Final Results

01 September 2015

Jubilant Energy NV

("Jubilant" or "the Company")

Results for the year ended 31 March 2015

The Board of directors of Jubilant Energy N.V. (the "Company" or "Jubilant") is pleased to announce the financial results for the year ended 31 March 2015. The Company is incorporated under the laws of the Netherlands and is engaged in the business of oil & gas exploration and production. It holds Operating and Non-operating stakes in diversified portfolio of upstream asset predominantly located in India.

These assets are at different stages of maturation. Kharsang oil Field is the only producing asset. Three other assets, namely, KG-OSN-2001/3 (Deendayal/KG) Block, AA-ONN-2001/3 (Tripura) Block and CB-ONN-2002/3 (Sanand-Miroli) Block are under development / appraisal having a total of 15 discoveries of commercial interest, predominantly gas. Two Blocks AA-ONN-2009/1 and AA-ONN-2009/2 in Manipur and a PSC-I Block in Myanmar are under Exploration. Other Blocks namely Cauvery, Mehsana and Golaghat are under relinquishment.

Business Review

1. Deendayal Block

§ Development of the Deendayal West Field (DDW) reached stage of trial production from 3 completed wells namely D1, D2 and D3.

§ The commencement of commercial production from the KG Block has been delayed by more than 3 years from the approved FDP scheduled commencement date. There has been cost escalation on development facilities as well as on the development drilling.

§ All the three wells under trial production are sub-optimal. The Operator has now drawn up plans to redesign the next 2 wells namely D4 and D5 as well as to deploy large scale hydrofracking technology, all with objective to enhance well productivities.

§ Considering the progress of work at DDW as well as pending additional evaluation and studies, the Operator has sought time extension till end February 2016 for submission of FDP covering six discoveries in other areas of Deendayal Block, holding Gas in place of 8.39 TCF (2C resources) which were declared commercial in FY 2014. It is expected that by the end of current fiscal, production results of next 2 new wells will be known and commercial production may be declared with added wells.

§ The Company has taken a loan of INR 13,400 million from State Bank of India (SBI) led consortium of 11 Indian Banks. Due to time and cost overruns as well as underperformance of initial wells under trial production, the project has suffered a set-back at this stage of development, adversely impacting the company's debt servicing capability.

§ As at 31 March 2015, there is an outstanding cash call demand of INR 3,134 million by the Operator on account of expenditure at KG Block which has not been paid by the Company on account of certain differences between the Operator and the Company. The Company is in receipt of notice of default in August 2014 followed by notice of cure in May 2015 stating that failure in payment of outstanding cash call by the Company within 15 days may result in forfeiture of the Company's Participating Interest by the Operator. The Company is actively engaging with the Operator to resolve the issue amicably.

2. Kharsang Field

§ Production declined by 23% over last fiscal year. Pilot programs have been initiated to arrest decline through implementation of new solutions such as Radial drilling.

§ In order to enhance production, Field Development Plan (FDP) for drilling infill and step-out wells has been submitted to Directorate General of Hydrocarbons (DGH) for their review.

§ Deeper plays in Lower Girujan and Tipam represent an upside opportunity and a third party evaluation is currently underway taking into account new 3D data.

3. Tripura Block

§ North Atharamura discovery is now ready for active appraisal under an appraisal plan recently reviewed by DGH & Government. Firm program entails drilling of 2 new wells and 2D seismic API. But critical statutory approvals such as Forest Diversion are still pending. The Company has notified DGH that May 2016 deadline for DOC submission will be difficult to achieve and have requested for extension.

§ Kathalchari discovery is now ready for first phase of development under FDP recently approved by DGH & GOI. Approved target is to achieve peak rate of 10.5 MMSCFD gas and readiness to commence production by FY 17-18. Development activities can however be commenced once PML is obtained.

4. Sanand Miroli Block

§ At Sanand-Miroli Block, due to marginal and intermittent nature of production from the current reservoir interval in the Miroli Field, the production operations were evaluated to be unviable and hence the production operations from the Miroli Field were discontinued in the month of April 2015. The Operator is yet to provide future plan on reviving the production.

§ As regards part A of the Block (Sanand), RFDP for Kalol discovery in SE-3 and SE-4 well is under preparation.

5. Manipur I & II

§ GOI recognized that drilling operations cannot be progressed on account of lack of infrastructure and logistic constraints. Accordingly Force Majeure has been granted till May 2016.

6. Myanmar

§ In line with its strategy to focus on ongoing and near term development programs, the Company decided to dilute interest in long gestation exploration programs. The Company therefore entered into a farm-out agreement which is currently pending Myanmar Government approval.

Financial Highlights

· Gross sales volume from the Kharsang Field stood at 472,704 barrels of oil during the year (Net entitlement to Jubilant 118,176 barrels of oil), lower by ~26.4% from previous year.

· Weighted average oil price realised for sale of Kharsang oil was USD 94.35 per barrel, lower by 14% as compared to previous fiscal year. Gas prices for the period April 15 to Sept 15 slid down to $4.66/MMBTU.

· Operating revenues were therefore lower by ~39% at USD 9.7 MM on net entitlement basis During the year ended 31 March 2015, the Company incurred a loss of USD 116.0 MM as compared to a loss of USD 8.5 MM in the previous year. During the year the loss before tax was USD 134.8 MM as against loss before tax of USD 3.4 MM in the previous year. The main reasons for the increase in losses are attributable to lower operating revenues and recognition of impairment losses.

· Company recognises an impairment loss of USD 115.3 MM in the Deendayal Block on account of postponement of revenues due to delay in achieving commencement of production, cost escalations and much lower than expected gas price fixed by GOI.

· Company also recognises an impairment loss of USD 6.6 MM in Sanand-Miroli as production from the Miroli Field was evaluated to be commercially unviable and stopped in April 2015 and there is significant uncertainty on recommencement of the production.

· Loss from operating activities during the year stood at USD 121.2 MM (including impairment loss of USD 121.9) as against profit of USD 8.2 MM in previous year.

· Total outstanding debt as of 31st March 2015 stood at USD 514.4 MM, including debt of USD 146.6 MM from Jubilant Bhartia Group companies. Undrawn facilities of USD 2.6 MM and cash balance (including available deposits with banks) of USD 21.6 MM available to the Company.

· During this fiscal, Company faced severe cash crunch due to postponement of revenues from DDW and decline in revenues from Kharsang. This has adversely impacted Company's ability to fulfil its debt obligations and meet certain debt covenants under some facility agreements leading to reclassification of long-term liability to current. Company has approached its lenders to restructure the debts in order to address cash flow mismatches.

· During the year, the Jubilant Bhartia Group Companies continued to support ongoing operations by extending unsecured loan facilities amounting to USD 25 MM (Net). The Company has historically arranged funding from ultimate parent Company - Jubilant Enpro Private Limited (now known as 'Jubilant Energy Private Limited') and its subsidiaries/associates for funding the capital and operating expenditure, debt servicing and for other corporate purposes. However no formal legal binding agreement is in place to assure such funding in future.

· The management acknowledges that uncertainty remains over the ability of the Company to meet its current and future anticipated funding requirements and to refinance or repay its banking facilities as they fall due. The existence of material uncertainties cast significant doubt about the entity's ability to continue as a going concern. Nevertheless, the Company is of the opinion that the going concern assumption is appropriate for the preparation of financial statements for the year ended 31 March 2015, as timely implementation of the actions is expected to mitigate the conditions and/or events that materially threat the Company's ability to continue as a going concern.

Mr. Shyam Bhartia, Chairman and Mr. Hari Bhartia, Co-Chairman of Jubilant Group commented:

The Financial Year 2015 has been a challenging year for the company which is facing severe cash crunch due to delay in commencement of production and cost escalations at KG and decline in revenues from Kharsang. The fixation of much lower than expected domestic gas price by GOI has further aggravated the situation. These factors led to uncertainties around going concern assumption as well as impairment of its assets.

In order to address the current situation, Company is focusing on all options including monetizing assets, prioritizing investments and debt restructuring. Going forward, our hope remains that the Government will revitalize India's oil and particularly gas sector, keeping in view Prime Minister's call to decrease import dependency by 10%. We are hoping that a balanced view is taken by the Government while arriving at future prices for domestic gas, in particular for unconventional and difficult projects like Deendayal as well as for the north-east region oil & gas resources which we believe are in plenty but lie unexplored and undeveloped in extremely challenging ground conditions.

Competent Person's - Consent for Release

Mr. Ramesh Bhatia -Chief Operating Officer, holds a Master's of Science degree in Applied Petroleum Geology and has over 20 years of experience in the Oil and Gas Exploration, Development and Production industry. He has reviewed and approved the technical information contained in this announcement pursuant to the AIM guidance note for mining and oil and gas companies

Notes and Glossary of abbreviations

The reserve and resource figures disclosed in this announcement have been estimated using the Petroleum Resources Management System published by the Society of Petroleum Engineers/ World Petroleum Council American Association of Petroleum Geologists/ Society of Petroleum Evaluation Engineers (SPE/WPC/AAPG/SPEE) in March 2007 ("SPEPRMS").

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial Position

Consolidated Statement of Cash Flows

Consolidated Statement of Changes in Equity for the year ended 31 March 2015

Consolidated Statement of Changes in Equity for the year ended 31 March 2015

Notes to the accounts

1. General and principal activities

Jubilant Energy N.V. ('the Company' or 'JENV') was incorporated on 12 June 2007, in Amsterdam, the Netherlands, as a company with limited liability. The registered office of the Company is Orlyplein 10, Floor 24, 1043 DP Amsterdam, the Netherlands. The Company is a subsidiary of Jubilant Energy (Holding) B.V. (JEHBV), a Netherlands company, which in turn is a wholly-owned subsidiary of Jubilant Enpro Private Limited ('Jubilant Enpro'), a company incorporated under the laws of India. On 24 November 2010, the Company commenced trading on Alternative Investment Market (AIM), London.

The abbreviated consolidated financial information as at and for the year ended 31 March 2015 comprises the Company and its subsidiaries (together referred to as the 'Group' and individually as 'Group entity') and the Group's proportionate interest in jointly controlled assets in unincorporated joint ventures.

The Group is engaged in the exploration for and development and production of oil and natural gas. It conducts many of its activities jointly with others. The abbreviated consolidated financial information reflects only the Group's proportionate interest in such activities.

2. Summary of significant accounting policies

The abbreviated consolidated financial information has been derived from the Company's Consolidated Financial Statements for the year ended 31 March 2015 and the Company's Consolidated Financial Statements for the year ended 31 March 2014 which has been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. These standards have been consistently applied throughout the Group and in previous year. The Company's Consolidated Financial Statements for the year ended 31 March 2015 and the Company's Consolidated Financial Statements for the year ended 31 March 2014 were authorised for issue by the Board of Directors on 28 August 2015 and on 25 June 2014 respectively.

Basis of preparation

The abbreviated consolidated financial information, which comprise the abbreviated statement of financial position as at 31 March 2015, the abbreviated statement of comprehensive income, statement of changes in equity and cash flow statement for the year then ended, and related notes, have been derived from the Company's Consolidated Financial Statements for the year ended 31 March 2015, and the Company's Consolidated Financial Statements for the year ended 31 March 2014, on which the Company's audit firm KPMG Accountants N.V. ("KPMG") provided an unqualified audit opinion dated 31 August 2015 and 25 June 2014 respectively. However, with respect to the Company's Consolidated Financial Statements for the year ended 31 March 2015, KPMG has given an emphasis of uncertainty with respect to the going concern assumption and has drawn attention to note on - Preparation of Consolidated Financial Statements on a going-concern basis (note reproduced here after), which indicates the existence of material uncertainties which may cast significant doubt about the entity's ability to continue as a going concern.

For a better understanding of the Company's financial position and results, we emphasize that the abbreviated consolidated financial information should be read in conjunction with the Company's Consolidated Financial Statements as of and for the year ended 31 March 2015 and the Company's Consolidated Financial Statements as of and for the year ended 31 March 2014, from which the abbreviated consolidated financial information was derived.

Preparation of Consolidated Financial Statements on a going-concern basis

The Group continues to have a balanced oil and gas portfolio at different stages of exploration, appraisal, development and production. In the recent past, the Group's focus had been development of KG Block and its early monetization, establishment of in-place gas resources at Tripura and conversion into 2P reserves, arresting production decline at Kharsang and establishment of its deeper exploration play.

 The much awaited new domestic gas pricing policy for India was announced by the Government of India effective 1 November 2014. The notified gas prices are however significantly lower than the Industry expectations which were set at double the level according to earlier gas price guidelines approved by Government and were to be effective from 1 April 2014. This has adversely impacted the value of our asset portfolio, which is predominantly gas and in particular value of our core asset namely Deendayal Block or KG Block.

 The commencement of commercial production from the KG Block has been delayed by more than 3 years from the approved FDP scheduled commencement date. There has been cost escalation on development facilities as well as on the development drilling. All the three wells under trial production are sub-optimal. The Operator has now drawn up plans to redesign the next 2 wells namely D4 and D5 as well as deploy large scale hydrofracking technology, all with objective to enhance well productivities. Considering the progress of work as well as pending additional evaluation and studies, the Operator has sought time extension till end February 2016 for submission of FDP for six discoveries in other areas of Deendayal Block holding gas in place of 8.39 TCF (2C resources) which were declared commercial in Financial Year 2014. It is expected that by the end of the fiscal year ended March 2016, results of next 2 new wells are expected to be known, Commercial Production may be declared with added wells, and Government view on gas price premium being applicable to existing discoveries may be known.

At Kharsang, production declined by 23% over last fiscal year which along with decline in oil prices has led to significant reduction in operating cash flow. During the year, pilot programs have been initiated to arrest decline through implementation of new solutions such as radial drilling. In order to enhance production, Field development plan (FDP) for drilling infill and step-out wells has been submitted to Directorate General of Hydrocarbons (DGH) for their review. Meanwhile a third party evaluation is currently underway basis the new 3D data to evaluate the deeper plays in Lower Girujan and Tipam, which could create upside opportunity.

 The Tripura Block is still at pre-development stage. Kathalchari discovery is now ready for first phase of development under FDP recently approved by DGH and government of India. Approved target is to achieve peak rate of 10.5 mmscfd gas and readiness to commence production by financial year 2017-18. Development activities can however be commenced once PML is obtained. As regards North Atharamura discovery, the appraisal program has been reviewed by DGH & Government and the firm program entails drilling of 2 new wells and 2D seismic API. But critical statutory approvals such as Forest Diversion are still pending. We have notified DGH that May 2016 deadline for DOC submission will be difficult to achieve and have requested for extension.

 At Sanand-Miroli Block, due to marginal and intermittent nature of production from the current reservoir interval in the Miroli Field, the production operations were evaluated to be unviable and hence the production operations from the Miroli Field were discontinued in the month of April 2015. The Operator is yet to provide future plan on reviving the production. As regards part A of the Block (Sanand), RFDP for Kalol discovery in SE-3 and SE-4 well is under preparation.

Because of the logistical issues, the Group's Manipur Blocks are under force-majeure conditions. There is a stand-still and this has jeopardized Group's 7 tcf of best case unrisked gas resources. Myanmar PSC I Block is still at initial stage of exploration and Group is pursuing its strategy to dilute its interest majorly in pure exploration assets.

The Company has taken a loan of INR 13,400 million (equivalent to USD 214 million) from State Bank of India (SBI) led consortium of 11 Indian Banks. Due to time and cost overruns as well as underperformance of initial wells under trial production, the project has suffered a set-back at this stage of development. These along with the notification of much lower than expected gas price; have adversely impacted the project economics.

During this fiscal, Company faced severe cash crunch due to postponement of revenues from DDW. This has adversely impacted Company's ability to fulfil its debt obligations and meet certain debt covenants under some facility agreements leading to reclassification of long-term liability to current. Company has approached its lenders to restructure the debts in order to minimize cash flow mismatches.

Further, there have been certain delays in the servicing of the interest of the KG project. During the financial year, the Group approached its lenders and requested to approve shifts in scheduled commercial operation date from March 2014 to February 2016 and to realign the debt servicing in accordance with the KG Block estimated cash flows. With mutual discussion with lenders, the Group has appointed financial advisors to work out a debt restructuring solution. In order to validate the underlying economic and technical viability of the KG project, the lenders have appointed a third party independent consultant to perform techno-economic viability study, which is currently under way and will be based on project data to be provided by the Operator. Currently, there is an uncertainty on the outcome of the techno-economic viability study. A negative outcome may cast doubt on the current and anticipated future investments.

As at 31 March 2015, there is an outstanding cash call demand of USD 50.16 million from the Operator on account of expenditure at KG Block which has not been paid by the Group on account of certain differences between the Operator and the Company. As per the Joint Operating Agreement for the Block, the Operator had issued a notice of default dated 22 August 2014 and notice of cure on 26 May 2015, stating that failure in payment of outstanding cash call by the Group within 15 days from 26 May 2015 may result in forfeiture of Group's Participating Interest by the Operator. The Group is actively engaging with the Operator to resolve the issue amicably.

For funding the exploration, development and related activities, the Group has taken funding from SBI, Central Bank of India and EXIM. The declining revenues at Kharsang Block coupled with current status of KG Block as mentioned above have forced the Group to approach its lenders for realignment of its debt servicing. The Group made a request for the same in March 2015. During the year, there has been breach of certain financial covenants and subsequently there have also been delays in debt servicing. After negotiations it was agreed that debt repayments may be made from the balances available in debt service reserve account.

Since it now appears unlikely that the Group will be able to meet the debt servicing obligations and covenants, the Group has been in continuous discussions with its lenders about re-phasing the debt servicing. Given the uncertainties, the failure to affect a strategic restructuring on a timely basis could prove to be materially detrimental to the interest of the Group. If certain risks materialize, the classification of debt as long-term may not be appropriate.

One of the key uncertainties and an important driver of the viability of the gas Fields is the applicable gas price. As per the guidelines announced by the Government in October 2014, the price of natural gas was formulated based on several international indices and with the provision of revision every six months. The gas price first announced effective November 2014 was USD 5.05 per MMBTU on GCV basis, which was reduced to USD 4.66 per MMBTU for the period of April 2015 to September 2015. The important provision of the new policy relates to providing premium on gas prices for deepwater, ultra deepwater and HPHT discoveries. However, at the time of announcement, such provision was made applicable only to new discoveries post the announcement date. At current gas prices, the projects like KG Block may prove to be unviable and it can reasonably be expected that the Government will take initiative to compensate considering that the stated objective of the Government is to reduce import dependency and in the process enable development of discovered gas resources. There remains uncertainty on future oil prices given the downward trend of oil prices. Any positive change in the gas price fixed by the government is also uncertain.

At KG Block, only after drilling of new wells D4 and D5, where hydrofracking technology is expected to be implemented on a much larger scale, it can be expected that revenue generation will commence by the end of fiscal year ended March 2016. GSPC, the operator is also working to redesign the wells with the aim of significantly stepping up the producibility. The success at DDW is expected to pave the way for future efforts to convert large contingent in place resources of around 8.39 tcf into recoverable reserves.

At Kharsang, there is an immediate need to increase the production. A pilot Radial drilling program was executed in 4 wells, which has been a partial success. Various work-over activities and new technology oriented pilot projects are expected to be implemented to overcome the complexities and maintain the production from the existing wells. In order to increase the production, the Operator has submitted FDP to the DGH with a plan to drill new wells in Upper Girujan reservoir over next couple of years. Apart from the producing Upper Girujan reservoir, the Field has an exploration play in deeper formations i.e. Lower Girujan and Tipam with significant hydrocarbon potential. To understand potential of these deeper formations as well as to reassess the potential of Upper Girujan reservoir, a high quality 3D seismic data was successfully acquired in the Field. Interpretation of 3D data is currently ongoing on the basis of which the Company will be evaluating feasibility of exploring deeper formations in the Field. Depending upon the feasibility, the Company may target to drill wells over next couple of years to test the deeper formations, which will lead to significant addition in hydrocarbon resources of the Field, both oil and gas. All these new investment initiatives will require the PSC term, currently expiring in 2020, to be extended for long term. Currently, we are anticipate that a minimum of 5 years extension for exploiting balance oil reserves and additional 5 years for exploiting non-associated gas reserves can be expected to be obtained. There is uncertainty as to what the key terms would be and if these terms can support a viable business case. Several industry representations has been made to Government to not make extension terms onerous for contractor and in favour of Government. This new extension policy is expected to be announced in financial year 2016.

The development and appraisal activities at Tripura will be important from conversion of gas resources to reserves and starting a new stream of revenues in next 2-3 years. It will however require additional capital which is not available at the moment, to drill new development wells as well as to install facilities to produce gas.

So the overall strategy is to step up value creation by undertaking high impact activities; at the same time to minimize exploration risk capital as well as minimize liabilities. The Group focuses on three fold strategies that need to be successfully executed to support viability of the business:

- Business: To consolidate the asset portfolio with an objective to focus on assets with higher control, direct new capital to program which generate higher return on investment; focus on early value creation and monetization and importantly minimization of risk capital through farm-out and strategic exit.

- Operating and Execution: Arrest the production decline at Kharsang Block and increase the production through infill / step-out wells and other work-over activities; Successful development and appraisal activities at Tripura Block and establishment / conversion of Group's huge hydrocarbon resources into Reserves.

- Financial: Debt restructuring with an objective of reduction in cost of funding, additional funding for future capex and alignment of debt servicing with the project surplus.

Due to the reasons explained above, the management acknowledges that uncertainty remains over the ability of the Group to meet its current and future anticipated funding requirement and to refinance or repay its banking facilities as they fall due. However management has reasonable expectation that the Group will be successful in obtaining adequate resources to continue its operations for the foreseeable future. In assessing whether the going-concern assumption is appropriate, the management has taken into consideration the following factors:

- Available cash balance of USD 19.9 million as at 31 March 2015 for KG project;

- The Group has significant hydro carbon reserves/resources as confirmed in past by a competent person's report. The Group has high quality assets, which will be de-risked as the development of assets progress;

- Historically the Group had constantly tied up funding arrangements from Banks. The Group hired an external financial advisor and is in active discussions with the lenders and has already approached banks for re-alignment of its Kharsang and KG debt obligations in accordance with the expected cash flows from the respective projects. The KG loan lenders have already appointed independent expert to assess/evaluate the project viability, based on which the debt restructuring solution will be proposed. Once the restructuring solution with the lenders is agreed, then there will be a definitive funding arrangement. Management believes that lenders will approve the restructuring solution within the available regulatory framework which will take care of the debt service obligations as well as additional capital expenditure required to complete the KG Block development plan meeting the objectives of the financial year 2009-10 approved FDP. It is also proposed that this new funding will also take into account the outstanding cash call payments to be effected to the Operator, as are considered valid by the Group.

- The Group has historically arranged funding from ultimate parent Company - Jubilant Enpro Private Ltd and its subsidiaries/associates for funding the capital and operating expenditure, debt servicing and for other corporate purposes. However no formal legally binding agreement is in place to assure such funding in future.

- Kharsang contribution will take care of operational expenses and discussions are ongoing with the banks to allow Kharsang contribution to be utilized first for servicing operating requirements and balance available to banks towards debt servicing obligations.

- The Group is working on a range of strategic options for the business and its medium to long-term funding including monetization / dilution of its participating interest in oil & gas assets / reprioritizing investments and re-scheduling its activities and programs.

- There is industry expectation that there will be significant correction in natural gas prices from a policy perspective driving them closer to imported gas prices

- Under current environment of low oil and gas prices, the Group will evaluate economic viability of each of its investment plan across all assets and prioritize its investments accordingly. The Group believes that its efforts on KG, Tripura and Kharsang Blocks will be successful and with success at each stage, the Group will improve its position on cash flows. 

The above indicates the existence of material uncertainties which may cast significant doubt about the entity's ability to continue as a going concern. Nevertheless, management is of the opinion that the going concern assumption for the 31 March 2015 financial statements is appropriate as the continuous and timely implementation of the actions as mentioned above is expected to mitigate the conditions and/or events that materially threat the Group's ability to continue as a going concern.

3. Trade and other receivables - current

Footnotes:

a) Represents amounts due from co-ventures on account of non-payment of cash calls raised by the Group in respect of operated Blocks and/or advance payments made by the Group in respect of non-operated Blocks.

b) The recoverable from co-ventures is net of provision of USD 4,023 thousand (31 March 2014: USD Nil thousand) from a joint venture partner, on which partner has raised certain issues, management is in active discussion with partner and on account of uncertainty of collection, management in the current year has created provision in this respect.

c) Restricted cash - margin money represents margin money against guarantees and deposits with lenders. Restrictions on margin money deposits are released on the expiry of the terms of guarantees.

4. Loans and borrowings (including accrued interest)

5. Share capital

Issued and paid-up share capital

Share premium

Footnotes:

1) Authorised share capital

The authorised share capital of JENV as at 31 March 2015 is 874,200,000 shares of USD 12,145 thousand equivalent to EUR 8,742 thousand (31 March 2014: USD 12,145 thousand equivalent to EUR 8,742 thousand), having the par value of EUR 0.01 (31 March 2014: EUR 0.01) per share.

2) Issued share capital

The issued share capital of JENV as at 31 March 2015 is 416,306,787 shares (31 March 2014: 416,306,787 shares).

There has been no change in the issued share capital of JENV during the year ended 31 March 2015 and 31 March 2014.

All issued shares are fully paid up. The holders of ordinary shares are entitled to receive dividend as declared from time to time and are entitled to one vote per share at the meetings of the Company.

3) Share premium

There has been no change in the share premium of JENV during the year ended 31 March 2015 and 31 March 2014.

4) Foreign currency translation reserve

The foreign currency translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations.

5) Stock options outstanding reserve

The stock options outstanding reserve comprises the amounts recognised in respect of the equity-settled share-based payments to certain employees and others providing similar services.

6. Impairment

During previous years, Group has recognised impairment loss for carrying value of exploration and evaluation assets for Mehsana, Cauvery, Golaghat and Australia blocks. During the year, the Company has recognised an impairment loss of USD 115.3 MM in the Deendayal Block on account of postponement of revenues due to delay in achieving commencement of production, cost escalations and much lower than expected gas price fixed by GOI. The Company has also recognised an impairment loss of USD 6.6 MM in Sanand-Miroli as production from the Miroli Field was evaluated to be commercially unviable and stopped in April 2015 and there is significant uncertainty on recommencement of the production.

7. Earnings per share

The following is the reconciliation of the loss attributable to ordinary shareholders and weighted average number of ordinary shares used in the computation of basic and diluted earnings per share:

The Group has issued options to its employees during the year ended 31 March 2015 and 31 March 2014. Since the Group does not have profits during the current year and in the previous year, the options issued are considered to have an anti-dilutive effect. Therefore, the basic and diluted EPS are the same.

8. Related Parties

(a) Related parties and nature of relationships where control exists

(b) Related parties and nature of relationships where transactions have taken place during the year

(c) Related party transactions

(d) Guarantees given by ultimate holding company

a) Secured foreign currency term loans taken by JENV from EXIM: Corporate guarantees in respect of these loans have been given by Jubilant Enpro.

b) Secured foreign currency term loan taken by JENV from Axis Bank: Corporate guarantee in respect of this loan has been given by Jubilant Enpro.

c) Secured term loans taken by JEKPL from banks: These loans are secured by primary charge on all present and future receivables of Jubilant Enpro relating to Kharsang Field.

d) Non-fund based limit taken by JOGPL, JODPL and JEKPL to furnish bank guarantee: Corporate guarantee in respect of this non-fund based facility has been given by Jubilant Enpro.

e) Secured term loans taken by JODPL from banks: JEHBV has entered into an arrangement of Right of Sale of paid-up shares of JENV (by way of Project Support Undertaking/non-disposal undertaking and Power of Attorney on the DMAT account), as held by JEHBV, having market value equivalent to INR 2,000,000 thousand as on the date of the arrangement.

f) In 2013-14, JEHBV has availed a foreign currency loan of USD 45,000 thousand from EXIM for utilisation of the loan proceeds towards investments in/on-lending to the subsidiaries of the Borrower mainly for exploration, development and related activities in various operating companies owning oil and gas assets. This loan is secured by the following:

- Negative lien on the present and future PI and receivables pertaining to all other oil and gas assets held by the Company and/or subsidiaries and any other company which holds/shall hold (PI) in any oil and/or gas Block; provided that in case of fund raising for a particular oil and gas asset/Block against security of the first charge on the PI and related cash flows or escrow of receivables in the said asset/Block with prior approval of Exim Bank, the negative lien stands converted into a second charge over the PI and residual cash flows/receivables after meeting the debt service obligations of the first charge-holder(s).

- An Undertaking from JENV and its subsidiaries for non-disposal of their shareholding in their respective subsidiaries.

- An irrevocable and unconditional Corporate Counter-Guarantee by JEKPL for guaranteeing the due performance and discharge by Jubilant Enpro of its obligations and liabilities in terms of the counter-guarantee backed by first pari passu mortgage of its Participating Interest (PI) held in Kharsang oil Field and first pari passu charge by way of hypothecation over the receivables in respect of the said PI held in the Kharsang oil Field.

- An irrevocable and unconditional Corporate Counter-Guarantee by JODPL for guaranteeing the due performance and discharge by Jubilant Enpro of its obligations and liabilities in terms of the counter-guarantee backed by second pari passu mortgage of its Participating Interest (PI) held in KG Block and second pari passu charge by way of hypothecation over the residual cash flows in respect of the said PI held in the KG Block. The charge shall rank subservient to the first charge in favour senior lenders to JODPL.

g) As at 31 March 2015, performance guarantee amounting to USD 2,508 thousand (31 March 2014: USD 2,624 thousand) given by Axis bank on behalf of Jubilant Securities Private Limited against a lien on the term deposits of JENVPL amounting USD 125 thousand (31 March 2014 : USD 131 thousand) in respect of Golaghat Block.

h) As at 31 March 2015, performance guarantee amounting to USD 1,584 thousand (31 March 2014: USD 1,658 thousand) given by Axis bank on behalf of Jubilant Capital Private Limited against a lien on the term deposits of JEKPL amounting USD 80 thousand (31 March 2014 : USD 84 thousand) in respect of Ankleshwar Block.

i) As at 31 March 2015, performance guarantee amounting to USD 744 thousand (31 March 2014: USD 779 thousand) given by Axis bank on behalf of Jubilant Capital Private Limited against a lien on the term deposits of JENVPL amounting USD 37 thousand (31 March 2014 : USD 39 thousand) in respect of Ankleshwar Block.

j) BG limit of USD 3,198 thousand (31 March 2014: USD 3,347 thousand) is available for JCPL and JSPL within the overall limit of USD 12,154 thousand (31 March 2014: USD 12,718 thousand) of JOGPL and negative lien on participating interest of JCPL and JSPL in the Blocks.

9. Contingencies

Contingent liabilities in respect of matters currently in dispute comprise:

Considering the facts and current status of the cases listed above, management is confident that there shall not be any liability devolving on the Group in this matter and therefore no provision has been made in the books.

10. Events occurring after the balance sheet date

There were no material post subsequent events which have a bearing on the understanding of the financial statements.