1.  Corresponding figures of the previous year have been regrouped and
 reclassified wherever considered necessary to compare to this year''s
 figures.
 
 2.  Contingent Liability:
 
 a.  Bank Guarantee/Letter of Credit issued and outstanding as on 31st
 March, 2011 is for an amount of Rs. 54,50,00,000 (Previous year: Rs.
 12,50,00,000)
 
 b.  As at 31st March, 2011, ascertainable Claims against the Company by
 certain land owners seeking enhancement of compensation in respect of
 RoU acquired by the Company is Rs. 25.91 crores (Previous year: Rs.
 1.69 crores)
 
 c.  Excise Department had issued a demand of Rs. 17.90 lacs on Company
 towards service tax plus interest & penalty dues as Recipient of
 Services of Consulting Engineer from Non-Resident by the Company
 during the period F.Y. 2002-03, 2003- 2004 & 2004-2005. Company fled an
 appeal against the order with Commissioner of Central Excise (Appeals)
 & got the order in favour. However, Department has fled an appeal
 against the order of CCE (Appeals) before CESTAT.
 
 d.  Excise Department during it''s audit in 2008 had passed three orders
 demanding Rs. 142.95 crores, interest as applicable & penalty
 equivalent to basic demand, in relation to periods from 2005-2006 to
 2007-2008. Company has fled appeal against the same before the CESTAT.
 Out of the above, one of the matter involving an amount of Rs. 34.35
 crores as basic demand has been decided in Company''s favour by CESTAT.
 For other two matters involving basic demand Rs. 108.60 crores, Company
 has been granted unconditional stay of demand, based on strong merits
 of the case, pending final disposal.
 
 e.  Department has continued adjudicating the issue mentioned in point
 (d) above, which were pending before CESTAT for earlier years, for F.Y.
 2008-2009 and 2009-2010 (being subsequent periods) & passed
 corresponding orders demanding Rs.  78.40 Crores, interest as
 applicable & penalty equivalent to basic demand for F.Y. 2008-2009 and
 issued Show Cause Notices for Rs. 69 crores for F.Y. 2009-2010,.
 Against, order of Department for F.Y. 2008-2009, Company has fled an
 appeal before the CESTAT, pending final disposal.
 
 f.  Income Ta x assessments up to A.Y. 2008-2009 have been completed.
 Company had fled appeals against the various orders passed by assessing
 Officers, whereby appeals lying before Gujarat High Court for A.Y.
 2005-2006 - Rs. 0.151 crores, before the Income Tax Appellate Tribunal
 (ITAT) for A.Y. 2004-2005 to A.Y. 2009-2010 - Rs. 25.419 crores &
 before Commissioner of Income Tax (Appeals) for A.Y. 2008-2009 -
 Rs.13.54 crores.
 
 g.  Based on interpretation of the Acts & various judicial
 pronouncements in relation to similar matters, Company is of the view
 that these demands are likely to be deleted or it may be substantially
 reduced.
 
 3.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for is approximately Rs. 271.60 crores
 (Previous year: Rs. 687.85 crores).
 
 4.  As per AS-16 Borrowing Cost issued by ICAI, the Company has
 capitalised the borrowing cost amounting to Rs. 37.29 crores during the
 year. (Previous year: Rs.16.87 crores).
 
 5.  The Company has undertaken windmill project of 52.50 MW at three
 sites Maliya Miyana (Dist: Rajkot), Gorsar (Dist: Porbandar) and Adodar
 (Dist: Porbandar) in the State of Gujarat. Company has commissioned the
 balance capacity of 46.50 MW during the financial year.
 
 6.  During the year, Company has transferred Atul Spurline, Dhuva
 Spurline and Thangadh Spurline to ''GSPC Gas Company Limited'', a company
 promoted by ''Gujarat State Petroleum Corporation Limited'' to undertake
 city gas distribution activity at Book Value and the consideration
 would be discharged by way of allotment of fully paid up Equity Shares
 in ''GSPC Gas Company Limited''.
 
 7.  During the year, the Company, has changed it''s accounting policy
 for treatment of Land Compensation relating to RoU & non- refundable
 RoW Payments from part of Plant & Machinery to Intangible Asset for
 better presentation. Company will not amortize the said asset but will
 test it for impairment on periodic basis since the useful life is not
 accurately ascertainable. Because of the said change in policy, the
 Company has written back depreciation amounting to Rs. 23.38 crores
 provided up to F.Y. 2009-2010.
 
 8.  The company has changed the depreciation rate on natural gas
 pipelines from 8.33% per annum to 3.17% per annum on SLM basis w.e.f.
 1st April, 2010 in terms of approval of Ministry of Corporate Affairs
 vide its letter no. 45/2/2011-CL-III dated 13th May, 2011.  Due to
 change in depreciation rate, there is a reduction in depreciation
 charged to Profit & Loss Account amounting to Rs. 142.49 crores with
 consequent increase in PBT.
 
 9.  During the year, there has been no further development with regard
 to the ''Other Claims Recoverable'' in Schedule ''K''.
 
 10.  The balances of sundry debtors, creditors, loans and advances and
 deposits are subject to the conformation by the parties and provision
 for all liabilities is adequate in opinion of the Company.
 
 11.  SEGMENT REPORTING
 
 a.  Business Segments:
 
 The Company has identified and reported business segments taking into
 account nature of product and services, differing risks and returns and
 internal business reporting systems. The Company''s principal business
 is transportation of Gas through pipeline. Other business segment
 includes generation of electricity through windmill.
 
 b.  Segment Revenue and expense:
 
 Revenue and Expenses have been identified to a segment on the basis of
 operating activities of the segment. Revenue and Expenses which relate
 to common activities and are not allocable to segment on reasonable
 basis have been disclosed as Unallocable.
 
 c.  Segment Assets and liabilities:
 
 Segment Assets include all operating assets in respective segments
 comprising of Net Fixed Assets, Capital Work in Progress, Current
 Assets, Loans and Advances. Segment Liabilities include Operating
 Liabilities and Provisions.
 
 d.  The Company does not have geographical distribution of revenue
 hence secondary segmental reporting based on geographical locations of
 its customers is not applicable to the Company.
 
 12.  Employee Stock Option Plans
 
 ESOP - 2005:
 
 During the Financial Year 2005-2006, the Company instituted ESOP -
 2005. The Board of Directors and the Shareholders approved the plan in
 the meeting held on 13th October, 2005 and 18th October, 2005
 respectively, which provides for the issue of 23,27,940 Equity Shares
 to the employees of the Company and of Gujarat State Petroleum
 Corporation Ltd. The Compensation Committee administers ESOP - 2005.
 
 ESOP - 2010:
 
 During the Financial Year 2010-2011, the Company instituted ESOP -
 2010. The Board of Directors and the Shareholders approved the plan in
 their meetings held on 23rd August, 2010 and 21st September, 2010
 respectively, which provides for the issue of 62,40,000 Equity Shares
 to the employees of the Company and Gujarat State Petroleum Corporation
 Limited at future dates.  The Compensation Committee administers the
 ESOP-2010. The Compensation Committee has granted 21,28,925 Options to
 the eligible employees under ESOP - 2010.
 
 Accounting for ESOP:
 
 In accordance with SEBI (Employees Stock Option Plan and Employees
 Share Purchase Plan) Guidelines, 1999, the difference between market
 price as on the date of grant of Option and the exercise price of total
 no. of Options granted is recognized as an asset called ''Deferred ESOP
 Compensation'' and as a liability called ''ESOP Outstanding Account''. The
 asset called ''Deferred ESOP Compensation'' is amortized over the vesting
 period on straight line basis and considered as a part of ''Employee
 Cost'' in Profit & Loss Account, whereas the liability called ''ESOP
 Outstanding Account'' is derecognized at the time of exercise of Shares
 by the employees.
 
 13.  Company has exercised its Call Option on 30th March, 2011 to
 redeem the outstanding bonds and accordingly liability in regards to
 bond is discharged in full.
 
 14.  As at the Balance Sheet date Company has reviewed the carrying
 amounts of its assets and found that there is no indication that those
 assets have suffered any impairment loss. Hence no such impairment loss
 has been provided.
 
 15.  GSPL has applied to the ''Petroleum & Natural Gas Regulatory Board''
 in December 2008 for authorization of its Pipeline Network under
 section 18(1) of the ''Petroleum & Natural Gas Regulatory Board
 (Authorizing Entities to Lay, Build, Operate or Expand Natural Gas
 Pipelines) Regulations, 2008. The Board is currently processing the
 application of the Company.
 
 16.  Amount due for credit to Investor Education and Protection Fund
 towards Unclaimed Interest Warrant - Fixed Deposit from Public &
 Unclaimed Dividend is NIL (Previous year: NIL).