The On behalf of the Board of Directors of your Company, I am delighted
to present the 30 Annual Report of your Maharatna Company, along with
Audited Financial Statements for the financial year 2013-14.
YEAR UNDER RETROSPET
During the year under review, your Company''s 1000 kms long
Dabhol-Bengaluru Pipeline Project was awarded the coveted Platts Global
Energy Awards 2013 as Premier Project in Large Construction Category.
The year 2013-14 has been a year of venturing into new businesses and
expanding the scale of operations in an effort to be a global energy
player. Your Company entered into the elastomer business by approving
the project for setting up 110 KTA capacity Poly Butadiene Rubber (PBR)
Plant at a cost of Rs. 2,575 crore at Dahej in a joint venture with ONGC.
Further, your Company and Shipping Corporation of India have entered
into a MoU for cooperation in the LNG shipping business.
Your Company has also signed an MoU with Paradip Port Trust Limited for
setting up an LNG terminal at Paradip in Odisha.
On the Exploration and Production (E&P) front, gas production from A-1
and A-3 Blocks in Myanmar has started during the FY 2013-14. The total
revenue from E&P business during FY 2013-14 was Rs. 244 crore.
Your Company has recorded sustained growth in all key financial
parameters during the year 2013-14. The important financial highlights
of the year are as under:
(Rs. in crore)
Particulars 2013-14 2012-13
US $ Million (Rs. in
crore) US $
Million (Rs.in crore)
Turnover (Net of ED) 9,445 57,245 8,608 47,333
Other income 192 1,162 173 954
Cost of sales (excluding
interest and 8,383 50,808 7,466 41,054
depreciation and including
Gross margin 1,254 7,599 1,315 7,233
Interest 60 366 35 195
Depreciation 194 1,176 178 981
Profit before tax 1056 6,402 1,102 6,058
Provision for tax 334 2,027 370 2,036
Profit after tax 722 4,375 731 4,022
Interim dividend 94 571 92 507
Proposed final dividend 123 748 129 710
Corporate dividend tax 37 224 37 203
Net transfer to/from bond
redemption reserve (1) (5.94) 0 (0.43)
Transfer to CSR reserve 3 17.87 2 13.13
Transfer to general reserve 72 438 73 402
Net surplus after Appropriations393 2,382 398 2,187
US $ in INR converted at the exchange rate 60.61 54.99 prevalent as
on 31st March of the respective financial year
DISINVESTMENT BY PRESIDENT OF INDIA CONTRIBUTION TO EXCHEQUER CREDIT
RATING STRATEGIC INITIATIVES
The Government of India (GoI) has disinvested th 15,672,024 shares on
27 March, 2014 through CPSE ETF. After disinvestment, the President of
India is holds 711,733,651 equity shares representing 56.11% of paid-up
share capital of GAIL.
Your Company has a consistent track record of dividend payment. So far,
it has disbursed dividend of over Rs. 11,900 crore to the shareholders.
The Board of Directors of your Company had earlier approved payment of
an interim dividend @ 45% on equity share of Rs. 10 each (Rs.4.5 per equity
share) amounting to Rs. 571 crore, which was paid in February, 2014.
Further, the Board has recommended the payment of final dividend @ 59%
on the paid-up equity share capital of the Company of Rs. 10 each (Rs. 5.9
per equity share) for FY 2013.
With this, the total dividend payment for the fiscal year 2013-14 will
be 104% on equity share of Rs. 10 each (Rs. 10.40/- per equity share)
amounting to Rs. 1,319 crore on its paid-up equity capital of Rs. 1,268.48
crore, which is the highest ever dividend paid by your Company. The
total dividend pay out including dividend tax accounts for 35.28% of
Profit after Tax (PAT).
CONTRIBUTION TO EXCHEQUER
Your Company has contributed over Rs. 6,993 crore in 2013-14 to the
exchequer through dividend, duties, taxes and others, as compared to Rs.
5,780 crore in 2012
Your Company has been reaffirmed the highest domestic credit rating of
AAA from ICRA, CARE and CRISIL. The international rating agency,
Moody''s International, Hong Kong, has also reaffirmed the corporate
issuer rating of Baa2, which is one notch higher than the 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 the sovereign rating.
In order to grow sustainably, your Company has developed a strategy for
the period 2011-2020. This strategy is currently under execution and
your Company is closely monitoring the progress on various strategic
initiatives as well as analysing the dynamic environment to assess its
impact on GAIL''s businesses. The top management of your Company has
been playing a crucial role in achieving the strategic objectives and
to make GAIL 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 acquiring equity in producing assets/liquefaction facilities
to source equity-linked LNG. Your Company has made remarkable progress
in importing 25 LNG cargoes under various shortterm contracts with
suppliers like GDF (France), GNF (Spain) and Excelerate Energy (USA) as
well as on spot basis to meet the growing demand of the Indian market.
Further, the US subsidiary of your Company has booked LNG capacity in
Dominion Cove Point''s LNG liquefaction terminal in the US. In addition,
your Company is pursuing LNG shipping business by charter hiring LNG
ships to transport LNG from the US to India and other global markets.
Your Company is also pursuing LNG trading business through its wholly
owned subsidiary, GAIL Global Singapore Pte Limited.
To facilitate increase in LNG volumes, your Company plans to set up LNG
terminals/floating storage and regasification units and is also booking
additional regasification capacities in existing and new terminals
being set up by other companies. Your Company has also executed
regasification agreement with Petronet LNG Limited for regasifying 2.5
MMTPA LNG in the planned Dahej expansion LNG terminal in Gujarat to
meet the ever increasing demand along its existing pipeline networks.
To bridge the demand-supply gap of natural gas and address the energy
security needs of the country, your Company is actively participating
in the transnational pipeline project, the Turkmenistan-Afghanistan-
Pakistan-India (TAPI) pipeline project. GSPA has already been signed to
import 38 MMSCMD gas into the country through this pipeline.
In the midstream segment, your Company aspires to retain its leadership
position through continuous pan-India expansion of pipeline network.
Your Company now has approximately 11,000 kms network of pipeline in
the country. Various other pipeline projects are at different phases of
execution which will take the network size to around 15,000 kms.
On the retail side, your Company is targeting additional 40-50
cities/Geographical Areas (GAs) through its subsidiary and joint
ventures (JVs) for city gas distribution (CGD) in the coming few years.
In the downstream segment, your Company aspires to be amongst 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 petrochemical capacity at Pata and the
project is under implementation. A green field petrochemical plant is
also being setup in Assam through your Company''s subsidiary,
Brahmaputra Cracker & Polymer Limited (BCPL). Another petrochemical
plant at Dahej is being set up through a JV, ONGC Petro-additions
Limited (OPaL). By 2015, your Company is expected to have 1.7 MMTPA
polymers for marketing.
In order to achieve all the strategic goals, significant thrust is
being given to strengthen and develop the human resource of your
Company. Accordingly, recruitment, training and development policies
are being suitably aligned with strategic objectives to enable your
Company implement and achieve its strategic goals by 2020.
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 2013-14, gas sales clocked 79.18 MMSCMD, compared to 81.44
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 67% market share in
India''s gas marketing.
Your Company owns and operates a network of about 11,000 kms of natural
gas high pressure trunk pipeline with a pan-India capacity of around
206 MMSCMD of natural gas. Average gas transmission during the year was
96.22 MMSCMD, compared to 104.90 MMSCMD in the previous financial year
mainly due to the decrease in gas from RIL''s KG D6 block.
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 of 2038 kms. Out of this, 1415 km of pipeline network
transports LPG from western to northern parts of India (Jamnagar – Loni
LPG Pipeline) and the balance 623 kms of pipeline network transports
LPG in the country''s southern part (Vizag-Secunderabad LPG Pipeline).
The LPG transmission system has a capacity to transport up to 3.8 MMTPA
of LPG. In 2013-14, the LPG transmission through put achieved was about
During 2013-14, your Company has produced 436 Thousand MT (TMT) of
polymers and sold 445 TMT of polymers.
LPG and Other Liquid Hydrocarbon Production
Your Company has seven LPG plants in the country for production of LPG
and other liquid hydrocarbons. In 2013-14, the total liquid hydrocarbon
production was 1307 TMT, which included 1030 TMT of LPG, 135 TMT of
Propane, 22 TMT of Pentane and 120 TMT of Naphta.
Exploration and Production (E&P)
The financial year 2013-14 has seen significant transformation of the
E&P business of GAIL. The production of gas has started from overseas
blocks A-1 and A-3, Myanmar.
Your company has earned a revenue of Rs. 244 crore from E&P activities
through the sale of gas in A-1 and A-3 in Myanmar and crude oil in
Cambay Onland block CB-ONN-2000/1 during the year 2013-14.
At present, GAIL has participating interest in 20 E&P blocks of which
18 blocks are in India and 2 in Myanmar.
GAIL is the Operator in three onland blocks viz. (i) RJ-ONN-2004/1 in
Rajasthan basin awarded during NELP-VI bidding round, ii) CY-ONN-
2005/1 in Cauvery basin awarded during NELP-VII bidding round and (iii)
CB-ONN-2010/11 in Cambay basin awarded during NELP-IX bidding round.
GAIL is the non-operating partner in the remaining 17 blocks. In
Rajasthan onland block, one well has been drilled during FY 2013-14 and
future course of action is being charted. Drilling of wells is planned
during the year 2014-15 in Cauvery onland block. In Cambay onland
block, the acquisition of 131 KM2 3D seismic data has been initiated.
Declaration of Commerciality (DoC) for gas discovery has been submitted
to the Government in Block MN-OSN-2000/2 (Mahanadi offshore Block,
NELP-II) while DoC for gas discovery Kathalchari – 1 in Block
AA-ONN-2002/1 (Tripura Onland Block, NELP-IV) has recently approved by
In April 2013, GAIL Global (USA) LNG LLC, a US subsidiary of GAIL,
signed a Terminal Service Agreement (TSA) with Dominion Cove Point LNG
LP for booking 2.3 MMTPA liquefaction capacity in the Cove Point LNG
liquefaction project located at Lusby in the State of Maryland in the
Under this agreement, your Company through its US subsidiary has to
procure its share of natural gas and deliver it to the Cove Point
pipeline for liquefaction at the terminal. Your Company has already
short-listed potential gas suppliers / transporters for supply of gas
to the Cove Point LNG liquefaction project. Discussions are underway
with the short-listed party(s) for finalising the terms and conditions.
Your Company is pursuing Turkmenistan-Afghanistan-Pakistan-India (TAPI)
natural gas pipeline project for import of gas to India. Asian
Development Bank has been appointed as the Transaction Advisor (TA) for
the TAPI project. Incorporation of a company for implementing the
project is underway. Your Company is playing a lead role in discussions
on the project.
The domestic business initiatives of your Company are as follows:
Poly Butadiene Rubber (PBR) Plant
Your Company would be setting up a PBR plant of 110,000 tonnes per
annum capacity at a cost of Rs. 2,575 crore at Dahej, Gujarat through a
50:50 joint venture with ONGC. The necessary approval for setting up
the project has been obtained. The project is scheduled for
commissioning during 2017 and your Company would be playing a lead role
in executing the project.
Natural Gas Pipeline Projects
During the financial year, your Company commissioned various pipeline
networks and auxiliary systems, which include the following:
Capacity Augmentation of Auraiya-Jagdishpur pipeline from Dibiyapur to
SV-2 and from Sachendi to Kanpur Fertilizers & Cements Ltd.
Karanapur-Moradabad-Kashipur pipeline has been further extended upto
Rudrapur by commissioning of the Kashipur- Rudrapur pipeline.
ˇCommissioning of the Kochi-Koottanad-Bengaluru / Mangalore Phase-I
pipeline done in August 2013 after receipt of LNG from PLL Kochi.
ˇLast Mile consumer connectivity (approximately:- 112 kms) extended to
66 numbers of consumers for supplying of natural gas around 5.55
Your Company has installed wind energy projects of 118 MW capacity.
Your Company had started with a modest capacity of 4.5 MW wind energy
in the state of Gujarat in year 2009-10 for captive use. After the
success of the wind project, additional Wind Energy Generation of 14.7
MW was installed in the state of Gujarat for captive use in the year
2011-12. Your Company graduated to commercial production after
commissioning 100 MW of wind energy projects in the states of Tamil
Nadu and Karnataka in the year 2011-12.
In the year 2011–12, your Company entered into solar power generation
by winning the bid to setup a 5 MW Solar Plant under the Jawaharlal
Nehru National Solar Mission in Rajasthan. The project was commissioned
in February 2013 and is generating 25000 – 28000 kWh per day.
SUBSIDIARIES & JOINTVENTURES
Your Company has formed subsidiaries and joint venture companies for
City Gas Distribution (CGD), petrochemicals, LNG, gas trading, power
generation and shale gas. Your Company is one of the pioneers in
introducing city gas projects in India for natural gas supplies to
households, commercial and transport sectors through its subsidiary and
joint 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 i
nvestment arm of your Company and wa s operationalized for LN trading
in 2012. It comenced its busi nes operations by delivering its first
cargo at Dahej in November, 2012. The Company is also targeting
third-party sal e, shi p chartering and risk mnagement activities al
ong with suplying LNG cargoes to India. In the year 2013-14, GSPL
suplied cargoes to GAI L. The otal r venue of the Company for 2013-14
wa s US $ 1 89. 3 Milio and PAT wa s US$ .16 Milion.
- GAIL Global (USA) Inc (wholly owned subsidiary)
GAIL Global (USA) Inc., a wholly owned subsidiary of your Company, was
formed during 2011-12 with the main aim 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, it would explore other
business opportunities in the US.
The total revenue of the Company for the year ended 31st December, 2013
was US $ 38.03 Million and PAT was US $ 4.52 Million.
- GAIL Global (USA) LNG LLC (wholly owned subsidiary of GGUI)
GAIL Global (USA) LNG LLC, a wholly owned subsidiary of GAIL Global
(USA) Inc., was formed in the state of Delaware, USA on 28th March,
2013 for entering into contractual agreements with Dominion Cove Point
LNG, LP for booking 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 has been prepared for the
year ended 31st December, 2013.
GAIL China 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 stake along with China Gas Holdings Limited as equal partner as
per the agreement.
- Petronet LNG Limited (PLL)
PLL, which was formed for setting up of LNG import and re-gasification
facilities, currently owns and operates an LNG re-gasification terminal
of 10 MMTPA capacity located at Dahej, Gujarat. PLL has a long-term
LNG supply contract with RasGas, Qatar for import of 7.5 MMTPA of LNG.
PLL is undertaking capacity expansion to 15 MMTPA at Dahej for which
pre-project activities are in progress. Further, PLL has also setup up
an LNG re-gasification terminal at Kochi, Kerala with a capacity of 5
MMTPA which was commissioned in August, 2013. PLL has a long term LNG
supply contract with Exxon Mobil''s Gorgon Project for supply of 1.44
MMTPA of LNG for its Kochi terminal.
Your Company has 12.5% equity stake along with BPCL, Oil and Natural
Gas Corporation (ONGC) and Indian Oil Corporation Limited (IOCL) as
The total revenue of the Company for 2013-14 was Rs.37,747.58 crore
and PAT was Rs.711.92 crore.
- Ratnagiri Gas and Power Pvt. Limited (RGPPL)
RGPPL was formed in July, 2005 as a joint venture with NTPC for taking
over and operating the 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 is under commercial operation
since 19th May, 2009. The power block was operated at a Power Load
Factor (PLF) of 8.74% with a generation loss of 12760 Million Units due
to non-availability of domestic gas in FY 2013-14.
The gas delivery to your Company''s pipeline network through high
pressure delivery system was started in January, 2013 and commissioned
with effect from 22nd May, 2013. Since the power generation is
envisaged using the domestic gas entirely, the integrated LNG terminal
shall be utilized for tolling purposes. RGPPL has already entered into
a long term agreement with GAIL for commercial utilization of LNG
terminal and commenced tolling operations.
As on 31st March, 2014, the paid up capital of the Company was 2,964.90
crore and out of this, your Company''s share of contribution was 974.31
Your Company has 32.86% equity stake in RGPPL along with NTPC holding
32.86%, MSEB Holding Company Limited 17.41% and Indian Financial
The Company''s total revenue for 2013-14 was 2,216.34 crore and profit
was ~ 112.05 crore. However, the company is in financial crisis due to
non-liquidation of high receivables from its beneficiaries leading to
inability in meeting its debt servicing obligations for the year
City Gas Distribution (CGD)
GAIL Gas Limited (wholly owned subsidiary)
GAIL Gas was incorporated with the objective of focused implementation
of City Gas Distribution (CGD) projects in the country. During the
year, GAIL Gas laid 550 kms MDPE pipeline in the cities of Sonipat,
Meerut, Dewas, Kota, Agra,
Ferozabad & Bharatpur. New CNG stations were installed and are
operational at Dibiyapur (Uttar Pradesh) & Kota (Rajasthan).
Additional stations are planned at Firozabad, Bharatpur & Sonepat.
During the year, GAIL Gas achieved conversion of 1,177 PNG Domestic
customers progressively in the cities of Sonipat, Meerut, Dewas, Kota
and Ferozabad and the total number of customers drawing gas went up
from 4,427 in March 2013 to 5,604 in March 2014. The sales volume from
industrial & commercial customers grew from 451.61 MMSCM in FY 2012-13
to 519.66 MMSCM in FY 2013-14.
The marketing activities of the Company are progressing well and it has
tied-up over 844 industrial and 45 commercial consumers. To expand the
business canvas, GAIL Gas formed a joint venture company with Vadodara
Mahanagar Sewa Sadan (VMSS) to carry forward the ongoing City Gas
Distribution business and augment the infrastructure for expanding CGD
business in the city of Vadodara, and with Rajasthan State Petroleum
Corporation Ltd. to form a joint venture company for implementation of
CGD projects in the state of Rajasthan.
The total revenue of the Company for FY 2013-14 was Rs. 991.11 crore and
PAT was Rs. 11.44 crore.
Aavantika Gas Limited (AGL)
AGL was incorporated to implement CGD projects in Madhya Pradesh. As on
31st March 2014, AGL operated 14 CNG stations including 7 daughter
stations, 5 online stations and 2 mother stations.
Further, as on 31st March 2014, AGL supplied PNG to around 1900
domestic, 19 commercial and 31 industrial consumers in its authorized
geographical regions. AGL is also catering to the fuel requirement of
over 11,500 CNG vehicles operating in the region. Your Company has
22.5% stake, along with HPCL as an equal partner.
The total revenue of the Company for 2013-14 was Rs. 115.26 crore and PAT
was Rs. 0.50 crore.
Bhagyanagar Gas Limited (BGL)
BGL was incorporated to implement CGD projects in Andhra Pradesh. As on
31st March, 2014, BGL operated 29 CNG stations including 24 daughter
stations, 2 online stations and 3 mother stations.
Further, as on 31st March 2014, BGL supplied PNG to over 2100 domestic,
34 commercial and 2 industrial consumers in its authorized geographical
regions. BGL is also catering to the fuel requirement of around 20,650
CNG vehicles operating in the region. Your Company has 22.5% stake,
along with HPCL as an equal partner.
The total revenue of the Company for 2013-14 was Rs. 116.87 crore and PAT
was Rs. 14.99 crore.
Central U.P. Gas Limited (CUGL)
CUGL was incorporated to implement CGD projects in Uttar Pradesh. As on
31st March, 2014, CUGL operated 14 CNG stations including 2 mother
stations, 11 online stations and 1 daughter booster station.
Further, as on 31st March 2014, CUGL supplied PNG to around 4200
domestic, 36 industrial and 77 commercial customers in its authorized
geographical regions. CUGL is also catering to the fuel requirement of
around 40,900 CNG vehicles operating in the region. Your Company has
25% stake, along with BPCL as an equal partner.
The total revenue of the Company for 2013-14 was Rs. 196.73 crore and PAT
was Rs. 25.03 crore.
Green Gas Limited (GGL)
GGL was incorporated to implement CGD projects in Uttar Pradesh. As on
31st March, 2014, GGL operated 14 CNG stations including 5 daughter
stations, 5 online stations and 4 mother stations.
Further, as on 31st March 2014, GGL supplied PNG to over 3600 domestic,
3 industrial and 7 commercial customers in its authorized geographical
regions. GGL is also catering to the fuel requirement of over 28600 CNG
vehicles operating in the region. Your Company has 22.5% stake, along
with IOCL as an equal partner.
The total revenue of the Company for 2013-14 was Rs. 162.01 crore and PAT
was Rs. 22.62 crore.
Indraprastha Gas Limited (IGL)
IGL was incorporated to implement CGD projects in Delhi''s National
Capital Territory (NCT) and cities in adjoining National Capital Region
(NCR). As on 31st March, 2014, IGL operated 325 CNG stations including
75 mother stations, 212 online stations and 38 daughter stations.
Further, as on 31st March 2014, IGL supplied PNG to around 4.5 lacs
domestic, 585 industrial and 1277 commercial customers in its
authorized geographical regions. IGL is also catering to the fuel
requirement of around 7.2 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, along with BPCL as an equal partner.
The total revenue of the Company for 2013-14 was Rs. 3,922.16 crore and
PAT was Rs. 360.26 crore.
Mahanagar Gas Limited (MGL)
MGL was incorporated to implement CGD projects in Mumbai and adjoining
areas. As on 31st March, 2014, MGL operated 169 CNG stations including
19 mother stations, 130 online stations and 20 daughter stations.
Further, as on 31st March 2014, MGL supplied PNG to over 7 lacs
domestic, 53 industrial and 2289 commercial customers in its authorized
geographical regions. MGL is also catering to the fuel requirement of
around 3.6 Lac CNG vehicles operating in the region. Your Company has
49.75% stake, along with British Gas as an equal partner.
The total revenue of the Company for 2013-14 was Rs. 1,885.15 crore and
PAT was Rs. 297.25 crore.
Maharashtra Natural Gas Limited (MNGL)
MNGL was formed for implementation of CGD projects in and around Pune.
As on 31st March, 2014, MNGL operated 28 CNG stations including 5
mother stations, 8 online stations and 15 daughter stations.
Further, as on 31st March 2014, MNGL supplied PNG to over 12,300
domestic, 83 industrial and 31 commercial customers in its authorized
geographical regions. MNGL is also catering to the fuel requirement of
around 60,200 CNG vehicles operating in the region. Your Company has
22.5% stake, along with BPCL as an equal partner.
The total revenue of the Company for 2013-14 was Rs. 344.08 crore and PAT
was Rs. 56.66 crore.
Tripura Natural Gas Company Limited (TNGCL)
TNGCL was incorporated to implement CGD projects in Agartala. As on
31st March, 2014, TNGCL operated CNG stations including 2 mother
stations and daughter stations.
Further, as on 31st March 2014, TNGCL supplied PNG to around 14,650
domestic, 45 industrial and 254 commercial customers in its authorized
geographical regions. TNGCL is also catering to the fuel requirement of
around 6150 CNG vehicles operating in the region. Your Company has 29%
stake, in the joint venture.
The total revenue of the Company for 2013-14 was Rs. 42.19 crore and PAT
was Rs. 6.57 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 Rs.
8,920 crore. The Company is now in the final phase of project execution
and has achieved an overall physical progress of 93.6% and financial
progress of 81.03 % till the end of the financial year.
Your Company has 70% equity stake, with Oil India Limited (OIL),
Numaligarh Refinery Limited (NRL) and the Government of Assam each
having 10% equity share.
ONGC Petro-additions Limited (OPAL)
OPaL is implementing a green field petrochemical complex of 1.4 MMTPA
Polymer capacity at Dahej, Gujarat. Your Company is a co-promoter of
the project, with 15.50% equity stake while Oil and Natural Gas
Corporation Limited (ONGC) and Gujarat State Petroleum Corporation
(GSPC) are the other promoters.
Apart from above, your Company holds equity interest in China Gas
Holdings Limited, Fayum Gas Company, South-East Asia Gas Pipeline
Company Limited and Gujarat State Energy Generation Ltd. It also has
the right to appoint a Director on the Board of these companies.
During the year 2013-14, your Company disinvested 60 million shares of
China Gas Holdings Limited and presently holds 150 million shares. The
Company has a right to nominate a Director on the Board of the company.
Your Company is an IT-savvy organization and is continually striving to
provide the best of technology applications to its valued users. With
newer interventions in the IT domain, we have not only endeavoured to
attain seamless integration with GAIL''s business transactions,
processes and systems, but also proactively sensitized the users with
emerging paradigms in system usage and technology transformations.
By adopting the latest and state-of-the-art IT solutions, which are
keeping in pace with the fast changing industry and its way of working,
we continually strive for efficiency enhancement of employees and have
enabled access of required information to the right person, by the use
of the latest IT security solutions.
Your Company is in the forefront of leveraging IT to bring in systemic
improvements. In the last few years, your Company has introduced many
new functionalities and features in SAP platform, which has been a part
of the functional upgrade for bringing improvement and transparency in
business operations. Your Company has also adopted latest and state-
of-the-art IT solutions like Document Management System, and Private
Cloud platform with Disaster Recovery (DR) setup of IT infrastructure,
in line with the industry''s latest technological advancements. Going
further, System''s manageability and availability have been enhanced
substantially with this future-ready and DR-enabled cloud
Your Company is in the process of rolling out Business Intelligence -
Analytics and Dashboard for easy and dynamic analysis of business
critical information and its easy visualization.
Your Company is in the process of 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 in line with the
national/international statutory codes. This will ensure seamless and
consistent data flow from engineering to operations and also result in
continuous updation of O&M data and aging of our pipelines.
For strengthening information security and identifying the potential
internal and external threats, your Company has carried out Information
Systems Audit through an expert external audit agency. The IT
operations of your company have been certified with ISO 9001:2008.
Your company is also preparing for ISO 27001 certification for
Information Security Management Framework (ISMS) and Crisis
Management Plan (CMP) in line with CERT-In Guideline.
HEALTH, SAFETY AND ENVIRONMENT MANAGEMENT
Health, Safety and Environment (HSE) management is a key driver of
operational excellence in your Company. GAIL has an elaborate HSE
Management System in place to ensure the health and safety of its
employees and protect environment for a sustainable development. Your
Company believes in prevention of all health, safety and environment
hazards. HSE performance of various installations of your Company is
monitored on a regular basis through monthly HSE reports, audits and
Surprise Safety Checks by senior officials. HSE sub-committee of Board
of Directors, which is the apex body for matters related to HSE, met
three times during the year to review your Company''s performance and
emergency preparedness in this regard.
On 27th June, 2014, an unfortunate mishap occurred on the Tatipaka-
Kondapalli gas pipeline segment of your Company leading to the loss of
civilian lives and causing damage to the property in the vicinity. As a
responsible Company, all efforts were undertaken for rescue. Your
Company has also initiated steps towards relief and rehabilitation of the
affected people. Further, your Company has decided to adopt the
Nagaram Village and will endeavour to transform it into a model village.
Your Company has taken a number of measures to reassess and address
safety related issues. M/s Engineers India Limited has been engaged to
reassess the health, safety and integrity of various natural gas pipeline
systems including KG Basin and the LPG pipeline networks. In addition, a
reputed international consultant is being engaged to review and compare
the Standard Operating Procedures (SOPs) and safety measures across
GAIL''s hydrocarbon assets with that of the international majors and reset
benchmarks. Further, your Company''s Internal Audit group has initiated
fresh technical audits of the various pipeline systems. Further, the
Company''s Crisis Management Plan of 2012 is being overhauled including
the measures taken to ensure swift reporting of incidents across the
Company and external bodies. The framework of the HSE department is
being further strengthened to ensure ZERO Tolerance to deviation from
SOPs, increase safety awareness and enhance emergency response
Your Company has taken a new initiative to implement Behavioural
Based Safety (BBS) programme in its installations in a phased manner
from this year as a part of continuous improvement of safety culture in
the organization. This year, the BBS program was rolled out in the
Company''s process plants at Vijaipur, Vaghodia, Gandhar and Usar. Your
Company identified common life threating causes of accidents and
launched a Life Saver Scheme for employees and workers. Your
Company has prepared a Corporate Film on Health, Safety and
Environment in GAIL to inform and educate our business partners and
other stake holders.
Corporate HSE Policy
Your Company is committed to conduct business with a robust and
integrated HSE Management System with a focus on improving
harmony with the environment through sustainable development. The
safety and health of everyone who works for your Company is of
paramount importance and these attributes are embedded within the
core organizational values of GAIL. Our employees and contract
workers are strongly encouraged to adopt a safe working culture and
behaviour to ensure effective implementation of the HSE policy.
Complying with applicable HSE rules and regulations and going
beyond in setting internal targets is one the important elements of
the HSE Management in your Company.
Safety performance is measured in your Company through HSE
index which is evaluated on the basis of important HSE Management
System elements. Your Company achieved the HSE index of 99.06%
as against the MoU target of 98%.
Your Company imparts regular and structured HSE training to its
employees to upgrade their skills, knowledge and competence to
carry out HSE-critical functions effectively. Regular training is also
imparted to contract workers, tanker drivers and others to make
them aware of the probable hazards in their work area and avoid
Keeping in view the challenge posed by one of fastest growing waste
stream i.e. e-wastes, your Company organized a two-day HSE
workshop on the theme E–Waste Management for its business
heads, fire and safety heads and environment engineers. Faculty from
the Ministry of Environment & Forests and prestigious institutions
imparted valuable insights about the e-waste management and the
applicable rules and regulations.
Safety Audits are carried out in your Company to ensure
implementation of the HSE Management system guidelines and
emergency preparedness. Safety audits are carried out by external
safety auditors and experienced in-house auditors.
Your Company has implemented occupational hygiene measures and
medical surveillance programmes to monitor and control the
occupational health of its employees. Your Company has prepared
guidelines on occupational health management in the organization to
manage the occupational health of its employees and workers.
The Corporate Occupational Health Committee met four times during
the year to monitor the occupational health programme in your
Company. As a measure of a broader coverage of occupational health
programme, your Company formed eleven new local level
occupational health committees at its compressors and pumping
stations in addition to the existing six local level occupational health
committees at its process plants. All employees of your Company at
various work centres undertake periodic medical examination as per
Your Company published its fourth Sustainability Report – ''Care Share
and Grow'' for FY 2013-14. The stakeholder centric report focuses on a
growth that creates value for all our stakeholders. The report highlights
the various initiatives taken in the economic, environmental and social
dimensions to secure the long term interests of our stakeholders. ''Care
Share and Grow'' is in line with the global sustainability reporting
standards of GRI (Global Reporting Initiative) G3.1 guidelines on
Sustainability Reporting and the Oil & Gas Sector Supplement (OGSS).
The report is externally assured in line with Assurance Standard
AA1000AS with application level A . It is a Type 2 Moderate level assured
report including data verification at different sites of GAIL. The report is
available on the GAIL website (www.gailonline.com).
Your Company has a defined Sustainability Governance Structure
following a top-down approach that spans across various critical
functions to effectively manage organizational complexities. The
Sustainable Development Committee, sub-committee of the Board is
headed by an Independent Director with all the Functional Directors as
members except Chairman & Managing Director, supported by the
Sustainable Development Steering Committee, headed by the Director
(Business Development) to provide impetus and direction to achieve
sustainability goals, meet targets and monitor on-ground
implementation of the various initiatives. At sites, we have the multi-
disciplinary Sustainability Committee and Sustainability Team at the
One of the Gas Processing Units at Gandhar was certified for Energy
Management System ISO 50001:2011, which enable a systematic
approach in achieving continual improvement of energy performance,
including energy efficiency, energy use and consumption. Your Company
has also taken up the implementation of SA 8000 across its operation
with pilot site as Hazira Compressor Station. With this, it is aimed to
ensure meeting the voluntary requirements in the workplace that will
protect and empower personnel within a company''s scope of control and
This year, your Company participated in the Carbon Disclosure Project
(CDP) for the first time. CDP is an international, not-for-profit
organization providing the only global system for companies and cities to
measure, disclose, manage and share vital environmental information.
Your Company is the highest scoring public sector company among the
Indian CDP responders in 2013.
Your Company is the only PSU in Oil and Gas sector to become the
founding member of the GRI Focal Point India Sustainability and
Transparency Consortium. The Consortium provides a platform to share
and engage with various organizations to discuss issues related to
sustainability reporting. Your Company also hosted the launch of the GRI
G4 Guidelines in India at GAIL Corporate Office in Delhi. In addition,
senior official''s of your Company had a fruitful interaction with senior
executives from GRI, sharing industry perspective in the field of
Your Company also became the founding member of the India Green
House Gas (GHG) Program along with various other major companies.
The programme is a voluntary initiative launched by World Resources
Institute (WRI) India, the Confederation of Indian Industry and The
Energy and Resources Institute on GHG accounting, standardize
measurement and management of GHG emissions in India. The
programme promotes a more competitive, profitable and sustainable
business environment, broadening engagement between policymakers
and the business sector in supporting the overall advancement of
Going beyond the mandatory requirements, your Company has set clear
targets through Sustainability Aspirations 2020, with respect to the
management of Green House Gas (GHG) emissions, water consumption,
energy efficiency and training / awareness on sustainability. This
initiative has been highly appreciated at various national and
international forums. The details of the progress are presented in our
Sustainability Report FY 2013-14. All these initiatives are aimed at
building the social and environmental capital of your Company to make it
a truly sustainable company.
In line with the SEBI requirements, your Company provides a complete
disclosure on the Company''s performance on the 9 Principles of National
Voluntary Guideline and Core Elements. The BRR FY 2013-14 is contained
in a separate section in the Annual Report FY 2013-14.
INCLUSIVE GROWTH- INITIATIVES FOR SOCIAL GROWTH
Your Company believes that CSR plays a major role in developing a
nation. Therefore, your Company has made Corporate Social
Responsibility (CSR) 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 PAT to CSR activities. Further, your Company has constituted
a CSR Committee of the Board to deliberate and decide on the CSR
proposals. The details of the same are contained in the report on
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.
Various improvements were introduced in systems and processes by
your company for achieving better e-governance. Some of these
significant improvements are:
- Complaint Monitoring System (CMS) to process all complaints which
are received in various work centres and departments centrally.
- E-Tendering threshold limit has been reduced from Rs. 50 lacs to
Rs. 25 lacs.
- Renewal of ISO Certification of Corporate Vigilance Department.
- Quarterly automatic alerts to respective Officer In-charge for taking
suitable action to resolve instances of outstanding retention money
of the vendors.
- Improvements have been made in Tender Monitoring System to
generate more customized reports.
Vigilance Awareness Week-2013 was observed from 28th October, 2013 to
2nd November, 2013 under the aegis of the Central Vigilance Commission
(CVC), at the Corporate Office, New Delhi and at all your Company work
centres. Shri Pratyush Sinha, former Central Vigilance Commissioner
graced the inaugural ceremony as the Chief Guest and administered
Vigilance Pledge to the employees. On this occasion, a magazine
JAGROOK published by the Corporate Vigilance Department,
containing CVC circulars and articles on the subject of Good Governance
including case studies was released. The theme of the Vigilance
Awareness Week this year was Promoting Good Governance Positive
Contribution of Vigilance. In order to spread awareness of the theme,
various competitions such as online quiz, essay writing (Hindi & English),
slogan writing (Hindi & English) and poster painting were organized
across different centers of your Company. A customer interactive meet
and a vendor interactive meet were organized at Jaipur and Noida
respectively. Customers from various segments such as Natural Gas,
Liquid Hydrocarbon and Petrochemical as well as vendors providing
project related services/supplies to your Company actively participated
in the two meets.
Your Company lays a strong emphasis on attracting, acquiring and
deploying the best talent across all its business functions. A highly
engaged and dynamic workforce has led to a continuous rise in the value
added per employee in the last 5 years. Value added per employee gives
an account of efforts of the Company''s employees to make the best and
most productive use of the resources available to them.
Your Company lays great emphasis on the development of human resources
in the existing and new areas of its business. GAIL Training Institute
(GTI) organizes systematic and structured programmes for capability
building across all levels within the organization. In recognition of
its initiatives, GTI has received the prestigious national award for
Innovative Training Practices from the Indian Society for Training and
Development (ISTD) and the Golden Peacock National Training Award -
GTI, Noida and Jaipur have maintained the track record of excellent
MoU performance in all the parameters in the MoU signed with the
administrative ministry. The key achievement are as under:
Percentage actualization of training plan has been more than
100% for the financial year ending 31st March, 2014. A total 224
training programmes were organized during the period under
review. 17910 man-days of training were organized by GTI, Noida &
Jaipur in the above period. Training days per employee is 4.51.
The development plan of the executives is directly linked with the
Performance Management System.
Training budget as percentage of employee cost for FY 2013-14 is
A mentorship programme has been established for the new joining
executives and all mentees have been assigned their respective
Yoga classes are organized at GTI and at various sites to reduce
stress. Eleven programmes/sessions were organized during FY
6 man-days of training on awareness of sucession planning have been
6 man-days of training have been imparted on Risk Management to GAIL
216 man-days of training have been imparted on Project Management to
With the objective to share and manage knowledge within the
organization, Technical Knowledge Sharing Seminar and sessions are
organized every year.
5 company wide business quizzes were organized to keep the GAIL
employees updated with the latest developments in the business areas of
In its pursuit of offering training programmes to external
organizations and to convert itself into a revenue generating centre,
GTI has successfully organized training programmes for participants
from other organizations like RGPPL, HPCL, BCPL, IGL, MGL, MNGL, GSPL,
HMEL etc. Further, in collaboration with the American Society of
Mechanical Engineers (ASME), USA, GTI is successfully running
certificate courses in ASME B31.8, B 31.8S and B 31Q for various
Development Programme for Senior Management
Your Company realizes that it is critical to continually strive to
develop and enhance the capability and competence of its senior level
executives in order to prepare them for future leadership positions. As
an effort towards the same, the Senior Management Development Centre
(SMDC) exercise has been undertaken as part of the Leadership
Development Program. SMDC has been conducted for senior executives in
the Chief Manager and above grades and as of now around 600 senior
executives have been covered under this exercise.
In order to fill in the developmental gaps of such executives
identified through the 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.
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 SCs, STs and OBCs amongst them in your Company as on
31st March, 2014 are given in the table below:
GROUP EMPLOYEES SC ST OBC PWD
ON ROLL (NCL)
A 2947 454 180 513 38
B 592 123 72 99 12
C 424 77 14 126 33
D 52 17 5 14 2
TOTAL 4015 671 271 752 85
A total of 132 new employees joined the Company during the FY 2013-14.
The total manpower of the Company as on 31st March, 2014 stood at 4022
(including Whole-Time Directors & CVO) with 16.71% the Company''s
employees belonging to the SC category; 6.75 % to the ST category;
18.73 % to the OBC (NCL) category; 8.02 % to minorities and 2.12 % to
PWDs category. Your Company''s workforce comprised of 244 women
employees as on 31st March, 2014.
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 new entrants in the company with the
Official Language Act and various OL rules, training to ETs and GETs is
being imparted at the induction level. To inculcate the knowledge of
the Official Language among the newly promoted employees from S7 to E1
and E2 grades, special 2-days'' training programmes have been designed
and implemented at the corporate level besides other regular workshops
at all the work centres.
With a view to create greater awareness and consciousness among
employees, Hindi Fortnight was celebrated from 14th to 28th September,
2013 across the Company. During the fortnight innovative and
interesting competitions, cultural activities, Kavi Sammelan, seminars
on Hindi activities etc. were conducted. Every Monday/first working day
of the month is being observed as Hindi Diwas across the Company.
Bilingual software with Unicode fonts were made available across the
Company. 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.
As an innovative initiative, names of all employees of your Company in
official e-mail IDs are being displayed in Hindi also. The terminology
being used across GAIL has been standardized and circulated.
Training in translation is being provided to all nodal officers on
quarterly basis through the Central Translation Bureau, Ministry of
In order to provide a larger platform to discuss the problems and
difficulties in implementation of the Official Language, an annual
conference was organized on 22nd February, 2014 wherein senior
officials from corporate office and work centres participated and
shared their valuable thoughts.
The bilingual website of GAIL was launched on 22nd February, 2014 by
In order to cultivate the habit of reading Hindi books among employees
of GAIL and their family members, two books Anger Management and
Time Life Management in Hindi were distributed to all employees on
the occasion of Vishwa Hindi Diwas .
To encourage and recognize the role of women employees in your
Company''s success story, GAIL Women Employees Award Scheme has been
instituted since 2009. Since then, every year awards to Women
employee(s) based on their performance in their functional area are
conferred on the International Women''s Day.
INNOVATION, RESEARCH & DEVELOPMENT
Your Company firmly believes that innovation can lead to multiple
benefits for the organization. Accordingly, the Company makes constant
efforts to create a culture that supports innovation in all its
business verticals. Your Company has a Suggestion Scheme for the
employees to promote organization-wide idea generation for incremental
innovation. The suggestions are evaluated in a time bound manner for
implementation and the best suggestion is awarded with the CMD trophy.
As part of the activities of Sectoral Innovation Council by MOPNG, your
Company has been nominated as the coordinator for mid-stream sector of
Oil & Gas industries and aims to promote industry-wide innovation in
Your Company has further intensified its thrust on Research &
Development (R&D) activities and put in place a R&D Policy and Manual
that streamlines the Selection, Award and Monitoring of R&D projects.
Your Company is pursuing various R&D projects in identified thrust
areas with a focus on developing high-impact innovative technologies
that unlock new energy sources, improve efficiency of existing
operations, and add value to the products. In addition, few projects
are also being pursued on CO2 utilization to reduce carbon footprint.
Your Company has successfully completed a pilot project for Land Fill
Gas (LFG) recovery at Ghazipur Landfill site, Delhi. This is the first
project of its kind in India to be implemented on an active landfill
site. It is also the first project of your Company to have been
successfully validated and registered with UNFCCC for availing carbon
credits. This project show cases your Company''s efforts towards
sustainable utilization of resources.
Your Company has a judicious mix of R&D portfolio comprising of various
Basic/Applied/Pilot & Technology development projects encompassing the
natural gas value chain. In addition, few projects are also being
pursued in upcoming areas like Underground Coal Gasification, Fuel
Cells, Hydrogen, and Gas Hydrates in line with the Company''s aspiration
to emerge as an integrated hydrocarbon major by 2020. These projects
are being pursued in association with reputed research organizations /
TOTAL QUALITY MANAGEMENT (TQM)
Your Company continues to focus on continual and sustainable
improvement in the process, system and functional areas. Customer
satisfaction is the top agenda of your Company and is being
continuously monitored through regular interactions. Preliminary steps
have been under taken by the department to initiate Deming Prize
related works for one of its units. Major achievements of your Company
in TQM are as under:
- Customer Satisfaction Index achieved during FY 2013-14 is 92%.
- Your Company has undertaken 137 number of QC Projects at various work
centres of GAIL which have resulted in financial savings of Rs. 826.49
lacs (tangible gains) from these projects for the FY 2013-14, which has
led towards continual improvement (intangible gains) as well as
- LPG Gandhar plant received Energy Management system certificate of ISO
PROCUREMENT FROM MSES
The Government of India has notified a Public Procurement Policy for
Micro and Small Enterprises (MSEs), Order 2012. In terms of this
policy, the total procurement made from MSEs (including MSEs owned by
SC/ST Entrepreneurs) during the year 2013-2014 for goods & services is
about Rs.18,000 lacs which is approximately 8.64% of the total
procurement of goods & services of about Rs. 2,08,000 lacs.
A Memorandum of Understanding (MoU) is signed every year between your
Company and its administrative ministry i.e. MoPNG, with the aim to
enhance the performance level of the Company through the targets set
therein. The MoU for the year 2013-14 was signed between the Chairman &
Managing Director and the Secretary (P&NG), Government of India on 25th
The thrust while fixing MoU targets was more towards improving
performance on critical aspects of the Company which include gas
marketing, gas transmission, project implementation, Capital
expenditure, New Business Areas, Quality Management and Safety among
others. Significant thrust has been given on Corporate Social
Responsibility, R&D, Sustainability, Human Resources and Corporate
Your Company has been consistently achieving an excellent MoU rating
from the inception of MoU system i.e. from 1989-90 to 2012-13. For the
year 2013-14, inspite of the economic slowdown and relatively
unfavourable conditions compared to preceding years, GAIL is hopeful in
achieving an excellent performance. The final ratings of your Company
on MoU 2013-14 shall be declared in August 2014.
- Greentech Gold Award for outstanding achievement in Corporate Social
Responsibility (CSR) in Gold Category.
- Global HR Excellence Award for Talent Management 2014 and Best
Employer 2013-14 award for Best HR Strategy in Line with Business, by
World HRD Congress.
- Sustainability Performance Award by Indian Chamber of Commerce at
4th Corporate Governance and Sustainability Vision Summit & Awards
- International Safety Award-2014 with merit from British Safety
Council, UK to GPU, Vijaipur/GAIL Khera.
- International Safety Award-2014 from British Safety Council, UK to
GAIL Vaghodia (4th time in a row)/Gandhar/NCR/Rajamundry
- Golden Peacock Environment Excellence Award-2013 to GAIL Gandhar
from Institute of Directors, New Delhi.
- Golden Peacock Occupational Health and Safety Award-2013 to GAIL
Lakwa from Institute of Directors, New Delhi.
- National Safety Council of India (NSCI) Suraksha Puraskar (Bronze
Trophy)- 2012 to LPG Plant, Vijaipur.
- National Safety Council of India (NSCI) Suraksha Puraskar (Bronze
Trophy)- 2012 to HVJ Compressor Station, Vijaipur.
- National Safety Council of India (NSCI) Prashansa Patra-2012 to
- Safety Innovation Award-2013 from Institution of Engineers (India)
to GAIL Usar/Vaghodia/ Mumbai/Mansarampura/Abu Road.
- Gujarat State Safety Award-2012 (Shield) to GAIL, Vaghodia.
- Gujarat Safety Council Appreciation Certificate for Safety to
RPNHQ, Vadodara region for the year of 2012.
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. 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. The 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 the said circular.
Your Company has five subsidiary companies as on 31st March, 2014. Your
Board has accorded the necessary approval for not attaching Directors''
Report, Balance Sheet, Profit & Loss Account, Auditor''s 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 with
the Balance Sheet of your Company. All the conditions mentioned in the
circular are being complied to by your Company. The Annual Report of
the said subsidiary companies is available on your Company''s website
www.gailonline.com. Besides, a physical copy will be made available to
the shareholders on request in writing.
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, 2014
form 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 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 the Companies Act,
1956, Listing Agreement, DPE guidelines on Corporate Governance, SEBI
Guidelines, forms part of this Report at Annexure- D.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION The 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 Anexure-E.
PARTICULARS OF EMPLOYEES
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 31st March, 2011 issued by the
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 the 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. 210.01 crore and
foreign currency outgo was Rs. 9,229.22 crore.
During the year under review, there was an outgo of Rs. 3.97 crore on
foreign tours and training and Rs. 1.35 crore on advertising and
During the year, the following ceased to be Directors on the Board of
?Shri Arun Agarwal, Independent Director w.e.f. 23rd February, 2014
consequent upon completion of tenure for 3 years. ?Shri R.D. Goyal,
Director (Projects) w.e.f. 28th February, 2014 upon attaining the age
Dr. Ashutosh Karnatak, Director (Projects) was appointed on the Board
of your Company as Additional Director w.e.f. 1st March, 2014.
The tenure of Shri B.C. Tripathi as Chairman & Managing Director was
extended for a period of five years beyond 31.07.2014 by Government of
Further, Shri Prabhat Singh, Director (Marketing) and Shri P. K. Singh,
part-time (Govt. Nominee) Director are retiring by rotation and being
eligible have offered themselves for re-appointment.
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 the Listing Agreement and
DPE guidelines on Corporate Governance, the Board Members and Senior
Management Personnel have affirmed compliance with the Code of Conduct
for the financial year ending 31st March, 2014.
DIRECTORS'' RESPONSIBILITY STATEMENT
Yours Directors confirmed that:
i) in the preparation of the annual accounts for the financial year
ending 31st March, 2014, the applicable accounting standards have been
followed, along with proper explanation relating to material
ii) 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
iii) 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 irregularities;
iv) prepared the annual accounts for the financial year ending 31st
March, 2014 on a going concern basis;
v) have devised proper systems to ensure compliance with the provisions
of all applicable laws and such systems were adequate and operating
vi) laid down internal financial controls to be followed by the Company
and that such internal financial controls are adequate and were
- StaSutouty ory Audito
The statutory auditor of your Company is appointed by Comptroller &
Auditor General of India (CAG). M/s M. L Puri, Chartered Accountants,
New Delhi and M/s G.S. Mathur & Co., were appointed as Joint Statutory
Auditors of your Company for 2013-14.
The review of your Company''s Annual Accounts for the financial year
ending 31st March, 2014 by CAG forms part of this report. Notes on
accounts referred in the Auditors'' Report are self-explanatory and
therefore, does not call for any further comment.
- CosCost udAudito
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 2013-14.
The due date for filing cost audit reports for the financial year ended
31st March, 2013 was 27th September, 2013 and the same were filed to
Registrar of Companies on 24th September, 2013.
Your Directors express their gratitude for help, guidance and support
received 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 shareowners, business
partners and members of GAIL family for reposing their faith, trust and
confidence in your Company.
On behalf of your Directors, I would like to place on record our deep
appreciation for the hard work, dedication, commitment and solidarity
of your Company''s employees.
Your Directors and employees look forward to the future with confidence
and stand committed to creating a bright future for all stakeholders.
For and on behalf of the Board
Chairman & Managing Director
Place : New Delhi
Dated : 04.08.2014