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Cairns India

May 29, 2018

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    An Introduction Cairn India is one of the largest oil and gas exploration and production company

    and has a working interest in 10 blocks in India and 1 block in Sri Lanka. Three ofthese are currently producing hydrocarbons. Cairn India is focused on creatingshareholder value by developing its world class resource base in Rajasthan andseeks to continue with its track record of exploration success. Cairn Indias portfoliois fostered in both mature and frontier areas, as well as in regions and basins wherethe current data set can be optimised or reinterpreted.

    Cairn India has a Scottish heritage. In 1979 Sir Bill Gammell, founded Castle Cairn

    Financial Services. By 1986, the majority of its work was in the expanding gas andoil industry and a new company was formed Cairn Energy Management. Presently, the Cairn India Private Limited is headed by Mr.Rahul Dhir.

    The company was acquired by Caledonian Offshore Limited in 1988 and wasrenamed Cairn Energy PLC, just prior to its flotation on the London Stock Exchange.As the Indian oil and gas market deregulated in the early 1990s, Cairns focusturned to South Asia. Cairn acquired Command Petroleum Ltd in 1996, an

    Australian-quoted company with interests in India. In January 2004, following the largest oil discovery by any company in India since

    1985, Cairn added the Mangala oilfield in Rajasthan to the assets and this, alongwith the other discoveries in Rajasthan, will form the core of the futuredevelopments in India. Cairn India was floated on the National Stock Exchange andBombay Stock Exchange in January 2007.

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    DIVIDEN

    DIVIDEND

    In view of the inadequacy of profits in Cairn India Limited, the Directors regret their inability toRecommend any dividend.

    EQUITY SHARES

    During the financial year under review, 306,316 equity shares of INR 10/- each were allotted on exercise of

    Employee Stock Options by the employees of the Company or of its subsidiaries. Accordingly, the issued and

    paid up capital of the Company has increased to INR 18,969,741,320 divided into 1,896,974,132 equity

    shares of INR 10/- each. Subsequent to the close of the financial year, the Company allotted 239,288 equityshares of INR. 10/- each on exercise of Stock Options by the employees. Accordingly, the issued and paid up

    capital of the Company has increased to INR18,972,134,200 divided into 1,897,213,420 equity Shares of INR

    10/- each

    EMPLOYEE STOCK OPTION SCHEMES

    Your Company has established share incentive schemes viz., Cairn India Senior Management Plan (CISMP),

    Cairn India Performance Option Plan (CIPOP) and Cairn India Employee Stock Option Plan (CIESOP) pursuant

    to which options to acquire shares have been granted to select employees and Directors of the Companyand its subsidiaries. The Company also has cash awards option plan (phantom stock options) for expatriate

    employees of the Company and its subsidiaries. During the year, stock/cash options have been granted to

    the executive Directors and employees of the Company or of its subsidiaries. On exercise of the options so

    granted, the paid-up equity share capital of the Company will increase in terms of the Stock Option Plans

    mentioned above. The details of stock options granted by the Company are disclosed in compliance with

    Clause 12 of the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee

    Stock Purchase Scheme) Guidelines,. During the period under review, 306,316 equity shares of INR 10/- each

    were allotted ursuant to the exercise of the stock o tions.

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    contd.. SUBSIDIARY COMPANIESAs on 31 March, 2010, the Company had 31 subsidiaries including indirect subsidiaries.

    All these companies are beneficially owned 100% by Cairn India Limited. These

    subsidiaries have their own Boards of Directors having the rights and obligations tomanage such companies in the best interest of such Companies. The Company has its

    representatives on the Board of subsidiary companies and monitors the performance of

    such companies regularly. Pursuant to the provisions of Section 212(8) of the

    Companies Act, 1956, the Company has obtained exemption from the Ministry of

    Corporate Affairs, Government of India from attaching the accounts of its subsidiariesto the Companys Annual Accounts for the financial year ended 31 March, 2010.

    SCHEME OF ARRANGEMENTIn order to simplify and consolidate the multi layered structure comprising foreign

    subsidiaries, the Company had proposed a scheme of arrangement between Cairn India

    Limited, Cairn Energy India Pty Limited, Cairn Energy India West B.V., Cairn Energy

    Cambay B.V., Cairn Energy Gujarat B.V. and their respective shareholders and creditors

    (the 'Scheme'). The members of the Company had approved the Scheme with

    overwhelming majority in the Court convened meeting held on 18 February, 2010.

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    STOCK OPTION SCHEMES

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    BALANCE SHEET AS PROVIDED IN THE ANNUAL REPORT

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    CAPITAL & LIABILITIES :(in 0000rss) Cairn India Ltd. ONGC Aban Offshore Ltd. Jindal Drilling GAIL (India) Ltd.

    Owners' Fund Mar` 09 Mar` 09 Mar` 09 Mar` 09 Mar` 09

    Equity Share Capital 1896.67 2138.89 7.56 11.47 1268.48

    Share Application Money 38.9 0 0 0 0

    Peference Share Capital 0 0 326 0 0

    Reserves & Surplus 30055.23 76596.53 911.62 258.88 13501.15

    Loan Funds

    Deposits 0 0 0 0 0

    Borrowings made by the bank 0 0 0 0 0

    Other Liabilities & Provisions 139.21 57512.08 342.14 310.19 9638.09

    Total 32130 136248 1588 580 24407

    ASSETS

    Cash & Balances with RBI 2763.28 19096.21 234.28 17.04 3456.15

    Money at call and Short Notice 0 0 0 0 0

    Investments 29225.4 5090.32 1380.75 64.85 1737.27

    Advances 0 0 0 0 0

    Fixed Assets

    Gross Block 0.06 61355.61 1206 127.48 17603.98

    Less: Revaluation Reserve 0 0 0 0 0

    Less: Accumulated Depreciation 0 50941.23 716.88 43.53 8553.66

    Net Block 0.06 10414.37 489.12 83.95 9050.32

    Capital Work-in-progress 54.03 52923.19 35.13 0.39 2426.33

    Other Assets 2850.52 83204.71 2755.45 470.85 12393.93

    Miscellaneous Expenses not written off0 650.61 0 0 0

    Total 32130 136248 1588 580 24407

    Note

    Contingent liabilities 351.74 36024.57 2457.78 5.64 11352.14

    Book Value of Unqouted Investment 29225.4 2333.84 1379.73 64.85 897.96

    Market Value of Qouted Investment 0 11143.95 1.33 0 4905.94

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    Amount in 0000 rs. Dec '06(12 months) Dec '07(12 months) Mar '09(15 months) Mar '10(12 months)

    Sources Of Funds

    Total Share Capital 1,765.31 1,778.40 1,896.67 1,896.97

    Equity Share Capital 1,765.31 1,778.40 1,896.67 1,896.97

    Share Application Money 0.00 94.71 38.90 46.40

    Reserves 27,507.07 27,500.37 30,055.23 29,993.37

    Revaluation Reserves 0.00 0.00 0.00 0.00

    Networth 29,272.38 29,373.48 31,990.80 31,936.74

    Secured Loans 0.00 0.00 0.00 1,345.00

    Unsecured Loans 20.47 0.00 0.00 0.00

    Total Debt 20.47 0.00 0.00 1,345.00

    Total Liabilities 29,292.85 29,373.48 31,990.80 33,281.74

    Application Of Funds

    Gross Block 0.00 0.00 0.06 0.11

    Less: Accum. Depreciation 0.00 0.00 0.00 0.09Net Block 0.00 0.00 0.06 0.02

    Capital Work in Progress 0.00 0.00 54.03 24.21

    Investments 26,681.87 29,413.73 29,225.40 33,129.09

    Inventories 0.00 0.00 0.00 0.98

    Sundry Debtors 0.00 1.27 1.79 1.57

    Cash and Bank Balance 5,283.33 0.78 1.40 192.79

    Total Current Assets 5,283.33 2.05 3.19 195.34

    Loans and Advances 5.58 5.48 85.45 84.16

    Fixed Deposits 654.11 0.00 2,761.88 0.00

    Total CA, Loans & Advances 5,943.02 7.53 2,850.52 279.50

    Deffered Credit 0.00 0.00 0.00 0.00

    Current Liabilities 3,332.04 13.84 107.67 148.07

    Provisions 0.00 33.93 31.54 3.01

    Total CL & Provisions 3,332.04 47.77 139.21 151.08

    Net Current Assets 2,610.98 -40.24 2,711.31 128.42

    Miscellaneous Expenses 0.00 0.00 0.00 0.00

    Total Assets 29,292.85 29,373.49 31,990.80 33,281.74

    Contingent Liabilities 0.00 0.00 351.74 129.60

    Book Value (Rs) 165.82 164.64 168.46 168.11

    ANALYSIS OF FINANCIAL SOURCES IN YEARLY BASIS

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    PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 09-10

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    Amount in thousand RupeesONGC Aban Offshore Ltd. Jindal Drilling GAIL (India) Ltd.

    Operating Income 45980.18 862.62 950.02 18471.38

    Other income 1750.79 137.12 4.03 332.59

    Employee Expenses 840.63 55.04 28 512.73

    Other Expenses 16863.09 246.14 828.1 12843.18

    Total interest 12.57 247.68 1.57 49.99

    Operating profit 29811.55 450.88 90.06 3694.96

    Provisions Made 0 0 0 0

    Net depreciation 10210.76 79.24 9.1 422.94

    Total taxation 6610.18 131.21 27.81 1043

    Extra ordinary item 0 0 0 0

    Net profit / loss 12991.14 240.43 53.15 2229.02

    Prior year adjustment 0.53 0 0 0

    Reserve written back 0 0 0 0

    Equity capital 2138.87 8.7 11.47 1268.48

    Total reserve and surplus 0 0 0 0

    Equity Dividend Rate 0 0 0 0

    Agg. Non-Promotor Shares 55.31 2.05 0.57

    Agg. Non-Promotor Holding(%) 0 0 0

    GovernmentShare 0 0 0 0

    CapitalAdequacyRatio 0 0 0 0

    EPS 0 0 0 0

    COMPARATIVE ANALYSIS OF THE P/L ACCCOUNT WITH ITS COMPETITORS

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    Amount in CRORE OF rupees Mar` 09 Mar` 07 Mar` 06

    Income :

    Operating Income 3.73 1.27 0

    Expenses:

    Financial Expenses 0.34 0.02 0.17

    Personnel Expenses 9.01 2.13 0.09

    Selling Expenses 1.44 1.43 0

    Adminstrative Expenses 50.8 76.25 34.87

    Expenses Capitalised 0 0 0

    Operating Expenditure 61 79 35

    Operating Profit -142.95 -79.44 -34.96

    Other Recurring Income 154.17 29.93 5.91

    Adjusted PBDIT 11.22 -49.51 -29.05

    Provisions Made 0 0 0

    Depreciation 0 0 0

    Other Write offs 20.88 0 0

    Adjusted PBT -10.01 -49.53 -29.22

    Tax Charges 57.83 32.05 0

    Adjusted PAT -67.84 -81.58 -29.22

    Non Recurring Items 122.08 2.76 0

    Other Non Cash adjustments 0 0 0

    Reported Net Profit 54 -79 -29

    Earnigs Before Appropriation -53.8 -108.04 -29.22

    Equity Dividend 0 0 0

    Preference Dividend 0 0 0

    Retained Earnings -53.8 -108.04 -29.22

    YEARLY ANALYSIS OF THE P/L ACCOUNT

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    Dec '06 Dec '07 Mar '09 Mar '10

    Investment Valuation RatiosFace Value 10.00 10.00 10.00 10.00

    Dividend Per Share -- -- -- --

    Operating Profit Per Share (Rs) -0.20 -0.45 -0.75 -0.88

    Net Operating Profit Per Share (Rs) -- 0.01 0.02 0.02

    Free Reserves Per Share (Rs) 155.62 154.64 158.46 -0.65

    Bonus in Equity Capital -- -- -- --

    Profitability Ratios

    Operating Profit Margin(%) -- -6,250.96 -3,829.26 -5,218.17

    Profit Before Interest And Tax

    Margin(%)-- -254.61 -90.53 -102.37

    Gross Profit Margin(%) -- -6,250.96 -3,829.26 -5,219.74Cash Profit Margin(%) -- -261.48 -29.74 -47.57

    Adjusted Cash Margin(%) -494.77 -261.48 -29.74 -47.57

    Net Profit Margin(%) -494.77 -252.62 34.35 -42.20

    Adjusted Net Profit Margin(%) -- -252.62 34.35 -42.20

    Return On Capital Employed(%) -- -0.16 -0.03 -0.02

    Return On Net Worth(%) -0.10 -0.26 0.16 -0.21

    Adjusted Return on Net Worth(%) -0.09 -0.27 -0.21 -0.24

    Return on Assets Excluding Revaluations -0.09 -0.27 0.17 168.11

    Return on Assets Including Revaluations -0.09 -0.27 0.17 168.11

    Return on Long Term Funds(%) -0.09 -0.16 -0.03 -0.02

    Liquidity And Solvency Ratios

    Current Ratio 1.77 0.16 20.48 1.85

    Quick Ratio 1.78 0.16 20.48 1.84

    Debt Equity Ratio -- -- -- 0.04Long Term Debt Equity Ratio -- -- -- 0.04

    FINANCIAL RATIOS FOR THE PAST FOUR YEARS

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    Debt Coverage Ratios

    Interest Cover -169.46 -2,371.18 -249.01 -0.11

    Total Debt to Owners Fund 0.00 -- -- 0.04

    Financial Charges Coverage Ratio -169.46 -2,371.18 32.55 -0.11

    Financial Charges Coverage Ratio

    Post Tax

    -169.46 -3,773.76 218.99 -0.04

    Management Efficiency Ratios

    Inventory Turnover Ratio -- -- -- 3.26

    Debtors Turnover Ratio -- 1.00 2.44 1.90

    Investments Turnover Ratio -- -- -- 3.26

    Fixed Assets Turnover Ratio -- -- -- 30.37

    Total Assets Turnover Ratio -- -- -- --

    Asset Turnover Ratio -- -- -- 30.37

    Average Raw Material Holding -- -- -- --

    Average Finished Goods Held -- -- -- --

    Number of Days In Working Capital 159,138.93 -11,402.08 326,829.58 14,429.30

    Profit & Loss Account Ratios

    Material Cost Composition -- -- -- --

    Imported Composition of Raw

    Materials Consumed-- -- -- --

    Selling Distribution Cost Composition -- 112.68 38.53 --Expenses as Composition of Total Sales -- 99.99 100.66 100.02

    Cash Flow Indicator Ratios

    Dividend Payout Ratio Net Profit -- -- -- --

    Dividend Payout Ratio Cash Profit -- -- -- --

    Earning Retention Ratio -- -- 100.00 --

    Cash Earning Retention Ratio -- -- -- --

    AdjustedCash Flow Times -- -- -- --

    Earnings Per Share -0.17 -0.44 0.29 -0.36

    Book Value 165.82 164.64 168.46 168.11

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    Share Holdings

    Here , we can see that majority of shares of the company is help by the promoter company

    namely cairns energy plc with around 22% being held by the public and financial bodies. During

    the year, PETRONAS International Corporation Ltd (PICL), the overseas arm of Petroliam Nasional

    Berhad (PETRONAS), acquired from Cairn Energy PLC 43.6 million shares in CairnIndia,representing a 2.3% stake and taking the total holding of PICL in the Company to 14.94%.

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    STOCK MARKET As on 31 March, 2010, over 99.99% shares of the Company were held in

    dematerialised form . The shares of the Company are permitted to be tradedonly in dematerialised form under ISIN INE910H01017.

    There are no outstanding GDRs / ADRs / warrants or any convertibleinstruments issued by the Company. However, the Company has outstandingemployee stock options

    The Companys Initial Public Offering (IPO) of 328,799,675 equity shares,which closed on 15 December, 2006, was fully subscribed aggregating INR52,608 million at the issue price of INR 160. The Company also placed INR33,547 million through a pre-IPO placement and exercised its Green ShoeOption for 13,085,041 shares. The total proceeds aggregated INR 88,249million.

    The Company made a preferential issue of 113,000,000 equity shares toPetronas International Corporation Ltd and Orient Global Tamarind FundPte Ltd. amounting to INR 25,345.9 million on 22 April, 2008. The shareswere issued at a premium of INR 214.30 per share . During the year underreview, the Company has received INR 20,363,110 as subscription amount,

    pursuant to exercise of stock options granted to employees.

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    The equity shares of the Company are listed on Bombay Stock Exchange Limited (BSE)

    and the National Stock Exchange of India limited (NSE).the initial public offering of the

    company completed in December 2006 at issue price 160

    As we can see that the shares of cairns India limited has always been in line the Nifty

    and Sensex. There has not been a major fluctuation in its market price even in time of

    global economic recession indicating it to be stable entity.

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    CASH FLOW STATEMENT

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    AN OVERVEIW OF THE FINANCIAL PERFORMANCE OF THE COMPANY

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    SUBSIDIARIES OF CIL AND THEIR SHAREHOLDING

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    Consolidated balance sheet

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    Consolidated P/L Account

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    CONSOLIDATED CASH FLOW STATEMENT

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    The consolidated balance sheet has taken into account the financial

    statements of all its subsidiaries as well.