1. Summary of Significant Accounting Policies

1.01 Accounting Convention

The financial statements are brpared on accrual basis of accounting under historical cost convention in accordance with generally accepted accounting principles in India and the relevant provisions of the Companies Act, 2013 including accounting standards and Companies (Accounts) Rules,2014 notified there under.

1.02 Use of Estimates

The brparation of financial statements requires estimates and assumptions which affect the reported amount of assets, liabilities, revenues and expenses of the reporting period. The difference between the actual results and estimates are recognized in the period in which the results are known or materialized.

1.03 Inventories

(a) Stock of LNG and Natural Gas in pipelines is valued at cost on First in First out (FIFO) basis or net realizable value, whichever is lower.

(b) Raw materials and finished products are valued at weighted average cost or net realizable value, whichever is lower. Finished products include excise duty and royalty wherever applicable.

(c) Stock in process is valued at weighted average cost or net realisable value, whichever is lower. It is valued at weighted average cost where the finished products in which these are to be incorporated are expected to be sold at or above the weighted average cost.

(d) Stores and spares and other material for use in production of inventories are valued at weighted average cost or net realisable value, whichever is lower. It is valued at weighted average cost where the finished products in which they will be incorporated are expected to besoldat/or above cost.

(e) Surplus / Obsolete Stores and Spares are valued at cost or net realisable value, whichever is lower.

(f) Surplus / Obsolete Capital Stores, other than held for use in construction of a capital asset, are valued at lower of cost or net realizable value.

(g) Renewable Energy Certificates (RECs) are valued at cost on First in First out (FIFO) basis or net realizable value, whichever is lower.

1.04 Debrciation / Amortisation

(a) Debrciation on Fixed Assets other than those mentioned below is provided in accordance with the useful life as specified in Schedule II of the Companies Act, 2013, on straight line method (SLM) on pro­rata basis (monthly pro-rata for bought out assets).

(i) Furniture and Electric Equipment's provided for the use of employees are debrciated on the basis of 7 years useful life. Mobile Phones provided for the use of employees are debrciated on the basis of 2 years useful life.

(ii) Cost of the leasehold land is amortised over the lease period except perpetual leases

(iii) Debrciation due to price adjustment in the original cost of fixed assets is charged prospectively.

of which is not with the Company, is charged off to Revenue.

(v) Intangible assets are amortised on Straight Line Method (SLM) over the useful life not exceeding five years from the date of capitalization.

(vi) Cost of the Right of Use (ROU) is amortized considering life of RoU as 99years.

(vii) After impairment of assets, if any, debrciation is provided on the revised carrying amount of the assets over its remaining useful life.

(b) Capital assets facilities installed at the consumers brmises on the land whose ownership is not with the company, has been debrciated on SLM basis in accordance with the useful life as specified in Schedule II of the Companies Act, 2013.

1.05 Revenue recognition

(a) Sales are recognized on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude value added tax. Any retrospective revision in prices is accounted for in the year of such revision.

(b) Income from Consultancy/Contract Services, if any, is recognized based on Proportionate Completion Method.

(c) Dividend income is accounted for when the right to receive it is established.

(d) Claims (including interest on delayed realization from customers) are accounted for, when there is no significant uncertainty that the claims are realizable.

(e) Liability in respect of MGO of Natural gas is not provided for where the same is secured by MGO recoverable from customers. Payments/receipts during the year on account of MGO are adjusted on receipt basis.

(f) Minimum charges relating to transportation of LPG are accounted for on receipt basis.

(g) Prepaid expenses and prior period expenses/income uptoRs.5 lacs in each case are charged to relevant heads of account of the current year.

1.06 Fixed Assets

(a) Fixed Assets are valued at historical cost on consistent basis and are net of refundable taxes & levies wherever applicable. All costs relating to acquisition of fixed assets till commissioning of such assets are capitalized. In the case of commissioned assets where final payment to the Contractors is pending, capitalization is made on provisional basis, including provisional liability pending approval of Competent Authority, subject to necessary adjustment in cost and debrciation in the year of settlement.

(b) Machinery spares, which can be used only in connection with an item of fixed asset and their use is expected to be irregular, are capitalised with the cost of that fixed asset and are debrciated fully over the remaining useful life of that asset.

1.07 Intangible Assets

Intangible assets like software, licenses and right-of-use of land including sharing of ROU with other entities which are expected to provide future enduring economic benefits are capitalized as Intangible Assets.

1.08 Capital Work in Progress

(a) Crop compensation is accounted for under Capital Work-in-Progress on the basis of actual payments/estimated liability, as and when work commences where ROU is acquired.

(b) The capital work in progress includes material in Transit/ value of materials / equipment / Services, etc. received at site for use in the projects.

(c) Pre-project expenditure relating to Projects which are considered unviable / closed is charged off to Revenue in the year of declaration/closure.

1.09 Expenses Incurred During Construction Period

All revenue expenditure incurred during the year, which is exclusively attributable to acquisition / construction of fixed assets, is capitalized at thetime of commissioning of such assets.

1.10 Foreign Currency Translation

(a) Transactions in foreign currency are initially accounted at the exchange rate brvailing on the transaction date.

(b) Monetary items (such as Cash, Receivables, Loans, Payables, etc.) denominated in foreign currencies, outstanding at the year end, are translated at exchange rates (BC Selling Rate for Payables and TT Buying Rate for Receivables) brvailing at year end.

(c) Non-monetary items (such as Investments, Fixed Assets, etc), denominated in foreign currencies are accounted at the exchange rate brvailing on the date of transaction(s).

(d) Any gains or loss arising on account of exchange difference either on settlement or on translation is adjusted in the Statement of Profit & Loss except in case of long term foreign currency monetary items relating to acquisition of debrciable capital asset in which case they are adjusted to the carrying cost of such assets and in other cases, accumulated in "Foreign Currency Monetary item Translation Difference Account" in the financial statements and amortized over the balance period of such long terms asset or liability, by recognition as income or expenses in each of such period.

(e) Premium /discount arising at the inception of the forward contracts entered into to hedge foreign currency risk are amortized as expense / income over the life of the  contract. Outstanding forward contracts as at the reporting date are restated at the exchange rate brvailing on that date.

In respect of other derivative contracts entered into, to hedge Foreign Currency and Interest rate risk, gain/ losses on settlement and losses on restatement (by marking them to market) at the Balance Sheet date are recognised in the Statement of profit & loss.

1.11 Grants

In case of debrciable assets, the cost of the assets is shown at gross value and grant thereon is taken to Capital Reserve which is recognised as income in the Statement of Profit and Loss over the useful life period of the asset.

1.12 Investments

Investments are classified into current and non-current investments. Current investments are stated at lower of cost or market value. Non-current investments are stated at cost and provision for diminution in

value is made only if such decline is other than temporary in the opinion of management.

1.13 Employees Benefits

(a) All short term employee benefits are recognized at the undiscounted amount in the accounting period in which they are incurred.

(b) The Company's contribution to the Provident Fund is remitted to a separate trust established for this purpose based on a fixed percentage of the  eligible employee's salary and debited to Statement of Profit and Loss. Further, the company makes provision as per actuarial valuation towards any shortfall in fund assets to meet statutory rate of interest in the future period, to be compensated by the company to the Provident Fund Trust.

(c) Employee Benefits under Defined Benefit Plans in respect of leave encashment, compensated absence, post retirement medical scheme, long service award and other terminal benefits are recognized based on the brsent value of defined benefit obligation, which is computed on the basis of actuarial valuation using the Projected Unit Credit Method. Actuarial liability in excess of respective plan assets is recognized during the year.

(d) Provision for gratuity as per actuarial valuation is funded with a separate trust.

1.14 Borrowing Cost

Borrowing cost of the funds specifically borrowed for the purpose of obtaining qualifying assets and eligible for capitalization along with the cost of the assets, is capitalized up to the date when the asset is ready for use after netting off any income earned on temporary investment of such funds.

1.15 Taxes on Income

Provision for current tax is made as per the provisions of the Income Tax Act, 1961. Deferred Tax Liability/Asset resulting from' timing difference' between book profit and taxable profit is accounted for considering the tax rate and laws that have been enacted or substantively enacted as on the Balance Sheet date. Deferred Tax Asset, if any, is recognized and carried forward only to the extent that there is virtual certainty that the asset will be realized in future.

1.16 R&D Expenditure

All expenditure, other than on capital account, on research and development are debited to Statement of Profit and Loss.

1.17 Impairment

The Carrying amount of assets are reviewed at each Balance Sheet date. In case there is any indication of impairment based on Internal/External factors. Impairment loss is recognized wherever the carrying amount of asset exceeds its recoverable amount.

1.18 Provisions, Contingent Liabilities, Contingent Assets & Capital Commitments

(a) Provisions involving substantial degree of estimation in measurement are recognized when there is a brsent 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 the financial statements. Contingent liabilities exceeding Rs.5 Lacs in each case are disclosed by way of notes to accounts except when there is remote possibility of any out flow in settlement.

(b) Estimated amount of contracts remaining to be executed on capital accounts are disclosed in each case above Rs.5 lacs.

1.19 Exploration and Development Costs

i) The Company follows Successful Efforts Method for accounting f Oil & Gas exploration and production activities, which includes:-

(a) Survey Costs are recognized as revenue expenditure in the year in which these are incurred.

(b) Cost of exploratory wells is carried as 'Exploratory wells in progresses'. Such exploratory wells in progress are capitalized in the year in which the Producing Property is created or is written off in the year when determined to be dry/abandoned.

(c) Cost of all "exploratory wells in progress" is debited to Statement of Profits and Loss except of those wells for which there are reasonable indications of sufficient quantity of reserves and the enterprise is making sufficient progress assessing the reserves and the economic and operating viability of the project.

ii) Capitalization of Producing Properties

a) Producing Properties are capitalized as "completed wells / producing wells" when the wells in the area / field are ready to commence commercial production on establishment of proved developed oil and gas reserves.

b) Cost of Producing Properties includes cost of successful exploratory wells, development wells, initial debrciation of support equipments & facilities and estimated future abandonment cost.

iii) Depletion of Producing Properties

Producing Properties are depleted using the "Unit of Production Method (UOP)".The depletion or unit of production charged for all the capitalized cost is calculated in the ratio of production during the year to the proved developed reserves at the year end.

iv) Production cost of Producing Properties

Company's share of production costs as indicated by Operator consists of br well head and post well head expenses including debrciation and applicable operating cost of support equipment and facilities.

1.20 OTHERS

(a) Liquidated Damages/Price Reduction Schedule, if any, are accounted for as and when recovery is effected and the matter is considered settled by the Management. Liquidated damages / Price Reduction Schedule, if settled, after capitalization of assets are charged to revenue if below Rs.50 lacs in each case, otherwise adjusted in the cost of relevant assets.

(b) Insurance claims are accounted for on the basis of claims admitted by the insurers.

2. The Company has entered into Gas Transportation Agreements (GTAs) in the year 2010, with three shippers in Kashipur region, for transportation of gas. As per GTAs, Capacity Tranche (CT) date was fixed as 1st June 2011,15th December 2011 and 25th December 2011 for different shippers, which was revised to I5 June 2012. The CT completion date was informed to the shippers on 21st October 2014. An amount of Rs.562.6l crore, for the period 1st June 2012 to 21st October 2014, was not invoiced due to uncertainty of its realisation as per legal opinion obtained and in compliance to accounting standards. GAIL started invoicing for Ship or Pay charges with effect from 21st October 2014 (date of intimation of CT to the customers). Accordingly, an amount of Rs.103.86 crore (including Service Tax of Rs.11.42 crore) was invoiced for the period 22nd October 2014 to 31st March 2015, against which the Company is holding Bank Guarantee and Security Deposit amounting to Rs.69.99 crore. The customers have, inter alia, disputed the invoices and have taken up the matter with PNGRB who in-turn directed the Company to maintain the status quo. Pending the final disposal of the matter by the PNGRB, an amount of Rs.103.86 crore has been included in Sundry Debtors with corresponding provision of Rs.33.87 crore, i.e., the amount over and above the Bank guarantee and Security Deposit.

3. Disclosure as per AS 11 on "The effect of changes in Foreign Exchange Rates"

(i) The amount of exchange difference (net) recognized in the Statement of Profit & Loss is Rs.50.97 crore (Previous Year: Rs.25.21 crore).

(ii) The amount of exchange difference debited to the carrying amount of fixed assets is Rs.198.60 crore (Previous Year: Rs.502.49 crore).

4. The Company has a joint venture agreement along with NTPC, MSEB and other Financial Institutions in Ratnagiri Gas and Power Private Limited (RGPPL) with an equity investment of Rs.974.31 crore, and the Company's share of equity as on 31st March 2015 (after conversion of partial loans / dues to financial institutions during FY 2014-15), is 28.91%. As per the latest available audited financial statement sthere are losses in the books of RGPPL, because of non-operation of power block and non-availability of domestic gas, indicating existence of uncertainty and doubt on the ability of the RGPPL to continue as going concern. However, the management of the Company is of the opinion that the investment of the Company being strategic in nature, with future turnaround plans, there is no permanent diminution in the value of its investment as on 31st March 2015, requiring any provision at this

5. The required disclosure under the Revised AS15 is given as below:

(i) Superannuation Benefit Fund (Defined Contribution Fund)

The Company has paid for an amount of Rs.59.22 crore (Previous Year: Rs.52.07 crore) towards contribution to Superannuation Benefit Fund Trust and charged to statement of profit and loss.

(ii) Provident Fund

The Company has paid contribution of Rs.48.58 crore (Previous Year Rs.43.83 crore) to Provident Fund Trust at brdetermined fixed percentage of eligible employees' salary and charged to statement of profit and loss. Further, the obligation of the Company is to make good shortfall, if any, in the fund assets based on the statutory rate of interest in the future period. Duringthe year, surplus in the fund is more than the interest rate guarantee liability of the Company hence, the Company has reversed a provision of Rs.2.31 crore (PreviousYear Rs.24.72 crore), as per actuarial valuation and the balance provision to meet any short fall in the future period to be compensated by the Company to the Provident Fund Trust as on 31st March 2015 is nil (Previous Year Rs.2.31 crore).

(iii) Other Benefit Plans

a) Gratuity

15 days salary for every completed year of service. Vesting period is 5years and payment is restricted toRs.10 lakh.

b) Post Retirement Medical Scheme (PRMS)

The Company has Post Retirement Medical Scheme under which eligible ex-employees are provided medical facilities upon payment of one time brscribed contribution. The liability for the same is recognised on the basis of actuarial valuation. Duringthe year. Company has made a provision towards the deficit in the liability as on 01.01.2007, having brsent value of Rs.114.48 crore as on 31st March 2015 as determined by the actuary in the statement of profit and loss, out of which Rs.106 crore has been booked as prior period expenses.

c) Earned Leave Benefit (EL)

Accrual 30 days per year. Encashment while in service 75% of Earned Leave balance subject to maximum of 90 days at a time, twice per calendar year. Encashment on retirement or superannuation maximum300 days.

d) Terminal Benefits (TB)

Atthe time of superannuation, employees are entitled to settle at a place of their choice and they are eligible for Transfer Traveling Allowance.

e) Half Pay Leave (HPL)

Accrual 20 days per year. Encashment while in service NIL. Full encashment on retirement.

f) Long Service Award (LSA)

On completion of specified period of service with the company and also at the time of retirement, employees are rewarded with Gold Coins of different weight based on the duration of service completed.

The following table summarizes the components of net benefit expenses recognized in the statement of profit and loss based on actuarial valuation.

Note:(i) The actuarial valuation takes into account the estimates of future salary increases, inflation, seniority, promotion and other relevant factors.

(ii) The management has relied on the overall actuarial valuation conducted by the actuary.

5. Disclosure as per Accounting Standard (AS)l6 on 'Borrowing Costs':

Borrowing costs capitalized during the year Rs.378.19 crore (Previous Year: Rs.351.35 crore).

6. MOP&NG had issued scheme of sharing of under recoveries on sensitive petroleum products. Duringthe year, the Company has given discounts amounting to Rs.1,000 crore (Previous Year Rs.igoo crore). Corresponding adjustment on account of Central Sales Tax (CST) amounting to Rs.g.42 crore (Previous Year Rs.12.83 crore) has been made.

7. (a) The Company is raising provisional invoices for sale of R-LN Gasthe  supplier Petronet LNG (PLL) is also raising provisional invoices on the Company since customs duty on import of LNG by PLL has been assessed on provisional basis.

(b) With effect from 1st April 2002, Liquefied Petroleum Gas (LPG) prices has been deregulated and is now based on the import parity prices fixed by the Oil Companies. However, the pricing mechanism is provisional and is pending finalization. Additional asset/liability or impact on profits, if any, arising due to such change, will be recognized on finalization of the pricing mechanism.

8. (i) Natural Gas Pipeline Tariff is subject to various Regulations issued  by Petroleum and Natural Gas Regulatory Board (PNGRB) from time to time. With a view to provide fair opportunity to the consumers and public to participate in the pipeline tariff determination, PNGRB by way of Public notice, issues Public Consultation Documents and solicits views of the stakeholders. Impact on profits, if any, is being recognized consistently as and when the pipeline tariff is revised by orders of PNGRB in accordance with these Regulations.

(ii) During the year, PNGRB have notified following 'Provisional' initial unit natural gas pipeline tariff orders, revising the tariff on lower side. Accordingly, the Company has derecognized the revenue amounting to Rs.44g.31 crore, as detailed below:

(iii) During the year, PNGRB vide Order No TO/02/2015 dated 3rc March'2015 have notified revised Petroleum and Petroleum Products Pipeline Transportation Tariff for Jamnagar Loni Pipeline (JLPL) effective from 20th December 2014. In compliance of the order, the Company has recognized the revenue by an amount of no.71 crore.

(iv) PNGRB has issued provisional tariff orders after various moderations, on account of capital employed, inflation rate, unaccounted gas loss, operating expenditure, volume devisor, future capex, working days etc. GAIL has filed appeals before the APTEL against the said moderations, in respect of following Tariff Orders, which are pending, and the relief, if any, will be accounted for in the year of decision:

(a) KG Basin,

(b) Dabhol-Bangalore,

(c) Kochi-Mangalore-Bangalore,

(d) Dadri-Bawana-Nangal,

(e) Chainsa-Jhajjar-Hissar,

(f) Cauvery Basin,

(g) Dukli-Maharajganj,

(h) Gujarat Network.

9. ONGC has raised debit notes dated 31st March2014forRs.l60.g5crore for the period 20th November 2008 to 31st March 2014 of differential transportation charges (difference between Rs.12 and Rs.226 per 1000 SCM) for its Uran-Trombay Pipeline based on provisional tariff order dated 30th December 2013 issued by PNGRB. The Company in-turn, raised the debit notes to its customers on back-to-back basis amounting to Rs.ig5.80 crore out of which Rs.41.83 crore has been realised up to 31st March 2015. These debit notes have been contested by major customers in Court of Law/PNGRB including legal notice against encashment of LC. Pending final decision, as on 31st March 2015, an amount of Rs.153.97 crore has been included in Sundry debtors and an amount of Rs.igi.l5 crore as payable to ONGC. In view of above, and the action plan for recovery initiated, the management is of the opinion that no provision is required at this stage.

10- As per the advice of MOPNG, ONGC raised debit notes dated 19* December 2013 for differential of Non-APM price for certain gas supplied for the period February 2012 to November 2013 amountingto Rs.256.34 crore including VAT on GAIL who in-turn raised the corresponding debit notes Rs.236.41 crore (Rs.2.90 crore realised up to 3151 March 2015 and net of Rs.32.go crore (including VAT) (the amount already recovered and credited to Gas Pool Account) to the allottee customers as on 31st March 2014.These customers have disputed the claims raised by the Company for retrospective change in gas price. In terms of the legal opinion obtained, the allottee customers are not liable to pay, and also observed that the debit note/invoices raised by ONGCL are based on deeming fiction and do not reflect the factual position, and in its record could not create a legally justifiable basis to raise debit note/invoice. The Company has referred the matter to MOPNG where decision is still pending. In view of above, an amount of Rs.233.51 crore (including Marketing Margin) is included in Sundry Debtors, and an amount of Rs.222.83 crore payable to ONGC. In view of above the management is of the opinion that no provision is required at this stage.

11. PNGRB on ig.02.2014 notified insertion in Affiliate Code of Conduct that an entity engaged in both marketing and transportation of natural gas shall create a separate legal entity for transportation of natural gas by 31.03.2017 and the right of first use shall, however, remain with the affiliate of such entity. The Company has challenged the said PNGRB notification before Delhi High Court by way of writ and the same is pending adjudication.

12. In compliance of AS 17 on "Segment Reporting" as notified under the Companies Accounting Standard Rules 2006, read with Companies (Accounts) Rules, 2014, the Company has adopted following Business segments as its reportable segments:

(i) Transmission services

a) Natural Gas

b) LPG

(ii) Natural Gas Marketing

(iii) Petrochemicals

(iv) LPG and other Liquid Hydrocarbons

(v) Other Segments (include GAIL TEL, E&P City Gas and Power Generation)

There are no geographical segments.

The disclosures of segment wise information is given as per Annexure-A.

11. In compliance of AS 18 on" Related Party Disclosures" as notified under Companies Accounting Standard Rules 2006, read with Companies (Accounts) Rules, 2014, the names of related parties, nature of relationship and detail of transactions entered therewith are given in Annexure-B.

12. (i) In compliance of AS 22 on "Accounting for Taxes on Income" as  notified under Companies Accounting Standard Rules 2006, read  with Companies (Accounts) Rules, 2014, the Company has provided  accumulated net deferred tax liability in respect of timing  difference as on 31st March 2015 amounting to Rs.3,308.65 crore

(Previous Year: Rs.2,566.37 crore). Net Deferred taxexpense for the  year of Rs.78735 crore (Previous Year: Rs.266.31 crore) has been  charged to statement of profit & loss. The item wise details of  deferred tax liability and assets are as under: . ,

(ii) During the year, the Company has made provision for current tax of Rs.836.gi crore as per Minimum Alternate Tax (MAT) as per the provision of sectionll5_IBof the Income Tax Act, 1961, as against the regular tax of Rs.479.84 crore. The company has recognized the entitled MAT credit of Rs.357-07 crore as asset for adjustment against future tax liability within nextl Oyears.

13. In Compliance of AS 27 on "Financial Reporting of Interests in Joint Ventures" as notified under Companies Accounting Standard Rules 2006 read with Companies (Accounts) Rules, 2014 brief description of Joint Ventures of the Compan yare:

(a) Jointly Controlled Entities

(i) Mahanagar Gas Limited: A Joint Venture with British GasPlcand Government of Maharashtra to supply gas to domestic, commercial, small industrial consumers and CNG for transport sector in Mumbai. The Company has equity participation of 35% (Previous Year 35%) of the paid up capital and has invested Rs.44.45 crore (Previous Year Rs.44.45 crore) in 4,44,50,000 equity shares of no/-each.

(ii) Indraprastha Gas Limited: A Joint Venture with BPCL and Government of National Capital Territory (NCT) of Delhi to supply gas to domestic, commercial, small industrial consumers and CNG for transport sector in Delhi. The Company has equity participation of 22.50% (Previous Year 22.50%) of the paid up capital and has invested Rs.31.50 crore (PreviousYearRs.31.50 crore) foracquiring3,15,00,000 equity shares of Rs.10/-each.

(iii) Petronet LNG Limited: A Joint Venture with BPCL, I0CL and ONGCL for setting up LNG import facilities. The Company has equity participation of 12.50% (Previous Year 12.50%) of the paid up capital and has invested Rs.g8.75 crore (Previous Year Rs.g8.75 crore) for acquiring 9,37,50,000 equity shares of Rs.10/- each in the Joint Venture Company (includes 1,00,00,000 equity shares allotted at a brmium of Rs.5/- per share). The Company has also paid Rs.421.35 crore (Previous Year Rs.140.45 crore) including service tax as advance for booking of 2.5 MMTPA capacity on long term basis at Dahej.

(iv) Bhagyanagar Gas Limited: A Joint Venture with HPCL for distribution and marketing of CNG, Auto LPG, natural gas and other gaseous fuels in Andhra Pradesh and Telengana. The Company has equity participation of 22.50% (Previous Year 22.50%)of the paid up capital and has invested Rs.22.50 crore (Previous Year Rs.0.01 crore) for acquiring 2,25,00,000 equity shares (Previous Year 12,500 equity shares) of Rs.10/-each.

(v) Tripura Natural Gas Company Limited: A Joint Venture with Assam Gas Company Limited and Tripura Industrial Development Corporation for transportation and distribution of natural gas through pipelines in Tripura. The Company has equity participation of 29% (Previous Year 29%)of the paid up capital and has invested Rs.1.g2 crore (Previous Year Rs.1.g2 crore) for acquiring 1,92,000 equity shares (Previous Year 1,92,000 equity shares) of Rs.100/-each.

(vi) Central UP Gas Limited: A Joint Venture with BPCL to supply gas to domestic, commercial and small industrial consumers and CNG for transport sector in Kanpur, Uttar Pradesh. The Company has equity participation of 25% (Previous Year 25%) of the paid up capital and has invested Rs.15 crore (Previous Year Rs.15 crore) for acquiring1,50,00,000 equity shares of Rs.10/-each.

(vii) Green Gas Limited: A Joint Venture with I0CL to supply gas to domestic, commercial and small industrial consumers and CNG for transport sector in Agra and Lucknow, Uttar Pradesh. The Company has equity participation of 22.50% (Previous Year 22.50%)of the paid up capital and has invested Rs.23.04 crore (Previous YearRs.0.01 crore)for acquiring2,30,42,500equityshares (Previous Year 12,500 equity shares) of Rs.10/-each.

(viii) Maharashtra Natural Gas Limited: A Joint Venture with BPCL to supply gas to domestic, commercial and small industrial

The Company has equity participation of 22.50% (Previous Year 22.50%) of the paid up capital and has invested Rs.22.50 crore (Previous Year Rs.22.50 crore) for acquiring 2,25,00,000 equity sharesof Rs.10/-each.

(ix) Ratnagiri Gas and Power Private Limited: A Joint Venture with NTPC, M5EB and other financial institutions for the revival of the Dabhol Project. The Company's equity participation has come down from 32.88% to 28.91% of the paid up capital due to availement of rights by the financial institutions converting their debtto equity duringthe year.There is no change in the investment of Rs.974-31 crore (Previous Year Rs.974-31 crore) in 97,43,08,300 equity shares (Previous Year 97,43,08,300 equity shares) of Rs.10/-each.

(x) Avantika Gas Ltd. A Joint Venture with HPCL to supply gas to domestic, commercial and small industrial consumers and CNG for transport sector in Madhya Pradesh. The Company has equity participation of 22.50% (Previous Year 22.50%) of the paid up capital and has invested Rs.22.50 crore (Previous Year Rs.0.01 crore) for acquiring 2,25,00,000 equity shares (Previous Year 12,500 equity shares) of Rs.10/-each.

(xi) ONGC Petro Additions Ltd (OPAL). A Joint Venture with ONGC, and Gujarat state Petroleum Corporation Ltd., for setting up Petrochemical Project at Dahej in Gujarat. The Company has equity participation of 15.50% (Previous Year: 15.50%) ofthe paid up capital and has invested Rs.994.95 crore (Previous Year Rs.994.95 crore) for acquiring 99,49,45,000 equity shares (Previous Year 99,49,45,000 equityshares) of Rs.10/- each.

(xii) GAIL China Gas Global Energy Holdings Ltd. A Joint Venture with China Gas Holdings Ltd., to pursue gas sector opportunities mainly in China. The Company has equity participation of 50% (Previous Year 50%) ofthe paid up capital.

(xiii) Tapi Pipeline Company Ltd. A Joint Venture Company with Turkmengaz (Turkmenistan), Afghan Gas Enterprise (Afghanistan) and I5G5 Pvt. Ltd. (Pakistan) incorporated on 11th November 2014. The Company has equity participation of 25% of the paid up capital.

(b) Jointly Controlled Assets

(I) The Company has participated in joint bidding under the Government of India New Exploration Licensing Policy (NELP) and overseas exploration bidding and has 13 Blocks (Previous Year: 18 Blocks) as on 31st March 2015 for which the Company has entered  into Production Sharing Contract(s) with respective host Governments along with other partners for exploration & production of oil and gas.The Company is a non-operator, except in Block RJ-ONN -2004/1, CY-ONN-2005/l and CB-ONN-2010/ll, where it is the operator. The expenses, income, assets and liabilities are based upon its percentage share in production sharing contract(s).

(vii) Jointly Owned Assets:

The Company's interest injointly owned asset, i.e. Heat Recovery Steam Generation System (HRSG) installed Vaghodia at a project cost of X 61.69 crore (Previous Year Rs.6l.6l crore), isRs.30.84 crore (Previous Year Rs.30.8l crore).

14. In compliance of AS-28 on Impairment of Assets as notified under the Companies Accounting Standard Rules 2006 read with Companies (Accounts) Rules, 2014, the Company has carried out an assessment of impairment of asset in respect of its GAIL Tel assets and Gas Processing Unit(GPU)PlantUsar as on3i.03.20i5 Accordingly:

(i) The Company has made impairment of Rs.6.09 crore (Previous Year:-Rs.5.62 crore) in respect of its GAIL Tel assets and the same has been recognised as impairment loss in the statement of profit and loss.

(ii) No impairment loss was considered necessary by the management of the Company in respect of GPU, Usar which is under shutdown condition sincel6,h July 2014 due to non-availability of rich feed gas. The management has decided to keep the plant in brservation mode till the availability of rich feed gas in the future.

15. In compliance with amended Clause 32 of the Listing Agreement with Stock Exchanges, the required information is given in Annexure - C.

16. Foreign currency exposure not hedged by a derivative instrument or otherwise:

17. In some cases, the Company has received intimation from Micro and Small Enterprises regarding their status under "The Micro, Small and Medium Enterprises Development Act, 2006". The management of the Company confirms that as perpractice.the paymentto all suppliers has been made within7-10 days. The amount remaining unpaid to all suppliers as at 31st March 2015 is Rs.3,439-35 crore (Previous Year: Rs.4,105.68 crore). No interest for delay was paid or payable under the Act.

18. (a) Following Government of India's approval, the shareholders of the  Company in the Annual General Meetingheldonl5*hSeptember,1997 approved the transfer of all the assets including Plant and Machinery, accessories and other related assets which are part of Lakwa Project to Assam Gas Cracker Complex at a price to be determined by an independent Agency and on terms and stipulations as the Board of directors may in its discretion deem fit. The Cabinet Committee on Economic Affairs (CCEA) has approved the setting up of Assam Gas Cracker Project at Lepetkata by formation of a company in which the Company has equity participation of 70%. A company by the name of Brahmaputra Cracker and Polymer Limited (BCPL) was incorporated during2006-07 and construction of the project is in progress. Further, Public Investment Board (PIB) in meeting dated 13th July 2011 recommended that the issue of ownership of the Lakwa facility may be decided by the Committee comprising of rebrsentative from Department of Expenditure, Planning Commission, MoPNG and the Administrative Ministry.The gross blockoffixed assets and capital work in progress value of Lakwa unit is Rs.260.27 crore as on 31st March 2015(PreviousYear: Rs.26l.l4crore).

(b) Exceptional items include profit of Rs.62.86 crore on slump sale consideration of Rs.79.14 crore, being market value as on 01.10.2014 of CNG business (including pipelines) in Vadodara to Vadodra Gas Ltd, a Joint Venture Company of GAIL Gas Ltd and Vadodara Municipal SewaSamiti.

19. Non-Refundable Deposits Rs.5.27 crore (Previous Year: Rs.17.21 crore) made with the concerned authorities for railway crossings, forest crossings, removal and laying of electric/telephone poles and lines are accounted for under Capital Work-in-Progress/Capitalised on the basis of work done/confirmation from the concerned department.

20. (a) Confirmation of balances has been received in majority of cases for  trade receivables and payables. These confirmations aresubject to reconciliation and consequential adjustments, which in the opinion of the management are not material.

(b) In the opinion of management, the value of assets, other than fixed assets and non-current investments, on realization in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.

(c) During the year, the Company has Capitalised Rs.2974.28 crore in C2& C3 Project and Rs.3867.98 crore in Petrochemical Project.

21. During the year, an amount of Rs.27.74 crore (Previous Year Rs.28.g6 crore) has been capitalized towards Research and Development Assets.

22. The Statement of Profit & Loss includes: -

(a) Expenditure on Public Relations and Publicity amounting to Rs.44.90 crore (Previous Year: Rs.36.20 crore). The ratio of annual expenditure on Public Relations and Publicity to the annual turnover is 0.0006:1 (Previous Year: 0.0006:1).

(b) Research and Development Expenses Rs.17.01 crore (Previous Year Rs.28.45 crore).

(c) EntertainmentExpensesRs.0.27crore(PreviousYear:Rs.0.21 crore

23. Other Quantitative details are given in Annexure-D.

24. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure

N.K.Nagpal

Secretary

Subir Purkayastha

Director(Finance)

Prabhat Singh

Director (Marketing)

B. C. Tripathi

Chairman & Managing Director

As per our separate Report of even date

For G. SMathur& Co.

Chartered Accountants Firm No.008744N  

Rajiv Kumar Wadhawan

(Partner)

Membership No. 091007

For S.KMittal&Co..

Chartered Accountants Firm N0.OOII35N

M K Juneja

(Partner)

MembershipNo.013117

Place: New Delhi

Dated:27* May,2015