1.  Background
 
 Indraprastha Gas Limited (The Company) was incorporated on December
 23, 1998 under the Companies Act, 1956. The Company is listed on the
 Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
 
 The Company is a joint venture between GAIL (India) Limited and Bharat
 Petroleum Corporation Limited. The Companys business consists of sale
 of Piped Natural Gas (PNG) and manufacture and sale of Compressed
 Natural Gas (CNG).
 
 2.  Contingent liabilities
 
 a.  Income Tax cases
 
 In respect of Assessment Year 2001-02 to Assessment Year 2008-09, the
 department disallowed certain claims made or set offs availed by the
 Company. This resulted into adjustments to past carried forward losses
 aggregating Rs.294.49 lakhs (Previous year Rs.294.49 lakhs) and demands
 raised aggregating Rs.1,208.18 lakhs (Previous year Rs. 868.26 lakhs)
 against which company has deposited Rs. 938.07 lakhs (Previous Year Rs.
 461.59 lakhs) under protest. The Company has filed appeals against the
 above which are pending at various stages.
 
 b.  Trade Tax case
 
 In respect of Assessment year 2007-08 the Trade Tax Department, Uttar
 Pradesh has raised a demand of Rs. 66.11 lakhs (Previous year Rs. Nil).
 The Company has filed appeal against the above which is pending with
 the authorities.
 
 c.  Bank Guarantees
 
 The companys total liability towards un-expired Bank Guarantees is
 Rs.4,550.81 lakhs (Previous year Rs.2,332.57 lakhs).
 
 3.  Capital commitments
 
 Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advances) Rs.35,684.63
 lakhs(Previous year Rs. 45,840.66 lakhs).
 
 4.  The Company has installed CNG Stations on land leased from various
 Government authorities under leases for periods ranging from one to
 five years. However, assets constructed/installed on such land are
 depreciated generally at the rates specified in Schedule XIV to the
 Companies Act, 1956, as the management does not foresee nonrenewal of
 the above lease arrangements by the Authorities.
 
 5.  Deposits from customers of natural gas, refundable on
 termination/alteration of the gas sales agreements, are considered as
 long term funds.
 
 6.  Segment reporting
 
 The Company operates in a single segment of Natural Gas Business mainly
 in the National Capital Region and therefore the disclosure
 requirements as per Accounting Standard 17 Segment Reporting” are not
 applicable to the Company.
 
 7.  Management has carried out a review of the carrying value of assets
 as at 31 March, 2011 in accordance with the provisions of Accounting
 Standard – 28, Impairment of Assets. Based on the review, the
 management is of the opinion that there are no impairment indicators
 that necessitate any adjustments to the carrying value of assets.
 
 8. Additional information pursuant to the provisions of paragraphs 3
 and 4 of Part II of Schedule VI of the Companies Act, 1956
 
 a.  Licensed and installed capacity
 
 The Company is operating on the basis of allocation of 2.70 Million
 Metric Standard Cubic Meters per day (MMSCMD) (Previous year 2.70
 MMSCMD) of natural gas on firm basis by the order from Ministry of
 Petroleum & Natural Gas.
 
 9. Foreign currency exposure:
 
 a.  As at 31 March, 2011 the company has outstanding forward contracts
 for imports amounting to USD 99.31 lakhs equivalent to Rs. 4,434.28
 lakhs (Previous year Nil) to hedge its foreign currency exposure.
 
 b.  Premium on account of forward exchange contracts to be recognised
 in Profit and Loss Account of subsequent accounting period aggregates
 Rs. 198.75 lakhs (Previous year Rs. Nil).
 
 c.  The Companys foreign currency exposure on accounts payable not
 hedged by a derivative instrument or otherwise as at 31 March, 2011 is
 as follows:
 
 10.  Disclosure pursuant to Accounting Standard 15 (revised 2005) on
 Employee Benefits
 
 a.  Gratuity plan
 
 The gratuity liability arises on retirement, withdrawal, resignation
 and death of an employee. The aforesaid liability is calculated on the
 basis of fifteen days salary (i.e. last drawn basic salary plus
 dearness allowance) for each completed year of service subject to
 completion of five years service.
 
 b.  Policy for recognising actuarial gains and losses
 
 Actuarial gains and losses arising from experience adjustments and
 effects of changes in actuarial assumptions are immediately recognised
 in the statement of profit and loss account as income or expense.
 
 c.  The following tables set out the status of the unfunded gratuity
 plan and amounts recognised in the Companys financial statements as at
 31 March, 2011:
 
 Demographic assumptions:
 
 1.  Retirement age 60 years
 
 2.  Mortality rate Published rates under LIC (1994-96) mortality tables
 
 18. Related Party Transactions
 
 a.  List of related parties Promoter Venturer
 
 - GAIL (India) Limited
 
 - Bharat Petroleum Corporation Limited
 
 Key management personnel (KMP)
 
 - Mr. Rajesh Vedvyas - Managing Director
 
 - Mr. Manmohan Singh - Director Commercial
 
 11.  Interest accrued and due Rs.215.46 lakhs (Previous year Rs. Nil)
 was funded in the bank account on the balance sheet date and same was
 debited on the next working day by the bank as per their prevailing
 practice.
 
 12.  Corresponding figures of the previous year have been regrouped/
 reclassified, wherever considered necessary, to conform to current year
 figures.
 
 13. Schedules1 to 17 form an integral part of the financial statements.