3.20 Provisions, contingent liabilities and contingent
assets
Provisions are recognised only when there is a present
legal or constructive obligation, as a result of past events,
it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation
and when a reliable estimate of the amount of obligation
can be made at the reporting date. These estimates are
reviewed at each reporting date and adjusted to reflect the
current best estimates. Provisions are discounted to their
present values, where the time value of money is material.
Contingent liability is disclosed for:
• Possible obligations that arise from past events
and whose existence will only be confirmed by
the occurrence or non-occurrence of one or
more future events not wholly within the control
of the Company or
• Present obligations arising from past events where
it is not probable that an outflow of resources will
be required to settle the obligation or a reliable
estimate of the amount of the obligation cannot be
made unless the probability of outflow of resources
embodying economic benefits is remote.
Contingent assets are not recognised. However, when
inflow of economic benefit is probable, related contingent
asset is disclosed.
3.21 Segment reporting
Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker. The Company operates in a single
segment of natural gas business and relevant disclosure
requirements as per Ind AS 108 "Operating Segments"
have been disclosed by the Company under Note no 51.
3.22 Fair value measurement
The Company measures financial instruments such
as investments in mutual funds, at fair value at each
balance sheet date.
Fair value is the price that would be received to sell an
asset or paid to transfer a liability at the measurement date.
All assets and liabilities for which fair value is measured
or disclosed in the standalone financial statements are
categorised within the fair value hierarchy, described as
follows, based on the lowest level input that is significant
to the fair value measurement as a whole:
• Level 1 - Quoted (unadjusted) market prices in active
markets for identical assets or liabilities
• Level 2 - Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is directly or indirectly observable
• Level 3 - Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is unobservable.
For the purpose of fair value disclosures, the Company has
determined classes of assets and liabilities on the basis of
the nature, characteristics and risks of the asset or liability
and the level of the fair value hierarchy as explained above.
3.23 Financial instruments
I. Financial assets
a. Initial recognition and measurement
All financial assets except trade receivables are
recognised initially at fair value. Transaction costs
that are attributable to the acquisition of the financial
asset, which are not at fair value through profit and
loss, are added to fair value on initial recognition.
Transaction costs of financial assets carried at
fair value through profit or loss are expensed in
statement of profit and loss.
b. Subsequent measurement
(i) Financial assets carried at amortised cost
A financial asset is subsequently measured
at amortised cost using the effective interest
method if it is held within a business model
whose objective is to hold the asset in order
to collect contractual cash flows and the
contractual terms of the financial asset give
rise on specified dates to cash flows that are
solely payments of principal and interest on the
principal amount outstanding.
(ii) Financial assets at fair value through other
comprehensive income (FVTOCI)
A financial asset is subsequently measured at fair
value through other comprehensive income if it
is held within a business model whose objective
is achieved by both collecting contractual
cash flows and selling financial assets and the
contractual terms of the financial asset give
rise on specified dates to cash flows that are
solely payments of principal and interest on the
principal amount outstanding.
(iii) Financial assets at fair value through profit or
loss (FVTPL)
A financial asset which is not classified in any
of the above categories are subsequently fair
valued through the statement of profit and loss.
c. Impairment of financial assets
The Company assesses on a forward looking basis
the expected credit losses (ECL) associated with
its assets measured at amortised cost and assets
measured at fair value through other comprehensive
income. The impairment methodology applied
depends on whether there has been a significant
increase in credit risk. Note 46 details how the
Company determines whether there has been a
significant increase in credit risk.
d. Derecognition of financial assets
A financial asset is derecognised when:
- The contractual rights to the cash flows from
the financial asset has expired or
- The Company has transferred the right to
receive cash flows from the financial assets or
- Retains the contractual rights to receive the
cash flows of the financial assets, but assumes
a contractual obligation to pay the cash flows
to one or more recipients.
Where the entity transfers the financial asset, it
evaluates the extent to which it retains the risk and
rewards of the ownership of the financial assets.
If the company transfers substantially all the risks
and rewards of ownership of the financial asset,
the entity shall derecognise the financial asset and
recognise separately as assets or liabilities any rights
and obligations created or retained in the transfer.
If the company retains substantially all the risks and
rewards of ownership of the financial asset, the entity
shall continue to recognise the financial asset.
Where the company has neither transferred a
financial asset nor retained substantially all risks and
rewards of the ownership of the financial asset, the
financial asset is derecognised if the Company has
not retained control of the financial asset. Where the
Company retains control of the financial assets, the
asset is continued to be recognised to the extent of
continuing involvement in the financial asset.
II. Financial liabilities
Initial recognition and subsequent measurement
All financial liabilities are recognized initially at fair
value and in case of borrowings and payables, net of
directly attributable cost.
Financial liabilities that are not held-for-trading and
are not designated as at fair value through profit or
loss are subsequently carried at amortized cost using
the effective interest method. For trade and other
payables maturing within one year from the balance
sheet date, the carrying amounts approximate fair
value due to the short maturity of these instruments.
Changes in the amortised value of liability are
recorded as finance cost.
The Company derecognises financial liabilities when,
and only when, the Company's obligations are
discharged, cancelled or have expired.
III. Fair value of financial instruments
In determining the fair value of its financial
instruments, the Company uses a variety of methods
and assumptions that are based on market conditions
and risks existing at each reporting date. The methods
used to determine fair value include discounted
cash flow analysis, available quoted market prices.
All methods of assessing fair value result in general
approximation of value, and such value may vary
from actual realization at a future date.
IV. Offsetting of financial instruments
Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, or to realise the assets and settle
the liabilities simultaneously.
3.24 Significant accounting judgements, estimates and
assumptions
The preparation of the Company's standalone financial
statements requires management to make judgments,
estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities and
the related disclosures and the disclosure of contingent
liabilities. Uncertainty about these assumptions and
estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities
affected in future periods.
Estimates and assumptions
The key assumptions concerning the future and other key
sources of estimation uncertainty at the reporting date,
that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within the
next financial year, are described below. The Company
based its assumptions and estimates on parameters
available when these standalone financial statements
were prepared. Existing circumstances and assumptions
about future developments, however, may change due to
market changes or circumstances arising that are beyond
the control of the Company. Such changes are reflected
in the assumptions as and when they occur.
(i) Estimation of defined benefit obligation
The cost of the defined benefit plan and other
post-employment benefits and the present value
of such obligation are determined using actuarial
valuations. An actuarial valuation involves making
various assumptions that may differ from actual
developments in the future. These include the
determination of the discount rate, future salary
increases, mortality rates and attrition rate. Due to
the complexities involved in the valuation and its
long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.
(ii) Estimation of current tax and deferred tax
Management judgment is required for the calculation
of provision for income - taxes and deferred tax
assets and liabilities. The Company reviews at
each balance sheet date the carrying amount of
deferred tax assets. The factors used in estimates
may differ from actual outcome which could lead
to adjustment to the amounts reported in these
standalone financial statements.
(iii) Useful lives of depreciable/amortizable assets
Management reviews its estimate of the useful lives
of depreciable/amortizable assets at each reporting
date, based on the expected utility of the assets.
Uncertainties in these estimates relate to technical
and economic obsolescence that may change the
utility of certain property, plant and equipment.
(iv) Impairment of trade receivables
Trade receivables do not carry any interest and are
stated at their normal value as reduced by appropriate
allowances for estimated irrecoverable amounts.
Individual trade receivables are written off when
management deems them not to be collectible.
Impairment is recognised based on the expected
credit losses, which are the present value of the cash
shortfall over the expected life of the financial assets.
(v) Fair value measurement
Management applies valuation techniques to
determine the fair value of financial instruments
(where active market quotes are not available)
and non-financial assets. This involves developing
estimates and assumptions consistent with how
market participants would price the instrument.
Management bases its assumptions on observable
data as far as possible but this is not always
available. In that case management uses the best
information available. Estimated fair values may
vary from the actual prices that would be achieved
in an arm's length transaction at the reporting date
(refer note 46).
(vi) Evaluation of indicators for impairment of assets
The evaluation of applicability of indicators of
impairment of assets is based on assessment of several
external and internal factors which could result in
deterioration of recoverable amount of the assets.
(vii) Recognition and measurement of unbilled gas sales
revenue:
In case of customers where meter reading dates for
billing is not matching with reporting date, the gas
sales between last meter reading date and reporting
date has been accrued by the Company based on
past average sales. The actual sales revenue may vary
compared to accrued unbilled revenue so included
in Sale of natural gas and classified under current
financial assets.
3.25 Material Prior Period Adjustments
Material prior period errors are corrected retrospectively
by restating the comparative amounts for the prior
periods presented in which the error occurred. If the
error occurred before the earliest period presented, the
opening balances of assets, liabilities and equity for the
earliest period presented, are restated.
4 Property, plant and equipment, capital work-in-progress and other intangible assets (Contd..)
Notes:
4.1 Based on the opinion of Expert Advisory Committee (EAC) of The Institute of Chartered Accountants of India (ICAI) and
Technical analysis by the Company, the company has recognized a ROU asset for land on perpetual lease. Accordingly, it has
been transferred from Property, Plant and Equipment to Right Of Use Assets.
4.2 Buildings, inter-alia, include buildings which have been constructed on land acquired on lease from various Government
Authorities. (refer note 37).
4.3 The expenditure incidental to setting up of project is included in capital work-in-progress (CWIP) which is apportioned to the
property, plant and equipment on completion of project. The Company has capitalised salary, wages and bonus amounting to
H 10.78 crores (previous year H 16.35 crores) to the cost of property, plant and equipment /capital work-in-progress.
4.5 Refer Note 48 (a) for Capital Commitments
4.6(a) During the current & previous year, there is no change in any item of Property, plant & equipment due to business
combination & revaluation.
4.6(b) The Company is not holding any Benami Property as on 31st March 2026 and 31st March 2025. Further, no proceedings have
been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition)
Act, 1988 (45 of 1988) and the rules made thereunder.
Note:
a) Current Year amount includes H 0.18 crores pertaining to F.Y. 22-23 which has been deposited in PM Cares Fund in
month of April 2026.
b) Includes amount of H 30.04 crores has been deposited to the unspent CSR account in respect of continuing projects
before due date.
16.1 Terms and rights attached to equity shares:
The Company has one class of equity shares having a par value of H 2 each (previous year H 2 each). Each shareholder is eligible
for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in
the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining
assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
16.2 During the previous year, the shareholders of the Company have approved increased in Authorized Share Capital from H
220.00 crores to H 1,000.00 crores in the month of January 2025. Consequently, the total number of authorized equity shares
of the Company increased to 500,00,00,000 shares of H 2 each.
16.5 The Company has not issued any shares pursuant to contract without payment being received in cash, or bought back any
shares during the period of five years immediately preceding the date of balance sheet. Further, there are no shares which are
reserved for issue under options and contracts or commitments for the sale of shares or disinvestment (refer note 16.3 for
details of bonus shares).
16.6 During the current year, the Company has declared & paid interim dividend of H 3.25 per equity share amounting to H 455
crores in the month of February 2026.
16.7 During the current year, the Company has paid final dividend of H 1.50 per equity share for FY 2024-25 amounting to H 210
crores in the month of October 2025.
Nature of reserves
General reserve
Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified
percentage in accordance with Companies (Transfer of profits to Reserve) Rules, 1975. Consequent to introduction of the Companies
Act 2013, there is no such requirement to mandatorily transfer a specified percentage of the net profit to general reserve.
Retained earnings
Retained earnings are created from the profit / loss of the Company, as adjusted for distributions to owners, transfers to
other reserves, etc.
35 Contingent liabilities
1. Claims against the Company not acknowledged as debt:
(a) Demand raised by Excise authorities
The Company had received a show cause notice dated 5th June 2012 from the Directorate General of Central Excise
Intelligence for not paying excise duty on the facility discount paid to Delhi Transport Corporation from December
2008 to August 2010 and raised a demand of H 2.42 crores which the Company duly deposited and expenses off in the
Statement of Profit and Loss at the time of such payment. However, the company filed an appeal on 20th August 2013
with the Commissioner of Central Excise. The demand was confirmed by the Commissioner of Excise in its order dated
30th September 2013 and a penalty of H 2.42 crores (excluding interest) was imposed on the Company. The Company
filed an appeal on 10th January 2014 against the demand including penalty with Central Excise and Service Tax Appellate
Tribunal and the stay has been granted by the tribunal against the demand. The case is remanded back to the assessing
authority by Central Excise and Service Tax Appellate Tribunal to submit additional documents along with other evidence.
35 Contingent liabilities (Contd..)
(b) Demand raised by VAT authorities
(i) During financial year 2024-25, the Company had received a demand cum assessment order from the Excise and
Taxation Department, Haryana for an amount of H 0.59 crores in respect of financial year 2021-22. The Company is
of the view that the demand is not tenable and has filed an appeal before appellate authority against the demand
notice/order. Accordingly, no provision has been made for the said demand.
(ii) During financial year 2024-25, the Company had received a demand cum assessment order from the Commercial
Taxes Department, Government of Rajasthan for an amount of H 0.02 crores in respect of financial year 2022-23.
The Company is of the view that the demand is not tenable and has an appeal before competent authority against
the demand notice/order. Accordingly, no provision has been made for the said demand.
(iii) During the year, the Company had received a demand cum assessment order from the Commercial Taxes
Department, Government of Uttar Pradesh for an amount of H 13.59 crores (previous year H Nil ) in respect of financial
year 2025-26.The Company is of the view that the demand is not tenable and has filed an appeal before competent
authority against the demand notice/order. Accordingly, no provision has been made for the said demand. Out of
total demand of H 13.59 crores, H 2.72 crores has already been deposited & stay taken on the balance amount of
H 10.87 crores.
(c) Demand raised by Delhi Development Authority (DDA)
Delhi Development Authority (DDA) has raised a total demand (excluding interest) of H 155.64 crores during 2013-14
on account of increase in license fees in respect of sites taken by the Company on lease from DDA for setting up
compressed natural gas (CNG) stations in Delhi.
The increase in license fees was related to the period 1 April 2007 to 31 March 2014. The Company has filed a writ
petition on 11 October 2013 before the Hon'ble Delhi High Court against the demand raised by DDA as the revised license
fees has been increased manifold and made applicable retrospectively from financial year 2007-08. Further, DDA vide
communication dated 29 August 2016 has revised the total demand (excluding interest) to H 330.73 crores for the period
upto 31 March 2016.
The matter was pending before the Hon'ble High Court of Delhi where the same was disposed on 11.03.2026, relegating
parties to AMRCD mechanism. The representation in this regard is being finalised for filing before AMRCD seeking parity
with oil marketing companies.
IGL, based on the legal opinion taken, is of the view that such demand is not tenable and accordingly no provision has
been made for this aforementioned demand raised by DDA in the books of accounts."
(d) Demand raised by Greater Noida Authority
"The company is engaged in development of CGD Network in the Geographical Areas of Greater Noida from the year
2005. For undertaking these activities, NOCs from the Authority were obtained after paying one time restoration charges
and committing due compliance with all terms & conditions of the NOCs. Since 2005, the company has been actively
engaged in laying pipelines for supplying Natural Gas in Greater Noida. In the Financial Year 2016-17, the company
received a demand letter from Greater Noida Authority amounting to H 10.13 crore for payment of lease rent in respect of
the pipelines already laid in Greater Noida. The demand from Greater Noida authority included annual lease rent with 10%
escalation in every year and penal interest @18% thereon. The demand was further increased to H 22.29 crore by Greater
Noida Authority in June 2019.
The rationality of the demand for annual lease rents, escalations and penal interest was looked into by the Company by
obtaining expert legal opinion in this regard and demand for lease rent was not found legally tenable. Hence, the matter
in respect of the aforementioned demands was taken up by the Company with Greater Noida Authority for waiver and a
letter in this regard was submitted with the Greater Noida Authority in November 2019. Subsequent to this, the Greater
Noida Authority has not further pursued the matter with IGL till date.
35 Contingent liabilities (Contd..)
(e) Liability towards PNGRB on account of Non Acheivement of MWP targets
During the financial year 2025-26, the Company has not fully met the Minimum Work Programme (MWP) targets in
respect of Ajmer GA (GA 10.3) and Banda, Chitrakoot & Mahoba GA (GA 11.6), as per the authorizations granted by the
Petroleum and Natural Gas Regulatory Board (PNGRB). In accordance with Regulation 16 of the PNGRB (Authorizing
Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Regulations, predetermined
penalties are leviable for any shortfall in PNG domestic connections, CNG stations and steel pipeline laying activities.
Based on the shortfall reported, the estimated penalty amounts to approximately H 16.87 crore for the current year and H
4.54 crore for the previous year for Ajmer GA and H 3.45 crore for Banda, Chitrakoot & Mahoba GA, aggregating to a total
potential exposure of H 24.86 crore.
The Company has submitted a detailed representation to PNGRB requesting waiver of the aforesaid penalties, citing
significant overachievement of MWP targets in other Geographical Areas, excess capital expenditure incurred, and its
continued commitment to meet the remaining MWP targets in FY 2026-27. Considering the ongoing discussions with
PNGRB and the fact that no communication levying such penalties has been received till the reporting date, management
is of the view that the likelihood of outflow of resources is not probable at present. Accordingly, no provision has been
recognized in the financial statements, and the said amount has been disclosed as a contingent liability.
2 Demand raised by Goods and Service tax (GST) authorities
i) During the financial year 19-20, the Company had received a demand cum show cause notice from the GST authorities for
an amount of H 19.55 crores (previous year H 19.55 crores) in respect of financial year 2014-15, 2015-16, 2016-17 and from
April 2017 to June 2017 wherein it has been alleged by the aforementioned authorities that the Company has incorrectly
availed cenvat credit on the purchases made by the Company and has not paid service tax on certain other services.
The Company has filed the responses to the demand cum show cause notice and is of the view that such demand is not
tenable. Accordingly, no provision has been made for the demand so raised.
During financial year 2023-24, department has confirmed the demand against the company, against which company has
filed an appeal before the Honorable CESTAT and deposited an amount of INR 1.47 crores as pre-deposit.
(ii) During the year, the Company has received a show cause notice from the UP GST authorities related to issuance of more than
one E way bill created for single Invoice pertaining to FY 2018-19 and UP GST authorities has raised a demand of H 0.16 Crores
including interest and penalty against which company filed an appeal on 23rd March 2026 against the same and company is
of the view that said demand is not tenanble and accordingly no provision has been made for the demand so raised.
3 During the financial year 18-19 and financial year 22-23, GAIL (India) Limited has raised the following claims against the
Company in relation to the allocation and actual utilisation of domestic gas amounting to :
- H 0.01 crores (previous year H 0.01 crores) post reconciliation of the computation performed by the Company and GAIL
(India) Limited; and
- H 30.78 crores(previous year H 30.78 crores) and H 1.37 crores(previous year H 1.37 crores) for the gas supplied by the
Company to Adani Gas Limited (AGL) and Haryana City Gas Distribution Limited (HCGDL) respectively. The Company
has raised claims of the corresponding amount to AGL and HCGDL respectively. Both the aforementioned companies
are in the process of reconciling the data with GAIL (India) Limited. Further, based on the agreements entered into by
the Company with AGL and HCGDL respectively, and subsequent legal advice obtained on this matter, the management
believes that the Company has the right to recover the said amount if charged by GAIL (India) Limited, from these
companies. Accordingly, the management does not believe that any material liability would devolve on the Company.
4 Apart from the matters disclosed above, the Company is involved in certain ongoing litigations with customers, vendors and
employees, arising in the ordinary course of business.
As regards the details of such cases, there are 49 cases where the amount involved is determinable, aggregating to H 18.69
crores. In addition, there are a few cases where the amount involved is not determinable and, accordingly, the financial impact
in respect of such cases is not ascertainable.
Based on the assessment of the in-house legal team and external legal advice, the management believes that no material
liability is likely to devolve on the Company in respect of these litigations
36 Bank guarantees
(i) The Company was in earlier years granted authorization for laying, building, operating and expanding CGD network in
the geographical area of Karnal, Rewari, Meerut (except area already authorised) Shamli, Muzaffarnagar, KaithaL, Ajmer,
Pali, Rajsamand, Kanpur (except area already authorised), Fatehpur , Hamirpur and Hapur and during the current year
authorization was granted for Banda, Chitrakoot & Mahoba under the PetroLeum and NaturaL Gas ReguLatory Board
(Authorizing entities to lay, build, operate or expand city or local Natural Gas Distribution Networks) Regulation 2008
against which the Company had submitted performance bank guarantees amounting to H 1915.94 crores (previous year H
1915.94 crores) to the Petroleum and Natural Gas Regulatory Board to cover the construction obligation for creation of
infrastructure.
(ii) The Company's commitment towards unexpired bank guarantees/SBLC other than above mentioned in point (i) is
H 1581.27 crores (previous year H 1870.74 crores) given in the ordinary course of business.
37 The Company has instaLLed various CNG Stations on Land Leased from various government authorities for periods initiaLLy
ranging from one to five years. However, assets constructed/instaLLed on such Land are depreciated generaLLy at the rates
specified in Schedule II to the Companies Act, 2013, as the management does not foresee non-renewal of the above lease
arrangements by the authorities. The net block of such assets amounts to H 247.76 crores (previous year H 212.17 crores). The
company has not created ROU for aforementioned lease arrangements wherein renewal of lease arrangements is pending.
38 Security deposits from customers of natural gas, refundable on termination/alteration of the gas sales agreements, are
considered as current liabilities as every customer has a right to request for termination of supply and the Company does not
have a contractual right to delay payment for more than 12 months.
39 As per Section 135 of the Companies Act, 2013, a company, meeting the eligibility criteria, needs to spend at least 2% of its
average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The
Company's CSR programs/projects focuses on sectors and issues as mentioned in Schedule VII read with Section 135 of
Companies Act, 2013. A CSR committee has been formed by the Company as per the Act.
The present value of the defined benefit obligation calculated with the same method (project unit credit) as the defined
benefit obligation recognised in the balance sheet. The sensitivity analysis are based on a change in one assumption
while not changing all other assumptions. This analysis may not be representative of the actual change in the defined
benefit obligation as it is unlikely that the change in the assumptions would occur in isolation of one another as some of
the assumptions may be correlated.
Defined contribution plan
The Company makes Provident Fund contributions which are defined contribution plans, for qualifying employees. Under
the scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The
Company recognised H 6.87 crores for provident fund contributions (previous year H 6.43 crores) in the statement of profit
and loss. The contributions payable to these plans by the Company are at rates specified in the rules of the scheme.
The Government of India has consolidated 29 existing labour legislations into a united framework comprising 4 Labour
Codes which were made effective from November 21, 2025. The corresponding supporting rules under these codes are
yet to be notified. The Company has considered the impact on the basis best information and estimate available and,
accordingly, financial implications amounting to H 28.96 crore has been recognised till year ended March 31, 2026 based
on actuarial valuation. The Company continues to monitor the developments relating to the Labour Codes and will
evaluate any additional impact.
41 Employee benefits: (Contd..)
(c) The expected contribution expense to be made by the Company during the financial year 2026-27 is H 3.83 crores.
Sensitivity analysis
The significant actuarial assumptions for the determination of the defined benefit obligation are the discount rate, the
salary growth rate and the average life expectancy. The calculation of the net defined benefit liability is sensitive to these
assumptions. The following table summarises the effects of changes in these actuarial assumptions on the defined
benefit liability:
The present value of the defined benefit obligation calculated with the same method (project unit credit) as the defined
benefit obligation recognised in the balance sheet. The sensitivity analysis are based on a change in one assumption
while not changing all other assumptions. This analysis may not be representative of the actual change in the defined
benefit obligation as it is unlikely that the change in the assumptions would occur in isolation of one another as some of
the assumptions may be correlated.
Defined contribution plan
The Company makes Provident Fund contributions which are defined contribution plans, for qualifying employees. Under
the scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The
Company recognised H 6.87 crores for provident fund contributions (previous year H 6.43 crores) in the statement of profit
and loss. The contributions payable to these plans by the Company are at rates specified in the rules of the scheme.
The Government of India has consolidated 29 existing labour legislations into a united framework comprising 4 Labour
Codes which were made effective from November 21, 2025. The corresponding supporting rules under these codes have
been notified on May 08, 2026 and the same are still being assessed by experts. Thus, the Company has considered the
impact on the basis of best information and estimate available and, accordingly, financial implications amounting to H
28.96 crore has been recognised till year ended March 31, 2026 based on actuarial valuation.
45 Financial instruments measured at fair value
The following tables present financial assets and liabilities measured at fair value in the statement of financial position in
accordance with the fair value hierarchy. This hierarchy groups financial assets and liabilities into three levels based on the
significance of inputs used in measuring the fair value of the financial assets and liabilities. The fair value hierarchy has the
following levels:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e.
as prices) or indirectly (i.e. derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The level within which the financial asset or liability is classified is determined based on the lowest level of significant input to
the fair value measurement.
There are no financial liabilities measured at fair value as at 31 March 2025 and 31 March 2026.
The financial assets measured at fair value in the statement of financial position are grouped into the fair value hierarchy as on
31st March 2025 and 31st March 2026 as follows:
During the current & previous year, the investments in mutual funds have been fair valued per net asset value (NAV) as at
reporting date.
The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents are considered to
be the same as their fair values, due to their short-term nature.
Security deposits received have not been fair valued as the same are repayable on demand, so there is no fixed term available
for the purpose of discounting. Further, security deposits given have not been fair valued as the impact of the fair valuation
is not material.
46 Financial risk management
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of the
same in the financial statements.
(i) Foreign currency risk
The Company is exposed to foreign exchange risk mainly through its purchases of capital items from overseas suppliers
in various foreign currencies. The Company evaluates exchange rate exposure arising from foreign currency ('FC')
transactions and follows established risk management policies to manage its risks.
46 Financial risk management (Contd..)
Foreign currency sensitivity
There shall be no material impact on profit before tax due to 1% increase/decrease in foreign exchange rates.
(ii) Credit risk
Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due to
the Company causing financial loss. It arises from cash and cash equivalents, derivative financial instruments, deposits
from financial institutions and principally from credit exposures to customers relating to outstanding receivables.
The Company's maximum exposure to credit risk is limited to the carrying amount of financial assets recognized at
reporting date :
(iii) Liquidity risk
Liquidity risk is the risk that suitable sources of funding for the Company's business activities may not be available.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability
of funding through an adequate amount of committed credit facilities to meet obligations when due and to close
out market positions. Management monitors rolling forecasts of the Company's liquidity position and cash and cash
equivalents on the basis of expected cash flows. Short term liquidity requirements comprises mainly of trade payables
and employee dues arising during normal course of business as on each statement of financial position date. Long term
liquidity requirement is assessed by the management on periodical basis and is managed through internal accruals. As
at each statement of financial position date, the Company's liabilities having contractual maturities (including interest
payments where applicable) are summarized as follows:
(iv) Price risk & Interest Risk
There are no interest bearing borrowings and hence company is not exposed to interest rate risk presently.
The Company's investments in fixed deposits with banks/corporates are on fixed interest rates and liquid debt mutual
funds are for short durations therefore do not expose the Company to significant interest rates risk.
47 Capital management
The Company's capital management objectives are:
a) to ensure the Company's ability to continue as a going concern; and
b) to provide an adequate return to stakeholders
For the purpose of Company's capital management, capital includes issued equity capital. The Company manages its capital
structure and makes adjustments in light of changes in economic condition and the requirements of the financial covenants, if
any. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company
includes within net debt, interest bearing borrowings, less cash and cash equivalents.
(b) Other commitments
The Company has entered into long-term agreements for purchase of natural gas up to maximum quantity of 4.95 million
standard cubic meters (MMSCM)/ day (H 22.15 crores per day based on average rates prevailing on March 2026) till 2030
with different suppliers. These agreements have 'take or pay' clause which shall be applicable in case gas off take is less than
the contractual quantity as defined in the agreement and the same can be adjusted against make up quantity to be taken
in the subsequent years. As at the balance sheet date, the management does not foresee any liability on account of the
said obligation.
50 Leases
a) AH lease contracts are accounted for in accordance with Ind AS 116 "Leases".
b) The weighted average lessee's incremental borrowing rate applied to the lease liabilities on 1 April 2019 was 9% p.a. with
maturity between 2020 - 2042.
c) Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublet the asset to
another party, the right-of-use asset can only be used by the Company. Leases are either non-cancellable or may only be
cancelled by incurring a substantive termination fee. The Company is prohibited from selling or pledging the underlying leased
assets as security. For leases over office buildings and factory premises the Company must keep those properties in a good
state of repair and return the properties in their original condition at the end of the lease.
d) The table below describes the nature of the Company's leasing activities by type of right-of-use asset recognised
on balance sheet:
e) Some of the leases contain extension and termination options. Such options are considered in determination of the lease term
only if extension or non-termination can be assumed with reasonable certainty. On this basis, there were no such amounts
included in the measurement of lease liabilities as at March 31, 2026 and as at March 31, 2025.
There are no leases entered by the company which have any purchase options and the payment of lease rentals is not based
on variable payments which are linked to an index.
51 Segment Information
a) Description of segments and principal activities
The Company has a single operating segment that is "Sale of Natural Gas”. Accordingly, the segment revenue, segment results,
segment assets and segment liabilities are reflected by the financial statements themselves as at and for the financial year
ended 31 March 2026.
b) Entity wide disclosures
Information about products and services
The Company is in a single line of business of "Sale of Natural Gas.
Geographical Information
The company operates presently in the business of city gas distribution in India. Accordingly, revenue from customers earned
and non-current asset are located, in India.
Information about major customers:
In the current year, revenue from one external customer (Indian Oil Corporation Ltd) amounting to H 2754.34 crores (previous
year H 2,429.54 crores) individually accounted for more than ten percent of the revenue.
Contract asset is the right to consideration in exchange for goods or services transferred to the customer. Contract liability
is the entity's obligation to transfer goods or services to a customer for which the entity has received consideration from the
customer in advance and contract liabilities are recognised as and when the performance obligation is satisfied.
The Company recognizes unbilled revenue for gas supplied where meter reading and invoicing were pending at the reporting
date. Based on management's assessment under Ind AS 115 - Revenue from Contracts with Customers, such amounts
are considered contract assets and disclosed under "Other Current Financial Assets,” as the right to consideration is not
unconditional. Such unbilled revenue is transferred to Trade Receivables when the rights become unconditional.
The Company has sought an opinion from the Expert Advisory Committee of the Institute of Chartered Accountants of India
(EAC of ICAI) on this classification. The opinion is awaited as at the date of approval of the financial statements.
53 During the year ended 31 March 2021, the Company entered into an agreement with Indian Oil Corporation Limited (IOCL) for
setting up infrastructure for storage, compression and dispensing of Hydrogen-blended Compressed Natural Gas (H-CNG)
at the Rajghat Bus Depot, New Delhi. Under the terms of the agreement, the Company is eligible to receive a government
grant of H 12.29 crore, of which H 10.12 crore has been received up to 31 March 2026, while the balance H 2.17 crore remains
receivable from IOCL as at that date.
As it is now expected that the H-CNG plant will not be operational in the future, the Company has assessed the recoverable
value of the related assets and, after adjusting the associated deferred income, has recognized a provision of H 3.52 crore in
the financial statements to reflect the estimated loss on the project.
54 The profit for the previous year included H 114.08 crores due to the reversal of a provision in accordance with IND AS 115.
This reversal follows the successful conclusion of negotiations with Oil Marketing Companies (OMCs). While commercial
agreements were renewed effective December 1, 2021, the settlement of arrears for the period from April 1, 2019, to November
30, 2021, was concluded during the previous year, resulting in the H 114.08 crores provision reversal in the previous year's
reported profit. No such major reversal is included in current year's reported profit.
55 Additional Regulatory Information (Contd..)
B The company has not advanced or loaned or invested any funds (either from borrowed funds or share premium or any
other sources or kind of funds) to or in any other persons or entities, including foreign entities ("Intermediaries”), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries”) by or on behalf of the Company; or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
Further, the company has not received any funds from any persons or entities, including foreign entities ("Funding Parties”),
with the understanding, whether recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest
in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries”) by or on behalf of the Funding Party
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
C During the year, the Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs, and
the related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person that are either:
(a) repayable on demand or
(b) without specifying any terms or period of repayment
D The company does not have any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provision of the Income Tax Act, 1961).
56 Company uses SAP-ERP as books of accounts and the same was configured to maintain audit trail and audit logs at both
transaction level and database level with the application layer. Post publication of ICAI implementation guide, direct database
level changes were also included in the audit trail scope. In respect of SAP- ERP, access to direct database level changes is
available only to privileged users. However, audit trail has not been enabled at database level considering possible performance
issue in application as well as storage issue. For SAP ERP application for which audit trail feature is enabled, the audit trail
facility has been operating throughout the year for all relevant transactions recorded in the software and audit trail feature has
not been tampered with during the year.
57 A subsidiary named IGL Genesis Technologies Limited has been incorporated on 15.06.2023. The Company holds 51% share
in IGL Genesis Technologies Limited. The primary objective of subsidiary is manufacturing, supply, selling and distribution of
gas & other meters and other allied goods & services.
The certificate of incorporation has been received by the subsidiary on 13.07.2023. During the year, the Company has not
made any invesment in shares in the subsidiary. The total amount of investment made by the company in the subsidiary as at
March 31, 2026 amounts to H 34.46 crores (previous year: H 34.46 crores).
During the year, the company has also advanced Secured Loan amounting to H 12.75 crores (previous year: H 15.29 crores)
to the subsidiary with specified terms and repayment period . The total amount of loan advances by the company to the
subsidiary as at March 31, 2026 amounts to H 28.04 crores (previous year: H 15.29 crores). The first installment of Interest on
the above loan was due on 31st December 2025, however, the same was not paid by the subsidiary, and accordingly, as per the
terms of contract the principal amount of loan has been classified as Current Asset as at 31st March 2026. The total amount
of Interest Due on the above loan amounts to H 2.08 crores (previous year: H 0.17 crores).
58 Transactions with Struck-off companies
There are no transactions with Companies struck off under section 248 of the Companies Act, 2013 or section 560 of
Companies Act, 1956
59 Post reporting date events
No adjusting or significant non-adjusting events have occurred between 31st March 2026 and the date of authorization of the
Company's standalone financial statements.
Further, the Board of Directors have recommended a final dividend of 75% i.e. H 1.50 per share (previous year H 1.50 per share)
on equity shares of H2 (previous year H 2) each for the year ended 31st March 2026, subject to approval of shareholders at the
ensuing annual general meeting.
60 Previous period figures have been regrouped/reclassified to align with the current year classification, wherever required.
61 The standalone financial statements for the year ended 31st March 2026 were approved by the Board of Directors on 18th May 2026.
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