2.15 Provision and Contingencies
Provisions are recognised when the Company has a
present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be
required to settle the obligation and the amount can be
reliably estimated. Provisions are not recognised for future
operating losses.
Provisions are measured at the present value of
management’s best estimate of the expenditure required
to settle the present obligation at the end of the reporting
period. The discount rate used to determine the present
value is a pre-tax rate that reflects current market
assessments of the time value of money and the risks
specific to the liability. The increase in the provision due to
the passage of time is recognised as interest expense.
A disclosure for a contingent liability is made when there is
a possible obligation or a present obligation that may, but
probably will not require an outflow of resources embodying
economic benefits or the amount of such obligation cannot
be measured reliably. When there is a possible obligation
or a present obligation in respect of which likelihood of
outflow of resources embodying economic benefits is
remote, no provision or disclosure is made.
2.16 Employee benefits
a. Short-term obligations
Liabilities for wages and salaries, including other
monetary and non-monetary benefits that are
expected to be settled wholly within 12 months after
the end of the reporting period are recognised and
measured at the undiscounted amounts expected to
be paid when the liabilities are settled.
b. Post-employment obligations (Defined Benefit
Obligations)
The Company operates the following post¬
employment schemes:
• defined benefit plans - gratuity and post¬
retirement medical benefit scheme
• defined contribution plans such as provident fund.
Defined Benefit Plans - Gratuity obligations and
post-retirement medical benefit obligations
The liability or asset recognised in the balance sheet
in respect of gratuity is the present value of the
defined benefit obligation at the end of the reporting
period less the fair value of plan assets. The defined
benefit obligation is calculated annually by actuaries
using the projected unit credit method.
The present value of the defined benefit obligation
is determined by discounting the estimated future
cash outflows by reference to market yields at the
end of the reporting period on government bonds
that have terms approximating to the terms of the
related obligation.
The net interest cost is calculated by applying the
discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is
included in employee benefit expense in the statement
of profit and loss. Remeasurement gains and losses
arising from experience adjustments and changes in
actuarial assumptions are recognised in the period
in which they occur, directly in other comprehensive
income. They are included in retained earnings in the
statement of changes in equity and in the balance
sheet. Changes in the present value of the defined
benefit obligation resulting from plan amendments
or curtailments are recognised immediately in the
statement of profit and loss as past service cost.
Compensated absences
The Company’s liabilities under for long term
compensated absences is determined on the basis of
actuarial valuation made at the end of each financial
year using the projected unit credit method except for
short term compensated absences which are provided
for based on estimates. The benefits are discounted
using the market yields at the end of the reporting
period that gave terms approximating to the terms of
the related obligation. Re-measurements as a result
of experience adjustments and changes in actuarial
assumptions are recognised in profit or loss.
Defined contribution plans
Company pays provident fund contributions to publicly
administered provident funds and National Pension
Scheme (NPS) as per local regulations. Company’s
contribution to provident fund and NPS is recognised
on accrual basis in the Statement of Profit and Loss.
Company has no further payment obligations once
the contributions have been paid.
c. Other long-term employee benefit obligations
The liabilities for long service awards and
compensated absences which are not expected to be
settled wholly within 12 months after the end of the
reporting period are measured at the present value
of expected future payments to be made in respect
of services provided by employees up to the end of
the reporting period, using the projected unit credit
method. Re-measurements as a result of experience
adjustments and changes in actuarial assumptions are
recognised in the statement of profit and loss.
2.17 Segment reporting
The Board of Directors assesses performance of the
Company as Chief Operating Decision Maker.
Operating segments are reported in a manner consistent
with the internal reporting provided to the Chief Operating
Decision Maker (CODM).
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 in the financial statements as at and for the
financial year ended March 31, 2025.
2.18 Earnings per share
Basic earnings per share is computed by dividing the
profit after tax before other comprehensive income by the
weighted average number of equity shares outstanding
during the financial year. Diluted earnings per share is
computed by dividing the profit after tax by the weighted
average number of equity and dilutive equity equivalent
shares outstanding during the year, except where the
results would be anti-dilutive.
2.19 Critical accounting judgements and key sources of
estimation uncertainty
In the application of the Company's accounting policies,
which are described in note 2, the management of the
Company are required to make judgements, estimates and
assumptions about the carrying amounts of assets and
liabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on
historical experience and other factors that are considered to
be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised
if the revision affects only that period, or in the period of
the revision and future periods if the revision affects both
current and future periods.
In the following areas the management of the Company has
made critical judgements and estimates
Useful lives of property, plant and equipment
The Company reviews the useful lives and carrying amount
of property, plant and equipment at the end of each
reporting period. This reassessment may result in change in
depreciation expense in future periods.
Provision for Capital Work in Progress
The Company has a defined policy for provision of slow
and non-moving capital work in progress (CWIP) based on
the ageing of CWIP. The Company reviews the policy at
regular intervals.
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.
Recognition of deferred tax assets
Deferred tax asset is recognised for all the deductible
temporary differences to the extent that it is probable that
taxable profit will be available against which the deductible
temporary difference can be utilised. The management
assumes that taxable profits will be available while
recognising deferred tax assets.
Provision for Inventory including Capital Inventory
The Company has a defined policy for provision of slow and
non-moving inventory based on the ageing of inventory.
The Company reviews the policy at regular intervals.
Recognition and measurement of other provisions
The recognition and measurement of other provisions are
based on the assessment of the probability of an outflow
of resources and on past experience and circumstances
known at the balance sheet date. The actual outflow of
resources at a future date may therefore vary from the
figure so provided and included as liability.
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.
Notes
1) On March 03, 2023, the Company had signed a Share Purchase Agreement (SPA) with Unison Enviro Private Limited (UEPL)
and erstwhile shareholders of UEPL for acquisition of 100% stake in UEPL. On February 01, 2024, the Company acquired
100% stake in UEPL from its erstwhile shareholders for a consideration of H562.09 crore. Consequently, UEPL has become
wholly owned subsidiary of Mahanagar Gas Limited w.e.f. February 01, 2024. UEPL is in the City Gas Distribution (CGD)
business and is authorised by Petroleum and Natural Gas Regulatory Board (PNGRB) to lay, build and operate CGD pipeline
network in the 3 geographic areas (GA). Two GAs in the State Maharashtra namely 1. Ratnagiri District and 2. Osmanabad
and Latur District and One GA in the State of Karnataka namely Chitradurga and Davangere.
2) Out of the total investment of the company in the shares of Unison Enviro Private Limited (UEPL), 51% shares (6,90,68,586
shares) are pledged with PNB Investment Services Limited (Security Trustee), for security against the rupee term loan and
non-fund based facility (Letter of credit and Performance Bank Guarantee) (Refer note 31.8)
3) On October17, 2023, the Company had signed a Joint Venture Agreement with Baidyanath LNG Private Limited (BLNG) for incorporating
a Joint Venture Company (JVC) for undertaking the business of selling Liquefied Natural Gas (LNG) as fuel to LNG vehicles. The JVC,
Mahanagar LNG Private Limited (MLPL) was incorporated on December 26, 2023. As of March 31, 2025, the Company has invested
H15.30 Crore in equity shares and is holding 51% equity shares of the JVC. MLPL is a subsidiary of the Company.
Note - 9. Investments (Contd..)
4) On February 12, 2024, the Company acquired 18.94% stake through investment of H50 Crore in Compulsorily Convertible
Preference Shares (CCPS) in 3EV Industries Private Limited (3EV). 3EV is in the business of manufacturing of 3-wheeler
cargo and passenger electric vehicles. During the year, the Company has further invested H23 Crore in CCPS increasing
the holding to 24.54% based on a strategic business decision for diversification. Accordingly, the Company has reclassified
its investment in 3EV from investment held at fair value through OCI to amortised cost from February 04, 2025. 3EV is
considered as an associate of the Company as per Ind AS 28 ''Investments in Associates and Joint Ventures''
5) The Company, International Battery Company, Inc (‘IBC US’) and International Battery Company India Private Limited (‘IBC
India’) had entered into Share Subscription Agreement and Shareholder’s Agreement both on November 07, 2024. The
Company has invested H35.36 Crore in the month of January 2025 (Shares allotted on February 03, 2025) and is holding
44% of equity share capital of IBC India, as of March 31, 2025. Thus IBC India is considered as an associate of the Company
as per Ind AS 28 ''Investments in Associates and Joint Ventures''
31. Disclosures under Indian Accounting Standards:
31.1 Employee Benefit Obligations
i) Defined Contribution Plans
The Company makes Provident Fund and National Pension Scheme (NPS) contributions, which are defined contribution
plans, for qualifying employees. Company has no further payment obligations once the contributions have been paid. Under
the Provident Fund Schemes and NPS, the Company is required to contribute a specified percentage of the payroll costs to
fund the benefits. The contributions payable to these plans by the Company are in compliance with the rates specified in the
rules of the schemes. The Company recognised H9.21 crore (previous year H7.85 crore) as an expense and included in Note
27 - Employee Benefits Expense ‘Contribution to Provident Fund and Other Fund’s in the Statement of Profit and Loss for the
year ended March 31, 2025.
ii) Defined Benefit Plans
The Company offers the following defined benefit schemes to its employees:
- Gratuity (Refer note 27): The Company’s gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act,
Employee who has completed five years of service is entitled to specific benefit, the plan is funded.
- Post-Retirement Medical Benefit Plan (PRMB) (Refer note 27): The Company has provided Post-Retirement Medical
Scheme. Under the scheme eligible retired employees of the company and their spouse are provided medical claims
for hospitalisation through insurance policy coverage.
The following table sets out the funded/unfunded status of the defined benefit schemes and the amount recognised in the
financial statements:
31. Disclosures under Indian Accounting Standards: (Contd..)
Demographic risk - This is the risk of variability of results due to unsystematic nature of decrements that include mortality,
withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward
and depends upon the combination of salary increase, medical cost inflation, discount rate and vesting criteria.
Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.
Asset Liability Matching (ALM) Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in
lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.
Mortality risk: Since the benefits under the plan is not payable for lifetime and payable till retirement age only, plan does not
have any longevity risk.
Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a
default will wipe out all the assets. Although probability of this is very low as insurance companies have to follow stringent
regulatory guidelines which mitigate risk.
In order to protect the capital and optimise returns within acceptable risk parameters, the plan assets are well diversified.
The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and
other relevant factors.
Positive figures represent decrease in obligation and negative figures represents increase obligation.
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation
as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions
may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been
calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in
calculating the defined benefit obligation liability recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
iii) Other Long-term Employee Benefits
Compensated absences which are accumulated and not expected to be availed within twelve months after the end of the
reporting period in which the employee renders the related service are recognised as a liability at the present value of the
defined benefit obligation as at the balance sheet date. Long Service Awards are recognised as a liability based on actuarial
valuation of the defined benefit obligation as at the balance sheet date.
31.2 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 March 31, 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 assets are located in one geography i.e. India.
Information about major customers:
Three customers who contributed more than 10% of the revenue during the year ended March 31, 2025 is H2,995.02 crore
(previous year H2,914.79 crore).
31. Disclosures under Indian Accounting Standards: (Contd..)
a. Fair Value Hierarchy of Financial Assets and Liabilities
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are
(i) recognised and measured at fair value and (ii) measured at amortised cost and for which fair values are disclosed in the
financial statements. To provide an indication about the reliability of the inputs used in determining fair value, Company has
classified its financial instruments into three levels prescribed under the accounting standards below:
Level 1: inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the company can access
at the measurement date.
Level 2: inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either
directly or indirectly.
Level 3: inputs are unobservable inputs for the asset or liability. Company’s policy is to recognise transfers into and transfers
out of fair value hierarchy levels as at the end of the reporting period. There is no Level 1 and Level 3 type Financial Assets
or Financials Liabilities as on March 31, 2025.
(i) Measured at Fair Value Through Profit or Loss (FVTPL)
The Company has investments in debt mutual funds which are not quoted in the active market. These debt mutual
funds are subsequently measured at FVTPL as per the closing NAV statement provided by the mutual fund house.
The corresponding unrealized gain or loss on fair valuation is recorded in profit and loss account under other income.
Accordingly, such debt mutual funds fall under fair value hierarchy level 2. The fair value of these mutual funds as at
March 31, 2025 is H1,054.23 crore (previous year H968.38 crore).
(ii) Measured at Fair Value Through Other Comprehensive Income (FVOCI):
The Company has investments in Compulsorily Convertible Preference Shares (CCPS) which are not quoted in the
active market. These CCPS are subsequently measured at FVOCI on the basis of fair valuation on the reporting date.
The corresponding unrealized gain or loss on fair valuation is recorded in OCI. The fair value of these CCPS as at March
31, 2025 is HNil (previous year H50.00).
(iii) Measured at Amortised Cost for which Fair Value is disclosed
The fair values of all current financial assets and liabilities including trade receivables and unbilled revenue, cash and cash
equivalents, bank balances, bank fixed deposits, corporate fixed deposits, security deposits, trade payables, lease liabilities,
payables for purchase of property, plant and equipment and other current financial assets and liabilities are considered
to be the same as their carrying values, due to their short term nature. The fair values of all non-current financial assets
and liabilities including security deposits, trade receivables and lease liabilities and other non-current financial assets and
liabilities are considered to be the same as their carrying values, as the impact of fair valuation is not material.
b. Capital Management
Total equity as shown in the balance sheet includes equity share capital, general reserves and retained earnings. There are
no interest bearing loans and borrowings by the Company.
The Company aims to manage its capital efficiently to safeguard its ability to continue as a going concern and to optimise
returns to its shareholders.
The Company's policy is to maintain a stable and strong capital structure with a focus on total equity to maintain investor’s,
creditor’s and market confidence and to sustain future development and growth of its business. The Company will take
appropriate steps in order to maintain, or if necessary adjust, its capital structure. The management monitors the return on
capital as well as the level of dividends to shareholders.
31. Disclosures under Indian Accounting Standards: (Contd..)
c. Financial risk management
Company’s activities expose it to credit risk, liquidity risk and market risk. This note explains the sources of risk which the
company is exposed to and how the company manages the risk and its impact on the financial statements.
(i) Credit Risk
Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss to
the Company. The credit risk arises from trade receivables, security deposits, cash and cash equivalents and deposits
with banks and corporates.
Trade receivables
The Company supplies natural gas to customers.
Concentrations of credit risk with respect to trade receivables are limited as majority credit sales are made to high
credit worthy entities and balance credit sales are against securities in the form of customer security deposits, bank
guarantees and letter of credit. All trade receivables are reviewed and assessed for default on regular basis. Our
historical experience of collecting receivables, supported by the level of default, is that credit risk is low.
For trade receivables, except for specifically identified cases, Company follows a simplified approach where provision
is made as per the ageing buckets which are designed based on historical facts and patterns.
Other financial assets
The Company maintains exposure in security deposits, reinstatement charges receivable, cash and cash equivalents
and term deposits with banks and corporates.
In case of security deposits and reinstatement charges, majority of which are given to Municipal authorities (which
are government controlled entities) towards pipeline laying activity, the credit risk is low. However, historically the
company has experienced a delay/ non receipt of these amounts and hence allowances have been taken into account
for the expected credit losses of these security deposits and reinstatement charges.
In case of bank /corporate fixed deposits regular quotations for interest rate are invited and based on best offered
rate the bank deposits are placed with banks/corporates having reasonably high net worth. Exposures of deposit
placed are restricted to limits per bank/corporate as per policy and limits are actively monitored by the Company. We
understand that the credit risk is very low to moderate for such deposits.
The Company’s maximum exposure to credit risk is the carrying value of each class of financial assets as disclosed in
note 4,5,6,9,10,11 and 12.
(ii) Liquidity Risk
Liquidity risk is the risk that the Company will find it difficult in meeting its obligations associated with its financial
liabilities on time.
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. Due to the dynamic nature of the underlying business, Company’s treasury maintains flexibility in
funding by maintaining availability under cash and cash equivalents, bank fixed deposits, corporate fixed deposits
and mutual funds.
Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis
of expected cash flows.
The tables below analyses the Company’s financial liabilities into relevant maturity groupings based on their
contractual maturities.
(iii) Market Risk
Foreign Exchange Risk
Company is exposed to foreign exchange risk arising from direct transactions in foreign currency and also indirectly
through transactions denominated in foreign currency though settled in functional currency (INR), primarily with respect
to the US Dollar (USD). Foreign exchange risk arises from future commercial transactions and recognised assets and
liabilities denominated in a currency that is not the company’s functional currency (INR).
(iv) Interest Rate 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 and liquid debt mutual funds are for short durations,
and therefore do not expose the Company to significant interest rates risk.
31.5 Leases - Ind AS 116:
Company as a Lessee
The Company has various operating lease arrangements for hiring of vehicles, equipment, offices, stores premises and land.
Operating leases relate to land with lease term ranging between 17 to 116 years. The Company does not have an option to
purchase at the end of the lease term.
The following are the practical expedients availed by the Company:
• Right-to-use assets and liabilities for leases not recognised for leases with lease tenure less than 12 months from
transition date.
31.8 Capital and other commitments
a. Estimated amount of contracts to be executed for project execution including labour and purchase of material relating
to construction of pipeline network and CNG outlets not provided for (net of advances) H720.10 crore (previous year
H680.13 crore).
b. All term contracts for purchase of natural gas with suppliers, has contractual obligation of “take or pay” for shortfall in
contracted Minimum Guaranteed Quantity (MGQ) as specified in individual contracts. Estimation of these MGQ commitments
is dependent on nomination of quantity by suppliers and actual purchase by the company. As both the factors “quantity
nomination by supplier” and “quantity to be purchased by the company”, are not predictable, MGQ commitment is
not quantifiable.
c. The Company has issued Corporate Guarantees of H566.00 crore on behalf of Unison Enviro Private Limited (UEPL) to the
lenders for Rupee Term loan and non - fund based facility. The Amount of rupee term loan as on March 31, 2025 is HNIL
(previous year HNIL) and the amount of non fund based facility availed is H19.38 crore (previous year H21.45 crore)
31.9 Contingent Liabilities (to the extent not provided for)
Claims against the Company not acknowledged as debts in respect of which the Company does not expect outflow of resources
H432.10 crore (previous year H364.41 crore), includes:
i) Claims disputed by the Company relating to issues of applicability aggregating to H96.03 crore (previous year H27.74 crore)
as detailed below:
ii) On January 09, 2025, The Joint Commissioner CGST and Central Excise Mumbai East Commissionerate, has passed an
order (received by the Company on January 18, 2025) demanding GST liability under Reverse Charge Mechanism (RCM)
towards road re-instatement (“Rasta Nuksan Bharpai”) charges paid to the Local Authorities by the Company while laying
underground pipelines, amounting to H54.33 Crore plus applicable penalty and interest under Section 74 (1) of CGST Act, 2017.
The Company had filed an appeal with First Appellate, Commissioner Appeal against the said order and the decision from
the hearing held on April 30, 2025, is currently pending. Based on the legal opinion obtained, the Company believes that it
has a strong case and does not expect any outflow of economic resources.
iii) Central/State/Local Authority property taxes, lease rents, pipeline related re-instatement charges etc. claims disputed by the
Company relating to issues of applicability and determination aggregating to H3.80 crore (previous year H4.37 crore).
iv) GAIL (India) Limited (GAIL) raised demand in April 2014 for transportation tariff with respect to ONGC’s Uran Trombay Natural
Gas Pipeline (UTNGPL) pursuant to demand on them by Oil and Natural Gas Corporation Limited (ONGC), based on the
Petroleum and Natural Gas Regulatory Board (PNGRB) order dated December 30, 2013, determining tariff for ONGC’s
UTNGPL as a common carrier. The total demand raised by GAIL for the period from November 2008 till July 2021 was
H331.80 Crore. The Company disputed the demand with GAIL based on contractual provisions and since the transportation
charges are to be paid by a third-party user for utilisation of UTNGPL to ONGC as common carrier and not for transportation
of its own gas by ONGC.
The Company filed an appeal with the PNGRB in February 2015, the same was dismissed in October 2015. The Company
filed a writ petition, in November 2015, with the Hon’ble High Court of Delhi. The Court advised the Company to file an
appeal with Appellate Tribunal for Electricity (APTEL) being Appellate Authority of the PNGRB in November 2016. The matter
was heard by APTEL and remanded back to the PNGRB on technical grounds in September 2019. PNGRB in March 2020,
had passed an Order which directed the Company and GAIL to pay the disputed transportation tariff to ONGC. The Company
filed an Appeal before APTEL against the PNGRB order in April 2020. The matter was heard by APTEL in October 2020.
APTEL remanded back the case in July 2021 to PNGRB for proper adjudication. The matter was heard by PNGRB in April
2022 and an order was passed in September 2022 directing the Company to pay the disputed transportation tariff for the
period 2014 to 2021 as per the transportation tariff fixed by PNGRB for UTNGPL. The Company had filed a writ before the
Hon’ble High Court of Delhi challenging the PNGRB’s September 2022 order. The Hon’ble High Court of Delhi vide its order
dated December 13, 2022 has stayed the recovery against the PNGRB order and has directed the Company to deposit a
sum of H50 Crore with GAIL by February 15, 2023, which was deposited with GAIL on February 14, 2023. The Hon’ble High
Court has rescheduled the next hearing to July 10, 2025.
Based on the legal opinions obtained, the Company believes that it has a strong case and does not expect any outflow of
resources. Hence, no provision has been recognised.
v) Claims from consumers are not acknowledged as debts H0.47 crore (previous year H0.49 crore).
vi) Negotiation with respect to the revision of trade margin with the Oil Marketing Companies (OMCs) is pending from April 2019
to March 2023 for Mumbai Metro region and provision towards liability has been considered appropriately by the Company,
pending final settlement.
iv. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
v. The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
vi. The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
a. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the company (Ultimate Beneficiaries) or
b. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
vii. The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:
a. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries) or
b. Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
viii. The Company has not surrendered or disclosed any transaction, previously unrecorded in the books of account, in the tax
assessments under the Income Tax Act, 1961 as income during the year.
ix. The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or
any government authority.
x. The Company has complied with the requirement with respect to number of layers as prescribed under Section 2(87) of the
Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.
31.16The Code on Social Security 2020 has been notified in the Official Gazette on September 29, 2020. However, the date on which
the code will come into effect have not been notified and the final rules/interpretation have not yet been issued. The Company
will assess the impact of the code when it comes into effect and will record any related impact in the period the code becomes
effective. Based on a preliminary assessment, the entity believes the impact of the change will not be significant.
31.17 The Board of Directors, at its meeting held on May 06, 2025, has proposed a final dividend of H 18.00 per equity share of face
value H 10.00 each for the financial year ended March 31, 2025. This is in addition to the interim dividend of H 12.00 per equity share
paid during the year. With this, the total dividend for the year is H 30.00 per equity share of face value H 10.00 each. The proposal is
subject to the approval of shareholders at the Annual General Meeting to be held and if approved would result in a final dividend
cash outflow of approximately H 177.80 Crore.
31.18A scheme of Amalgamation of Unison Enviro Private Limited (a wholly owned subsidiary) with the Company (the “Scheme”) was
approved by the Board of Directors of the Company at their meeting held on October 24, 2024, with effect from appointed date of
February 01, 2024. The Scheme has been submitted with National Company Law Tribunal, Mumbai bench on December 06, 2024
and the matter was heard by the Mumbai Bench on January 17, 2025, and reserved for pronouncement of its interim order.
31.19Events after the reporting period - The Company has evaluated subsequent events from the balance sheet date through May 06,
2025, the date at which the financial statements were available to be issued, and determined that there are no material items to
disclose other than those disclosed above.
31.20The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which
uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of
recording audit trail of each and every transaction, creating and edit log of each change made in the books of account along with
the date when such changes were made and ensuring that the audit trail cannot be disabled. The Company uses an accounting
software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has
operated throughout the year for all relevant transactions recorded in the accounting software.
Further there is no instance of audit trail feature being tampered with in respect of the accounting software where such
feature is enabled.
The Company has implemented a framework to identify relevant applications from the overall IT universe as “Books of account”
as per the Companies Act 2013. The Company’s books of account maintained in the electronic mode comply with the requirements
to the Companies Act 2013, read with relevant rules and notifications, The audit trail has been preserved by the Company as per
the statutory requirements for record retention from the date it was enabled.
31.21Fig ures for the previous year have been regrouped/reclassified to conform to the figures of the current year.
For and on behalf of the Board of Directors of
Mahanagar Gas Limited
(CIN: L40200MH1995PLC088133)
Ashu Shinghal Sanjay Shende
Managing Director Deputy Managing Director
DIN: 08268176 DIN: 09172642
Rajesh Patel Atul Prabhu
Chief Financial Officer Company Secretary
FCA No:048326 ACS No:64051
Place : Mumbai
Date : May 06, 2025
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