The behalf of the Board of Directors of your Company, I am delighted to
present the 28th Annual Report of your Navratna Company along with
Audited Financial Statements for the Financial Year 2011-12.
Your Company has recorded sustained growth in all key financial
parameters during the year 2011-12 and the important financial high
lights are as under:-
(Rs. in crore)
Particulars 2011-12 2010-11
Income from operations (Net of ED) 40,281 32,459
Other Income 549 519
Cost of Sales (excluding Interest and 34,583 27,005
Depreciation and including extra ordinary items)
Gross Margin 6,247 5,973
Interest 116 83
Depreciation 791 650
Profit Before Tax 5,340 5,240
Provision for Tax 1,686 1,679
Profit after Tax 3,654 3,561
Interim Dividend 381 254
Proposed Final Dividend 723 698
Corporate Dividend Tax 179 155
Net Transfer to/(From) Bond (24) 8
Transfer to General Reserve 365 356
Net surplus after Appropriations 2,030 2,090
Your Company has a consistent track-record of dividend payment. So far,
your Company has disbursed dividend of Rs. 9,403 crore to the
The Board of Directors of your Company had earlier approved the payment
of an interim dividend @30% on equity share of Rs. 10 each (Rs. 3/-per
equity share) amounting to Rs. 381 crore which was paid in the month of
January, 2012. Further, the Board has recommended the payment of Final
dividend @57% on equity share of Rs. 10 each (Rs. 5.70/- per equity share)
for the year 2011-12.
With this, the total dividend payment for the fiscal 2011-12 will be at
87% on equity share of Rs. 10 each (Rs. 8.70/- per equity share) amounting
to Rs. 1,104 crore on its paid-up equity capital of Rs. 1,268.48 crore. The
total dividend payout including tax accounts for 35% of profit after
CONTRIBUTION TO EXCHEQUER
Your Company has contributed over Rs. 5,560 crores to the exchequer by
way of duties, taxes, etc as compared to Rs.4,440crores in 2010-11.
Your Company has been reaffirmed the highest domestic credit rating of
AAA1 from ICRA, CARE and CRISIL which indicate the highest credit
quality and rated instruments carry the lowest credit risk. The
international rating agency, Moody''s International, Hong Kong, has
also reaffirmed the Corporate issuer rating of ''Baa2'', which is one
notch higher than sovereign rating and revised the local currency
issuer rating to''Baa2,from ''A31 to your Company in line with the
publication of Moody''s Rating Implementation Guidelines titled ''How
Sovereign Credit Quality May Affect Other Ratings Further, Fitch
Ratings has also assigned a long term Foreign Currency Issuer default
rating of ''BBB-1 with negative outlook which is equal to sovereign
Natural gas industry is poised to grow in future, which calls for an
effective strategy to reap maximum out of such potential. To pave the
way for future, your Company has developed strategy for the period
2011-2020 and the same has been approved by the Board of Directors.
Your Company aspires to become an integrated hydrocarbon major with
significant upstream, midstream and downstream interests by 2020. To
realize this ambition, your Company has identified several key growth
areas and initiatives, in all segments of hydrocarbon value chain.
In the Upstream segment, your Company plans for Merger & Acquisition
(M&A) to acquire equity stakes in gas producing assets/ liquefaction
facilities to source equity linked LNG at favorable terms for Indian
market. In addition, convention along-term LNG sourcing will continue
to remain the focus area for your Company, particularly in wake of
constrained domestic supplies. In order to support increased LNG
imports, your Company plans to set up new LNG terminal(s) and tie-up
additional re-gasification capacities in existing and upcoming LNG
Moving on to the Midstream segment, which has been the core area of
your Company, several gas pipelines are being laid to maintain
leadership in gas transmission. While ongoing pipeline projects such as
Dhabol-Bengaluru, Kochi-Mangalore/ Bengaluru pipeline, etc. which are
at different phases of execution, new projects like Jagdhishpur-Haldia
pipeline and Surat-Pradip pipeline will further add to the strength of
your Company''s core business of transmission. Your Company plans to
give additional focus on strong market development efforts and
strengthen marketing capability to remain the leading marketer of gas.
Further, considering growing demand of natural gas and India''s energy
security, your Company will continue to actively participate in
transnational pipeline projects like TAPI. Your Company has also
started international trading desk at Singapore and plans to establish
it fully in the coming years. The trading desk shall explore multiple
trading plays in LNG and petrochemicals in India and abroad to
accelerate marketing revenues.
Moving further on towards the natural gas retail segment, large Indian
cities will be the focus for city gas business expansion. Your Company
is strengthening its retail presence by setting up new city gas
projects in Kota, Dewas, Meerut and Sonepat through its wholly-owned
subsidiary, GAIL Gas Limited, which is also participating in PNGRB''s
upcoming bidding rounds for other city gas projects. GAIL Gas is
targeting additional40-50 cities/Geographical Areas (GAs) in the coming
In the Downstream segment, your Company aims to be amongst the top two
petrochemicals marketers in the country and for this, your Company
plans to set up new capacities and further increase marketing volumes
through trading. Your Company is currently doubling existing capacity
at Pata besides setting up two green field crackers, one in Assam
through its subsidiary, Brahmaputra Cracker and Polymer Limited (BCPL)
and another at Dahej through its Joint Venture Company, ONGC
Petro-additions Limited (OPaL). By the year 2014-15, your Company Will
have 1.7 MMTPA marketing volumes of polymers. For handling such a large
product portfolio, your Company plans to strengthen its petrochemical
trading capability as well as scale up its distribution network.
Your Company plans to give significant thrust on Diversification in
areas like gas based power and renewable energy. Gas based power
projects at various locations are being explored and various business
models are under consideration for setting up such projects. On
renewable energy front, your Company plans to set up 500 MW wind power
capacity in the next 3-4 years. Further, your Company is targeting to
set up over 300 MW of solar based power generation capacity in a phased
The above initiatives call for strengthening of human capital in tune
with the Vision and Goals set-out. Therefore, your Company plans to
grow capabilities in priority areas – global sourcing and
acquisitions, market development and trading, joint venture/subsidiary
management, capital productivity, E&P/shale, power generation, risk
management, regulatory management, international operations and soon.
BUSINESS SEGMENT ANALYSIS SEGMENTAL REVIEW
During the year under review, the segment wise business performance of
your Company is as under:
- Natural Gas Marketing
Natural gas continues to constitute the core business of your Company.
During the year 2011-12, Gas sales clocked 84.17 MMSCMD compared to
83.23 MMSCMD in the previous financial year. Major supplies of Natural
gas include fuel to power plants, feedstock for gas based fertilizer
plants and LPG extraction. Your Company holds around 50% market share
in gas marketing in India.
- Natural Gas Transmission
Your Company owns and operates a network of about 9,500 km of natural
gas high pressure trunk pipeline with a capacity of approx. 172 MMSCMD
of natural gas across the country. Gas transmission during the year was
117.62 MMSCMD compared to 117.91 MMSCMD in the previous financial year.
Your Company''s share of gas transmission business is around 74% in the
- LPG Transmission
Your Company is the only Company in India which owns and operates
exclusive pipelines for LPG transmission for third party usage. Your
Company owns and operates two LPG Pipeline transmission systems with a
total length of2,038 km. Out of this, 1,415 km of pipeline network
transports LPG from Western to Northern part of India (Jamnagar-Loni
Pipeline) and the balance 623 km of pipeline network transports LPG in
the Southern part of the country (Vizag-Secunderabad Pipeline). The LPG
transmission system has a capacity to transport upto 3.8 MMTPA of LPG.
In the year 2011-12, the LPG transmission throughput achieved was about
3.36 million MT.
During FY2011-12, your Company has produced 441 TMT of polymers and
sold 448TMTof polymers.
- LPG & Other Liquid Hydrocarbon Production
Your Company has 7 LPG plants in the country. In the year 2011-12,
total Liquid Hydrocarbon production was about 1.44 million MT which
mainly included 1.124 million MT of LPG, 0.146 million MT of Propane
and 0.146 million MT of SBP solvent and Naphtha.
- Exploration and Production (E&P)
The E&P portfolio of your Company is as follows:
India Overseas Total
Onshore Blocks 9 - 9
Shallow Water Blocks 7 - 7
Deep Water Blocks 13 2 15
Total 29 2 31
Hydrocarbon discoveries are in place in 7 E&P blocks (5 domestic blocks
and 2 overseas blocks).
Crude oil production is in progress from one of the on land blocks in
Cambay basin and during the year 2011-12, revenue of Rs. 81.19 Crore was
Development activities are in progress in the blocks A-1 and A-3,
Myanmar Offshore and production of gas is expected to start from 2013.
Declaration of commerciality has been approved in the Mahanadi Offshore
block (MN-OSN-2000/2). In other blocks with hydrocarbon discovery
(Cambay Onland-Ankleshwar, Cauvery Offshore and Tripura On
land),appraisal activities are under progress.
During the year, one CBM block (TR-CBM-2005/III- Tatapani Ramkola,
Chattisgarh) was relinquished as the gas content within the coalseams
Was found to be non-commercial.
Your Company has operatorship in 3 domestic E&P blocks. During the year
2011-12, 3 exploratory wells were drilled in Rajasthan onland block
(RJ- ONN-2004/1) where your Company is the Operator. Seismic data
acquisition is in progress in Cauvery onland block (CY-ONN-2005/1),
which is the second block where your Company is the Operator. One
Cambay onland block (CB-ONN-2010/11) has been awarded, where your
Company is the Operator, during NELP-IXbidding round.
- Overseas Business Initiatives
Your Company is actively pursuing overseas business opportunities in
the natural gas sector with an objective to contribute to the energy
security of the country. The rationale for going overseas is to secure
opportunities for from overseas tie-ups in newer areas such as shale
gas in addition to establish foothold in resource rich countries and to
strengthen and complement your Company''s core business.
Your Company is scouting for upstream acquisition opportunities
overseas in order to supplement gas sourcing initiatives on spot and
long term basis. Upstream assets acquisition would provide sourcing
opportunities besides additional revenue stream and potential upsides
through new discoveries. The geographies under focus are North America,
Africa, South-East Asia and Australia.
-Equity stake in two gas retail - 100% subsidiary, GAIL Global
Companies (Singapore) Pte Ltd. (GGSPL)
opened office in Singapore for
-GAIL Representative Office in - trading LNG, petrochemicals etc.
-Strategic partner in China Gas - Equity in Eagle Ford Shale Acreage
-50:50JV with China Gas Subsidiary- GAIL Global (USA) Inc.
-Partner in A1, A3 E&P Blocks
-Participation in Myanmar China
Pipeline through South-East Asia
Gas Pipeline Company Limited
Your Company has established a wholly-owned subsidiary, GAIL Global
(USA) Inc. in USA during 2011. This subsidiary acquired 20% stake in
Eagle Ford Shale acreage of Carrizo Oil & Gas Inc., which has
significant liquid content and is currently one of the attractive
unconventional resource plays in North America. The subsidiary is
operational with placement of manpower from your Company. Going forward
this subsidiary would explore other business opportunities in North
Further, your Company has signed a 20-year Sales and Purchase Agreement
(SPA) with Sabine Pass Liquefaction LLC, a unit of Cheniere Energy
Partners, for supply of 3.5 million tonnes/year of LNG. Your Company is
the first Asian company to execute the dealindexed to Henry Hub gas
price instead of the crude oilindices. Supplies are expected to
commence from 2016-17.
During FY 2011-12, your Company''s wholly-owned subsidiary, GAIL
Global(Singapore) Pte. Ltd. (GGSPL) opened its office in Singapore with
an objective to undertake trading activities in LNG and petrochemical
Under the aegis of Government of India, your Company is actively
pursuing import of gas through the proposed trans-national pipeline
originating in Turkmenistan and passing through Afghanistan and
Pakistan to India (TAPI pipeline). Your Company has executed the Gas
Sales Purchase Agreement (GSPA) with Turkmengaz for 38 MMSCMD for 30
year supply in May, 2012 at Ashgabat. Consequently, other agreements
and arrangements are likely to be concluded soon. Your Company is
playing lead role in the discussions on the project.
During FY 2011-12, your Company divested its entire stake in Shell CNG
Egypt (SCNGE) as it did not meet the strategic objectives.
- Domestic Business initiatives
The domestic business initiatives of your Company are as follows:
- Natural Gas Pipeline Projects
During the financial year, your Company completed commissioning of
various pipeline networks and auxiliary systems having a length of
about 1,337 km which include the following:
1. Commissioning of Compressors at Jhabua & Vijaipur
2. Dahej-Vijaipur Pipeline
3. Karanpur-Moradabad-Kashipur Pipeline and Connectivity to Siti
Energy & Sarvanthi Energy
4. Agra-Ferozabad Expansion
5. Connectivity to Meerut
Further, Bawana - NangalPipeline was charged with gas and the pipeline
network Dahej - Vijaipur - Dadri- Bawana - Nangal/ Bhatinda was
dedicated to the nation by Hon''ble Prime Minister of India during in
auguralceremony of Asia Gas Partnership Summit held on 23rd March,2012.
Due to increase in gas availability and commissioning of trunk lines,
last mile consumer connectivity has been provided to 32 number of
consumers in FY2011-12 for supplying approx 6.35 MMSCMD gas.
During 2011-12, your Company was awarded authorization by PNGRB through
a competitive bidding process to lay 1,500 km natural gas pipeline from
Surat in Gujarat to Paradip in Orissa, connecting west to east coast.
In order to have a robust presence in the Petrochemical sector, your
Company is doubling the capacity of its existing Petrochemical
manufacturing facilities at Pata to produce 9,00,000TPAof polymers.
Your Company is setting upa green-field 2,80,000TPA Petrochemical
Complex at Lepetkata in District Dibrugarh, Assam, through its
Subsidiary ,Brahmaputra Cracker and Polymer Limited (BCPL).
Further, your Company is also a co-promoter in ONGC Petro- additions
Limited (OPaL) which is implementing a green field petrochemical
complex of 1.4 MMTPA polymer capacity (dual feed cracker) in the
Special Economic Zone(SEZ) at Dahej, Gujarat.
- Power Sector
Recognizing the potential reforms undertaken in the power sector and
increased emphasis laid on capacity expansion in the power sector in
the XIIth 5year plan, your Company is exploring opportunities in gas
based power plants.
- LNG Rega sification Terminals
The increasing pace of demand for natural gas far outstrips its
availability from indigenous sources. LNG imports will have to keep
pace to meet the growing demand and bridge the gap in supply.
Currently LNG import terminals are located on the Western coast of the
country. Keeping in view the demand potential for natural gas
applications in the Eastern belt of the country and for feeding
proposed pipelines in the region, your Company is exploring setting- up
of a LNG import facility along the East Coast of India.
- Renewable Energy
At the beginning of the year, your Company had an installed capacity of
4.5 MW wind energy at Sinoi, District Bhuj, Gujarat. The power
generated was being wheeled for captive use by its installation in
Samakhiali, Kandla and Gandhar in the state of Gujarat. During this
year, it has set up another 14.7 MW wind energy projects in Gujarat for
captive usage and 98.75 MW wind energy projects in the states of
TamilNadu and Karnataka for commercial sale of power.
Further, in the year 2011-12, your Company entered into solar power
generation by winning the bid to setup a 5 MW Solar plant in Rajasthan
under Jawaharlal Nehru National Solar Mission (JNNSM).
For better serving the customer requirements and to bring about
Operational efficiency, your Company has always been at the forefront
Of adopting newer IT solutions.
Your Company has taken several new IT initiatives to enhance
productivity. SAP based Gas Management System (GMS), Governance, Risk &
Compliance (GRC) and Reverse Auction modules have been implemented to
enhance transparency, efficiency and customer satisfaction. Reverse
Auction facilitates your Company to generate greater competition and
reduce procurement cost.
Your Company has implemented an online bidding portal through which
existing customers can bid for supply of Spot RLNG gas. The system
dynamically captures the market spot prices against the bids and has
also reduced the overall cycle time of selling the spot gas. Further,
your Company has implemented Tender Monitoring System to enhance &
bring better transparency in the procurement process.
Your Company has also consolidated its IT infrastructure to a central
virtualized environment along with its Disaster Recovery (DR) setup in
line with the latest technological advancements in the industry. This
will provide better manageability of the infrastructure.
Your Company has implemented electronic Document Management System and
is rolling out the same all across company. All the important
information and records of your Company shall be digitized.
IT Security is a major thrust area of IT strategy and planning in the
organization. Post SAP upgrade, an external expert agency is auditing
entire IT systems and processes to strengthen Information Security,
identify the risk areas and mitigate them with latest Industry standard
The Business Information Systems department of your Company is
certified with ISO 9001:2008 standard.
SUBSIDIARIES &JOINT VENTURES
Your Company has formed Subsidiaries and Joint Venture companies for
Power Generation, Gas Trading, Shale Gas, LNG, City Gas Distribution
and Petrochemicals. Your Company is one of the pioneers to introduce
City Gas Projects in India for natural gas supplies to households,
commercial and transport sector through its subsidiaries and joint
The details of Subsidiary and Joint Venture Companies are mentioned
NATURAL GAS, LNG & POWER
- GAIL Global (Singapore) Pte Limited (Wholly owned Subsidiary)
GAIL Global(Singapore) Pte Ltd. is as an overseas investment arm of
the Company. Your Company is looking for LNG trading and Petrochemical
trading through this wholly owned subsidiary company in Singapore.
Total revenue of the Company for FY 2011-12 was USD 2,290,763 and
Profit After Tax was USD 2,033,075.
- GAIL Global (USA) Inc (Wholly owned Subsidiary)
GAIL Global(USA) Inc., a wholly owned subsidiary of your Company was
formed during the year 2011-12 to acquire 20% working interest in an
unincorporated joint venture with Carrizo Oil & Gas Inc. in the Eagle
Ford shale acreage in the state of Tex as. The subsidiary is
operational At Houston and going forward, would explore other business
opportunities in North America.
Total revenue of the Company for the year ended 31st December, 2011 was
USD 2.36 Mn and ProfitAfterTaxwasUSD0.26Mn.
- GAIL China Gas Global Energy Holdings Limited
The joint venture company was formed with an objective to pursue gas
sector opportunities, mainly in China. Potential gas sector projects
are being identified for implementation by the company. Your Company
has 50% equity interest in the company along with China Gas Holdings
Limited as equal partner.
- Petronet LNG Limited (PLL)
PLL, formed for setting up of LNG import and re-gasification
facilities, currently owns and operates LNG re-gasification terminal of
10 MMTPA capacity located at Dahej, Gujarat. PLL has a long term LNG
supply contract with Ras Gas, Qatar for import of 7.5 MMTPA of LNG.
Further, PLL is constructing a LNG re- gasification terminal at Kochi,
Kerala with a capacity of 5 MMTPA and is scheduled for commissioning in
fourth quarter of 2012. PLL has entered into long term LNG supply
contract with Exxon Mobil for the supply of 1.5 MMTPA of LNG for the
Kochi terminal, PLL. Your Company has 12.5% equity stake in PLL along
with BPCL,ONGC and lOCL as equal partners.
Total revenue of the Company for FY 2011-12 was Rs. 22,780.74 Cr. and
Profit After Tax was Rs. 1057.54 Cr.
- Ratnagiri Gas and Power Private Limited (RGPPL)
The capacity of the Ratnagiri Gas & Power Station is 1,967.08 MW which
is the largest gas based power generation facility in the country and
during the year 2011-12, the Company produced 11619 MUs (Gross) of
power. RGPPL is in the process of commissioning LNG Terminal of 5 MMTPA
capacity. Your Company has 31.52% stake in the Company along with NTPC
as equal partner. RGPPL is a joint venture company between your
Company, NTPC and other shareholders are MSEB Holding Co. Ltd. and
Indian Financial Institutions.
Total revenue of the Company for FY 2011-12 was Rs. 5223.83 Cr and Profit
After Tax was Rs. 1089.24 Cr.
- GAIL Gas Limited (Wholly owned subsidiary)
GAIL Gas was incorporated with an objective of focused implementation
of City Gas Distribution (CGD) projects in the Country. GAIL Gas has
already laid 215.15 Km steel pipeline and 370.05 Km MDPE pipeline in
these cities. GAIL Gas is operating 1 CNG station each at Dewas, Kota,
Meerut and Sonepat. It has also established CNG stations at Panvel,
Vijaipur and three stations at Vadodara. It is supplying natural gas to
67 industrial units in Kota, Dewas, Sonepat and Meerut. It has also
commenced gas supplies to 1,891 domestic customers progressively. To
encourage the conversion of vehicles on CNG and make CNG refueling
available at highways, GAIL Gas has commissioned 2 CNG stations and 3
stations are scheduled to be commissioned in 2012-13. Effective from
16.11.2011, your Company transferred the entire distribution network
and business in the Agra-Firozabad area to GAIL Gas Ltd. Accordingly,
GAIL Gas is now handling 347 customers in the region for daily sales
amounting to more than 1.3 MMSCMD.
Total revenue of the Company for FY 2011-12 was Rs. 289.01 Cr. and Profit
After Tax was Rs. 8.34 Cr.
- Aavantika Gas Limited (AGL)
AGL was incorporated with an objective of implementation of City Gas
Distribution (CGD) projects in the state of Madhya Pradesh. As on date,
AGL is present in three cities viz. Indore, Ujjain and Gwalior. AGL now
operates 11 CNG stations-7 daughter stations (5 at Indore and 2 at
Ujjain), 3 online stations (2 at Indore and 1 at Gwalior) and I Mother
station at Indore.
AGL also started supplying PNG to Domestic customers from December
2011. With this, AGL is now present in all the 4 business segments viz.
CNG for Transportation sector and PNG for industrial, Commercial and
Domestic sectors. Your Company has 22.5% stake in the Company along
with HPCL as equal partner.
Total revenue of the Company for FY 2011-12 was Rs. 50.47 Cr and loss was
Rs. 0.19 Cr.
- Bhagyanagar Gas Limited (BGL)
BGL was incorporated with an objective of implementation of City Gas
Distribution (CGD) Prpkect of the state of Andhra Pradesh. BGL is
currently operating 13 CNG stations in Hyderabad, 8 in Vijayawada, 2 at
Kakinada and 1 at Rajahmundry. Further, Project work in respect of
three CGD Projects, namely Hyderabad, Vijayawada and Kakinada are in
progress. During FY 2011-12, it completed 2,872 PNG registrations in
Hyderabad, 150 registrations in Vijayawada and 1,014 registrations in
Kakinada. Your Company has 22.5% stake in the Company along with HPCL
as equal partner.
Total revenue of the Company for FY 2011-12 was Rs. 42.02 Cr and loss was
- Central U.P. Gas Limited (CUGL)
CUGL was incorporated with an objective of implementation of City Gas
Distribution (CGD) projects in the state of Uttar Pradesh. CUGL is
presently operating one Mother CNG station each at Kanpur & Bareilly
and 10 more online stations in Kanpur. Presently, CUGL is supplying
CNG to 20,000 CNG vehicles in Kanpur and 5,000 CNG vehicles in
Bareilly. As on date, CUGL is supplying PNG to 24 industrial, 26
Commercial and 8 customers using PNG for power generation through gas
generator. Presently, CUGL is supplying 0.175 MMSCMD of gas in form of
CNG and PNG in both the cities. Your company has 25% stake in the
Company along with BPCL as equal partner.
Total revenue of the Company for FY 2011-12 was Rs. 115.02 Cr. and Profit
After Tax was Rs. 21.11 Cr.
- Green Gas Limited (GGL)
GGL was incorporated with an objective of implementation of City Gas
Distribution (CGD) GGL projects in the state of U.P. GGL is currently
operating 7 CNG stations in Lucknow and 4 CNG stations in Agra. GGL is
supplying CNG to almost 18,000 vehicles. GGL has also commenced the
domestic gas supply in both Lucknow and Agra city and industrial gas
supply in Lucknow. MoPNG has authorized GGL for CGD in Lucknow & Agra.
Your Company has 22.5% stake in the Company along with IOCL As equal
Total revenue of the Company for FY 2011-12 was Rs. 101.48 Cr. and Profit
After Tax was Rs. 23.17 Cr
- Indraprastha Gas Limited (IGL)
IGL was incorporated with an objective of implementation of City Gas
Distribution (CGD) projects in Delhi and adjoining cities of Noida,
Greater Noida, Ghaziabad, Gurgaon and Faridabad. IGL is supplying piped
gas to over 3.32 lac domestic consumers, 223 industrial and 639
commercial consumers in Delhi, Noida, Greater Noida and Ghaziabad. A
total of 308 CNG stations have been set up by IGL in the region out of
which 245 CNG stations are currently in operation. IGL is catering to
CNG requirements of over 5 lac vehicles operating in the region which
also includes the entire public transport of national capital and also
world''s largest bus fleet on CNG. Your Company has 22.5% stake in the
Company along with BPCL as equal partner.
Total revenue of the Company for FY 2011-12 was Rs. 2,525.34 Cr. and
Profit After Tax was Rs. 306.43 Cr.
- Mahanagar Gas Limited (MGL)
MGL was incorporated with an objective of implementation of City Gas
Distribution (CGD) projects in the city of Mumbai and adjoining areas.
MGL has presently set up 151 CNG stations catering to about 2.4 lac
vehicles spread over Mumbai, Thane, Mira- Bhayander and Navi-Mumbai
area besides supplying PNG to about 5.6 lac domestic customers and
about 1,540 small industrial & commercial consumers. Accepting the
Central Government authorization, the PNGRB has granted authorization
and exclusivity for the existing areas of Mumbai, Thane, Navi Mumbai
and Mira-Bhayander and expansion areas of Kalyan, Dombivali, Ambernath,
Badlapur, Ulhasnagar, Bhiwandi, Taloja, Kharghar and Panvel. Your
Company has 49.75% stake in the Company along with British Gas as Equal
Total revenue of the Company for FY 2011-12 was Rs.1,328 Cr. and Profit
After Tax was Rs. 308.58 Cr.
- Maharashtra Natural Gas Limited (MNGL)
MNGL was formed for implementation of City Gas Projects in and around
Pune MNGL city.
MNGL has received authorization from MoPNG for CGD in Pune including
Pimpri, Chinchwad,Talegaon, Hinjewadi & Chakan areas. At the close of
the FY 2011-12, MNGL is supplying CNG to more than 27.000 vehicles
which is comprising of 21.000 autos, 370 buses, 4,800 private cars and
950 taxis which are plying in Pune and Pimpri - Chinchwad. CNG is being
sold through 17 CNG stations spread across the city. MNGL is also
supplying PNG (Piped Natural Gas) to around 2,400 domestic, 20
industrial and 5 Commercial customers. Your Company has 22.5% stake in
the Company along with BPCL as equal partner. Government of Maharashtra
(provisional), IDFC (PE), IL&FS and Axis Bank are other Equity partners
Total revenue of the Company for FY 2011-12 was Rs. 76.89 Cr. and Profit
After Tax was Rs. 12.23 Cr.
Tripura Natural Gas Company Limited (TNGCL)
TNGCL was incorporated with an objective of implementation of City Gas
Distribution (CGD) Projects in Agartala. Presently, there are about
10,000 Domestic, 205 Commercial and 8 Industrial Consumers and 2 CNG
Stations (one Mother Station &one Daughter Booster Station). Your
Company has 29% stake in the Company.
Total revenue of the Company for FY 2011-12 was Rs. 24.90 Cr. and Profit
After Tax was Rs. 3.50 Cr.
- Brahmaputra Cracker and Polymer Limited (BCPL) (Subsidiary)
BCPL is setting up a 2,80,000TPA polymer plant and project execution is
in progress. Your Company has 70% equity share in BCPL with OIL, NRL
and Government of Assam each having 10% equity share. The total revised
project cost as approved by CCEA in November 2011 is Rs. 8,920 Crores.
Gas Supply agreements with Oil India Limited and ONGC and the term
sheet agreement for Naphtha with NRL is in place, thereby making the
feedstock secured for the plant. Entire land for the project has been
acquired by BCPL. Civil and structural works for all the process units
is at the final stage of completion. Mechanical& Piping works is going
on full swing. The mechanical completion of the project is scheduled on
July 2013 and commissioning on December 2013.
ONGC Petro-additions Limited (OPaL)
OPal is implementing a green field petro chemical complex of Dahej in
the State of Gujarat. Your Company is a co-promoter with 17% equity
stake in ONGC Petro-additions Limited (OPaL). Oil and Natural Gas
Corporation (ONGC) and Gujarat State Petroleum Corporation Limited
(GSPC) are the other promoters of the company.
HEALTH, SAFETY & ENVIRONMENT
Your Company is a responsible Corporate Citizen and Health, Safety &
Environment (HSE) excellence has been extensively promoted as a
corporate culture within the organization. The safety and health of
employees and external stakeholders are embedded in the core
organizational values of the Company.
Corporate Health, Safety & Environment (HSE) Policy
Your Company is committed to promote globally comparable levels of
Health, Safety, Environment Management System in the areas of its
business of exploration and production of Hydrocarbons, transmission
and distribution of Natural Gas, production of Petrochemicals and LHCs,
transmission of LPG, and generation of Power etc. with a focus on
improving harmony with environment through Sustainable Development.
Your Company has always strived to maintain highest standards of safety
and this is reflected in the HSE index which evaluates the safety
performance of the organization on various elements of Health, Safety
and Environment covering all business activities.
Year HSE Index
MoU Target (%) Achieved (%)
2010-11 97.5 98.92
2011-12 98.0 99.05
Your Company has always endeavored to keep its employees fully aware of
the HSE aspects and to meet this objective, regular training to
employees, contract workers, etc. is provided through internal as well
as external resources.
Your Company organized a two day HSE workshop for all business heads,
fire & safety heads and HR representatives from sites. Theme of this
year''s workshop was Occupational Health in view of the ever rising
risks to health while on the job and to create awareness amongst the
employees regarding methods & measures to mitigate these risks.
To ensure compliance to statutory rules and regulations, implementation
of safe work practices, and continual improvement in Safety Management
System, your Company installations are being regularly audited through
External Safety Auditors and experienced in-house auditors. During the
year 2011-12, 27 External Safety Audits and 07 audits by experienced
in- house auditors were undertaken.
Your Company has a Corporate Occupational Health Committee supported by
06 local level Occupational Health Committees which meet every quarter
for continuous monitoring and improvement of the occupational health of
the employees. During the year 2011-12, all employees at the work
centers were medically examined.
SUSTAINABILITY-CONTRIBUTION TO TRIPLE BOTTOM LINE
Creating value beyond business forms the ethos of work at your Company.
Besides wealth and value creation in financial and economic terms, your
Company has always strived for providing value beyond business by
taking care of the environment and society.
Your Company has taken steps to improve the governance structure of
Sustainability. The Board of Directors has formed a Sustainable
Development Sub-Committee to formulate, monitor and approve the
sustainable development plans and implementation. In addition to this,
a senior level steering committee has been formed for planning and
monitoring the project implementation.
Your Company is progressively creating a port folio of renewable
businesses (solar, wind, etc.) in order to grow the share of cleaner
energy in the overall energy mix. Besides, your Company is taking up
several other initiatives to promote sustainable development such as
Global Methane Initiative, Green House Gas Accounting Report to
Measure, Manage & Mitigate GHG emissions, construction of future
buildings as green buildings, and so on.
Your Company is taking measures for improving efficiency of Operational
processes to make them more environment friendly. This not only ensures
enhanced energy efficiency but also has a positive impact on climate
change and stimulates innovation across operations to enable better and
Bombay Stock Exchange has recently launched the first environment
friendly equity index named GREENEX. Your Company is the only company
from Oil and Gas Sector to be listed in BSE- GREENEX. This is a major
milestone in its sustainability journey.
Your Company has also come up with its first Sustainability Report with
the theme - ''Value Beyond Business The report is based on the GRI G3
Guidelines for the financial year 2010-11 to efficiently disseminate
information on various measures taken by the company on social,
economic and environmental fronts.
The Report highlights your Company''s business philosophy to grow in a
way which is sustainable for the economy, the stakeholders, the
community and the environment. Your Company has tried to address key
issues which are of imperative concern for its business and
Your Company looks upon this effort as an essential aspect for
enhancing its corporate governance structure and transparency, a way to
analyze and improve its business processes and operations and an
efficient communicative tool with its stakeholders
The complete details about the sustainability performance of your
Company are available in the Sustainability Report available at website
of your Company under the section on Sustainable Development.
CONTRIBUTINGTO SOCIAL PROGRESS
Corporate Social Responsibility(CSR) is an integral part of your
Company''s ethos and culture. Your Company has a dedicated team,
operating within the framework of a well-structured CSR Policy which
mandates contribution of 2 % of your Company''s Profit after Tax to
Following the ''Project Based Approach'' as put- forth by the DPE and
as detailed in your Company''s CSR policy, your Company has
implemented CSR Programmes primarily in and around the rural are as
adjoining major GAIL work centres/installations. These programmes are
taken up under the seven thrust areas identified by your Company -
Education /Literacy Enhancement, SkillDevelopment/ Empowerment,
Community Development, Drinking Water/Sanitation, Environment
Protection/ Horticulture, Infrastructure and Healthcare/ Medical
facility. Major initiatives undertaken by your Company under these
thrust areas are detailed in Management Discussion & Analysis.
VALUING HUMAN RESOURCES
Your Company takes pride in its highly effecient and engaged workforce
which falls in Best Employer/ High Performance Range according to the
survey undertaken by M/s Aon Hewitt Pvt Ltd on Employee Engagement. A
highly committed and motivated young work force at your Company, have
also been the reason behind continuous rise in value added per employee
during the lasts years. Value added per employee gives an account of
efforts of company''s employees to make the best and most productive
use of the resources available to them.
To fulfill the objective of Capability Development of organization''s
human resource, your Company has been offering various training
programs related to the gas value chain for professional development of
executives working in the Oil & Gas sector from its training centers
''GAIL Training Institute''(GTI) at Noida and Jaipur. To achieve your
Company''s vision, GTI is designing programs to sharpen knowledge,
improve skills, align attitude and promote efficient use of latest
During the year, GTI organized 177 training programs through which it
imparted 14,079 mandays training to your Company''s employees. Apart
from in-house training programs, the employees are also nominated for
attending external training programmes on contemporary subjects. This
year, GTI had launched e-Gyan Prawah an e-Learning initiative for
senior executives through Harvard Management Mentor covering 44
e-learning modules to support the key developmental areas. Further,
customized Executive Development programs are also being organized
through IIM Calcutta & Bangalore.
With an aim to create a learning environment and total quality culture
in terms of people, products, services, work life, safety, energy and
environment several Business quizzes were organized in English as
well as in Hindi language. In order to motivate women employees in the
organization, GTI has been taking forward the unique initiative of
conferring annually ''GAIL Women Employees Award.
Mentoring has been introduced for Executive Trainees (ETs) joining the
organization to facilitate structured learning of Company''s culture.
In addition, GTI has also organized programs on creating awareness on
sustainable development across all work centers. Several other
initiatives such as O&M seminar, Case study workshop, HSE summit, etc.
were organized during the year with an objective of knowledge
dissemination & experience sharing.
GTI conducted courses in the field of City Gas/CNG, Natural Gas/LPG
Pipeline Operation &Maintenance,Petrochemical,0&M,and Fire & Safety for
the participants from external organizations like IOCL, BPCL, RGPPL,
BCPL, IGL, MNGL, Adani Gas Ltd, Siti energy, Sabarmati Gas, UP Fire
Service Departments, OPaL, Honda Scooters & Motorcycles, etc. As an
Authorized Training Provider to American Society of Mechanical
Engineers (ASME), GTI is regularly conducting specific ASME certified
With consistent efforts of team members and valued contribution of
faculty, GTI achieved a training efficacy score of 91.76% during the
- Leadership Development Program
Your Company realizes that it is critical to continually strive to
develop and enhance the capability and competence of its existing
talent pool. With the objective of development of its senior level
executives and preparing them for future leadership positions, Senior
Management Development Centre (SMDC) exercise has been undertaken as
part of the Leadership Development Program. SMDC has been conducted for
senior executives at Chief Manager and above grades. 471 such senior
executives have been covered through this exercise.
Taking the next step forward in the direction of Leadership
Development, a detailed Individual Development Plan (IDP) has been
drawn Up for all the participants of SMDC exercise which consists of
customized training programmes, e-learning courses and suggested
readings with emphasis on the development areas as identified.
The main thrust of vigilance activities in your Company is on
predictive and preventive actions rather than punitive vigilance. In
accordance with this objective, several contract & procurement,
operation & maintenance related system improvement measures were
undertaken during FY 2011-12. Intensive inspections of various works
were taken up and corrective measures suggested. Further, initiatives
like Tender Monitoring System, e-QPR system, on-line written
examination in e-recruitment module, etc were undertaken in furtherance
of company''s objective to ensure transparency in systems & procedures.
Further, under the aegis of the Central Vigilance Commission, your
Company organized a day long Interactive Seminar for Independent
External Monitors (lEMs). The seminar was organized to provide a
platform for sharing and updating technical knowledge on procurement
matters considering the vital role of LEMs in administration of the
Integrity Pact adopted by your Company.
A Vigilance Awareness Week was organised during the year. On this
occasion, CVC launched an On- line Tender Monitoring System (TMS) and
also released an in-house magazine titled JAGROOK.
During the Vigilance Awareness Week, your Company organized Customer
and Vendor Interactive meet. In order to spread awareness and to
sensitize employees against the harmful effects of corruption, various
competitions were also organized across your Company during the said
- Representation of SCs, STs, OBCs, Minorities and Women Employees
Your Company is complying with Presidential Directives on reservations
for employment of Scheduled Castes (SCs), Scheduled Tribes (STs), Other
Backward Classes (OBCs), physically challenged categories, etc.
Details regarding total number of employees and the representation of
Scheduled Castes, Scheduled Tribes, and Other Backward Classes in your
Company as on 31.03.2012 have been provided in the table below:
GROUP EMPLOYEES SC ST OBC
A 2784 437 164 453
B 530 114 69 68
C 565 93 23 172
D 58 17 5 14
TOTAL 3937 661 261 707
131 new employees joined your Company during the year 2011-12. Total
man power of the Company as on 31.03.2012 stood at 3,937 with 16.8 % of
its employees belonging to SC category, 6.6% to ST category, 17.9% to
OBC category, 7.22% to Minorities and 2.2% to Physically Challenged
categories. Your Company''s workforce comprised 222 women employees as
on 31.03.2012. Efforts are continuing for filling up the back log of
vacancies reserved for SCs,STs and OBCs.
- Official Language
Your Company is continuously making vigorous efforts for the
propagation and successful implementation of the Official Language
Policy of the Union Government. The Official Language Implementation
Committees at Corporate as well as Regional/ Unit level held their
quarterly meetings regularly to monitor and review the progress made in
achieving the targets fixed in the Annual Programme.
In an endeavor to familiarize the new entrants in the company with
Official Language Act and various rules, training to Executive Trainees
is being imparted during their orientation programme. To inculcate the
knowledge of Official Language among the newly promoted employees from
S7 to El and E2 grades, a two days training programme has been designed
and implemented at corporate level besides other regular workshops at
all the work centers.
With a view to create greater awareness and consciousness amongst
employees, Hindi Fortnight was celebrated from 14th to 28th
September,2011 across your Company. During the fortnight, a Business
Quiz competition was conducted at company level through video
conferencing besides other interesting competitions, cultural
activities, seminars on Hindi activities, etc. The employees
participated with great enthusiasm.
Bilingual software is provided to all offices of your Company for using
on their computing device. To impart working knowledge of Hindi as well
as to train employees in bilingual Software, a comprehensive programme
was designed and implemented during the year. Further, the OICs/HR
heads of work centers and other senior officers were imparted training
for preparing e-mail communication in Hindi.
In order to cultivate the habit of reading Hindi, a book titled Ati
Prabhavshali logon kisa at adaten'' was distributed among all employees.
Quarterly Hindi magazines are published from work centres and
distributed amongst employees in order to create interest among
employees and their family members towards reading and creative writing
RESEARCH AND DEVELOPMENT
Your Company has been pursuing a unique collaboration with Municipal
Corporation of Delhi for extraction of Land Fill Gas (LFG) at Ghazipur
landfill site for conversion to CNG after purification. A Project
Management Consultant (PMC) has been retained to take up project
implementation activities. A CNG station running on landfill gas will
be a first-of-its-kind in the world. This innovative project will not
only generate a dean fuel but also simultaneously help in combating
global warming due to the capture of methane gas that would have
otherwise got released into the atmosphere. The success of this pilot
project would open up the possibility of replicating its success
allover the country. This project has been appreciated by the Platts
Global Energy Awards Committee for the commitment towards harnessing
All sources of energy.
Another project that your Company has been pursuing is on conversion of
waste plastics into fuel. The bench-scale tests have given encouraging
results and it is planned to conduct the pilot-scale studies in the
next phase. R&D efforts are also being undertaken to develop new
polymer grades to better suit the customer requirements.
Increasing the acceptability and usage of natural gas as vehicle Fuel
serves the twin task of reducing environmental pollution as well as
expanding your Company''s business. Your Company has started a
collaborative project with CMERI Durgapur and I IT Kharagpur to develop
composite cylinders for storage of CNG. These light-weight cylinders
shall help increase the fuel efficiency of the vehicles and would also
be more acceptable to the consumers. Continuing with its pragmatic
approach, your Company has also started working with I IT Madras to
develop nano- composite materials for storage of Hydrogen gas which is
touted as the fuel of the future.
Further, your Company is actively exploring potential technologies that
can be used to exploit various non-conventional natural gas sources
like Shale Gas, Gas Hydrates, Underground Coal Gasification (UCG) etc.
that have potential to substantially increase the availability of
natural gas in the country.
With a view to give a boost to R&D spending in the country, the
Department of Public Enterprises (DPE) has mandated all profitable PSUs
to spend at least 1% of their Profit After Tax (PAT) on R&D from
2012-13 onwards. Realizing the importance of R&D to improve the
Technological capabilities and the requirement of meeting the DPE''s
mandate, your Company has taken proactive strategic steps in this
Your Company has constituted a Research Advisory Committee (RAC)
comprising of experts from Industry and Research Institutes with domain
knowledge in areas relevant to its business to guide our future R&D
endeavors. Your Company has also decided to take a quantum jump in its
R&D projects and has solicited research proposals from various research
and engineering institutes of national repute which shall be pursued in
the near future.
TOTAL QUALITY MANAGEMENT
Your Company is always vying for continual and sustainable improvement
in the process, systems and functional areas. Customer satisfaction is
on the top agenda of your Company and is being continuously monitored
through regular interactions. TQM department has taken following
strides towards improvement:
- The Customer satisfaction index achieved during 2011-12 by your
Company is 89%;
- Your Company is targeting application for Deming award (An
International recognition for overall improvements in the processes).
Actions have been initiated and roadmap drawn;
- One hundred number of Quality Circle projects have been undertaken in
all process & system areas in your Company, which lead towards
continual improvements as well as tangible gains.
AWARDS & ACCREDITATIONS
Your Company has consistently been ranked Excellent by the Department
of Public Enterprise (DPE), Government of India, ever since the
introduction of the Memorandum of Understanding (MoU) based performance
review system by the DPE. Your Company has been recognized for its
performance in various areas, some of them are mentioned below:
- Corporate Awards
- 11th ICSI National Award for Excellence in Corporate Governance,2011
- Corporate Governance Award 2012 by Indian Chamber of Commerce
- Commendation Certificate from SCOPE for CorporateGovernancein2010-11
- Platts Global Energy Award, 2011 for ''World''s No. 1 Company in
- GAIL''s Jamnagar - Loni and Vizag Secunderabad LPG pipeline Unit won
the first & second National Award for Excellence in Cost Management
2011 respectively under the category of Public Sector Service Unit.
- MoU Excellence Award for Best Performing CPSE in the Petroleum Sector
consecutively for second year for the year 2009-10.
- HSE Awards
- International Safety Award from British Safety Council, United
Kingdom for Gas Processing Unit and Natural Gas Compressor Station,
Vaghodia; Gas Processing Unit, Gandhar; Jamnagar-Loni LPG Pipeline;
Regional Natural Gas Pipeline Network, National Capital Region, Delhi
- Shrestha Suraksha Puraskar for Gas Processing Unit and Suraksha
Puraskar for Natural Gas Compressor Station, Vijaipur from National
Safety Council, Mumbai.
- Certificate of Appreciation from Gujarat Safety Council, Vadodara for
GAIL, Gandhar, Vadodara and Vaghodia.
- Golden Peacock Occupational Health & Safety Award- 2011 for GAIL,
Khera from Institute of Directors, New Delhi.
- Safety Innovation Award from Institution of Engineers, New Delhi for
Gas Processing Unit& Natural Gas Compressor Station at Vijaipur and
Vaghodia; Gas Processing Unit, Lakwa; Natural Gas Compressor Station,
Khera; Regional Natural Gas Pipeline Network, Mumbai; LPG Booster
Station, Abu road and Man sarampura.
- GAIL, Usar bagged the Confederation of Indian Industry (CII) -Shohrab
GodrejGreen Business Centre (GBC) Environmental Best Practices Awards
for 2012 under ''Most Innovative
Project of the Year'' Category.
- Your Company scrip was included by Bombay Stock Exchange in
BSE-Sensex on the basis of average free float market capitalization for
- GTI has received the prestigious Golden Peacock Quality Award For
Training System and ''Green Tech Gold HR award for outstanding
achievement in Training Excellence1 for the year2011.
RIGHT TO INFORMATION
In order to promote transparency and accountability, an appropriate
mechanism has been set up across the Company in line with the Right to
Information Act, 2005. APIOs/ PIOs/CPIO at units/ offices across the
country have been nominated to provide information to citizens under
the provisions of RTI Act. 1st legal Appellate Authority have also been
nominated for considering appeals of Information seeker against the
orders of APIOs/PIOs/CPIOs.
MANAGEMENT DISCUSSION AND ANALYSIS
The detailed Management Discussion and Analysis forms part of this
Your Company believes Corporate Governance is at the root of
shareholder''s value creation. Pursuant to clause 49 of the Listing
Agreement with the Stock Exchanges & DPE guidelines on Corporate
Governance, a report on Corporate
Governance forms part of this Report at Annexure-B.
The statutory auditors of the Company have examined and certified your
Company''s compliance with respect to conditions enumerated in clause
49 of the Listing Agreement and DPE guidelines on Corporate Governance.
The certificate forms part of this Report at Annexure-C.
Secretarial Compliance Report confirming compliance by Practising
Company Secretary to the applicable provisions of Companies Act 1956,
Listing Agreement, Guidelines on Corporate Governance for Central
Public Sector Enterprises, 2010forms part of this Report at Annexure-
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION
Details of conservation of energy, technology absorption in accordance
with Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 are annexed at Annexure- E.
PARTICULARS OF PERSONNEL UNDER SECTION 217 (2A) OF THE COMPANIES ACT,
The particulars of employees u/s 217 (2A) of the Companies Act, 1956,
read with Companies (Particulars of Employees) Rules, 1975 is annexed
to this report at Annexure-F.
Your Company has not accepted any Fixed Deposits and, as such, no
amount of principal or interest was outstanding as of the balance sheet
FOREIGN EXCHANGE EARNINGS AND OUTGO
During the year, foreign exchange earnings were Rs. 8.85 crore.
Expenditure in foreign currency was Rs. 2,451.42 crore.
During the year under review, your Company has incurred an expenditure
of Rs. 5.27 crore on foreign tours and training, Rs. 0.17 crore on
entertainment and Rs. 24.21 crore on advertising & publicity.
Dr Neeraj Mittal was appointed as Part-time (Govt. Nominee) Director
w.e.f. 28.02.2012 and Smt Shyamala Gopinath, Shri R.P. Singh, Dr. A.K.
Khandelwal and Shri Vivek Mehrotra were appointed as Non-official
Part-time (Independent) Directors w.e.f. 29.02.2012.
Prof A.Q. Contractor, Non-official Part-time (Independent) Director and
Shri Apurva Chandra, Part-time (Govt. Nominee) Director ceased to be
Director(s) w.e.f. 03.08.2011 and 08.08.2011 respectively. Further,
Shri Vivek Mehrotra, Non- official Part-time (Independent) Director
ceased to be Director w.e.f. 14.05.2012.
The Board placed on record its deep appreciation for the valuable
services rendered by outgoing Directors during their association with
CODE OF CONDUCT
Pursuant to the requirements of clause 49 of Listing Agreement, the
Board Members and Senior Management Personnel, have affirmed compliance
with the Code of Conduct for the financial year ending 31st March,
DIRECTORS'' RESPONSIBILITY STATEMENT PURSUANT TO SECTION 217 (2AA) OF
THE COMPANIES ACT,1956
Pursuant to the requirement of Section 217(2AA) of the Companies Act,
1956 in relation to Directors'' Responsibility Statement, it is
i) in the preparation of the annual accounts for the financial year
ending 31st March, 2012, the applicable accounting standards have been
followed along with proper explanation relating to material departures;
ii) the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of the profit of
the Company for the year under review;
iii) the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
iv) the Directors have prepared the annual accounts for the financial
year ending 31st March,2012onagoingconcern basis.
- Statutory Auditors
The Statutory Auditor of your Company is appointed By Comptroller &
Auditor General of India (CAG). M/s Rasool Singhal& Co., Chartered
Accountants, Aligarh and M/s M.L. Puri, Chartered Accountants, New
Delhi were appointed as Joint Statutory Auditors of your Company for
The year 2011-12.
The review of Annual Accounts of your Company for the financial year
ending 31st March, 2012 by CAG forms part of this report. Notes on
accounts referred in the Auditors'' Report are self-explanatory and
therefore, do not call for any further comments.
- Cost Auditors
Your Company has appointed M/s Rohit & Associates, Vadodara, M/s R.
Nanabhoy & Co., Mumbai, M/s Chandra Wadhwa & Co., New Delhi, M/s M
Goyal& Co., Jaipur, M/s Dhanajay V. Joshi & Associates, Pune, M/s DGM &
Associates, Guwahati, M/s Mani & Co., Kolkata, and M/s. K.L Jaisingh &
Co., Noida as Cost Auditors for financial year 2011-12 for the purpose
of cost audit of various LPG/CNG unit/Telecom unit on 10thJune,2011.
The due date for filing Cost Audit Reports for the financial year ended
31st March, 2011 was 27th September, 2011 and the same were filed to
Registrar of Companies on 24th September, 2011.
Your Directors express their gratitude for continued co-operation and
support provided by Government of India, in particular the Ministry of
Petroleum and Natural Gas, various State Governments, regulatory and
statutory authorities from time to time.
Your Directors acknowledge the constructive suggestions received from
Statutory Auditors and Comptroller & Auditor General of India and are
Grateful for their consistent support and help.
Your Directors also wish to thank all the stakeholders of your Company
for reposing their faith, trust and confidence in the Company.
On behalf of your Directors, I would like to place on record our deep
and sincere appreciation for the hard work, dedication and unstinted
efforts of your Company''s employees to ensure that your Company
achieves greater milestones and scales the newer pinnacle of success.
For and on behalf of the Board
B C Tripathi
Chairman & Managing Director
Place: New Delhi
Date: July 19,2012