DEEP INDUSTRIES LIMITED rd

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2 rd 23 Annual Report BOARD OF DIRECTORS Mr. Paras S. Savla Mr. Rupesh K. Savla Mr. Dharen S. Savla Mr. Premsingh Sawhney Mr. Vijay R. Shah Mr. Harish G. Bhinde Mr. Ajay Kumar Singhania Mr. Kirit Joshi Chairman & Managing Director Managing Director Executive Director Executive Director Independent Director Independent Director Independent Director Independent Director BANKERS State Bank of India Axis Bank Ltd. Bank of Baroda HDFC Bank Ltd. Deutsche Bank IDBI Bank Ltd Exim Bank AUDITORS M/s. Jayesh M. Shah & Co. Chartered Accountants SHARE TRANSFER AGENT Link Intime India Private Limited rd 303, 3 Floor, Shoppers Plaza V, Opp. Municpal Market, Off C G Road, Ahmedabad REGISTERED OFFICE Opp. Suryanarayan Bunglows, Sabarmati-Kalol State Highway, Motera, Ahmedabad CORPORATE OFFICE 6 Floor, Aron Tower, Opp. Fun Republic Cinema, S. G. Highway, Ahmedabad C O N T E N T S Notice 2-3 Directors Report 4-6 Management Discussion and Analysis 7-9 Corporate Governance Report Independent Auditors Report Balance Sheet 20 Profit & Loss Account 21 Cash flow Statement 22 Notes forming part of Accounts Statement Under Section Consolidated Independent Auditors Report 38 Consolidated Financial Statements

3 NOTICE ANNUAL REPORT NOTICE is hereby given at e Twenty-Third Annual General Meeting of e members of Deep Induries Limited will be held on Thursday, e 19 September, 2013 at A.M at Conference Room, GCA Club House, Sardar Patel Stadium, Motera, Ahmedabad, Gujarat to transact e following business: ORDINARY BUSINESS: 1. To receive, consider and adopt Audited Balance Sheet as on 31 March, 2013 and Profit and Loss Account for e year ended on at date and e Reports of e Board of Directors and Auditors ereon. 2. To appoint a Director in place of Mr. Vijaykumar R. Shah who retires by rotation and being eligible offers himself for re appointment. 3. To appoint a Director in place of Mr. Dharen S. Savla who retires by rotation and being eligible offers himself for reappointment. 4. To appoint Auditors who shall hold office from e conclusion of is Annual General Meeting until e conclusion of next Annual General Meeting and to auorise e Board of Directors of e Company to fix eir remuneration. 5. To declare dividend on Equity Shares. By Order of Board of Directors Date: Place : Ahmedabad PARAS SAVLA Chairman & Managing Director NOTES: 1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE ANNUAL GENERAL MEETING IS ENTITLED TO APPOINT ONE OR MORE PROXIES TO ATTEND AND VOTE INSTEAD OF HIMSELF AND SUCH PROXY NEED NOT BE A MEMBER OF THE COMPANY. The inrument appointing proxy should however, be deposited at e regiered office of e company not later an 48 hours before e commencement of e meeting. 2. Corporate Members intending to send eir auorised representative(s) to attend e Meeting are requeed to send e proxies which mu be supported by a certified copy of e Board Resolution auorizing eir representative to attend and vote on eir behalf at e Meeting. 3. The Regier of Members and Share Transfer Book of e Company will remain closed from 14 September, 2013 to 19 September, 2013 (bo days inclusive). 4. Members holding shares in physical form are advised to update e change in particulars of bank accountant by sending necessary information to e Regirar and Share Transfer Agent (RTA) of e Company on or before 13 September, 2013 if not done already as dividend shall be paid/credited to e updated bank particulars available wi e RTA by e above said date. Members holding shares in dematerialized form are advised to update e particulars of eir bank accounts wi eir depository participants on or before 13 September, 2013 as e same will be considered by e Company for payment of dividend. 5. Members/Proxies are requeed to bring e Attendance Slip duly filled in. 6. As a measure of auerity, copies of e Annual Report will not be diributed at e Annual General Meeting; Members are requeed to bring eir copy of e Annual Report to e Meeting, if ey need to refer to it. 7. Pursuant to Clause 49 of e Liing Agreement wi e Stock Exchange, where e equity shares of e Company are lied, additional information pertaining to Directors proposed for re-appointment at e Annual General Meeting is attached hereto. By Order of Board of Directors Date: Place : Ahmedabad PARAS SAVLA Chairman & Managing Director 2

4 Details of Directors seeking re-appointment at e Annual General Meeting (In pursuance of clause 49 of e Liing Agreement) ANNUAL REPORT Name of e Director Mr. Vijay Kumar R. Shah Mr. Dharen Shantilal Savla Brief Resume and nature of Expertise in Functional area He is a fellow Member of e Initute of Chartered Accountants of India and has more an 27 years of experience in Accounts, Taxation and Audit. B.Com from Gujarat University, Ahmedabad, MBA from Swinburne University of Technology, Auralia and having more an 9 years of experience in handling human resources and organizing training programmes for implementing different jobs for different sites and looking after Work Over Rig activities as well. Li of oer Directorship/ Committee membership in oer Public Companies as on 31 March 2013 Oer Directorship Kautilya Fin Securities Limited Committee Membership NIL Oer Directorship Deep Natural Resources Limited Committee Membership NIL 3

5 DIRECTORS' REPORT ANNUAL REPORT To The Members Deep Induries Limited, Ahmedabad. Your Directors have pleasure in presenting Twenty-Third Annual Report togeer wi e Audited Accounts of e Company for e financial year ended 31 March, FINANCIAL RESULTS: ( ` In Lacs) Particulars Sales/ Income from Operation Oer Income Expenditure Profit Before Intere and Depreciation Less: Intere Profit Before Depreciation Less: Depreciation Profit Before Tax Less: Provision for: Current Taxation Short Provision of Taxation 0 Deferred Taxation Net Profit Balance brought forward from la year Exceptional Items (Profit/Loss) 0 0 Profit available for appropriation APPROPRIATIONS: Transfer to General Reserve Invement Reserve Fund Proposed Dividend Proposed Dividend Diribution Tax Balance carried to Balance Sheet DIVIDEND Your Directors have recommended dividend of Re.0.60/- (6 per cent) per Equity Share each of ` 10/- for financial year ended on 31 March, 2013, which,if approved at e ensuing Annual General Meeting will be paid to (i) ose Equity Shareholders whose name appear in e Regier of Members of e Company after giving effect to all valid share transfers in physical form lodged wi e Company on or before 13 September, 2013 and (ii) to ose members whose particulars as beneficial owners are furnished for is purpose, by e Depositories, viz. National Securities Depository Limited and Central Depository Services (India) Limited. MANAGEMENT DISCUSSION AND ANALYSIS A Management Discussion and Analysis report for e year under review forming e part of is Annual Report, dealing adequately wi e operations and also wi current and future outlook of e Company, is attached to is report. CORPORATE GOVERNANCE REPORT A Corporate Governance Report for e year under review, as ipulated in Clause 49 of e Liing Agreement, forming a part of is Annual Report is attached to is report. 4

6 A Certificate from e Practicing Company Secretary confirming compliance wi conditions of Corporate Governance as ipulated under Clause 49 of e Liing Agreement is annexed to e Report. DIRECTORS Mr. Dharen S. Savla & Mr. Vijay kumar R. Shah retire by rotation and being eligible, offer emselves for re-appointment. For your perusal, brief details of e Directors being appointed/re-appointed and oer relevant details are given at Note to e Notice convening e Annual General Meeting. The Board of Directors recommends eir re-appointment. DIRECTORS RESPONSIBILITY STATEMENT Pursuant to requirement under Section 217(2AA) of e Companies Act, 1956 wi respect to Directors responsibility atement, it is hereby confirmed: i. That in preparation of e Annual Accounts, all e applicable accounting andards have been followed. ii. iii. iv. That e accounting policies are adopted and consiently followed and e judgments and eimates made are reasonable and prudent so as to give a true and fair view of e ate of affairs of e Company at e end of e financial year and of profit of e company for e financial year. That e Directors have taken proper and sufficient care for e maintenance of adequate accounting records in accordance wi e provisions of e Act for safeguarding e assets of e Company and for preventing/ detecting fraud and irregularities. That e Directors have prepared e Annual Accounts on e going concern basis. SUBSIDIARY COMPANY: Pursuant to provisions of Section 212(8) of Companies Act, 1956, e Miniry of Corporate Affairs, Government of India, vide its circular dated February 8, 2011 has granted general exemption from attaching Balance Sheet, Profit & Loss A/c. and Oer documents of subsidiaries wi e balance sheet of e holding company. The annual accounts of e subsidiary companies and eir related detailed information will be made available to any member of e Company, seeking such information at any point of time. The annual accounts of e said subsidiary companies will also be kept open for inspection at e regiered office of e respective subsidiary companies. The atement as required under Section 212(e) of e Companies Act, 1956 for e Financial Year ended on 31 March, 2013 is also attached. The Company has incorporated a wholly owned subsidiary named Deep Global Pte in Singapore in e Financial Year CONSOLIDATED FINANCIAL STATEMENTS In accordance wi Accounting Standard AS-21 on Consolidated Financial Statements read wi Accounting Standard AS-23 on Accounting for Invement in Subsidiary Companies, e Audited Consolidated Financial Statements are provided in e Annual Report. These atements have been prepared on e basis of financial atements received from subsidiary and associates companies, as approved by eir respective boards. AUDITORS The Audit Committee of Board of Directors of e Company has recommended e appointment of M/s. Jayesh M. Shah & Co., Chartered Accountants, who retire at e ensuing Annual General Meeting. The Auditors, being eligible, have offered emselves for re-appointment. The Board recommends eir appointment by e members. They have submitted certificate regarding eir eligibility for appointment under Section 224(1-B) of e Company s Act, 1956 and at ey are not disqualified for such appointment wiin e meaning of Section 226 of e Companies Act, The report of e Auditor on financial atements referred to in Auditor s report are self explanatory and do not require furer comments. INSURANCE All movable properties as owned by e company continued to be adequately insured again risks. PARTICULARS OF EMPLOYEES In terms of e provisions of Section 217(2A) of e Companies Act, 1956, read wi e Companies (Particular of Employees) Rules, 1975 as amended, e names and oer particulars of e employees are set out in e Annexure to e Director s Report. Having regard to e provisions of Section 219(1)(b)(iv) of e said Act, e Annual Report excluding e aforesaid information is being sent to all e members of e Company and oers entitled ereto. Any member intereed in obtaining such particulars may write to Company Secretary at e Regiered Office of e Company. 5

7 CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION The Company is not engaged in activities specified in Companies, (Disclosure of Particulars in Report of Board of Directors) Rules 1988, and as such e company is not required to give information relating to conservation of energy. The Company is not using any particular technology and as such information relating to technology absorption is not required to be given. FOREIGN EXCHANGE EARNING AND OUTGO The information in respect of Foreign Exchange Earnings and Outgo as required by Companies (Disclosures of Particulars in e Report of Board of Directors) Rules, 1988 is given below: ( ` in Lacs ) Particulars Earnings Nil Nil Outgo DETAILS OF UNCLAIMED SHARES In terms of Clause 5A(I) of Liing Agreement as on 31 March, 2013, e details of unclaimed shares are as under: Particulars No. of Shareholders No. of shares Aggregate number of shareholders and e outanding shares in e suspense account lying at e beginning of e year i.e. as on April 1, 2012 Number of shareholders who approached to Issuer / Regirar for transfer of Nil Nil shares from suspense account during e year Number of shareholders to whom shares were transferred from suspense Nil Nil account during e year Aggregate number of shareholders and e outanding shares in e suspense account lying at e end of e year i.e. as on March 31, 2013 The voting rights on ese shares shall remain frozen till e rightful owner of such shares claims e shares. ACKNOWLEDGEMENT Your Directors wish to place on record eir deep sense of appreciation for e commitment displayed by all e employees of e Company resulting in successful performance during e year under review. Your Directors also take is opportunity to place on record e co-operation, assiance and continued support extended by e Banks, Government Auorities, Vendors and Shareholders during e year under review. for and on behalf of e Board of Directors Date : Place : Ahmedabad PARAS SAVLA Chairman & Managing Director 6

8 MANAGEMENT DISCUSSION AND ANALYSIS 7 ANNUAL REPORT OVERVIEW OF OPERATIONS OF Deep Induries Limited (DIL) is a well diversified oil & gas Company serving e indury since 1991 wi business intere in Air and Gas Compression, Work Over, Drilling and Oil & Gas Exploration and Production. DIL is e fir company in India to provide high pressure Air and Gas compressors on charter hire basis. DIL is e large Natural Gas Compression services provider in India. DIL is providing work-over and drilling services to exploration and production (E&P) Companies rough its fleet of rigs. DIL has also expanded in Exploration and Production business of Oil, Gas and Coal Bed Meane. OPPORTUNITIES AND THREATS The Oil and Gas sector in India is replete wi opportunities across its value chain and sub sectors such as opportunities in e upream sector, opportunities for E&P services and equipment companies. This sector offers great opportunities driven by factors such as valy unexplored and under explored sedimentary basins, unconventional hydrocarbon exploration (Shale and CBM) activities gaining momentum in India. The NELP was introduced to increase invement in India s domeic sector, especially e private sector invements. A total of nine rounds of acreage awards have been completed in which over 260 blocks were licensed out to companies. Currently, Oil and Gas sector is dealing wi fundamental issues which can hinder its progress and wart e achievement of its grow objective such as shortages of skills, technology and equipment in upream sector, ambiguity on policies relating to pricing and marketing of domeic gas as well as e gas end user segment policies creating hurdles to gas market development etc. STRATEGY OF THE COMPANY Deep Induries Limited is planning to increase its drilling and compression equipment fleet. Company is focused on exploring and developing e acreages at it has acquired in NELP and CBM rounds. Company is also looking to buy producing oil and gas acreages worldwide. GAS COMPRESSION BUSINESS Deep Induries Limited is e large Natural Gas Compression service provider in India. Currently e Company is executing various projects wi Public and Private sector companies in India. The Company executes contracts on turnkey basis, which includes supply of Equipment, Inallation, Commissioning and Operation & Maintenance of gas engine/motor driven compressor packages. DRILLING AND WORK-OVER BUSINESS Company has 6 work over Rigs of various capacities and 2 Drilling Rigs operating wi various renowned E&P Companies in Oil & Gas sector across India. Company has done work over operations on more an 550 wells. DIL has been successfully executing long term contracts since la 9 years. Company has bid for various drilling contracts wiin India as well as across e globe. OIL AND GAS EXPLORATION AND PRODUCTION BUSINESS Total acreage of Company in Oil and Gas is about 10,000 Sq. Kms. DIL has signed PSC for one block in NELP VII and its Subsidiary Company, Deep Energy LLC has signed PSC for 3 blocks in NELP IX round. NELP VII: Deep Induries Limited has signed Production Sharing Contract for SR-ONN-2005/1 Oil and Gas Block in Chattishgarh in e 7 round of New Exploration Licensing Policy (NELP-VII) by Government of India. Application for Petroleum Exploration License (PEL) for e block was applied to e Government of Chattishgarh and execution of PEL between e Government of Chattishgarh and DIL is expected in e year 2013.Company has applied for Environmental Clearnace to MoEF. NELP IX: Deep Energy LLC, subsidiary of Deep Induries Limited wi its consortium partners has signed Production Sharing Contract for 3 onshore blocks (VN-ONN-2010/1, VN-ONN-2010/2 and CB-ONN-2010/3) in NELP IX by Government of India. VN-ONN- 2010/1 and VN-ONN-2010/2 blocks are situated at Madhya Pradesh ate and CB-ONN-2010/3 block is located in Gujarat State. Total area of VN-ONN-2010/1 is 3776 Sq. Kms, VN-ONN-2010/2 is 4909 Sq. Kms and CB-ONN-2010/3 is 534 Sq. Kms. Application for Petroleum Exploration License has been filed wi e respective State Governments for all e blocks. COAL BED METHANE (CBM) PROJECTS SR-CBM-2005/III(India) Deep Induries Limited (DIL) has completed 9 Coreholes and 5 Te Wells in its drilling campaign of Phase-I Minimum Work Programme(MWP). DIL has acquired CBM reservoir parameters like Thickness of coal seams, Gas content, Permeability, Coal Properties, Production teing results etc. from e Phase I campaign. Economic Assessment of e Singrauli block located Madhya Pradesh has been carried out by Advanced Resources International, USA reporting positive results on economic viability. There is furer plan to drill Pilot well(s) in e current Fiscal Year.

9 GV (Nor)-CBM-2005/III (India) Deep Induries Limited has been accorded Environment Clearance from Miniry of Environment and Fores. Petroleum Exploration License (PEL) was applied and is awaited from e State Government of Andhra Pradesh. Land acquisition for 5 core hole sites has been completed. Pre-Exploratory and Exploratory activities will commence after grant of PEL from Government of Andhra Pradesh. Melak Mendung III CBM (Indonesia) For MM3 Block, Production Sharing Contract (PSC) has been signed wi BPMIGAS, e Indonesian Petroleum sector Regulator, on 1 Augu, The CBM Block is located in e Ea Kalimantan, Indonesia. Total area of e block is Sq. Kms. The Environment Baseline Assessment (EBA) udy is being conducted for e block. MARGINAL FIELDS Deep Induries Limited has been awarded services contract for e development of ree Onshore Marginal fields by Oil and Natural Gas Corporation Limited. These fields are situated at Ghotaru, Bankia and Kharatar in Jaisalmer Dirict, Rajahan. DIL has completed all its committed work programme of e assessment period and entered into e development period for ese fields. Gas Collection Station was inaugurated by honourable Shri Sudhir Vasudeva, Chairman and Managing Director of ONGC in Noverber, FINANCIAL ANALYSIS OF SERVICE INCOME ( ` In Lacs ) Nature of Services FY FY Change Change % Air, Gas Compression & Work Over Operation Services Total Business Income Service Income of e Company has increased from ` lacs to ` lacs which show increase of 7.69% in operation income over e previous year. ( ` In Lacs ) FOR THE YEAR FOR THE YEAR SERVICE INCOME EBDITA EBDTA PBT PAT FOR THE YEAR FOR THE YEAR Service EBDITA EBDTA PBT PAT Income 8

10 OTHER INCOME Oer Income increased from ` Lacs to ` Lacs as compared to previous year. Such increase is majorly due to profit on sale of short term invements. OPERATING EXPENSES Operating Expenses has decreased from ` Lacs to ` Lacs as compared to previous year. Operating Expenses as a percentage of Operating Income has been decreased from 32.45% to 24.57% as compared to previous year which is very well as per Indury norms. STAFF COST Employees Remuneration & Benefits has increased from ` Lacs to ` Lacs as compared to previous year which shows marginal increase of 2.78% in actual terms. However, e same has been decreased from 10.73% to 10.40% in terms of percentage of operating income as compared to previous year. Staff co also includes Director s Remuneration. OTHER COST Oer Expense has increased from ` Lacs to ` Lacs as compared to previous year. FINANCIAL CHARGES Intere & Financial Charges has increased from ` Lacs to ` Lacs as compared to previous year. Financial Charges as a percentage of operating income has increased from 7.43% to 9.88% as compared to previous year. The said increase is mainly due to addition to Capital Equipments during e year. DEPRECIATION Depreciation has increased from ` Lacs to ` Lacs. As compared to previous year which shows increase of 42.65% over e previous year. This is because some of our CWIP projects converted into Capital and ere is an addition in Plant & Machinery during e year which will reflect increase in revenue during F.Y RISKS & CONCERN 1. Cyclical nature of business as it is dependent on oil & gas prices. 2. Scarcity of skilled personnel in market. INTERNAL CONTROL SYSTEMS The Company has built adequate syems of internal controls to safeguard all assets again loss from unauorised use or disposition as well as ensuring e preparation of timely and accurate financial information. Regular internal audits and checks are carried out to provide assurance at adequate syems are in place and at e responsibilities at various levels are discharged effectively. HUMAN RESOURCES The Company believes at employees are e key to achieve e Company s objectives and rategies. The Company provides to e employees a fair and equitable work environment and support from eir peers wi a view to develop eir capabilities leaving em wi e freedom to act and to take responsibilities for e task assigned. We provide our employees outanding career development opportunities and reward to e aff for eir good performance and loyalty to e organisation. In order to meet e induries demand, we have appointed experienced professionals in Technical as well as Finance Departments. Apart from at every year, we hire new pool of talent from reputed petroleum initutes rough campus selection process. CAUTIONARY STATEMENT Statement in Management Discussion and Analysis may be forward looking wiin e meaning of applicable securities laws and regulations. Many factors may affect e actual results, which could be different from what e Directors envisage in terms of future performance and outlook. The Company assumes no responsibilities in respect of e forward looking atements herein, which may undergo changes in future on e basis of subsequent developments, information or events. 9

11 CORPORATE GOVERNANCE REPORT COMPANY S PHILOSOPHY ON CORPORATE GOVERNANCE The Good Corporate Governance in e changing business dynamic has emerged as a powerful propellant of Competitiveness and Suainability. It is a process or a set of syems to ensure at company is managed to suit e be intere of all akeholders. It is interplay between Companies, Shareholders, Creditors, Capital Markets, Financial Sectors, Initution and law. Maximization of shareholders weal is e cornerone of Good Corporate Governance. The Concept of Corporate Governance hinges on total transparency, integrity, accountability of e management and e board of directors. The company has improved e quality of Corporate Governance rough e integrity of management, transparency in corporate reporting, financial reporting, commitment level of individual board member and participation of akeholders in e management. The company has rong legacy of fair, transparent and eical governance practices. We take pleasure in reporting at your Company s exiing policies and procedures are in conformity wi e requirements ipulated under Clause 49 of e Liing Agreement and e Company is committed to maintain e highe andard of corporate governance to maintain proper compliance wi all e applicable legal and regulatory requirements under which e company is carrying out its activities. 1. BOARD OF DIRECTORS The Board of Directors as on 31 March, 2013 comprises of Eight Directors out of which four Directors are Executive, Non-Independent and Four Directors are Non Executive, Independent Directors e details of which are as follows: Composition and Category of Directors Name of Directors Category of No. of Attendance at Member/ Directorship in Directorship board meeting la AGM Chairman of oer oer Indian attended Board Committee* Companies as at 31 March, 2013** Paras S. Savla CMD-Executive-NI 9 Yes 2(Member) 2 Rupesh K. Savla MD-Executive-NI 9 Yes NIL 1 Dharen S. Savla WTD-Executive-NI 8 Yes NIL 1 Premsingh Sawhney WTD-Executive-NI 6 No NIL NIL Vijay R. Shah NED (I) 7 Yes NIL 1 Harish G. Bhinde NED (I) 5 No NIL NIL Ajay Kumar Singhania NED (I) 6 No NIL NIL Kiritkumar V. Joshi NED(I) 3 No NIL NIL * Chairmanship/membership of e Audit Committee and e Shareholders Grievance Committee of oer companies is considered. ** Excludes Directorship in private/foreign companies and companies incorporated under Section 25 of e Companies Act, CMD Chairman & Managing Director MD Managing Director WTD Wholetime Director NED (I) Non Executive Director (Independent) NI Non Independent Minimum Four Board Meetings are required to be held in each year. During e Financial Year ended on 31 March, 2013, 9(Nine) meetings of e Board of Directors were held on e following dates: , , , , , , , and : 2. AUDIT COMMITTEE The Audit Committee of e company as on 31 of March, 2013 comprised of two Non Executive, Independent Directors and one Executive Director. The conitution of AuditCommittee of e company is in conformity wi e provisions of clause 49 of e Liing Agreement entered into wi e ock exchange read wi section 292A of e Companies Act,

12 As on 31 March, 2013, e composition of e Audit Committee and e details of meetings attended by its members are given below: Name Designation Category Committee meeting attended Mr. Vijay R. Shah Chairman Non- Executive, Independent 5 Mr. Harish G. Bhinde Member Non- Executive, Independent 5 Mr. Paras Savla Member Executive,Non- Independent 5 The terms of reference of Audit Committee cover e matters specified for Audit Committee under clause 49 of e Liing Agreement and Section 292A of e Companies Act 1956, which are as under: Supervision of e Company s Financial Reporting process and e disclosure of its financial information to ensure at e financial atement reflects a true and fair position. Reviewing wi e Management, e Financial Result before placing em to e Board wi a special emphasis on accounting policies and practices,internal controls, compliances wi accounting andards and oer Legal requirements concerning financial atements. Recommending e appointment and removal of atutory auditor, fixation of eir audit fees and approval for e payment for any oer services. Reviewing e quarterly financial atements and draft auditor report reviewing e adequacy of e audit and compliance function, including eirpolicies, procedures, techniques and oer regulatory requirements wi e atutory auditors. Reviewing e observation of atutory Auditor about e finding during e audit of e company. Keeping watch on timely payment to shareholders and creditors. Reviewing e performance of Statutory Auditor. Reviewing e management discussion and analysis of financial condition and result of operations. Reviewing e significance of related party transactions, if any. Five meetings of Audit Committee were held during e Financial year on e following dates: , , , and INVESTORS GRIEVANCES COMMITTEE The Company has Inveors Grievance Committee of Directors to look into e redressal of Inveors Grievances related to e share transfer, transmissions, transpositions, Rematerialisation, split and issue of duplicate share certificates, non receipt of Annual Report, non receipt of declared dividend and such oer related issues. As on 31 March, 2013, e composition of e Inveors Grievances Committee and e details of meetings attended by its members are given below: Name Designation Category Committee meeting attended Mr. Vijay R. Shah Chairman Non- Executive, Independent 4 Mr. Harish G. Bhinde Member Non- Executive, Independent 4 Mr. Paras Savla Member Executive, Non- Independent 4 Four meetings of Inveors Grievances Committee were held during e financial year on e following dates: 14/05/2012, 14/08/2012, 10/11/2012 and 14/02/ REMUNERATION COMMITTEE The Company has Remuneration Committee of directors to review/recommend e remuneration/commission payable to e Managing Director/Whole Time Director based on eir performance and defined assessment criteria. As on 31 March, 2013, e composition of e Remuneration Committee and e details of meetings attended by its members are given below: Name Designation Category Committee meeting attended Mr. Vijay R. Shah Chairman Non- Executive, Independent 1 Mr. Harish G. Bhinde Member Non- Executive, Independent 1 Mr. Ajay Kumar Singhania Member Non- Executive, Independent 1 11

13 12 ANNUAL REPORT Details of Remuneration of Managing Directors and Executive Director for e financial year are as under: Sr No. Name of Director Amount Paid ( In Lacs) 1. Paras Savla (Chairman & Managing Director) Rupesh Savla (Managing Director) Dharen Savla (Executive Director) Mr. Premsingh Sawhney (Whole Time Director) One Meeting of Remuneration Committee was held during e financial year on 29/08/ ROUTINE TRANSACTION COMMITTEE The Company has Routine Transaction Committee of e Directors to consider and transact e routine business matters and to comply wi atutory formalities of e Company. Terms of Reference The committee shall have empowered to do all such acts, ings and deeds as may be considered necessary for carrying on ordinary course of business of e Company, including but not rericted to: (a) Applying for e tender in e name or on behalf of e Company; (b) Opening or closing of company s bank account(s) ; (c) Making application to or representation before any atutory, legislative or judicial auority or government department; (d) Appointment of agents or auorize any person to discharge eir obligation(s) or duty (ies) or to exercise eir right(s) and power. The Routine Transaction Committee comprised of ree members viz Mr. Paras Savla, Mr. Rupesh Savla and Mr. Dharen S. Savla. Mr. Paras Savla is e Chairman of e Committee. The committee met Six times during e year and attended by all members. 6. GENERAL BODY MEETING Details of la ree Annual General Meetings: Year Date Time Venue No. of Special Resolution /06/ A.M. Conference Room, GCA Club House, 5 Sardar Patel Stadium, Motera, Gandhinagar, Gujarat /09/ A.M. Conference Room, GCA Club House, Nil Sardar Patel Stadium, Motera, Gandhinagar, Gujarat /09/ A.M. Conference Room, GCA Club House, Nil Sardar Patel Stadium, Motera, Gandhinagar, Gujarat Special resolutions mentioned above were passed by show of hands. No resolution was passed rough e poal ballot during e year under review. 7. DISCLOSURES Legal Compliances The Company has complied wi all e requirements of regulatory auorities on matters related to capital markets and and hence no penalties or rictures have been imposed on e Company by e Stock Exchanges, SEBI or any oer atutory auority during e la ree years. CEO/CFO Certification In terms of Clause 49 of e Liing Agreement, e certification by Chief Executive Officer and Chief Financial Officer has been obtained. Code of Conduct The Company has adopted a Code of Conduct. The Code of Conduct has also been poed on e website of e Company. In compliance wi e Code, Directors and senior management of e Company have affirmed eir compliance wi e Code for e year under review. A declaration to is effect forms part of is annual report. Related Party Transaction The Company had transactions wi related parties as defined in e Accounting Standard 18 and it has been shown in Notes on Accounts, forming part of e Annual report of e Company and none of e transactions wi any of e related parties were in conflict wi e intere of e Company.

14 13 ANNUAL REPORT Compliance wi e Corporate Governance Code The Company has complied wi all e mandatory requirements of Clause 49 of e Liing Agreement. The non mandatory requirement complied wi has been disclosed at e relevant places. Outanding ADR/GDR The Company has not issued any ADR/GDR. 8. MEANS OF COMMUNICATION The Quarterly, Half yearly and Annual results of e company are published in English and Gujarati newspapers. The same were sent to e bo Stock Exchanges i.e. National Stock Exchange of India Limited (NSE) & Bombay Stock Exchange (BSE). These results are also available on company s website i.e GENERAL SHAREHOLDER INFORMATION (i) rd 23 Annual General Meeting - Date : 19 September, Time : a.m. - Venue : Conference Room, GCA Club House, Sardar Patel Stadium, Motera, Ahmedabad, Gujarat (ii) Date of Book closure: 14 September, 2013 to19 September, 2013 (Bo days inclusive) (iii) Financial calendar for e year Board Meeting for approval of quarterly results (tentative schedule) June 30, : On or before 14 Augu, 2013 September 30, 2013 : On or before 15 November, 2013 December 31, 2013 : On or before 14 February, 2014 March 31, 2014 : On or before 30 May, 2014 (iv) Dividend payment The Board of Directors at eir meeting held on 25/05/2013 recommended a dividend of ` 0.60 per equity share of e face value of ` 10/- each for e financial year , shareholders. Dividend, if approved by e shareholders will be paid wiin prescribed atutory period. (v) Liing on Stock Exchange along wi ock code The equity shares of e Company are lied on Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE). The company has paid Annual Liing Fees for e year to ock exchanges. (vi) Script code: NSE - DEEPIND BSE (vii) Market Price Data: High & Low price (based on closing price) during each mon in la Financial Year BSE NSE MONTH HIGH LOW HIGH LOW April, May, June, July, Augu, September, October, November, December, January, February, March,

15 (viii) Diribution of shareholding as on 31 March No. of Shares No. of Holders % of holders No. of Shares % of holding 1 to ,81, to ,50, to ,03, to ,71, to ,16, to ,66, to ,31, and above ,19,28, Total ,62,50, (ix) Shareholding Pattern of e Company as on 31 March, 2013 Sr.No. Category No. of shares held % of shareholding 1 Promoters 1,56,35, Mutual Fund and UTI 5,92, Clearing Member 2,45, Foreign Initutional Inveors 42, Private Corporate Bodies 31,84, NRIs/OCBs 1,27, Indian Public 64,22, Banks, Financial Initutions, Insurance Co. ( Central/State Government Initution ) GDR - - Total 2,62,50, (x) Regirar and Share Transfer Agents The inveors may contact e Company s Regirar and Share Transfer Agent for any assiance, reque or inruction regarding e lodgement of transfer or transmission of shares, change of address or any oer query relating to e shares of e Company at e following address: Name : Link Intime India Private Limited Address : rd Unit No. 303, 3 Floor, Shoppers Plaza V, Opp. Municipal Market, Behind Shoppers Plaza II, Off C G Road, Ahmedabad Phone : ahmedabad@linkintime.co.in Website : (xi) Share Transfer Syem As on 31 March, 2013, 2,62,49,889 Equity Shares, representing % Share Capital of e Company are in electronic form. The transfer of ese shares is done directly rough e depositories wiout any involvement of e company. The Board of Directors of e Company has delegated e powers regarding share transfer, splitting/consolidation of share certificate and issue of duplicate share certificate, rematerialisation of shares, etc... to e Regirar and Share Transfer Agent of e company. The Regirar and Share Transfer Agent process e transfer of shares in physical form, wiin ipulated time, if documents are complete in all respects. 14

16 (xii) Address for correspondence The shareholders may address eir communication/grievances at e following address. The Company Secretary Deep Induries Limited 6 Floor, Aron Tower, Opposite Fun Republic Cinema, S.G. Highway, Ahmedabad for and on behalf of e Board of Directors Date: 09/08/2013 Place : Ahmedabad PARAS SAVLA Chairman & Managing Director DECLARATION As provided under Clause 49 of e Liing Agreement wi Stock Exchange(s), I hereby declare at all e Board of Directors and Senior Management personnel of e Company have affirmed e Compliance wi e Code of Conduct for e year ended 31 March, Date : 25/05/2013 Paras S. Savla Place: Ahmedabad Chairman & Managing Director 15

17 CERTIFICATE ON CORPORATE GOVERNANCE ANNUAL REPORT To The Members Deep Induries Limited, Ahmedabad. We have examined e compliance of conditions of Corporate Governance by Deep Induries Ltd. For e year ended 31 March, 2013, as ipulated in clause 49 of e Liing agreement of e said Company wi e Stock Exchange. The Compliance of conditions of Corporate Governance is e responsibility of Management. Our Examination was limited to e procedure and implementation ereof, adopted by e Company for ensuring e Compliance of e conditions of Corporate Governance. It is neier an audit nor an expression of opinion on e Financial Statement of e Company. In our Opinion and to e be of our information and according to e explanation given to us, we certify at e Company has complied wi e conditions of Corporate Governance as ipulated in Clause 49 of e Liing Agreement. We ate at no inveor grievance is pending for a period exceeding one mon again e Company. We furer ate at such compliance is neier an assurance as to e future viability of e Company nor e efficiency or effectiveness wi which e Management has conducted e affairs of e Company. For Rajesh Parekh & Co. Practicing Company Secretaries Rajesh G. Parekh Date : 25/05/2013 Proprietor Place : Ahmedabad M. No

18 INDEPENDENT AUDITORS REPORT To, The Members, Deep Induries Limited. 1. We have audited e accompanying financial atements of ( e Company ) which comprise e Balance Sheet as at 31 March, 2013 and Profit and Loss Account and e Cash Flow Statement for e year en ended, and a summary of significant accounting policies and oer explanatory information on at date annexed ereto. 2. Management is responsible for e preparation of ese financial atements at give a true and fair view of e financial position, financial performance and cash flows of e Company in accordance wi e Accounting Standards referred to in sub-section (3C) of section 211 of e Companies Act, 1956 ( e Act ). This responsibility includes e design, implementation and maintenance of internal control relevant to e preparation and presentation of e financial atements at give a true and fair view and are free from material misatement, wheer due to fraud or error. 3. Our responsibility is to express an opinion on ese financial atements based on our audit. We conducted our audit in accordance wi e Standards on Auditing issued by e Initute of Chartered Accountant of India. Those Standards require at we comply wi eical requirements and plan and perform e audit to obtain reasonable assurance about wheer e financial atements are free from material misatement. 4 An audit involves performing procedures to obtain audit evidence about e amounts and disclosures in e financial atements. The procedures selected depend on e auditor s judgment, including e assessment of e risks of material misatement of e financial atements, wheer due to fraud or error. In making ose risk assessment, e auditor considers internal control relevant to e Company s preparation and fair presentation of e financial atements in order to design audit procedures at are appropriate in e circumances. An audit includes evaluating e appropriateness of accounting policies used and e reasonableness of e accounting eimates made by management, as well as evaluating e overall presentation of e financial atements. We believe at our audit provides a reasonable basis for our opinion. 5. In our opinion and to e be of our information and according to e explanations given to us, e financial atements give e information required by e Act in e manner so required and give a true and fair view in conformity wi e accounting principles generally accepted in India (a) in e case of e Balance Sheet, of e ate of affairs of e Company as at 31 March, 2013 ; and (b) in e case of e Profit and Loss Account, of e profit for e year ended on at date ; and (c) In e case of Cash Flow atement, of e cash flows for e year ended on at date. 6. As required by e Companies (Auditor s report) Order, 2003 ( e Order) issued by e Central Government of India in terms of sub-section (4A) of section 227 of e Act, we give in e Annexure a atement on e matters specified in paragraphs 4 and 5 of e Order. 7. As required by section 227(3) of e Act, we report at: (a) We have obtained all e information and explanations, which to e be our knowledge and belief were necessary for e purpose of our audit ; (b) In our opinion, proper books of accounts as required by law have been kept by e Company so far as appears from our examination of ose books; (c) The Balance Sheet, Statement of Profit & Loss Account and Cash Flow Statement dealt wi by is report are in agreement wi e books of account; (d) In our opinion, e Balance sheet, Statement of Profit and Loss Account and Cash Flow Statement comply wi e Accounting Standards referred to in sub-section (3C) of Section 211 of e Companies Act, 1956; (e) On e basis of written representation received from e directors, as on 31 March 2013 and taken on record by e Board of Directors, none of e directors is disqualified as on 31 March 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of e Companies Act, 1956; (f) Since e Central Government has not issued any notification as to e rate at which e cess is to be paid under section 441A of e Companies Act,1956 nor has it issued any Rules under e said section, prescribing e manner in which such cess is to be paid, no cess is due and payable by e Company. FOR AND ON BEHALF OF JAYESH M. SHAH & CO. Chartered Accountants Firm Reg. no W Place : Ahmedabad (JAYESH M. SHAH) Date : 25 May, 2013 Proprietor Mem. No. :

19 18 ANNUAL REPORT ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 6 of e Auditors Report of even date to e members of Deep Induries Limited on e financial atements for e year ended 31 March, 2013.) 1. (a) The Company has maintained records showing full particulars including quantitative details and situation of its fixed assets. (b) As explained to us, a subantial portion of e fixed assets have been physically verified by e management during e year and no material discrepancies have been noticed on such verification. (c) In our opinion, e Company has not disposed off a subantial part of its fixed assets during e year and e going concern atus of e Company is not affected. 2. (a) As per information and explanation given to us, inventory of spares and consumables has been physically verified by e management at e year end. In our opinion e frequency of verification is reasonable. (b) In our opinion e procedures of physical verification of inventory of spares and consumables followed by e management are reasonable and adequate in relation to e size of e company and e nature of its business. (c) On e basis of our examination of e inventory records produced before us, in our opinion e Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt wi in books of accounts. 3. (a) The Company has given an intere bearing unsecured loan to its subsidiary Company. In respect of e said loans e maximum amount outanding at any time during e year is ` Lacs and e yearend balance is ` 6.78 Lacs. The company has not granted loans secured or unsecured to firms or oer parties covered in e regier maintained under Section 301 of e Companies Act, (b) In our opinion and according to e information and explanations given to us, terms and conditions of such intere bearing loans are not prima facie prejudicial to e intere of e Company. (c) The principal amounts, are repayable on demand and ere is no repayment schedule. (d) In respect of said loan, e same are repayable on demand and erefore e queion of overdue amount does not arise. (e) The Company has not taken any loans secured or unsecured, from Companies, firms or oer parties covered in e regier maintained under Section 301 of e Companies Act, Consequently, requirement of clauses (iii)(f) and (iii)(g) of paragraph 4 of e Order are not applicable. 4. In Our opinion and according to e information and explanations given to us ere exis adequate Internal Control procedures commensurate wi e size of e Company and e nature of its business wi regard to purchase of components, plant and machinery, equipments and oer assets and wi regard to service provided by e Company, Furer on e basis of our examination of e books and records of e Company, carried out in accordance wi e auditing andards generally accepted in India, we have not observed any continuing failure to correct major weaknesses in e aforesaid internal control procedures. 5. (a) In our opinion and according to e information and explanations given to us, e transactions made in pursuance of such contracts or arrangements referred to in Section 301 of e Companies Act, 1956 have been entered in e regier required to be maintained under at section. (b) In our opinion and according to e information and explanations given to us, e transactions made in pursuance of such contracts or arrangements exceeding value of ` 5,00,000 have been entered into during e financial year at prices which are reasonable having regard to e prevailing market prices at e relevant time. 6. According to e information and explanations given to us, e Company has not accepted any deposits from e public wiin e meaning of section 58A and 58AA of e Companies Act, 1956 and e rules framed ere under. Therefore, e provisions of Clause (vi) of paragraph 4 of e Order are not applicable to e Company. 7. In our opinion, e Company has an internal audit syem commensurate wi e size of e Company and nature of e business. 8. We are informed at maintenance of co records as prescribed by e Central Government of India under clause (d) of subsection (1) of Section 209 of e Companies Act, 1956 in respect of e Company products are not applicable. Hence, e provisions of Clause (viii) of paragraph 4 of e Order are not applicable to e Company. 9. (a) According to e information and explanations given to us and e records of e Company examined by us, in our opinion, e Company is generally regular in depositing undisputed atutory dues including provident fund, inveor education and protection fund, employees ate insurance, income tax, sales tax, weal tax, service tax, cuom duty, excise duty, cess and oer material atutory dues to e extent applicable wi e appropriate auorities in India. However, in case of delays in few inances e same has been deposited along wi intere due ereon.

20 (b) According to e information and explanations given to us and e records of e Company examined by us, ere are no dues of income tax, weal tax, sales tax, cuom duty, excise duty and cess which have not been deposited on account of any dispute. The particulars of dues of service tax as at 31 March, 2013 which have not been deposited on account of a dispute, are as follows: Name of Statute Nature of Dues Amount ( ` Lacs) Related Period From where e dispute is pending Service tax Short payment of F.Y to Service tax dept. Service tax F.Y The Company does not have any accumulated losses as at 31 March, 2013 and has not incurred any cash losses during e financial year covered by our audit and in e immediately preceding financial year. 11. In our opinion and according to e information and explanations given to us, e Company has not defaulted in repayment of dues to any bank. 12. In our opinion and according to e information and explanations given to us, e Company has not granted any loans and advances on e basis of security by way of pledge of shares, debentures and oer securities. 13. In our opinion, e Company is not a chit fund or a nidhi /mutual benefit fund/ society. Therefore, e provisions of Clause (xiii) of Paragraph 4 of e Order are not applicable to e Company. 14. Based on our examination of e records and evaluation of e related internal controls, e Company has maintained proper records of transactions and contracts in respects of its invements, securities and oer invements and timely entries have been made erein. All Shares, Securities and oer invements have been held by e Company in its own name. 15. In our opinion and according to information and explanation given to us, e Company has not given guarantee for any loan taken by oer from Bank/ Financial Initutions which are prejudicial to e intere of e Company. 16. To e be of our knowledge and belief and according to e information and explanations given to us, in our opinion, e term loans & oer facilities obtained during e year were, applied by e Company for e purpose for which ey were obtained. 17. According to e information and explanations given to us and on e basis of overall examination of e Balance Sheet of e Company, in our opinion, ere are no short term funds raised during e year which have been used for long term invement. 18. In our opinion and according to e information and explanations given to us, e Company has made preferential allotment of 13,75,000 equity shares of ` 10 each at e price of ` 76 each to Companies/oers covered in e regier maintained under Section 301 of e Companies Act, The Company has not issued any debentures. Therefore e provisions of Clause (xix) of paragraph 4 of e Order are not applicable to e Company. 20. The Company has not raised any monies by way of public issue during e year. 21. During e course of our examination of e books and records of e Company, carried out in accordance wi e auditing andards generally accepted in India, we have neier come across any inance of fraud on or by e Company, noticed or reported during e year, nor have we been informed of such case by e management. FOR AND ON BEHALF OF JAYESH M. SHAH & CO. Chartered Accountants Firm Reg. no W Place : Ahmedabad (JAYESH M. SHAH) Date : 25 May, 2013 Proprietor Mem. No. :

21 BALANCE SHEET AS AT 31ST MARCH ANNUAL REPORT Particulars Note No ` As at ` As at 31 March March 2012 I. EQUITY AND LIABILITIES 1 Shareholders Funds (a) Share Capital (b) Reserves and Surplus (c) Money Received Again Shares Warrants Share Application Money pending for Allotement Non-current Liabilities (a) Long-term Borrowings (b) Deferred Tax Liabilities (c) Oer Long-term Liabilties Current Liabilities (a) Short-term Borrowings (b) Trade Payables (c) Oer Current Liabilities (d) Short-term Provisions TOTAL II. ASSETS 1 Non-current Assets (a) Fixed Assets i) Tangible Assets ii) Intangible Assets iii) Capital Work in Progress (b) Non-current Invements (c) Long-term Loans and Advances (d) Oer Non-Current Assets Current Assets (a) Current Invements (b) Inventories (c) Trade Receivables (d) Cash and Cash Equivalents (e) Short-term Loans and Advances (f) Oer Current Assets TOTAL The notes form an integral part of ese financial atements 1 TO 27 As per our report of even date attached For & on Behalf of Jayesh M. Shah & Co. Chartered Accountants F. R. N W Jayesh M.Shah Proprietor M. No Date : 25 May 2013 Place : Ahmedabad Bhavika Bhatt Company Secretary For Deep Induries Limited Paras Savla Chairman & Managing Director Date : 25 May 2013 Place : Ahmedabad Rupesh Savla Managing Director

22 STATEMENT OF PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED ON 31ST MARCH 2013 Particulars Note No ` For e Year ` For e Year Ended 31/03/2013 Ended 31/03/2012 I. INCOME Revenue from Oil & Gas Services II Oer Income III Total Revenue (I + II) IV Expenses - Operating Expense Employee benefits expenses Finance Cos Depreciation and Amortization expense Oer Expenses Prelimnary Expense Written Off Total Expenses V Profit before exceptional items and tax (III - IV) VI VII Exceptional items Profit/(Loss) before tax (V - VI) VIII Tax Expense : (1) Current Tax (2) Deferred Tax IX Profit / (Loss) for e year (VII - VIII) X Earnings per Equity Share of ` 10 each Basic Diluted The notes form an integral part of ese financial atements 1 to 27 As per our report of even date attached For & on Behalf of Jayesh M. Shah & Co. Chartered Accountants F. R. N W Jayesh M.Shah Proprietor M. No Date : 25 May 2013 Place : Ahmedabad Bhavika Bhatt Company Secretary 21 For Deep Induries Limited Paras Savla Chairman & Managing Director Date : 25 May 2013 Place : Ahmedabad Rupesh Savla Managing Director

23 CASH FLOW STATEMENT FOR THE YEAR ENDED ON ANNUAL REPORT PARTICULARS ` ` CASH FLOWS FROM OPERATING ACTIVITIES : Net Profit before tax as per Profit & Loss Account Adjument for : Depreciation Expenses Intere Expenses Dividend Income Intere Income (Gain)/ Loss Foreign Currency Fluctuation (Profit)/Loss on Sale of Invements (Profit)/Loss on Sale of Fixed Assets Preliminary Expenses Written Off Operating Profit before Working Capital Changes Changes in Working Capital Adjument for Inventories Trade Receivables Loans & Advances Trade Payable & Oer Liabilities CASH FLOW FROM OPERATION Cash Flow from Exceptional Claim Income Tax Paid During e Year (Net off Refund Received) NET CASH GENERATED BY OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES : Purchase of Fixed Assets & Addition in Capital Work in Progress Sale of Fixed Assets Purchase of Invements Sale of Invements Intere Income Dividend Income Profit from Sale of Invements NET CASH USED IN INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES : Intere Paid Foreign Currency Fluctuation Gain Proceeds from Issue of Share Capital/Convertible Warrants ( Net of Expenses / Recovery of Expenses) Proceeds from Secured Loans Dividend and Dividend Diribution Tax Paid NET CASH FROM FINANCING ACTIVITIES NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE CLOSE OF THE YEAR As per our report of even date attached For & on Behalf of Jayesh M. Shah & Co. Chartered Accountants F. R. N W Jayesh M.Shah Proprietor M. No Date : 25 May 2013 Place : Ahmedabad Bhavika Bhatt Company Secretary For Deep Induries Limited Paras Savla Chairman & Managing Director Date : 25 May 2013 Place : Ahmedabad Rupesh Savla Managing Director

24 NOTES TO THE FINANCIAL STATEMENTS NOTE 1: CORPORATE INFORMATION Deep Induries Limited (DIL) is a well diversified oil & gas company serving e indury since 1991 wi business interes in Air and Gas compression, Work over, Drilling and Oil & Gas Exploration and Production. DIL is e fir company in India to provide high pressure Air and Gas compressors on charter hire basis. DIL is e large Natural Gas Compression services provider in India and has also diversified into providing of work-over services to exploration and production (E&P) players rough its fleet of rigs. From its Drilling to Dispensing plan, DIL has also expanded its arms to Exploration and Production Business of Oil, Gas and Coal Bed Meane. NOTE : 2 SIGNIFICANT ACCOUNTING POLICIES A. Basis of Preparation of Financial Statements The financial atements have been prepared in compliance wi all material aspects of e mandatory Accounting Standards issued by e ICAI and e relevant provisions of e Companies Act, Financial Statements are based on hiorical co and are prepared on accrual basis. B. Use of Eimates The preparation of financial atements requires eimates and assumptions to be made at affect e reported amount of assets and liabilities on e date of e financial atements and e reported amount of revenues and expenses during e reporting period. Difference between e actual results and eimates are recognized in e period in which e results are known/ materialized. C. Fixed Assets and Depreciation (a) (b) Fixed Assets are ated at co net of cenvat, less accumulated depreciation. All co, including financing co till commencement of assets put to use, effect of foreign exchange contracts and adjument arising from exchange rate variations attributable to e fixed assets are capitalised. Expenditure including finance cos related to borrowed funds for e fixed assets incurred on projects under implementation are included under Capital Work in Progress. These expenses are transferred to fixed assets on commencement of respective projects. (c) (i) Depreciation on Shed & conruction at contactor site is provided considering e period of e initial contract. (ii) (iii) Depreciation on Tanker & Office Building is provided on Written down Value Meod as per e rate prescribed in Schedule XIV and in accordance wi Section 205(2)(b) of e Companies Act, Depreciation on Fixed Assets oer an ated above in Para (i) & (ii) is provided on Straight Line Meod as per rate prescribed in Schedule XIV and in accordance wi Section 205(2)(b) of e Companies Act, 1956, considering e life of e Asset.. D. Invements Invements at are intended to be held for more an a year, from e date of acquisition, are classified as Long Term Invements. Long Term Invements, Current Invements and Invements in subsidiaries are carried at co. Unquoted invements are ated at book value. However, provision for diminution in value of invement is made to recognise a decline in e value of invement. E. Debtors Debtors are ated at e book value after making provisions, if any, for e doubtful debts. F. Inventories Inventories of spare parts and oil are valued at co or market price whichever is lower. G. Foreign Currency Transactions (a) Transaction denominated in foreign currencies are recorded at e exchange rate prevailing on e date of e transaction. 23

25 (b) (c) (d) Monetary Items denominated in foreign currency including foreign currency loan at e yearend are reated at e yearend rate. In case of items which are covered by forward exchange contract, e difference between yearend rate and rate on e date of e contract is recognised as exchange difference and premium paid on forward contracts and option contract is recognised over e life of e contract. The difference eier on settlement or on translation of monetary assets and liabilities and realised gain and losses on foreign exchange transaction are recognised in e Profit and Loss account except in cases where ey relate to acquisition of Fixed Assets, e difference arising a result in which case ey are adjued to e carrying co of such assets. Exchange rate difference on year end long tern foreign currency loan is carried to Foreign Currency Monetary Translation Difference Account to be amortised upto e period of loan or upto March 31, 2013 whichever is earlier. Non monetary foreign currency items if any are carried at co. H. Basis of Accounts Revenue/Income and cos/expenditures are generally accounted on accrual as ey are earned or incurred. I. Employee Benefit (a) (b) (c) Monly contribution to e Provident Fund being in e nature of defined contribution scheme is charged again revenue. The fund is adminiered rough Provident Fund Auority. Gratuity is accounted on payment basis on actuarial valuation. Po employment and oer long term employees benefits are recognized at e present value of e amount payable determined using actuarial valuation techniques. Based on e actuarial valuation no provision of Gratuity is required to be made in respect of e po employment and oer long term benefits. J. Borrowing Co Borrowing co at are attributed to e acquisition, conruction of qualifying assets are capitalised as part of such assets upto e date, assets are ready for its intended to use. All oer borrowing cos are recognized as an expense in e year in which ey are incurred. K. Tax on Income Current Tax is determined on e basis of e amount of tax payable in respect of taxable income for e year. Deferred tax is calculated at current atutory income tax rate and is recognized on timing differences; being e difference between taxable income and accounting income at originate in e one period and are capable of reversal in one or more subsequent periods. Deferred tax assets subject to e consideration of prudence, are recognized and carried forward only to e extent at ere is a reasonable certainty at sufficient future taxable income will be available again which such deferred tax assets can be realized. L. Income Company s Income comprises of Work over Rig Services, Gas Compression and Air Compression and Oer Oil and Gas Services. M. Provision, Contingent Liabilities and Contingent Assets. Provision is recognised when ere is a present obligation as a result of a pa event at probably requires an outflow resources and a reliable eimate can be made of e amount of e obligation. Disclosure for contingent liability is made when ere is a possible obligation or a present obligation at may, but probably will not, require an outflow of resources. No provision is recognised or disclosure for contingent liability is made when ere is possible obligation or a present obligation and e likelihood of outflow of resources is remote. Contingent Asset is neier recognized nor disclosed in e financial atements. N. Cash Flow Statement Cash flows are reported using e Indirect Meod, whereby Profit/ (Loss) before extraordinary items and tax is adjued for e effects of transactions of non-cash nature and any deferral of accruals of pa or future cash receipts and payments. The cash flow from Operating, Inveing and financing activities of e company are segregated based on available information. 24

26 NOTES FORMING PARTS OF FINANCIAL STATEMENTS 25 ANNUAL REPORT Particulars ` As at ` As at 31 March, March, 2012 Note - 3 : SHARE CAPITAL 1. AUTHORISED CAPITAL 3,50,00,000 Equity Shares of ` 10/- each wi voting rights ISSUED, SUBSCRIBED & PAID UP EQUITY SHARE CAPITAL 2,62,50,000 Equity Shares of ` 10/- each fully Paid up wi voting rights (P.Y. 2,48,75,000 Equity Shares of ` 10/- each) (During e year, 13,75,000 Equity shares of ` 10/- each fully paid up were issued on Conversion of Convertible Warrants) TOTAL Reconciliation of number of Equity shares outading at e beginning & at e end of e reporting year As at 31 March 2013 As at 31 March 2012 Particulars (Equity Shares of ` 10 Each Fully Paid up) No of Shares Value ` No of Shares Value ` At e beginning of e year Movement during e period (Shares Warrant Issued and Converted into Equity Shares) Outading at e end of e year Details of Equity Shares held by shareholders holding more an 5% of e aggregate shares in e Company As at 31 March, 2013 As at 31 March, 2012 Name of e Shareholders No. of % of No. of % of (Equity Shares of ` 10 Each Fully Paid up) Share held Holding Share held Holding KANVEL FINANCE PVT. LTD % % SAVLA ENTERPRISE PVT. LTD % % PRABHAVATI PROPERTIES PVT. LTD % % CONVERTIBLE WARRANTS Issued, subscribed & Paid up : (i) 13,75,000 warrants of ` 76/- each to make it & Application Money of ` 19/- each received during e previous year (Previous Year ) (ii) 13,75,000 warrants of ` 76/- each to make it & Application Money of ` 57/- each received during e year Less: 13,75,000 warrants converted to fully paid up equity shares of ` 10/- each at a premium of ` 66 per share (Previous Year ) ( ) 0 ( ) * TOTAL TERMS AND RIGHTS ATTACHED TO WARRANTS: (During e Previous year 27,50,000 Shares Warrants issued at price of ` 76 each of which 13,75,000 Warrant of ` 76 each paid up and ` 19 Each Application monery is received and Balance amount ` 57 received during e year and Converted in to Equity Shares. The offer is made selectively to e Promoters and Relatives of Promoter s Group of e Company. The Warrants carry a right / entitlement to subscribe up to a future date, not exceeding 18 mons from e date of such issue to equivalent number of equity shares of e Company at a price of ` 76/- per share having e face value of ` 10/- each and at a premium of ` 66/- per equity share. The Equity Shares arising out of such conversion are allotted on e Conversion Date and ereupon e Warrants shall be treated as automatically extinguished. The Equity Shares so allotted shall rank pari passu in all respects wi e exiing shares of e Company and eligible for dividend, if any declared by e Company from time to time. The name of e Warrant holder shall be entered into e Regier of Members of e Company as e holder of e Equity Shares upon such allotment.

27 26 ANNUAL REPORT Warrant holders will not be entitled to any of e rights and privileges available to e shareholders including e right to receive notices of or to attend and vote at e General Meetings. The Warrants are issued only in physical mode and will not be dematerialized. The Warrants shall not be tradable nor be lied on any of e ock exchanges. If e allottee of warrant does not opt for conversion and does not make balance payment wiin 18 mons, e amount paid on application and allotment will be forfeited. The amount payable on application shall be ` 19.00/- per convertible warrant and e balance amount of ` 57.00/- shall be payable wiin 18 mons from e date of allotment. * Money Received towards convertible warrants have been been utilized for e projects of e company. 6-(i). The Company has only one class of equity shares having a par value of ` 10 per share, each shareholder is elligible for one vote per share. The Company delcares and pays dividend in Indian Rupees. Dividend Proposed by Board of Directors is subject to approval of Shareholders in e ensuing Annual General Meeting. 6-(ii) In e event of liquidation, e Equity Sharesholders are eligible to receive e remaining Assets of e company after Diribution of all Preferential amount, in proportion to Shareholding. 7. Company has not alloted any bonus shares, Shares wiout consideration in cash and/or bought back any equity shares during e priod of five years immediately preceeding e Balance sheet date. Sr. Particulars As at As at No 31 March, March, 2012 Note - 4 : RESERVES & SURPLUS A Capital Reserve - Securities Premium Opening Balance Addition during e year Written back during e year 0 0 Closing Balance B Capital Reserve Opening Balance Addition during e year 0 0 Written back during e year 0 0 Closing Balance C General Reserve Opening Balance Addition during e year Written back during e year 0 0 Closing Balance D Invement Reserve Fund Opening Balance Addition during e year Written back during e year 0 0 Closing Balance E Foreign Currency Monetary Translation Reserve Opening Balance Add; Effect of Foreign Exchange Rate Variation During e year (Less): Transfer to Statement of Profit & Loss 0 (636720) Closing Balance F Surplus in Statement of Profit & Loss Opening Balance Addition during e year Less: Proposed Equity Dividend for e year ( ) ( ) Less: Tax on Proposed Equity Dividend ( ) ( ) Less: Invement Reserve Fund (13950) (85250) Less: Transfer to General Reserve ( ) ( ) Closing Balance TOTAL

28 Sr. Particulars As at As at No 31 March, March, 2012 Note - 5 : LONG TERM BORROWINGS I) Term Loans A From Banks Secured Less: Short Borrowings Due wiin next 12 Mons ( ) ( ) TOTAL B From Oers Financial Initution 0 Secured Less: Short Borrowings Due wiin next 12 Mons 0 (577593) TOTAL 0 0 TOTAL Nature of Security and Term of Repayment for Long Term Secured borrowings i) Rupee Term Loan and Foreign Currency Term Loan from State Bank of India as mentioned above is secured by hypoecation of Air Compressor, Gas Compressor, Work over Rigs and oer Misc. Assets and furer secured by personal guarantee of Directors and equitable mortgage of immovable properties situated at Ahmedabad and Modasa held in e name of director and relative of director. Though Rollover Period of Foreign Currency Term Loan is less an 12 Mon from e Balance Sheet date, e tenure of Term Loan for which arrangement is made is more an 12 Mons. Hence, Foreign Currency Term Loan arrangement is classified as Non-Current Liabilities. ii) Buyer s Credits are obtained from overseas branches of State Bank of India which are backed by Letter of Undertaking from State Bank of India, Commercial Branch, Ahmedabad which has sanctioned e Term Loan. Though Rollover Period of Buyers credit is leshan 12 Mon from e Balance Sheet date, e tenure of Term Loan for which arrangement is made is more an 12 Mons. Hence, Buyers Credit arrangement is classified as Non-Current Liabilities. iii) During e financial year , Company has availed Foreign Currency Term Loan credit facility from Export Import Bank of India (EXIM Bank), Moratorium Period provided by e Bank for a period of 18 Mons from 08/09/2011.The Term Loan is secured by Pari Passu charge on e securities as mentioned in para i above. As Inallment is Due after 31/03/2013 (after 12 Mon from Balance sheet) it is classified as Non-Current Liabilities. iv) During e financial year , Company has availed Term Loan credit facility from Indurial Development Bank of India Ltd. (IDBI Bank) wi Moratorium Period provided by e Bank for a period of 18 Mons from 1 Disbursement i.e.17/02/2012. IDBI Term Loan is secured by Pari Passu charge on e securities as mentioned in para i & iii above. As Inallment is Due after 31/03/2013 (after 12 Mon from Balance sheet) it is classified as Non-Current Liabilities. v) Repayment of Term Loan of State Bank of India are repayable in Five years. Term Loan of EXIM Bank and IDBI Bank are repayable in Seven years wi moratorium period as ated here in above. Note - 6 : DEFERRED TAX LIABILITIES Opening Balance Addition during e year Written back during e year Closing Balance Note - 7 : OTHER LONG TERM LIABILITIES A Acceptance (Refer Note 27 Point M ) i Acceptance ii Oer an Acceptance a Buyer s Credit Intere accrued but not due on borrowings b Oers TOTAL

29 28 ANNUAL REPORT Sr. Particulars As at As at No 31 March, March, 2012 Note - 8 : SHORT TERM BORROWINGS A SECURED i Working Capital Credit facility* - From Bank ii Buyers credit arrangements 0 0 iii Foreign Currency Term Loan iv Term Loan v Vehicle Loan from Bank and Oer Financial Initution (Secured by Hypoecation of Vehicles and Personal Gurantee of Directors) * - (Working Capital cash credit facilities of State Bank of India is secured by Hypoecation of Inventory and Book Debt and Furer secured by Personal Gurantee of Director and Equitable Mortgage of Immovable property situated at Ahmedabad and Modasa held in e name of Directors and Relative of Directors. - (Working Capital Facility of IDBI is secured by Second Charge on Secutiries as mentioned in hereinabove). TOTAL B UNSECURED LOANS 0 0 TOTAL Note - 9 : TRADE PAYABLES A Acceptance (Refer Note 27 Point M ) B Oer an Acceptance 0 0 TOTAL Note - 10 : OTHER CURRENT LIABILITIES A Statutory Dues B Unclaimed Dividend C Oer Liabilities 0 0 TOTAL Note - 11 : SHORT TERM PROVISIONS A Provision for Salary B Provision for Current Year Income Tax C Proposed Dividend D Tax on Proposed Equity Dividend E Provision for Oer Expense TOTAL Note - 12 : FIXED ASSETS NAME OF THE ASSET Gross Block Depreciation Net Block Sr. As at Additions Deduction As at As at Additions Deduction As at As at As at during during during e during e e year e year year year (A) Tankers (B) Cranes (C) Vehicles (D) Air Compressor (E) Gas Compressor (F) Computers (G) Shed, Foundation & Road (H) Office Building (I) RIGS (J) Office Equp, Fur. & Fixtures (K) Oer Plant & Machinery Total A B) (A) Tangible Assets Softwares Total B C) (A) Capital Work in Progress Capital Work in Progress Total C Total A + B + C PREVIOUS YEAR Notes : * Addition Include Foreign Exchange Difference of ` (Previous Year ` ( )) and Borrowing Co of ` (Previous Year ` )

30 Sr. No Particulars No. of As at No. of As at Shares 31 March, 2013 Shares 31 March, 2012 Note -13: NON-CURRENT INVESTMENTS Trade Invements UNQUOTED: A In Equity Shares of Subsidiary Companies: 90% share in Deep Energy LLC % share in Deep Natural Resources Ltd % share in Prabha Energy Pvt. Ltd B In Oer Entities: QUOTED: 1. Ganesh Benzopla Limited Vama Induries Limited Power Trading Corporation UNQUOTED: 1. Mehsana Nagarik Co-Op Sahakari Bank Ltd National Saving Certificate TOTAL Market Value of Quoted Invement Book Value of Unquoted Invement Sr. Particulars As at As at No 31 March, March, 2012 Note - 14 : LONG TERM LOANS AND ADVANCES Advances Recoverable in Cash or Kind: A Deposits Unsecured, Considered good 0 0 B Loans and Advances Unsecured, Considered good (Loan given to Subisidiary Company) C Balance wi Govt. Auorities (Unsecured, Considered Good) VAT Receivable D Oer Loans and Advances (Unsecured, Considered good) Advances to Vendors Oer Advance TOTAL Note - 15 : OTHER NON-CURRENT ASSETS Long Term Trade Receivables Outanding for more an Twelve Mons Unsecured, Considered good TOTAL Note - 16 : CURRENT INVESTMENTS Sr. No Particulars No. of As at No. of As at Units 31 March, 2013 Units 31 March, 2012 Invements in Mutual Fund Unquoted A SBI DFS - 15 MONTH-5- GROWTH B Templeton India Income Opportunities Fund C SBI DEBT FUND SERIES- 367 DAYS 1 GROWTH D SBI Magnum Income Fund - Grow TOTAL Market Value of Unquoted invements

31 Sr. Particulars As at As at No 31 March, March, 2012 Note - 17 : INVENTORIES A Stores & Spares (Valued at Lower of Co or Market Value) B Stock of Oil TOTAL Note - 18: TRADE RECEIVABLES A Trade receivables outanding for a period exceeding Six mons from e date ey are due for payment Unsecured, considered good B Trade receivables outanding for a period less an Six mons from e date ey are due for payment Unsecured, considered good TOTAL Note - 19 : CASH AND CASH EQUIVALENTS A Cash and Cash Equivalents i Cash on hand ii Balances wi Banks - In Current Account In EEFC Account Unpaid Dividend wi HDFC Bank Unpaid Warrant wi HDFC Bank B Oer Bank Balances In Fixed Deposits held as Margin Money * TOTAL * Balance wi Bank include Deposit held as Margin Money amouting to ` (as at 31/03/2012 ` ) which have an original maturity more an 12 mon. Note - 20 : SHORT TERM LOANS AND ADVANCES Advances to be Recoverable : 1 Security Deposits Loan to Staff Prepaid Expenses Balance wi Govt Auorities - CENVAT Receivable Advance Tax and TDS for Prior Years (Net of Provision) Advance Tax and TDS Current Year Professional Tax Receivable Oers - Foreign Currency Receivable TOTAL Note - 21 : OTHER CURRENT ASSETS 1 Intere Accrued on Deposit Prelimnary Expense Deferred Forward Premium Advance Recoverable in Cash or Kind: Oers Receivable TOTAL

32 Sr. Particulars As at As at No 31 March, March, 2012 Note - 22 : OTHER INCOME 1 Bank FDR Intere (TDS ` 4,53,146) Oer Intere Income (TDS ` 10,008) Dividend Income from Oers Profit on Sale of Invements Exchange Rate Fluctuation (net) Oer Non-Operating Income: - Kasar Vatav Insurance Claim Received Tender Fee TOTAL Note - 23 : OPERATING EXPENSE 1 Consumption Spares, Oil & Oer Operating Expense Equipment Running & Maintainence Exps TOTAL Note - 24 : EMPLOYEE BENEFITS EXPENSE 1 Salaries, Wages, Bonus etc Director Remuneration & Perquisities Contribution to Provident and Oer funds Staff Welfare expenses TOTAL Note - 25 : FINANCE COSTS Intere Expenses 1 Intere Expenses on Hypoecation & Term loan Intere & Finance Charges on Foreign Credit Oer Intere & Finance Charges Oer Borrowing Co Oer Bank Charges Foreign Currency Transaction & Translation Expenses: Forward/ Option Contract Premium TOTAL

33 32 ANNUAL REPORT Sr. Particulars As at As at No 31 March, March, 2012 Note - 26 : OTHER EXPENSES 1 Electricity Expenses Rent Repairs Insurance Rates & Taxes Communication Exp Traveling Exp. (Including Director Travelling ` 26,60,273) Printing & Staionery Donations Legal & Professional Charges Payment to Auditors - Audit Fees Taxation Matters Certification & Oer Matters Net Loss on Foreign currency transaction Bad Debt Written off Loss on Sale of Fixed Asset Xerox expense Gue House Expenses Conveyance Expense Entertainment Expense Sales Promotion & Gifts Advertisement Expenses Hotel Boarding & Lodging Exp (Including Director Lodging) Security Service charges Tender Expenses Office Expenses Liing Fee Stock Exchange Intere on Service tax Freight & Landing Charges Diesel & Petrol Exp Labour Charges - Misc ROC Filing Fee ISO Certification Expenses Safety Expenses Service Tax Expense Gue House Electricity Expense Franking Charges Miscellaneous Expenses TOTAL Note 27 :Additional Information pursuant to Revised Schedule VI to e Companies Act, 1956 is given as under so far as applicable to e Company. Particulars A Value of imports calculated on CIF basis Capital Goods, Freight, Insurance ` 98,33,921/- ` 62,81,32,825/- Spare Parts & Expenses ` 3,53,32,597 /- ` 2,74,73,009/- B Expenditure in Foreign Currency Spares, Equipment, Freight & Expense ` 2,33,41,927 /- ` 65,56,05,834/- Director s Travelling Expenses ` 27,45,770 /- ` 15,92,744/- Intere on Foreign Loan ` 1,90,78,821/- ` 4,44,71,86/- C Earnings in Foreign Currency NIL - - D. Considering nature of activity it is not possible to ascertain e elements of Capital Commitment Expenditure to be executed on capital account.

34 33 ANNUAL REPORT E Contingent Liabilities: i. Bank Guarantees The company has given counter guarantees aggregating to ` Lacs(31 March 2012 ` Lacs) to banks as at 31 March ii. Oer Contingent Liabilities not provided for; Name of Statute Amount ( ` Lacs) Amount ( ` Lacs) Service tax F The specified disclosures for non cancellable Operating Leases as required by Accounting Standard 19 Leases are given below: Particulars Year Ended 31 Year Ended 31 March 2013 ( ) March 2012 ( ) Disclosures in respect of agreement for Office premises taken on lease: (i) Lease Payments recognized in e Profit and Loss Account in e year 74,23,183/- 91,20,840/- (ii) Future Minimum lease payments under non cancellable operating lease: - Not later an one year 58,12,587/- 91,20,840/- - Later an one year but not later an five years 65,58,111/- 2,47,78,281/- - Later an Five year Nil Nil G. Segment Reporting The Company is engaged in e one segment i.e. Oil and Gas service activity having mainly e domeic hire charges income and ere are no separate reportable segments as per Accounting Standard 17 - Segment Reporting issued by e Council of e Initute of Chartered Accountants of India. H. Impairment of Assets The carrying amounts of assets are reviewed at each balance sheet date, if ere is any indication of impairment based on internal/external factors. An impairment loss will be recognised wherever e carrying amount of an asset exceeds its eimated recoverable amount. The recoverable amount is greater of e assets net selling price and value in use. In assessing e value in use e eimated future cash flows are discounted to e present value at e weighted average co of capital. During e year ere are no impairment losses on assets of e Company. I. The Company during e Financial Year has received ` 7,83,75,000/- towards e balance value on 13,75,000 Convertible Warrants which were issued during e financial year The said allottees have made full payment for 13,75,000 warrants i.e. ` 76 each. On full payment of 13,75,000 warrant, e said allottees have exercised eir option of conversion of Warrants to equity shares on On conversion on , ` 1,37,50,000 is transferred to Issued Capital being issue of 13,75,000 equity shares of ` 10/- each and ` 9,07,50,000/- is transferred to Securities Premium account being Share premium of ` 66/- each. J. As per Accounting Standard - 18, e disclosures of transactions wi e related parties as defined in e Accounting Standard are given below: (i) Li of related parties where control exis and related parties, wi whom transactions have taken place and relationships Subsidiary Company Deep Energy LLC, USA Deep Natural Resources Limited Prabha Energy Pvt. Ltd. Enterprises significantly influenced by KMP or RKMP Deep Meane Private Limited Adina Exim Resources Limited Shree Kuchhi Jain Sewa Samaj Key Management Personnel Mr. Paras Savla Mr. Rupesh Savla Mr. Dharen Savla Mr. Premsingh Sawhney Mr. Ajaykumar Singhania Mr. Vijay Shah Mr. Harish Bhinde Mr. Kirit Joshi Relative of Key Management Personnel (RKMP) Mr. Manoj Savla Mrs. Avani Savla Mrs. Mita Manoj Savla Mrs. Priti Paras Savla Mrs. Shital Rupesh Savla

35 (i) Transactions during e financial year wi e related parties are shown below: Nature of transaction KMP RKMP Subsidiaries Enterprises significantly influenced Remuneration & Sitting fees ( ) (96000) Contribution to charitable initutions (NIL) Rent ( ) ( ) (372000) Security Deposit ( ) ( ) Perquisites (250003) Loan Given (486548) Loan Received Back ( ) Outanding Loan Balance at Year End ( ) Invement ( ) Note: Figures in bracket represents previous year s figures K. In compliance of Accounting Standard 22 on Accounting for taxes on Income issued by Initute of Chartered Accountants of India, e Company has provided Accumulated net deferred tax liability in respect of timing difference as on 31 March, The item - wise details of deferred tax liability as on are as under: ( ` in Lacs) Deferred Tax Liability Difference between book and tax difference as on 1 April Add/(Less): Deferred Tax Liability (net) (a) On account of Depreciation and oer expense (net) Less : Deferred Tax Assets - - Deferred Tax Liability (Net) Difference between book and tax difference as on 31 March L. Earnings per Share The earnings considered in ascertaining e Company s EPS represent profit for e year after tax. Basic EPS is computed and disclosed using e weighted average number of equity shares outanding during e year. Calculation of EPS Particulars Profit after tax ( ` in lacs) Weighted Average Number of shares considered as outanding in computation of Basic EPS Weighted Average Number of shares considered as outanding in computation of Diluted EPS Basic EPS, Shares of face value of ` 10 each (in `) Diluted EPS, Shares of face value of ` 10 each (in `)

36 M. Current Liability related to Micro, Small and Medium Enterprises The Company has not received information from vendors regarding eir atus under e Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amount unpaid to as at year end togeer wi intere paid /payable under is Act have not been given. The Company is making efforts to get e confirmation from e vendors as regards eir atus under e Act. N. The previous year figures have been accordingly regrouped/ re-classified to conform to e current year s classification. Signature to Note 1 to 27 As per our report of even date attached For & on Behalf of Jayesh M. Shah & Co. Chartered Accountants F. R. N W Jayesh M.Shah Proprietor M. No Date : 25 May 2013 Place : Ahmedabad Bhavika Bhatt Company Secretary For Deep Induries Limited Paras Savla Chairman & Managing Director Date : 25 May 2013 Place : Ahmedabad Rupesh Savla Managing Director 35

37 Statement Pursuant to Section 212 of e Companies Act, 1956 relating to Subsidiary Companies Sr. Particulars Deep Natural Prabha Energy Deep Energy No. Resources Limited Private Limited LLC 1 Financial years of e Subsidiary Company ended on 31 March, March, March, Shares of e Subsidiary Company held on e above date and extent of holding a) Equity Shares b) Extent of Holding 70% 71% 90% 3 The net aggregate amount of e Subsidiaries profit/(loss) so far as it is concerned wi e members of e Deep Induries Limited i) Not dealt wiin e holding company s accounts a) For e financial year of e Subsidiary ` ` ( ` 7234) (US$ ) b) For e previous financial years of e Subsidiary/since it became e ( ` ) ` 8497 ( ` ) Holding company s subsidiary (US$ )) ii) Dealt wiin e holding company s accounts a) For e financial year of e Subsidiary NIL NIL NIL b) For e previous financial years of e Subsidiary/since it became e NIL NIL NIL Holding company s subsidiary For Deep Induries Limited Date : 25/05/2013 Place : Ahmedabad Bhavika Bhatt Company Secretary Paras Savla Chairman & Managing Director Rupesh Savla Managing Director 36

38 37 ANNUAL REPORT

39 CONSOLIDATED INDEPENDENT AUDITOR S REPORT ANNUAL REPORT To, The Members, Deep Induries Limited. 1. We have audited e accompanying consolidated financial atements of ( e Company ) and its subsidiaries ( e Company and its subsidiaries conitute e Group ) as at 31 March, 2013 which comprise e Consolidated Balance Sheet as at 31 March, 2013 and consolidated Profit and Loss Account and e consolidated Cash Flow Statement for e year en ended, and a summary of significant accounting policies and oer explanatory information on at date annexed ereto. 2. Management is responsible for e preparation of ese consolidated financial atements at give a true and fair view of e Consolidated financial position, consolidated financial performance and Consolidated cash flows of e Company in accordance wi e Accounting Standards referred to in sub-section (3C) of section 211 of e Companies Act, 1956 ( e Act ). This responsibility includes e design, implementation and maintenance of internal control relevant to e preparation and presentation of e financial atements at give a true and fair view and are free from material misatement, wheer due to fraud or error. 3. Our responsibility is to express an opinion on ese Consolidated financial atements based on our audit. We conducted our audit in accordance wi e Standards on Auditing issued by e Initute of Chartered Accountant of India. Those Standards require at we comply wi eical requirements and plan and perform e audit to obtain reasonable assurance about wheer e consolidated financial atements are free from material misatement. 4. An audit involves performing procedures to obtain audit evidence about e amounts and disclosures in e financial atements. The procedures selected depend on e auditor s judgment, including e assessment of e risks of material misatement of e financial atements, wheer due to fraud or error. In making ose risk assessment, e auditor considers internal control relevant to e Company s preparation and fair presentation of e financial atements in order to design audit procedures at are appropriate in e circumances. An audit includes evaluating e appropriateness of accounting policies used and e reasonableness of e accounting eimates made by management, as well as evaluating e overall presentation of e financial atements. We believe at our audit provides a reasonable basis for our opinion. 5. In our opinion and to e be of our information and according to e explanations given to us, e financial atements give e information required by e Act in e manner so required and give a true and fair view in conformity wi e accounting principles generally accepted in India i. in e case of e consolidated Balance Sheet, of e ate of affairs of e Company as at 31 March, 2013 ; and ii. in e case of e consolidated Profit and Loss Account, of e profit for e year ended on at date ; and iii. In e case of consolidated Cash Flow atement, of e cash flows for e year ended on at date. 6. We did not audit e financial atements of Foreign Subsidiary namely Deep Energy LLC, whose financial atements reflect total assets of ` 16,42,926/- as at 31 March 2013 and Total Revenue of ` NIL and Cash outflow amounting to ` 8,038/- for e year en ended. And on e unaudited financial atements wherein e Company s share of loss aggregates to ` 7,234/-. 7. We have relied on ese Un-audited Financial Statements which are approved by e Member/Manager of Deep Energy LLC and as approved by e Management and our report in so far as it relates to e amount included in respect of e Subsidiary is based solely on such approved un-audited Financial Statements. 8. We report at e Consolidated Financial Statements have been prepared by e Companies Management in accordance wi e requirement of Accounting Standard 21, Consolidated Financial Statement as notified by Companies (Accounting Standards) Rules, FOR AND ON BEHALF OF JAYESH M. SHAH & CO. Chartered Accountants Firm Reg. no W Place : Ahmedabad (JAYESH M. SHAH) Date : 25 May, 2013 Proprietor Mem. No. :

40 39 ANNUAL REPORT CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH 2013 Particulars Note No As at As at 31 March March 2012 I. EQUITY AND LIABILITIES 1 Shareholders Funds (a) Share Capital (b) Reserves and Surplus (c) Money Received Again Shares Warrants Share Application Money pending for Allotement Minority Intere Non-current Liabilities (a) Long-term Borrowings (b) Deferred Tax Liabilities (c) Oer Long-term Liabilties Current Liabilities (a) Short-term Borrowings (b) Trade Payables (c) Oer Current Liabilities (d) Short-term Provisions TOTAL ` II. ASSETS 1 Non-current Assets (a) Fixed Assets i) Tangible Assets ii) Intangible Assets iii) Capital Work in Progress (b) Non-current Invements (c) Long-term Loans and Advances (d) Oer Non-Current Assets Current Assets (a) Current Invements (b) Inventories (c) Trade Receivables (d) Cash and Cash Equivalents (e) Short-term Loans and Advances (f) Oer Current Assets TOTAL RS The notes form an integral part of ese financial atements 1 to 27 As per our report of even date attached For & on Behalf of Jayesh M. Shah & Co. Chartered Accountants F. R. N W Jayesh M.Shah Proprietor M. No Date : 25 May 2013 Place : Ahmedabad Bhavika Bhatt Company Secretary For Deep Induries Limited Paras Savla Chairman & Managing Director Date : 25 May 2013 Place : Ahmedabad Rupesh Savla Managing Director

41 STATEMENT OF CONSOLIDATED PROFIT AND LOSS FOR THE YEAR ENDED ON 31ST MARCH 2013 Particulars Note No For e Year For e Year Ended 31/03/2013 Ended 31/03/2012 I. INCOME Revenue from Oil & Gas Services Sales (Trading) II Oer Income III Total Revenue (I + II) IV Expenses - Trading Purchase Operating Expense Employee benefits expenses Finance Cos Depreciation and amortization expense Oer Expenses Prelimnary Expense Written Off Total Expenses V Profit before exceptional items and tax (III - IV) VI Exceptional items VII Profit/(Loss) before tax (V - VI) VIII Tax Expense : (1) Current Tax (2) Current Tax ( Expense related to Prior Years) (3) Deferred Tax (Net off Deferred Tax Asset) IX Profit / (Loss) for e year (VII - VIII) X Earnings per Equity Share of ` 10 each Basic Diluted The notes form an integral part of ese financial atements 1 to 27 As per our report of even date attached For & on Behalf of Jayesh M. Shah & Co. Chartered Accountants F. R. N W Jayesh M.Shah Proprietor M. No Date : 25 May 2013 Place : Ahmedabad Bhavika Bhatt Company Secretary 40 For Deep Induries Limited Paras Savla Chairman & Managing Director Date : 25 May 2013 Place : Ahmedabad Rupesh Savla Managing Director

42 41 ANNUAL REPORT CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED ON PARTICULARS CASH FLOWS FROM OPERATING ACTIVITIES : Net Profit before tax as per Profit & Loss Account Adjument for : Depreciation Expenses Intere Expenses Dividend Income Intere Income (Gain)/ Loss Foreign Currency Fluctuation (Profit)/Loss on Sale of Invements (Profit)/Loss on Sale of Fixed Assets Preliminary Expenses Written Off Operating Profit before Working Capital Changes Changes in Working Capital Adjument for Inventories Trade Receivables Loans & Advances Trade Payable & Oer Liabilities CASH FLOW FROM OPERATION Cash Flow from Exceptional Claim Income Tax Paid During e Year (Net off Refund Received) NET CASH GENERATED BY OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES : Purchase of Fixed Assets & Addition in Capital Working Progress Sale of Fixed Assets Purchase of Invements Sale of Invements Intere Income Dividend Income Profit from Sale of Invements NET CASH USED IN INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES : Intere Paid Foreign Currency Fluctuation Gain Proceeds from Issue of Share Capital/Convertible Warrants ( Net of Expenses / Recovery of Expenses) Capital Reserve Proceeds from Secured Loans Dividend and Dividend Diribution Tax Paid NET CASH FROM FINANCING ACTIVITIES NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE CLOSE OF THE YEAR As per our report of even date attached For & on Behalf of Jayesh M. Shah & Co. Chartered Accountants F. R. N W Jayesh M.Shah Proprietor M. No Date : 25 May 2013 Place : Ahmedabad Bhavika Bhatt Company Secretary For Deep Induries Limited Paras Savla Chairman & Managing Director Date : 25 May 2013 Place : Ahmedabad Rupesh Savla Managing Director

43 Note 1: Principal of Consolidation NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ANNUAL REPORT The Consolidated financial atements (CFS) relate to Deep Induries Limited ( The Company ) and its subsidiary companies. The CFS has been prepared in accordance wi Accounting Standard 21 on Consolidated Financial Statements (AS 21) notified by Companies (Accounting Standards) Rules, 2006 on e following basis: (a) (b) (c) (d) The financial atements of e company and its Subsidiary companies have been combined on a line by line basis by adding togeer e book values of like items of assets, liabilities, income and expenses, after fully eliminating intragroup balances and intra-group transactions resulting in unrealised profit or losses as per Accounting Standard 21 on Consolidated Financial Statements (AS 21) notified by Companies (Accounting Standards) Rules, In case of Foreign subsidiaries being Non-integral operations revenue items are consolidated at e average rate prevailing during e year. All assets and liabilities are converted at e rates prevailing at e end of e year. Any exchange difference arising on consolidation is recognized in e Foreign Currency Translation reserve. The difference between e Co of Invements in e subsidiary and e Company s share of net assets at e time of acquisition of shares in e subsidiary is recognized in e financial atement as Goodwill or capital reserve as e case may be. Minority intere in e net assets of Consolidated subsidiaries is identified and presented in e Consolidated Balance Sheet separately from Liabilities and e Equity of Company s shareholders. Minority intere in e net assets of Consolidated subsidiaries consis of - Amount of equity attributable to minorities at e date on which invement in a subsidiary is made and - The minorities share of movements in equity since e date e parent subsidiary relationship came into exience. (e) (f) (g) Minority intere s share of net profit/loss for e year of Consolidated subsidiaries is identified and adjued again e profit after tax of e Group. As far as possible e Consolidated financial atements are prepared using uniform accounting policies for like transactions and oer events in similar circumances and are presented in e same manner as e Company s separate financial atements. The financial atements of e subsidiary Deep Energy LLC used in e consolidation are drawn up to e same reporting date as at of e Company, i.e. 31 March The li of subsidiary companies which are included in e consolidation and e Company s holdings erein are as under: Name of subsidiary Percentage of Ownership Country of Incorporation Deep Energy LLC USA Deep Natural Resources Limited India Prabha Energy Private Limted India NOTE : 2 SIGNIFICANT ACCOUNTING POLICIES A. Invements Invements oer an in subsidiaries have been accounted as per Accounting Standard (AS-13) Accounting for Invements. B. Oer Significant Accounting Policies These are set out under Significant Accounting Policies under Note 2 as given in e Standalone Financial Statement of Deep Induries Limited. Financial Statements are based on hiorical co and are prepared on accrual basis. C. In e opinion of e board, e current assets, loans and advances are approximately of e value ated if realized in e ordinary course of business. The provision for all known liabilities are adequate and not in excess of e amount reasonably necessary. 42

44 NOTES FORMING PARTS OF FINANCIAL STATEMENTS 43 ANNUAL REPORT Particulars ` As at ` As at 31 March, March, 2012 Note - 3 : SHARE CAPITAL 1. AUTHORISED CAPITAL 3,50,00,000 Equity Shares of ` 10/- each wi voting rights ISSUED, SUBSCRIBED & PAID UP EQUITY SHARE CAPITAL 2,62,50,000 Equity Shares of ` 10/- each fully Paid up wi voting rights (P.Y. 2,48,75,000 Equity Shares of ` 10/- each) (During e year, 13,75,000 Equity shares of ` 10/- each fully paid up were issued on Conversion of Convertible Warrants) TOTAL Reconciliation of number of Equity shares outading at e beginning & at e end of e reporting year As at 31 March 2013 As at 31 March 2012 Particulars (Equity Shares of ` 10 Each Fully Paid up) No of Shares Value ` No of Shares Value ` At e beginning of e year Movement during e period (Shares Warrant Issued and Converted into Equity Shares) Outading at e end of e year Details of Equity Shares held by shareholders holding more an 5% of e aggregate shares in e Company As at 31 March, 2013 As at 31 March, 2012 Name of e Shareholders No. of % of No. of % of (Equity Shares of ` 10 Each Fully Paid up) Share held Holding Share held Holding KANVEL FINANCE PVT. LTD % % SAVLA ENTERPRISE PVT. LTD % % PRABHAVATI PROPERTIES PVT. LTD % % CONVERTIBLE WARRANTS Issued, subscribed & Paid up : (i) 13,75,000 warrants of ` 76/- each to make it & Application Money of ` 19/- each received during e previous year (Previous Year ) (ii) 13,75,000 warrants of ` 76/- each to make it & Application Money of ` 57/- each received during e year Less: 13,75,000 warrants converted to fully paid up equity shares of ` 10/- each at a premium of ` 66 per share (Previous Year ) ( ) 0 ( ) * TOTAL TERMS AND RIGHTS ATTACHED TO WARRANTS: (During e Previous year 27,50,000 Shares Warrants issued at price of ` 76 each of which 13,75,000 Warrant of ` 76 each paid up and ` 19 Each Application monery is received and Balance amount ` 57 received during e year and Converted in to Equity Shares. The offer is made selectively to e Promoters and Relatives of Promoter s Group of e Company. The Warrants carry a right / entitlement to subscribe up to a future date, not exceeding 18 mons from e date of such issue to equivalent number of equity shares of e Company at a price of ` 76/- per share having e face value of ` 10/- each and at a premium of ` 66/- per equity share. The Equity Shares arising out of such conversion are allotted on e Conversion Date and ereupon e Warrants shall be treated as automatically extinguished. The Equity Shares so allotted shall rank pari passu in all respects wi e exiing shares of e Company and eligible for dividend, if any declared by e Company from time to time. The name of e Warrant holder shall be entered into e Regier of Members of e Company as e holder of e Equity Shares upon such allotment.

45 44 ANNUAL REPORT Warrant holders will not be entitled to any of e rights and privileges available to e shareholders including e right to receive notices of or to attend and vote at e General Meetings. The Warrants are issued only in physical mode and will not be dematerialized. The Warrants shall not be tradable nor be lied on any of e ock exchanges. If e allottee of warrant does not opt for conversion and does not make balance payment wiin 18 mons, e amount paid on application and allotment will be forfeited. The amount payable on application shall be ` 19.00/- per convertible warrant and e balance amount of ` 57.00/- shall be payable wiin 18 mons from e date of allotment. * Money Received towards convertible warrants have been been utilized for e projects of e company. 6-(i). The Company has only one class of equity shares having a par value of ` 10 per share, each shareholder is elligible for one vote per share. The Company delcares and pays dividend in Indian Rupees. Dividend Proposed by Board of Directors is subject to approval of Shareholders in e ensuing Annual General Meeting. 6-(ii) In e event of liquidation, e Equity Sharesholders are eligible to receive e remaining Assets of e company after Diribution of all Preferential amount, in proportion to Shareholding. 7. Company has not alloted any bonus shares, Shares wiout consideration in cash and/or bought back any equity shares during e priod of five years immediately preceeding e Balance sheet date. Sr. Particulars ` As at ` As at No 31 March, March, 2012 Note - 4 : RESERVES & SURPLUS A Capital Reserve - Securities Premium Opening Balance Addition during e year Written back during e year 0 0 Closing Balance B Capital Reserve Opening Balance Addition during e year 0 0 Written back during e year 0 0 Closing Balance C General Reserve Opening Balance Addition during e year Written back during e year 0 0 Closing Balance D Invement Reserve Fund Opening Balance Addition during e year Written back during e year 0 0 Closing Balance E Foreign Currency Monetary Translation Reserve Opening Balance Add; Effect of Foreign Exchange Rate Variation During e year (Less): Transfer to Statement of Profit & Loss 0 (636720) Closing Balance F Surplus in Statement of Profit & Loss Opening Balance Addition during e year Add: (Profit)/Loss of Minority Intere (73577) Less: Proposed Equity Dividend for e year ( ) ( ) Less: Tax on Proposed Equity Dividend ( ) ( ) Less: Invement Reserve Fund (13950) (85250) Less: Transfer to General Reserve ( ) ( ) Closing Balance G Non-Monetary Foreign Currency Translation Reserve TOTAL

46 Sr. Particulars ` As at ` As at No 31 March, March, 2012 Note - 5 : LONG TERM BORROWINGS I) Term Loans A From Banks Secured Less: Short Borrowings Due wiin next 12 Mons ( ) ( ) TOTAL B From Oers Financial Initution 0 Secured Less: Short Borrowings Due wiin next 12 Mons 0 (577593) TOTAL 0 0 TOTAL Nature of Security and Term of Repayment for Long Term Secured borrowings i) Rupee Term Loan and Foreign Currency Term Loan from State Bank of India as mentioned above is secured by hypoecation of Air Compressor, Gas Compressor, Work over Rigs and oer Misc. Assets and furer secured by personal guarantee of Directors and equitable mortgage of immovable properties situated at Ahmedabad and Modasa held in e name of director and relative of director. Though Rollover Period of Foreign Currency Term Loan is less an 12 Mon from e Balance Sheet date, e tenure of Term Loan for which arrangement is made is more an 12 Mons. Hence, Foreign Currency Term Loan arrangement is classified as Non-Current Liabilities. ii) Buyer s Credits are obtained from overseas branches of State Bank of India which are backed by Letter of Undertaking from State Bank of India, Commercial Branch, Ahmedabad which has sanctioned e Term Loan. Though Rollover Period of Buyers credit is leshan 12 Mon from e Balance Sheet date, e tenure of Term Loan for which arrangement is made is more an 12 Mons. Hence, Buyers Credit arrangement is classified as Non-Current Liabilities. iii) During e year, Company has availed Foreign Currency Term Loan credit facility from Export Import Bank of India (EXIM Bank), Moratorium Period provided by e Bank for a period of 18 Mons from 08/09/2011.The Term Loan is secured by Pari Passu charge on e securities as mentioned in para i above. As Inallment is Due after 31/03/2013 (after 12 Mon from Balance sheet) it is classified as Non-Current Liabilities. iv) During e year, Company has availed Term Loan credit facility from Indurial Development Bank of India Ltd. (IDBI Bank) wi Moratorium Period provided by e Bank for a period of 18 Mons from 1 Disbursement i.e.17/02/2012. IDBI Term Loan is secured by Pari Passu charge on e securities as mentioned in para i & iii above. As Inallment is Due after 31/03/2013 (after 12 Mon from Balance sheet) it is classified as Non-Current Liabilities. v) Repayment of Term Loan of State Bank of India are repayable in Five years. Term Loan of EXIM Bank and IDBI Bank are repayable in Seven years wi moratorium period as ated here in above. Sr. Particulars ` As at ` As at No 31 March, March, 2012 Note - 6 : DEFERRED TAX LIABILITIES Opening Balance Addition during e year Written back during e year 582 Closing Balance Note - 7 : OTHER LONG TERM LIABILITIES A Acceptance (Refer Note 27 Point M ) i Acceptance ii Oer an Acceptance a Buyer s Credit Intere accrued but not due on borrowings b Oers TOTAL

47 46 ANNUAL REPORT Sr. Particulars ` As at ` As at No 31 March, March, 2012 Note - 8 : SHORT TERM BORROWINGS A SECURED i Working Capital Credit facility* - From Bank ii Buyers credit arrangements 0 0 iii Foreign Currency Term Loan iv Term Loan v Vehicle Loan from Bank and Oer Financial Initution (Secured by Hypoecation of Vehicles and Personal Gurantee of Directors) * - (Working Capital cash credit facilities of State Bank of India is secured by Hypoecation of Inventory and Book Debt and Furer secured by Personal Gurantee of Director and Equitable Mortgage of Immovable property situated at Ahmedabad and Modasa held in e name of Directors and Relative of Directors.. - (Working Capital Facility of IDBI is secured by Second Charge on Secutiries as mentioned in hereinabove). TOTAL B UNSECURED LOANS 0 0 TOTAL Note - 9 : TRADE PAYABLES A Acceptance (Refer Note 27 Point M ) B Oer an Acceptance 0 0 TOTAL Note - 10 : OTHER CURRENT LIABILITIES A Statutory Dues B Unclaimed Dividend TOTAL Note - 11 : SHORT TERM PROVISIONS A Provision for Salary B Provision for Current Year Income Tax C Proposed Dividend D Tax on Proposed Equity Dividend E Provision for Oer Expense TOTAL Note - 12 : FIXED ASSETS NAME OF THE ASSET Gross Block Depreciation Net Block Sr. As at Additions Deduction As at As at Additions Deduction As at As at As at during e during e During e During e year year year year (A) Tankers (B) Cranes (C) Vehicles (D) Air Compressor (E) Gas Compressor (F) Computers (G) Shed, Foundation & Road (H) Office Building (I) RIGS (J) Office Equp, Fur. & Fixtures (K) Oer Plant & Machinery (L) Oil Wells Total A B) Intangible Assets (A) Softwares Total B C) Capital Work in Progress Capital Work in Progress Total C Total A + B + C Previous Year Addition include Foreign Exchange Difference ` (Previous Year `( )) and Borrowing Co of ` (Previous year ` )

48 Sr. No Particulars No. of ` As at No. of ` As at Shares 31 March, 2013 Shares 31 March, 2012 Note -13: NON-CURRENT INVESTMENTS Trade Invements UNQUOTED: A In Oer Entities: QUOTED: 1. Ganesh Benzopla Limited Vama Induries Limited Power Trading Corporation UNQUOTED: 1. Mehsana Nagarik Co-Op Sahakari Bank Ltd National Saving Certificate TOTAL Market Value of Quoted Invement Book Value of Unquoted Invement Sr. Particulars ` As at ` As at No 31 March, March, 2012 Note - 14 : LONG TERM LOANS AND ADVANCES Advances Recoverable in Cash or Kind: A Deposits Unsecured, Considered good 0 0 B Loans and Advances Secured, Considered good (US Surety Bond) C Balance wi Govt. Auorities (Unsecured, Considered Good) VAT Receivable D Oer Loans and Advances (Unsecured, Considered good) Advances to Vendors/Creditors Oer Advance TOTAL Note - 15 : OTHER NON-CURRENT ASSETS Long Term Trade Receivables Outanding for more an Twelve Mons Unsecured, Considered good TOTAL Note - 16 : CURRENT INVESTMENTS Sr. No Particulars No. of ` As at No. of ` As at Units 31 March, 2013 Units 31 March, 2012 Invements in Mutual Fund Unquoted A SBI DFS - 15 MONTH-5- GROWTH B Templeton India Income Opportunities Fund C SBI DEBT FUND SERIES- 367 DAYS 1 GROWTH D SBI Magnum Income Fund - Grow E HDFC CASH MANAGEMENT FUND TOTAL Market Value of Unquoted invements

49 48 ANNUAL REPORT Sr. Particulars ` As at ` As at No 31 March, March, 2012 Note - 17 : INVENTORIES A Stores & Spares (Valued at Lower of Co or Market Value) B Stock of Oil TOTAL Note - 18: TRADE RECEIVABLES A Trade receivables outanding for a period exceeding Six mons from e date ey are due for payment Unsecured, considered good B Trade receivables outanding for a period less an Six mons from e date ey are due for payment Unsecured, considered good TOTAL Note - 19 : CASH AND CASH EQUIVALENTS A Cash and Cash Equivalents i Cash on hand ii Balances wi Banks - In Current Account In EEFC Account In ESCROW Account Unpaid Dividend wi HDFC Bank Unpaid Dividend wi IDBI Bank Unpaid Warrant wi HDFC Bank Copper Mark Bank Oklahoma City USA B Oer Bank Balances In Fixed Deposits held as Margin Money * TOTAL * Balance wi Bank include Deposit held as Margin Money amouting to ` (as at 31/03/2012 ` ) which have an original maturity more an 12 mon. Note - 20 : SHORT TERM LOANS AND ADVANCES Advances to be Recoverable : 1 Security Deposits Loan to Staff Prepaid Expenses Short Term Loans and advances Unsecured, considered good Balance wi Govt Auorities - CENVAT Receivable Advance Tax and TDS for Prior Years (Net of Provision) Advance Tax and TDS Current Year Professional Tax Receivable Oers - Foreign Currency Receivable TOTAL Note - 21 : OTHER CURRENT ASSETS 1 Intere Accrued on Deposit Prelimnary Expense Deferred Forward Premium Advance Recoverable in Cash or Kind: Oers Receivable TOTAL

50 Sr. Particulars ` As at ` As at No 31 March, March, 2012 Note - 22 : OTHER INCOME 1 Bank FDR Intere (TDS ` 4,53,146) Oer Intere Income Dividend Income from Oers Profit on Sale of Invements Exchange Rate Fluctuation (net) Commission Income Oer Non-Operating Income: - Kasar Vatav Insurance Claim Received Tender Fee TOTAL Note - 23 : OPERATING EXPENSE 1 Consumption Spares, Oil & Oer Operating Expense Equipment Running & Maintainence Exps TOTAL Note - 24 : EMPLOYEE BENEFITS EXPENSE 1 Salaries, Wages, Bonus etc Director Remuneration & Perquisities Contribution to Provident and Oer funds Staff Welfare expenses TOTAL Note - 25 : FINANCE COSTS Intere Expenses: 1 Intere Expenses on Hypoecation & Term loan Intere & Finance Charges on Foreign Credit Oer Intere & Finance Charges Oer Borrowing Co Oer Bank Charges Foreign Currency Transaction & Translation Expenses: Forward/ Option Contract Premium TOTAL

51 Sr. Particulars ` As at ` As at No 31 March, March, 2012 Note - 26 : OTHER EXPENSES 1 Electricity Expenses Rent Repairs Insurance Rates & Taxes Communication Exp Traveling Exp. (Including Director Travelling ` 26,60,273) Printing & Staionery Donations Legal & Professional Charges Payment to Auditors - Audit Fees Taxation Matters Certification & Oer Matters Net Loss on Foreign currency transaction Bad Debt Written off Loss on Sale of Fixed Asset Xerox expense Gue House Expenses Conveyance Expense Entertainment Expense Sales Promotion & Gifts Advertisement Expenses Hotel Boarding & Lodging Exp (Including Director Lodging) Security Service charges Tender Expenses Office Expenses Liing Fee Stock Exchange Intere on Service tax Freight & Landing Charges Diesel & Petrol Exp Labour Charges - Misc ROC Filing Fee ISO Certification Expenses Safety Expenses Service Tax Expense Gue House Electricity Expense Franking Charges Miscellaneous Expenses TOTAL Note 27 :Additional Information pursuant to Revised Schedule VI to e Companies Act 1956 is given as under so far as applicable to e Company. Particulars A Value of imports calculated on CIF basis Capital Goods, Freight, Insurance ` 98,33,921/- ` 62,81,32,825/- Spare Parts ` 3,53,32,597 /- ` 2,74,73,009/- B Expenditure in Foreign Currency Spares, Equipment, Freight ` 2,33,41,927 /- ` 66,13,32,454/- Bank Charges & Oer Expense ` 8,038 /- ` 2,10,993/- Director s Travelling Expenses ` 27,45,770 /- ` 15,92,744/- Intere on Foreign Loan ` 1,90,78,821/- ` 44,47,186 C Earnings in Foreign Currency Intere Income NIL 67,294/- 50

52 D. Considering nature of activity it is not possible to ascertain e elements of Capital Commitment Expenditure to be executed on capital account. E Contingent Liabilities: i. Bank Guarantees The company has given counter guarantees aggregating to ` Lacs (31 March 2012 ` Lacs) to banks as at 31 March ii. Oer Contingent Liabilities not provided for; Name of Statute Amount ( ` Lacs) Amount ( ` Lacs) Service tax F The specified disclosures for non cancellable Operating Leases as required by Accounting Standard 19 Leases are given below: Particulars Year Ended 31 Year Ended 31 March 2013 ( ) March 2012 ( `) Disclosures in respect of agreement for Office premises taken on lease: (i) Lease Payments recognized in e Profit and Loss Account in e year 74,23,183/- 91,20,840/- (ii) Future Minimum lease payments under non cancellable operating lease: - Not later an one year 58,12,587/- 91,20,840/- - Later an one year but not later an five years 65,58,111/- 2,47,78,281/- - Later an Five year Nil Nil G. Segment Reporting Since 90% of consolidated revenue of e Company and its subsidiaries comes from primary domeic single segment i.e. Oil and Gas service activity and so ere are no separate reportable segments as per Accounting Standard 17 - Segment Reporting issued by e Council of e Initute of Chartered Accountants of India. H. Impairment of Assets The carrying amounts of assets are reviewed at each balance sheet date, if ere is any indication of impairment based on internal/external factors. An impairment loss will be recognised wherever e carrying amount of an asset exceeds its eimated recoverable amount. The recoverable amount is greater of e assets net selling price and value in use. In assessing e value in use e eimated future cash flows are discounted to e present value at e weighted average co of capital. During e year ere are no impairment losses on assets of e Company. I. The Company during e Financial Year has received ` 7,83,75,000/- towards e balance value on 13,75,000 Convertible Warrants which were issued during e financial year The said allottees have made full payment for 13,75,000 warrants i.e. ` 76 each. On full payment of 13,75,000 warrant, e said allottees have exercised eir option of conversion of Warrants to equity shares on On conversion on , ` 1,37,50,000 is transferred to Issued Capital being issue of 13,75,000 equity shares of ` 10/- each and ` 9,07,50,000/- is transferred to Securities Premium account being Share premium of ` 66/- each. J. As per Accounting Standard - 18, e disclosures of transactions wi e related parties as defined in e Accounting Standard are given below: (i) Li of related parties where control exis and related parties, wi whom transactions have taken place and relationships Subsidiary Company Deep Energy LLC, USA Deep Natural Resources Limited Prabha Energy Pvt. Ltd. Enterprises significantly Deep Meane Private Limited Adina Exim Resources Limited influenced by KMP or RKMP Shree Kuchhi Jain Sewa Samaj Key Management Personnel Mr. Paras Savla Mr. Rupesh Savla Mr. Dharen Savla Mr. Premsingh Sawhney Mr. Ajaykumar Singhania Mr. Vijay Shah Mr. Harish Bhinde Mr. Kirit Joshi Relative of Key Mr. Manoj Savla Mrs. Avani Savla Management Personnel (RKMP) Mrs. Mita Manoj Savla Mrs. Priti Paras Savla Mrs. Shital Rupesh Savla 51

53 (i) Transactions during e financial year wi e related parties are shown below: Nature of transaction KMP RKMP Subsidiaries Enterprises significantly influenced Remuneration & Sitting fees ( ) (96000) Contribution to charitable initutions (NIL) Rent ( ) ( ) (372000) Security Deposit ( ) ( ) Perquisites (250003) Note: Figures in bracket represents previous year s figures K. In compliance of Accounting Standard 22 on Accounting for taxes on Income issued by Initute of Chartered Accountants of India, e Group has provided accumulated net deferred tax liability in respect of timing difference as on 31 March, For item - wise details of deferred tax liability as on see Note 6. L. Earnings per Share The earnings considered in ascertaining e Company s EPS represent profit for e year after tax. Basic EPS is computed and disclosed using e weighted average number of equity shares outanding during e year. Calculation of EPS Particulars Profit after tax ( ` in lacs) Weighted Average Number of shares considered as outanding in computation of Basic EPS Weighted Average Number of shares considered as outanding in computation of Diluted EPS Basic EPS, Shares of face value of ` 10 each (in `) Diluted EPS, Shares of face value of ` 10 each (in `) M. Current Liability related to Micro, Small and Medium Enterprises The Company has not received information from vendors regarding eir atus under e Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amount unpaid to as at year end togeer wi intere paid /payable under is Act have not been given. The Company is making efforts to get e confirmation from e vendors as regards eir atus under e Act. N. The Group prepares and represents its financial atements as per Schedule VI to e Companies Act,1956 as applicable to it from time to time. In view of revision to e Schedule VI as per notification issue during e year by e Central Government, e financial atements for e financial year ended 31 March, 2013 have been prepared as per e requirements of e Revised Schedule VI to e Companies Act, The previous year figures have been accordingly regrouped/ re-classified to conform to e current year s classification. As per our report of even date attached For & on Behalf of Jayesh M. Shah & Co. Chartered Accountants F. R. N W Jayesh M.Shah Proprietor M. No Date : 25 May 2013 Place : Ahmedabad Signature to Note 1 to 27 Bhavika Bhatt Company Secretary 52 For Deep Induries Limited Paras Savla Chairman & Managing Director Date : 25 May 2013 Place : Ahmedabad Rupesh Savla Managing Director

54 Regiered Office : Opp. Suryanarayan Bunglows, Sabarmati-Kalol State Highway, Motera, Ahmedabad PROXY FORM Memberships Folio No. DP ID Client ID I/We of being a Member/Members of Deep Induries Limited, hereby appoiint or failing him of or failing him him of as my/our Proxy to attend and vote for me/us and on my/our behalf at e Annual General Meeting of e Company to held on Thursday, e 19 September, 2013 or any adjournment ereof. Signed is Day of Affix Rs.1/- Revenue Stamp Signed by e said of Note : If a member is unable to attend e Meeting, he may sign is form and send it to e Company's Regiered Office at : Opp. Suryanarayan Bunglows, Sabarmati-Kalol State Highway, Motera, Ahmedabad , so as to reach em not less an 48 hours before e Meeting. TERE HERE Regiered Office : Opp. Suryanarayan Bunglows, Sabarmati-Kalol State Highway, Motera, Ahmedabad ATTENDANCE SLIP I hereby record my presence at e Annual General Meeting convened at Conference Room, GCA Club House, Sardar Patel Stadium, Motera, Ahmedabad, Gujarat on Thursday, e 19 September, 2013 Members Folio No. DP ID Client ID Name of e Member attending e Meeting In case of proxy, Name of Proxy Note : Members/Joint Members are requeed to bring e attendance slip wi em. (Signature of Member/Proxy) (To be signed at e time of handing over is slip) 53

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