1. Accounting Convention :
 
 The Financial Statements have been prepared to comply in all material
 respects with all applicable accounting principles in India, the
 applicable Accounting Standards notified under Section 211 (3C) of the
 Companies Act, 1956 and the relevant provisions of the Companies Act,
 1956.
 
 2. Fixed Assets :
 
 (a) Fixed Assets including assets given on lease are stated at their
 original cost including freight, duties, customs and other incidental
 expenses relating to acquisition or construction.
 
 (b) Expenditure incurred during the period of construction including
 all direct and indirect expenses, incidental to construction are
 carried forward and on completion, the costs are allocated to the
 respective fixed assets.
 
 (c) Capital inventory represents items of capital nature lying in the
 store valued at cost on First In First Out method.
 
 (d) Capital spares are capitalised with the cost of the plant and
 machinery and depreciated over the useful life of the asset.
 
 (e) In respect of assets leased before April 1, 2001, the Company
 follows the recommendation of the Institute of Chartered Accountants of
 India contained in the Guidance Note on Accounting for Leases.
 Accordingly lease rentals accounted as income on finance leases are
 adjusted by creating lease terminal adjustment account so as to recover
 the capital cost of the leased asset within the tenure of lease
 agreements or earlier as ascertained by the management.
 
 3. Depreciation / Amortisation :
 
 (a) Depreciation on assets including assets given on operating lease is
 provided on Straight Line Method (SLM) at the rates and in the manner
 prescribed in Schedule XIV to the Companies Act, 1956. Assets costing
 Rs. 5,000 or less are fully depreciated in the year of purchase.
 
 (b) Depreciation on assets purchased / acquired during the year is
 charged from the beginning of the month of the purchase of the asset.
 Similarly depreciation on assets sold / discarded during the year is
 charged upto the end of the month preceding the month of sale of the
 asset.
 
 (c) No depreciation is being charged on Right of Use of Land being
 perpetual in nature.
 
 (d) Licenses / Softwares are amortised over a period of six years from
 the date of its availability for use by the Company.
 
 4. Investments :
 
 Long term investments are valued at cost and any decline in value other
 than temporary is appropriately provided.
 
 Current investments are stated at lower of cost and fair market value
 determined category wise. Cost is determined as per weighted average
 cost formula.
 
 5. Inventories :
 
 Stores and Pipes fittings are valued at lower of cost and net
 realisable value. Cost is determined on First In First Out method.
 
 6. Foreign currency transactions :
 
 Foreign currency transactions are recorded at exchange rates prevailing
 on the transaction date. At the Balance Sheet date, monetary assets and
 monetary liabilities denominated in foreign currency are translated at
 the applicable exchange rates prevailing on the Balance Sheet date and
 the resultant exchange difference, if any, is recognized in the Profit
 & Loss Account.  Exchange differences, if any, arising on settlement of
 transactions are recognized as income or expense in the year in which
 they arise.
 
 7. Employee Benefits :
 
 (a) Post-employment benefit plans
 
 i. Defined Contribution Plan - Contributions to provident fund are
 accrued in accordance with applicable statutes and deposited with the
 Regional Provident Fund Commissioner.
 
 ii. Defined Benefit Plan - The liability in respect of gratuity and
 leave encashment is determined using Projected Unit Credit Method with
 actuarial valuation carried out as at Balance Sheet date. Actuarial
 gains and losses are recognised in full in the Profit and Loss Account
 for the period in which they occur.
 
 Contributions in respect of gratuity are made to the approved Gratuity
 Fund of the Company. The gratuity obligation recognised in the balance
 sheet represents the present value of the defined benefit obligation as
 adjusted for unrecognised past service cost and as reduced by the fair
 value of gratuity fund.
 
 (b) Short term employment benefits
 
 The undiscounted amount of short term employee benefits expected to be
 paid in exchange for services rendered by employees is recognised
 during the period when the employee renders the services.
 
 (c) Employee Stock Option Plan
 
 Stock Option grants to the employees who accept the grant under the
 Company''s Stock Option Plan are accounted in accordance with Securities
 and Exchange Board of India (Employees Stock Option Scheme and
 Employees Stock Purchase Scheme) Guidelines, 1999 and Guidance Note on
 Accounting for Employee Share-based Payments issued by the Institute of
 Chartered Accountants of India. The Company follows the fair value
 method for option pricing and accordingly the fair value of the option
 as of the date of the grant of the option is recognised as employee
 compensation cost and amortised on straight line basis over the vesting
 period.
 
 8. Revenue Recognition :
 
 (a) Revenue on sale of natural gas is recognised on transfer of title
 to customers at delivery point. Sales are billed bi-monthly for
 domestic customers, monthly for commercial and non-commercial customers
 and fortnightly for industrial customers.  Spot sales of gas to
 industrial customers are billed as per the terms mutually agreed
 between the parties. Revenue on sale of Compressed Natural Gas (CNG) is
 recognised on sale of gas to customers from retail outlets.
 
 (b) Gas transmission income is recognised in the same period in which
 the related volumes of gas are delivered to the customers.
 
 (c) Commitment income from customers for gas sales and gas transmission
 is recognised on establishment of certainty of receipt of
 consideration.
 
 (d) Assets given on lease after April 1, 2001 :
 
 i. Income from Finance Leases
 
 In accordance with the provisions of Accounting Standard 19 on Leases,
 the aggregate of minimum lease payments less unearned finance income is
 recognised as a receivable. Unearned finance income is arrived at, as
 the difference between the aggregate of minimum lease payments and its
 present value based on the rate of return implicit as per the terms of
 the agreement. Finance Income is recognized over the term of the lease
 using net investment method, which reflects a constant periodic rate of
 return.
 
 ii. Income from Operating Leases
 
 Lease Income from Operating Leases has been recognised in the Profit &
 Loss Account on a straight line basis over the lease term, as required
 by AS - 19 on Leases.
 
 iii. Initial direct costs incurred for negotiating and arranging lease
 agreements are recognised immediately in the Profit and Loss account.
 
 (e) The difference between the amounts charged from customers for gas
 connections and actual consumption of material and labour charges is
 disclosed as Service and Fitting Income (Net) under Income from
 Operations.
 
 (f) Dividend income is recognised when the right to receive dividend is
 established.
 
 (g) Delayed payment charges are recognised on the basis of certainty of
 collection.
 
 9. Borrowing Costs :
 
 Borrowing costs attributable to the acquisition or construction of a
 qualifying asset is capitalised as part of the cost of the asset. Other
 borrowing costs are recognised as an expense in the period in which
 they are incurred.
 
 10. Operating Leases :
 
 Lease rentals are recognised as an expense on straight line basis over
 the term of the lease.
 
 11. Earnings Per Share (EPS) :
 
 Basic earnings per share is calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period.
 
 12. Taxation :
 
 Tax expense for the year, comprising current tax and deferred tax, is
 included in determining the net profit for the year.
 
 A provision is made for the current tax based on tax liability computed
 in accordance with relevant tax rates and tax laws.  A provision is
 made for deferred tax for all timing differences arising between
 taxable income and accounting income at current or substantively
 enacted tax rates.
 
 Deferred tax assets are recognised only if there is reasonable
 certainty that they will be realised and are reviewed for the
 appropriateness of their respective carrying values at each balance
 sheet date.
 
 13. Impairment of Assets :
 
 Assets are reviewed for impairment whenever events or changes in
 circumstances indicate that the carrying amount may not be recoverable.
 An impairment loss is recognised for the amount by which the assets''
 carrying amount exceeds its recoverable amount. The recoverable amount
 is the higher of the assets'' net selling price and its value in use.
 
 For the purpose of assessing impairment, assets are grouped at the
 lowest levels for which there are separately identifiable cash flows
 (cash generating units).
 
 14. Miscellaneous Expenditure :
 
 Expenditure on Voluntary Retirement Scheme (VRS) of employees had been
 amortised in equal installments from the year in which the same was
 incurred till periods ended December 31, 2010 in accordance with the
 transitional provision of Accounting Standard - 15 on Employee
 Benefits.
 
 15. Provision and Contingencies :
 
 The Company creates a provision when there is present obligation as a
 result of a past event that probably requires an outflow of resources
 and a reliable estimate can be made of the amount of obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that probably will not require an
 outflow of resources or where a reliable estimate of the obligation can
 not be made.