i) Capitalization of Producing Properties
 
 (i) Producing Properties are capitalised when the wells in the area /
 field are ready to commence commercial production having proved
 developed oil and gas reserves.
 
 (ii) Cost of Producing Properties includes cost of Successful
 exploratory wells, development wells, initial depreciation of support
 equipments & facilities and estimated future abandonment cost.
 
 (iii) Depletion of Producing Properties Producing Properties are
 depleted Using the ''Unit of Production Method (UOP) The depletion or
 unit of production charged for all the capitalized cost is calculated
 in the ratio of production during the year to the proved developed
 reserves at the year end.
 
 iv) Production cost of Producing Properties
 
 Company''s share of production costs as indicated by Operator consists
 of pre well head and post wellhead expenses including depreciation and
 applicable operating costs of support equipment and facilities.
 
 1.1.OTHERS
 
 (i) Liquidated Damages / Price Reduction Schedule, if any, are
 accounted for as and when recovery is effected and the matter is
 considered settled by the Management.  Liquidated damages / Price
 Reduction Schedule, if settled, after capitalization of assets are
 charged to revenue if below Rs. 50 lacs in each case, otherwise
 adjusted in the cost of relevant assets.
 
 (ii) Insurance claims are accounted for on the basis of claims admitted
 by the insurers.
 
 b) The Company has only one class of equity shares having a par value
 Rs.10/- per share. The holders of the equity shares are entitled to
 receive dividends as declared from time to time and are entitled to
 voting rights proportionate to their share holding at the shareholders
 meetings.
 
 c) 104,90,634 shares are held in the form of Global Depository Receipts
 
 d) During the year 2008-09, the company had issued 42,28,25,800 Bonus
 Equity shares of Rs. 10/-each out of General Reserve.
 
 2.  The financial statements for the year ended 31st March''2011 were
 prepared as per then applicable, Schedule Vi to the Companies Act,
 1956.  Consequent to the notification of Revised Schedule Vi under the
 Companies Act, 1956, the financial statements for the year ended 31st
 March''2012 are prepared as per Revised Schedule VI. Accordingly, the
 previous year figures have also been reclassified to conform to this
 year''s classification. The adoption of Revised Schedule VI for previous
 year figures does not impact recognition and measurement principles
 followed for preparation of financial statements.
 
 3.  Contingent Liabilities and Commitments (To the extent not provided
 for):-
 
 I.  Contingent Liability
 
 (a) Claims against the Company not acknowledged as debts: Rs..6040.02
 Crores (Previous Year: Rs. 4930.40 Crores), which mainly include:-
 
 (i) Legal cases for claim of Rs..3261.11 Crores (Previous Year: Rs.
 2731.63 Crores) 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 2009-10 have been
 completed and a demand of Rs..1345.92 Crores relating to the Assessment
 Years 1996-97 to 1998-1999 and 2000-01 to 2009-10 (Previous Year: Rs..
 1017.25 Crores related to Assessment years 1996-97 and 2000-01 to
 2008-09) has been raised by the Department on account of certain
 disallowances / additions which has been disputed by the company as
 company has been advised that the demand is likely to be deleted or may
 be reduced substantially by the appellate Authorities.  The company has
 filed the appeal with the appropriate appellate authorities against all
 the assessment years. However, to avoid coercive action by the
 Department, Rs.1177.33 Crores (Previous Year: Rs. 1323.66 Crores) has
 already been paid pending decision by the appellate authorities.
 
 (iii) Rs..1154.69 Crores (Previous Year: Rs..  760.15 Crores) relating
 to disputed tax demand towards Excise duty, Sales tax, Entry tax, and
 Service Tax etc.
 
 (b) (i) The Company has issued Corporate Guarantee for Rs.. 806.03
 Crores (Previous Year : Rs.. 372.34 Crores) on behalf of subsidiary
 companies for raising loan.  Further Bank Gurantees for Rs..45.88 Crore
 (Previous Year: Rs..45.88 Crore) issued on behalf of subsidiary
 companies.
 
 (ii) Share in Contingent Liabilities of Joint Ventures based on their
 audited / unaudited statement of accounts : Rs..733.14 Crores (Previous
 Year: Rs.. 437.20 Crores).
 
 II.  Commitments:-
 
 (a) Estimated amount of contracts remaining to be executed on Capital
 account and not provided for: Rs..7115.17 Crores (Previous Year:
 Rs.4540.71 Crores).
 
 (b) Company''s share in estimated amount of contracts remaining to be
 executed on capital account and not provided for based on
 audited/unaudited statement of accounts of Joint Ventures. Rs..1777.91
 Crores (Previous Year: Rs..1418.04 Crores).
 
 (c) Other Commitments:-
 
 (i) As at 31st March''2012, the company has commitment of Rs.. 970.70
 Crores (Previous Year : Rs.1038.21 Crores) towards further investment
 and disbursement of loan in the Joint Venture Entities and Associates.
 
 (ii) As at 31st March''2012, the company has commitment of Rs.. 217.33
 Crores (Previous Year:Rs..505.45 Crores) towards further investment in
 the Subsidiaries.
 
 (iii) As at 31st March''2012, the company has commitment of Rs.. 321.91
 Crores (Previous Year: Rs.82.93 Crores) towards further investment in
 the entity other than Joint Ventures, Associates & Subsidiaries.
 
 (iv) Counter Guarantee issued in favour of Bank etc for issuing Bank
 Guarantee & Letters of Credit : Rs..1242.63 Crores (Previous Year: Rs..
 951.45 Crores).
 
 (v) Company''s commitment towards the minimum work programme in respect
 of Jointly Controlled Assets has been disclosed in Note45(b).
 
 4 (a) Sales Tax demand of Rs.3449.18 Crores (Previous Year: Rs.
 3449.18 Crores) and interest thereon Rs.1513.04 Crores.  (Previous
 Year: Rs.1513.04 Crores) for Hazira unit in Gujarat State: Sales Tax
 Authorities, Ahmedabad have treated the transfer of Natural Gas by the
 company from the state of Gujarat to other states during the period
 April, 1994 to March, 2001 as inter-state sales under Section 3(a) of
 the Central Sales Tax Act. The company has been paying sales tax under
 section 12 of the Gujarat Sales Tax Act against Form 17 since inception
 (1987) and accordingly the sales tax assessments have been completed.
 Based on the interpretation of the provisions of the Sales Tax Act and
 legal advice from the experts, the company had filed writ petition and
 special leave petition in the Supreme Court of India. In February, 2005
 the case was transferred by Hon''ble Supreme Court to Gujarat Sales Tax
 Tribunal for decision. The Tribunal has given its judgment on
 16.05.2005 accepting the contention of the company for interstate
 transfer of Natural Gas as branch transfer and not the interstate sale
 and set aside the demand under section 41-B of the Gujarat Sales Tax
 Act. The Hon''ble Tribunal has given further instruction to the
 Assessing Authority to re-assess and decide tax liability in accordance
 with the law considering interstate transfer of natural gas as branch
 transfer. The Sales Tax Authorities had filed rectification application
 under section 72 of the Gujarat Sales Tax Act, 1969 in Gujarat Sales
 Tax Tribunal against its judgment dated 16.05.2005. The Tribunal had
 dismissed the rectification application of the sales tax authorities
 vide its order dated 06.07.2006. The sales tax authorities have now
 filed petition in Hon''ble high Court Ahmedabad against the order of the
 tribunal and no hearing has yet taken place. In opinion of the
 management there is a remote possibility of crystallizing this
 liability.
 
 (b) The Commissioner, Customs & Central Excise, Kanpur has issued a
 Show-Cause Notice demanding Rs.2808.89 Crores as Central Excise Duty on
 Natural Gas supplied by GAIL Dibiyapur Compressor Station treating it
 as Compressed Natural Gas (CNG). The company is of the view that there
 is remote possibility of crystallizing of this liability in view of
 extant legal position and clarification issued by Ministry of Finance
 vide circular no. F. No. B.1/3/2001-TRU dated 21st May 2001 on the
 subject which was issued in response to GAIL''s request after
 introduction of excise duty on CNG in the year 2001.
 
 5 (a) Freehold land acquired for city gate Station at Lucknow and 
 Kanpur, Jhansi Maintenance Base and IMT Maneshar, Sectionalizing 
 Valves in Jamnagar - Loni Pipeline and Mumbai, receiving terminalat 
 Pune valuing Rs..6.39 Crores (Previous Year: Rs. 4.94 Crores) are valued /capitalized on provisional basis.
 
 (b) Title deeds for freehold land valuing Rs.7.84 Crores (Previous
 Year: Rs. 6.38 Crores) and leasehold land valuing Rs.20.94 Crores
 (Previous Year: Rs. 10.24 Crores) are pending execution.
 
 (c) Title Deeds in respect often residential flats at Asiad Village,
 New Delhi, valuing Rs.. 1.17 Crores (Previous Year: Rs..1.17 Crores)
 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.. 1.20 Crores
 (Previous Year: Rs.. 1.21 Crores) earmarked for disposal but in use.
 
 6 (a) The company has added Note 1.10 (iv)
 
 in the Accounting Policy relating to foreign exchange differences
 stating that Exchange differences (loss), arising from translation of
 foreign currency loans relating to fixed assets to the extent regarded
 as an adjustment to interest cost are treated as borrowing cost
 
 Due to this, an amount of Rs..40.10 Crore has been debited to borrowing
 cost.
 
 (b) In view of option allowed by the Ministry of Corporate Affairs vide
 its notification dated 29th Dec''2011 on Accounting Standard 11, the
 company during the year has exercised the option and changed its
 accounting policy to account for'' any gains or loss arising on account
 of exchange difference either on settlement or on translation is
 accounted for in the Profit & Loss account except in case of long term
 foreign currency monetary items relating to acquisition of depreciable
 capital asset (other than regarded as borrowing cost) in which case
 they are adjusted to the carrying cost of such assets and in other
 cases, accumulated in ''Foreign Currency Monetary item Translation
 Difference Account'' in the Financial statements and amortized over the
 balance period of such long terms asset or liability, by recognition as
 income or expenses in each of such period.
 
 Due to change in Accounting Policy, Fixed Assets has increased by Rs.
 38.48 Crore with consequent increase in profit for the year by Rs.
 38.48 Crore and also an amount of Rs. 1.63 Crore credited in Foreign
 Currency Monetary item Translation Difference Account and amortised by
 Rs..0.28 crore during the year resulting in net decrease in profit by
 Rs..1.3S Crore. The balance in Foreign Currency Monetary item
 Translation Difference Account as on 31.03.2012 remaining to be
 amortized is Rs..1.35Crore.
 
 7 (a) The balance retention from PMT JV consortium amounting to Rs.
 47.06 Crores (Previous Year: Rs. 43.75 Crores) includes interest
 amounting to Rs. 0.92 Crores (Previous Year: Rs. 2.64 Crores) on Short
 term deposits for the year. This interest income does not belong to the
 company hence not accounted as income.
 
 (b) Liability on account of Gas Pool Money amounting to Rs. 818.83
 Crores (Previous Year: Rs. 722.60 Crores) includes interest amounting
 to Rs.37.71 Crores (Previous Year: Rs.. 29.10 Crores) on short term
 deposits. This interest does not belong to the company hence not
 accounted as income.
 
 (c) Liability on account of Pipeline overrun and Imbalance Charges
 amounting toRs.  31.67 Crores (Previous Year: Rs. 23.95 Crores)
 includes interest amounting to Rs. 1.96 Crores (Previous Year: NIL) on
 short term deposits. This interest does not belong to the company hence
 not accounted as income.
 
 (d) MOP&NG has issued clarification on the allocation of additional gas
 available from ONGCL''s nominated blocks vide its letter no.
 L-12018/23/2010-GP-lldated 31.10.2011 and letter no. L- 13013/5/2011-GP
 dated 17.11.2011. In compliance with this clarification, GAIL has
 revised the invoices for supply of Natural Gas to some Power Plants in
 Pondicherry area for the period 1.7.2005 to 15.11.2011 for an
 additional amount of Rs..241.98 Crores by issuing the debit notes. This
 amount has been shown as recoverable from the respective power
 companies and correspondingly payable in Gas Pool Account (Provisional)
 amounting to Rs..234.01 crores and VAT payable amounting to Rs..7.97
 crores. The amount payable in Gas Pool Account will be invested as and
 when said amount is recovered from the consumers. All the respective
 consumers have obtained stay orders against the recovery of these dues
 from Courts and the cases are sub judice.
 
 8.  Disclosure as per Accounting Standard-11 on ''The effect of changes
 in Foreign Exchange Rates
 
 (i) The amount of exchange difference (net) debited to the statement of
 Profit & Loss is Rs.  12.41 Crores (Previous Year: Rs. 3.30 Crores).
 
 (ii) The amount of exchange difference (other than regarded as
 borrowing cost) debited to the carrying amount of fixed assets is Rs..
 38.48 Crores (Previous Year: Nil).
 
 9.  The required disclosure under the Revised Accounting Standard 15
 Is given as below:
 
 (i) Superannuation Benefit Fund (Defined Contribution Fund) Company has
 provided for an amount of Rs..51.30 Crores towards contribution to
 Superannuation Benefit Fund Trust and charged to statement of Profit
 and Loss.
 
 (ii) Provident Fund
 
 Company has paid contribution of Rs..29.53 crores (Previous Year: Rs.
 32.90 Crores) to Provident Fund Trust at predetermined fixed percentage
 of eligible employee''s 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, the company has
 reversed a provision of Rs..4.32 Crore, as per actuarial valuation and
 the balance provision to meet any short fall in the future period, to
 be compensated by the company to the Provident Fund Trust, as on
 31.03.2012 is Rs..8.82 Crore.
 
 (iii) Other Benefit Plans
 
 A) Gratuity
 
 15 days salary for every completed year of service. Vesting
 periodis5yearsand payment is restricted to Rs. 10 Lakhs.
 
 B) Post Retirement Medical Benefit (PRMS)
 
 Upon payment of one time prescribed contribution by the superannuated
 employees/those who resigned from service can avail the facility
 subject to the completion of minimum of 10 years of service and 50
 years of age.
 
 C) Earned Leave Benefit (EL)
 
 Accrual 30days per year. Encashment while in service75%ofEarned Leave
 Balance subject to maximum of 90 days at a time, twice per calendar
 year.  Encashment on retirement or superannuation maximum300days.
 
 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 Traveling
 Allowance. Employees are gifted a gold coin weighing 25 grams.
 
 E) Half Pay Leave(HPL)
 
 Accrual 20days per year. Encashment while in service NIL.  Full
 encashment on retirement.
 
 F) Long Service Award (LSA)
 
 Employees are eligible for gold coin weighing 5 gms on completion of 15
 years, 10gms each on completion of 20 years and 25 years, 20 gms each
 on completion of 30 years and 35 years of service.
 
 The following table summarizes the components of net benefit expenses
 recognized in the statement of Profit and Loss.
 
 10.  Disclosure as per Accounting Standard-16 on ''Borrowing Costs''
 
 Borrowing costs capitalized during the yearRs.215.14 Crore (Previous
 Year: Rs. 35.80 Crore).
 
 11.  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.3182.62 Crores (Previous Year: Rs. 2111.24
 Crores).  Corresponding adjustment on account of CST amounting to
 Rs.17.54 Crores (Previous Year: Rs.6.98 Crores) has been made.
 
 12.  (a) The Company is raising provisional invoices for sale of R-LNG
 as the supplier M/s 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 April 1, 2002, Liquefied Petroleum Gas 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 pricing mechanism.
 
 (c) (i) Natural Gas Pipeline Tariff is subject to various Regulations
 issued by PNGRB from time to time. Impact on profits, if any, is being
 recognized as and when the pipeline tariff is revised in accordance
 with these Regulations. The impact on profit is recognized during the
 year of tariff submission.
 
 (ii) PNGRB vide order no-TO/01/2012 dated 12th March'' 2012 and order
 no. T0/06/2012 dated 01st May, 2012 have notified PROVISIONAL initial
 unit natural gas pipeline tariff for Mumbai Regional Network and
 Agartala Regional Pipeline respectively, effective from 20.11.2008. In
 accordance with the orders, the company has derecognized the revenue by
 an amount of Rs..114.68 Crore. Further, the company has also
 derecognized the revenue by an amount of Rs..140.23 Crore on account of
 lower tariff submitted to PNGRB for approval in respect of other
 pipelines.
 
 (iii) PNGRB has issued PNGRB Regulations 2010 (Determination of
 Petroleum & Petroleum Products Pipelines transportation Tariff)
 effective from 20.12.2010 where LPG pipeline tariff has been
 benchmarked against railway freight. PNGRB vide its order no.
 TO/02/2012 dated 02nd April''2012 has notified transportation tariff for
 Vizag-Secunderabad LPG Pipeline effective from 27.12.2010. In
 accordance with the order, the company has derecognized the revenue by
 an amount of Rs..14.34 Crore.  Further, the company has also
 derecognized the revenue by an amount of Rs..29.60 Crore (Previous
 Year: Rs..6.33 Crore) on account of lower tariff submitted to PNGRB for
 approval in respect of another pipeline.
 
 (d) Value of Annual Take or Pay Quantity (ATOPQ) of Gas is accounted
 for on receipt basis and shown as liability till make up Gas is
 delivered to customer, during the recovery period, in terms of the Gas
 Sales Agreement with the customers.
 
 13.  In compliance of Accounting Standard 17 (AS-17) on Segment
 Reporting as notified under Companies Accounting Standard Rules, 2006,
 the company has adopted following Business segments as its Reportable
 segments:
 
 (i) Transmission services
 
 a) Natural Gas
 
 b) LPG
 
 (ii) Natural Gas Trading (Hi) Petrochemicals
 
 (iv) LPG and other Liquid Hydrocarbons
 
 (v) Other Segments (include GAIL TEL, E&P, City Gas and Power
 Generation)
 
 There are no geographical segments.
 
 The disclosures of segment wise information is given as per Annexure-A.
 
 14.  In compliance of Accounting Standard 18 on Related party
 Disclosures as notified under Companies Accounting Standard
 Rules,2006, the names of related parties, nature of relationship and
 detail of transactions entered therewith are given in Annexure-B.
 
 15.  In compliance to Accounting Standard 20 on Earning Per Share,
 the calculation of Earnings Per Share (Basic and Diluted) is as under:
 
 16.  In compliance of Accounting Standard 22 on Accounting for taxes
 on income as notified under Companies Accounting Standard Rules,2006,
 the Company has provided accumulated net deferred tax liability in
 respect of timing difference as on 31st March,2012 amounting to
 Rs..1768.64 Crores (Previous Year: Rs. 1633.24 Crores). Net Deferred
 tax expense for the year of Rs.. 135.40 Crores (Previous Year: Rs..
 243.68 Crores) has been charged to Profit & Loss Account. The item-
 wise details of deferred tax liability and assets are as under:
 
 17.  In Compliance of Accounting Standard 27 on Financial Reporting of
 Interests in Joint Ventures as notified under Companies Accounting
 Standard Rules,2006, brief description of Joint Ventures of the Company
 are:
 
 (a) Jointly Controlled Entities
 
 (i) Mahanagar Gas Limited: A Joint Venture with British Gas Pic and
 Government of Maharashtra to supply gas to domestic, commercial, Small
 industrial consumers and CNG for transport sector in Mumbai.T he
 company has equity participation of 49.75% ofthe paid up capital and
 has invested Rs. 44.45 Crores for acquiring 4,44,50,000 equity shares
 of Rs.  10/-each in Joint Venture Company.
 
 (ii) Indraprastha Gas Limited: A Joint Venture with BPCL and Government
 of National Capital Territory (NCT) of Delhi to supply gas to domestic,
 commercial units and CNG for transport sector in Delhi. The company has
 equity participation of 22.50% of the paid up capital and has invested
 Rs..  31.50 Crores for acquiring 3,15,00,000 equity shares of Rs.
 10/-each in Joint Venture Company.
 
 (iii) Petronet LNG Limited: A Joint Venture with BPCL, lOCL and ONGCL
 for setting up LNG imports facilities. The company has equity
 participation of 12.50% of the paid up capital and has invested
 Rs..98.75 Crores for acquiring 9,37,50,000 equity shares of Rs. 10/-
 each in Joint Venture Company.
 
 (iv) Bhagyanagar Gas Limited: A Joint Venture with HPCL for
 distribution and marketing of CNG, Auto LPG, NaturalGas and other
 gaseous fuels in Andhra Pradesh. The company has equity participation
 of 22.50% of the paid upcapital and has invested Rs..0.01 Crores for
 acquiring 12,500equity shares of Rs. 10/- each in Joint Venture
 Company. The Company has also paid Rs.. 22.49 Crores (Previous Year:
 Rs. 22.49 Crores) as advance pending allotment of equity shares in
 Joint Venture Company.
 
 (v) Tripura Natural Gas Company Limited: A Joint Venture with Assam Gas
 Company Limited and Tripura Industrial Development Corporation for
 transportation and distribution of naturalgas through pipelines in
 Tripura. The company has equity participation of 29% of the paid up
 Capital and has invested Rs. 0.55 Crores for acquiring 55,000 equity
 shares of Rs. 100/-each in Joint Venture Company. The Company has also
 paid Rs..  0.28 Crores (Previous Year: Rs.0.28 Crores) as advance
 pending allotment of equity shares in Joint Venture Company.
 
 (vi) Central UP Gas Limited: A Joint Venture with BPCL 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: 22.5%)of the paid up capital and
 has invested Rs. 15 Crores for acquiring 1,50,00,000 equity shares of
 Rs. 10/-each in Joint Venture Company.
 
 (vii) Green Gas Limited: A Joint Venture with IOCL to supply gas to
 domestic, commercial and small industrial consumers and CNG for
 transport sector in Agra & Lucknow, Uttar Pradesh. The company has
 equity participation of 22.50% of the paid up capital and has invested
 Rs. 0.01 Crores for acquiring 12,500 equity shares of Rs. 10/- each in
 Joint Venture Company.  The Company has also paid Rs. 23.03 Crores
 (Previous Year: Rs. 23.03 Crores) as advance pending allotment of
 equity shares in Joint Venture Company.
 
 (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% of the paid up capital and has invested
 Rs.22.50 Crores for acquiring 2,25,00,000 equity shares of Rs. 10/-
 each in Joint Venture Company.
 
 (ix) Ratnagiri Gas and Power Private Limited: A Joint Venture with
 GAIL, NTPC and other Financial institutions for the revival of the
 Dabhol Project.  The company has equity participation of 32.88% of the
 paid up capital and has invested Rs.776.90 Crores for acquiring
 77,69,00,000 equity shares of Rs.10/- each in Joint Venture Company.
 The Company has also paid Rs. 118.36 Crores (Previous Year: NIL) as
 advance pending allotment of equity shares in Joint Venture Company.
 
 (x) Avantika Gas Ltd. A Joint Venture with GAIL and HPCL to supply gas
 to domestic, commercial and small industrial consumers and CNG for
 transport sector in MP. The company has equity participation of 22.50%
 of the paid upcapital and has invested Rs. 0.01 Crores for acquiring
 12,500 equity shares ofRs. 10/-each in Joint Venture Company. The
 Company has also paid Rs. 22.49 Crores (Previous Year: Rs. 22.49
 Crores) as advance pending allotment of equity shares in Joint Venture
 Company.
 
 (xi) ONGC Petro additions Ltd (OPAL). A Joint Venture with Oil and
 Natural Gas Corporation Ltd, GAIL (India) Ltd and Gujarat state
 Petroleum Corporation Ltd. for setting up Petrochemical Project at
 Dahejin Gujarat.  The company has equity participation of 17% (Previous
 Year: 17%) ofthe paid up capital. The Company has paid Rs.  335.88
 Crores (Previous Year: Rs. 299.41 Crores) as advance pending allotment
 of equity shares in Joint Venture Company.
 
 (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% 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 29 Blocks (PY 25 Blocks) as on 31.03.2012
 for which the Company has entered into Production Sharing Contract 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, where it is a joint operator and CY-ONN-2005/1 and
 CY-ONN-2010/11, where it is an operator, and shares in Expenses,
 Income, Assets and Liabilities based upon its percentage in production
 sharing contract.
 
 The participating interest in the twenty nine NELP Blocks in India as
 on 31st March, 2012 is as under:
 
 *ln addition, the company has 8.5% participating interest in offshore
 Midstream pipeline project in Myanmar for the purpose of transportation
 of gas from the delivery point in offshore, Myanmar to landfall point
 in Myanmar.
 
 (iii) The Company''s share in the Assets, Liabilities, Income and
 Expenditure for the year in respect of joint operations project blocks
 has been incorporated in the Company''s financial statements based upon
 un- audited statement of accounts submitted by the operators and are
 given below : (Finalad justments are effected during the year in which
 audited accounts are received).
 
 The above includes Rs.. 7.31 Crore, Rs.. Nil, Rs. 0.36 Crores, Rs..5.59
 crores, and Rs..27.41 Crores towards total value of Income, Expenses,
 Fixed Assets (Gross Block), Other Assets and Current Liabilities
 respectively pertaining to 12 E&P Blocks (including 11 Blocks
 relinquished in the earlier years for which Rs.Nil, Rs..17.39 Crore,
 Rs..0.24 Crore, Rs..6.15 Crore, Rs..47.65 Crore were Income, Expenses,
 Fixed assets (Gross Block), Other Assets, Current Liabilities
 respectively) relinquished till 31st March 2012 .The company is non
 operator in these E & P Blocks.
 
 (v) Share of Minimum work program committed under various production
 sharing contracts in respect of E&P joint ventures is Rs..650.17 Crores
 (Previous Year: Rs.837.46Crores).
 
 Note: Company''s interest in Oil Reserves is in Indian blocks and in Gas
 Reserves is in Myanmar
 
 c) In terms of Production Sharing Agreements/Contracts, the balance
 (company''s share) in cost recovery of Blocks (having proved reserves)
 to be made from future revenue of such Blocks ,if any, is Rs.. 691.27
 Crores at the end of year (previous year: Rs. 369.81 Crores).
 
 18.  In Compliance of Accounting Standard 28, impairment of assets
 notified under the Companies (Accounting Standard) Rules, 2006, the
 company has carried out the assessment of impairment of assets. Based
 on such assessment, GAILTEL assets have been impaired to the extent of
 Rs..2.12 Crore (Previous Year: Nil) and same amount has been recognized
 as impairment loss in statement of Profit & Loss.
 
 Additions include Rs.37.88 Crores (Previous Year: Rs.47.40 Crores)
 capitalized during the year. Expected timing of outflows is not
 ascertainable at this stage being legal cases under litigation.
 
 19 In compliance with amended Clause 32 of the Listing Agreement with
 Stock Exchanges, the required information is given in Annexure-C.
 
 20.  Foreign currency exposure not hedged by a derivatives instrument
 or otherwise:
 
 21.  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 Company has certified
 that as a practice, the payment to Suppliers is made within 7 -10 days.
 No payments beyond appointed date were noticed. The amount remaining
 unpaid as at 31st March 2012 is Rs..3096.39 Crores (Previous Year:Rs..
 2336.12 Crores). No payments beyond the appointed date were noticed. No
 interest was paid or payable under the Act.
 
 22.  (a) Following Government of India''s approval, the shareholders of
 the Company in the Annual General Meeting held on 15th September, 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 may in its discretion
 deem fit. The Cabinet committee on Economic affairs (CCEA) has approved
 the setting up of Assam Gas based cracker project at Lepetkata by
 formation of a company in which GAIL has equity participation of 70%. A
 company by the name of Brahmaputra Cracker and Polymer Limited has been
 incorporated during 2006-07 and construction of Gas cracker complex 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.. 255.68 Crores as on 31st
 March 2012 (Previous Year: Rs..258.33 Crores).
 
 (b) In pursuance with the Board Resolution passed in its 287th Meeting
 held on 06th April''2011, existing and ongoing expansion of local
 distribution assets amounting to Rs. 44.22 Crore in Agra and Firozabad
 has been transferred to GAIL Gas Limited, a wholly-owned subsidiary of
 GAIL, on 16th November,2011.
 
 (c) Further the Board in its 287th Meeting held on 06th April''2011 has
 approved transfer of CNG stations and its associated pipeline in
 Vadodara to proposed Joint Venture Company of GAIL Gas Ltd.  and
 Vadodra Municipal Seva Samiti at market value yet to be determined.
 The transfer has not been effected during the financial year.
 
 23.  Non-Refundable Deposits Rs..7.34 Crores (Previous Year: Rs. 24.09
 Crores) 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 on the basis of
 work done/confirmation from the concerned department.
 
 24.  During the year 2011-12, a newly wholly- owned Subsidiary in the
 name of GAIL Global(USA) Inc. was incorporated in USA on 26th
 September, 2011 with an investment of Rs..179.17Crore(USD36 million).
 
 25.  (a) Request for confirmations of balances of trade receivable and
 payables were send.  Confirmation of balances has been received from
 majority of cases. These confirmations are subject to reconciliation
 and consequential adjustments which in the opinion of the managements
 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.
 
 26.  The Statement of Profit & Loss includes:-
 
 (a) Expenditure on Public Relations and Publicity amounting to
 Rs..24.21 Crores (Previous Year: Rs. 20.92 Crores). 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..1.19 Crores (Previous
 Year:Rs.0.13 Crores).
 
 (c) Entertainment Expenses Rs..0.17 Crores (Previous Year: Rs..0.15
 Crores).
 
 27.  Other disclosures as per Schedule VI of the Companies Act, 1956.
 
 I) Relationship
 
 A) Joint Venture Companies/Associates
 
 1) Mahanagar Gas Limited
 
 2) Indraprastha Gas Limited
 
 3) Petronet LNG Limited
 
 4) Bhagyanagar Gas Limited
 
 5) Tripura NaturalGas Corporation Limited
 
 6) Central UP Gas Limited
 
 7) Green Gas Limited
 
 8) Maharashtra NaturalGas Limited
 
 9) Avantika Gas Ltd.
 
 10) GAIL China Gas Global Energy Holding Ltd.
 
 11) ONGC Petro additions Ltd (OPAL)
 
 12) Shell Compressed NaturalGas (Disposed off during FY 2011-12)
 
 13) Gujrat State Energy Generation Ltd.
 
 14) National Gas Company Nat Gas
 
 15) Fayum Gas Company
 
 16) China Gas Holdings Ltd.
 
 B) Key Management Personnel Whole time Directors(KMP):
 
 1) Shri B C Tripathi ,Chairman and Managing Director
 
 2) Shri R D Goyal
 
 3) Shri S L Raina
 
 4) Shri Prabhat Singh
 
 5) Shri S Venkatraman
 
 6) Shri P KJain