You are here » Home » Companies » Company Overview » Selan Explorations Technology Ltd

Selan Explorations Technology Ltd.

BSE: 530075 Sector: Oil & Gas
NSE: SELAN ISIN Code: INE818A01017
BSE 00:00 | 17 May 198.95 5.95
(3.08%)
OPEN

196.30

HIGH

201.80

LOW

194.80

NSE 00:00 | 17 May 199.00 5.85
(3.03%)
OPEN

194.90

HIGH

201.85

LOW

194.30

OPEN 196.30
PREVIOUS CLOSE 193.00
VOLUME 8854
52-Week high 227.55
52-Week low 122.40
P/E 30.47
Mkt Cap.(Rs cr) 302
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 196.30
CLOSE 193.00
VOLUME 8854
52-Week high 227.55
52-Week low 122.40
P/E 30.47
Mkt Cap.(Rs cr) 302
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Selan Explorations Technology Ltd. (SELAN) - Director Report

Company director report

Your Directors have pleasure in presenting the Annual Report for the year ended 31March 2021.

Review of Operations

The Company's operations during the year stabilised very quickly after the impact ofthe initial lockdown in the first quarter of the Financial Year 2020-21. A significantdrop in oil prices also during the early part of the fiscal year adversely affectedprofitability along with a drop in production volumes due to the pandemic. Towards thelater part of the fiscal year volumes and oil prices began to improve once again and weexpect this trend to continue during the present fiscal year.

The Company officially signed the Production Sharing Contract (PSC) extensions for theBakrol and Lohar PSC's for a further ten year period ending 2030 with the Government ofIndia after completing all the necessary formalities. The Ministry of Petroleum andNatural Gas / Directorate General of Hydrocarbons and Selan as members of the ManagementCommittee for these Oil and Gas fields also approved and adopted the PSC accounts upto 31March 2018 as required for signing of the PSC extensions.

The Covid-19 pandemic has had a major impact on almost all forms of economicactivities and has adversely affected oil demand owing to prolonged periods of lock-downsin the Country. In view of the threat of COVID-19 and a slow economic revival a suddendrop in prices remains a worry in the near future. Based on the perceived threat posed bythe pandemic and in anticipation of a possible disruption in future the Company hasprepared itself operationally to ensure critical supplies of oil and gas withoutcompromising the health and safety of its valued workforce including contract workers. Thedisruptions due to lockdowns physical movement unprecedented migration of labour forcesupply chain disruptions increased costs and a depressed economic environment have hadand continue to have a near term impact on the industry. While it is difficult to predicthow long such a situation will continue the various initiatives taken by the Governmentwill go a long way to help tide over the turbulent period in the near term.

In view of the ongoing current COVID pandemic health and safety measures have taken anunprecedented importance and the Company has been taking all the necessary measures andprecautions to ensure safety of its employees. Despite the operational challenges posed bythe Covid-19 pandemic the Company ensured the continuance of field operations and for thepurposes introduced a series of measures to ensure continued availability of resourcesservices and manpower for uninterrupted field operations.

The Company expects to keep up to its current momentum in terms of its businessoperations. Please also refer to the Management Discussion and Analysis section of theAnnual Report for further clarification regarding Company's operations and policies.

Final Dividend

An interim dividend of 50% i.e. Rs 5/- per share has been declared by the Board ofDirectors which shall be declared as final dividend for the year 2020-21 in the upcomingAGM subject to approval by the shareholders of the Company. The dividend resulted in cashoutlay of Rs 760.00 lakhs.

Transfer to IEPF

During the year an amount of Rs 1566595 being unclaimed dividend for the FinancialYear 2013-14 alongwith 12550 equity shares were duly transferred to the Fund establishedby the Central Government. In Compliance with the Companies Act 2013 and the IEPF RulesMembers /Claimants whose shares and /or unclaimed dividend which have/has beentransferred to the IEPF Demat Account or the Fund as the case may be may claim theshares or apply for refund by making an application to the IEPF authority in Form IEPF-5(available on http://www.iepf.gov.in) along with the requisite fee as decided bythe IEPF authority from time to time. Only one consolidated claim in a financial year canbe filed by the Member/Claimant as per the IEPF Rules. An Investor Education andProtection Fund ("IEPF" or "Fund") has been established by the CentralGovernment in compliance with the applicable provisions of the Companies Act 2013("Act") read with The Investor Education and Protection Fund Authority(Accounting Audit Transfer and Refund) Rules 2016 and subsequent amendments thereto("IEPF Rules") whereby all unpaid or unclaimed dividends by the members arerequired to be transferred by the Company to the Fund after completion of seven years fromthe date of dividend becoming unpaid / unclaimed. The shares in respect of which dividendhas not been paid or claimed by the members for a period of seven consecutive years ormore shall also be transferred to a demat account created by the IEPF Authority. Furtheraccording to the IEPF Rules the Company had sent individual notices to the concernedmembers and also advertised in the newspapers to enable those members who have not claimedtheir dividends for seven consecutive years or more to take appropriate action to claimtheir unpaid dividend amount which has not been claimed for seven consecutive years ormore. The Company has transferred the unpaid or unclaimed dividends to The InvestorEducation and Protection Fund (IEPF) within the timelines extended by the Ministry ofCorporate Affairs due to COVID-19 pandemic.

Members are requested to ensure that they claim the dividends and shares referredabove before they are transferred to the said Fund. Details of shares /shareholders inrespect of which dividend has not been claimed are provided on our website atwww.selanoil.com. The shareholders are advised to verify their records and claim theirdividends of all the earlier seven years if not claimed.

Year Amount Due date for transfer of unclaimed/ unpaid amount of Dividend to IEPF
2014 – 15 1550495 10 April 2022
2015 – 16 1619085 14 April 2023
2016 – 17 2072735 16 April 2024
2017 – 18 1523060 07 April 2025
2018 – 19 1116310 23 February 2026
2019 – 20 1186785 02 April 2027
2020 - 21 1467057 22 March 2028

The Company has appointed a Nodal Officer under the provisions of IEPF the details ofwhich are available on the website of the Company at www.selanoil.com under InvestorInformation section.

Financial Review

The Company achieved the following results over the past two years :

(in Rs lakhs)

2019-20 2020-21
Net Sales 8960 4882
EBIDTA 6365 2105
EBIDTA / Net Sales 71% 43%
Reserves and Surplus 31256 31121

Total Reserves and Surplus of the Company stand at Rs 311 crores as on 31 March 2021.The Board has not recommended any transfer to General Reserves from the profits during theyear under review.

Meetings of the Board & Committees

There were nine Board Meetings held during the Financial Year 2020-21. Details of theBoard and Committee meetings forms part of the Corporate Governance Report. Theintervening gap between the meetings was within the period prescribed under the CompaniesAct 2013 and the SEBI (LODR) Regulations 2015 and subsequent amendments thereof.

Declaration of Independence by Directors and statement on compliance of Code of Conduct

The Independent Directors of the Company have submitted a declaration meeting thecriteria of Independence as provided in Section 149(6) of the Companies Act 2013 andRegulation 25(8) of SEBI (LODR) Regulations 2015. The above Declaration has been taken onrecord. Further All the Independent Directors of the Company have also complied with theCode for Independent Directors prescribed in Schedule IV of the Companies Act.

Directors Responsibility Statement

Pursuant to the requirement under Section 134 (5) of the Companies Act 2013 withrespect to Directors' Responsibility Statement it is hereby confirmed that:

(i) In the preparation of the annual accounts the applicable accounting standards havebeen followed along with proper explanation relating to material departures;

(ii) The Directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company at the end of the financial year and ofthe profit and loss of the Company for that period;

(iii) The Directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of this Act for safeguardingthe assets of the Company and for preventing and detecting fraud and other irregularities;

(iv) The Directors have prepared the annual accounts on a going concern basis;

(v) The Directors have laid down internal financial controls to be followed by theCompany and that such internal financial controls are adequate and were operatingeffectively; and

(vi) The Directors have devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and are operating effectively.

Policy on Directors' Appointment and Remuneration

The Nomination and Remuneration Committee as constituted by the Company in compliancewith Section 178 of the Companies Act 2013 read along with the applicable rules theretoand Regulation 19 of Listing Regulation lays down a framework in relation to theappointment and remuneration of Directors Key Managerial Personnel and Senior ManagementPersonnel.

The role of the Committee is to guide the Board in matters specifically concerning theappointment and remuneration of Directors and formulate the criterion for determiningqualifications positive attributes and independence of a Director and recommend to theBoard a policy relating to the remuneration of Directors and Key Managerial Personnel. TheCommittee formulates a criteria for evaluation of Board of Directors including theIndependent Director. It also recommends to the Board on the remuneration payable to theDirectors Key Managerial Personnel and Senior Management. The role of the NominationCommittee is to review the structure skills and composition of the Company Board. TheCommittee considers suitable nominations for appointments to the Board and makesappropriate recommendations based on qualifications skills and experience of theManagerial Personnel. It recommends the remuneration of Directors and Key ManagerialPersonnel which is approved by the Board of Directors subject to approval ofshareholders where necessary. Considering the requirement of skill set on the Boardeminent people having an independent standing in their respective field / profession andwho can effectively contribute to Company's business and Policy decisions are consideredby the Nomination and Remuneration Committee for appointment as an Independent Director onthe Board. The Committee gives due consideration to ethical standards of integrityqualification expertise and experience of the person for appointment as Director andensures that such a person is not disqualified under the Companies Act 2013 and rulesmade thereunder and accordingly recommends his / her appointment to the Board.

Remuneration to Whole-Time Director is governed under the relevant provisions ofCompanies Act 2013 and rules made thereunder. Independent/ Non-Executive Directorsexcluding Promoter Directors are paid sitting fees as per the provisions of the CompaniesAct 2013 for attending the meetings of the Board / Committees thereof.

The objective and broad framework of the Remuneration Policy as adopted by the Companyis to consider and determine the remuneration based on the fundamental principles ofpayment for performance potential and growth. The Nomination and Remuneration Policy asapproved by the Board may be accessed on Company's website at www.selanoil.com. TheBoard considers the Nomination and Remuneration Committee's recommendations andsubsequently takes appropriate decisions.

Contracts / Arrangements with Related Parties

All the Related Party Transactions are entered on arm's length basis in the ordinarycourse of business and are in compliance with the applicable provisions of the CompaniesAct 2013 and the SEBI (LODR) Regulations 2015.

There are no materially significant Related Party Transactions made by the Company withPromoters Directors or KMP etc. which may have potential conflict with the interest ofthe Company at large and which warrants the approval of shareholders. Accordingly thedisclosure of Related Party Transactions as required under Section 134 (3)(h) of theCompanies Act 2013 in Form AOC-2 is not applicable to the Company. Your Company hasadopted a Related Party Transaction Policy. The Audit Committee reviews this policy fromtime to time and details of all related party transactions are reported to the AuditCommittee for scrutiny / review and referred for approval of the Board on a quarterlybasis. Omnibus approval is obtained for the transactions which are foreseen and repetitivein nature. Transactions with Related Parties are conducted in a transparent manner withthe interest of the Company as utmost priority. Details of such transactions are given inthe accompanying Financial Statements. The Company's policy on Related Party Transactionsis available at our website at www.selanoil.com.

Risk Management

Selan operates in a dynamic operating environment having in place comprehensive riskassessment and minimization procedures which are reviewed by the Board periodically. TheCompany has laid down a well defined risk management mechanism covering the risk mappingand trend analysis risk exposure potential impact and risk mitigation process. Itincludes identifying risks assessing their probabilities and consequences developingmanagement strategies and monitoring their state to maintain situational awareness ofchanges in potential threats. The objective of risk management in the Company is to act asan enabler in maintaining its knowledge edge sustaining and expanding the business beingcompetitive and ensuring execution of projects within budgeted cost time and qualityresulting in improved turnover and profitability.

The compliances related to Risk Management Committee as per Regulation 21 of SEBI(LODR) Regulations 2015 are not applicable on our Company hence the Company need not tocomply with the provisions relating to formation of Risk Management Committee.

Board Evaluation

The Board carries out an Annual Performance Evaluation of its own performance of itsDirectors individually and that of its Committees in compliance with the provisions of theCompanies Act 2013 and Regulation 17(10) of the SEBI (LODR) Regulations 2015. During theyear a Separate Meeting of Independent Directors was held on 06 February 2021 to assessthe performance evaluation of the Non-Independent Directors the Chairperson of theCompany as well as the Board as a whole taking into account the views of the ExecutiveDirector and Non -Executive Directors. Performance Evaluation is based on theircontribution to Company's objectives and plans efficient discharge of theirresponsibilities participation in Board / Committee meetings and other relevantparameters.

Board of Directors and KMP

There was no change in the composition of Directors during the year under review. Ms.Deepa Bhalla Company Secretary and Compliance Officer (KMP) was appointed on 16 May 2020.Mr. M. Singh Independent Director whose term expires on 10 August 2021 beingeligible offers himself for re- appointment as an Independent Director with effect from11 August 2021 to 10 August 2026.

Ms. S. B. Dalal Independent Director whose term expires on 26 December 2021being eligible offers herself for re-appointment as an Independent Director with effectfrom 26 December 2021 to 25 December 2026. The Nomination and RemunerationCommittee of the Company has duly recommended their re-appointment for a further period of5 years. The Company has received declarations from the abovesaid IndependentDirectors of the Company confirming that they meet the criteria of Independence asprescribed under sub-section (6) of Section 149 of the Companies Act 2013 andListing Agreement with the Stock Exchanges. The Board has approved their re-appointmentsubject to approval of shareholders in the ensuing Annual General Meeting. The IndependentDirectors of the Company have registered themselves with the Indian Institute of CorporateAffairs Manesar (‘IICA') as required under Rule 6 of the Companies (Appointment andQualifications of Directors) Rules 2014. They have served for more than three years onthe Board of listed entities and hence are not required to pass the online proficiencyself-assessment test as per the proviso to Rule 6(4) of Companies (Appointment andQualification of Directors) Rules 2014. The Company has eminent individuals from diversefields as Directors on its Board who bring in the required skills integrity competenceexpertise and experience that are required for making effective contribution to the Board.

Whistle Blower Policy

The Company has adopted a Vigil Mechanism /Whistler Blower Policy to provide a formalmechanism for the directors and employees to report their concerns about unethicalbehavior actual or suspected fraud or violation of the Company's Code of Conduct orPolicy. This Policy provides for adequate safeguards against victimization of employeeswho avail of the mechanism and also provides for direct access to the Chairman of theAudit Committee. It is affirmed that no personnel of the Company has been denied access tothe Audit Committee. The policy can be viewed on the Company's website atwww.selanoil.com.

Audit Committee

The Audit Committee of the Company coordinates with the management team independentauditors and internal auditors to monitor the choice of accounting policies principlesand to ensure compliance with the applicable laws and regulations.

The Audit Committee comprises of five members out of which four are Non-Executive andIndependent Directors including the Chairman. The Audit Committee's composition powersand role are included in the Corporate Governance Report. All the recommendations made bythe Audit Committee were accepted by the Board of Directors. Mr. M. Singh was theChairman of the committee during the financial year. Having adequate financial andaccounting knowledge Mr. Singh ensured compliance with the internal financial controlsystems and devised appropriate systems and frameworks aligned with the businessrequirements.

Internal Financial Controls and their adequacy

Selan ensures adherence to adequate Internal financial controls systems with respect tothe policies and procedures adopted by the Company for the orderly and efficient conductof its business including adherence to Company's policies involving safeguarding of itsassets prevention and detection of frauds and errors and ensuring the accuracy andcompleteness of the accounting records together with the timely preparation of reliablefinancial information.

In compliance with the provisions of Section 134(5)(e) of the Companies Act 2013 theDirectors have an overall responsibility for ensuring that the Company has implemented arobust system and framework of Internal Financial Controls. This provides the Directorswith reasonable assurance regarding the adequacy and operating effectiveness of controlswith regard to reporting operational and compliance risks. The Audit Committee evaluatesthe internal financial control systems periodically and ensures that the Company hasdevised appropriate systems and framework including proper delegation of authoritypolicies and procedures effective IT systems aligned with business requirements riskbased internal audits risk management framework and whistle blower mechanism. These areroutinely tested and certified by Statutory as well as Internal Auditors.

Statutory Auditors

M/s J. A. Martins & Co. Chartered Accountants (FRN:010860N) Statutory Auditors ofthe Company were appointed in the 32nd AGM to hold office until the conclusion of 37thAGM.

The Statutory Auditors have confirmed their eligibility and submitted their certificateof disqualification to hold office of Statutory Auditors of the Company. There are noqualifications or reservations or adverse remarks or frauds reported by the Auditors intheir Report.

Cost Auditor

The Board of Directors have in accordance with the terms of Section 148 of theCompanies Act 2013 and on the recommendation of Audit Committee approved the appointmentof Mr. R. Krishnan Cost Accountant (Membership No. 7799) as the Cost Auditor of theCompany for the Financial Year 2021-22 at a remuneration of Rs120000/- per annum toconduct the audit of its cost accounting records. The proposed remuneration of the CostAuditor shall be ratified by the members in the ensuing AGM. The Cost Audit for the yearended 31 March 2020 was carried out by Mr. R. Krishnan and the report was filed on

09 September 2020. There are no qualifications or reservations or adverse remarks orfrauds reported by the Auditors in their Cost Audit Report.

Internal Auditor

In compliance with the provisions of Section 138 of the Companies Act 2013 M/sV. Sankar Aiyar & Co. (FRN: 109208W) Chartered Accountants were appointed as InternalAuditors for the Financial Year 2020-21 to conduct the internal audit of the functions andactivities of the Company. Their Report to the Chairman of the Audit Committee had beensubmitted and this was further reviewed by the Management and had been taken on record.

Secretarial Auditor

The Board of Directors of the Company have reappointed M/s Nityanand Singh & Co.(ICSI Membership No. 2668 and Certificate of Practice No. 2388) Practicing CompanySecretaries for conducting Secretarial Audit of the Company for financial year 2020- 21.In terms of provisions of section 204(1) of the Companies Act 2013 the Secretarial AuditReport forms part of this Annual Report as Annexure-A. There are no qualifications orreservations or adverse remarks or frauds reported by the Auditors in their SecretarialAudit Report.

Corporate Governance Report

The external environment in which Companies operate has become increasingly complex forCompanies and shareholders alike. The increased regulatory burdens imposed on Companies inthe recent years have added to the costs and complexity of overseeing and managing acorporation's business and brings new challenges from operational regulatory andcompliance perspectives.

Corporate Governance is ensured by taking ethical business decisions in a fair andtransparent manner with a fair commitment to values while meeting stakeholder'sexpectations. In compliance with the SEBI (LODR) Regulations 2015 ManagementDiscussion and Analysis and a Report on Corporate Governance along with the Certificatefrom Auditors regarding compliance of conditions of Corporate Governance is annexed to theDirectors' Report. A declaration by the Whole-Time Director regarding the compliance withthe Code of Conduct also forms part of this Annual Report.

Annual Return

A copy of the Annual Return is placed on the website of the Company atwww.selanoil.com.

Loans Guarantees or Investments

The Company has not given any loan or guarantee or provided securities during the year2020-21 which may attract the provisions of Section 186 of the Companies Act 2013.However details of investments covered under the provisions of Section 186 of theCompanies Act 2013 form part of the notes to the Financial Statements provided in thisAnnual Report.

Deposits

No Deposits had been accepted by the Company during the year under report. Further theCompany also did not have any deposits remaining unpaid or unclaimed at the end of theyear.

Significant and Material orders passed by the Regulators Courts Tribunals Statutoryor Quasi- Judicial bodies

No significant or material orders were passed by the Regulators or Courts or Tribunalsor Statutory or Quasi- Judicial bodies which impacts the going concern status andCompany's operations in future.

Women Empowerment

Women's equality in power sharing and active participation in decision making at alllevels is essential to ensure the achievement of the goals of empowerment. SELAN's‘Policy on Prevention of Sexual Harassment of Women at Workplace' is in line with theprovisions of the Sexual Harassment of Women at Workplace (Prevention Prohibition andRedressal) Act 2013 and the Rules made thereunder which provide for protection againstsexual harassment of women at workplace and for prevention and redressal of suchcomplaints received by the Company. SELAN has always believed that an appropriate standardof conduct should be maintained by the employees in their conduct and that there should bea safe indiscriminatory and harassment free (including sexual harassment) workenvironment for every individual working in the Company. Internal Complaints Committee hasbeen set up to redress complaints if any received regarding sexual harassment. We affirmthat adequate access would be provided to any complainant who wishes to register acomplaint under the Policy. During the year under review the Company did not receive anycomplaint under the Policy.

CEO / CFO Certification

Mr. R. Kapur Whole- Time Director and Mr. V. Kirpal CFO of the Company have certifiedto the Board that all the requirements of the SEBI (LODR) Regulations 2015 inter- aliadealing with the review of Financial Statements and Cash Flow Statement for the year ended31 March 2021 transactions entered into by the Company during the said year theirresponsibility for establishing and maintaining internal control systems for financialreporting and evaluation of the effectiveness of the internal control systems and makingof necessary disclosures to the Auditors and the Audit Committee have been duly compliedwith.

Conservation of Energy Technology Absorption Foreign Exchange Earnings and Outgo

The activities undertaken by your Company do not fall under the scope of disclosure ofparticulars under Section 134(3)(m) of the Companies Act 2013 to the extent whereit relates to the conservation of energy and technology absorption. Particulars withregard to foreign exchange outgo appear as point no. 49 of the Notes forming Part of theAccounts.

Material Changes and Commitments

There have not been any material changes and commitments affecting the financialposition of the Company between the end of the Financial year of the Company as on 31March 2021 and the date of this report.

General Information

Please refer to the Management Discussion and Analysis section of this Annual Report.

Capital Structure

There was no Change in the Capital Structure of the Company during the year underreview.

Corporate Social Responsibility

Selan as a responsible Corporate is committed to driving societal progress whilefulfilling its business objectives. With safety health and environment protection beinghigh on its corporate agenda Selan is committed to conduct business with a strongenvironmental conscience so as to ensure sustainable development safe work places andenrichment of life of its employees clients and the community. The Company has in place aCSR Policy in line with Schedule VII of the Companies Act 2013 and is available at theCompany's website at www.selanoil.com. Brief details about the CSR Committee and the CSRPolicy developed and implemented by the Company on CSR initiatives taken during the yearis given in Annexure-B to this Report.

Compliance with Secretarial Standards

The Company is in compliance with the applicable Secretarial Standards issued by theInstitute of Company Secretaries of India.

GENERAL DISCLOSURES

1. Your Directors state that no disclosure or reporting is required in respect of thefollowing items as there were no transactions on these items during the year under review:

(a) Issue of shares or other convertible securities.

(b) Issue of equity shares with differential rights as to dividend voting orotherwise.

(c) Issue of equity shares (including sweat equity shares and employee stock options)to employees of the Company under any scheme.

(d) Issue of debentures bonds warrants or any other non- convertible securities.

2. The Company does not have any subsidiaries. Hence Whole- time Director of theCompany did not receive any remuneration or commission during the year from any of itssubsidiaries.

3. The Company has not revised its Financial Statement and Report during the threepreceding financial years.

4. There are no applications filed for corporate insolvency process by a financial oroperational creditor or by the company itself under the Insolvency and Bankruptcy Code2016 before the NCLT.

5. The Company has not obtained any credit rating from any credit rating agency.

6. Disclosures relating to Subsidiaries Associates and Joint Ventures – NotApplicable

7. The Company has not commenced any new business nor discontinued / sold or disposedoff its existing business.

8. Currently the Company operates in only one Business Segment that is Production ofCrude Oil and Natural Gas. There is no change in the status of the Company and financialyear.

9. The Company has not made any acquisition merger expansion modernization ordiversification and there is no development or acquisition or assignment of materialIntellectual Property Rights.

10. No material event has taken place which has an impact on the affairs of the Companyexcept the impact of Covid-19 pandemic.

11. During the financial year ended 31 March 2021 securities of the Company have notbeen suspended from trading on any of the Stock Exchanges where they are listed.

12. Company has obtained a certificate from Mr. Nityanand Singh Company Secretary inpractice confirming that none of the Directors on the Board of the Company have beendebarred or disqualified from being appointed or continuing as Directors of Companies bythe Board / Ministry of Corporate Affairs or any such statutory authority.

Personnel

The information required pursuant to Section 197 read with Rule 5 of the Companies(Appointment and Remuneration of Managerial Personnel)

Rules 2014 in respect of employees of the Company is provided in Annexure -C.

Appreciation

The Directors take this opportunity to express their gratitude to all our customersvendors investors auditors and bankers who have motivated the Company to excel in allits pursuits and constantly contributed towards making the Company more valuable.

On behalf of the Company we wish to convey our deepest appreciation to the Ministry ofPetroleum and Natural Gas (MoPNG) Directorate General of Hydrocarbons (DGH) Ministry ofEnvironment and Forests (MoEF) Government of India and the Bankers of the Company fortheir continuous support cooperation and guidance.

The Company would like to place on record the valuable contributions made by Late Mr.P.S. Oberoi one of the senior most members of the Company's management team during hisnearly three decade long association with the Company.

The Directors also place on record the enthusiasm and unstinting efforts of all theemployees at all levels for their hard work dedication and commitment without which theCompany would not have been able to undertake the challenging targets in all areas ofoperations. SELAN believes in empowering its employees through greater knowledge teamspirit and developing greater sense of responsibility. We are fortunate to have such ateam whose endeavors have laid a strong foundation for the success of our organization asa whole.

For and on behalf of the Board
R. KAPUR
Place : New Delhi Chairman
Date : 25 June 2021 (DIN : 00017172)

.