The behalf of the Board of Directors of your Company, I am delighted to
present the 29th Annual Report of your Maharatna Company, along with
Audited Financial Statements for the financial year 2012-13.
YEAR IN RETROSPECT
The year gone by shall always be remembered as a golden year of your
Company. This year, your Company received Maharatna Status - another
recognition by the Government of India of your Company''s potential and
efforts to be a global energy major. It also acknowledges the
significant role that your Company is playing in the nation''s social
and economic development. Your Company is the youngest public sector
undertaking to be recognized with this honor.
Your Company made a landmark achievement by commissioning 5 MMTPA LNG
regasification facility at Dabhol. Further, 1,000 Km long
Dabhol-Bengaluru pipeline project was also commissioned during the
Subsidiary of your Company in the USA has signed a Terminal Service
Agreement (TSA) with Dominion Cove Point LNG LP in USA for a commitment
of 2.3 MMTPA liquefaction capacity in the Cove Point LNG liquefaction
terminal project in the US. The LNG from this terminal will be
available for bringing to India as well as trading it in the
international markets. With this milestone, your Company will have
access to 5.8 MMTPA of LNG linked to Henry Hub prices.
Further, your Company has become the No 1 Indian Company in terms of
long term LNG and natural gas import tie-ups.
Your Company has recorded sustained growth in all key financial
parameters during the year 2012-13 and the important financial
highlights are as under:
(Rs. in Crores)
Particulars 2012-13 2011-12
Turnover (Net of ED) 47,333 40,281
Other income 954 808
Cost of sales (excluding interest and
depreciation and including extraordinary items) 41,054 34,842
Gross margin 7,233 6,247
Interest 195 116
Depreciation 981 791
Profit before tax 6,058 5,340
Provision for tax 2,036 1,686
Interim dividend 507 381
Proposed final dividend 710 723
Corporate dividend tax 203 179
Net transfer to/from bond redemption reserve (0.43) (24)
Transfer to CSR reserve 13.13 -
Transfer to General Reserve 402 365
Net surplus after Appropriations 2,187 2,030
Your Company has a consistent track-record of dividend payment. So far,
your Company has disbursed dividend of over Rs. 10,500 Crores to the
The Board of Directors of your Company had earlier approved payment of
an interim dividend @ 40% on equity share of 10 each (Rs.4 per equity
share) amounting to Rs.507 Crores, which was paid in February, 2013.
Further, the Board has recommended payment of final dividend @ 56% on
equity share of 10 each (Rs. 5.60 per equity share) for 2012-13.
With this, the total dividend payment for the fiscal year 2012-13 will
be 96% on equity share of Rs. 10 each (Rs. 9.60/- per equity share)
amounting to Rs. 1,217 Crores on its paid-up equity capital of Rs.
1,268.48 Crores, which is highest ever dividend paid by the Company.
The total dividend payout including dividend tax accounts for 30.28% of
profit after tax.
CONTRIBUTION TO EXCHEQUER
Your Company has contributed over Rs. 5,780 Crores in 2012-13 to the
exchequer through dividend, duties, taxes and others, as compared to
Rs. 5,560 Crores in 2011-12.
Your Company has been reaffirmed the highest domestic credit rating of
AAA 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. Further, Fitch Ratings has also assigned
a long-term foreign currency issuer default rating of BBB- with a
negative outlook, which is equal to sovereign rating.
To pursue a high growth trajectory, your Company has developed strategy
for the period from 2011- 2020. This strategy is currently under
execution and the Company is closely monitoring progress on various
strategic initiatives as well as keeping track of changes in external
environment that have potential impact on its business. The top
management of your Company has been playing a key role in driving it
towards becoming an integrated hydrocarbon major with significant
upstream, midstream and downstream interests by 2020.
In the upstream segment, your Company aspires to import substantial LNG
through conventional route as well as through terminal capacity booking
and also acquire equity in producing assets/liquefaction facilities to
source equity-linked LNG. Having acquired the Maharatna status, your
Company would be able to pursue M&A opportunities vigorously. Your
Company has made remarkable progress in sourcing LNG by finalizing
several short/ medium term and long-term deals with suppliers, like GDF
(France), GNF (Spain), Sabine Pass Liquefaction LLC (US) and Gazprom
(Russia). Further, a US subsidiary of your Company has booked LNG
capacity in Dominion Cove Point''s LNG liquefaction terminal in US.
Besides, the Company is in discussion with other potential suppliers to
tie-up more volumes. In addition, your Company is pursuing multiple
trading plays in LNG through its wholly owned subsidiary, GAIL Global
Singapore Pte Limited .
To support higher LNG volumes, your Company plans to set up LNG
terminals/floating storage and regasification units and also tie-up
additional regasification capacities in existing and new terminals
being set up by other companies. Your Company has successfully
commissioned LNG terminal at Dabhol, as owner''s engineer and also
tied-up additional regasification capacities at this LNG terminal with
RGPPL. Further, your Company also tied-up additional regasification
capacities at Dahej LNG terminal with Petronet LNG Limited (PLL).
Considering the growing natural gas demand and India''s energy security,
your Company is actively participating in the transnational pipeline
project, Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline
project. GSPA has been signed to import 38 MMSCMD gas into the country
through this pipeline.
In the midstream segment, your Company aspires to retain in leadership
position through continuous pan-India expansion of pipeline network.
Your Company recently commissioned the Dhabol-Bengaluru pipeline to
bring gas to Bengaluru, the IT hub of India, and other potential demand
centres along this pipeline. With this, your Company now has a total
network of over 10,700 km pipeline in the country. Various other
pipeline projects at different phases of execution will take the
network size to 15,000 km by 2015.
On the retail side, your Company is targeting additional 40-50
cities/Geographical Areas (GAs) through its subsidiary and JVs for City
Gas Distribution (CGD) in the coming few years. Your Company''s wholly
owned subsidiary, GAIL Gas Limited, is progressing on track with
respect to the city gas projects in the cities of Kota, Dewas, Meerut
In the downstream segment, your Company aspires to be among the top
petrochemical players in the country by expanding existing capacities,
setting up new plants, acquiring equity stakes in upcoming projects,
along with product off-take rights for marketing. Your Company is
currently doubling existing capacity at Pata and the project is
expected to be completed on schedule. A greenfield petrochemical plant
is also being set up in Assam through your Company''s subsidiary,
Brahmaputra Cracker & Polymer Limited (BCPL). Another plant at Dahej is
being set up through a JV, ONGC Petro-additions Limited (OPaL). By
2015, your Company is expected to market 1.7 MMTPA of polymers. For
handling such a large product portfolio, your Company is strengthening
its petrochemical trading capability as well as scaling up its
As a responsible corporate citizen, your Company aims to reduce carbon
footprint in a phased manner and contribute towards low carbon economy.
For this, your Company has set targets for renewable energy projects
and significant progress has been made so far. On the wind energy
front, your Company plans to set up 500 MW wind power capacity in the
next 3-4 years and against this, about 118 MW capacity has already been
Further, your Company has also established a 5 MW solar project in
Rajasthan and plans to set up additional capacities in the coming
In order to achieve all the strategic goals efficiently and in a time
bound manner, your Company is giving significant thrust on
strengthening and developing its human resource. Your Company''s
training and development policies are being suitably aligned with
strategic objectives to enable the organization to implement strategic
plans by 2020.
BUSINESS SEGMENT PERFORMANCE
During the year under review, the segment wise business performance of
your Company is as under:
- Natural Gas Marketing
Natural gas continues to constitute your Company''s core business.
During 2012-13, gas sales clocked 81.44 MMSCMD, compared to 84.17
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 60% market share in
India''s gas marketing.
- Natural Gas Transmission
Your Company owns and operates a network of about 10,700 kms of natural
gas high pressure trunk pipeline with a pan-India capacity of around
210 MMSCMD of natural gas. Average gas transmission during the year was
104.9 MMSCMD, compared to 117.62 MMSCMD in the previous financial year.
- LPG Transmission
Your Company is the only one 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 of 2,038 kms. Out of this, 1,415 km of pipeline network
transports LPG from western to northern parts of India (Jamnagar - Loni
pipeline) and the balance 623 kms of pipeline network transports LPG in
the country''s southern part (Vizag-Secunderabad pipeline). The LPG
transmission system has a capacity to transport up to 3.8 MMTPA of LPG.
In 2012-13, the LPG transmission throughput achieved was about 3.136
During 2012-13, your Company has produced 437 Thousand MT of polymers
and sold 427 Thousand MT of polymers.
- LPG and Other Liquid Hydrocarbon Production
Your Company has seven LPG plants in the country. In 2012-13, total
liquid hydrocarbon production was about 1.376 Million MT, which mainly
included 1.078 Million MT of LPG, 0.130 Million MT of Propane, 0.02
Million MT of Pentane and 0.148 Million MT of Naphtha.
- Exploration and Production (E&P)
The E&P portfolio of your Company is as follows:
India Overseas Total
Onshore blocks 10 - 10
Shallow water blocks 3 2 5
Deep water blocks 15 - 15
Total 28 2 30
Hydrocarbon discoveries are in place in seven E&P blocks (five domestic
blocks and two overseas blocks). Crude oil production is in progress
from one of the onland blocks in Cambay basin and during 2012-13,
revenue of Rs. 78 Crore have been generated.
Development activities are in progress in blocks A-1 and A-3 at Myanmar
offshore since November, 2009. Four development wells have been drilled
in Myanmar''s Mya field. Drilling of additional development well in
Myanmar''s Shwe field is in progress. Further, Engineering, Procurement,
Construction, Installation and Commissioning (EPCIC) work is in
progress for drilling and production platforms. Gas production is
expected to start during 2013-14.
Field Development Plan for one oil discovery in the block CB-ONN-
2003/2 (Ankleshwar onland) has been approved. Declaration of
commerciality has been submitted to the Government for approval in
theTripura onland block (AA-ONN-2002/1).
Your Company is operating three onland blocks (in Rajasthan, Cambay and
Cauvery onland block) and is the joint operator in one Cambay onland
block. During 2012-13, two exploratory wells were drilled in the
Rajasthan onland block (RJ-ONN-2004/1). Seismic data acquisition has
been completed in the Cauvery onland block (CY-ONN-2005/1) and
interpretation of the data is in progress. The Government has granted
the petroleum exploration license for Cambay onland block (CB-ONN-
2010/11). Seismic data acquisition in this block is planned during
In addition to four E&P blocks that were awarded during 2011-12, your
Company was awarded one more E&P block CB-ONN-2010/8 in Cambay onland
basin (where BPRL is the operator) during 2012-13 under NELP-IX bidding
- Global Initiatives
During 2012-13, your Company executed a long-term LNG supply contract
for 2.5 MMTPA from Russia with Gazprom Marketing and Trading Singapore
Limited. Under the terms of the agreement, your Company is expected to
receive 2.5 Million MT of LNG / year over 20 years, starting from
2018-19. Under the contract, LNG will be sustainably priced with an
oil-indexed formula and delivered to India''s Dahej, Dabhol and Kochi
Further, your Company had also contracted 0.72 MMTPA (12 cargoes/year)
LNG supply with Gas Natural Fenosa, Spain, for a three- year term
starting 2013 and 0.36 MMTPA (6 cargoes per year) LNG supply with Gaz
De France, France, for a two-year term starting 2013. These contracts
were executed during this financial year to encounter the immediate
concerns of domestic supply shortage. In addition, during this
financial year, your Company imported spot cargoes equivalent to 0.30
MMTPA from time-to-time.
In April, 2013, a US subsidiary of your Company signed Terminal Service
Agreement (TSA) with Dominion Cove Point LNG LP for booking 2.3 MMTPA
liquefaction capacity over 20 years in the Cove Point LNG liquefaction
terminal project in US. Your Company is exploring various options for
sourcing and transportationofgasfor supplying gas to this LNG terminal.
Further, Your Company has signed a Memorandum of Understanding (MOU)
with EDF Trading North America, LLC (EDFT) for cooperation in the areas
of North American upstream equity gas investments, gas supply to export
facilities and LNG supply optimization.
Your Company is pursuing Turkmenistan-Afghanistan-Pakistan-India (TAPI)
natural gas pipeline project for import of gas to India. Agreements
with respect to Transit fee and Transportation tariff are likely to be
concluded soon. Your Company is playing a lead role in discussions on
- Domestic initiatives
The domestic business initiatives of your Company are as follows:
- Naturalgas pipeline projects
During the financial year, your Company completed commissioning of
various pipeline networks and auxiliary systems, having a length of
about1,300 km, which include the following:
- 1,000 Km Dabhol -Bengaluru Pipeline Project
- 164 Km Ludhiana to Jalandhar and Saharanpur to Haridwar sections of
Bawana Nangal Pipeline Spur Line Project
- Last mile consumer connectivity (74 km) extended to 34 numbers of
consumers for supplying around 7.96 MMSCMD gas
- RLNG terminal at Dabhol commissioned as Owner''s Engineer
Apart from these, 41 Km Kochi-Koottanad-Bengaluru/Mangalore Phase-I
Pipeline Project has been mechanically completed. However the
commissioning of the same line would be done synchronizing with the PLL
Kochi LNG Terminal and also the readiness of end consumers.
- LNG Regasification Terminals and Shipping
Your Company has successfully commissioned LNG terminal at Dhabol as
owners engineers and also tied up additional re gasification capacity
at this terminal with RGPPL. Your Company has underwritten the terminal
capacity and will be the commercial operator of Dabhol terminal for 25
years. Dabhol Terminal will act as a gateway to meet the gas demand of
consumers in Maharashtra, Goa and Karnataka.
Your Company also entered into an understanding with Petronet LNG
Limited for reserving exclusive 2.5 MMTPA in the planned Dahej
expansion LNG terminal in Gujarat to meet ever increasing demand along
its existing pipeline networks.
Your Company is formulating a ''Shipping Strategy'' for shipping LNG from
Sabine Pass and Dominion Cove Point LNG terminals in the US.
- Renewable Energy
Your Company had installed till date wind energy projects of 117.95 MW
capacity. GAIL had started with a modest capacity of 4.5 MW wind energy
in State of Gujarat in year 2009-10 for captive use. After the success
of wind project, additional Wind Energy Generation of 14.7 MW was
installed in the State of Gujarat for captive use in year 2011-12. Your
Company graduated to commercial production after commissioning 98.75 MW
of wind energy projects in the states of Tamil Nadu and Karnataka in
In 2011-12, your Company entered into solar power generation by winning
the bid to set up a 5 MW solar plant under Jawaharlal Nehru National
Solar Mission. The Project was commissioned in February 2013 and is
generating 30,000-35,000 KWh per day.
SUBSIDIARIES AND JOINT VENTURES
Your Company has formed subsidiaries and joint venture companies for
CGD, petrochemicals, LNG, gas trading, power generation and shale gas.
Your Company is one of the pioneers to introduce city gas projects in
India for natural gas supplies to households, commercial and transport
sectors through its subsidiary andjoint venture companies.
The details of subsidiary and joint venture companies are mentioned
- Natural Gas, LNG and Power
- GAIL Global (Singapore) Pte Limited (wholly owned subsidiary)
GAIL Global (Singapore) Pte Limited, primarily started as an overseas
investment arm of your Company and was operationalized for LNG trading
in 2012. It has commenced its business operations and successfully
delivered its first cargo at Dahej in November, 2012.The Company is
also targeting third-party sales, ship chartering and risk management
activities along with supplying LNG cargoes to India.
Total revenue of the Company for 2012-13 was USD 33 Million and Profit
AfterTax was USD 0.92 Million.
- GAILGlobal (USA) Inc (wholly owned subsidiary)
GAIL Global (USA) Inc., a wholly owned subsidiary of your Company, was
formed during 2011-12. The main aim behind forming this subsidiary was
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
Texas. The subsidiary is operational at Houston and going forward,
would explore other business opportunities in North America.
Total revenues of the Company for the year ended 31st December, 2012
were USD 21 Million and Profit AfterTax was USD 3.97 Million.
- GAILGlobal (USA) LNG LLC (wholly owned subsidiary)
GAIL Global (USA) LNG LLC, a wholly owned subsidiary of GAIL Global
(USA) Inc., was formed in the state of Delware, USA on 28th March, 2013
for entering into contractual agreements with Dominion Cove Point LNG,
LP for booking of LNG Tolling capacity of 2.3 MMTPA in its Dominion
Cove Point LNG terminal located at Lusby in the state of Maryland and
for booking capacity in associated Dominion Cove Point Pipeline.
GAIL Global (USA) LNG LLC has adopted calendar year as its fiscal year,
as such the first accounts of the Company will be prepared for the year
ended 31st December, 2013.
- GAILChina Gas Global Energy Holdings Limited
The joint venture company, GAIL China Gas Global Energy Holdings
Limited, 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 it, along with China Gas Holdings Limited as equal
- Petronet LNG Limited (PLL)
PLL was formed to set up LNG import and re- gasification facilities. It
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, to import 7.5 MMTPA of LNG. This Joint
Venture of your Company is planning to expand capacity to 15 MMTPA at
Dahej, for which pre-project activities are in progress. Further, PLL
is also setting up an LNG re-gasification terminal at Kochi, Kerala,
with a capacity of 5 MMTPA. This facility is scheduled to be
commissioned in 2013. PLL has entered into long-term LNG supply
contract with Exxon Mobil''s Gorgon Project to supply 1.44 MMTPA of LNG
for its Kochi terminal.
Your Company has 12.5% equity stake in PLL, along with BPCL, Oil and
Natural Gas Corporation Limited (ONGC) and Indian Oil Corporation
Limited (IOCL) as equal partners.
Total revenue of the Company for 2012-13 was Rs. 31,554 Crore and
Profit AfterTax was Rs. 1,149 Crore.
- Ratnagiri Gas and Power Pvt. Limited (RGPPL)
RGPPL was formed in July, 2005 as joint venture for taking over and
operating erstwhile Dabhol Power Project assets consisting of 1967.08
MW gas based combined cycle Power Block and 5 MMTPA LNG Block. The
assets were transferred to RGPPL in October, 2005.
The Power Block has been revived and under commercial operation since
19th May, 2009. The Power Block operated at a Power Load Factor (PLF)
of 31.21% during 2012-13.
The Gas delivery to your Company''s pipeline network through High
Pressure delivery system was started in January, 2013. Subsequent to
which necessary systems required for commercial operation has been
commissioned with effect from 22nd May 2013. Since the power generation
is envisaged using the domestic gas entirely, integrated LNG terminal
shall be utilized for tolling purposes. RGPPL has already entered into
a long term agreement with your Company for commercial utilization of
LNG terminal and commenced tolling operations.
As on 31st March, 2013, the paid up capital of the Company was Rs. 2916
Crore and out of this, your Company''s share of contribution was Rs. 974
Crore. RGPPL has met its full debt servicing obligations upto 2012-13
and paid maiden dividend @5% in 2011-12.
Your Company has 32.86% equity stake in RGPPL alongwith NTPC holding
32.86%, MSEB Holding Company Limited 17.41% and Indian Financial
The Company''s total revenue for 2012-13 was Rs. 2,290 Crore and
suffered a loss of Rs.375 Crore.
- City Gas Distribution (CGD)
- GAIL Gas Limited (wholly owned subsidiary)
GAIL Gas was incorporated with an implementation of the country''s CGD
projects. GAIL Gas today operates over 300 Km of steel pipeline network
and approximately 500 Km of MDPE Pipeline in the cities of Sonipat,
Meerut, Dewas, Kota, Agra & Ferozabad.
GAIL Gas has put up a total CNG Compression Capacity of around 2.50 Lac
Kg/day through 10 Mother/Online CNG Stations & 7 Daughter Booster
Stations at Sonipat, Meerut, Dewas, Kota, Vijaipur, Panvel, Firozabad
Your Company''s subsidiary has taken up investment for setting up the
infrastructure along the national highways for building green
corridors. To encourage the conversion of vehicles on CNG and make CNG
refuelling available at highways, GAIL Gas has commissioned two CNG
stations at Panvel & Vijaipur; two more stations at Dibiyapur & Kovvur
are scheduled to be commissioned in 2013-14.
GAIL Gas is supplying natural gas to 422 industrial units and 11
commercial customers. GAI L Ga s ha s a lso commenced gas supplies to
around 4,400 domestic customers progressively in the cities of Sonipat,
Meerut, Dewas and Kota.
GAIL Gas is implementing the CGD Project in Taj Trapezium Zone (TTZ)
including Ferozabad, Fatehpur-Sikri, Bharatpur, Govardhan & Vrindavan,
with a total project cost of Rs. 146 Crores.
GAIL Gas has implemented uniform price mechanism in Taj Trapezium Zone
(TTZ) area w.e.f. 16.7.2012. The marketing activities of GAIL Gas are
progressing well and GAIL Gas has tied-up over 580 industrial and 45
commercial consumers. GAIL Gas has also signed over 200 GSCs with the
customers at Mandi Gobindgarh and Khanna.
GAIL Gas Joint venture foray at the state level has already commenced
with the incorporation of the JV with Kerala State Industrial
Development Corporation (KSIDC) in Kerala as Kerala GAIL Gas Ltd. a n
d with And hra Pra d esh G a s Infrastructure Corporation Ltd. (APGIC)
in Andhra Pradesh as Andhra Pradesh Gas Distribution Corporation Ltd.
(APGDC) for pursuing Gas Distribution opportunities in respective
States .Furthermore GAIL Gas has joined hands with Vadodara Mahanagar
Sewa Sadan (VMSS) for expansion of ongoing City Gas Distribution in the
city of Vadodara. Similarly GAIL Gas is in advanced stage for formal
tie-ups with Rajasthan State Petroleum Corporation Ltd. (RSPCL) and
Karnataka State Industrial & Infrastructure Development Corporation
Ltd. (KSIIDC) in the states of Rajasthan & Karnataka for distribution
of natural gas to small/ medium industrial units in various clusters
along the pipeline corridor and dispensing of CNG to vehicles.
- Aavantika Gas Limited (AGL)
MAGL was incorporated to implement CGD projects in Madhya Pradesh. As
on 31st March, 2013 was operating 14 CNG stations including 7 Daughter
stations, 5 Online stations and 2 Mother stations.
Further, during 2012-13, AGL supplied PNG to over 1380 domestic, 24
industrial and 6 commercial consumers in their authorized geographical
region. AGL is also catering to fuel requirement of over 11,000 CNG
vehicles operating in the region. Your Company has 22.5% stake in AGL,
along with HPCL as equal partner.
Total revenue of the Company for 2012-13 was Rs. 119 Crore and Profit
After Tax was Rs. 0.21 Crore.
- Bhagyanagar Gas Limited (BGL)
BGL was incorporated to implement CGD projects in Andhra Pradesh. As on
31st March, 2013, BGL was operating 29 CNG stations including 24
Daughter stations, 2 Online stations and 3 Mother stations. Further,
project work in respect of three CGD projects, namely Hyderabad,
Vijayawada and Kakinada, are in progress.
During 2012-13, BGL supplied PNG to over 1700 domestic, 15 commercial
and 1 industrial consumer in its authorized geographical region. BGL is
also catering to fuel requirement of around 20,000 CNG vehicles
operating in the region. Your Company has 22.5% stake in the Company,
along with HPCL as equal partner.
Total revenue of the Company for 2012-13 was Rs. 84 Crore and Profit
After Tax was Rs. 3 Crore.
- Central U.P. Gas Limited (CUGL)
CUGL was incorporated to implement CGD projects in Uttar Pradesh. As on
31st March, 2013, CUGL was CUGL operating 12 CNG stations including 2
mother stations and 10 online stations.
During 2012-13, CUGL supplied PNG to around 3000 domestic, 30
industrial and 40 commercial customers in its authorized geographical
regions. BGL is also catering to fuel requirement of around 35,000 CNG
vehicles operating in the region. Your Company has 25% stake in the
joint venture, along with BPCL as equal partner.
Total revenues of the Company for 2012-13 was Rs. 148.02 Crore and
Profit After Tax was Rs. 20.98 Crore.
- GreenGas Limited (GGL)
GGL was incorporated to implement CGD projects in U.P As on 31st March,
2013, GGL was operating 11 CNG stations including 6 Daughter stations,
2 Online stations and 3 Mother stations. The Ministry of Petroleum and
Natural Gas (MoPNG) has authorized GGL for CGD in Lucknow and Agra.
During 2012-13, GGL supplied PNG to around 1600 domestic, 3 industrial
and 2 commercial customers in its authorized geographical regions. GGL
is also catering to fuel requirement of around 25,000 CNG vehicles
operating in the region. Your Company has 22.5% stake in the joint
venture, along with IOCL as equal partner.
Total revenue of the company for 2012-13 was Rs. 126 Crore and Profit
After Tax was Rs. 21 Crore.
- Indraprastha Gas Limited (IGL)
IGL was incorporated to implement CGD projects in Delhi''s NCT and
cities in adjoining National Capital Region (NCR). As on 31st March,
2013, IGL was operating 324 CNG stations including 149 mother stations,
124 online stations and 51 daughter stations.
During 2012-13, IGL supplied PNG to around 3.8 Lac domestic, 400
industrial and 950 commercial customers in its authorized geographical
regions. IGL is also catering to fuel requirement of around 6.5 Lac CNG
vehicles operating in the region, which includes the entire public
transport of the national capital and also the world''s largest bus
fleet on CNG. Your Company has 22.5% stake in the joint venture, along
with BPCL as an equal partner.
Total Revenue and Profit After Tax (PAT) of the Company for 2012-13 are
Rs. 3,380 Crore and Rs. 354 Crore respectively.
- Mahanagar Gas Limited (MGL)
MGL was incorporated to implement CGD projects in Mumbai and adjoining
MAHANAGAR areas. As on 31st March, GAS 2013, MGL was operating 17 CNG
stations including 18 mother stations, 129 online stations and 13
During 2012-13, MGL supplied PNG to around 6 Lac domestic, 40
industrial and 1900 commercial customers in its authorized geographical
regions. MGL is also catering to fuel requirement of around 3 Lac CNG
vehicles operating in the region. Accepting the Central Government
authorization, 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 joint venture, along with British Gas as equal partner.
Total revenues of the Company for 2012-13 was Rs. 1514 Crores and
Profit After Tax was Rs. 299 Crore.
- Maharashtra Natural Gas Limited (MNGL)
MNGL was formed for implementation of CGD projects in and around Pune.
mngl MNGL has received authorization from MoPNG for CGD in Pune,
including Pimpri, Chinchwad, Talegaon,Hinjewadi and Chakan areas. As on
31st March, 2013, MNGL was operating 17 CNG stations including 3 mother
stations, 3 online stations and 11 daughter stations.
During 2012-13, MNGL supplied PNG to around 6000 domestic, 50
industrial and 20 commercial customers in its authorized geographical
regions. MNGL is also catering to fuel requirement of around 45,000 CNG
vehicles operating in the region. Your Company has 22.5% stake in the
joint venture, along with BPCL as equal partner.
Total revenue of the Company for 2012-13 was Rs. 182 Crore and Profit
After Tax was Rs. 35 Crore.
- Tripura Natural Gas Company Limited (TNGCL)
OTNGCL was incorporated to implement CGD projects in Agartala. As on
31st March, 2013, TNGCL was -jsssKKiat. operating 3 CNG stations
including 2 mother stations and 1 daughter station.
During 2012-13, MNGL supplied PNG to around 11,000 domestic, 40
industrial and 200 commercial customers in its authorized geographical
regions. MNGL is also catering to fuel requirement of around 4500 CNG
vehicles operating in the region. Your Company has 29% stake in the
Total revenue of the Company for 2012-13 was Rs. 26 Crore and Profit
After Tax was Rs. 5 Crore.
- Brahmaputra Cracker and Polymer Limited (BCPL) (Subsidiary)
BCPL is setting up a 2,80,000 TPA polymer plant and project execution
is in progress. The total revised project cost, as approved by the
Cabinet Committee for Economic Affairs (CCEA) in November 2011, is
8,920 Crores. The Company is now in final phase of project execution
and has achieved an overall physical progress of 91% and financial
progress of 73% till the end of the financial year. The commissioning
of the project is set to take place in December, 2013.
Your Company has 70% equity share in BCPL with Oil India Limited (OIL),
Numaligarh Refinery Limited (NRL) and Government of Assam each having
10% equity share.
- ONGC Petro-additions Limited (OPaL)
OPaL is implementing a Gujarat. Your Company is a co-promoter of the
project, with 15.50% equity stake in OPaL, while Oil and Natural Gas
Corporation Limited (ONGC) and Gujarat State Petroleum Corporation
Limited (GSPC) are the other promoters.
Your Company is an IT-savvy organization and is continuously adopting
the latest and state-of- the-art IT solutions, keeping pace with the
fast changing industry. This helps in continuous efficiency and
productivity improvement of employees and also enables right
information to the right person by the use of latest IT security
Your Company has migrated business-critical applications to a
centralized private cloud platform, along with Disaster Recovery (DR)
IT infrastructure, in line with the industry''s latest technological
advancements. System''s manageability and availability have been
enhanced substantially with this future-ready and DR-enabled cloud
Your Company has completed implementing an electronic Document
Management System (DMS), in line with the industry best practices.
This enabled your Company to digitize important documents and records
across locations and also provided electronic workflow and secure
authorization-based access to information.
Your Company is in the forefront of leveraging IT to bring in systemic
improvements. This effort of your Company has been duly recognized at
various forums. Your Company has been recently awarded with SAP ACE
Award for Best Run Award for innovative use of SAP. During the year,
your Company has also been certified as Customer Centre for Expertise
(CCOE) by SAP.
Your Company has implemented Joint Venture Accounting (JVA) system for
Exploration & Production (E&P) business on SAP platform. This has
facilitated in capturing end-to-end JVA business processes and also
enables partner accounting from a single system. With the
implementation of JVA, your Company has enhanced efficiency,
transparency and regulatory compliance in E&P activities.
Your Company has also initiated implementation of centralized
enterprise-wide Geographic Information Systems (GIS)-based Pipeline
Integrity Management System for its cross-country pipeline network,
using industry standard assessment models to fulfil the
national/international statutory codes. This will ensure seamless and
consistent data flow from engineering to operations and will also
result in continuous updation of O&M data and aging of the pipelines.
HEALTH, SAFETY AND ENVIRONMENT MANAGEMENT
Your Company is a responsible corporate citizen and Health, Safety and
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 your Company''s core
organizational values. Your Company''s HSE policy, inter-alia, aims to
ensure safety of public, employees, plant and equipment. It also
ensures compliance with all statutory rules and regulations, imparting
training to its employees, carrying out safety audits of its facilities
and promoting eco-friendly activities.
HSE sub-committee of Board of Directors, which is the apex body in your
Company for all matters related to HSE, met three times during the year
to review your Company''s performance and emergency preparedness in this
- Corporate HSE Policy
Your Company is committed to promote globally comparable levels of HSE
management system in the areas of its business of exploration and
production of hydrocarbons, transmission and distribution of natural
gas, production of LHC, transmission of LPG, petrochemicals, power
generation etc., with focus on improving environmental harmony through
- Safety Performance
Your Company has always strived to maintain highest standards of
safety. This is reflected in the HSE index, which evaluates the
organization''s safety performance on various elements of HSE covering
all business activities. During the year, your Company achieved the HSE
index of 98.89% as against the Excellent MOU target of 98.5% signed
with the Ministry.
- Safety Training
Your Company, in its constant efforts to keep employees fully aware of
the HSE aspects, provides regular training to employees, contract
workers, tanker drivers and others through internal as well as external
Your Company organized a two-day HSE workshop for all business heads,
fire and safety heads and HR representatives from sites. Theme of this
year''s workshop was taken as Disaster Management, in view of the ever
rising risks to people and installations. The theme also helped to
create awareness amongst the employees regarding methods and measures
to tackle any disaster. Leading experts in the country from National
Disaster Management Authority (NDMA) and Oil Industry Safety
Directorate (OISD) closely interacted with employees during the
Your Company laid specific emphasis on construction safety related
trainings during the current year, as mega expansion projects are
underway at various locations.
- Safety Audits
To ensure compliance to statutory rules and regulations, implementation
of safe work practices and continual improvement in the Safety
Management System, your Company installations are being regularly
audited through External Safety Auditors and experienced in-house
auditors. During 2012- 13, twenty three External Safety Audits and
seven safety audits by experienced in-house auditors were undertaken.
Your Company also complied with the recent Emergency Response and
Disaster Management Plan (ERDMP) guidelines of PNGRB and submitted
ERDMP documents to PNGRB in September, 2012.
- Occupational Health
Your Company has a Corporate Occupational Health Committee supported by
six local level occupational health committees, which meet every
quarter for continuous monitoring and improvement of occupational
health of employees. During 2012-13, all employees at the work centres
were medically examined.
SUSTAINABLE DEVELOPMENT INITIATIVES
Your Company released its second sustainability report - Shaping the
Future - for 2011-12. This stakeholder-centric report is a
communication of your Company''s efforts to make a positive impact upon
economic growth, ecological balance and social progress and help shape
the future of millions of people towards achieving shared objectives.
It is in line with the latest global standards of GRI, which is the de-
facto international benchmark and externally assured with application
level A .
To create a mechanism towards governing sustainability, your Company
has defined a structure that spans across various critical functions to
effectively manage organizational complexities. A Sustainable
Development Committee (SDC) chaired by an Independent Director has been
broad-based with inclusion of all functional Directors except Chairman
& Managing Director as its members. Further, your Company has
constituted a Sustainable Development Steering Committee (SDSC), headed
by the Director (Business Development) to provide impetus and direction
to achieve sustainability goals, meet targets and monitor on-ground
implementation of SD projects. In addition, your Company has also
formed multi-disciplinary sustainability committees at all sites.
In 2012, your Company drafted Sustainability Development Aspirations
2020 through intensive consultations with internal and external
stakeholders concerned with on- ground implementation of projects to
identify priority areas of sustainability development. Through
Sustainability Development Aspirations 2020, your Company has set clear
targets with respect to management of Green House Gas (GHG) emissions,
water consumption, energy efficiency and training / awareness on
sustainability. Apart from identifying priority areas, your Company has
identified specific SD projects and the crucial ones among them have
been included as a part of MoU with the MoPNG, which further signifies
your Company''s commitment towards a sustainable future.
Your Company organized its first UN-ESCAP Training in partnership with
Global Compact Network India, after becoming a signatory to the United
Nations Global Compact (UNGC) last year.
Further, SEBI vide circular dated 13.08.2012 mandated the inclusion of
Business Responsibility Reports (BRR) as part of the Annual Reports for
top 100 listed companies based on Market Capitalization of the BSE and
the NSE. The BRR provides a disclosure framework based on NVGs which
maps the Company''s performance on the 9 Principles and Core Elements.
In compliance to the said circular, the BRR is contained in a separate
section in the Annual Report.
TOWARDS RESPONSIBLE BUSINESS CONDUCT
Your Company believes that CSR plays a major role in developing a
country. Therefore, it has made Corporate Social Responsibility (CSR)
as an integral part of its ethos and culture. Your Company has a
dedicated team operating within the framework of a well-structured CSR
policy, which mandates 2% contribution of the Company''s Profit after
Tax to CSR activities.
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 areas adjoining major work
centres/installations of your Company. These programmes are taken up
under the seven thrust areas identified by your Company - education
/literacy enhancement, skill development/ 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.
HUMAN RESOURCE MANAGEMENT
Your Company has been laying strong emphasis on attracting and
acquiring best talent and also on efficient deployment of manpower on
right jobs as per business requirements of the Company. Highly engaged
and dynamic workforce has led to continuous rise in value added per
employee in last 5 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.
Your Company has been witnessing rapid growth vertically &
horizontally. Your company is expanding its operations in domestic
market as well as its presence abroad. Your Company is also
implementing various new projects to strengthen its presence across the
entire gas value chain. With new technological developments and
phenomenal expansion taking place in the hydrocarbon sector, need of
the industry is changing from merely acquiring the latest state of the
art technologies and equipment to engaging qualified personnel suitably
equipped with knowledge, skills, attitude and a practical exposure to
the highly specialized jobs. Further, in line with Strategy 2020,
capability building will be required in the existing thrust areas & new
strategic business areas. Therefore, it is the need of the hour to
invest in the training & development of human resource in more
systematic & structured manner. ISO 9001:2008 certified GAIL Training
Institutes (GTIs) at Noida & Jaipur have been consistently working
towards development of Human Capital of the Organization.
GTI, Noida & Jaipur have maintained the track record of excellent MOU
performance in all the parameters in the MoU signed with Mo PNG . The
Key achievements in training are as under:
- Percentage actualization of training plan has been more than 100% for
the financial year ending 31st March, 2013. Total 208 training
programs were organized during the period under review. Total 17,701
mandays of training has been organized by GTI, Noida & Jaipur in the
above period. On an average 4.46 days of training has been organized
- As per plan, Senior Leadership & Business Knowledge programs have
been organized for developing critical mass of leaders through a system
of career planning & development.
- Multi-skilling / Skill Upgradation programs have been organized of
- Mentorship program has been e s t ab li she d fo r the n ew j o ini n
g Executives & all such executive trainees have been assigned the
- Yoga classes are being organized at GTI & at various sites to reduce
stress. Total 13 programs/sessions were organized during 2012-13.
- Training sessions on Health Safety & Environment are being organized
at sites. Total 59 sessions were organized as against the target of 40
- 4 training programs on Awareness of succession planning have been
- Total 2000 man hours of training have been imparted on Sustainable
development to create awareness on sustainable development.
- With the objective of Knowledge Management within the organization,
Technical Knowledge Sharing Seminar and sessions are organized every
- Various companywide business quizzes were organized to keep the
employees updated with the latest developments in the business areas of
GAIL Training Institute (GTI) has been awarded as Emerging HRD thinkers
Award by Indian Society for Training & Development (ISTD).
In its pursuit of offering training programs to external organizations
and to convert itself into a revenue generating centre, GTI has
successfully organized training programs for participants from other
organizations like RIL, BPCL, RGPPL, IOCL, BCPL, IGL, MNGL, Adani Gas
Limited, Siti energy, Sabarmati Gas Limited etc. Further, in
collaboration with American Society of Mechanical Engineers (ASME),
U.S.A., GTI is successfully running certificate courses in ASME B31.8,
B 31.8S and B 31Q for various external organizations.
- Leadership Development Programme
Your Company realizes that it is critical to continually to develop and
enhance the capability and competence of its senior level executives in
order to prepare them for leadership positions. As an effort towards
the same, Senior Management Development Centre (SMDC) exercise has been
undertaken as part of the Leadership Development Program. SMDC has been
conducted for senior executives in Chief Manager and above grades and
as of now 525 senior executives have been covered under this exercise.
In order to fill in the developmental gaps of such executives
identified through SMDC exercise, a comprehensive Individual
Development Plan (IDP) has been drawn up for all the participants of
SMDC exercise. The IDP consists of customized training programmes at
premier business schools, e-learning courses and distribution of books.
The Vigilance Department of your Company is now certified under
ISO-9001:2008 in recognition of its contribution and continuous focus
on improving the Company''s systems and procedures. Your Company has
introduced a range of measures to bring clarity and transparency in
procurement and work contracts which includes webhosting of tenders on
GAIL as well as across Government websites, e-tendering and reverse
auction for specified threshold values.
In compliance of the guidelines issued by the Central Vigilance
Commission, the Vigilance Awareness Week 2012 was observed by your
Company at the Corporate Headquarters and at all other regional
installations. The Vigilance Commissioner graced the occasion as the
Chief Guest on the inaugural day and administered the Vigilance Pledge
to employees of major GAIL establishments connected through video
conferencing. On this occasion, a magazine Jagrook, containing CVC
circulars, articles on anti-corruption and case studies was also
released by the Corporate Vigilance Department. During the Vigilance
Awareness Week, Customer Interactive Meet and Vendor Interaction Meet
were organized at Indore and GTI, Noida, respectively. Customers from
various segments, such as natural gas, liquid hydrocarbon and
petrochemicals, as well as vendors providing project- related
services/supplies to your Company participated in these meets.
- Representation of Priority Section
Your Company has been complying with the Presidential Directives and
other instructions/guidelines issued from time to time pertaining to
Policies and Procedures of Government of India in regard to
reservation, relaxations, concessions etc. for Scheduled Castes (SCs),
Scheduled Tribes (STs), Other Backward Classes (OBCs) and Persons with
Disabilities (PWDs) in Direct Recruitment.
Details with regard to Group-wise total number of employees and the
representation of Scheduled Castes, Scheduled Tribes, and Other
Backward Classes amongst them in your Company as on 31stMarch, 2013
have been given in table below:
Group ROLL SC ST OBC
A 2,853 437 171 485
B 568 125 74 86
C 477 82 15 144
D 56 17 5 14
TOTAL 3,954 661 265 729
A total of 99 new employees joined your Company during the 2012-13.
Total Manpower of the Company as on 31st March, 2013 stood at 3961
(including Whole-time Directors & CVO) with 16.68% of its employees
belonging to SC category, 6.7% to ST category, 18.40% to OBC category,
7.24% to Minorities and 2.09% to PWDs category. Your Company''s
workforce comprised of 234 women employees as on 31st March, 2013 .
- Official Language
Your Company is continuously making vigorous efforts for the
propagation and successful implementation of the Official Language
Policy of the Union.The Official Language Implementation Committees at
corporate as well as work centre level, held their quarterly meetings
regularly to monitor and review the progress made in achieving the
targets fixed in the Annual Programme.
In an endeavour to familiarize the Company''s new entrants with Official
Language Act and various Official Language rules, training to ETs and
GETs is being imparted at induction level. To inculcate the knowledge
of Official Language among the newly promoted employees from S7 grade
and new joinees at E0, E1 and E2 grades, a special two-days training
programme have been designed and implemented at corporate level, apart
from other regular workshops at all the work centres.
Your Company observed 2012-13 as Sahitya Varsh. Competitions viz. short
story, poem and article in Hindi were conducted during this period.
With a view to create greater awareness and consciousness among
employees, Hindi Fortnight was celebrated from 14th to 28th September,
2012, across the Company. During the fortnight innovative and
interesting competitions, cultural activities, Kavi Sammelan, Mushaira,
seminars on Hindi activities etc. were conducted. Employees
participated with great enthusiasm. To involve families of GAIL
employees, various competitions and other cultural activities were also
conducted for them. First working day of every month is being observed
as Hindi Diwas across your Company.
In order to cultivate the habit of reading Hindi books among employees,
a book in Hindi was distributed to all employees.
An innovative inter-PSU competition was also conducted by your Company
for all Delhi-based member PSUs of Town Official Language
Implementation Committee (TOLIC).
Your Company was awarded for best implementation of OL policy among
TOLIC member PSUs during 2012-13 by Secretary, Official Language,
Ministry of Home Affairs, Government of India.
Bilingual software with Unicode fonts were made pan-organizationally
available. To impart working knowledge of Hindi as well as computer
training to employees in bilingual software, a comprehensive and
time-bound programme was prepared and implemented during the year.
Training in translation is being provided to all Nodal Officers on a
quarterly basis through Central Translation Bureau, Ministry of
Home Affairs, Government of India.
To provide a larger platform to discuss the problems and difficulties
to implement Official Language, annual conference was organized on 22nd
March, 2013, wherein senior officials from corporate office and work
centres participated and shared their valuable thoughts.
- Women Empowerment
To encourage and recognize the role of women employees in your
Company''s success story, GAIL Women Employees Award Scheme has been
instituted in your Company since 2009. Since then, awards to Women
employees based on their performance in their functional area are
conferred every year on International Women''s Day.
INNOVATION, RESEARCH AND DEVELOPMENT
Your Company recognizes that individual innovation, creativity and
initiative are crucial determining factors and are required to be
channelized to achieve organizational excellence. Your Company has an
Innovation Council that solicits screens and implements the suggestions
from employees. An appropriate reward is given to all ingenious
suggestions and the best suggestion is awarded the CMD trophy.
At times, the ideas need to be developed into useful process/ product
through R&D efforts. Your Company has an R&D portal on its intranet
where detailed information on its R&D projects is disseminated. The
employees can provide suggestions and feedback on the R&D projects to
carry out any improvement or mid- course correction. Your Company is
also soliciting innovative ideas from its stakeholders at large through
its R&D portal. Recognizing the need importance to channelize the R&D
efforts, your Company has developed and put in place the R&D Policy and
Manual. It is expected that this policy document would pave the way
for integration of the R&D efforts.
Your Company recognizes the importance of R&D to remain at the
forefront of technology, your Company has set a goal to spend at least
1% of previous year''s PAT on R&D every year. It has identified the
thrust areas of R&D in line with its business areas and follows a
focused R&D strategy to take up projects in such areas. Many basic /
fundamental / applied research projects have been taken up through
various reputed engineering institutes / laboratories this year in the
major thrust areas (viz. Natural Gas transportation & Storage, Fuel
Cell & Nano- composites, CO2 and unconventional energy utilization and
so on). It is expected that the successful outcome of these projects
would provide goodvalue to your Companyin duecourse.
Your Company is setting up a unique, first-of-its kind pilot project
for extraction of LandFill Gas (LFG) and its conversion to CNG after
purification. The project is being implemented at the Ghazipur landfill
site in Delhi. The Phase-1 of the project (landfill closure, capture &
flaring of landfill gas) is already completed in the designated area.
This innovative project will demonstrate the possibility of LFG
extraction from an un-scientifically managed landfill site and help
generate a clean fuel. It will also help to combat global warming by
capturing methane gas that was getting released into the atmosphere.
The success of this pilot project would open up the possibility of
replicating its success country-wide.
Your Company has also taken up various technology development projects
towards improvement in energy efficiency, process optimization and
others at various sites. Further, your Company is actively exploring
technologies that can be used to exploit various non- conventional
energy sources, like shale gas, gas hydrates, Underground Coal
Gasification (UCG) and others to develop alternate sources for
augmenting the country''s energy supplies.
TOTAL QUALITY MANAGEMENT
Your Company continues to focus on continual and sustainable
improvement in the process, systems and functional areas. Customer
satisfaction is the top agenda of your Company and is being
continuously monitored through regular interactions. Major achievements
of your Company in TQM are as under:-
- Customer satisfaction index achieved during 2012-13 by your Company
- 112 quality circle projects have been undertaken in process and
system areas in your Company, which lead towards continual improvements
as well as tangible gains.
ACCOLADES AND RECOGNITIONS
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 conferred with Maharatna Status
by DPE- youngest Maharatna PSU among total 7 Maharatnas. Your Company
has be en recognised for its performance in various areas. Some of
them are mentioned below:
- Corporate Awards
- SCOPE Excellence Award(Institutional Category) for 2010-11
- Ranked 1st among Gas utilities in Asia in the Platts Global Ranking
of Energy Companies in 2012
- Petrofed Award 2012 (for performance during 2011-12) for:
- Oil and Gas Pipeline Transportation Company of the Year
- Project Management (Rs. 500 to Rs.2000 Crore)- Company of the Year
- Environment Sustainability- Company of the Year
- HSE Awards
- International Safety Award for outstanding achievement in safety from
British Safety Council, the United kingdom, for Gas Processing Unit and
natural gas compressor station, Vaghodia; Gas Processing Unit, Gandhar;
regional natural gas pipeline network, National Capital Region, Delhi.
- Sarvashrestha Suraksha Puraskar for Gas Processing Unit and for
natural gas compressor station, Vijaipur from National Safety Council,
MP chapter and National Safety Council, Mumbai, respectively, for 2010.
- GAIL Vaghodia bagged Gujarat State Safety Award from Gujarat Safety
- Golden Peacock Occupational Health & Safety Award - 2012 for GAIL,
Khera, from Institute of Directors, New Delhi
- Golden Peacock Environment Management Award-2012 from Institute of
Directors, New Delhi for GAIL,Vaghodia
- Safety Innovation Award from Institution of Engineers, New Delhi for
Khera Compressor station and Regional Natural Gas Pipeline Network,
National Capital Region, Delhi
RIGHT TO INFORMATION
In order to promote transparency and accountability, an appropriate
mechanism has been set up across your Company in line with the Right to
Information Act, 2005. Your Company has nominated ACPIOs/ CPIO/
Appellate Authorities at its units/offices across the country to
provide information to citizens under the provisions of RTI Act.
SUBSIDIARY COMPANIES AND CONSOLIDATED FINANCIAL STATEMENTS
As per Section 212 of the Companies Act, 1956, documents in respect of
subsidiary companies viz. Directors'' Report, Auditor''s Report, Balance
Sheet and Profit & Loss account are required to be attached to the
Balance sheet of the holding Company. Ministry of Corporate Affairs
vide circular dated 8th February, 2011 has granted exemption under
section 212 of the Companies Act, 1956 to companies from attaching the
aforesaid documents of subsidiary companies with the Annual Report,
subject to compliance of the conditions mentioned in said circular.
Your Company has 5 (five) subsidiary companies as on 31st March, 2013.
Your Board has accorded necessary approval for not attaching Directors''
Report, Balance sheet, Profit & Loss Account, Auditors'' Report and
other statutory data/ documents of subsidiary companies viz. GAIL Gas
Limited, Brahmaputra Cracker & Polymer Limited, GAIL Global (Singapore)
Pte Limited, GAIL Global (USA) Inc. and GAIL Global (USA) LNG LLC
(incorporated on 28th March, 2013) with the Balance Sheet of your
Company. All the conditions mentioned in the circular are being
complied by your Company. Annual Report of said subsidiary companies
are available on your Company''s website i.e. www.gailonline.com and
physical copy will be made available to shareholder on request in
Consolidated Financial Statements as per applicable Accounting
Standards and statement containing brief financial details of your
Company''s subsidiaries for the financial year ended 31st March, 2013 is
forming part of the Annual Report. Annual accounts of subsidiaries and
the related detailed information are open for inspection by any member
at the registered office of the Company and of the respective
subsidiary companies during working days.
MANAGEMENT DISCUSSION AND ANALYSIS
The detailed Management Discussion and Analysis forms a part of this
report at Annexure- A.
Your Company believes that good corporate governance is critical in
establishing a positive organizational culture and it is evident by
responsibility, accountability, consistency, fairness and transparency
towards its stakeholders. Pursuant to clause 49 of the Listing
Agreement with the Stock Exchanges and 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 Practicing
Company Secretary to the applicable provisions of Companies Act 1956,
Listing Agreement, Guidelines on Corporate Governance for Central
Public Sector Enterprises, 2010, forms part of this Report at Annexure-
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION
Details of conservation of energy and technology absorption in
accordance with Companies (Disclosure of Particulars in the Report of
Board of Directors) Rules, 1988 forms a part of this report at
PARTICULARS OF PERSONNEL UNDER SECTION 217 (2A) OF THE COMPANIES ACT,
As per provisions of section 217(2A) of the Companies Act, 1956 read
with the Companies (Particulars of Employees) Rules, 1975, every
company is required to provide particular of employees in the
Directors'' Report exceeding the stipulated remuneration limit(s).
However, as per notification dated 31.03.2011 issued by Ministry of
Corporate Affairs, amending provisions of said Rules, has exempted
Government companies for not including such particular in the
Directors'' Report. As your Company is a Government Company, such
particulars have not been included as part of Directors'' Report. Any
member desirous of obtaining such particulars may write to the Company
and same will be provided.
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. 32.02 Crores.
Expenditure in foreign currency was Rs. 1,708.92 Crores
During the year under review, your Company has incurred an expenditure
of Rs. 8.55 Crores on foreign tours and training, Rs. 0.37 Crores on
entertainment and Rs. 33.76 Crores on advertising and publicity.
Shri P.K. Singh was appointed as Part- time (Government Nominee)
Director, Shri M. Ravindran was appointed as Director (HR) and Shri
Rajive Kumar was appointed as Part-time (Government Nominee) Director
w.e.f. 10th April, 2013, 1st June, 2013 and 26th June, 2013
Shri S.L. Raina, Director (HR), Shri Sudhir Bhargava, Part-time (Govt.
Nominee) Director, Dr. Neeraj Mittal, Part-time (Govt. Nominee)
Director and Shri R.P. Singh, Part-time non- official (Independent)
Director were Director(s) upto 31st May, 2013, 8th May, 2013, 10th
April, 2013, and 9th August, 2012 respectively. Shri Mahesh Shah, Shri
R.M. Sethi and Dr. Vinayshil Gautam were Part-time non-official
(Independent) Directors upto 10.08.2012. The Board placed on record its
deep appreciation for the valuable services rendered by outgoing
Directors during their association with your Company.
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, 2013, the applicable accounting standards have been
followed, along with proper explanation relating to material
ii) The Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent 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, 2013 on a going concern 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 review of your Company''s Annual Accounts for the financial year
ending 31st March, 2013 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 comment.
- 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 Dhananjay 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 2012-13 for the purpose of cost audit
on 30th May, 2012.
The due date for filing cost audit reports for the financial year ended
31st March, 2012 was 31st January, 2013 and the same were filed to
Registrar of Companies on 20th December, 2012.
Your Directors express their gratitude for constant support and
cooperation showed by the Government of India, especially the Ministry
of Petroleum and Natural Gas, various state governments, and regulatory
and statutory authorities.
Your Directors acknowledge wise counsel received from Statutory
Auditors and CAG and are grateful for their consistent support and
Your Directors also wish to thank all the stakeholders for reposing
their faith, trust and confidence in your 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 for driving GAIL towards a glorious
For and on behalf of the Board
Chairman & Managing Director
Place: New Delhi