a) ACCOUNTING CONVENTION:
 
 The financial statements have been prepared in accordance with
 applicable Accounting Standards in India and in accordance with the
 Historical Cost Convention on Accrual Basis.
 
 b) USE OF ESTIMATES:
 
 The preparation of financial statements requires management to make
 certain estimates and assumptions that affect the amounts reported in
 the financial statements and notes thereto. Differences between actual
 results and estimates are recognized in the period in which they
 materialize.
 
 c) FIXED ASSETS & CAPITAL WORK IN PROGRESS:
 
 i. The Company is working on various sections of gas transmission
 pipelines simultaneously and each section is considered to be
 independent.
 
 ii. The Company capitalises to a project all the costs directly
 attributable to complete the project. These costs include expenditure
 incurred on pipelines, plant and machinery, cost of laying of pipeline,
 cost of reconnaissance survey, detailed engineering.  Moreover, the
 Company capitalises interest on the borrowings for a project.
 
 iii. All the expenditure on a project, till it is commissioned, is kept
 as Capital Work in Progress (CWIP) and after commissioning the same is
 transferred to Gross Block.
 
 d) INTANGIBLE ASSETS:
 
 Expenditure incurred on ''software'' & ''Right of Use and Right of Way in
 Land'' which are expected to provide future enduring economic benefits
 are capitalised as ''Intangible Assets''.
 
 e) DEPRECIATION:
 
 i. Depreciation on gas transmission pipeline(s) is provided at 3.17 %
 on Straight-Line Method (SLM) considering useful life of thirty years.
 Depreciation on other fixed assets is provided using Written Down Value
 Method (WDV).
 
 ii. The depreciation rates used are as prescribed under Schedule XIV of
 the Companies Act, 1956. Depreciation on assets is provided on pro rata
 basis according to the period each asset is put to use during the
 period.
 
 iii.  Assets costing up to Rs.5,000/- are depreciated fully in the year
 of purchase.
 
 iv. Cost incurred on intangible assets software is amortized at 40% on
 Written Down Value Method whereas the cost incurred on ''Right of Use
 and Right of Way on Land'' is not amortized but will be tested for
 impairment on periodic basis.
 
 v.  Depreciation on Lease Hold Land is provided on SLM basis over its
 unexpired period of lease.
 
 vi.  Depreciation on Windmill is provided on WDV basis as per rate
 prescribed under Schedule XIV of the Companies Act, 1956.
 
 f) INVESTMENT:
 
 i. Long term investments are carried at cost after deducting provision,
 in case where fall in market value has been considered of permanent
 nature.
 
 ii.  Current investments are valued at lower of cost or market value.
 
 g) INVENTORY:
 
 Inventories including stock of spares and line pack gas not meant for
 sale in ordinary course of business are valued at moving average cost.
 
 h) RETIREMENT BENEFITS:
 
 i. The Company has defined contribution plan for Provident Fund and the
 Company''s contribution thereto are charged to the Profit and Loss
 Account.
 
 ii.  The Company has defined contribution plan for Superannuation Fund.
 
 iii.  The Company has participated in - Group Gratuity Scheme of Life
 Insurance Corporation of India.
 
 iv.  Liability in respect of defined benefit plan is accounted for on
 actuarial valuation basis at the year / period end.
 
 v.  Actuarial gains/losses are recognized in the statement of Profit &
 Loss Account in the year of occurrence.
 
 i) BORROWING COSTS:
 
 The Company is capitalizing borrowing costs that are directly
 attributable to the acquisition or construction of fixed assets. For
 interest capitalization, the capital cost of a particular project is
 identified against a borrowing in terms of period of construction and
 the interest for the relevant period is added to the capital cost till
 the particular project is capitalized and thereafter the interest is
 charged to the Profit and Loss Account. In addition to it, wherever
 applicable, interest on mobilization advance extended by the company to
 the contractors, is adjusted against the relevant project cost.
 
 j) FOREIGN CURRENCY TRANSACTIONS:
 
 Transactions in foreign currency are recorded at the exchange rates
 prevailing at the dates of the transactions. Gains/losses (if any)
 arising out of fuctuation in exchange rates on settlement are
 recognized in the Profit and Loss Account.
 
 k) REVENUE RECOGNITION:
 
 All income and expenses are recognized on accrual basis.
 
 The Company invoices customers (gas transportation business) on
 fortnightly basis and the revenue is recognized on the last day of each
 fortnight. Income from transportation of gas is accounted net of
 Service Tax.
 
 Income from sale of windmill generated electricity is recognized on
 last day of respective month.
 
 Interest expense and income are recognized on time proportion basis.
 
 Expenditure in the Profit & Loss Account is provided for the period for
 which the expenditure is incurred. Adequate provisions are made for all
 known liabilities.
 
 l) AMORTISATION:
 
 Preliminary expenses are being written off in 10 equal installments.
 IPO expenses are being written off in 5 equal installments.
 
 m) TAXATION:
 
 Provision for current tax is made after taking into consideration
 benefits admissible under the provisions of the Income Tax Act, 1961.
 Deferred tax resulting from timing difference is accounted for using
 the tax rates and laws that have been enacted as on the Balance Sheet
 date. The deferred tax asset is recognized and carried forward only to
 the extent that there is a reasonable certainty that the assets will be
 realized in future.
 
 n) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 
 Contingent assets are neither recognized nor disclosed in financial
 statements.
 
 Contingent liabilities if material are disclosed by way of notes to
 accounts.
 
 o) EARNINGS PER SHARE:
 
 The Company reports Earnings Per Share (EPS) in accordance with
 Accounting Standard-20 on Earnings Per Share. Basic EPS is computed by
 dividing net Profit for the period by weighted number of Equity Shares
 outstanding during the period.
 
 The number of Shares used in computing diluted EPS comprises the
 weighted average number of Equity Shares considered for deriving basic
 EPS, and also the weighted average number of Equity Shares that could
 have been issued on the conversion of all dilutive potential Equity
 Shares.
 
 p) IMPAIRMENT OF ASSETS:
 
 At each Balance Sheet date, the Company reviews the carrying amounts of
 its assets to determine whether there is any indication that those
 assets suffered any impairment loss. If any such indication exists, the
 recoverable amount of the asset is estimated in order to determine the
 extent of impairment loss. Recoverable amount is the higher of an
 asset''s net selling price and value in use.  In assessing value in use,
 the estimated future cash-flow expected from the continuing use of the
 assets and from its disposal is discounted to their present value using
 a pre-tax discount rate that reflects the current market assessments of
 time value of money and the risk specific of the assets. Reversal of
 impairment loss is recognized immediately as income in the Profit and
 Loss Account.