1.2 Amendments to published standards and new interpretations that are effective in 2007 and relevant

i- IAS 1 – Presentation of Financial Statements - Capital Disclosure

Effective from accounting period starting on or after January 1, 2007

The adoption of above standard will require disclosure in respect of capital management in the annual financial statements and does not otherwise impact the amounts recognised in this condensed interim financial information.

1.3 Standards, interpretations and amendmants to published approved accounting standards that are relevant but not yet effective

i- IAS 1 (Revised) – Presentation of Financial Statements	Effective from accounting period starting on or after January 1, 2009
Adoption of IAS - 1 (Revised) will require changes in the presentation of financial statements and does not otherwise impact the amounts recognised in this condensed interim financial information.
ii- IAS 23 (Revised) – Borrowing Cost	Effective from accounting period starting on or after January 1, 2009
The above revised standard requires capitalisation of borrowing costs incurred in relation to qualifying assets and withdraws the current option of expensing these out in the period of incurrence.

1.4 Other standards, interpretations and amendments to approved accounting standards effective from accounting periods beginning on or after January 2007, are either not relevant or considered to have any significant effect on the Company’s financial statements.

1.5 The accounting policies and methods of computation adopted for the preparation of this condensed interim financial information are the same as those applied in the preparation of the annual financial statements of the Company for the year ended June 30, 2007.

1.6 The Refineries were operating till June 30, 2002 under the 1992 Import Parity Pricing formula whereby the rate of return on paid-up capital was limited to a range of 10% to 40%. The price fixation of products under the above formula was handled by the Government until it was handed over to Oil Companies Advisory Committee with certain amendments from July 1, 2001 up to March 31, 2006. Subsequently under a directive from the Government, prices are now notified by Oil and Gas Regulatory Authority. The formula was further amended, effective July 1, 2002, for certain refineries including the Company when the capping of 10% to 40% was removed. Under the new tariff protection formula the concerned refineries have been allowed to charge a deemed duty on some of their products enabling them to run their operations on a self-financing basis. After tax profit for a year above 50% of the paid-up capital as at the date of applicability of the tariff protection formula i.e. July 1, 2002, is to be transferred to a “Special Reserve Account” to offset against future losses or to make investments for expansion or upgradation of the respective refineries and is therefore not available for distribution.