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
AH 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.
AH 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.
4.1(b) 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 16.35 crores (previous year H 13.02 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 2025 and 31st March 2024. 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.
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 5 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 (previous year 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 20 August 2013 with the Commissioner of Central Excise. The demand was confirmed by the Commissioner of Excise
in its order dated 30 September 2013 and a penalty of H 2.42 crores (excluding interest) was imposed on the Company.
The Company filed an appeal on 10 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.
(b) Demand raised by income-tax authorities
(i) In respect of assessment year 2017-18, the assessing officer disallowed the additional depreciation claimed by
the Company u/s 32(1)(iia) of the Income Tax Act, 1961 on addition of assets pertaining to the CNG business.
The income tax department has raised demand of H 2.48 crores including interest. The Company filed an appeal
with Commissioner of Income Tax (Appeals) against the assessment order passed by the Assessing officer.
During the year, the Commissioner of Income Tax (Appeals) vide its order dated 12.03.2025, has decided the matter
in the favour of the company considering the favourable orders passed by the Income Tax Appellate Tribunal on
similar issue in company's own case for the previous years and deleted the addition made by the Assessing officer. "
(ii) In respect of the assessment year 2018-19, the assessing officer disallowed the additional depreciation claimed by
the company u/s 32(1)(iia) of the Income Tax Act, 1961 on addition of assets pertaining to CNG business and also
made addition u/s 14A read with rule 8D of Income Tax Act, 1961 in respect of expense inadmissible on earning of
exempt income. The income tax department has raised demand of H 4.70 crores including interest. The assessment
order passed by Assessing officer was appealed to eligible appellant authority i.e. CIT(Appeals) on dated 18.05.2021.
The Commissioner of Income Tax (Appeals) vide its order dated 12.03.2025, has allowed the appeal on additional
depreciation disallowance (demand of H3.42 crores) considering the favourable orders passed by the Income Tax
Appellate Tribunal on similar issue in company's own case for previous years however upheld the addition made
on account of 14A disallowance. Against the 14A disallowance (demand of H1.28 crores) sustained in the order of
Commissioner of Income Tax (Appeals), the company filed an appeal before the Income Tax Appellate Tribunal.
The Company is of the view that such disallowance is not tenable and accordingly, no provision has been made for
the said demand. "
(iii) In respect of the assessment year 2021-22, deductions under chapter-VIA which consist of deduction under section
80-M of the Income Tax Act, 1961 amounting to H 35.40 crores has been denied in the intimation issued u/s 143(1)
of the Income Tax Act,1961 and accordingly, demand of H 11.42 crores (including interest) has been raised. The
Company filed the rectification application with the Jurisdictional assessing officer along with that company also
filed an appeal with the Commissioner of Income Tax (Appeals) against the intimation issued u/s 143(1) of the Act.
The Assessing officer vide its rectification order dated 20.01.2025, has deleted the addition made in the intimation
issued u/s 143(1) of the Income Tax Act, 1961.
(c) Demand raised by Delhi Development Authority (DDA)
Delhi Development Authority (DDA) has raised a total demand (excluding interest) of H155.64 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 H330.73 crores for the period upto 31 March 2016.
The matter is pending in the Hon'ble High Court of Delhi and the Company, 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 supllying 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.
(e) Apart from those disclosed above, the Company has certain ongoing litigations involving customers, vendors and
employees. Based on legal advice of in house legal team, the management believes that no material liability will devolve
on the Company in respect of these litigations.
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 H19.55 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
filled 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 demand for an amount of H 0.22 crores including interest and penalty from
the GST authorities related to ITC claimed in FY 2020-21. The Company is of the view that the demand is not tenable
and is in process of filing a rectification application/appeal before competent authority against the demand notice/order.
Accordingly, no provision has been made for the said demand.
3 Demand raised by VAT authorities
(i) During the year, the Company had received a demand cum assessment order from the Excise and Taxation Department,
Haryana for an amount of H0.59 crores (previous year H Nil ) in respect of financial year 2021-22. The Company is of the
view that the demand is not tenable and is in process of filing an appeal before appellate authority against the demand
notice/order. Accordingly, no provision has been made for the said demand.
(ii) During the year, the Company had received a demand cum assessment order from the Commercial Taxes Department,
Government of Rajasthan for an amount of H0.02 crores (previous year H Nil ) in respect of financial year 2022-23The
Company is of the view that the demand is not tenable and is in process of filing a rectification application/appeal before
competent authority against the demand notice/order. Accordingly, no provision has been made for the said demand.
4 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 :
- H0.01 crores (previous year H0.01 crores) post reconciliation of the computation performed by the Company and GAIL
(India) Limited; and
- H30.78 crores(previous year H 30.78 crores) and H1.37 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.
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
36 Bank guarantees (Contd..)
against which the Company had submitted performance bank guarantees amounting to H1915.94 crores (previous
year H2547.36 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 other than above mentioned in point (i) is H 1870.74
crores (previous year H 1550.73 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 212.17 crores (previous year H 220.00 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 6.43 crores for provident fund contributions (previous year H7.21 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.
42 Information on related party transactions pursuant to Ind AS 24 - Related party Disclosures
List of related parties with whom transactions have taken place during the year/ previous year:
(a) Entities having significant influence over the Company (promoter venturers)
i. GAIL (India) Limited
ii. Bharat Petroleum Corporation Limited
(b) Entities over which the Company exercises Control
i. IGL Genesis Technologies Limited
(c) Entities over which the Company exercises significant influence
i. Central UP Gas Limited
ii. Maharashtra Natural Gas Limited
Notes :
(a) Investments in subsidiary & associates as at the close of the year ended 31 March 2025 and 31 March 2024 are carried at cost,
per the exemption availed by the Company. Hence the same has not been considered in the above table.
(b) Financial Assets & Financial Liabilities have not been set off against each other
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 2024 and 31 March 2025.
The financial assets measured at fair value in the statement of financial position are grouped into the fair value hierarchy as on
31 March 2024 and 31 March 2025 as follows:
45 Financial instruments measured at fair value (Contd..)
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.
(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 :
In line with the disclosure requirements of IND AS 33, the EPS for the financial year ended 31 March 2024 has been restated based
on total number of equity shares outstanding after bonus issue.
The Company does not have any outstanding dilutive potential equity shares. Consequently, the basic and diluted earnings per
share of the Company remain the same.
50 Leases
a) All 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.
e) Some of the leases contain extension and termination options. Such options are considered in the 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, 2025 and as at March, 31 2024.
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 2025.
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 2,429.54 crores (previous
year H 2,206.22 crores) individually accounted for more than ten percent of the revenue.
53 During the year ended 31 March 2021, the Company had entered into an agreement with Indian Oil Corporation Limited
('IOCL') for setting up of infrastructure for storage, compression and dispensing of Hydrogen blended Compressed Natural
Gas ('H-CNG') at Rajghat bus depot, New Delhi. As per the terms of the agreement, the Company is eligible to receive a grant
of H 12.29 crores out of which H 10.12 crores is received up to 31st March 2025 and balance amount of H 2.17 crores is still
receivable from IOCL as at 31 March 2025.
In line with the accounting policy, the property, plant and equipment is recorded at gross value and corresponding grant
amount as deferred income. The grant is recognised in the statement of profit and loss in proportion to the depreciation
expense on the associated property, plant and equipment.
The unamortized balance of grant as at 31 March 2025 is H 8.85 crores (previous year H 9.63 crores). During the year, the
Company has recognised H 0.78 crores (previous year H 0.77 crores) in the Statement of Profit and Loss as 'Other income'.
54 The negotiations with the Oil Marketing Companies (OMCs), to renew the commercial terms of the contracts, have concluded
and the agreements with them have been renewed w.e.f. 01.12.2021. Accordingly the trade margins have been paid at the
new rates during the current year. It was agreed that the arrears for the period 01.04.2019 up to 30.11.2021 shall be finalized
as per mutual discussions. During the year, the discussions have been concluded and the total provision of H114.08 crores in
this regard has been reversed in accordance with IND AS 115.
Reasons for Variance in Ratios:
#1 The decrease in Return on Equity ratio from 22.36% to 16.46% is mainly on account of increase in Average Input Gas Cost by
13% over previous year.
#2 The increase in Net capital turnover ratio from -135.44 times to 55.1 times is mainly on account of increase in average working
capital over previous year.
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 invested
H 15.59 crores for allotment of 51% shares in the subsidiary. The total amount of investment made by the company in the
subsidiary as at March 31, 2025 amounts to H 34.46 crores (previous year: H 18.87 crores).
During the year, the company has also advanced Secured Loan amounting to H 15.29 crores to the subsidiary with specified
terms and repayment period.
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 31 March 2025 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 5.00 per share)
on equity shares of H2 (previous year H 2) each for the year ended 31 March 2025, 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 31 March 2025 were approved by the Board of Directors on
27 April 2025.
Material accounting policies and other explanatory information forming part of the standalone financial statements (see notes 1-61)
In terms of our report of even date attached
For PKF Sridhar & Santhanam LLP For and on behalf of the Board of Directors
Chartered Accountants
Firm's Registration No. 003990S/S200018
Sd/- Sd/- Sd/-
S. Narasimhan Kamal Kishore Chatiwal Mohit Bhatia
Partner Managing Director Director (Commercial)
Membership No. 206047 DIN 08234672 DIN 10603296
Sd/- Sd/-
Place: New Delhi Sanjay Kumar Vivek Sahay
Date: 27 April 2025 Chief Financial Officer Company Secretary
Membership No. ACS-16288
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