The financial statements are prepared under the historical cost
 convention, on the accrual basis of accounting and in accordance with
 the Generally Accepted Accounting Principles (GAAP) in India and
 comply with the accounting standards prescribed by the Companies
 (Accounting Standards) Rules, 2006, to the extent applicable and in
 accordance with the provisions of the Companies Act, 1956, as adopted
 consistently by the Company. The significant accounting policies are as
 follows:
 
 a.  Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities on the date of
 financial statements. Actual results in future could differ from those
 estimates. Any revision to accounting estimates is recognised
 prospectively in current and future periods.
 
 b.  Fixed assets
 
 I. Fixed assets are stated at their original cost including freight,
 duties, taxes and other incidental expenses relating to acquisition and
 installation and are net of recoveries from PNG customers towards the
 cost of installation of PNG pipeline network.
 
 ii. Expenditure incurred during the period of construction, including
 all direct and indirect expenses, incidental and related to
 construction, is carried forward and on completion, the costs are
 allocated to the respective fixed assets.
 
 iii. Gas distribution systems are commissioned on commencement of
 supply of gas to consumers. In the case of commissioned assets where
 final payment to the contractors is pending, capitalisation is made on
 an estimated basis pending receipt of final bills from the contractors,
 and subject to adjustment in cost and depreciation in the year of final
 settlement.
 
 iv. Insurance spares are capitalised with the cost of plant and
 machinery and depreciated over the useful life of the respective asset.
 
 v.  Capital inventory represents items of capital nature lying in the
 stores and valued at cost.
 
 vi.  Intangible assets comprise Computer software/license.
 
 vii. The carrying amount of assets, including those assets that are not
 yet available for use, are reviewed at each balance sheet date to
 determine whether there is any indication of impairment. If any such
 indication exists, recoverable amount of asset is determined. An
 impairment loss is recognised in the profit and loss account whenever
 the carrying amount of an asset exceeds its recoverable amount. An
 impairment loss is reversed only to the extent that the carrying amount
 of asset does not exceed the net book value that would have been
 determined if no impairment loss had been recognised.
 
 d.  Investments
 
 Current investments are stated at the lower of cost or fair value.
 
 e.  Inventories
 
 i.  Stores and spares are valued at cost on weighted average basis.
 Provision for obsolescence is made where necessary.
 
 ii.  Stock of CNG in cascades and Natural Gas in pipelines is valued at
 the lower of cost, on First in First out (FIFO) basis or net realisable
 value.
 
 iii.  Closing stock of Natural Gas in pipelines and cascades is
 estimated on a volumetric basis.
 
 f.  Revenue recognition
 
 i.  Revenue on sale of PNG is recognised based on consumption by the
 customer.
 
 ii.  Revenue on sale of CNG is recognised on sale of gas to customers
 from CNG stations.
 
 iii.  Income from deposits is recognised on a time proportion basis.
 Dividend income from investment in mutual funds is recognised when the
 Companys right to receive payment is established.
 
 g. Foreign currency transactions
 
 Transactions in foreign currency are translated at the exchange rates
 prevailing on the date of the transaction. Monetary foreign currency
 assets and liabilities are translated at exchange rates prevailing as
 at the year-end. Exchange gains or losses arising out of fluctuation in
 exchange rates on settlement during the year and/or translation at year
 end are recognised in the profit and loss account.The premium paid on
 forward contracts to hedge foreign currency exposure is recognised over
 the life of the contract.
 
 h.  Borrowing costs
 
 Borrowing costs that are directly attributable to the acquisition or
 construction of an eligible capital asset is capitalised as a part of
 the cost of that asset. Other borrowing costs are recognised as an
 expense in the period in which they are incurred.
 
 i.  Employee benefits
 
 Incremental liabilities in respect of gratuity, leave encashment and
 sick leave are provided on the basis of actuarial valuation as at the
 balance sheet date and are charged to the profit and loss account.
 Contributions for provident fund are charged to the profit and loss
 account as incurred. Short term employee benefits are recognised as an
 expense at the undiscounted amount in the profit and loss account of
 the year in which the related service is rendered.
 
 j.  Operating leases
 
 Lease rentals are recognised as an expense in the profit and loss
 account on straight-line basis over the term of the lease.
 
 k.  Taxation
 
 Income tax expense comprises current tax and deferred tax. Current Tax
 is amount of tax for the period determined in accordance with the
 Income-tax Act, 1961.Deferred Tax charge or credit reflects the tax
 effects of timing differences between accounting income and taxable
 income for the period. The deferred tax charge or credit and the
 corresponding deferred tax liability or deferred tax asset are
 recognised using the tax rates that have been enacted or substantially
 enacted by the Balance Sheet date. Deferred tax assets are recognised
 only to the extent there is reasonable certainty of realisation in the
 future. Such assets are reviewed at each balance sheet date to reassess
 realisation. Where there are unabsorbed depreciation and carry forward
 losses under tax laws, deferred tax assets are recognised only if there
 is virtual certainty supported by convincing evidence that such
 deferred tax assets can be realised in future.
 
 l.  Earnings per share
 
 Basic earning per share is computed using the weighted average number
 of equity shares outstanding during the year.  Diluted earning per
 share is computed using the weighted average number of equity and
 dilutive equity equivalent shares outstanding during the year, except
 where the results would be anti dilutive.
 
 m.  Provisions and contingencies
 
 A provision is recognised in the financial statements where there
 exists a present obligation as a result of a past event, the amount of
 which can be reliably estimated, and it is probable that an outflow of
 resources would be necessitated in order to settle the obligation.
 Contingent liability is a possible obligation that arises from past
 events and the existence of which will be confirmed only by the
 occurrence or non-occurrence of one or more uncertain future events,
 not wholly within the control of the enterprise, or is a present
 obligation that arises from past events but is not recognised because
 either it is not probable that an outflow of resources embodying
 economic benefits will be required to settle the obligation, or a
 reliable estimate of the amount of the obligation cannot be made.
 
 n.  Deposits with Government Agencies, Local Authorities and Other
 Electricity Companies
 
 Deposits given to Government agencies, local authorities and other
 electricity companies which are perennial in nature are charged to
 revenue in the year of payment.