| Disclosure of accounting policies, change in accounting policies and changes in estimates explanatory BASIS OF brPARATION OF FINANCIAL STATEMENTS.
The financial statements of the Company have been brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956 read with the General Circular 15/2013 dated 13-Sep-2013, issued by Ministry of Corporate Affairs, in respect of Section 133 of the Companies Act, 2013. The financial statements have been brpared on accrual basis under the historical cost convention.
USE OF ESTIMATES
The brparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.
CURRENT & NON-CURRENT CLASSIFICATION
All the assets and liabilities have been classified as current or non-current as per the company's normal operating cycle and other criteria set out in Revised Schedule VI to the Companies Act, 1956. Based on the nature of activities and time between the activities performed and their subsequent realisation in cash or cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.Disclosure of general information about companyAdani gas Limited (AGL) was originally incorporated as Adani Energy (U.P.) Limited on 5th August 2005 as Public Limited Company under the Companies Act 1956 vide CIN U40100GJ2005PLC046553. Subsequently Adani Energy (U.P.) Pvt. Ltd. was renamed as Adani Gas Limited vide fresh Certificate of Incorporation consequent upon change of name dated 8th January, 2010. It is a wholly owned subsidiary of Adani Enterprises Limited. The company carries on the activity of City Gas Distribution and distributes and transports Natural Gas to Domestic, Commercial, Industrial and Vehicle users. The company is brsently operating in Ahmedabad, Vadodara and Faridabad and is in the process of establishing distribution infrastruture in Noida, Khurja, Lucknow, Jaipur and Udaipur. The Company has already got the authorisation for Khurja city from PNGRB. Disclosure of employee benefits explanatoryEmployee benefits include provident fund, superannuation fund, gratuity fund and compensated absences. Defined Contribution Plans
The Company's contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.Defined Benefit Plans
For defined benefit plans in the form of gratuity fund, the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet rebrsents the brsent value of the defined benefit obligation as adjusted for unrecognised past service cost, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the brsent value of available refunds and reductions in future contributions to the schemes.Short-term employee benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service. The cost of such compensated absences is accounted as under : (a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and (b) in case of non-accumulating compensated absences, when the absences occur.Long-term employee benefits
Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognised as a liability at the brsent value of the defined benefit obligation as at the Balance Sheet date less the fair value of the plan assets out of which the obligations are expected to be settled. Long Service Awards are recognised as a liability at the brsent value of the defined benefit obligation as at the Balance Sheet date.
a) Pursuant to the Accounting Standard - 15 – Employee Benefits, as brscribed under Companies (Accounting Standard) Rules, 2006 (as amended) the disclosure in connection with the accrued gratuity and leave encashment is as under:
| | (` in Lacs) | Gratuity | CY | PY | Change in the defined benefit obligations | | | Defined benefit obligation as at April 1, 2013 | 157.04 | 107.85 | | Service cost | 20.19 | 17.47 | | Interest cost | 12.96 | 9.44 | | Actuarial loss/(gain) | -3.17 | 35.35 | | Fund Transfer In | 0.00 | 5.19 | | Fund Transfer Out | 0.00 | -1.23 | | Benefit paid | -5.33 | -17.04 | Defined benefit obligation as at Mar 31, 2014 | 181.68 | 157.04 | | | | Change in plan assets | | | | Fair value of plan assets as at April 1, 2013 | 133.60 | 112.86 | | Expected return on the plan assets | 11.62 | 9.88 | | Contributions by employer | 1.33 | 28.36 | | Actuarial (loss)/gain | 0.52 | 0.77 | | Fund Transfer Out | 0.00 | -1.23 | | Benefit paid | -5.33 | -17.04 | Fair value of plan assets as at Mar 31, 2014 | 141.74 | 133.60 | | | | | Present value of unfunded obligations | 39.94 | 23.44 | | | | The Net amount recognized in the statement of profit & loss for the year ended Mar 31, 2014 is as follows: | | Current Service cost | 20.19 | 17.47 | | Interest cost | 12.96 | 9.44 | | Expected return on the plan assets | -11.62 | -9.88 | | Net actuarial loss/ (gain) recognized | -3.69 | 34.58 | Net amount recognized | 17.83 | 51.62 | | | | The major categories of plan assets as a percentage of total plan assets as at March 31, 2014 are as follows: | | Discount Rate | 9.38% | 8.25% | | Expected rate of return on plan Assets | 8.70% | 8.25% | | Rate of increase in compensation levels (Refer Note below) | 6.00% | 6.00% | | | | | Experience Adjustment | | | | On Plan Liability (Gain) / Losses | 16.36 | 29.10 | | On Plan Asset Gain / (Losses) | 0.52 | 0.77 |
Past four years data for defined benefit obligation and fair value of plan:
| 2009-10 | 2010-11 | 2011-12 | 2012-13 | | Present value of defined benefit obligations at the end of the year | 53.00 | 84.68 | 107.85 | 157.04 | | Fair value of plan assets at the end of the year | 23.90 | 79.92 | 112.86 | 133.60 | | Net assets / (liability) at the end of year | 29.10 | 4.75 | -5.02 | 23.44 | | Experience Adjustments on Plan Liability (Gain) / Losses | - | 17.53 | 7.85 | 29.10 | | Experience Adjustments on Plan Assets Gain / (Losses) | - | 1.12 | 3.04 | 0.77 |
b) The actuarial Liability for leave encashment and compensated absences (including Sick Leave) as at the year ended 31st March 2014 is ` 189.02 Lacs (Previous Year - ` 142.70 lacs)
The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment marketDisclosure of enterprise's reportable segments explanatoryIn accordance with accounting standard 17 "Segment Reporting" as brscribed under Companies (Accounting Standard) Rules, 2006 (as amended), the Company has determined its business segment as distribution of Natural Gas. Since, there are no other business segments in which the Company operates there are no other primary reportable segments. Further since the company's operations are limited to cities in India, there is no other Geographical reportable segment. Therefore, the segment revenue, results, segment assets, segment liabilities, total cost incurred to acquire segment assets, debrciation charge are all as is reflected in the financial statement.
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