no shares issued pursuant to public issue or any other issuethat remained unclaimed and are lying in the escrow account. Further, there are no shares issued in


physical form pursuant to public issue or any other issue which remained unclaimed. Accordingly,clause 5AI & 5AII of the Listing Agreement is not applicable on the Company.

14. PUBLIC DEPOSITS

During the year under review, the Company did not accept any Public deposits within the meaning ofSection 58A of the Companies Act, 1956.

15. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS &OUTGOINGS

As required under Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosureof particulars in the Report of the Board of Directors) Rules 1988, a statement showing particularswith respect to conservation of energy, technology absorption and Foreign Exchange earnings andoutgoings is given in Annexure -I.

16. MANAGEMENT DISCUSSION & ANALYSIS AND CORPORATE GOVERNANCE REPORT

As required under clause 49 of the Listing Agreement, Management Discussion & Analysis andCorporate Governance Report form part of the Annual Report and are given as Annexure-II & Annexure-III, respectively.

17. HEALTH SAFETY & ENVIRONMENT (HSE)

There were regular meetings on HSE held at Baola & Modhera sites during the year. There was nountoward incident/accident and the operations were conducted safely. Due attention was given toenvironmental protection and regulation and all statutory approvals are in place in this regard.

18. ACKNOWLEDGEMENTS

The Board of Directors of the Company acknowledge with gratitude the co-operation and assistancereceived from the Central and State Government Authorities. Your Directors thank the Shareholders,Banks/other lenders, vendors and other business associates for their confidence in the Company andits management and look forward to their continued support. The Board wishes to place on record itsappreciation for the dedication and commitment of your Company's employees at all levels, which hascontinued to be our major strength. We look forward to their continued support in the future.

For and on behalf of the Board

Place : NOIDA VIJAY MISRADate : 13th August, 2014 Chairman


Annexure-I

INFORMATION AS PER SECTION 217(1)(e) READ WITH COMPANIES (DISCLOSURE OF PARTICULARS IN THEREPORT OF BOARD OF DIRECTORS) RULES, 1988 AND FORMING PART OF THE DIRECTORS REPORT FOR THEYEAR ENDED 31ST MARCH, 2014.

CONSERVATION OF ENERGY

(a) Energy conservation measures taken;Improvement in energy efficiency is a continuous process at Interlink and conservation of energy isgiven high priority in all its areas of operations as well as in other offices of the company.

(b) Additional investments and proposals, if any, being implemented for reduction of consumption ofenergy;Reduction in energy consumption measures include usage of energy efficient equipment, usage ofsystems in power saving mode, wherever appropriate, turning off the electrical equipment, when notin use.

(c) Impact of the measures at (a) and (b) for reduction of energy consumption and consequent impact onthe cost of production of goods; andThese measures have helped in bridging the gap between demand and supply, besides reduction ofelectricity bill amount.

(d) Form ANot Applicable.

TECHNOLOGY ABSORPTION

Efforts made in technology absorption as per Form-B of the Annexure in the Rules.

1. Research and Development(a) Specific areas in which R & D carried out by the Company:

None.

(b) Benefits derived as a result of above R & D:None.

(c) Future Plan of ActionThere is no plan for any R&D activity at present.


(d) Expenditure on R & D:(`)

i) Capital NILii) Recurring NILii i) Total NILiv) Total R & D expenditure as percentage of net sales NIL

2. Technology Absorption, adoption and innovation

(a) Efforts in brief, made towards technology absorption, adoption and innovationInternational Oilfield practices and latest technology are applied in areas of operation whichis yielding results to the expected level in addition to helping the company in overall resourceoptimization.

(b) Benefits derived as a result of the above effortsThis has benefited the company execution of petroleum operations without any time and costoverrun.

(c) In case of imported technology (Imported during the last 5 years reckoned from the beginningof the financial year) following information may be furnished(a) Technology imported(b) Year of import(c) Has technology been fully absorbed(d) If not fully absorbed, areas where this has not taken place, reason therefore

and future plans of actions:No specific technologies imported.

FOREIGN EXCHANGE EARNINGS AND OUTGO

A. Activities relating to export initiatives taken to increase exports, development of new export marketsfor products and services and export plans.Not applicable.

B. Total Foreign Exchange used and earnedThe Company's foreign exchange earnings during the year were ` Nil (Previous Year ` Nil). The totalforeign exchange utilized during the year amounted to ` 180.37 Lakhs(Previous Year ` 282.68 lakhs).Details of foreign exchange earned and utilized during the year are given in Note No. 21 of the Noteson the Financial Statement.


Place : NOIDA VIJAY MISRADate : 13th August, 2014 Chairman


Annexure-IIMANAGEMENT DISCUSSSION & ANALYSIS REPORT

INDUSTRY STRUCTURE & DEVELOPMENT

In midst of a global financial meltdown, BRIC countries, particularly India, have witnessed lower thanexpected economic growth in the last couple of years. Despite the slow growth rate, the demand for energyhas risen steadily and crude oil prices have accordingly risen, with Brent crude oil pricestaying mostlyabove US$105 per barrel during the period under review.

The recent occurrences in the Middle-East are expected to keep the crude oil price above US$110 per barrel.These high crude oil prices would make, otherwise expensive, deep water drilling financially viable andlucrative.

The dependence on the imported LNG has increased due to lower level of natural gas production andincrease in demand, in India. Owing to its high transportation and conversion costs, LNG is often categorizedas a regional product and accordingly its prices are geographically oriented. However with gas pricesreviving globally, reachingalmost US$5 per MMBTU, exploration and production of Natural Gas has alsobecome financially viable in both onshore and shallow water offshore projects. In India, a committee wasset up under the chairmanship of Dr. C Rangarajan to inter-alia review the domestic gas prices. It hasrecommended a new formula for determining the gas price that almost doubles the price of natural gasfrom its existing level of USD 4.2 per MMBtu (Million Metric British Thermal Units)to approx. USD 8 – USD8.5 per MMBtu. The same is currently being reviewed by the newly elected Government. It is expected,however, that despite the review the gas prices in India, market forces will push the Gas prices up to supportthe gas development projects and help in augmenting supplies to many starving power projects.

Recently with the technological advancements in exploration and production of hydrocarbons, extractionof Shale Oil & Gas has noticeably increased allowing countries to substantially increase their domestic Oil& Gas production. However, Hydraulic Fracking, the way by which Shale Oil and Gas are extracted, isenvironmentally unfriendly, thus a lot of countries are very cautious about Shale Oil and Gas extraction. Inview of the same, even the Indian Government is working towards evolving policies to develop Shale Oil andGas reserves.

The Government is also considering a Revenue Share Model instead of Cost Sharing Model for the newProduction Sharing Contracts for Oil & Gason the recommendations of the Committee set up under thechairmanship of Dr. C Rangarajan, which the industry considers to be more investor friendly.

OPPORTUNITIES AND CHALLENGES

During the period under review, the Company supplied approx. 80,000 scm of Natural Gas from its Baolafield, during the first quarter of the Financial Year. However the production from the field was suspendedonce again due to water ingress. Efforts are currently being made to revive the gas production, however, inview of the contingency in the production of gas, the Gas Supply Contract entered into by the company


during the last year was terminated at the request of the buyer. Further, the efforts to start commercialproduction of Oil from the Baola field met with limited success.

The production of heavy oil from Baola and Modhera field is technically and commercially challenging,however the Company believes that it has the technical competence to overcome the challenges.

The Company intends to do further work in Baola and Modhera fields, depending on the availability offunds with the Company.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE

The Company is present only in one segment i.e. exploration, development and production of oil and gasfields. During the period under review, the Company supplied limited quantity of Natural Gas from theBaola field in the first quarter of the Financial Year. However the same was stopped due to water ingress.Further, jobs will be carried on subject to the availability of funds.

The Company is also actively scouting to acquire Oil & Gas assets in and outside India, and is currentlyevaluating an opportunity overseas and has also initiated efforts to look into the possibility of raisingfunds forthe acquisition.

FUTURE OUTLOOK

Thepositive reserve assessment Report of Modhera field may support the future growth of the company.Subject to the availability of funds, theCompany is expecting to carry out hydro-fracturing in Modhera well#2 and is hopeful that it should be able to start hydrocarbon production in commercial quantities from thefield during the next year. Efforts will also be made to start commercial production of oil and gas from theBaola field if the planned work meets desired result. Further, if the targeted acquisition is successful, it isalso expected to improve the Company’s balance sheet strength.

RISKS & CONCERNS

The Company is engaged in Exploration and Production of oil and gas, which is subject to the following riskfactors:

Exploration risks (dry / low-producing wells, cost overruns) Development risks (blowouts, oil spills, fires, geological uncertainties, uncertainties in oil and

gas estimates ) Production risks (adverse field operating conditions, availability of transportation infrastructure) Funding Risk Fluctuations in oil and gas prices and demand Exchange rate fluctuations Reserve Replacement Risk Environmental risks Country risks (subject to government regulations relating to the oil and gas industry, government

approvals for the extension of the term of certain contract areas) Competition


However, the management takes all suitable measures and precautions in carrying out the operations inaccordance with the best available industry practices to ensure that all risks are properly identified. Thecompany has also put in place a risk management and mitigation plan in view of the same.

INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY

The Company has proper and adequate systems of internal control to ensure that assets are safeguardedand transactions are duly authorized, recorded and reported correctly.

The Internal Control system is further supplemented by Internal Audit, conducted by an independent firm ofChartered Accountant. The Audit Committee also reviews the adequacy & effectiveness of the Internal Auditfunction and takes corrective action(s), if required.

FINANCIAL AND OPERATIONAL PERFORMANCE

The details of the financial performance appear separately in the financial statements. For highlights,please refer to the Directors Report.

HUMAN RESOURCE

The Company enjoys the services of human resources highly committed towards the growth of the Company.The Company ensures the health & safety requirements of all concerned at its sites as well as offices. Thereis a unity of purpose among all the employees of the Company.

HEALTH, SAFETY AND ENVIRONMENT (HSE)

The management is aware of all the HSE issues that are relevant to the conduct of oil and gas operations.Hence enforces complete regard to the HSE and ensures all its personnel, contractors and others associatedwith the operations adhere to the Company’s HSE policies and norms to ensure safe and environmentallyfriendly operations. Due to this, the Company has thus far been successful in conducting its operationssafely.

CAUTIONARY STATEMENT

Certain statements in the Management Discussion & Analysis describing the company’s views about theIndustry’s expectations/predictions objectives etc. may be forward looking within the applicable laws andregulations. Actual results may differ materially from those expressed in the statements. Company’soperations may be affected with the demand and supply situations, input prices and their availability,changes in Government regulations, tax laws and other factors such as industrial relations and economicdevelopments etc. Investors should bear the above, in mind.


Place : NOIDA Vijay MisraDate : 13th August 2014 Chairman


Annexure-IIICORPORATE GOVERNANCE REPORT

Interlink Petroleum Limited (the Company), endeavors to exceed the standards of Corporate Governance,by adherence to the relevant codes of the best practice, principles of accountability, transparency andintegrity and ensuring that the company is managed in an efficient, responsible and ethical manner. TheCompany is committed to adopt the best global practices on Corporate Governance. The philosophy ofCorporate Governance as manifested in the Company's functioning is to achieve business excellence byenhancing long-term shareholders value and taking care of the interests of other stakeholders at large.

The Company's compliance of Corporate Governance guidelines of the listing agreement is as follows:

A. COMPOSITION OF THE BOARD AND RECORD OF OTHER DIRECTORSHIPS HELD

The Company is managed through the Board of Directors comprising of an optimum combination ofExecutive Director, Non-Executive, Non-independent Directors and Independent Directors. The chairmanof the Board is a Promoter Director. The present Strength of the Board of Directors is eight (8), ofwhich four (4) are Independent Directors. The Board of the Company consists of eminent persons withconsiderable professional expertise and experience. The Independent Directors do not have anypecuniary relationship or transactions with the Company, promoters, and/or management that mayaffect their independence or judgment in any manner.

The composition of the Board of Directors of the Company is in conformity with the provisions ofclause 49 of the listing agreement with the Stock Exchange. The structure of the Board and record ofdirectorships held, Committee memberships and chairmanships of the Directors as on 31st March,2014 is as under:

Name of the Director Category Designation No. of other Total No. of Chairmanships / ShareholdingDirectorships Memberships of Board (as on 31st

held Committees March 2014)

Chairmanship Membership Total

Mr. Vijay Misra Non- Executive Chairman 0 2 0 0 0 3 0 3 100000*Director(Promoter)

Mr. Gopal Srinivasan Executive Managing 0 0 0 0 0 0 0 0 NILDirector Director

Mr. Lee Chye Cheng Non- Executive Director 0 0 0 0 0 1 0 1 NILAdrian Director

(Promoter)

Mr. Arun Agarwal Independent Director 0 4 0 3 0 0 0 3 NILDirector


Mr. Lai Kai Independent Director 0 0 0 0 0 5 0 5 NILJin Michael Director

Dr. Ambrose Non-Executive Director 0 0 0 0 0 0 0 0 1900*Gerard Corray Director

Mr. Krishna Independent Director 0 8 0 0 0 0 0 0 NILKumar Nittala Director

Mr. Ajay Gupta Independent Director 0 0 0 0 0 1 0 1 NILDirector

* Held in own name.

NOTES:

I. The directorships held by Directors, as mentioned above, include alternate directorship, butdoes not include directorships of Foreign Companies, and directorship in Interlink PetroleumLtd.

II. In accordance with clause 49, Membership(s) / Chairmanship(s) of only the Audit Committeeand Shareholder Grievance Committee of all Companies (including Interlink Petroleum Limited)have been considered.

III. None of the Directors is a member of more than 10 Board level Committees of all the companiesin which they are directors, nor is a chairman of more than 5 such Committees.

B. BOARD MEETINGS

1. Scheduling and selection of agenda items for Board Meetings

The months in which the Board meetings are scheduled to be held in the ensuing financial yearare usually decided in advance and most of the Board Meetings are held at the Company'sCorporate Office at NOIDA, Uttar Pradesh-201301, India. The agenda for each meeting, alongwith explanatory notes, are usually sent in advance to the Directors. The Board meets at leastonce in a quarter to review the quarterly results and other items on the agenda.

2. Number of Board Meetings

The Board of the company met five times - on 23 rd May 2013, 2nd August 2013,23rd September 2013, 14th November 2013, and 5th February 2014 during the financial year ended31st March, 2014. The maximum time gap between any two meetings was not more than fourmonths.


3. Record of the Directors' attendance at Board Meetings held on during the FY 2013-14 and thelast AGM

Name of the Director Number of Board Meeting held Attendance at last during the tenure of directors AGM held on

and attended by them 23rd September, 2013Held Attended

Mr. Vijay Misra 5 5 PresentMr. Gopal Pallipuram Srinivasan 5 5 PresentMr. Lee Chye Cheng Adrian 5 3 PresentMr. Arun Agarwal 5 5 PresentMr. Lai Kai Jin Michael 5 0 AbsentDr. Ambrose Gerard Corray 5 4 PresentMr. Ajay Gupta 5 5 PresentMr. Krishna Kumar Nittala 5 3 Present

Note: i) Leave of absence was granted wherever required.

ii) Mr. Arun Kumar Agarwal, Chairman of the Audit Committee attended the last AnnualGeneral Meeting on behalf of the Audit Committee to answer the queries of theshareholders.

ii i) The Directors attending meeting by way of video conferencing are treated as present,however the directors attending the meeting by way of audio/teleconferencing are nottreated as present.

4. Availability of information to the Board

The Board has unfettered and complete access to all the information within the Company and toall the employees of the Company. Necessary information as mentioned in Annexure-1A of Clause49 of the listing Agreement is regularly placed before the Board for its consideration.

C. BOARD LEVEL COMMITTEES

In accordance with the listing agreement with the Stock Exchange on Corporate Governance, thefollowing Committees were in operation:

1. Audit Committee;2. Stakeholder Relationship Committee; and3. Nomination / Remuneration Committee.

Note : Other than the afore mentioned Committees, the Company also has Issuance and Transfer ofShare Committee (ITSCC), Finance Committee and Issue Committee.


1. AUDIT COMMITTEE

Terms of reference

As a measure of good Corporate Governance and to provide assistance to the Board of Directorsin fulfilling the Board's oversight responsibilities, an Audit Committee has been constituted,which currently consists of 4 non-executive directors out of which 3 are Independent Directors.All member of the Committee are financially literate and have the relevant experience in Oil &Gas Exploration & Production sector and/or finance sector. The Company Secretary acts as thesecretary of the committee.

The role and terms of reference of the Audit Committee inter-alia includes the following:

I. Role of the Audit Committee:

a) Overseeing the Company's financial reporting process and disclosure of its financial informationto ensure that the financial statements are correct, sufficient and credible.

b) Recommending the appointment, re-appointment, replacement and removal of the statutoryauditor (if required) and the fixation of audit fees to the Board and approving payment for anyother services.

c) Recommending appointment of Cost Auditor.

d) Reviewing, with the management, the quarterly as well as annual financial statements beforesubmission to the Board (or committee of directors -as applicable) for approval, with primaryfocus on matters required to be included in the Directors' Responsibility Statement, changes ifany in accounting policies and practices and reasons thereof, compliance with accountingstandards, major accounting entries involving estimates based on the exercise of the judgementby management, significant adjustments made in the financial statements arising out of auditfindings, qualifications in draft auditors' report, related party transactions & the going concernassumption.

e) Compliance with the listing and other legal requirements concerning financial statements.

f) Reviewing with the management, performance of statutory auditors, internal auditors andadequacy of internal control systems.

g) Reviewing with the management, the statement of uses/application of funds raised through anissue (public issue, rights issue, preferential issue, etc.), the statement of funds utilized forpurposes other than those stated in the offer document/prospectus/notice and the reportsubmitted by the monitoring agency (if so appointed) monitoring the utilisation of proceeds ofa public or rights issue, and making appropriate recommendations to the Board to take up thestep in this matter.

h) Reviewing the adequacy of internal control system and internal audit function including the


structure of internal audit department, staffing and seniority of official heading the department,reporting structure coverage and frequency of internal audit.

i) Reviewing of Company's financial and risk management policies.

j) Discussion with internal auditors, any significant findings and follow up thereon.

k) Reviewing the findings of any internal investigations by the internal auditors into matters,where there is suspected fraud or irregularity or a failure of internal control systems of amaterial nature and reporting the matter to the Board.

l) Reviewing reports furnished by internal auditors, discussion with internal auditors on anysignificant findings including Internal Control Weaknesses, if any, and ensuring suitable followup there on.

m) Discussion with statutory auditors before the audit commences, about the nature and scope ofaudit as well as post-audit discussion to ascertain any area of concern.

n) To look into the reasons for substantial defaults in the payment to the depositor, debentureholders, shareholders (in case of non-payment of declared dividends) and creditors (if any)

o) Reviewing of management discussion and analysis of financial condition and results ofoperations.

p) Reviewing of statement of significant related party transactions, submitted by management.

q) Reviewing of management letters / letters of internal control weaknesses issued by the statutoryauditors, if any.

r) Reviewing the appointment, removal and term of remuneration of internal auditor.

s) Scrutiny of inter-corporate loans and investments

t) Approval or any subsequent modification of transactions of the Company with related partytransactions.

II. Disclosures to the Audit Committee:

a) Compliance with Accounting Standards, and if in preparation of the financial statements, a treatmentdifferent from that prescribed in an Accounting standard has been followed, management explanationas to why it believes such alternative treatment is more representative of the true and fair view ofunderlying business transaction.

b) Money raised by way of issue (public issue, rights issue, preferential issues, etc.), the uses / applicationof funds by major category (capital expenditure, sales, working capital, etc.) on a quarterly basis as apart of their quarterly declaration of financial results.


Meetings and attendance during the year

The Audit Committee met five times - on 23 rd May 2013, 2nd August 2013,23rd September 2013, 14th November 2013 and 5th February 2014 during the financial yearending 31st March, 2014. The maximum gap between any two meetings was not more than fourmonths.

The composition of Audit Committee and attendance is as under: -

Names of the Members Designation in Status Number of AuditCommittee Committee Meetings

Held during the Attendedtenure of Directors

Mr. Arun Kumar Agarwal Chairman Non-Executive 5 5Independent Director

Mr. Vijay Misra Member Non-Executive 5 5Promoter Director

Mr. Lai Kai Jin Michael Member Non-Executive 5 0Independent Director

Mr. Ajay Gupta Member Non-Executive 5 5Independent Director

Note: Leave of absence was granted, wherever required.

2. STAKEHOLDERS' RELATIONSHIP COMMITTEE

This Committee was constituted specifically to review the compliances of rules and regulationsand to resolve the problems of shareholders'. The Stakeholders' Relationship Committee metfrom time to time during the previous year to improve procedure for resolving and grievances ofthe Shareholders.

Terms of reference

Terms of reference of the Stakeholders' Relationship Committee are as per the guidelines set outin the Companies Act, 2013 and listing agreement with the Stock Exchange which inter-aliaincludes looking into the investors complaints relating to non-receipt of Dividend /Change ofaddress / Bonus Shares / Transfer of Shares / Dematerialization of Shares / Non receipt ofAnnual Report etc.

Meetings and attendance during the year

The Stakeholders' Relationship Committee met four times- 23 rd May 2013,2nd August 2013, 14th November 2013 & 5th February 2014 during the financial year ending 31st

March, 2014.


The composition of Stakeholders' Relationship Committee and attendance is as under: -

Names of the Members Designation in Status Number of AuditCommittee Committee Meetings

Held during the Attendedtenure of Directors

Mr. Arun Kumar Agarwal Chairman Non-Executive 4 4Independent Director

Mr. Vijay Misra Member Non-Executive 4 4Promoter Director

Mr. Lai Kai Jin Michael Member Non-Executive 4 0Independent Director

Note: Leave of absence was granted, wherever required.

Compliance Officer

The Compliance Officer for this Committee, at present, is Mr. Parvinder Singh Arora, CompanySecretary of the Company.

SHAREHOLDERS' COMPLAINTS ETC. RECEIVED DURING THE FY- 2013-14

A total of 01 complaint were received during the year from 1 st April , 2013 to31st March, 2014 from Investors / Shareholders' relating to Transfer of Shares / Dematerializationof Shares / Annual Report / issue of duplicate shares etc. All complaints have been resolvedwithin the prescribed time limit.

3. NOMINATION &REMUNERATION COMMITTEE:

The Nomination and Remuneration Committee of the Company comprises of 3 IndependentDirectors (Mr. Krishna Kumar Nittala, Mr. Arun Agarwal and Mr. Lai Kai Jin Michael) and onepromoter Director viz (Mr. Lee Chye Cheng Adrian). The Committee is chaired by Mr. Arun Agarwal.The terms of reference and powers of the Nomination & Remuneration Committee are as per theapplicable laws. There was no meeting held during the FY ended 31st March 2014.

REMUNERATION POLICY

The Company pays sitting fee of ` 5000/- each for every Board meeting attended and ` 2500/-each for every Committee of Directors meeting attended to the Director/member. Sitting fees isnot paid to Executive Director(s).

REMUNERATION PAID TO NON-EXECUTIVE DIRECTORS

Following tables give the details of remuneration / sitting fees paid to directors, during the yearfrom 1st April 2013 to 31st March 2014:


Remuneration to Non-Executive Directors

Sl. No. Name of the Director Sitting Fees (`)

1 Mr. Vijay Misra 75000.00

2 Mr. Lee Chye Cheng Adrian# 0.00

3 Mr. Arun Agarwal 72500.00

4 Mr. Lai Kai Jin Michael 0.00

5 Dr. Ambrose Gerard Corray 20000.00

6 Mr. Krishna Kumar Nittala* 0.00

7 Mr. Ajay Gupta 37500.00

* Mr. Krishna Kumar Nittala has waived off his right to receive sitting fees for the Board andCommittee of Directors' meetings attended by him.

# During the year Mr. Lee Chye Cheng Adrian waived off his right to claim sitting fees for the BoardMeeting attended by him.

Remuneration to Executive Director

Name and Salary (Basic) Perquisites & Retiral Commission/ Total (`) StockDesignation allowances (`) benefits (`) Performance Options

Linkedincentive (`)

Mr. Gopal 1,01,51,000 30,94,578 Nil Nil 1,32,45,578 NilSrinivasan,Managing Director

Notes: 1) Mr. Gopal Pallipuram Srinivasan was appointed as Managing Director of the Company,w.e.f. 14th October 2011 for a period of three years. Earlier he was the Chief FinancialOfficer of the Company.

2) The remuneration mentioned above is remuneration paid to him in the capacity ofManaging Director only.

3) The tenure of office of the Managing Director is for a period of 3 years and can beterminated by either party by giving three months' notice in writing. There is no separateprovision for payment of severance fees.


D. GENERAL BODY MEETINGS

Details of the Annual General Meetings/ Extra Ordinary General Meetings held during previousthree years:

Year Date Place Time Special Resolution (if any)

2010-11 20/09/2011 Assam Association, Srimanta 10.30 AM None(AGM) Sankardeva Bhawan, A-14B,

Qutub Institutional Area,SatsangVihar Marg,New Delhi-110067

EGM 29/11/2011 Sports & Cultural Club, 225A, 11.00 AM Appointment of Mr. GopalSector-15A, NOIDA, Srinivasan, as the ManagingDistt. GautamBudh Nagar, Director.U.P. 201 301

2011-12 21/09/2012 Assam Association, Srimanta 10.00 AM None(AGM) SankardevaBhawan, A-14B,


2012-13 23/09/2013 Assam Association, Srimanta 10.30 AM None(AGM) SankardevaBhawan, A-14B,


EGM 06/07/2014 Sports & Cultural Club, 11:00 AM • Raising of funds225A, Sector-15A, NOIDA, • Borrowing powersDistt. GautamBudh Nagar, • Revision in remunerationU.P. 201 301 payable to Mr. Gaurav Misra,

Management Training• Appointment of Mr. Vijay Misra, as Consultant Business Development

E. DISCLOSURES:

1. Related Party Transactions: There have been no materially significant related partytransactions, pecuniary transactions or relationships between Interlink Petroleum Limitedand its Directors for the year ended March 31, 2014 except that have been indicated in noteNo. 22 of the Notes on Financial Statements for the year ended 31st March 2014.

2. Penalty: The Company has complied with the applicable requirements of Stock Exchangeand SEBI on matters related to Capital Markets. No penalty has been levied by Stock Exchangeor SEBI during the last three years.


3. Code of Conduct: The Securities and Exchange Board of India (SEBI) has over the yearsintroduced certain amendments to the Insider Trading Regulations of 1992. Pursuant to theabove requirements of SEBI (Prohibition of Insider Trading) Regulations, 1992 as amended,the Company has adopted a 'Code of Conduct for Prevention of Insider Trading'.The Code isapplicable to all Directors and such Designated Employees who are expected to have accessto unpublished price sensitive information relating to the Company. The Company Secretaryhas been appointed as the Compliance Officer for monitoring adherence to the saidRegulations.

4. Compliance with Mandatory requirements of clause 49 of the listing agreementThe Company has complied with each and every mandatory requirement of clause 49 of theListing Agreement. A declaration to this effect, duly signed by the CEO is annexed and formspart of the report.

5. Compliance with Non-Mandatory requirements of clause 49 of the listing agreementThe Company has complied with following non-mandatory requirements of clause 49 of theListing Agreement:- Nomination & Remuneration Committee: The Company has a Nomination &

Remuneration Committee as indicated earlier.- Audit Qualifications: There were no Comments on the accounts of the Company by the

Statutory Auditors.

6. The necessary certificate, pursuant to clause 49(V) of the listing agreement with StockExchange, is annexed to this Annual Report.

7. The Company Secretary has a key role to play in ensuring the Board procedures and statutorycompliances are properly followed.

8. Management Discussion and Analysis Report : The Management Discussion and Analysis isannexed to the Directors Report, forming part of the Annual Report.

9. Compliance Certificate from the Practicing Company Secretary: Certificate from the practicingCompany Secretary confirming compliance with conditions of Corporate Governance asstipulated in clause 49 of the listing agreement, is annexed to this report.

10. Other disclosures as required under clause 49 has been given at relevant places in theAnnual Report.

F. MEANS OF COMMUNICATION /INVESTORS' COMMUNICATION

(i) The Board of Directors of the Company approves the quarterly, half yearly and yearly financialresults in the format prescribed under Clause 41 of the Listing Agreement within statutory timeperiod specified in the listing agreement.


(ii) The approved financial results are forthwith sent to the Bombay Stock Exchanges and arepublished in a National English newspaper, in addition to being published in vernacular languagenewspaper, within forty-eight hours of approval thereof.

(iii) The Company's financial results and official news releases are also displayed on the Company'swebsite www.interlinkpetroleum.com.

(iv) Management Discussion and Analysis forms part of the Annual Report, which is sent to theshareholders of the Company.

G. INFORMATION TO SHAREHOLDERS

1. CORPORATE IDENTIFICATION NUMBER (CIN) : L23209DL1991PLC219214

2. REGISTERED OFFICE211A, 2nd Floor, Triveni Complex, E-10-12,Jawahar Park, Laxmi Nagar, New Delhi - 110 092.Phone:+91 11 32228364

3. ANNUAL GENERAL MEETING & RECORD / BOOK CLOSURE DATEThe date, time & venue of the next Annual General Meeting and the next Record/Book Closuredate will be as per the Notice calling the Annual General Meeting.

4. FINANCIAL CALENDARThe next Financial Year of the Company is 1st April, 2014 to 31st March, 2015 and tentativeschedule for approval of the quarterly / half yearly / yearly financial results is given below:

Particulars Month (Tentative)

Unaudited financial results for the 1st quarter ending June 30, 2014 August 2014

Unaudited financial results for the 2nd quarter and half year ending September 30, 2014 November 2014

Unaudited financial results for the 3rd quarter and nine months ending December 31, 2014 February 2015

Audited Financial results for the financial year ending March 31, 2015. May 2015

5. WEBSITEThe address of the Company's website is www.interlinkpetroleum.com.

6. DIVIDEND PAYMENT DATENot Applicable.

7. LISTING ON STOCK EXCHANGEThe Company is currently listed on the Bombay Stock Exchange Limited having a stock code526512.


8. INTERNATIONAL SECURITIES IDENTIFICATION NUMBER (ISIN)ISIN is a unique identification number of traded scrip. This number has to be quoted in eachtransaction relating to the dematerialised equity shares of the company. The ISIN number of theshares of Interlink Petroleum Limited is INE959G01016.

9. ANNUAL LISTING FEEAnnual Listing Fee for the year 2013-14 and 2014-15 has been paid to the above mentioned StockExchange. There are no arrears of listing fees till date.

10. DISTRIBUTION OF SHAREHOLDING AS ON MARCH 31, 2014Following tables gives the data on shareholding according to types of shareholders and class ofshareholders:

Distribution of the shareholdings according to type of shareholders

Particulars March 31, 2014 March 31, 2013No. of Shares % (Holding) No. of Shares % (Holding)

Promoters 1,33,46,100 53.55 1,33,46,100 53.55Institutional Investors 100 0.00* 100 0.00*Private Corporate bodies 4,95,472 1.99 7,68,583 3.08Foreign Companies 65,20,000 26.16 65,20,000 26.16Non-resident Indian (Non Repat 1,81,075 0.73 1,82,950 0.74& Repat)Clearing Member 30,418 0.12 13,730 0.06Others 43,48,035 17.45 40,89,737 16.41Total 2,49,21,200 100.00 2,49,21,200 100.00

*Less than 0.01%

Distribution of shareholding according to the number of shares:

No. of Equity March 31, 2014 March 31, 2013Shares held No. of % of No. of % of No. of % of No. of % of

Shareholders Shares Share Shareholders Shares Share capitalcapital

1-500 6557.00 84.96 15,37,459 6.17 6643.00 85.03 15,64,553 6.28501-1000 714.00 9.25 5,39,626 2.17 725.00 9.28 5,48,151 2.201001-2000 213.00 2.76 3,20,815 1.29 213.00 2.73 3,19,081 1.282001-3000 63.00 0.82 1,61,556 0.65 68.00 0.87 1,75,443 0.703001-4000 32.00 0.41 1,16,394 0.47 32.00 0.41 1,16,049 0.464001-5000 31.00 0.40 1,45,553 0.58 21.00 0.27 99,403 0.405001-10000 42.00 0.54 3,39,788 1.36 45.00 0.58 3,60,215 1.4510001 & above 66.00 0.86 2,17,60,009 87.31 65.00 0.83 2,17,38,305 87.23TOTAL 7718.00 100.00 2,49,21,200 100.00 7812.00 100.00 2,49,21,200 100.00


11. MARKET PRICE DATAMonthly high and low prices of equity shares of the Company traded at the Bombay StockExchange Limited are given below:

Month BSEHigh (`) Low (`)

Apr-13 26.70 20.20May-13 19.15 14.75Jun-13 24.35 17.40Jul-13 19.15 14.75Aug-13 18.00 13.65Sep-13 18.90 14.05Oct-13 16.25 12.25Nov-13 16.00 13.15Dec-13 14.05 12.00Jan-14 18.53 11.89Feb-14 16.20 11.95Mar-14 20.42 13.26

12. COMPANY'S SHARE PRICE MOVEMENT VIS A VIS BSE SENSEX

PRICE MOVEMENT

Historic Graph 01st April 2013- 31st March 2014


13. DEMATThe trading of Equity shares of your Company is in compulsory dematerialized mode. As on31st March, 2014, total 91.99% (i.e. 22924799/- Equity Shares) of the total equity share capitalwere held in dematerialised form.

The Company is regularly encouraging its shareholders holding shares in physical mode to converttheir holding in Physical form into Dematerialised form.

14. REGISTRAR AND SHARE TRANSFER AGENTS AND SHARE TRANSFER SYSTEMThe Company has appointed a common Registrar and Share Transfer Agent i .e.M/s. Link Intime (India) Private Limited for share transfer, transmission, dematerialisation andother requests pertaining to their shares. Their contact details are as follows:Link Intime (India) Private Limited44 Community Centre,2nd Floor, Naraina Industrial Area,Phase - I, Near PVR, Naraina, New DelhiDelhi - 110028

15. SITE LOCATIONSi) GCS Baola, Village-Salajda Tal Distt. Ahmedabad, Gujaratii) Modhera Block, Village-Modhera, Distt. Mehsana , Gujarat

16. ADDRESS FOR CORRESPONDENCEInvestors' Correspondence may be addressed to the following:Mr. Parvinder Singh Arora211A, 2nd Floor, Triveni Complex,E-10-11-12, Jawahar Park,Laxmi Nagar, New Delhi 110092E-mail: [email protected]: +91 120 4052211 ORTo the Registrar and Share Transfer Agent i.e. Link Intime (India) Private Limited(address mentioned earlier).


Place : NOIDA Vijay MisraDate : 13th August, 2014 Chairman


CERERTIFICATE PURSUANT TO CLAUSE 49(V) OF THE LISTING AGREEMENT

ToThe Board of DirectorsInterlink Petroleum Limited

I, the undersigned hereby certify that:

(a) I have reviewed the financial statements and the cash flow statement for the Financial Year2013-14 and to the best of our knowledge and belief:

(i) these statements do not contain any materially untrue statement or omit any materialfact or contain statements that might be misleading;

(ii) these statements together present a true and fair view of the Company's affairs and are incompliance with existing accounting standards, applicable laws and regulations.

(b) There are, to the best of our knowledge and belief, no transactions entered into by the companyduring the year 2013-14 which are fraudulent, illegal or violative of the Company's code ofconduct.

(c) I accept responsibility for establishing and maintaining internal controls for financialreportingand that I have evaluated the effectiveness of internal control systems of the company pertainingto financial reporting and I have disclosed to the auditors and the Audit Committee, deficienciesin the design or operation of such internal controls, if any, of which I am aware and the steps Ihave taken or propose to take to rectify these deficiencies.

(d) I have indicated to the auditors and the Audit Committee:

(i) Significant changes in internal control over financial reporting during the year;

(ii) that there were no significant changes in accounting policies during the year and the samehas been disclosed in the notes to the financial statements; and

(iii) that there was no instance of significant fraud of which I have become aware and theinvolvement therein of the management or an employee having a significant role in thecompany's internal control system over financial reporting.

Place: NOIDA Gopal SrinivasanDate: 28th May, 2014 Managing Director and Head Finan


CERTIFICATE OF PRACTICING COMPANY SECRETARY

We have examined the compliance of conditions of Corporate Governance by Interlink PetroleumLimited for the year ended on 31st March 2014 as stipulated in clause 49 of the listing agreement ofthe said Company with stock exchange.

The compliance of conditions of Corporate Governance is the responsibility of the management. Ourexamination was limited to procedures and implementation thereof, adopted by the Company forensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor anexpression of opinion on the financial statements of the company.

In our opinion and to the best of our information and according to the explanations given to us, wecertify that the Company has complied with the conditions of Corporate Governance as stipulated inthe above mentioned listing agreement.

We further state that such compliance is neither an assurance as to the future viability of theCompany nor the efficiency or effectiveness with which the management has conducted the affairs ofthe Company.

For K J & AssociatesPracticing Company Secretaries

(Rajesh Jha)Place: New Delhi PartnerDate: 13th August, 2014 CP - 5197

ANNEXURE TO THE CORPORATE GOVERNANCE REPORT

ToThe Board of DirectorsInterlink Petroleum Limited211A, Triveni Complex, E-10-12, Jawahar ParkLaxmi Nagar, New Delhi - 110092.

Annual Declaration of compliance of Code of Conduct by CEO

1. The Code of Conduct has been laid down for all the Board members and Senior Management andother employees of the Company.

2. The Code of conduct has been posted on website of the Company.

3. The Board members and senior management personnel have affirmed compliance with the codeof conduct for the year 2013-14.

Place : NOIDA Gopal SrinivasanDate : 13th August, 2014 Chief Executive Officer


INDEPENDENT AUDITORS' REPORT

To the Members ofINTERLINK PETROLEUM LIMITED.

Report on the Financial Statements

We have audited the accompanying financial statements of Interlink Petroleum Ltd. ('The Company'),which comprise the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss and the Cash FlowStatement of the Company for the year then ended, and a summary of significant accounting policies andother explanatory information.

Management's Responsibility for the Financial Statements

The Management is responsible for the preparation of these financial statements that give true and fairview of the financial position, financial performance and cash flow of the company in accordance with theAccounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act")read with General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs inrespect of section 133 of the Companies Act 2013. This responsibility includes the design, implementationand maintenance of internal control relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conductedour audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountantsof India. Those standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditor's judgment, including theassessment of the risks of material misstatement of the financial statements, whetherdue to fraud or error.In making those risk assessments, the auditor considers internal control relevant to the company'spreparation and fair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe Company's internal control. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the management, as well asevaluating the overall presentation of the financial statements. We believe that the audit evidence we haveobtained is sufficient an appropriate to provide a basis for our audit opinion.

Opinion


In our opinion and to the best of our information and according to the explanations given to us, thefinancial statements give the information required by the Act in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India;

a. In the case of the balance sheet, of the state of affairs of the Company as at March 31, 2014;

b. In the case of the statement of profit and loss, of the loss for the year ended on that date; and

c. In the case of the cash flow statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies(Auditor's Report) Order, 2003 ('the Order'), as amended, issued by theCentral Government of India in terms of sub-section (4A) of Section 227 of the Act, we give in the Annexurea statement on the matters specified in paragraphs 4 and 5 of the Order.

As required by section 227(3) of the Act, we report that:

i) We have obtained all the information and explanations, which to the best of our knowledge and beliefwere necessary for the purpose of our audit;

ii) In our opinion, proper books of account as required by law have been kept by the Company so far asappears from our examination of those books;

ii i) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report arein agreement with the books of account;

iv) In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply withthe Accounting Standards referredto in Sub-section(3C) of Section 211 of the Companies Act, 1956,read with General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs inrespect of section 133 of the Companies Act 2013; and

v) On the basis of the written representations received from the directors as on March 31, 2014 andtaken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014from being appointed as a director interms of clause (g) of subsection (1) of section 274 of theCompanies Act, 1956.

For, Shirish Desai & Co.Chartered Accountants

(Firm Registration No. 112226W)

Date : May 28, 2014 Dilip K. ThakkarPlace : NOIDA (Partner)

Membership No. 031269


ANNEXURE TO THE INDEPENDENT AUDITORS'REPORTIn our report to the member of Interlink Petroleum Limited ('the Company') for the year ended 31st March2014. We report that:

1. In respect of its fixed assets:

(a) The company has maintained Proper records showing full particulars, including quantitativedetails and situation of fixed assets.

(b) The Company has a programme of verification of fixed assets to cover all the assets during theyear, which, in our opinion, is reasonable having regard to the size of the company and thenature of its assets. Pursuant to the programme, certain fixed assets were physically verifiedby the Management during the year. According to the information and explanations given tous, no material discrepancies were noticed on such verification.

(c) Fixed Assets disposed off during the year were not substantial, and therefore, do not affect thegoing concern assumption.

2. In respect of its inventories:

(a) The Company is currently in the business of exploration and production of crude oil andnatural gas fromthe oil and/or gas field(s),which is supplied as and when they are extracted.There is no storage of crude oil or natural gas available and hence physical verification ofnatural gas stock is not applicable. However, stores and spare parts have been physicallyverified by the management at reasonable intervals during the year.

(b) In our opinion and according to the information and explanation given to us, the proceduresof physical verification of inventories followed by the management are reasonable andadequate in relation to the size of the Company and the nature of its business.

(c) In our opinion and according to the information and explanation given to us, the Companyhas maintainedproper records of its inventories and no material discrepancies noted onphysical verification.

3. (a) According to the information and explanations given to us, the company had taken loan fromone company, covered under register maintained under section 301 of the Companies Act, 1956.

i. The maximum amount outstanding during the year was ̀ 775.69 Lacs and the year end balanceof such loan amounted to `775.69 Lacs.

ii. In our Opinion, the rate of interest and other terms and conditions on which the loan havebeen taken from the company covered under register maintained under section 301 of the actare not, prima facie, prejudicial to the interest of the company.

iii. The principal and interest amount are repayable over a period of three to five years.

iv. There are no overdue amounts of more than rupees one lac in respect of loans taken from thecompany covered under register maintained under section 301 of the act

(b) The company has not granted loan to any companybut given deposit to one party covered inregister maintained under section 301 of the Companies Act 1956.

i. The maximum amount involved of deposit during the year was ̀ 330,000/- and yearend balanceof deposit granted to such party was `330,000/-.


ii. The deposit has been given are prima facie not prejudicial to the interest of the company anddeposit is receivable at the end of the lease period.

iii. The deposit given is receivable at the end of the lease period.

iv. There are no overdue amounts of more than Rupees one lac in respect of loan granted to thecompany covered in the register maintained under section 301 of the act.

4. In our opinion and according to the information and explanations given to us, there is an adequateinternal control system commensurate with the size of the Company and nature of its business forpurchase of inventory and fixed assets and for the sale of goods and services. During the course ofour audit, we have not observed any continuing failure to correct major weaknesses in internalcontrol system of the company.

5. (a) In our opinion and according to the information and the explanations given to us, thetransaction made in pursuance of contracts or arrangements, that needed to be entered intothe register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, for purchase ofservices made in pursuance of contracts or arrangements entered in to the Register in pursuanceof Section 301 of Act and exceeding the value of Rupees Five Lacs in respect of each party duringthe year, no comparison of prices could be made available as the services are of special nature.There were no purchase of goods and materials, and sale of goods, materials during the year.

6. According to the information and the explanations given to us, the Company has not accepted anydeposits within the meaning of Section: 58A and 58AA or any other relevant provisions of theCompanies Act, 1956.

7. In our opinion the internal audit functions carried out during the year by a firm of CharteredAccountants appointed by the management have been commensurate with the size of the Companyand nature of its business.

8. We have broadly reviewed the Cost record maintained by the company pursuant to the Companies(Cost Accounting Records) Rule, 2011prescribed by Central Government under section 209(1)(d) ofthe Companies Act, 1956 and are of the opinion that prima facie, the prescribed cost records havebeen maintained. We have however not made a detailed examination of the cost records with a viewto determine whether they are accurate or complete.

9. (a) According to the information and explanations given to us in respect of statutory and otherdueswe are informed that the provisions of Employees' Provident Fund Act & Employees' StateInsurance Act, 1948 are not applicable to the Company during the year. According to therecords of the Company, undisputed statutory dues including Investors' Education andProtection Fund, Income-tax, Sales-tax/ VAT, Wealth Tax, Custom Duty, Service Tax, Excise Duty,Cess, and other material statutory dues have been generally regularly deposited with theappropriate authorities. According to the information and explanations given to us, there isno undisputed amounts payable in respect of the aforesaid dues were outstanding as atMarch 31, 2014 for a period of more than six months from the date they become payable.

(b) According to information and explanations given to us, the following dues of income tax havenot been depositedas on March 31, 2014 of by the company on account of disputes


Name of the Statute Nature of the Dues Amount Period for which Forum where dispute` In Lacs amount Relates is Pending

Income Tax Act 1961 Income Tax and Interest 37.33 A.Y. 2009-10 CIT (appeals) VadodaraIncome Tax Act 1961 Income Tax and Interest 3.21 A.Y. 2010-11 CIT (appeals) VadodaraIncome Tax Act 1961 Income Tax and Interest 0.05 A.Y. 2011-12 ACIT Vadodara (U/s 154)

10. The accumulated losses of the Company are not more than fifty percent of its net worth. The companyhas incurred a cash loss of `140.21 Lacs during the financial year covered by our audit and in theimmediately preceding financial year the company had incurred cash Loss of `61.66 Lacs.

11. Based on our audit procedures and according to information and explanations given to us, we are ofthe opinion that the company has not defaulted in repayment of dues to financial institutions andbanks. The company has not issued any debentures till March 31, 2014.

12. In our opinion and according to the information and explanations given to us, the Company has notgranted loans and advances on the basis of security by way of pledge of shares, debentures andother securities.

13. In our opinion and according to the information and explanations given to us, the Company is not achit fund or a nidhi / mutual benefit fund/society.

14. In our opinion and according to the information and explanations given to us, the Company is notdealing in or trading in shares, securities, debentures and other investments.

15. According to the information and explanations given to us, the Company has not given any guaranteefor loans taken by others from banks or financial institutions.

16. In our opinion and according to the information and explanations given to us, the term loanshavebeen applied by the company during the year for the purpose for which they were obtained.

17. According to information and explanations given to us and on an overall examination of the balancesheet of the Company, we report that, no funds raised on a short term basis, have been used for longterm investment.

18. According to information and explanations given to us,the Company has not made any preferentialallotment of shares to parties and companies covered in the register maintained under Section 301of the Companies Act, 1956.

19. The Company has neither issued nor had any outstanding debentures during the year.

20. The Company has not raised any money by way of public issue during the year.

21. According to information and explanations given to us, no material fraud on or by the company hasbeen noticed or reported during the course of our audit.

For, Shirish Desai & Co.Chartered Accountants

(Firm Registration No. 112226W)

Date : May 28, 2014 Dilip K. ThakkarPlace : NOIDA (Partner)

Membership No. 031269


INTERLINK PETROLEUM LIMITEDBALANCE SHEET AS AT MARCH 31, 2014

Notes As At As At31-March-2014 (`) 31-March-2013 (`)

EQUITY AND LIABILITIESShare Holders' FundShare Capital 1 249,256,000 249,256,000Reserve & Surplus 2 105,029,339 119,779,576

354,285,339 369,035,576Non-Current LiabilitiesLong Term Borrowings 3 355,484,863 557,497,500Long Term Provisions 4 1,000,000 2,000,000

356,484,863 559,497,500Current LiabilitiesShort Term Borrowings 5 24,398,281 -Trade Payables 6 2,681,521 7,133,676Other Current Liabilities 7 266,454,765 3,392,050Short-Term Provisions 8 2,296,051 5,185,538

295,830,618 15,711,264Total 1,006,600,820 944,244,340

ASSETSNon-Current AssetsFixed Assets

- Tangible Assets 9(I) 20,182,812 20,257,972- Intangible Assets 9(I) 5,680,013 7,922,607- Capital Work-In-Progress 9(II) 29,119,686 30,058,745- Intangible Assets Under Development 9(II) 923,124,984 800,678,279

Long Term Loans and Advances 10 204,500 204,500978,311,995 859,122,103

Current AssetsInventories 11 13,456,539 15,273,644Cash and Cash Equivalents 12 8,287,714 63,285,883Short-Term Loans and Advances 13 1,681,967 2,017,196Other Current Assets 14 4,862,605 4,545,514

28,288,825 85,122,237Total 1,006,600,820 944,244,340

Significant Accounting Policies and the 1 to 27accompanying notes are an integralpart of Financial Statements

As Per Our Report of Even Date

For Shirish Desai & Co. For and On Behalf of the Board of DirectorsChartered Accountants(Firm Registration No: 112226W)

Dilip K. Thakkar Vijay Misra Gopal Srinivasan Parvinder Singh Arora(Partner) (Chairman) (Managing Director and (Company Secretary)Membership No: 031269 DIN: 00458031 Chief Financial Officer)

DIN: 02011557Place : NOIDADate : May 28, 2014


INTERLINK PETROLEUM LIMITEDSTATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED MARCH 31, 2014

Notes Year ended Year ended31-March-2014 (`) 31-March-2013 (`)

INCOME

Revenue from Operation 15 1,239,916 Nil

Other Income 16 3,137,160 3,455,209

Total Revenue 4,377,076 3,455,209

EXPENDITURE

Employee Benefits Expenses 17 5,962,256 3,017,506

Finance Costs 18 2,665,401 36,063

Depreciation & Amortisation Costs 19 728,943 401,752

Other Expenses 20 9,770,713 6,567,626

Total Expenses 19,127,313 10,022,947

Profit / (Loss) Before Tax (14,750,237) (6,567,738)

Tax Expense:

Current Tax - -

Deferred Tax - -

Profit / (Loss) for the year (14,750,237) (6,567,738)

Earning per equity share(Face value ̀ 10/- each)

Basic & Diluted 27 (0.59) (0.26)

Significant Accounting Policies and the 1 to 27

accompanying notes are an integral part of

Financial Statements






INTERLINK PETROLEUM LIMITEDCASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2014

Notes As At As At31-March-2014 (`) 31-March-2013 (`)

1. Cash Flows from Operating ActivitiesProfit before tax (14,750,237) (6,567,738)Adjustments to reconcile net profit before tax tocash provided by operating activities:Depreciation and amortization cost 728,943 401,752(Profit)/Loss on sale of Assets 25,365 471,487(Profit)/Loss on sale of Investments - 582Foreign exchange loss/(gain) 122,167 (22,981)Interest received (1,067,985) (3,403,993)Interest expenses 2,496,206 -Operating profit before working capital changes (12,445,541) (9,120,891)Change in trade and other receivables 18,138 786,054Change in inventories 1,817,105 (817,703)Change in trade payables/Other Liabilities 16,225,604 6,607,474Cash generated from operations (5,615,306) (2,545,066)Income taxes paid - -Net Cash Flow from Operating Activities (5,615,306) (2,545,066)

2. Cash Flows from Investing ActivitiesPurchase of property, plant and equipment (2,665,084) (2,521,133)Addition in exploration and evaluation Assets (117,869,452) (151,939,889)Proceeds from sale of property, plant and equipment 590,337 738,000Proceeds from sale of property, plant and equipment - 3,460Interest received 1,067,985 3,403,993Dividend received - -Net Cash Flow from Investing Activities (118,876,214) (150,315,569)

3. Cash Flows from Financing ActivitiesProceeds from issue of share capital - -Proceeds from long term borrowings (Note-3) 60,881,113 148,297,500Interest paid (2,496,206) -Foreign exchange (loss)/gain (122,167) 22,981Net Cash Flow from Financing Activities. 58,262,740 148,320,481

Net Increase/(Decrease) in Cash and Cash equivalents (54,998,169) (4,540,154)Cash and cash-equivalents at beginning of year. 63,285,883 67,826,038Cash and Cash-equivalents at end of year. 8,287,714 63,285,883

Notes:1. The above Cash Flow Statement has been prepared under the ‘Indirect Method’ as set out in Accounting Standard-3 on

“Cash flow statements”.2. Amounts in bracket indicate a cash outflow or reduction.3. Proceeds from Long term borrowings include exchange loss on ECB of `58,334,023 (Previous Year `27,742,500).4. Cash & Cash equivalent at end of year includes `1,850,000/- (Previous year `1,850,000/-)as lien with the banks.






SIGNIFICANT ACCOUNTING POLICIES

a) BASIS OF PREPARATION:

The financial statements of Interlink Petroleum Limited (the Company) are prepared under historicalcost convention and on accrual basis in accordance with Generally Accepted Accounting Principles inIndia ("GAAP"). GAAP comprises mandatory accounting standards and applicable guidance notes issuedby The Institute of Chartered Accountants of India as specified in the Companies (Accounting Standards)Rules, 2006 (as amended), the relevant provisions of the Companies Act, 1956 and guidelines issuedby the Securities and Exchange Board of India. The accounting policies, in all material respects, havebeen consistently applied by the Company and are consistent with those used in the previous year.

b) PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS:

During the year ended 31st March, 2014 the revised Schedule VI notified under the Companies Act,1956, has become applicable to the Company, for preparation and presentation of its financialstatements. Except accounting for dividend on investments in subsidiary companies, the adoption ofrevised Schedule VI does not impact recognition and measurement principles followed for preparationof financial statements. However, it has significant impact on presentation and disclosures made inthe financial statements. The Company has also reclassified the previous year figures in accordancewith the requirements applicable in the current year.

c) USE OF ESTIMATES:

The preparation of financial statements requires the management of the Company to make estimatesand assumptions that affect the reported balances of assets and liabilities and disclosures relating tocontingent liabilities on the date of the financial statements and the reported amounts of revenues andexpenses during the reporting period. Though management believes that the estimates used are prudentand reasonable, actual results could differ from these estimates. Difference between the actual resultsand estimates are recognised in the period in which the results are known / materialised.

d) FIXED ASSETS, DEPRECIATION AND AMORTISATION:

i. Tangible assets are stated at cost, less accumulated depreciation and impairment losses, if any.Cost comprises the purchase price and any attributable cost of bringing the asset to its workingcondition for its intended use. Borrowing and other financing costs including foreign exchangevariation relating to acquisition of fixed assets, which take a substantial period of time to getready for its intended use, are also included to the extent they relate to the period till such assetsare ready to be put to use.

ii. Intangible assets are recognized only if it is probable that the future economic benefits that areattributable to the asset will flow to the enterprise and the cost of the asset can be measuredreliably. The intangible assets are recorded at cost and are carried at cost less accumulatedamortization. Cost of intangible assets includes Borrowing and other financing costs includingforeign exchange variation that are attributable to development of such intangible assets.

iii. Depreciation on fixed assets is provided in accordance with the rates as specified in Schedule XIVto The Companies Act, 1956, on straight-line method, to at least 95% of the cost of the assets except


in respect of assets of value less than `5000 each, which are depreciated fully in the year ofacquisition. Depreciation is charged pro-rata on monthly basis on all other assets from/up to themonth of capitalization/sale, disposal and/or dismantle. Depreciation relating to assetsattributable directly to qualifying asset including prospecting, exploration and development of oiland gas are capitalized as a part of Intangible Assets Under Development or Producing Properties,as the case may be.

e) VALUATION OF INVENTORIES:

i. Natural Gas is extracted from field as and when supply of gas is to be made. So there is no storageof Natural Gas available and hence there is no stock of natural gas.

ii. The Closing Stock of Crude Oil in saleable condition is valued at Cost or Net Realizable Value lessestimated selling costs, whichever is lower.

iii. Stores and spares are valued at lower of cost or net realizable value.

f) PRELIMINARY EXPENSES:

Preliminary expenses in the nature of expenses for incorporation of the Company, public issue expensesand like expenses; are amortized over a period of five years.

g) EXPLORATION AND DEVELOPMENT COSTS:

i. The Company is following "Full Cost Method" for allocating all costs incurred in prospecting,exploring and development of oil and gas including related finance cost and depreciation, whichare accumulated, considering the country as a cost centre, as per the guidance note on Accountingfor Oil and Gas producing activities issued by the institute of Chartered Accountants of India.

ii. Exploration Costs involved in drilling and equipping exploratory and appraisal wells and cost ofdrilling exploratory type stratigraphic test wells are initially accounted for under the head CapitalWork In Progress/Intangible Assets Under Development and are capitalized as Producing Propertieswhen ready to commence commercial production.

iii. All Costs relating to development wells, development type stratigraphic test wells and servicewells are initially accounted for under the head Capital Work In Progress/Intangible Assets UnderDevelopment and are capitalized as Producing Properties when ready to commence commercialproduction.

iv. Producing Properties are depleted using 'Unit of Production' method based on estimated proveddeveloped reserves. Any changes in Reserves/Cost are dealt with prospectively. Hydrocarbonreserves are estimated by the Company following the International Reservoir Engineering Principlesand are approved by the appropriate authority(s).

h) IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS:

At each Balance Sheet date, the Company reviews the carrying amount of its assets to determinewhether there is any indication that those assets have suffered an impairment loss. If any suchindication exists, the recoverable amount of the asset is estimated in order to determine the extent ofimpairment loss and provide for impairment. Where the impairment loss subsequently reverses, the


carrying amount of the asset (cash generating unit) is increased to the revised estimate of its recoverableamount, but so that the increased carrying amount does not exceed the carrying amount that wouldhave been determined had no impairment loss been recognized for the asset in prior accounting periods.

i) INVESTMENTS:

Current investments are carried at the lower of cost and quoted / fair value. Long- term investments arestated at cost. Provision for diminution in the value of long-term investments is made only if such adecline is other than temporary in the opinion of the management.

j) RECOGNITION OF INCOME AND EXPENDITURE:

i. Revenue from sale of products is recognized on transfer of custody to customers Any difference asof the reporting date between the entitlement quantities minus the quantities sold in respect ofcrude oil (including condensate) and gas, if positive is treated as inventory and, if negative, isadjusted to revenue by recording the same as liability.

ii. Sales are inclusive of all statutory levies and taxes that are paid / payable to the government,based on the provisions under various laws and agreements governing Company's activities in therespective field/project.

iii. Any payment received in respect of short lifted gas quantity for which an obligation exists tosupply such gas in subsequent periods is recognized as Deferred Revenue in the year of receipt. Thesame is recognized as revenue in the year in which such gas is actually supplied for the quantitysupplied or in the year in which the obligation to supply such gas ceases, whichever is earlier.

iv. Revenue in respect of interest on delayed realizations is recognized when there is reasonablecertainty regarding ultimate collection.

v. All income and expenditure items that have material bearing on the financial statements arerecognized on accrual basis. However insurance claims are not accounted on accrual basis butare accounted for as and when received.

k) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

A provision is recognized when the Company has a present obligation as a result of past event and itis probable that an outflow of resources will be required to settle the obligation, in respect of which areliable estimate can be made based on technical evaluation and past experience. Provisions are notdiscounted to its present value and are determined based on management estimate required to settlethe obligation at the balance sheet date. These are reviewed at each balance sheet date and adjust toreflect the current management estimate.

ontingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neitherrecognized nor disclosed in the financial statements.

l) ACCOUNTING FOR TAXATION:

Income taxes are accounted for in accordance with Accounting Standard 22 AS "Accounting for Taxes onIncome" issued by the Institute of Chartered Accountants of India. Tax expense comprises both currentand deferred tax. Current tax is measured at the amount expected to be paid to / recovered from the taxauthorities using the applicable tax rates. Deferred tax assets and liabilities are recognized for future tax


consequences attributable to timing differences between taxable income and accounting income that arecapable of reversing in one or more subsequent periods and are measured using the relevant enacted taxrates. At each Balance Sheet date, the Company reassesses unrecognized deferred tax assets to the extentthey have become reasonably certain or virtually certain of realization, as the case may be.

m) BORROWING COSTS :

Borrowing costs include interest and commitment charges on borrowings, amortisation of costsincurred in connection with the arrangement of borrowings, exchange differences to the extent they areconsidered a substitute to the interest cost and finance charges under leases.

Borrowing costs that are attributable to the acquisition or construction of qualifying assets arecapitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantialperiod of time to get ready for intended use. All other borrowing costs are charged to revenue.

n) ACCOUNTING FOR EMPLOYEE BENEFITS:

i. Short term employee benefits are recognized in the year during which the services have beenrendered.

ii. The Company has no policy for leave encashment.

iii. Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarialvaluation under group gratuity scheme of Life Insurance Corporation of India at the end of eachfinancial year.

iv. All other post retirement benefits to employees are accounted on cash basis.

o) FOREIGN CURRENCY TRANSACTIONS:

i. Foreign currency transactions on initial recognition in the reporting currency are accounted for atthe exchange rates prevailing on the date of transaction.

ii. At each Balance Sheet date, foreign currency monetary items are translated using the average ofexchange rates prevailing on the balance sheet date and non-monetary items are translated usingthe exchange rate prevailing on the date of transaction or on the date when the fair value of suchitems are determined.

iii. Losses or gains relating to the loans/deferred credits utilized for acquisition of fixed assets areadjusted to the carrying cost of the relevant assets. All the other exchange differences arising onthe settlement of monetary items or on reporting of monetary items at the rates different from thoseat which they were initially recorded during the period, or reported in previous financial statementsare recognized as income or expenses in the period in which they arise.

p) SITE RESTORATION:

At the end of the producing life of a field, costs are incurred to restore the site back to its originalposition. The Company estimates, on a current basis, the cost (net of realisation) of site restorationand recognizes it as a liability and provides for the same. Such estimated cost of site restoration formpart of the intangible assets under developmentor cost of producing properties, as the case may be, ofthe related asset. Any change in the value of the estimated liability is reflected as an adjustment to theprovision and the corresponding intangible assets under development or producing property.


NOTES ON FINANCIAL STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014

The previous year figures have been regrouped / reclassified, wherever necessary to conform to the currentyear presentation.

NOTE 1: SHARE CAPITAL

As At 31-March-2014(`)


Authorised Shares: 30,000,000 (Previous year 30,000,000) Equity Shares of `10 Each Issued, subscribed and fully paid up shares: 24,921,200 ( Previous year 24,921,200) Equity Shares of `10 Each Add: Amount originally paid up on forfeited shares

Total Issued, subscribed and fully paid up share capital

300,000,000

249,212,000 44,000

249,256,000

300,000,000

249,212,000 44,000

249,256,000

Other Information:

a. Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

There is no change in the number of shares outstanding at the beginning and end of the financial year.

b. Terms/Rights attached to the Equity Shares

The Company has only one class of equity shares having a par value of `10/- per share, each holderof equity shares is entitled to one vote per share.

c. Shares held by holding/ultimate holding Company and/or their subsidiaries/associates

Out of equity shares issued by the Company, shares held by its holding Company, ultimate holdingCompany and their subsidiaries/associates are as below (Equity Shares of `10 each fully paid up):

Name Status Type As At 31-March-2014

As At 31-March-2013

Number Percentage Number Percentage

Loyz Oil Pte Limited Holding Company Equity 10,310,000 41.37 10,310,000 41.37

Loyz Energy Limited Ultimate Holding Company Equity 2,595,400 10.41 2,595,400 10.41

d. Details of Shareholders holding more than 5% shares in the Company

Equity shares of `10 each fully paid up:


Name As At 31-March-2014

As At 31-March-2013

Number Percentage Number Percentage Loyz Oil Pte Limited 10,310,000 41.37 10,310,000 41.37 Loyz Energy Limited 2,595,400 10.41 2,595,400 10.41 Rosewell Services Sdn Bhd 2,500,000 10.03 2,500,000 10.03 Upstream Petroleum Pte Limited 1,520,000 6.10 1,520,000 6.10 Harbour Sun Enterprises Limited 1,500,000 6.02 1,500,000 6.02

e. For the period of five years immediately preceding the date of the balance sheet :

Particulars Current Year

Previous Year

Aggregate number &class of shares allotted as fully paid up pursuant to contract(s) without consideration being received in cash.

Nil Nil

Aggregate number&class of shares allotted by way of bonus shares Nil Nil

Aggregate number& class of share bought back Nil Nil

NOTE 2: RESERVE & SURPLUS

NOTE 3: LONG-TERM BORROWINGS

As At 31-March-2014(̀ )


Securities Premium Account: Balance as per last financial statements At the close of the year Profit &Loss Account: Balance as per last financial statements Loss for the year Net Surplus/(Deficit) in the Profit & Loss Account

Total Reserves & Surplus

219,243,200 219,243,200

(99,463,624) (14,750,237)

(114,213,861) 105,029,339

219,243,200 219,243,200

(92,895,886) (6,567,738)

(99,463,624) 119,779,576

Non Current Portion Current Maturities As At

31-March -2014(`) As At

31-M arch-2013 (̀ ) As At

31-March-2014(`) As At

31-March-2013(`)

Unsecured - Term Loan Foreign currency loan from banks Foreign currency loan from Others Less: Other Current Liability

Total

277,916,250

77,568,613 Nil

355,484,863

489,510,000

67,987,500 Nil

557,497,500

262,893,750

Nil (262,893,750)

Nil

Nil Nil Nil Nil


a. Foreign Currency Loan - From Banks, is taken from DBS Bank, Singapore for which the security has beenprovided by M/s Jit Sun Investments Pte Ltd., a promoter group Company, detail of the ExternalCommercial Borrowings (ECB) are as follows:

I. During the financial year 2010-11 & 2011-12, the Company had drawn the ECB of US$ 8 Millionagainst the facility agreement entered in to with DBS Bank Ltd., Singapore which carries interest atLIBOR plus 275 basis points. The loan agreement is for tenure of 5 years with 2 years moratoriumfor repayment of the principal amount that is repayable in 8 equal quarterly installments startingfrom the 39th month from the month of withdrawal. Interest is, however, paid every quarter as itfalls due.

II. During the financial year 2012-13 the Company had drawn the ECB of US$ 1 Million against thefacility agreement entered in to with DBS Bank Ltd., Singapore which carries interest at LIBOR plus300 basis points. The loan agreement is for tenure of 4 years with 2 years moratorium for repaymentof the principal amount that is repayable in 8 equal quarterly installments starting from the 27th

month from the month of withdrawal. Interest is, however, paid every quarter as it falls due.

b. Foreign Currency Loan - From Others, is from Loyz Oil Pte Ltd, the Company's promoter shareholder,and it includes US$ 40,873.90 accrued interest upto 31st March 2014.

Foreign currency loan drawn during the financial year 2012-13 from Loyz Oil Pte Ltd of US$ 1.25Million, carries interest at LIBOR plus 300 basis points. The loan agreement is for tenure of 5 yearswith 3 year moratorium for repayment of the principal amount that is repayable in 8 equal quarterlyinstallments starting from the 39th month from the month of withdrawal. Interest payable shall startsaccruing with respect to outstanding amount from the date of draw down and interest for moratoriumperiod is payable in 8 equal quarterly installments starting from the 39th month from the month ofwithdrawal and other interest is payable every quarter as it falls

c. A part of the Long Term Borrowings that is due for repayment within twelve months from 31st March2014 amounting to ̀ 262,893,750/- (Previous Year ̀ Nil) has been transferred to Other Current Liabilities.The balance has been shown under the head "Long Term Borrowings".

d. The entire loan drawn till end of the year has been shown under the head "Long Term Borrowings"afteradjusting for the notional foreign exchange loss of `145,118,690/- (Previous year `86,662,500/-).

e. The loan, interest and effect of foreign exchange fluctuation have been dealt with in the books ofaccounts in accordance with Accounting Standards 11 & 16.

NOTE 4: LONG-TERM PROVISIONS

Non Current Portion Current Maturities As At

31-March-2014(̀ ) As At

31-March-2013(̀ ) As At

31-March-2014(̀ ) As At

31-March-2013(`)

Provision for Site Restoration Fund Total

Less : Shown under short term provisions Total

1,000,000 1,000,000

Nil 1,000,000

2,000,000 2,000,000

Nil 2,000,000

1,000,000 1,000,000 1,000,000

Nil

1,000,000 1,000,000 1,000,000

Nil


The Company has estimated a net amount of `5,000,000/- as liability towards site restoration of its oil &gas fields on a current basis. Of this, during the year, the Company had deposited `1,000,000/- (Previousyear `1,000,000/-) against the provision for site restoration fund (Baola & Modhera field) with State Bankof India under Site Restoration Fund Scheme,1999 as required under the Production Sharing Contracts forthe fields. The balance is reflected under Long/Short Term Provisions as applicable.

NOTE 5: SHORT TERM BORROWING

As At 31-Ma rch -2014(`)


Secured: Bank Over Draft Unsecured: Short Term Loan - Others

Total

9,398,281

15,000,000 24,398,281

Nil

Nil Nil

a. During the year, the Company had taken a overdraft facility of `25,520,800/- from Yes bank againstStand By Letter of Credit provided Loyz Oil Pte Ltd, the Company's promoter and had drawn an amountof `51,20,560/-. Further the Company had also availed overdraft against term deposit of `4,277,721/-against the fixed deposit of `7,400,000/-.

b. During the Year, the Company had also entered into a Short Term Loan agreement (unsecured) withM/s Blue Line Financial Service Pvt Ltd for an amount of `300 Lakhs at a interest of 14.25% per annum,interest will accrued on quarterly rest. The loan agreement is for tenure of 1 year and is repayabletogether with interest at the end of 1 year. The Company has an option to convert the outstandingamount into equity shares as per applicable laws after giving 30 days notice to the lender.

NOTE 6: TRADE PAYABLES



Trade payables for material, supplies & services Total

2,681,521 2,681,521

7,133,676 7,133,676

a. Trade payables include `Nil (Previous Year `Nil) due to Micro, Small and Medium Enterprises to theextent such parties have been identified by the management from available information.

b. The Company has not received any intimation from the 'suppliers' regarding their status under theMicro, Small and Medium Enterprises Development Act, 2006 and hence disclosures if any relating toamounts unpaid as at March 31, 2014 (Previous year as at March 31, 2013)together with interest paid/ payable as required under the said Act, have not been given.


NOTE 7: OTHER CURRENT LIABILITIES



Current maturities of long-term borrowings (note3) Interest accrued but not due Statutory liabilities Security Received

Total

262,893,750 2,611,488

699,527 250,000

266,454,765

Nil 2,428,109

963,941 Nil

3,392,050

a. Current maturities of long-term borrowings are payable within 12 months from March 31, 2014 as pernote no 3.

b. Interest accrued but not due is on external commercial borrowing as per Note 3 (Long Term Borrowings).

c. Statutory liabilities includes TDS payable for the month of March 2014 and service tax accrue but notdue as on March 31, 2014.

d. Security received from M/s Adani Gas Ltd for enhancement of electricity load and usage at Gas collectingstation

NOTE 8: SHORT-TERM PROVISIONS



Provision for Site Restoration Fund Employees Dues Other Provisions

Total

1,000,000 62,300

1,233,751 2,296,051

1,000,000 Nil

4,185,538 5,185,538

a. Provision for Site restoration fund (SRF) represents the current part of SRF due within 12 months fromMarch 31, 2014.

b. Provision towards employee benefits was Nil as the Company has obtained a policy under the groupgratuity scheme from Life Insurance Corporation of India against which there is no year-end liability.

c. Employee dues represents the amount payable as on March 31, 2014 in respect of an employee whohad resigned from the services of the Company as in March 2014 and as per Company policy the salaryfor severed employees is payable in the month following such severance. The amount has been paid inthe month of April 2014.

d. Other provisions represent the estimate for various expenses in the normal course of business.


NOTE 9(I): FIXED ASSETS (TANGIBLE & INTANGIBLE)

CURRENT YEAR

DESCRIPTION GROSS BLOCK (̀ ) DEPRECIATION / AMORTISATION (̀ ) NET BLOCK (̀ ) AS AT

01-04-2013 ADDITIONS DEDUCTIONS /

ADJUSTMENTS AS AT

31-03-2014 AS AT

01-04-2013 FOR THE

YEAR DEDUCTIONS / ADJUSTMENTS

AS AT 31-03-2014

AS AT 31-03-2014

AS AT 31-03-2013

TANGIBLE ASSETS BUILDING 4,861,290 - - 4,861,290 897,340 79,239 - 976,579 3,884,711 3,963,950

PLANT & MACHINERY 18,355,929 1,015,455 - 19,371,384 8,224,217 1,020,494 - 9,244,711 10,126,673 10,131,710

FURNITURE & FIXTURE 791,078 - - 791,078 160,390 50,075 - 210,466 580,612 630,689

OFFICE EQUIPMENTS 1,854,900 111,240 30500 1,935,640 275,963 142,565 163 418,365 1,517,275 1,578,936

COMPUTER 3,568,259 - - 3,568,259 1,149,438 578,415 - 1,727,852 1,840,406 2,418,821

VEHICLE 2,602,641 1,538,389 1,150,299 2,990,731 1,068,776 253,756 564,934 757,597 2,233,134 1,533,866

TOTAL 32,034,097 2,665,084 1,180,799 33,518,382 11,776,124 2,124,544 565,097 13,335,570 20,182,812 20,257,972

INTANGIBLE ASSETS SOFTWARE 11,212,971 - - 11,212,971 3,290,364 2,242,594 - 5,532,958 5,680,013 7,922,607

TOTAL 11,212,971 - - 11,212,971 3,290,364 2,242,594 - 5,532,958 5,680,013 7,922,607

PREVIOUS YEAR

DESCRIPTION GROSS BLOCK (̀ ) DEPRECIATION / AMORTISATION (`) NET BLOCK (̀ ) AS AT

01-04-2012 ADDITIONS DEDUCTIONS /

ADJUSTMENTS AS AT

31-03-2013 AS AT

01-04-2012 FOR THE

YEAR DEDUCTIONS / ADJUSTMENTS

AS AT 31-03-2013

AS AT 31-03-2013

AS AT 31-03-2012

TANGIBLE ASSETS BUILDING 4,718,652 142,638 - 4,861,290 818,439 78,901 - 897,340 3,963,950 3,900,213

PLANT & MACHINERY 16,722,377 1,633,531 - 18,355,928 7,298,047 926,171 - 8,224,218 10,131,710 9,424,330

FURNITURE & FIXTURE 962,619 95,151 266,691 791,079 160,806 60,129 60,545 160,390 630,689 801,813

OFFICE EQUIPMENTS 2,146,408 564,510 856,018 1,854,900 276,622 149,587 150,245 275,964 1,578,936 1,869,786

COMPUTER 3,482,976 85,283 - 3,568,259 580,862 568,576 - 1,149,438 2,418,821 2,902,114

VEHICLE 3,255,281 - 652,640 2,602,641 848,630 308,401 88,256 1,068,775 1,533,866 2,406,651

TOTAL 31,288,313 2,521,133 1,775,349 32,034,097 9,983,406 2,091,765 299,046 11,776,125 20,257,972 21,304,907

INTANGIBLE ASSETS SOFTWARE 11,212,971 - - 11,212,971 1,047,770 2,242,594 - 3,290,364 7,922,607 10,165,201

TOTAL 11,212,971 - - 11,212,971 1,047,770 2,242,594 - 3,290,364 7,922,607 10,165,201

Note: 1. Since Baola field Production rights (Gross amount `1,535,000/-) have been fully amortised, the same is notreflected in the above table.

2. The Company has no independent Cash Generating Units (CGU) in the above assets and hence no impairmenttest has been carried out.


NOTE 9(II): WORK-IN-PROGRESS & INTANGIBLE ASSETS UNDER DEVELOPMENT

DESCRIPTION AS AT 01-04-2013

ADDITION TRANSFER TO ASSETS

Unsuccessful / Adjustments

AS AT 31-03-2014

EXPLORATORY WORK IN PROGRESS 29,119,686 - - - 29,119,686 OTHER ASSETS – WORK IN PROGRESS 939,059 - 939,059 - - TOTAL (A) 29,119,686 - - - 29,119,686

EXPLANATORY - INTANGIBLE ASSETS UNDER DEVELOPMENT

798,415,708 124,936,121 - 226,845 923,124,984

OTHERS - INTANGIBLE ASSETS UNDER DEVELOPMENT 2,262,571 2,272,750 4,535,321 -

TOTAL (B) 800,678,279 127,208,871 - 4,762,166 923,124,984

GRAND TOTAL (A+B) 830,737,024 127,208,871 939,059 4,762,166 952,244,670

PREVIOUS YEAR 674,601,755 157,125,188 989,919 - 830,737,024

a. As per Significant Accounting Policy (g), the Company, during the year, has capitalized as a part of

"Capital Work-in-Progress/Intangible Assets Under Development", an amount of `124,936,121/-(Previous year `153,923,558/-), being the expenses incurred in the appraisal/development of two oil/gas fields viz. Baola and Modhera.

b. The amount will be transferred to "Producing Property" as and when the underlying fields are ready forcommencement of commercial production.

c. The above includes Borrowing cost (net of adjustment arising from interest earned on temporary cashsurplus from External Commercial Borrowing) amounting to `16,488,246/- (Previous year ̀ 2,582,861).

d. As per Significant Accounting policies (o)(iii), foreign exchange fluctuation of `58,456,190/- (Previousyear `27,742,500/-) pertaining to principal and interest amount of loan has been capitalized andincluded in Intangible Assets Under Development.

e. As the oil and gas fields are still under appraisal, no impairment test has been carried out.

NOTE 10: LONG TERM LOANS AND ADVANCES



Security Deposit Secured, Considered Good

Total

204,500 204,500

204,500 204,500

The security deposit is towards mining lease for Baola and Modhera fields and for telephone, which aredeposited for a period more than 12 months. The management believes that these are fully realizable in thenormal course of business.


NOTE 11: INVENTORIES



Stores and spares Total

13,456,539 13,456,539

15,273,644 15,273,644

Stores and spares represent balance lying in stock from the items procured for operations in Baola andModhera and are stated at cost, the management believes that the realizable value of these stores andspares are not less than its cost.

NOTE 12: CASH AND CASH EQUIVALANTS



Cash on hand Balances with banks - in current accounts - in deposit accounts exceeding 12 months maturity - in margin money, security for guarantees and other commitments - in bank deposit accounts Cheques, drafts on hand Interest accrued on deposits

Total

11,188

294,866 -

1,850,000 5,550,000

- 581,660

8,287,714

18,977

4,325,406 -

1,850,000 55,150,000

- 1,941,499

63,285,883

a. The Company has submitted bank guarantee worth `1,850,000/-(Previous year `1,850,000/-) toGovernment of India towards 10% of the annual budget for the year 2013-14, as required under theProduction Sharing Contract for Modhera Field. The cumulative bank guarantee outstanding as onMarch 31, 2014 is ̀ 1,850,000/- (Previous year ̀ 1,850,000/-) towards which the Company has provideda lien on Term Deposits with bank worth `1,850,000/- (Previous year `1,850,000/-).

b. The Company has availed overdraft facility against other deposit accounts as detail mentioned in note 5.

NOTE 13: SHORT TERM LOANS AND ADVANCES



Deposits to related parties Deposits - Others Capital advances (Secured, considered good) Loans and advances to employees Pre paid expenses Less: Provision for doubtful advances

Total

330,000 50,000

412 5,187

1,296,368 -

1,681,967

330,000 65,000

462,607 3,916

1,155,673 -

2,017,196


a. In the opinion of management, the current assets including loans, advances, deposits etc, is fullyrealizable in the normal course of business.

b. The balances of loan & advances as appearing above are fully confirmed.

NOTE 14: OTHER CURRENT ASSETS



Balance with the Govt. Authorities Insurance claim Receivable Preliminary expenses to the extent not written off

Total

4,862,605 - -

4,862,605

4,335,506 100,000 110,008

4,545,514

Balance with government authorities represents VAT, Advance tax resulting from tax deducted at source oninterest earned during the year and service tax receivable that is fully adjustable against future liability.

NOTE 15: REVENUE FROM OPERATIONS

Year Ended 31-March-2014(`)

Year Ended 31-March-2013(̀ )

Sale of Gas Total

1,239,916 1,239,916

Nil Nil

During the year, the Company produced and supplied 80,513.92 cubic meters of natural gas from the Baolafield. The Sale of Gas represents the amount realised for such supplies including royalty.

NOTE 16: OTHER INCOME



Interest on Short term bank deposits Other Income

Total

1,067,985 2,069,175 3,137,160

3,403,993 51,216

3,455,209

a. Interest on short term bank deposits represents interest earned on deposit from Company's own funds.

b. The interest earned, on short term bank deposit made from temporary cash surplus out of ExternalCommercial Borrowings (ECB), during the year amounting to ̀ 975,068/- (Previous year `1,560,883/-) hasbeen adjusted in Intangible Assets Under Development as per Accounting Standard 16 and is notincluded above {Refer Note 9 II}.

c. Other Income includes amount of `2,068,305/-(Previous year`Nil) received towards technical servicesprovided by the Company to others during the year.


NOTE 17: EMPLOYEE BENEFITS EXPENSES



Salaries and wages Staff welfare expenses Remuneration to whole time directors

Total

4,570,164 71,496

1,320,596 5,962,256

1,682,246 18,841

1,316,419 3,017,506

a. Salaries and wages include payment for gratuity to Life Insurance Corporation of India.

b. The gross employee benefits expenses during the year is `27,896,537(Previous year `28,421,968), ofwhich an amount of `21,934,281(Previous year `25,404,462) was capitalize as a part of "intangibleassets under development" {Refer Note 9(II)} as per accounting policy {Refer policy (g)} being theamount spend towards appraisal and development of the oil & gas fields.

NOTE 18: FINANCE COST



Bank charges Interest & Other Finance Expenses Net (gain) / loss on foreign currency transaction

Total

47,028 2,496,206

122,167 2,665,401

59,044 -

(22,981) 36,063

The above finance cost does not include an amount of `21,024,144/- (Previous year 18,049,129/-) incurredtowards interest on External Commercial Borrowings (ECB) as the same has been capitalized {after adjustinginterest earned on temporary cash surplus from External Commercial Borrowing of `975,068/- (Previousyear ̀ 1,560,883/-)} as a part of "intangible assets under development" {refer note 9(II)} in terms of AccountingStandards -16, as the ECB was taken for the appraisal and development of oil & gas fields.

NOTE 19: DEPRECIATION & AMORTISATION COST



Depreciation of Tangible Assets Depletion Amortisation of Intangible Assets

Total Less : Capitalised as a part of Intangible assets under

development Net transferred to Profit and Loss account Preliminary Expenses Written Off.

Total

2,008,400 226,845

2,052,127 4,287,372 3,668,437

618,935 110,008 728,943

2,091,765 -

2,242,594 4,334,359 4,261,083

73,276

328,476 401,752


NOTE 20: OTHER EXPENSES



Advertisement Expenses AGM, EGM & Other Meeting Expenses Auditor's Remuneration - For audit fees - For other services Balance Written off Business Development Expenses Consumables Conveyance Expenses Director Sitting fees Guest House Related Expenses Insurance Expenses Interest on delay payment of taxes Loss on sale of Fixed Assets Loss on Sale of Investments Legal & Professional Expenses Membership & Subscription charges Office Expenses Postage & Courier Expenses Power & Fuel Printing & Stationery Expenses Production Bonus to ONGC Royalty

71,222 339,395

50,562 52,809

- 4,594,937

14,111 5,847

219,596 -

73,041 1,221

25,365 -

942,801 36,620 52,835 40,166 39,217 35,902

236,711 112,720

90,073 353,742

50,562 84,461

415,699 1,116,121

- 4,659

295,057 93,261 44,077

1,611 471,487

582 884,886

28,780 63,443

6,220 14,712 28,323

- - Royalty

Repair & Maintenance Expenses - Production Rent Rates & Taxes Repair & Maintenance ROC Expenses Short & Excess Security Service Telecommunication Expenses Travelling Expenses (Including Foreign Travelling) Vehicle Expenses (Including Insurance)

Total

112,720 26,941

546,580 131,702 179,776

(7) 82,040

133,196 1,468,258

257,149 9,770,713

- -

241,192 24,146

180,714 1 -

73,493 1,899,606

100,718 6,567,626

The gross other expenses incurred during the year is `22,313,018/- (Previous Year `22,492,376/-), of which an amount of`12,542,305 (Previous Year `15,924,750) was capitalize as a part of "Intangible assets under development" as per accountingpolicy {refer policy (g)} being the amount spend towards appraisal and development of the oil & gas fields.


NOTE 21:Additional information pursuant to paragraph 3 and 4 of Part II of Schedule VI of the

NOTE 22: RELATED PARTY DISCLOSURE

As per Accounting Standard 18, the disclosures of transactions with the related parties are given below:

i. List of related parties where control exists and related parties with whom transactions have takenplaceand relationships:

Sl No. Name of Related Party Relationship

1 Loyz Energy Limited

Group Companies

2 Jit Sun Investments Pte Limited

3 Loyz Oil Pte Limited

4 Interlink Petroleum Pte Ltd.

5 Gopal Pallipuram Srinivasan Key Managerial Personnel

6 Vijay Misra Directors & Relatives

7 Sushila Devi

Particulars 2013-14 ( )̀ 2012-13 (`)

Expenditure in foreign currency: Purchase of Stores & Consumables

Foreign Travelling Costs Purchase of Capital Goods Paid for Consultancy & Others Total

Nil

103,242 Nil

17,933,666

18,036,908

732,463

Nil 507,303

27,027,955

28,267,721

Earnings in foreign currency Nil Nil Value of import on CIF bas is in respect of: Store Spares

Capital Goods Total

Nil

Nil

Nil

732,463

507,303

1,239,766 Payment to auditors: Audit fees Tax Audit Fees Other Services Total

39,326 11,236 52,809

103,371

39,326 11,236 84,461

135,231


ii. Transaction during the year with related parties.

Nature of Transaction 2013-14 (`) 2012-13(̀ )

Lease rent for office premises Sushila Devi

1,801,483

1,756,920

Deposit for lease of office premises Sushila Devi

330,000

330,000

Managing Director Remuneration Gopal Pallipuram Srinivasan

13,205,978

13,050,807

Investment/Loans to Subsidiary

Interlink Petroleum Pte Ltd.

Nil

75,965 Loans taken outstanding

Loyz Oil Pte Ltd. Interest on loans taken

Loyz Oil Pte Ltd.

Nil

2,424,923

6,68,37,500

Nil

NOTE 23: CONTINGENT LIABILITIES & COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

i. Contingent liabilities amounting to `8 Lacs towards legal case filed by Mr. VinayakRao S Desai againstthe companybefore the AhmadabadHigh Court has not been acknowledged by the Company as theCompany expects the verdict in its favor.

ii. The Income-Tax assessments of the Company have been completed up to the Assessment Year 2011-12(in previous Year up to 2010-11). Demand has been raised of `40.58 Lacs (Previous Year: `11.38 Lacs)up to the said Assessment Year, against which the company has filed appeal before Appellate authority.The demand of `40.58 lacs are new demands. The Company has filed an appeal with CIT (Appeals),Vadodara and is confident of getting the appeal in its favor as advised by the Company's Tax Consultant.Hence, no provisionhas been made. The demand of `11.38 lacs outstanding in the previous year havebeen rectified and withdrawn.

NOTE 24:The Company is engaged in extraction of crude oil and natural gas only and therefore there is only onereportable segment in accordance with Accounting Standard 17 on Segment Reporting.

NOTE 25:The Company has substantial carried forward losses and unabsorbed depreciation. Hence, there is nodeferred tax liability arising at the end of the current year. Further, in view of the absence of virtual certaintyof realization of carried forward tax losses, the Company has not created any deferred tax asset as envisagedin Accounting Standard-22 on Taxes of Income issued by The Institute of Chartered Accountants of India.


NOTE 26:a. Value of Raw Materials Consumed: NILb. Value of Store & Spares Consumed:

2013-14 2012-13 Value (`) % Value (`) %

Imported 150,467 3.88 1,035,671 10.85 Indigenous 3,730,077 96.12 8,505,948 89.15

Total 3,880,544 100.00 9,541,619 100.00

NOTE 27: EARNINGS PER SHARE (EPS)

As At March 31,2014(`)

As At March31,2013(`)

Profit / (Loss) after tax

Net Profit / (Loss) for calculation of basic EPS

Number of equity shares

Number of equity sharesfor calculation of basic EPS

Earnings Per Share (EPS)

(14,750,237)

(14,750,237)

24,921,200

24,921,200

(0.59)

(6,567,738)

(6,567,738)

24,921,200

24,921,200

(0.26)




DIN: 02011557

Place : NOIDADate : May 28, 2014


INTERLINK PETROLEUM LIMITED

Registered Office: 211A 2nd Floor, Triveni Complex, E-10-12, Jawahar Park,Laxmi Nagar, New Delhi-11092

(Corporate Identity No. L23209DL1991PLC219214)

ATTENDANCE SLIP

ANNUAL GENERAL MEETING - WEDNESDAY, 24TH SEPTEMBER 2014 AT 11:00 A.M.

DP ID*. Name & Address of theRegistered Shareholder

Client Id*/Regd. Folio No.

No. of Shares held

I certify that I am a registered shareholder/proxy for the registered shareholder of theCompany.

I hereby record my presence at the 23RD ANNUAL GENERAL MEETING of the Companybeing held on Wednesday, the 24th September 2014 at Assam Association, SrimantaSankardeva Bhawan, A-14B, Qutub Institutional Area, Satsang Vihar Marg, New Delhi-110067.

…………………………………Member's/Proxy's Signature

Note: Please complete this and hand it over at the entrance of the hall.


Form No. MGT-11

PROXY FORM[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies (Management andAdministration) Rules, 2014]

CIN L23209DL1991PLC219214Name of the Company Interlink Petroleum LimitedRegistered off ice 211A 2nd Floor, Triveni Complex, E-10-12, Jawahar Park, Laxmi Nagar, ND-11092Name of the Member(s)Registered addressEmail IDFolio No./Client ID*DP ID*

I/We, being the member (s) of .............................................. shares of the above named company, hereby appoint

1. NameAddressE-mail Id Signatureor failing him



as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the Annual General Meeting of the Company, to beheld on Wednesday, 24th September, 2014 at 11:00 A.M. at Assam Association, Srimanta Sankardeva Bhawan, A-14B, Qutub InstitutionalArea, Satsang Vihar Marg, New Delhi-110067 and at any adjournment thereof in respect of such resolutions as are indicated below:** I wish my above proxy to Vote in the Manner as indicated in the box below:-

Ordinary Business1. To receive, consider and adopt the financial statements of the Company as on 31st March 2014 together with the Reports of

the Board of Directors and the Auditors’ thereon.2. Non-appointment of Director.3. Re-appointment of Mr. Vijay Misra as a Director liable to retire by rotation.4. Appointment of M/s.Shirish Desai & Co., Chartered Accountants, Vadodara, as the Statutory Auditors of the Company.

Special Business5. Remuneration to be paid to M/s. K. L. Jaisingh & Co., Cost Accountants, Cost Auditor of the Company.6. Leasing of Office (Related Party Transaction).7. Inter-corporate Loan & Investment.

Signed this 24th day of September 2014.

Signature of shareholder : _________________________________

Signature of Proxy holder(s) : ______________________________

Note: This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of theCompany, not less than 48 hours before the commencement of the Meeting.

AffixRevenue

Stamp

Annual Report, 2014 - Bombay Stock Exchange“RESOLVED THAT the Company do take on lease the office...

Documents

Transcript of Annual Report, 2014 - Bombay Stock Exchange“RESOLVED THAT the Company do take on lease the office...