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GAIL India

BSE: 532155|NSE: GAIL|ISIN: INE129A01019|SECTOR: Oil Drilling And Exploration
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« Mar 14
Notes to Accounts Year End : Mar '15
1.  Contingent Liabilities and Commitments (to the extent not provided
 for):-
 
 I.  Contingent Liability
 
 (a). Claims against the Company not acknowledged as debts: Rs.8,202.58
 crore (Previous Year:Rs.7,596.6l crore), which include:
 
 (i) Legal cases for claim of Rs.1,709.68 crore (Previous Year:
 Rs.1,649.56 crore) by trade payable on account of liquidated
 damages/price reduction schedule and natural gas price differential
 etc, and by customers for natural gas transmission charges etc.
 
 (ii) Income tax assessments up to the Assessment Year 2012-13 have been
 completed and a demand (net of provision) of Rs.1,335.95 crore relating
 to the assessment years 1996-97 to 2015-16 (Previous Year Rs.1,337.15
 crore relating to the assessment years 1996-97 to 2011-12) raised by
 the Income Tax Department on account of certain disallowances /
 additions, has been disputed by the Company, as it has been advised
 that the demand is likely to be deleted or may be reduced substantially
 by the appellate authorities. The Company has filed appeals with the
 appropriate appellate authorities against all the assessment years.
 However, to avoid coercive action by the Department, Rs.1,256.08 crore
 (Previous Year: Rs.1,298.13 crore) has already been paid pending
 decision by the appellate authorities. Further, Department has also
 filed appeals amounting to Rs.170.05 crore (including interest)
 (Previous Year: Rs.100.32 crore) before Income Tax Appellate Tribunal
 (ITAT), Delhi against the relief granted by CIT (A) in favour of the
 Company.
 
 (iii) Rs.4,753-53 Crore (Previous Year: Rs.4,238.36 Crore) relating to
 disputed tax demand towards Custom Duty, Excise duty. Sales tax, VAT,
 Entry tax, Service Tax etc.
 
 (b) (i) The Company has issued Corporate Guarantees for Rs.1,974.60
 crore (Previous Year:Rs.1,919.99 crore) on behalf of Subsidiaries for
 raising loan(s). The amount of loans outstanding under these Corporate
 Guarantees are Rs.1,073.09 crore (Previous Year: Rs.1,555-37crore).
 
 (ii) Share in Contingent Liabilities of Joint Ventures based on their
 audited/unaudited financial statements Rs.824.01 crore (Previous
 Year:Rs.980.49crore).
 
 II.  Commitments:-
 
 (a) Estimated amount of contracts remaining to be executed on capital
 account and not provided for: Rs.2,573.42 crore (Previous Year:
 Rs.2,658.21 crore).
 
 (b) Share in estimated amount of contracts remaining to be executed on
 capital account and not provided for based on audited/unaudited
 financial statement of Joint Venture. Rs.588.62 crore (Previous Year:
 Rs.842.47 crore).
 
 (c) Other Commitments:-
 
 (i) As at 31st March 2015, the Company has commitment of Rs.546.49
 crore (Previous Year: Rs.772.l6 crore) towards further investment and
 disbursement of loan in the Joint Ventures and Associates.
 
 (ii) As at 31st March 2015, the Company has commitment of Rs.1,316.75
 crore (Previous Year: Rs.140.93 crore) towards further investment in the
 Subsidiaries.
 
 (iii) As at 31st March 2015, the Company has commitment of Rs.134.15
 crore (Previous Year: Rs.147.58 crore) towards further investment in
 the entities other than Joint Ventures, Associates and Subsidiaries.
 
 (iv) Commitments made by the Company towards the minimum work programme
 in respect of Jointly Controlled Assets has been disclosed in Note
 53(b)(v).
 
 2.  Sales Tax Department has raised a demand of Rs.3,449.18 crore
 (Previous Year: Rs.3,449.l8 crore) and interest thereon Rs.1,513.04
 crore (Previous Year: Rs.1,513.04 crore) in respect of Hazira unit in
 Gujarat State under the Central Sales Tax Acttreating the transfer of
 natural gas from the State of Gujarat to other states during the period
 from April 1994 to March 2001 as inter-state sales. Based on the
 decision of Supreme Court in the writ special writ petition, the
 Tribunal gave instructions for reassessment in accordance with law,
 considering inter-state transfer as branch transfer. The Sales Tax
 Department had filed rectification application under section 72 of the
 Gujarat Sales Tax Act, 1969 with the Tribunal which has dismissed the
 same. Thereafter, the Sales Tax Department has filed petition in
 Hon''ble High Court Gujarat against the order of the Tribunal and the
 same is pending. In the opinion of the management, there is a remote
 possibility of crystallizing this liability.
 
 3.  (a) Freehold Land acquired valuing Rs.16.78 crore (Previous Year:
 Rs.19.92 crore) and Leasehold Land acquired valuing Rs.78.75 crore
 (Previous Year : Rs.7950 crore) are valued / capitalized on Provisional
 basis.
 
 (b) Title deeds for freehold land valuing Rs.10.67 crore (Previous
 Year: Rs.14.21 crore) and leasehold land valuing Rs.25.52 crore
 (Previous Year:Rs.25.55 crore) are pending execution.
 
 (c) Title Deeds in respect of ten residential flats at A siad Village,
 New Delhi, valuing Rs.1.67 crore (Previous Year: Rs.1.17 crore) are
 still in the name of ONGCL. Concerned authorities are being pursued for
 getting the same transferred in the name of the Company.
 
 (d) Net Block for Building includes an amount of Rs.0.52 Crore
 (Previous Year Rs.0.52 Crore (earmarked for disposal but in use.
 
 (e) Freehold land valuing Rs.0.63 crore (previous year Rs.0.63 crore)
 and leasehold land valuing Rs.0.80 crore (previous year Rs.0.80 crore),
 registered in the name of the Company, does not belong to it and hence
 not capitalized.
 
 (f) The Company has deposited Rs.0.09 crore (previous year Rs.0.og
 crore) for acquisition of freehold land through Govt, process and the
 allotment of same is pending.
 
 4.  Disclosure as per Accounting Standard (AS) 5 on Net Profit or
 Loss for the period. Prior Period Items and Changes in Accounting
 Policies
 
 (a) Effective 1st April 2014, the Company has revised the useful life
 of fixed assets based on Schedule II to the Companies Act, 2013 for the
 purposes of providing depreciation on fixed assets.  Accordingly, the
 umamortised carrying value is being depreciated/amortised over the
 revised / remaining useful life.  The written down value of fixed
 assets whose life has expired as at 1st April 2014has been adjusted net
 of residual value and deferred tax in the opening balance of statement
 of profit and loss account amounting to Rs.87.54 crore. Thus,
 depreciation and amortization expenses for the year decreased
 byRs.263.03crore and accordingly profit before tax for the year
 increased by corresponding amount.
 
 (b) Effective 1st April 2014, the Company has revised useful life of
 Furniture Electrical Equipments and Mobile Phones provided to employees
 under hire purchase scheme from the existing 6.4 (@15%p.a) years to 7
 years in respect furniture and electrical equipment and from existing
 6.4 (@15%p.a) years to 2 years for mobile phones. The change in
 Accounting Policy has resulted decrease in depreciation / amortization
 expenses amounting Rs.0.39 crore and thus, profit for the year
 increased by Rs.0.39 crore.
 
 (c) In terms of the Guidance Note issued by the Institute of Chartered
 Accountants of India (ICAI) in respect of Corporate Social
 Responsibility (CSR) activity, the Company has provided liability
 incurred in respect of its contractual obligation to the extent of
 activities completed during the year, as against earlier of booking of
 such expenditure on payment basis. Accordingly, during the year, the
 Company has booked liability of Rs.21.00 crore on accrual basis towards
 CSR Expenses for which profit for the year has decreased by the same
 amount.
 
 5.  Disclosure under CSR expenses for Financial Year2014-15asfollows:
 
 (i) The gross amount required to be spent by the Company is Rs.118.76
 crore and the amount spent is as under:
 
 6. (a) The balance retention from Panna Mukta Tapti (PMT) JV
 consortium amounting to Rs.30.50 crore (Previous Year: Rs.28.06 crore)
 includes interest accrued but not due amounting to Rs.1.09 crore
 (Previous Year: Rs.2.29 crore) on short term deposits. This interest
 income does not belong to the Company and hence not accounted as
 income.
 
 (b) Liability on account of Gas Pool Money amounting to Rs.816.81 crore
 (Previous Year: Rs.1,03571 crore) includes interest accrued but not due
 amounting to Rs.34.27 crore (Previous Year: Rs.28.99 crore) on short
 term deposits. This interest does not belong to the Company and hence
 not accounted as income.
 
 (c) The amount in Gas Pool Money (Provisional) account shown under
 Other Long Term Liabilities amounting to Rs.1,998.33 crore (Previous
 Year: Rs.652.20 crore) will be invested as and when said amount is
 received from the customers.
 
 (d) Liability on account of Pipeline Overrun and Imbalance Charges
 amounting to Rs.80.38 crore (Previous Year: Rs.70.62 crore) includes
 interest accrued but not due amounting to Rs.3.11 crore (Previous Year:
 Rs.5.62 crore) on short term deposits. This interest does not belong to
 the Company and hence not accounted as income.
 
 7.  The Company has entered into Gas Transportation Agreements (GTAs)
 in the year 2010, with three shippers in Kashipur region, for
 transportation of gas. As per GTAs, Capacity Tranche (CT) date was
 fixed as 1st June 2011,15th December 2011 and 25th December 2011 for
 different shippers, which was revised to 1st June 2012. The CT
 completion date was informed to the shippers on 21st October 2014. An
 amount of Rs.562.61 crore, for the period 1st June 2012 to 21st October
 2014, was not invoiced due to uncertainty of its realisation as per
 legal opinion obtained and in compliance to accounting standards. GAIL
 started invoicing for Ship or Pay charges with effect from 21st October
 2014 (date of intimation of CT to the customers). Accordingly, an
 amount of Rs.103.86 crore (including Service Tax of Rs.11.42 crore) was
 invoiced for the period 22nd October 2014 to 31st March 2015, against
 which the Company is holding Bank Guarantee and Security Deposit
 amounting to Rs.69.99 crore. The customers have, inter alia, disputed
 the invoices and have taken up the matter with PNGRB who in-turn
 directed the Company to maintain the status quo. Pending the final
 disposal of the matter by the PNGRB, an amount of Rs.103.86 crore has
 been included in Sundry Debtors with corresponding provision of
 Rs.33.87 crore, i.e., the amount over and above the Bank guarantee and
 Security Deposit.
 
 8.  Disclosure as per AS 11 on The effect of changes in Foreign
 Exchange Rates
 
 (i) The amount of exchange difference (net) recognized in the Statement
 of Profit & Loss is Rs.50.97 crore (Previous Year: Rs.25.21 crore).
 
 (ii) The amount of exchange difference debited to the carrying amount
 of fixed assets is Rs.198.60 crore (Previous Year: Rs.502.49 crore).
 
 9.  The Company has a joint venture agreement along with NTPC, MSEB
 and other Financial Institutions in Ratnagiri Gas and Power Private
 Limited (RGPPL) with an equity investment of Rs.97431 crore, and the
 Company''s share of equity as on 31st March 2015 (after conversion of
 partial loans / dues to financial institutions during FY 2014-15), is
 28.91%. As per the latest available audited financial statements there
 are losses in the books of RGPPL, because of non-operation of power
 block and non-availability of domestic gas, indicating existence of
 uncertainty and doubt on the ability of the RGPPL to continue as going
 concern. However, the management of the Company is of the opinion that
 the investment of the Company being strategic in nature, with future
 turnaround plans, there is no permanent diminution in the value of its
 investment as on 31st March 2015, requiring any provision at this
 stage.
 
 10. The required disclosure under the Revised AS15 is given as below:
 
 (i) Superannuation Benefit Fund (Defined Contribution Fund)
 
 The Company has paid for an amount of Rs.59.22 crore (Previous Year:
 Rs.52.07 crore) towards contribution to Superannuation Benefit Fund
 Trust and charged to statement of profit and loss.
 
 (ii) Provident Fund
 
 The Company has paid contribution of Rs.48.58 crore (Previous Year
 Rs.43.83 crore) to Provident Fund Trust at predetermined fixed
 percentage of eligible employees'' salary and charged to statement of
 profit and loss. Further, the obligation of the Company is to make good
 shortfall, if any, in the fund assets based on the statutory rate of
 interest in the future period. During the year, surplus in the fund is
 more than the interest rate guarantee liability of the Company hence,
 the Company has reversed a provision of Rs.2.31 crore (Previous Year
 Rs.2472 crore), as per actuarial valuation and the balance provision to
 meet any shortfall in the future period to be compensated by the
 Company to the Provident Fund Trust as on 31st March 2015 is nil
 (Previous Year Rs.2.31 crore).
 
 (iii) Other Benefit Plans
 
 a) Gratuity
 
 15 days salary for every completed year of service. Vesting period
 is 5years and payment is restricted to Rs.10 lakh.
 
 b) Post Retirement Medical Scheme (PRMS)
 
 The Company has Post Retirement Medical Scheme under which eligible
 ex-employees are provided medical facilities upon payment of one time
 prescribed contribution. The liability for the same is recognised on
 the basis of actuarial valuation. During the year. Company has made a
 provision towards the deficit in the liability as on 01.01.2007, having
 present value of Rs.114.48 crore as on 31st March 2015 as determined by
 the actuary in the statement of profit and loss, out of which
 Rs.106crore has been booked as prior period expenses.
 
 c) Earned Leave Benefit (EL)
 
 Accrual 30 days per year. Encashment while in service 75% of Earned
 Leave balance subject to maximum of 90 days at a time, twice per
 calendar year. Encashment on retirement or superannuation maximum300
 days.
 
 d) Terminal Benefits (TB)
 
 At the time of superannuation, employees are entitled to settle at a
 place of their choice and they are eligible for Transfer Travelling
 Allowance.
 
 e) Half Pay Leave (HPL)
 
 Accrual 20 days per year. Encashment while in service NIL. Full
 encashment on retirement.
 
 f) Long Service Award (LSA)
 
 On completion of specified period of service with the company and also
 at the time of retirement, employees are rewarded with Gold Coins of
 different weight based on the duration of service completed.
 
 The following table summarizes the components of net benefit expenses
 recognized in the statement of profit and loss based on actuarial
 valuation.
 
 11.  Disclosure as per Accounting Standard (A5) 16 on ''Borrowing
 Costs'':
 
 Borrowing costs capitalized during the year Rs.378.19 crore (Previous
 Year: Rs.351.35 crore).
 
 12.  MOP&NG had issued scheme of sharing of under recoveries on
 sensitive petroleum products. During the year, the Company has given
 discounts amounting to Rs.1,000 crore (Previous Year Rs.1900 crore).
 Corresponding adjustment on account of Central Sales Tax (CST)
 amounting to Rs.9.42 crore (Previous Year Rs.12.83 crore) has been
 made.
 
 13.  (a) The Company is raising provisional invoices for sale of R-LNG
 as the supplier Petronet LNG (PLL) is also raising provisional invoices
 on the Company since customs duty on import of LNG by PLL has been
 assessed on provisional basis.
 
 (b) With effect from 1st April 2002, Liquefied Petroleum Gas (LPG)
 prices has been deregulated and is now based on the import parity
 prices fixed by the Oil Companies. However, the pricing mechanism is
 provisional and is pending finalization. Additional asset/liability or
 impact on profits, if any, arising due to such change, will be
 recognized on finalization of the pricing mechanism.
 
 14.  (i) Natural Gas Pipeline Tariff is subject to various Regulations
 issued by Petroleum and Natural Gas Regulatory Board (PNGRB) from time
 to time. With a view to provide fair opportunity to the consumers and
 public to participate in the pipeline tariff determination, PNGRB by
 way of Public notice, issues Public Consultation Documents and solicits
 views of the stakeholders.  Impact on profits, if any, is being
 recognized consistently as and when the pipeline tariff is revised by
 orders of PNGRB in accordance with these Regulations.
 
 (ii) During the year, PNGRB have notified following ''Provisional''
 initial unit natural gas pipeline tariff orders, revising the tariff on
 lower side. Accordingly, the Company has derecognized the revenue
 amounting to Rs.449.31 crore, as detailed below:
 
 (iii) During the year, PNGRB vide Order No TO/02/2015 dated 3rc
 March''2015 have notified revised Petroleum and Petroleum Products
 Pipeline Transportation Tariff for Jamnagar Loni Pipeline (JLPL)
 effective from 20th December 2014. In compliance of the order, the
 Company has recognized the revenue by an amount of n 0.71 crore.
 
 (iv) PNGRB has issued provisional tariff orders after various
 moderations, on account of capital employed, inflation rate,
 unaccounted gas loss, operating expenditure, volume devisor, future
 capex, working days etc. GAIL has filed appeals before the APTEL
 against the said moderations, in respect of following Tariff Orders,
 which are pending, and the relief, if any, will be accounted for in the
 year of decision:
 
 (a) KG Basin,
 
 (b) Dabhol-Bangalore,
 
 (c) Kochi-Mangalore-Bangalore,
 
 (d) Dadri-Bawana-Nangal,
 
 (e) Chainsa-Jhajjar-Hissar,
 
 (f) Cauvery Basin,
 
 (g) Dukli-Maharajganj, 
 
 (h) Gujarat Network.
 
 15.  ONGC has raised debit notes dated 31st March2014forRs.l60.95crore
 for the period 20th November 2008 to 31st March 2014 of differential
 transportation charges (difference between Rs.12 and Rs.226 per 1000
 5CM) for its Uran-Trombay Pipeline based on provisional tariff order
 dated 30th December 2013 issued by PNGRB. The Company in-turn, raised
 the debit notes to its customers on back-to-back basis amounting to
 Rs.195.80 crore out of which Rs.41.83 crore has been realised up to
 31st March 2015. These debit notes have been contested by major
 customers in Court of Law/PNGRB including legal notice against
 encashment of LC. Pending final decision, as on 31st March 2015, an
 amount of Rs.153.97 crore has been included in Sundry debtors and an
 amount of Rs.191.15 crore as payable to ONGC. In view of above, and the
 action plan for recovery initiated, the management is of the opinion
 that no provision is required at this stage.
 
 16.  As per the advice of MOPNG, ONGC raised debit notes dated 19th
 December 2013 for differential of Non-APM price for certain gas
 supplied for the period February 2012 to November 2013 amounting to
 Rs.256.34 crore including VAT on GAIL who in-turn raised the
 corresponding debit notes Rs.236.41 crore (Rs.2.go crore realised up to
 315t March2015 and net of Rs.32.go crore (including VAT) (the amount
 already recovered and credited to Gas Pool Account) to the allottee
 customers as on 31st March 2014.These customers have disputed the
 claims raised by the Company for retrospective change in gas price. In
 terms of the legal opinion obtained, the allottee customers are not
 liable to pay, and also observed that the debit note/invoices raised by
 ONGCL are based on deeming fiction and do not reflect the factual
 position, and in its record could not create a legally justifiable
 basis to raise debit note/invoice. The Company has referred the matter
 to MOPNG where decision is still pending. In view of above, an amount
 of Rs.233.51 crore (including Marketing Margin) is included in Sundry
 Debtors, and an amount of Rs.222.83 crore payable to ONGC. In view of
 above the management is of the opinion that no provision is required at
 this stage.
 
 17.  PNGRB on 19.02.2014 notified insertion in Affiliate Code of
 Conduct that an entity engaged in both marketing and transportation of
 natural gas shall create a separate legal entity for transportation of
 natural gas by 31.03.2017 and the right of first use shall, however,
 remain with the affiliate of such entity. The Company has challenged
 the said PNGRB notification before Delhi High Court by way of writ and
 the same is pending adjudication.
 
 18.  In compliance of AS 17 on Segment Reporting as notified under
 the Companies Accounting Standard Rules 2006, read with Companies
 (Accounts) Rules, 2014, the Company has adopted following Business
 segments as its reportable segments:
 
 (i) Transmission services
 
 a) Natural Gas
 
 b) LPG
 
 (ii) Natural Gas Marketing
 
 (iii) Petrochemicals
 
 (iv) LPG and other Liquid Hydrocarbons
 
 (v) Other Segments (include GAIL TEL, E&R City Gas and Power
 Generation)
 
 There are no geographical segments.
 
 The disclosures of segment wise information is given as per Annexure-A.
 
 19.  In compliance of AS 18 on Related Party Disclosures notified
 under Companies Accounting Standard Rules 2006, read with Companies
 (Accounts) Rules, 2014, the names of related parties, nature of
 relationship and detail of transactions entered therewith are given in
 Annexure-B.
 
 20.  In compliance of AS 20 on Earning Per Share, the calculation of
 Earnings Per Share (Basic and Diluted) is as under:
 
 21. In Compliance of AS 27 on Financial Reporting of Interests in
 Joint Ventures as notified under Companies Accounting Standard Rules
 2006 read with Companies (Accounts) Rules, 2014 brief description of
 Joint Ventures of the Company are:
 
 (a) Jointly Controlled Entities
 
 (i) Mahanagar Gas Limited: A Joint Venture with British Gas Plc and
 Government of Maharashtra to supply gas to domestic, commercial, small
 industrial consumers and CNG for transport sector in Mumbai. The
 Company has equity participation of 35% (Previous Year 35%) of the paid
 up capital and has invested Rs.4445 crore (Previous Year Rs.4445 crore)
 in 444,50,000 equity shares of no/-each.
 
 (ii) Indraprastha Gas Limited: A Joint Venture with BPCL and Government
 of National Capital Territory (NCT) of Delhi to supply gas to domestic,
 commercial, small industrial consumers and CNG for transport sector in
 Delhi. The Company has equity participation of 22.50% (Previous Year
 22.50%) of the paid up capital and has invested Rs.31.50 crore
 (Previous Year Rs.31.50 crore) for acquiring 3,15,00,000
 Equity shares of Rs.10/-each.
 
 (iii) Petronet LNG Limited: A Joint Venture with BPCL, I0CL and ONGCL
 for setting up LNG import facilities. The Company has equity
 participation of 12.50% (Previous Year 12.50%) of the paid up capital
 and has invested Rs.98.75 crore (Previous Year Rs.98.75 crore) for
 acquiring 9,37,50,000 equity shares of Rs.10/- each in the Joint
 Venture Company (includes 1,00,00,000 equity shares allotted at a
 premium of Rs.5/- per share). The Company has also paid Rs.421.35 crore
 (Previous Year Rs.14045 crore) including service tax as advance for
 booking of 2.5 MMTPA capacity on long term basis at Dahej.
 
 (iv) Bhagyanagar Gas Limited: A Joint Venture with HPCL for
 distribution and marketing of CNG, Auto LPG, natural gas and other
 gaseous fuels in Andhra Pradesh and Telengana. The Company has equity
 participation of 22.50% (Previous Year 22.50%)of the paid up capital
 and has invested Rs.22.50 crore (Previous Year Rs.0.01 crore) for
 acquiring2,25,00,000 equity shares
 (PreviousYearl2,500equityshares)ofRs.10/-each.
 
 (v) Tripura Natural Gas Company Limited: A Joint Venture with Assam Gas
 Company Limited and Tripura Industrial Development Corporation for
 transportation and distribution of natural gas through pipelines in
 Tripura. The Company has equity participation of 29% (Previous Year
 29%)of the paid up capital and has invested Rs.1.92 crore (Previous Year
 Rs.1.92 crore) for acquiring 1,92,000 equity shares (Previous Year
 1,92,000 equity shares) of Rs.100/- each.
 
 (vi) Central UP Gas Limited: A Joint Venture with BPC L to supply gas
 to domestic, commercial and small industrial consumers and CNG for
 transport sector in Kanpur, Uttar Pradesh. The Company has equity
 participation of 25% (Previous Year 25%) of the paid up capital and has
 invested Rs.15 crore (Previous Year Rs.15 crore) for acquiring 
 1,50,00,000 equity shares of Rs.10/-each.
 
 (vii) Green Gas Limited: A Joint Venture with I0CL to supply gas to
 domestic, commercial and small industrial consumers and CNG for
 transport sector in Agra and Lucknow, Uttar Pradesh. The Company has
 equity participation of 22.50% (Previous Year 22.50%)of the paid up
 capital and has invested Rs.23.04 crore
 (PreviousYearRs.0.01crore)foracquiring2,30,42,500equityshares
 (PreviousYearl2,500equityshares)ofRs.10/-each.
 
 (viii) Maharashtra Natural Gas Limited: A Joint Venture with BPCL to
 supply gas to domestic, commercial and small industrial consumers and
 CNG for transport sector in Pune, Maharashtra.
 
 The Company has equity participation of 22.50% (Previous Year 22.50%)
 of the paid up capital and has invested Rs.22.50 crore (Previous Year
 Rs.22.50 crore) for acquiring 2,25,00,000 equity sharesofRs.10/-each.
 
 (ix) Ratnagiri Gas and Power Private Limited: A Joint Venture with
 NTPC, M5EB and other financial institutions for the revival of the
 Dabhol Project. The Company''s equity participation has come down from
 32.88% to 28.91% of the paid up capital due to availement of rights by
 the financial institutions converting their debt to equity during the
 year. There is no change in the investment of Rs.97431 crore (Previous
 Year Rs.97431 crore) in 97,43,08,300 equity shares (Previous Year
 97,43,08,300 equity shares) of Rs.10/- each.
 
 (x) Avantika Gas Ltd. A Joint Venture with HPCL to supply gas to
 domestic, commercial and small industrial consumers and CNG for
 transport sector in Madhya Pradesh. The Company has equity
 participation of 22.50% (Previous Year 22.50%) of the paid up capital
 and has invested Rs.22.50 crore (Previous Year Rs.0.0l crore) for
 acquiring 2,25,00,000 equity shares (Previous Year 12,500 equity
 shares)ofRs.10/-each.
 
 (xi) ONGC Petro Additions Ltd (OPAL). A Joint Venture with ONGC, and
 Gujarat state Petroleum Corporation Ltd., for setting up Petrochemical
 Project at Dahej in Gujarat. The Company has equity participation of
 15.50% (Previous Year :1550%) of the paid up capital and has invested
 Rs.994.95 crore (Previous Year Rs.994.95 crore) for acquiring
 99,49,45,000 equity shares (Previous Year 99,49,45,000 equity shares)
 of Rs.10/-each.
 
 (xii) GAIL China Gas Global Energy Holdings Ltd. A Joint Venture with
 China Gas Holdings Ltd, to pursue gas sector opportunities mainly in
 China. The Company has equity participation of 50% (Previous Year50%)of
 the paid up capital.
 
 (xiii) Tapi Pipeline Company Ltd. A Joint Venture Company with
 Turkmengaz (Turkmenistan), Afghan Gas Enterprise (Afghanistan) and I5G5
 Pvt. Ltd. (Pakistan) incorporated on 11th November 2014.  The Company
 has equity participation of 25% of the paid up capital.
 
 (b) Jointly Controlled Assets
 
 (I) The Company has participated in joint bidding under the Government
 of India New Exploration Licensing Policy (NELP) and overseas
 exploration bidding and has 13 Blocks (Previous Year: 18 Blocks) as on
 31st March 2015 for which the Company has entered into Production
 Sharing Contract(s) with respective host Governments along with other
 partners for exploration & production of oil and gas.  The Company is a
 non-operator, except in Block RJ-ONN -2004/1, CY-ONN-2005/l and
 CB-ONN-2010/ll, where it is the operator. The expenses, income, assets
 and liabilities are based upon its percentage share in production
 sharing contract(s).
 
 22. In compliance of AS-28 on Impairment of Assets as notified under
 the Companies Accounting Standard Rules 2006 read with Companies
 (Accounts) Rules, 2014, the Company has carried out an assessment of
 impairment of asset in respect of its GAIL Tel assets and Gas
 Processing Unit (GPU) Plant Usar as on31.03.2015. Accordingly:
 
 (i) The Company has made impairment of Rs.6.09 crore (Previous Year:-
 Rs.5.62 crore) in respect of its GAIL Tel assets and the same has been
 recognised as impairment loss in the statement of profit and loss.
 
 (ii) No impairment loss was considered necessary by the management of
 the Company in respect of GPU, Usar which is under shutdown condition
 since 16th July 2014 due to non-availability of rich feed gas.  The
 management has decided to keep the plant in preservation mode till the
 availability of rich feed gas in the future.
 
 23.  In compliance with amended Clause 32 of the Listing Agreement with
 Stock Exchanges, the required information is given in Annexure - C.
 
 24.  Foreign currency exposure not hedged by a derivative instrument or
 otherwise:
 
 25.  In some cases, the Company has received intimation from Micro and
 Small Enterprises regarding their status under The Micro, Small and
 Medium Enterprises Development Act, 2006. The management of the
 Company confirms that as per practice, the payment to all suppliers has
 been made within7-10days.The amount remainingun paid to all suppliers
 as at 31st March 2015 is Rs.3,439-35 crore (Previous Year: Rs.4,105.68
 crore).  No interest for delay was paid or payable under the Act.
 
 26.  (a) Following Government of India''s approval, the shareholders of
 the Company in the Annual General Meeting held on 15thSeptember,1997
 approved the transfer of all the assets including Plant and Machinery,
 accessories and other related assets which are part of Lakwa Project to
 Assam Gas Cracker Complex at a price to be determined by an independent
 Agency and on terms and stipulations as the Board of directors may in
 its discretion deem fit.  The Cabinet Committee on Economic Affairs
 (CCEA) has approved the setting up of Assam Gas Cracker Project at
 Lepetkata by formation of a company in which the Company has equity
 participation of 70%. A company by the name of Brahmaputra Cracker and
 Polymer Limited (BCPL) was incorporated during2006- 07 and construction
 of the project is in progress. Further, Public Investment Board (PIB)
 in meeting dated 13th July 2011 recommended that the issue of ownership
 of the Lakwa facility may be decided by the Committee comprising of
 representative from Department of Expenditure, Planning Commission,
 MoPNG and the Administrative Ministry. The gross block of fixed assets
 and capital work in progress value of Lakwa unit is Rs.260.27 crore as
 on 31st March 2015(Previous Year: Rs.26l.l4crore).
 
 (b) Exceptional items include profit of Rs.62.86 crore on slump sale
 consideration of Rs.79.14 crore, being market value as on 01.10.2014 of
 CNG business (including pipelines)in Vadodara to Vadodra Gas Ltd, a
 Joint Venture Company of GAIL Gas Ltd and Vadodara Municipal
 SewaSamiti.
 
 27.  Non-Refundable Deposits Rs.5.27 crore (Previous Year: Rs.17.21
 crore) made with the concerned authorities for railway crossings,
 forest crossings, removal and laying of electric/telephone poles and
 lines are accounted for under Capital Work-in-Progress/Capitalised on
 the basis of work done/confirmation from the concerned department.
 
 28.  (a) Confirmation of balances has been received in majority of
 cases for trade receivables and payables. These confirmations are
 subject to reconciliation and consequential adjustments, which in the
 opinion of the management are not material.
 
 (b) In the opinion of management, the value of assets, other than fixed
 assets and non-current investments, on realization in the ordinary
 course of business, will not be less than the value at which these are
 stated in the Balance Sheet.
 
 (c) During the year, the Company has CapitalisedRs.2974.28 crore in C2&
 C3 Project and Rs.3867.98 crore in Petrochemical Project.
 
 29.  During the year, an amount of Rs.27.74 crore (Previous Year
 Rs.28.96 crore) has been capitalized towards Research and Development
 Assets.
 
 30.  The Statement of Profit & loss includes:-
 
 (a) Expenditure on Public Relations and Publicity amounting to Rs.44.90
 crore (Previous Year: Rs.36.20 crore). The ratio of annual expenditure
 on Public Relations and Publicity to the annual turnover is 0.0006:1
 (Previous Year: 0.0006:1).
 
 (b) Research and Development Expenses Rs.17.01 crore (Previous Year
 Rs.28.45 crore).
 
 (c) Entertainment Expenses Rs.0.27crore(Previous Year: Rs.0.21 crore).
 
 31.  Other disclosures as per Schedule III of the Companies Act2013.
 
 32.  Other Quantitative details are given in Annexure-D.
 
 33.  Previous year''s figures have been regrouped / reclassified
 wherever necessary to correspond with the current year''s classification
 / disclosure.
Source : Dion Global Solutions Limited
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