1.  Estimated amount of Contracts remaining to be executed on Capital
 Account (net of advances) and not provided for Rs. 22,09,95.65 lacs.
 (Previous year Rs. 19,61,96.99 lacs).
 
 2.  Contingent Liabilities
 
 a.  Letters of Credit / Bank Guarantees Rs.20,91,80.20 lacs. (Previous
 year Rs. 13,20,91.02 lacs)
 
 b.  The Collector of Electricity Duty, Gandhinagar ( Gujarat) had
 issued notices classifying the business activities of the Company as 
 Storage instead of  Industrial Undertaking and hence levied
 Electricity Duty @ 45% instead of 20% of the consumption charges and
 charging 70 paise per unit on the power generated by the Company for
 its own consumption. The Company has challenged the legality and
 validity of the notices by way of two writ petitions, which is pending
 before the Gujarat High Court. Meanwhile Company continues to make
 payment of Electricity Duty @15% on the basis of the stay order granted
 by the High Court.
 
 The High Court has clubbed similar matters pending before it and is
 being tried together. Court has so far concluded the arguments of all
 the Petitioners and is now listed for the arguments of GEB .The total
 contingent liability till March 31,2011 calculated on the differential
 payable ( 25% for HTP-II A as classified by GEB and what is actually
 paid by Company on HTP-I rate ie 15%) is Rs. 13,87.34 lacs (Previous
 year Rs.13,36.69 lacs).
 
 c.  The Company has filed a writ petition before the Gujarat High Court
 challenging the legality and correctness of the notice dated April 1,
 2006 from the Collector of Stamps, Bharuch stating that pursuant to the
 amendment to Section 24 of the Bombay Stamp Act ,1958, the Company is
 required to pay stamp duty @ Re.1 per Rs.1000/ or part thereof of the
 value mentioned in the Delivery Order of the goods imported through
 ports in Gujarat. The Honorable High Court of Gujarat vide its order
 dated February 24, 2010 has upheld the plea of the Company and quashed
 the notice issued by the Stamp Authorities. The Stamp Authorities have
 filed an appeal on 14.12.2010, well beyond the limitation period for
 filing appeal.  Delay is condoned by the Court and appeal is pending
 for hearing. The contingent liability from the effective date of
 amendment i.e. April 1, 2006 till March 31, 2011 on the CIF value is
 estimated to be Rs.3,708.52 Lacs. ( Previous year till March 31, 2010
 Rs. 2,589.13 lacs)
 
 The future cash flow of items (b) & (c) are determinable only on
 receipt of the decision / judgment from the respective authorities.
 
 d.  Advances recoverable in cash or in kind or for value to be received
 (Schedule 11) includes service tax of Rs. 40.05 crores on vessel hire
 charges (including interest of Rs.2.97 crore) paid under protest for
 the period from 16th May 2008 to 30th September 2009 under section
 65(105)(zzzzj) of the Finance Act, 1994 (as amended) - Supply of
 Tangible Goods for Use. Based on the opinion of the tax consultants,
 the Company is of the view that the demand is not tenable and the
 Company has filed a refund claim for the same with the Service tax
 Department. Further, in the event of non refund of claim, the Company
 has counter claim of the amount from the Off takers with interest.
 Thus, no provision is considered necessary by the management.
 
 3.  Custom Duty on import of Project material / equipment has been
 assessed provisionally (current and previous years) and additional
 liability, if any, on this account will be provided on final
 assessment.
 
 4.  The Company has not received any information from suppliers or
 service providers, whether they are covered under the Micro, Small and
 Medium Enterprises (Development) Act, 2006. Disclosure relating to
 amount unpaid at the year-end together with interest payable, if any,
 as required under the said Act are not ascertainable.
 
 5.  Segment Reporting (AS – 17)
 
 Since the Company primarily operates in one segment – Natural Gas
 Business, segment reporting as required under Accounting Standard - 17
 is not applicable. There is no reportable geographical segment either.
 
 6.  Related Party Transactions (AS – 18)
 
 a) Related parties and their relationships
 
 i.  Promoters
 
 Indian Oil Corporation Limited Bharat Petroleum Corporation Limited Oil
 & Natural Gas Corporation Limited GAIL (India) Limited
 
 ii.  Key Managerial Personnel (KMP)
 
 P Dasgupta (Managing Director & CEO) (Till 30th June 2010)
 A K Balyan (Managing Director & CEO) (Since 16th July 2010)
 Amitava Sengupta (Director – Finance & Commercial)
 C S Mani (Director – Technical)
 
 b) Transactions with the above in the ordinary course of business
 
 7.  In terms of para 10 of Accounting Standard 16 Borrowing Costs
 Rupees 21,72.86 lacs (previous year Nil) has been reduced from the
 Interest and Finance Charges (Schedule 5 – Capital Work in Progress)
 being income on temporary surplus invested out of borrowings related to
 Capital Expenditures.
 
 8.  In respect of external commercial borrowing of USD 150.00 million
 from International Finance Corporation, Washington D.C., USA
 outstanding as on 31st March, 2011, the Company has entered into
 derivative contracts to hedge the loan including interest. This has the
 effect of freezing the rupee equivalent of this liability as reflected
 under the Secured Loans (Schedule No. 3). Thus there is no impact in
 the Profit & Loss account, arising out of exchange fluctuations for the
 duration of the loan. Consequently, there is no restatement of the loan
 taken in foreign currency. The interest payable in Indian Rupees on the
 derivative contracts is accounted for in the Profit & Loss account.
 
 9.  There is no impairment loss of any asset that has occurred in
 terms of AS – 28.
 
 10.  The Company has claimed deduction under section 80IA of the Income
 Tax Act, 1961 in respect of Power Generation and Port Undertaking in
 its Ta x Returns. However, provision for income tax has been made
 without considering the aforesaid deductions.
 
 11.  Previous year figures have been regrouped/rearranged wherever
 necessary, to correspond to current year figures.