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GAIL India

BSE: 532155|NSE: GAIL|ISIN: INE129A01019|SECTOR: Oil Drilling And Exploration
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Directors Report Year End : Mar '16    « Mar 15
DEAR SHAREHOLDERS,
 
 On behalf of the Board of Directors of your Company, I am delighted to
 present the 32nd Annual Report of your Maharatna Company, along with
 Audited Financial Statements for the financial year 2015-16.
 
 PARTNER INDIA''S GROWTH - NATURAL GAS LEADER
 
 With a turnover of Rs.51,614 crores, your Company is India''s largest
 natural gas Company and is ranked amongst the top gas utilities in
 Asia. Your Company has presence across the entire gas value chain with
 activities ranging from Gas Transmission and Marketing to Processing
 (for fractionating LPG, Propane, SBP Solvent and Pentane), transmission
 of LPG, and production and marketing of Petrochemicals like HDPE and
 LLDPE.
 
 Your Company has extended its presence in LNG re-gasification, City Gas
 
 Distribution, Exploration & Production through subsidiaries and joint
 venture companies and also diversified into solar and wind power
 generation.
 
 Gas transmission is one of the core competencies of your Company and
 draws its strength from about 11,000 km of natural gas pipeline network
 and 2,038 km of LPG pipeline transmission network.
 
 With a lean work force of 4321 employees, your Company plays a vital
 role in the social and economic development of the country and makes a
 substantial contribution towards its energy security.
 
 FINANCIAL HIGHLIGHTS
 
 The important financial highlights for the year 2015-16 are as under:
 
 PARTICULARS                           2015-16                 2014-15
 
                         US $ Million  (Rs. in 
                                        crores)  US $ Million  (Rs. in 
                                                                crores)
 
 Turnover (Net of ED)           7,715   51,614          8,952   56,569
 
 Other income                     173    1,158            173    1,096
 
 Cost of sales 
 (excluding interest 
 and depreciation and 
 including                      7,122   47,646          8,236   52,046
 extraordinary items)
 
 Gross margin                     766    5,126            879    5,557
 
 Interest                          96      640             57      361
 
 Depreciation                     196    1,313            154      974
 
 Profit before tax                474    3,173            678    4,284
 
 Provision for tax                131      874            197    1,245
 
 Profit After Tax                 344    2,299            481    3,039
 
 Appropriations                     -        -              -        -
 
 Interim dividend                  47      317             60      381
 
 Proposed final dividend           57      381             60      381
 
 Corporate dividend tax            21      142             24      154
 
 Net transfer to/from 
 bond redemption reserve            5       35              6       37
 
 Transfer to CSR reserve           (0)      (1)            (5)     (30)
 
 Transfer to general 
 reserve                           34      230             48      304
 
 Net surplus after 
 Appropriations                   179    1,196            287    1,814
 
 1 US $ in INR converted at 
 the exchange rate as on 
 31st March of                  66.90        -          63.19        -
 the respective financial 
 year
 
 DIVIDEND
 
 Your Company has a consistent track-record of dividend payment. So far,
 it has disbursed dividend of over Rs.13,741 Crores to its shareholders
 including Rs.8,316 Crores disbursed as dividend to the Government of
 India (GOI).
 
 The Board of Directors of your Company had earlier approved payment of
 an interim dividend @ 25% on equity share of Rs.10 each (Rs.2.5 per
 equity share) amounting to Rs.317.12 Crores, which was paid in
 February, 2016.  Further, the Board has recommended payment of final
 dividend @ 30% on equity share of Rs.10 each (Rs.3.00 per equity share)
 for FY 2015-16 amounting to Rs.380.54 crores.
 
 With this, the total dividend payment for the fiscal year 2015-16 will
 be 55 % on equity share of Rs.10 each (Rs.5.50/- per equity share)
 amounting to Rs.697.66 Crores on its paid-up equity capital of
 Rs.1,268.48 Crores and dividend distribution tax of I42.03 crores. The
 total dividend pay-out including corporate dividend tax accounts for
 35% of profit after tax.
 
 CONTRIBUTION TO EXCHEQUER
 
 Your Company has contributed over Rs.4,929 Crore in 2015-16 to the
 exchequer through dividend, duties, taxes and others, as compared to
 Rs.5,788 Crore in 2014-15.
 
 CREDIT RATING
 
 - Domestic rating
 
 Your Company has been reaffirmed the highest domestic credit rating of
 AAA from ICRA, CARE and CRISIL, which is highest credit rating in India
 and carries lower credit risk of the Company.
 
 - International Rating
 
 The International rating agency, Moody''s International, Hong Kong, has
 also reaffirmed the corporate issuer rating of Baa2 with a negative
 outlook, which is one notch higher than sovereign rating of India. The
 Baa2 rating affirmation reflects GAILs dominant position in gas
 transmission business. 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 of India.
 
 BUSINESS STRATEGY
 
 In the last year and a half, the oil and gas sector witnessed
 game-changing disruptions with oil prices crashing from 114 $/bbl to a
 low of around 30 $/bbl and having profound implications on companies
 across the sector.
 
 The volatility in oil prices has caused downward shift in prices of
 LNG, oil products, petrochemical products, etc. Further, domestic
 production of natural gas has been on the decline over the past 5
 years, from peak of 140 MMSCMD in 2010-11 to 86 MMSCMD in 2015-16.
 Notwithstanding these challenges which have had physical and financial
 implications on your Company, the management has taken it as an
 opportunity and has initiated strategic steps to reinvent itself and
 emerge out stronger than before.
 
 In order to evolve, grow and excel, your Company continuously reviews
 its strategy developed for the period 2011-2020 to make the necessary
 course correction, in line with changes in the external business
 environment and internal organizational requirements. Management of
 your Company is taking steps to realize strategic objectives and ensure
 that your Company is on course to become an integrated hydrocarbon
 major with presence across the entire gas value chain.
 
 - National Gas Grid
 
 Your Company is the largest natural gas pipeline Company in India and
 going forward, the focus will be on the development of National Gas
 Grid which is one of the key priorities of the Government of India
 (GoI). Your Company now has a total network of approximately 11,000 km
 pipeline in the country. Additionally, it has commenced execution of
 the Phulphur
 
 - Haldia pipeline project (Phase-1) which was inaugurated by the
 Hon''ble Prime Minister of India in July, 2015. This project is also
 referred to as Energy Highway of Eastern India and once completed, it
 would help to revive closed fertilizer plants. This pipeline will
 connect states of Eastern India to the rest of the gas network in the
 country and pave the way for developing the National Gas Grid The
 Board has also approved the 670 km Vijaipur-Auraiya-Phulpur pipeline.
 With these projects and through continuous pan-India expansion of the
 pipeline network, your Company will further strengthen its leadership
 position in the natural gas transmission segment.
 
 Your Company is also pursuing the transnational pipeline project, the
 Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project. Gas
 Sales & Purchase Agreement (GSPA) has already been signed to import 38
 MMSCMD gas into the country through this pipeline. Further, TAPI
 Pipeline Company has been incorporated as a Special Purpose Vehicle in
 the Isle of Man with your Company holding 5% equity. Shareholder''s
 Agreement and Investment Agreement of TAPI Pipeline Company have been
 signed.
 
 - LNG Marketing
 
 One of the key strategic priorities of your Company today is the
 marketing of LNG in domestic and international markets. Over the last
 few years, your Company tied-up significant LNG volumes by concluding
 several deals with suppliers, such as Sabine Pass Liquefaction LLC
 (USA), Gazprom (Russia) etc. Further, your Company''s US subsidiary has
 booked LNG capacity in Dominion Cove Point''s LNG liquefaction terminal
 in the USA for which 20 year gas sourcing agreement has been entered
 with WGL Midstream Inc.  (USA). In line with its LNG import portfolio,
 your Company is focusing it efforts on gas market development to
 attract and retain more customers.  The marketing tie-ups are being
 explored for selling LNG in India and in the global markets. Your
 Company''s subsidiary, GAIL Global (Singapore) Pte Limited is actively
 pursuing LNG trading activities from Singapore.
 
 To develop the gas sector in India and advance the country on the road
 to a gas based economy, your Company has advocated the implementation
 of the pooling mechanism. As a result, for the first time in the
 country, large scale gas pooling was introduced where your Company is
 acting as a pool operator to manage procurement and supply of R-LNG to
 stranded gas based power plants in India. Your Company is also
 supplying RLNG to fertilizer companies at competitive rate through
 bidding process.
 
 Your Company has tied-up additional regasification capacities at Dahej
 LNG terminal and Dabhol LNG terminal to facilitate regasification of
 additional LNG tied-up in recent years. Further tie -ups in upcoming
 LNG regasification terminals shall also be pursued. Your Company plans
 to own long term charter hire LNG ships to transport LNG volumes from
 the USA to India and other global markets.
 
 - City Gas Distribution (CGD)
 
 In order to provide clean fuel for domestic, vehicular and commercial
 use and to facilitate development of smart cities, your Company is
 expanding its CGD network. Your Company''s wholly owned subsidiary, GAIL
 Gas Limited, is implementing CGD projects in the cities of Kota, Dewas,
 Meerut, Sonepat, Bengaluru and Taj Trapezium in addition to pursuing
 the same in the state of Kerela, Karnataka, Andra Pradesh, Rajasthan,
 Kota and Vadodara city etc. through its joint ventures. In line with
 the GoI''s mission to accelerate the use of gas, your Company through
 its CGD JVs has set an unprecedented record by providing 2.5 lakhs new
 PNG connections during the year.
 
 - Petrochemicals
 
 Your Company aspires to be one of the leading players in India in this
 segment by strengthening its petrochemical portfolio through expansion
 of existing capacities, setting up new plants and acquiring equity
 stakes in upcoming projects. Petrochemical plant was commissioned in
 Assam through Brahmaputra Cracker & Polymer Limited (BCPL) a subsidiary
 of your Company. This plant was dedicated to the nation by Hon''ble
 Prime Minister of India in February, 2016. Further, a petrochemical
 plant at Dahej is being set up by ONGC Petro-additions Limited (OPaL)
 which is a joint venture (JV) of your Company,
 
 - Renewables
 
 As a responsible corporate citizen and in line with the GoI''s
 commitment to reduce carbon emissions, your Company aims to decrease
 its carbon footprint in a phased manner. It has installed 118 MW wind
 energy capacity and has also set up a 5 MW solar project. Further, your
 Company is a stakeholder in a Special Purpose Vehicle (SPV) created
 under the aegis of Ministry of Petroleum & Natural Gas (MoP&NG) and
 Ministry of New & Renewable Energy (MNRE) for pursuing the setting up
 of Grid Connected Renewable Energy Power Projects.
 
 - Human Resource Development
 
 Your Company is committed to align its human resource development
 initiatives with strategic business objectives to achieve its
 organizational goals. The key areas under focus are skill development
 and capability build-up, talent acquisition, development and retention.
 
 BUSINESS PERFORMANCE
 
 During the year under review, the segment wise business performance of
 your Company is as under:
 
 - Natural Gas Marketing
 
 Natural gas marketing continues to constitute your Company''s core
 business. During 2015-16, gas sales clocked 73.67 MMSCMD, compared to
 72.07 MMSCMD in the previous financial year. Major supplies of natural
 gas include fuel to power plants, feedstock for gas-based fertilizer
 plants, LPG extraction and City Gas Distribution. Your Company holds
 around 71.24 % market share in India''s gas marketing.
 
 Your Company has been designated by Ministry of Petroleum & Natural Gas
 (MOP&NG) to raise invoices for non- submission of utilization
 certificate, duly certified by Fertilizer Industries Coordination
 Committee (FICC), by concerned fertilizer companies for use of APM gas
 for production of urea.  The Company is revenue neutral for such
 transaction.
 
 Most of the customers disputed the debit notes raised by the Company
 and matter was pending at Hon''ble High Court. Further, MoP&NG vide
 letter dated 16th December, 2015 revised the earlier modalities for
 deriving the quantity and price for issue of debit notes. The company
 has taken the matter with Ministry of Fertilizer and FICC to provide
 information / details.
 
 Considering the pending court case, uncertainty in recovery of debit
 notes, matter being under consideration of Government- MOP&NG, Ministry
 of Fertilizer and FICC, The Company issued claim letter amounting to
 Rs.  1651.18 crore for such type of cases, till the matter gets
 settled.
 
 - Transmission
 
 - Natural Gas
 
 Your Company owns and operates a network of about 11000 kms of natural
 gas high pressure trunk pipeline with a pan-India capacity of around
 206 MMSCMD of natural gas. The average gas transmission during the year
 was 92.72 MMSCMD, compared to 92.10 MMSCMD in the previous financial
 year.
 
 - LPG
 
 Your Company is the only Company in India, which owns and operates
 exclusive pipelines for LPG transmission for third-party usage. It owns
 and operates two LPG pipeline transmission systems with a total length
 of 2,038 kms. Out of this, 1,415 kms 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 2015-16,
 the LPG transmission throughout achieved was about 2.82 Million MT.
 
 - Petrochemicals
 
 During 2015-16, your Company produced 344.168 Thousand MT of polymers
 and sold 333.5 Thousand MT of polymers.
 
 - LPG and Other Liquid Hydrocarbon Production
 
 Your Company has LPG plants at five locations in the country. In 2015-
 16, total liquid hydrocarbon production was about 1.09 Million MT,
 which mainly included 0.85 Million MT of LPG, 0.13 Million MT of
 Propane, 0.02 Million MT of Pentane and 0.08 Million MT of Naphtha.
 
 - Exploration and Production (E&P)
 
 Your Company''s E&P business has continued self-sustainable production
 of oil and gas for the second consecutive year from four blocks (two
 overseas blocks in A-1 & A-3 block, Myanmar and 2 domestic blocks in
 Cambay basin).
 
 Revenue of approx. Rs. 751.51 Crores has been generated from sale of
 hydrocarbon from 4 producing blocks namely A-1 & A-3, Myanmar and
 CB-ONN-2000/1 and CB-ONN-2003/2 (Cambay onland) during the year
 2015-16.
 
 Further, Field Development Plan (FDP) has been approved by Directorate
 General of Hydrocarbons (DGH) for the gas resource of 65 BCF in Tripura
 block (AA-ONN-2002/1).
 
 As a result of continued portfolio optimisation, your Company now has
 participating interest in 13 E&P blocks (excluding one GAIL Operated
 Block CY-ONN-2005/1 in Cauvery basin which was relinquished in June
 2016) of which 11 blocks are in India and 2 in Myanmar. Out of these,
 your Company is Operator in one onland blocks viz. CB-ONN-2010/11 in
 Cambay basin awarded during NELP-IX bidding round.
 
 Drilling activities were initiated in 4 (out of 5) blocks obtained
 during NELP-IX bidding round viz (i) CB-ONN-2010/11 (Lead Operator:
 GAIL),
 
 (ii) CB-ONN-2010/8 (Lead Operator: Bharat Petro Resources Limited)
 
 (iii) GK-OSN-2010/1 (Operator: ONGC) (iv) GK-OSN-2010/2 (Operator:
 ONGC). Gas discovery has been notified to Government in the block GK-
 OSN-2010/1. Survey activities are planned in the remaining NELP-IX
 block AA-ONN-2010/2 (Operator: OIL)
 
 INITIATIVES FOR FUTURE GROWTH
 
 * Global Initiatives
 
 Your Company is constantly pursuing a leading role in the TAPI Pipeline
 project to receive Natural Gas from the Galkynysh fields in
 Turkmenistan.  After incorporation of TAPI Pipeline Company Limited
 (TPCL), Turkmengas has been endorsed as the consortium leader. TPCL has
 a mandate to build, own and operate the proposed TAPI Pipeline. The
 Shareholders Agreement (SHA) of TPCL was signed in December 2015 during
 the ground breaking ceremony for laying of the Turkmen leg of the TAPI
 pipeline. Investment Agreement (IA) relating to initial equity infusion
 by the TAPI entities into TPCL was also signed in April, 2016.
 Galkynysh Pipeline Company, the consortium leader group led by
 Turkmengas, shall be taking 85% equity in TPCL, while your Company,
 ISGS (Pakistan) and Afghan Gas Enterprise (AGE) shall be taking 5%
 equity each.
 
 * Domestic Initiatives
 
 The domestic business initiatives of your Company were as follows:
 
 * Petrochemicals
 
 GAIL and Hindustan Petroleum Corporation Limited (''HPCL!) are exploring
 the possibility of setting up a Greenfield petrochemical complex in the
 east coast of India primarily based on imported ethane.
 
 * LNG REGASIFICATION TERMINALS
 
 Your Company is evaluating various opportunities for setting up/
 booking LNG regasification capacity in the country
 
 * LNG SHIPPING
 
 In 2011, your Company contracted 3.5 MMTPA of LNG from Cheniere Energy,
 USA on FOB basis for an initial period of 20 years. Further, in 2013
 your Company subsidiary GAIL Global (USA) LNG LLC also signed a
 Terminal Service Agreement (TSA) for booking 2.3 MMTPA of liquefaction
 capacity in the Dominion Cove Point terminal for 20 years. The initial
 supplies from both these contracts are expected to commence from early
 2018. Currently, your Company is in the process of long term charter
 hiring of LNG ships through the international competitive bidding
 route.
 
 * NATURAL GAS PIPELINE PROJECTS
 
 During the financial year, your Company has completed 27 number of
 ''Last Mile Connectivity'' to harness the commercial utilization of
 various pipeline networks in the seven states of Karnataka , Gujarat,
 Goa , Haryana, Rajasthan, Maharashtra & Punjab.
 
 * NON-CONVENTIONAL ENERGY
 
 Your Company has total installed capacity of 118 MW of Wind Energy
 Generation Projects (WEG). Your Company began operations with a modest
 capacity of 4.5 MW wind energy for captive use in Gujarat in 2009-10
 and graduated to commercial production after commissioning 100 MW of
 WEG projects in Tamil Nadu and Karnataka in 2011-12. It also made its
 entry in the solar power sector by setting up 5 MW Solar Power Plant in
 Rajasthan through bidding under the Jawaharlal Nehru National Solar
 Mission.
 
 Your Company is setting up 5.76 MW grid connected roof top captive
 solar power plant at Pata Petrochemical Complex, Uttar Pradesh.
 
 * COAL GASIFICATION
 
 Your Company is also entering into coal gasification by setting up
 surface coal gasification based urea project at Talcher. The project is
 envisaged for production of 2200 MTPD Ammonia and 3850 MTPD Urea and
 the project cost is estimated to be around Rs.8,000 Crore. Joint
 Venture Company Talcher Fertilizers Limited (formerly known as
 Rashtriya Coal Gas Fertilizers Limited) was formed on 13th November,
 2015 with consortium partners i.e. GAIL, CIL, RCF & FCIL.
 
 The success of this project would pave the way for the production of
 fertilizers from abundantly available domestic coal, thus resulting in
 lesser dependency on their imports.
 
 RELATED PARTIES - SUBSIDIARIES/ ASSOCIATES/ JOINT VENTURES
 
 Your Company has formed subsidiaries/associates/joint venture companies
 for CGD, petrochemicals, LNG, gas trading, power generation and shale
 gas. It has played pioneering role in introducing city gas projects for
 natural gas supplies to households, commercial, industrial and
 transport sectors through its subsidiary and joint venture companies.
 Contracts or arrangements/ transactions with related parties were on
 arm''s length basis and in ordinary course of business.
 
 Your Company''s subsidiaries/ associates/joint venture companies
 contributed significantly in the business expansion activities of your
 Company. A statement containing the salient feature of the financial
 statements of your Company''s Subsidiaries, Associate Companies and
 Joint Ventures as per first proviso of section 129(3) of the Companies
 Act, 2013 including details of individual contribution of all
 subsidiaries, associates and joint venture companies towards the
 overall performance of Company during the period is also given under
 Consolidated Financial Statements.
 
 The details of subsidiaries/associates/joint venture companies are
 mentioned below:
 
 NATURAL GAS, LNG AND POWER
 
 - GAIL Global (Singapore) Pte. Limited (wholly owned subsidiary)
 
 GAIL Global (Singapore) Pte. Ltd. (GGSPL), primarily started as an
 overseas investment arm of your Company and was operationalized for LNG
 trading in 2012. It commenced its business operations in May 2012.
 GGSPL is now actively involved in business activities in the area of
 LNG Trading. Until March 31, 2016, GGSPL has traded twenty one (21) LNG
 cargoes out of which 13 were traded during the financial year 2015-16.
 The turnover for 2015-16 was USD 307 million.
 
 GGSPL has also been mandated by your Company to market part of the
 Henry Hub linked LNG volume sourced from the USA, in the international
 market. The supplies against the said volumes are expected to start
 from the year 2018. 
 
 GGSPL is also in process of third-party trades and endeavouring ship
 chartering and risk management activities along with supplying LNG
 cargoes to GAIL.
 
 - GAIL Global (USA) Inc (wholly owned subsidiary)
 
 GAIL Global (USA) Inc.(GGUI), was incorporated as a wholly subsidiary
 of GAIL to undertake investment in the Eagle Ford shale gas asset. The
 primary objective behind this investment was to enter into the US shale
 gas market and to bring shale gas technology to India. GGUI executed a
 definitive agreement with M/s Carrizo Oil & Gas Inc., USA (Carrizo) on
 September 28, 2011, to enter into an unincorporated JV in the Eagle
 Ford Shale asset in Texas. GGUI acquired a 20% participating interest
 in this JV.  Carrizo, with the remaining 80% participating interest,
 functions as the operator of the JV.
 
 During the year, 20 wells came online, taking the total online wells to
 99 as on December 31, 2015. The gross production volume of GGUI during
 2015 was 853.1 Mboe.
 
 - GAIL Global (USA) LNG LLC (wholly owned subsidiary of GGUI)
 
 GAIL Global (USA) LNG LLC (GGULL) signed a contract with Dominion Cove
 Point LNG, LP (DCP) to book LNG tolling capacity of 2.3 MMTPA in its
 Cove Point terminal. It also signed Gas Sales & Purchase Agreement
 (GSPA) with WGL Midstream, Inc. for sourcing of gas for liquefaction at
 the Terminal. The construction activities at the terminal are on-track
 and the terminal is expected to be in service by January 2018. GGULL
 would be selling all LNG volumes from Cove Point to GAIL.
 
 - GAIL China Gas Global Energy Holdings Limited
 
 GAIL China Gas Global Energy Holdings Limited, was formed with an
 objective to pursue gas sector opportunities, primarily in China. Your
 Company has a 50% equity stake with China Gas Holdings Limited as an
 equal partner.
 
 - Petronet LNG Limited (PLL)
 
 PLL was formed in 1998 to set up LNG import and re- gasification
 facilities in India. It currently owns and operates a 10 MMTPA capacity
 LNG re-gasification terminal at Dahej, Gujarat. The capacity is being
 expanded to 15 MMTPA (expected to be completed by end of 2016). PLL has
 also setup an LNG re-gasification terminal at Kochi, Kerala with a name
 plate capacity of 5 MMTPA.
 
 Your Company has 12.5% equity stake in PLL along with Bharat Petroleum
 Corporation Ltd. (BPCL), Oil and Natural Gas Corporation (ONGC) and
 Indian Oil Corporation Limited (IOCL) as equal partners.
 
 - Ratnagiri Gas and Power Private Limited (RGPPL)
 
 RGPPL was formed as a joint venture with NTPC for acquiring 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. Your Company has
 25.51% equity stake in RGPPL along with NTPC 25.51%, MSEB Holding
 Company Limited 13.51% and Indian Financial institutions 35.47%.
 
 The power block, was non-operational due to paucity of funds and non-
 availability of domestic gas in FY 2014-15. Government of India has
 floated a scheme for restart of the gas based Power Plant on Regasified
 LNG, vide its OM dated 27.03.2015 support from Power System Development
 Vund (PSDF Support Scheme of GoI), which provided for reverse auction.
 RGPPL has participated in the GoI scheme with Indian Railways as the
 buyer for the generation under PSDF Scheme. Ministry of Power has
 allocated temporary 620 MW power out of allocation to Maharashtra to
 Indian Railways under PSDF Support of GoI for the financial year
 2015-16 & 2016-17.
 
 Power Plant commenced operation under PSDF Support Scheme on November
 26, 2015 & supplying around 500 MW Power to the Indian Railways in the
 states of Maharashtra, Gujarat, Madhya Pradesh & Jharkhand. During the
 Financial Year 2015-16, a total of 1197.08 BUs have been supplied to
 Indian Railways.
 
 RGPPL has already entered into a long-term frame work agreement with
 GAIL for commercial utilization of LNG terminal and commenced tolling
 operations for 25 years w.e.f February 2012. 45 cargos have been
 successfully unloaded since commissioning. 22 cargos were unloaded
 during FY 2015-16. The total revenue earned by LNG Terminal from
 commissioning till 31st March 2016 is about Rs.700 Crores. The plant
 now operates only in non monsoon period as there is no breakwater.
 Demerger process of power plant & LNG terminal is going on. It is
 envisaged that by 2020, the breakwater construction will be completed
 and it will be able to operate round the year at full capacity.
 
 The proposal for the demerger of the Power and LNG business is under
 consideration of RGPPL and its shareholders. The purpose of the
 demerger is (a) to enable restructuring of the loan in order to make
 the two demerged entities independently viable and (b) to make
 available the funds to complete the breakwater in order to achieve the
 full potential of the LNG terminal.
 
 CITY GAS DISTRIBUTION (CGD)
 
 - GAIL Gas Limited (wholly owned subsidiary)
 
 GAIL Gas was incorporated with the objective to implement City Gas
 Distribution (CGD) projects in the country, GAIL Gas has been
 authorized by Petroleum and Natural Gas Regulatory Board (PNGRB) to
 implement CGD Projects in Dewas, Kota, Sonipat, Meerut, Taj Trapezium
 Zone and Bengaluru. In addition, GAIL Gas is pursuing City Gas Business
 in the state of Kerala, Andhra Pradesh, Karnataka, Rajasthan, Kota and
 Vadodara City etc. through its joint ventures. It has also won the
 authorization of Haridwar district and North Goa through a consortium
 with Bharat Petroleum Corporation Limited by PNGRB.
 
 Rajasthan State Gas Limited (RSGL) was incorporated by GAIL Gas Limited
 and Rajasthan State Petroleum Corporation Limited (RSPCL) with the
 objective to promote the CGD projects and take up activities of gas
 distribution in the state of Rajasthan. GAIL Gas has transferred its
 Kota CGD Assets to RSGL and matching contribution will be made by other
 JV partner i.e. RSPCL
 
 * Compressed Natural Gas (CNG)
 
 During the year, GAIL Gas augmented its CNG distribution infrastructure
 by enhancing the capacity of existing stations and adding two CNG
 Station in Sonipat and one in Firozabad. CNG sales increased to 38
 MMSCM in 2015-16.
 
 * Piped Natural Gas (PNG)
 
 In PNG business, GAIL Gas is progressively supplying PNG to domestic
 customers in its authorized cities. Presently, the company is catering
 to 11404 households.
 
 GAIL Gas continue to maintain its focus on the PNG industrial and
 commercial segment as one of the potential growth areas. With its
 concentrated efforts in the year 2015-16, the total number of
 commercial and industrial customers increased to 513 in 2015-16.
 
 GAIL Gas has commissioned the steel networks in the geographical area
 (GA) of Sonepat, Dewas, Kota, Meerut, Taj Trapezium Zone and Bengaluru.
 For reaching more charge areas for domestic connections, the steel grid
 network and MDPE pipeline network has been extended to 388.93 kms and
 806.41 kms respectively in 2015-16 in the cities of Sonepat, Meerut,
 Dewas, Kota, Taj Trapezium zone and Bengaluru.
 
 During the year, the sales volume from industrial, commercial and
 domestic customers grew to 702.80 MMSCM from 526 MMSCM during previous
 year.
 
 - Aavantika Gas Limited (AGL)
 
 AGL was incorporated to implement CGD Projects in Madhya Pradesh. As on
 31st March, 2016, AGL operates 20 CNG stations including 9 daughter
 stations, 7 online stations & 4 mother stations in Indore GA (including
 Ujjain) and Gwalo GA.
 
 Further, as on 31st March 2016, AGL supplied PNG to around 6430
 Domestic, 37 commercial & 59 industrial consumers in its authorized
 geographical regions. AGL is also catering to fuel requirement of
 around 21,300 CNG vehicles operating in the region. Your Company along
 with HPCL holds 22.50% stake as an equal partner.
 
 - Bhagyanagar Gas Limited (BGL)
 
 BGL was incorporated to implement CGD projects in the United Andhra
 Pradesh. As on 31st March, 2016, BGL operated 33 CNG Stations including
 25 daughter booster stations, 5 online stations & 3 mother stations.
 Further, as on 31st March 2016, BGL supplied PNG to over 4270
 households, 46 commercial & 3 industrial consumers in its authorized
 geographical regions. BGL also fulfills the fuel requirement of around
 37000 CNG vehicles operating in the region. Your Company has 22.50 %
 stake along with HPCL as an equal partner.
 
 - Central UP Gas Limited (CUGL)
 
 CUGL was incorporated to implement CGD projects in Uttar Pradesh. As on
 31st March, 2016, CUGL operated 17 CNG Stations including 4 mother
 stations, 10 online stations & 03 daughter booster stations.
 
 Further, as on 31st March 2016, CUGL supplied PNG to over 13283
 domestic, 148 commercial & 44 Industrial customers in its authorized
 geographical regions. CUGL is also catering to fuel requirement of
 around 51865 CNG vehicles operating in the region. Your Company has 25%
 stake along with BPCL as an equal partner.
 
 - Green Gas Limited (GGL)
 
 GGL was incorporated to implement CGD projects in Uttar Pradesh. As on
 31st March, 2016, GGL operated 15 CNG Stations including 5 daughter
 stations, 6 online stations & 4 mother stations.
 
 Further, as on 31st March 2016, GGL supplied PNG to over 12100
 domestic, 15 commercial & 5 industrial customers in its authorized
 geographical regions. GGL is also catering to fuel requirement of
 around 36966 CNG vehicles operating in the region. Your Company has
 22.5% stake along with IOCL as an equal partner.
 
 - 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, 2016, IGL operated 340 CNG Stations including
 68 mother stations, 243 online stations & 29 daughter stations.
 
 Further, as on 31st March 2016, IGL supplied PNG to over 6.36 Lac
 Domestic, 1751 commercial & 821 industrial consumers in its authorized
 geographical region, which includes the entire public transport of the
 national capital and also the world''s largest bus fleet on CNG. IGL is
 also catering to fuel requirement of around 8.4 Lac CNG vehicles in the
 Delhi/NCR. Your Company has 22.5% stake along with BPCL as an equal
 partner.
 
 - Mahanagar Gas Limited (MGL)
 
 MGL was incorporated to implement CGD projects in Mumbai & adjoining
 areas. As on 31st March, 2016, MGL operated 188 CNG Stations, 19 mother
 stations, 142 online stations & 27 daughter booster stations.
 
 Further, as on 31st March 2016, MGL supplied PNG to over 8.62 Lac
 Domestic, 2866 commercial & 60 industrial consumers in its authorized
 geographical region. MGL is also catering to fuel requirement of around
 4.7 Lac CNG vehicles operating in the region.
 
 Your Company accorded approval to Mahanagar Gas Ltd.(MGL), to issue
 fully paid up unsecured Compulsory Convertible Debentures(CCDs) at par
 to Government of Maharashtra (GOM) due to which equity holding of GoM
 increased to 10% of total paid-up equity capital. Further, your Company
 also accorded approval to off-load the equity shares held by GAIL and
 BGL each up to 12.5% of MGL equity through the Initial Public
 Offering(IPO).  MGL Issue was opened on 21st June, 2016 and closed on
 23rd June, 2016.  Shares were allotted to investors at Rs.421/- per
 share. MGL equity shares were listed on NSE and BSE on 1st July, 2016 .
 Your Company equity holding in MGL post-IPO is 32.5% along with BG Asia
 Pacific Holdings Pte. Limited as an equal partner.
 
 - Maharashtra Natural Gas Limited (MNGL)
 
 MNGL was incorporated to implement CGD projects in and around Pune. As
 on 31st March, 2016, MNGL operated 36 CNG Stations including 5 mother
 stations, 14 online stations & 17 daughter stations.
 
 Further, as on 31st March 2016, MNGL supplied PNG to over 30598
 Domestic, 132 Commercial and 115 Industrial Consumers in its authorized
 geographical region. MNGL is also catering to fuel requirement of
 around 97307 CNG vehicles operating in the region. Your Company has
 22.5% stake along with BPCL as an equal partner.
 
 - Tripura Natural Gas Company Limited (TNGCL)
 
 TNGCL was incorporated to implement CGD projects in Agartala. As on
 March 31st, 2016, TNGCL operated 5 CNG stations including 3 mother
 stations and 2 daughter stations in these areas.
 
 Further, as on March 31st, 2016, TNGCL supplied PNG to over 22,615
 domestic, 322 commercial and 47 Industrial customers in its authorized
 geographical region. TNGCL also fulfils the fuel requirement of around
 8,063 CNG vehicles operating in the region. Your Company has 29% stake
 in this joint venture.
 
 - Vadodara Gas Limited (VGL)
 
 Shareholders approved transfer of your Company''s CNG stations and
 associated pipeline laid in city for connecting CNG Station in Vadodara
 to proposed Joint Venture Company of GAIL Gas Limited with Vadodara
 Mahanagar Seva Sadan (VMSS) in year 2011.
 
 Accordingly, VGL was incorporated as Joint Venture Company (JVC) of
 GAIL Gas Limited and VMSS for supply of Compressed Natural Gas (CNG)
 and Piped Natural Gas (PNG) in the city of Vadodara. Your Company has
 signed the Business Transfer Agreement (BTA) with VGL and transferred
 its assets to VGL. VGL is operating the CGD business we.f.  01.10.2014
 in Vadodara. Consequent upon transfer of assets, your Company has
 32.93% stake along with GAIL Gas Ltd. 17.07% stake and VMSS has 50%
 stake in VGL.
 
 VGL operates 9 CNG stations in Vadodara and dispensing more than 65,000
 kg/day CNG, The CNG network in the City of Vadodara includes 3- Mother
 Stations, 1- On-line Station and 5- Daughter Booster Stations and 13 Km
 Steel Pipelines.
 
 VGL also caters to the Piped Natural Gas (PNG) requirements of its
 consumers in domestic and Commercial Sectors. VGL supplies PNG to
 76,000 houses and 2,200 commercial in the city through a 750 km long PE
 Pipeline Distribution Grid and 07 District Pressure Regulating System.
 This network was originally built, owned and operated by VMSS. VGL
 developed new MDPE network of 204 Km in outskirt area which catered
 about 50000 houses and out of that @2400 connections regularised and
 others ongoing.
 
 PETROCHEMICALS
 
 - Brahmaputra Cracker and Polymer Limited (BCPL) (Subsidiary)
 
 Your Company has 70% equity stake in Brahmaputra Cracker and Polymer
 Limited (BCPL), with Oil India Limited (OIL), Numaligarh Refinery
 Limited (NRL) and the Government of Assam each having 10% equity share.
 BCPL has set up 2,80,000 TPA polymer plants in Assam.
 
 The petrochemical complex at Lepetkata was commissioned on January 02,
 2016 and dedicated to the nation by Hon''ble Prime Minister, Narendra
 Modi on February 05, 2016.
 
 As on 31st March, 2016, BCPL has produced around 3200 MT of polymers
 and 1000 MT of liquid hydrocarbons. Marketing Agreement was executed
 with BCPL during the year.
 
 - ONGC Petro-additions Limited (OPaL)
 
 OPaL is implementing a Greenfield petrochemical complex of 1.4 MMTPA
 Polymer capacity at Dahej, Gujarat. Your Company, with a 15.5% equity
 stake and an investment of Rs.994.95 crores, is a co-promoter of OPaL.
 Oil and Natural Gas Corporation Limited (ONGC) and Gujarat State
 Petroleum Corporation Limited (GSPC) are co-promotors of OPaL. The
 plant is likely to commence operations during FY 2016-17.
 
 OTHERS
 
 - TAPI Pipeline Company Limited (TPCL)
 
 Your Company is pursuing the Turkmenistan-Afghanistan-Pakistan-India
 (TAPI) Pipeline project to receive natural gas supply from the
 Galkynysh fields of Turkmenistan. TPCL was incorporated in November
 2014 in ''Isle of Man, to build, own and operate the proposed TAPI
 pipeline. In August 2015, Turkmengaz was endorsed as the Consortium
 Leader of the project by the TAPI entities. The Shareholders Agreement
 of TPCL was signed among the shareholders on December 13, 2015 while
 the Investment Agreement was signed on April 07, 2016. Your Company
 holds 5% equity in TPCL.
 
 - South-East Asia Gas Pipeline Company Limited (SEAGP)
 
 SEAGP was formed to transport natural gas from A1/A3 blocks in Myanmar
 to Myanmar-China border. As of January 2016, this pipeline is
 transporting nearly 16 MMSCMD of natural gas. Your Company has a 4.17%
 equity stake in SEAGP
 
 - Talcher Fertilizers Limited (Earlier known as Rashtriya Coal Gas
 Fertilizers Limited)
 
 A consortium comprising of your Company, CIL, RCF and FCIL was formed
 to revive FCIL, Talcher fertilizer unit in the Angul district of
 Orissa. The MoU was signed by the consortium partners on September 05,
 2013.  Subsequently, the joint venture company, Rashtriya Coal Gas
 Fertilizers Limited, was formed on November 13, 2015. Your Company
 holds 29.67% in this JVC.
 
 PARTICULARS OF LOANS, INVESTMENTS AND CORPORATE GUARANTEES
 
 Details of investments, loan and guarantee covered under Section 186 of
 the Companies Act, 2013 forms part of financial statement, as a
 separate section in the Annual Report FY 2015-16.
 
 IT ADVANCEMENTS AND FUNCTIONAL EXCELLENCE
 
 Digital technology is now a new disruptive force to reckon with in all
 realms of businesses. Your Company has aligned with the GoI''s Digital
 India initiative to launch Digital GAIL to integrate all processes and
 stakeholders with digital services. Digital GAIL aims to ensure that
 the Company''s services are made available electronically, efficiently,
 in shorter delivery time, while reducing paperwork.
 
 All SAP systems in your Company have been upgraded and so the Company
 is all set for the implementation of asset depreciation as per the IT
 Act, linear asset management, risk management, incident management,
 worker safety management, change management, and mobile apps for HR &
 Sales.
 
 Your Company has implemented Analytics Dashboards for the top
 management, using the latest SAP HANA-based Business Information
 Warehouse. These user-friendly dashboards provide drill-down facilities
 for analysing data and facilitate faster decision making. Your Company
 has also introduced mobile apps to provide anytime and anywhere access
 to employees.
 
 GAIL has also implemented the enhanced EHSM Module for incident and
 risk management. This ensures that any deviation in operational process
 is recorded and automated for proper monitoring. Accordingly,
 preventive actions for mitigation of risks are taken.
 
 Your company has also implemented a system for bilingual (Hindi and
 English) conversion of selective SAP output.
 
 To provide recognition to your Company data centres as secured data
 centres in the industry, these have been certified by international
 certification agency based on ISO 27001:2013 Information Security
 Management System (ISMS) Framework. Your company has successfully
 conducted Surveillance Audit in November 2015 through M/s BSI and
 retained the ISO 27001 certification for ensuring security of
 information and physical assets.
 
 Continuing journey towards functional excellence, your Company has
 taken various new initiatives during FY 2015-16 in the fields of
 Competence building, Asset Integrity Management, Standardization,
 Digital Applications / Processes, Employee Engagement, Knowledge
 Leverage, Archiving of Documents, Stakeholder Management etc.  Further,
 moving ahead in the endeavor to nurture symbiotic relationship with
 Vendors / Contractors / Suppliers, Vendor Coaching, Pre-Dispute
 Resolution Mechanism & health monitoring of Contracts have been
 implemented with an objective to minimize disputes during contract
 execution as well as to minimize post contract closure legal disputes /
 arbitrations.
 
 HEALTH, SAFETY AND ENVIRONMENT (HSE) MANAGEMENT
 
 - Corporate HSE Policy
 
 The HSE practices are primarily driven through a Corporate HSE policy,
 which is a statement of commitment of the management of your Company.
 The 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 all our employees is of paramount importance to the management, and
 find mention in the core organisational values of GAIL.  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 are important elements of the HSE
 management policy of your Company.
 
 - Safety Performance
 
 Safety performance is measured through HSE Score which is evaluated
 on the basis of performance of sites against important HSE Management
 System elements. Your Company achieved the HSE Score of 93% as against
 the MoU target of 90%.
 
 - Safety Training
 
 Your Company imparts regular and structured HSE training to its
 employees to upgrade their skills, knowledge and competence. It also
 conducts regular training sessions for contract workers, hydrocarbon
 tanker drivers and other workers to create awareness of the probable
 hazards in their work area and suggest safe work practices. Your
 Company also understands the importance of good health, and as a step
 in this direction, it organized the HSE workshop on Occupational
 Health for business heads and heads of fire and safety & medical
 services. Faculties from prestigious institutions are also invited
 regularly to share their insights on health-related issues. Your
 Company also holds technical seminars regularly, as a case point, it
 organized a seminar on Safe Operation of Cross-Country Pipeline for
 Oil and Gas Industry in Mumbai, in association with National Safety
 Council, Mumbai.
 
 - Safety Culture Transformation Through Behaviour Based Safety (BBS)
 Concept
 
 Your Company introduced and implemented the Behaviour-Based Safety
 (BBS) Concept to enhance safety of people and its installations. The
 implementation of this concept has helped to minimize at-risk behaviour
 at all work sites. In order to educate the employees on this concept,
 behaviour- based safety cum safety leadership workshops were organized
 at various sites of your Company during the year.
 
 - Safety Audits
 
 Your Company undertakes various safety audits to ensure implementation
 of the HSE Management System Guidelines and Emergency Preparedness.
 These audits are conducted by in-house teams and external safety
 auditors.
 
 - Occupational Health
 
 Your Company has implemented occupational hygiene measures and medical
 surveillance programmes to monitor and control the occupational health
 of its employees. It has also prepared guidelines on occupational
 health management. The Corporate Occupational Health Committee met four
 times during the year to monitor the occupational health programmes in
 your Company. To evaluate effectiveness of these programmes, a
 multi-disciplinary internal team conducted occupational health audit of
 process plants on all its work sites. The Company also conducts
 periodic medical examination of its employees at its various work
 centres, based on defined guidelines.
 
 SUSTAINABILITY INITIATIVES
 
 Your Company is in the process of publishing its sixth Sustainability
 Report for 2015-16 based on the Global Reporting Initiative (GRI) G4
 Guidelines.  Sustainability reporting has helped in measuring and
 monitoring your Company''s performance and moving beyond the mandatory
 requirements to ingrain sustainability within the organization in
 letter and spirit. It has served as an important management tool
 helping us to re-look at your Company''s systems, policies and
 procedures.
 
 Since inception, your Company has been guided by the principles of
 accountability and transparency. In 2011, your Company formally began
 its sustainability journey, taking small yet steady steps at a time.
 The Company''s Sustainable Development Committee, comprising the
 Functional Directors as its members and an independent director as the
 Chairman, regularly monitors these sustainability initiatives and their
 performance.
 
 The management of your Company understands that taking concrete actions
 in the right direction is equally important. GAIL is among the very few
 companies to have set voluntary targets through Sustainability
 Aspirations 2020 and transparently disclosed them in the public domain.
 Your Company has disclosed additional targets through the revised
 Sustainability Aspirations 2020 in the Sustainability Report. The
 targets are in the area of Specific Energy Reduction, Specific GHG
 Emission Reduction, Specific Fresh Water Consumption Reduction and Zero
 Waste Water Discharge.
 
 Your Company has strengthened its data management systems to capture
 credible and authentic data and information from its various sites. For
 the second time in a row, your Company has been acknowledged among
 CDP''s India Leaders 2015 and featured in the Climate Disclosure
 Leadership Index (CDLI). Your Company has emerged the highest ranking
 Company among the country''s Public Sector Undertakings, and third
 overall, in the CDLI 2016.
 
 Your Company believes that it is important to collaborate with industry
 leaders, associations and peers to address national and global
 sustainability challenges and work towards a common goal. Its focus has
 remained on collaborating with various external stakeholders such as
 TERI, CII, GRI, UNGC, FICCI and CDP among others, to gain from their
 knowledge and experience in the area of sustainability. Your Company
 conducted workshops in collaboration with organizations such GRI Focal
 Point India and CDP during the year.
 
 In line with the SEBI (Listing Obligations and Disclosure Requirements)
 Regulations, 2015 requirements, Business Responsibility Report (BRR)
 2015-16 is contained in a separate section in the Annual Report.
 
 VIGILANCE
 
 Corporate Vigilance department of your Company is ISO-9001:2008
 certified for having adopted Quality Management System in compliance
 with the requirements of ISO. Various initiatives such as Bill Watch
 System, e-tendering, e-payments etc. have already been implemented in
 the past for the benefit of vendors and suppliers to bring transparency
 in your Company''s systems and processes. A number of system
 improvements were effected in your Company during the year for
 effective utilization of its resources, which in turn would also help
 in preventing corruption and ensure all round good governance like:
 
 - Test check measurement by senior officers during bill payment »
 Constitution of Estimate Review Committee for tenders to improve
 estimation process.
 
 - Roll out of On-line Price bidding for service requisitions in
 Supplier Relationship 
 
 - Management (SRM) e-tendering system.
 
 The Vigilance Awareness Week-2015 was observed on the theme Preventive
 Vigilance as a tool of Good Governance at the Corporate Office and at
 all the work centres of your Company from 26th to 31st October, 2015.
 In order to create better awareness about corruption and its effects
 amongst the youth and college students, various competitions were
 organized. In order to spread awareness among your Company employees
 and related work force, various competitions involving Essay Writing,
 Slogan Writing, Poster Paintings, Online Quiz and debates were held
 during the week. Other events including banners/posters/painting
 display, March and rallies with NGOs were also organized at various
 work centres. A magazine JAGROOK containing CVC circulars, articles
 and case studies related to vigilance was also published.
 
 CAPABILITY BUILDING
 
 - Human Capital
 
 Your Company invests considerable time, efforts and resources to be the
 employer of choice and attract and retain the best available talent.
 GAIL carefully nurtures its intellectual capital and channelizes its
 resources to generate value. The Company''s Value Added per Employee
 initiative reflects its commitment to make optimal and productive use
 of the available resources and business opportunities. For the year
 under review, Value Added per Employee was Rs.167.74 lacs.
 
 - Leadership Development Program
 
 Building organizational and leadership capabilities is one of the top
 priorities of your Company. Under the Company''s Leadership Development
 Programme, the Senior Management Development Centre (SMDC) exercise was
 initiated for capability building of the senior level employees. As on
 date, the following employees were trained under this programme: Almost
 all the senior executives in the Chief Manager (E-6 Grade) and above;
 more than 95% executives who were promoted to the level of chief
 managers in APE 2015; and 316 senior managers (E-5 Grade).  Plans are
 underway to train more senior managers (E-5 Grade) in the near future.
 
 Development gaps of the participants were identified and a
 comprehensive Individual Development Plan (IDP) was drawn to fill this
 gap. Under this programme, customized training would be provided to the
 employees at premier business schools, and through e-learning courses
 and 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 Scheduled Castes, Scheduled Tribes, and Other
 Backward Classes amongst them in your Company as on 31st March, 2016
 have been given in Table below:
 
 Group       Employees on Roll    SC     ST     OBC     PWD
 
 A                 3102           485   197     563      41
 
 B                  558           110    63     104      11
 
 C                  598           103    23     185      35
 
 D                   58            17     6      14       1 
 
 C&MD
 DIRECTORS &       W 05             -     -       -       - 
 CVO
 
 Total             4321           715   289     866      88
 
 A total of 136 new employees joined your Company during the 2015-16.
 Total Manpower of the Company as on 31st March, 2016 stood at 4321
 (including Whole-time Directors & CVO) with 16.54% of its employees
 belonging to SC category, 6.68% to ST category, 20.04% to OBC category,
 7.96% to Minorities and 2.03% to PWDs category Your Company''s workforce
 comprised of 251 women employees as on 31st March, 2016.
 
 - Capability Development
 
 Your Company believes that its human resource is one of the most vital
 assets for achieving its vision, mission and objectives. Therefore,
 capability building and talent development of its human resources have
 been its key focus areas.
 
 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 been conferred
 with the prestigious Golden Peacock National Training Award for the
 year 2016.
 
 GTI organised the following programmes and initiatives during the
 period under review:
 
 - More than four man-days of training on average per employee.
 
 - Certification Training Programmes from NACE, ASME, OEMs and
 technology licensors for technical human resources to empower them with
 state-of-the-art expertise in the core areas of their function.
 
 - Specialised training programmes on new business areas, in-line with
 the Company''s Strategy 2020, including Business Modelling, Energy
 Trading, Hedging and Risk Management.
 
 - Individual Development Plan (IDP) for chief managers and above, based
 on the developement areas identified during the SMDC exercise.
 
 - The participants of this IDP plan were provided competency-based
 books and e-learning modules prepared by Harvard Manage Mentor (HMM).
 They also undertook customised management development programmes
 through IIM Bengaluru and Kolkata.
 
 - Leading external management experts were invited to provide
 customised functional development programmes for senior employees.
 
 - Mentorship programme for all new executives » Healing with nutrition
 programme to provide health tips and reduce stress levels.
 
 - Awareness programmes on Sustainable Development on all sites.
 
 More than 60% of employees have already participated in these
 programmes.
 
 - Knowledge sharing seminar to motivate employees to share their
 experiences/ expertize with other employees.
 
 - In-house business quizzes and business simulations to update
 employees with the latest developments in their core business areas.
 » One year access to executives of E&P Department to International
 Petroleum Industry Multimedia System (IPIMS) e-learning module
 developed by International Human Resource Development Corporation
 (IHRDC).
 
 As part of its commitment to develop skills and capabilities across the
 hydrocarbon industry, GTI also successfully organised training
 programmes for employees of several other organisations including
 RGPPL, HPCL, BCPL, IGL, MGL, MNGL, GSPL, and HMEL.
 
 Your Company also plays a proactive role to support the National Skill
 Development Mission. It is the founder member of Hydrocarbon Sector
 Skill Council (HSSC) and provides skill-based training to create a pool
 of skilled manpower for CGD network and mid-stream hydrocarbon
 industry.
 
 - Official Language
 
 Your Company goes the extra mile to propagate and implement the
 Official Language Policy of the Union of India.
 
 The Official Language Implementation Committees at the corporate and
 work centre level held quarterly meetings to monitor and review the
 progress of achieving the targets fixed in the Annual Programme issued
 by the Govt. of India.
 
 Hindi workshops/trainings are organized on regular basis at GTI, Jaipur
 and Noida and at other work centres. Hindi computer training sessions
 are integral part of these programmes. During the year 2015-16, 1,335
 employees were provided formal training through 67 workshops. All
 computers in the Company have Unicode Hindi fonts with transliteration
 key-board typing facility
 
 Hindi Fortnight was celebrated from September 14 to 28, 2015 to promote
 the official language.
 
 Every Monday/first working day of the month is observed as Hindi Diwas
 wherein all employees are encouraged to express themselves in the
 language.
 
 Your Company now uses a special software to generate all formal
 communication including pay slips, CPF card, pension card, promotion
 order, transfer order, reliving order in both Hindi and English. GAIL
 is one of the few PSUs to implement this facility
 
 Names of all employees in official e-mail IDs are both in English and
 Hindi.  The Company terminology has been standardized and the list has
 been circulated amongst all employees. GAILs web site and Intranet also
 follow the bilingual format.
 
 Your Company also publishes the Hindi magazine Rajbhasha Sahyog to
 promote the language. Motivational and inspirational books in Hindi
 were distributed on the occasion of World Hindi Day,
 
 The 16th Rajbhasha Sammelan was organised on January 21 and 22, 2016 to
 promote the use of Hindi and review the progress made in the
 implementation of the official language in the Company.
 
 The First Sub-Committee of Committee of Parliament on Official Language
 inspected the Jamnagar, Agartala and Ramgarh offices to review the
 steps undertaken to promote the official language and were appreciative
 of our efforts.
 
 A meeting of Hindi Salahkar Samiti was organised on February 8, 2016 in
 Puri by the MoP&NG under the Chairmanship of Minister of State for
 Petroleum & Natural Gas (I/C). GAIL too participated and highlighted
 its efforts to promote the language.
 
 - Sexual Harassment of Women at Workplace
 
 Your Company has in place ''Policy on Prevention, Prohibition and
 Redressal of Sexual Harassment of Women at Workplace'' in line with the
 requirements of the Sexual Harassment of Women at the Workplace
 (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints
 Committee (ICC) has been set up to redress complaints received
 regarding sexual harassment
 
 During the year 2015-16, two sexual harassment complaints received and
 the same were disposed off.
 
 INNOVATION, RESEARCH AND DEVELOPMENT (R&D)
 
 Your Company is committed to address the challenges of ever changing
 business scenario through Innovation. In this regard efforts are made
 to encourage Innovation and creativity of employees through a
 Suggestion Scheme. This Scheme helps to promote organization-wide idea
 generation for incremental innovation. The employees are motivated to
 suggest improvements in their respective areas of work. The suggestions
 so received are evaluated in a time bound manner for implementation and
 CMD trophy is awarded to the best Suggestion.
 
 Your Company is aggressively pursuing many R&D projects in its
 identified thrust areas with a focus on developing high-impact
 innovative technologies to help pursue the existing business in a more
 optimum and sustainable manner. To improve the pipeline maintenance
 practices a R&D project to utilize Satellite imagery for monitoring
 Pipeline RoU was conceptualized. This project involved geo-mapping of
 the Pipeline route and finalizing the sequencing of taking Satellite
 images to meet the requirement of monthly monitoring. A change
 detection software was also developed to identify encroachments through
 analysis of sequential images. A Bhuvan-GAIL Portal was launched for
 monitoring the RoU of 610 Km stretch of Dahej-Vijaipur pipeline through
 this technology. Success of this pilot Project shall enable scaling-up
 of this technology to cover the entire Pipeline network besides
 developing additional functionalities to monitor activities like
 Project execution of new Pipeline projects.
 
 Your Company had successfully demonstrated the capture of Land Fill Gas
 (LFG) site in an open and active landfill site at Ghazipur in Delhi. A
 part of this low-quality LFG is now being partially upgraded and
 utilized to generate Power through a 30 KW Micro Turbine. This Project
 demonstrates our commitment towards sustainable utilization of waste
 energy and climate risk mitigation through reduction of carbon
 footprint.
 
 The Wireless Sensor Network (WSN) technology is known for its
 resilience and is more reliable than conventional wired networks.
 Wireless Sensors were developed for continuous monitoring of Pipeline
 parametres and are presently being pilot tested for transmitting and
 logging data of few customers at Bhiwadi terminal. Various new
 applications of polymer grades such as anti-microbial sutures for
 healthcare applications; Nano- clay based additives to enhance polymer
 properties etc. are also being developed.
 
 The other important area for Research is hydrogen which is an ultra-
 clean fuel. A Novel carbon nano-composite material was developed that
 could store up to 6.7 wt% of hydrogen exceeding the 6% target set by
 Department of Energy (DoE), USA. Further evaluation is underway to
 utilize this material in a compact storage device to provide Hydrogen
 to a Polymer Electrolyte Membrane (PEM) Fuel Cell.
 
 Your Company has a judicious mix of various Basic/Applied/Pilot
 projects encompassing the Natural Gas value chain in its R&D portfolio.
 In addition, few projects are also being pursued in upcoming areas like
 Solar, Fuel Cells, Gas Hydrates etc. These R&D projects are being
 pursued in association with reputed research organizations /
 institutes. Few Developmental Projects to improve efficiency and safety
 of existing operations and to conserve the resources by utilizing
 better technologies are also being implemented at process plants.
 
 TOTAL QUALITY MANAGEMENT
 
 Your Company endeavors for continual and sustainable improvement
 through implementation of quality practices, innovation and
 standardization. Your Company continues to implement various Quality
 Circle projects through engagement of Company employees, resulting into
 innovation in work places and leading to enhancement in productivity.
 Your Company has achieved a Customer Satisfaction level of 90% and
 committed to improve it. Your Company works for the satisfaction of
 customers and stakeholders. Your Company has implemented Integrated
 Management System and Energy Management System in various pipeline
 system and process units. Your Company is committed to sustainable
 development.
 
 PROCUREMENT FROM MICRO AND SMALL ENTERPRISES (MSEs)
 
 The Government of India has notified a Public Procurement Policy for
 MSEs, Order 2012. In terms of said policy, out of the total eligible
 value of annual procurement of approx. Rs.2,016 Crores towards goods
 produced and services rendered by MSEs (including MSEs owned by SC/ST
 Entrepreneur) during the FY 2015-16, the value of total procurement
 made from MSEs is Rs.435.34 Crores which is approx. 21.59%. of 2,016
 Crores
 
 MOU PERFORMANCE
 
 A Memorandum of Understanding (MoU) is signed every year between your
 Company and its administrative ministry i.e. MoP&NG, through which
 performance targets for the year are set. MoU for the year 2015-16 was
 signed between Chairman & Managing Director and Secretary (P&NG),
 Government of India on 31st March, 2015.
 
 The thrust while fixing MoU targets was more towards improving
 performance on critical aspects of the Company which include Key
 Financial parameters, Gas Marketing, Gas Transmission, Project
 Implementation, Capital Expenditure, Liquid Hydrocarbon & Polymer
 Production etc. Significant thrust has also been given on Research &
 Development Projects and Operating Efficiency parameters.
 
 Your Company has been consistently achieving ''Excellent'' MoU rating
 since the inception of MoU system i.e. from 1989-90 to 2013-14.
 However, because of unprecedented fall in crude oil prices from $ 140 /
 barrel to ~ $ 30 - 40 in 2014-15 leading to fall in LHC & Polymer
 prices, negative price differentials between Spot and long term
 contracted R-LNG prices etc., there were gaps between MoU targets and
 actual performance of your Company in FY 2014-15. As a result, your
 Company achieved ''Very Good'' MoU rating for the year 2014-15.
 
 Evaluation of MoU 2015-16 is under progress and the final evaluated MoU
 score and rating is expected to be announced in December 2016.
 
 LAURELS
 
 - Corporate
 
 - Emerged as the highest ranking PSU in Carbon Disclosure Leadership
 Index securing 98 out of maximum 100, an increase of 12 points in one
 year.
 
 - Released its fifth Sustainability Report becoming the first PSU to
 avail Content Index certification by GRI, Amsterdam.
 
 - Dun & Bradstreet Award 2015 in the category Gas - Processing,
 Transmission and Marketing.
 
 - Achieved the 5th rank in the Platts Top 250 Companies in the Asia-
 Pacific in the Gas Utilities category » Environmental Sustainability
 - Company of the year for 2015. The special commendation award has
 been conferred to GAIL for special efforts towards Environmental
 Sustainability and Climate Change.
 
 - Health, Safety & Environment (HSE)
 
 With its contu iued focus on HSE across its installations, your Company
 has won following awards during the year 2015-16:
 
 - OISD awards for Cross Country Pipeline-LPG & Gas Pipeline: GAIL- HVJ
 Pipeline and Most Consistent Safety Performer-gas processing Plant:
 GAIL GPU, Gandhar » Maharashtra region Pipeline system, Mumbai
 received Safety Innovation Award 2015 from the institution of
 Engineers India, New Delhi.
 
 - NCR received British Safety Council International Safety award, U.K
 -2016.
 
 - GPU Gandhar plant won Gujarat State Safety award 2014 from the
 Gujarat Safety Council of India » GPU Gandhar plant won Suraksha
 Puraskar (Bronze Trophy)-2015 from National Safety Council of India.
 
 - GPU Usar received Certificate of Appreciation for National Safety
 Awards
 
 - GAIL Vaghodia received Golden Peacock Occupational Health & Safety
 Award, 2015, by the Institute of Directors, New Delhi.
 
 - GPU Gandhar received British Safety Council International Safety
 award, U.K .
 
 - HVJ Compressor Station, Vijaipur (M.P) awarded prestigious SURAKSHA
 PURASKAR by National Safety Council, under Group A in manufacturing
 sector.
 
 RIGHT TO INFORMATION (RTI)
 
 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.
 
 MANAGEMENT DISCUSSION AND ANALYSIS
 
 In terms of the Regulation 34 of SEBI (Listing Obligations and
 Disclosure Requirements) Regulations, 2015, the detailed Management''s
 Discussion and Analysis forms a part of this report at Annexure- A.
 
 CORPORATE GOVERNANCE
 
 Your Company believes that good corporate governance is critical in
 establishing a positive organizational culture. It is evident by
 responsibility, accountability, consistency, fairness and transparency
 towards our stakeholders. Pursuant to the SEBI (Listing Obligations and
 Disclosure Requirements) Regulations, 2015 and DPE guidelines on
 Corporate Governance, a report on Corporate Governance forms part of
 this Report at Annexure- B.
 
 The details of the meetings of the Board, Company''s policy on
 Directors'' appointment and their remuneration, details of establishment
 of whistle blower mechanism and other matters, etc. forms part of
 report on Corporate Governance.
 
 There are no significant and material orders passed by the regulators
 or Courts or tribunals impacting the going concern status and Company''s
 operations in future.
 
 The statutory auditors of the Company have examined and certified your
 Company''s compliance with respect to conditions enumerated in SEBI
 (LODR) Regulations, 2015 and DPE guidelines on Corporate Governance.
 The certificate forms a part of this Report at Annexure- C.
 
 AUDITORS
 
 - Statutory Auditors
 
 The statutory auditor of your Company is appointed by Comptroller &
 Auditor General of India (CAG). M/s G.S. Mathur & Co., Chartered
 Accountants, New Delhi and M/s O P Bagla & Co., Chartered Accountants,
 New Delhi were appointed as Joint Statutory Auditors of your Company
 for the FY 2015-16.
 
 Review and Comments of CAG, if any, on the Company''s Financial
 Statements for the financial year ending 31st March 2016, forms part of
 Financial Statement. Notes on Financial Statement referred to in the
 Auditors'' Report are self-explanatory and, therefore, do not call for
 any further comment.
 
 - Cost Auditors
 
 Your Company has appointed M/s Ramanath Iyer & Co., New Delhi for
 Northern Region , M/s Bandyopadhyaya Bhaumik & Co., Kolkata for
 Northern and Eastern Region , M/s A C Dutta & Co., Kolkata for Southern
 Region, M/s Musib & Company, Mumbai for Western Region Part-I, M/s N.D
 Birla & Co., Ahmedabad for Western Region Part-II, M/s Sanjay Gupta &
 Associates, New Delhi for Central Region as cost auditors for FY
 2015-16.  M/s Ramanath Iyer & Co. is the lead cost auditor.
 
 Cost audit reports for the financial year ended 31st March, 2015 was
 filed to Registrar of Companies on 14th October, 2015.
 
 - Internal Auditor
 
 Your Company has an in-house Internal Audit Department, which is headed
 by Executive Director.
 
 - Secretarial Auditor
 
 Your Company has appointed M/s Agarwal S. & Associates as secretarial
 auditors for 2015-16. Secretarial Audit Report confirming compliance by
 Practicing Company Secretary to the applicable provisions of the
 Companies Act, 2013, SEBI (LODR) Regulations, 2015 and other applicable
 laws, forms part of this Report at Annexure- D.
 
 The observations made by Secretarial Auditor in his Audit report are as
 under:
 
 (a) Proviso to Section 149(1) read with Rule 3 of the Companies
 (Appointment and Qualification of Directors) Rules, 2014 w.r.t.
 appointment of at least one woman Director on the Board of the Company.
 
 (b) Regulation 17 (1) of Securities Exchange Board of India (Listing
 Obligation & Disclosure Requirements) Regulations, 2015 (erstwhile
 Clause 49 (II) (A) & (B) of the Listing Agreement) and Clause 3.1.4 of
 the DPE Guidelines on Corporate Governance for Central Public Sector
 Enterprises w.r.t. composition of the Board of Directors of the
 Company.
 
 (c) Non-compliance of Section 149(8) read with Schedule IV (VIII) of
 Companies Act, 2013 and Regulation 17 (10) & 25 (4) of SEBI (Listing
 Obligations & Disclosure Requirements) Regulations, 2015, the Company
 has not been carried out the performance evaluation of the directors.
 
 Explanations on observations made by Secretarial Auditor in seriatim
 are as under:
 
 (a) As on 31st March 2016, there was no woman Director on the Board of
 the Company However, during the year, there was a Woman Director on the
 Board of the Company from 21st May, 2015 to 2nd January, 2016.
 
 (b) As on 31st March 2016, your Company''s Board comprised of four
 whole-time Directors including CMD, two Government nominee Directors
 and three Independent Directors.
 
 Your Company is a Government Company under the administrative control
 of the Ministry of Petroleum and Natural Gas, Government of India, the
 Directors are nominated/appointed by the Government of India. The
 Company is continuously pursuing with the Government of India for the
 appointment of requisite number of Independent Directors on their Board
 in order to comply with the provisions of the SEBI (Listing Obligations
 & Disclosure Requirements) Regulations, 2015, DPE Guidelines & the
 Companies Act, 2013.
 
 (c) Your Company is a Government Company, appointment/ nomination of
 all the Directors is being done by the President of India, through the
 MoP&NG and performance evaluation of individual Directors including
 Independent Directors is to be done by Government of India being
 appointing authority
 
 CORPORATE SOCIAL RESPONSIBILITY
 
 Your Company believes that Corporate Social Responsibility (CSR) plays
 a major role in the development of any country. Therefore, it has made
 CSR an integral part of its ethos and culture. To amplify our outreach
 efforts, GAIL has incurred an expenditure of 2.3% of the average net
 profit of the preceding three years on CSR projects/activities of
 2015-16 (I18.64 crores) against the stipulated 2% spend (Rs.102.34
 crores). The overall spends (Rs.160.56 crores) amount to 3.14% of the
 average net profit of the preceding three financial years.
 
 Annual Report on CSR activities as required under Rule 8 of the
 Companies (Corporate Social Responsibility Policy) Rules, 2014 read
 with section 134(3) and 135(2) of the Companies Act, 2013 is placed at
 Annexure E.
 
 ENERGY CONSERVATION, TECHNOLOGY ABSORPTION
 
 As per requirement of 134 (3)(m) of the Companies Act, 2013 read with
 Ru le 8(2) of the Companies (Accounts) Rules, 2014, details of
 conservation of energy and technology absorption forms part of this
 report at Annexure- F.
 
 PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
 
 As per requirement of 134 (3) (h) of the Companies Act, 2013 read with
 Rule 8(2) of the Companies (Accounts) Rules, 2014 particulars of
 contracts or arrangements with related parties as referred in section
 188(1) of the Companies Act, 2013 in the prescribed form AOC-2 is
 placed at Annexure-G.
 
 Your Company has formulated the policy on dealing with Related Party
 Transactions and the same is hosted on your Company''s website at
 http://
 www.gailonline.com/final_site/pdf/GAIL_Related_Party_Transaction_
 Policy pdf.
 
 PARTICULARS OF EMPLOYEES
 
 As per the provisions of section 197(12) of the Companies Act, 2013
 read with the Rule 5 of the Companies (Appointment and Remuneration of
 Managerial Personnel) Rules, 2014, every listed Company is required to
 disclose the ratio of the remuneration of each director to the median
 employee''s remuneration etc. in the Directors'' Report.
 
 However, as per notification dated 5th June, 2015 issued by the
 Ministry of Corporate Affairs, Government of India, Government
 Companies are exempted from complying with provisions of section 197 of
 the Companies Act, 2013. Your Company is a Government Company,
 therefore, such particulars have not been included as part of
 Directors'' Report.
 
 EXTRACT OF ANNUAL RETURN
 
 Extract of Annual Return forms part of this Report at Annexure-H.
 
 ISSUE OF SHARES AND FIXED DEPOSITS
 
 Your Company has neither issued any shares nor accepted any fixed
 deposits during the financial year 2015-16 and, as such, no amount of
 principal or interest was outstanding as of the balance sheet date.
 
 FOREIGN EXCHANGE EARNINGS AND OUTGO
 
 During the year, foreign exchange earnings were Rs.866.54 crores and
 foreign currency outgo was Rs.2,558.71 crores.
 
 KEY MANAGERIAL PERSONNEL AND DIRECTORS
 
 During the period, the following ceased to be Key Managerial Personnel
 (KMP) on the Board of your Company:
 
 - Shri Prabhat Singh, Director (Marketing) resigned w.e.f. 14th
 September, 2015 » Shri N.K. Nagpal, Company Secretary w.e.f. 26th May,
 2016
 
 Shri A.K. Jha has been appointed as Company Secretary of the Company
 w.e.f. 26th May, 2016.
 
 During the period, the following ceased to be Directors on the Board of
 your Company:
 
 - Smt. Anuradha Sharma Chagti, Government Nominee Director w.e.f.  2nd
 January, 2016
 
 The following were appointed on the Board of your Company as Director:
 
 - Shri S.K. Srivastava, Independent Director w.e.f. 20th November, 2015
 » Shri D.J. Pandian, Independent Director w.e.f. 20th November, 2015
 and resigned from the Company w.e.f. 31st March, 2016 » Shri Anupam
 Kulshreshtha , Independent Director w.e.f. 28th November, 2015 (from
 the date of obtaining DIN)
 
 - Shri Sanjay Tandon , Independent Director w.e.f. 20th November, 2015
 
 - Shri Anant Kumar Singh, Government Nominee Director w.e.f. 2nd
 January, 2016
 
 The Board placed on record its deep appreciation for the valuable
 services rendered by outgoing Directors/KMP during their association
 with your Company,
 
 CODE OF CONDUCT
 
 Pursuant to the requirements of SEBI (LODR) Regulations, 2015 the Board
 Members and Senior Management Personnel have affirmed compliance with
 the Code of Conduct for the financial year ending 31st March, 2016.
 
 PERFORMANCE EVALUATION
 
 As per the provisions of section 134(3)(p) of the Companies Act, 2013
 for every listed Company, a statement indicating the manner in which
 formal annual evaluation has been made by the Board of its own
 performance and that of its committees and individual directors should
 form part of the Directors'' Report.
 
 However, as per notification dated 5th June, 2015 issued by the
 Ministry of Corporate Affairs, Government of India, Government
 Companies are exempted from complying with provisions of section
 134(3)(p) of the Companies Act, 2013. Your Company is a Government
 Company and the appointment, tenure, performance evaluation etc. of
 Directors is done by Government of India, therefore, such particulars
 have not been included as part of Directors'' Report. Remuneration of
 CMD, Whole-time Directors and its employees is determined by Government
 of India. As per requirement of SEBI (LODR) Regulations, 2015, an
 evaluation criterion for the Board is being formulated.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 Yours Directors confirm that:
 
 i) In the preparation of the annual accounts for the financial year
 ending 31st March, 2016, the applicable accounting standards have been
 followed, alongwith proper explanation relating to material departures;
 
 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
 review;
 
 iii) taken proper and sufficient care for the maintenance of adequate
 accounting records in accordance with the provisions of the Companies
 Act, 2013, 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, 2016 on a going concern basis;
 
 v) had devised proper systems to ensure compliance with the provisions
 of all applicable laws and such systems were adequate and operating
 effectively and
 
 vi) laid down internal financial controls to be followed by the Company
 and that such internal financial controls are adequate and were
 operating effectively.
 
 ACKNOWLEDGMENT
 
 Your Directors express their gratitude for help, guidance and support
 received from the Government of India, especially the Ministry of
 Petroleum and Natural Gas, various state governments, regulatory and
 statutory authorities.
 
 Your Directors acknowledge wise counsel received from Statutory
 Auditors and CAG and are grateful for their consistent support and
 cooperation.
 
 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
 
                                                        (B.C. Tripathi) 
 
                                          Chairman & Managing Director
 
 Place: New Delhi 
 
 Dated: August 19, 2016
Source : Dion Global Solutions Limited
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