p) Provisions
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.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an
outflow with respect to any one item included in the same class of obligations may be small.
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.
q) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker.
The board of directors of Petronet LNG Limited has been identified as being the chief operating decision maker by the
Management of the Company.
r) Cash and cash equivalents
Cash and cash equivalents comprise of cash at bank and in hand and short-term money market deposits with original
maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of change in value.
s) Lease Accounting
The Company measures the lease liability at present value of remaining lease payments discounted using the weighted
average incremental borrowing rate as at the date of initial application and Right of Use asset is measured at an
amount equal to lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease
recognized in the balance sheet immediately before the date of initial application.
The Company as a lessee
The Company considers whether a contract is, or contains a lease. A lease is defined as 'a contract, or part of a contract,
that conveys the right to use an asset (the underlying asset) for a period in exchange for consideration'. To apply this
definition, the Company assesses whether the contract meets three key points of evaluation which are whether:
• the contract contains an identified asset, which is either explicitly identified in the contract or implicitly specified
by being identified at the time the asset is made available to the Company
• the Company has the right to obtain substantially all of the economic benefits from use of the identified asset
throughout the period of use, considering its rights within the defined scope of the contract
• the Company has the right to direct the use of the identified asset throughout the period of use. The Company
assess whether it has the right to direct 'how and for what purpose' the asset is used throughout the period of use.
Measurement and recognition
At lease commencement date, the Company recognises a right-of-use asset and a lease liability on the balance sheet.
The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability, any initial
direct costs incurred by the Company, an estimate of any costs to dismantle and remove the asset at the end of the
lease, and any lease payments made in advance of the lease commencement date (net of any incentives received).
The Company depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the
earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Company also assesses the
right-of-use asset for impairment when such indicators exist.
At the commencement date, the Company measures the lease liability at the present value of the lease payments unpaid
at that date, discounted using the interest rate implicit in the lease if that rate is readily available or the Company's
incremental borrowing rate.
Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is re¬
measured to reflect any reassessment or modification, or if there are changes in in-substance fixed payments.
When the lease liability is re-measured, the corresponding adjustment is reflected in the right-of-use asset, or profit and
loss if the right-of-use asset is already reduced to zero.
The Company has elected to account for short-term leases and leases of low-value assets using the practical expedients.
Instead of recognising a right-of-use asset and lease liability, the payments in relation to these are recognised as an
expense in profit or loss on a straight-line basis over the lease term.
The Company as a lessor
At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance lease.
The Company recognises lease payments received under operating leases as income on a straight-line basis over the
lease term. In case of a finance lease, finance income is recognised over the lease term based on a pattern reflecting
a constant periodic rate of return on the lessor's net investment in the lease. When the Company is an intermediate
lessor it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of
a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying
asset. If a head lease is a short-term lease to which the Company applies the exemption described above, then it
classifies the sub-lease as an operating lease.
Footnote
Trade receivables as at 31.03.2025 include 'Use or Pay' (UoP) dues amounting to Rs.1,421.56 crore (gross) (Rs.952.41
crore (net) after making a provision of Rs.469.15 crore). These dues have arisen due to lower capacity utilisation by
customers under long-term regasification agreements entered into by the Company. These UoP dues pertain to FY
2022-23 (CY 2022): Rs.694.29 crore, FY 2023-24 (CY 2023): Rs.610.00 crore, and FY 2024-25 (CY 2024): Rs.117.27 crore.
During FY 2023-24, the Board approved a recovery mechanism for UoP dues relating to CY 2021 and CY 2022, in accordance
with agreements reached with customers. As part of this arrangement, the Company received Rs.360.94 crore against CY
2021 dues during the year. Some of the customers have brought LNG quantities up to 31st March 2025, for which revenue
has been recognised at the prevailing Regasification Rate. Correspondingly, the Company has waived off UoP dues amounting
to Rs.183.71 crore for the year ended 31st March 2025 which consists of Rs. 32.71 crore for CY 2021 and Rs.151.00
crore for CY 2022. The Company has also obtained bank guarantees from customers to secure recovery of these dues.
The Board, at its meeting held on 27.01.2025, approved a recovery mechanism for UoP dues pertaining to CY 2023, in line with
the earlier years. The Company is in the process of implementing this mechanism, which includes securing bank guarantees
from customers.
While some customers have not provided balance confirmations for the UoP dues, management remains confident of
recovery, as the amounts are contractually obligated.
As a measure of prudence, the Company has made a time-based provision of Rs.469.15 crore as at 31.03.2025 (Rs.358.02
crore as at 31.03.2024).
b. The Company has entered into following long term LNG purchase agreements:
a. 7.50 MMTPA with QatarEnergy LNG S(2) (previously, Ras Laffan Liquefied Natural Gas Company Limited (II)) of Qatar
for a period upto April 2028. During the FY 2023-24, the Company has signed a new LNG Sale Purchase Agreement
(SPA) for supply of 7.50 MMTPA LNG on delivered basis with M/s QatarEnergy on 6th February 2024 with supplies
commencing from 2028 till 2048.
b. 1.425 MMTPA with Mobil Australia Resources Company PTY Ltd, Australia for a period upto 2035.
c. 1.20 MMTPA with ExxonMobil Asia Pacific Pte Ltd with supplies expected to commence in FY 2026-27.
Since the Company has entered into materially back-to-back sale agreements/arrangements corresponding to the
above purchase agreements, there is no foreseeable loss arising from these agreements/arrangements as at the
balance sheet date.
B. Contingent Liabilities
In the ordinary course of business, the Company faces claims and assertions by various parties. The Company
assesses such claims and assertions and monitors the legal environment on an ongoing basis with the
assistance of internal legal team. The Company records a liability for any claims where a potential loss is
probable and capable of being estimated and discloses such matters in its financial statements, if material.
For potential losses that are considered possible, but not probable, the Company provides disclosure in
the financial statements but does not record a liability in its accounts unless the loss becomes probable.
The following is a description of claims and assertions where a potential loss is possible, but not probable. The Company
believes that none of the contingencies described below would have a material adverse effect on the Company's
financial condition, results of operations or cash flows.
Other Taxes
a. The Collector of Electricity Duty, Gandhinagar (Gujarat) had issued notices classifying the business activities
of the Company as "Storage (HTP-IIA)" instead of "Industrial Undertaking (HTP I)" and hence levied Electricity
Duty @ 45% (revised rates @ 20%) instead of 20% (Revised rate @15%) of the consumption charges. The
Company has challenged the legality and validity of the notices by way of writ petitions before the Hon'ble
High Court of Gujarat who had quashed the supplementary bill / demand notice and remanded the case
back to the Collector of Electricity Duty vide order dated 1 July 2014. The Company has made its submissions
before the Collector of Electricity Duty, Gandhinagar on 30 September 2021 and again in December 2024. The
order is awaited. The total demand for the period 2005-06 to 2024-25 is Rs.105.74 crore (Rs. 97.26 crore as
on 31 March 2024).
b. The Collector of Stamps, Bharuch had issued notice to the Company to pay stamp duty @ Re.1 per Rs.1000/
or part thereof of the value mentioned in the Delivery Order of the goods imported through ports in Gujarat
pursuant to the amendment to Section 24 of the Bombay Stamp Act, 1958. The Hon'ble High Court of Gujarat
has quashed the notice. Stamp authorities have filed Special Leave Petition (SLP) in Hon'ble Supreme Court
dated 25 November 2011 against the same and the case is pending as on date. The potential liability from the
effective date of amendment i.e. 1 April 2006 till 31 March 2025 on the CIF value would be Rs. 452.36 crore
(Rs. 414.18 crore as on 31 March 2024).
Indirect Taxes
c. The Company has received refund of Rs. 1.12 crore, Rs.2.84 crore and Rs.3.46 crore from Customs department
vide CESTAT order dated 7 November 2013, 9 September 2011 and 31 May 2010 respectively mainly pertaining
to custom duty on short landing of LNG. The Custom Authorities have filed appeal against the order of the
CESTAT with the Hon'ble High court of Gujarat on 15 April 2014 for Rs 1.12 Crore, on 19 March 2012 for Rs 2.84
crore, on 30 August 2010 for Rs 3.46 Crore and the outcome of the cases are pending as on 31 March 2025.
d. The Company has paid custom duty of Rs.9.59 crore (in relation to short landing of LNG under spot purchase
agreement) against the demand order by the tax department. The Company has received favourable order in
respect of the above issue from Commissioner (Appeals) and CESTAT. However, the refund of the custom duty
has been denied by department and Commissioner (Appeals) on the ground of time barred refund application.
The Company has preferred an appeal against the above order with CESTAT and received a negative order. The
Company filed a WRIT Petition with Hon'ble Gujarat High Court against the CESTAT order, and got a favourable
ruling. The Company has got refund of the above amount (Rs. 9.59 crore) in June 2020. The department has
preferred an appeal with Hon'ble Supreme Court against the order of Hon'ble High court of Gujarat (Diary
Number 2829/2020 filed on 15-06-2020), the outcome of which is pending as on 31 March 2025.
e. The Company had received demand for service tax on vessel hire charges for the period 16 May 2008 to 30
September 2009 amounting to Rs.40.05 crore (including Interest). The Company had paid the demand under
protest and preferred an appeal before CESTAT against the above demand and received favourable order on
24 October 2013. The Company had received the refund (including interest). However the department had
preferred an appeal against the CESTAT order before the Hon'ble Supreme Court (Diary Number 1366/2015
Filed on 12 January 2015), the outcome of which is pending as on 31 March 2025.
f. Kochi terminal of the Company is having Co-developer status in Puthuypeen SEZ (PSEZ). As a Co-developer, it is
entitled for the tax and duty benefits on the materials / services received for authorized operation of its Kochi
terminal. After exit of only unit (viz GAIL) from this SEZ, PSEZ officials have denied endorsement of certain service
invoices on which tax benefits were availed. Total amount of tax benefits availed on such invoices is Rs. 47.76
crore during the period from April 2019 to February 2020. In case invoices are not endorsed, refund of GST/
input credit may be denied to the vendors which may be claimed by some of the vendors from the Company.
g. The Company has filed service tax refund applications in respect of input services availed within the Special
Economic Zone (SEZ) for the LNG Terminal at Kochi, aggregating to Rs.15.26 crore. These applications were
submitted on 21 October 2009 (Rs.2.21 crore), 23 July 2010 (Rs.5.53 crore), and 30 June 2010 (Rs.7.52 crore).
of the total claim, an amount of Rs.7.74 crore was refunded to the Company in April 2025. The balance amount
of Rs.7.52 crore, relating to the application filed on 30 June 2010, remains pending with the office of the Assistant
Commissioner as at 31 March 2025.
h. During the FY 2023-24, the Company filed an application for a refund of Rs.68.41 crore with the Assessing
Officer, representing GST charged and paid on UoP (Use or Pay) income for the financial year 2021-22 (calendar
year 2021). The Company's appeal against the Assessing Officer's order was rejected by the Commissioner
(Appeals) vide order 28 March 2025 and it is in the process of filing a further appeal before the higher appeallate
authorities.
i. The Company received GST demand of Rs.4.08 crore including interest and penalty vide order dated 11
August 2024 from GST Department, pursuant to the GST audit for the FY 2019-20 and it has filed an appeal
before the Hon'ble Appellate Authority, and the outcome of the matter is pending as at 31 March 2025.
The Company received GST demand of Rs.33.68 crore including interest and penalty vide order dated 24 February
2025 from GST Department, pursuant to the GST audit for the FY 2020-21 and it is in the process of filing an
appeal before the Hon'ble Appellate Authority.
Contractor Claims in Arbitration
k. Afcons Infrastructure Limited, one of the Company's contractors, filed a claim of Rs.106.66 crore (excluding
interest and arbitration costs) related to capital works executed at Kochi. The Company submitted counterclaims
in response. The Arbitral Tribunal, through an award dated 26 September 2022, ruled in favour of the contractor
for Rs.65.40 crore, which was duly provided for in the financial year 2022-23. The Company has challenged the
award before the Hon'ble Delhi High Court under Section 34 of the Arbitration and Conciliation Act, 1996 (OMP
No. 50/2023 dated 30th January 2023). Additionally, the contractor has filed petitions under Section 34 vide OMP
No. 32/2023 dated 24 January 2023 and under section 36 vide OMP No. 30/2023 dated 11 February 2023. The
matter is currently sub judice and pending as on 31 March 2025.
l. The Company received a favourable arbitral award of Rs.79.28 crore (including interest) against the claim raised
against the contractor i.e. Dahej Standby Jetty Project Undertaking (DSJPU), relating to capital works executed at
Dahej. In September 2021, the Company encashed the bank guarantee furnished by DSJPU for the same amount
and recognised it as income during FY 2022-23. The contractor has challenged the award before the Hon'ble
Delhi High Court under Section 34 of the Arbitration and Conciliation Act, 1996 (OMP No. 280/2021 dated 16
September 2021), and PLL filed its reply on 1 October 2022. The matter is pending as on 31 March 2025.
m. The unincorporated consortium comprising CTCI Corporation, Taiwan and CINDA Engineering & Construction
Private Limited (together called "CTCI-CINDA Consortium") was awarded EPC Contract for Engineering,
Procurement, Construction & Commissioning of works relating to design, engineer, procure, supply, erection
and commission for expansion of the LNG Terminal by 2.50 MMTPA at Dahej. Certain disputes arose between
the parties from the said contract, which have been referred to an Arbitration Tribunal wherein the Claimants
(CTCI-CINDA Consortium) raised certain claims amounting to Rs. 49.59 crores plus USD 22.22 lacs (as on 9 May
2023) and cost of arbitration, interest etc. against which the Company has also made certain counter claims. The
arbitration proceedings are under progress and the cross-examination of parties is expected to conclude.
n. One of the contractors of the Company, B.L. Kashyap & Sons Ltd. ("BLK") was awarded the Contract for Construction
of Office Building Complex at Sector - 14, Dwarka, New Delhi vide Contract no. PLL/DB-CONTRACT/01, dated 8
July 2020. On account of inability of the contractor to complete the work.The contract was terminated by the
company on 24 January 2025. The pending disputes between the parties from the said contract, have been
referred to an Arbitration Tribunal wherein the Claimants (BLK) is likely to raise claims against the company
(value of which is yet to be determined as on 31 March 2025) along with cost of arbitration, interest etc. against
which the company will also make certain counter claims. The arbitration proceedings have been initiated and
the contractor is yet to file its Statement of Claims as on 31 March 2025.
C. Contingent Assets
The Company has no contingent assets as at 31 March 2025 (Rs Nil as on 31 March 2024).
38. Segment information
Operating Segments
The Company's Board of Directors have been identified as the Chief Operating Decision Maker ('CODM'), since they are
responsible for all major decision w.r.t. the preparation and execution of business plan, preparation of budget, planning,
expansion, alliance, joint venture, merger and acquisition, and expansion of any new facility. The Company has a single
operating segment "Natural Gas Business". Accordingly, there is only one Reportable Segment for the Company which
is "Natural Gas Business", hence no specific disclosures have been made.
Entity wide disclosures
A. Information about products and services
Company primarily operates in one product line, therefore product wise revenue disclosure is not applicable.
B. Information about geographical areas
The major sales of the Company are made to customers which are domiciled in India. Also, all the assets other than
non-current financial assets (investment and loan) of the Company are located in India.
II Defined Benefit Plan:
(a) Gratuity
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees
who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on
retirement / termination is the employees last drawn basic salary per month computed proportionately for 15
days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company
makes contributions to Group Gratuity cum Life Assurance Schemes administered by the LIC of India.
The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for
gratuity were carried out as at 31 March 2025. The present value of the defined benefit obligations and the
related current service cost and past service cost, were measured using the Projected Unit Credit Method.
(b) Post-retirement medical scheme plan (PRMS)
The Company provides Post-Retirement Medical Benefit to its employees through PLL Post-Retirement
medical Scheme Trust. Under the scheme, eligible retired employees of the Company, their dependants
and dependants of deceased employees are allowed to claim reimbursement of hospitalisation expenses
on actuals and OPD coverage subject to maximum one month last drawn basic pay per annum of eligible
employees. The PRMS plan is a funded plan and the Company makes contributions to the PLL Post-Retirement
medical Scheme Trust, which invests the fund as per Section 11(5) of Income Tax Act, 1961.
(c) Benevolent Fund
Under this scheme, in the event of unfortunate event of death or in case of permanent disablement of an
employee while on service, the dependent/s shall be entitled a relief assistance under the scheme of 'Tatkal
Sahayata Yojana'. The notified beneficiary under the scheme shall be paid an amount of Rs 0.50 crore from
the Tatkal Sahayata Yojana Fund. For the above scheme, employees also make non returnable contribution of
their one day basic salary every year.
(d) Long service Award
Under this scheme, any employee who completes the prescribed number of years service (i.e. 15 year, 20
year, 25 year, 30 year and 35 years) in the Company shall be awarded with a prepaid card (with value @ Rs
2,500 * No of years service)
(e) Resettlement Allowance on Retirement
All employees who superannuates from the Company on completion of regular service shall be allowed Re¬
settlement allowance which subject to cap of the last drawn one month basic pay of the employee. This is to
facilitate employees to settle at a place of their choice & cover expenses viz. transportations charges, loading
/ unloading of household goods, packing charges, insurance for household effects, octroi charges, traveling
expenses of employees and dependent family members, etc.
A. Based on the actuarial valuation obtained in this respect, the following table sets out the status of the Gratuity plan,
PRMS,Benevolent fund, Long service award and Resettlement allowance on Retirement and amounts recognised
in the Company's financial statements as at balance sheet date:
B. Fair value hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are:
(a) recognised and measured at fair value and
(b) measured at amortised cost and for which fair values are disclosed in the financial statements.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. The fair value of all equity
instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The
mutual funds are valued using the closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-thecounter
derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as
little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable,
the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3. This is the case for unlisted equity securities.
There are no transfers between level 1 and level 2 during the year
Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
- the use of quoted market prices or dealer quotes for similar instruments
- the fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date
- the fair value of the remaining financial instruments is determined using discounted cash flow analysis.
All of the resulting fair value estimates are included in level 2 except for unlisted equity securities and preference
shares, where the fair values have been determined based on present values and the discount rates used were
adjusted for counterparty or own credit risk.
The carrying amounts of trade receivables, trade payables, capital creditors, cash and cash equivalents,unpaid dividend,
and other payable for capital goods are considered to be the same as their fair values, due to their short-term nature.
The fair values for loans were calculated based on cash flows discounted using a current lending rate. They are classified
as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit
For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.
II. Financial risk management
The Company has exposure to the following risks arising from financial instruments:
- credit risk;
- liquidity risk; and
- market risk
Risk management framework
The Company's board of directors has overall responsibility for the establishment and oversight of the Company's
risk management framework. The board of directors has established the Risk Management Committee, which
is responsible for developing and monitoring the Company's risk management policies. The committee reports
regularly to the board of directors on its activities.
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to
set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and
systems are reviewed regularly to reflect changes in market conditions and the Company's activities. The Company,
through its training and management standards and procedures, aims to maintain a disciplined and constructive
control environment in which all employees understand their roles and obligations.
The Company's Audit Committee oversees how management monitors compliance with the Company's risk
management policies and procedures, and reviews the adequacy of the risk management framework in relation
to the risks faced by the Company. The Audit Committee is assisted in its oversight role by Internal Audit. Internal
Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of
which are reported to the Audit Committee.
i. Credit risk
The Company has made investments in Debt based Mutual Funds. These Mutual funds invests in NCD / Bonds / CP
/ CD of various companies and banks. In case, the investee company defaults on repayment, such losses may have
to be borne by the investors of Mutual funds.
Company generally takes Stand by Letter of Credit (SBLC) from its customers, the exceptions being its Promoters
namely BPCL, GAIL, IOCL and ONGC. Option to take SBLC from Promoter is also being explored by the Company.
The Company establishes an allowance for impairment that represents its estimate of expected credit losses in
respect of trade and other receivables. Basis the evaluation, the management has determined that there are credit
impairment loss on the trade and other receivables.
The gross carrying amount of trade receivables is Rs. 3,736.04 crore (31 March 2024 - Rs. 3,985.51 crore).
During the current year, net provision amounting to Rs 111.13 crore for impairment charges (31 March 2024 - Rs.238.14
crore), has been made by the Company based on past ageing of trade receivables. The Company management also
pursue all options for recovery of dues wherever necessary based on its internal assessment. A default on a financial
asset is generally when counterparty fails to make payments within 365 days when they fall due.
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to
managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when
they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage
to the Company's reputation.
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 businesses, Company treasury maintains
flexibility in funding by maintaining availability under committed credit lines.
Management monitors rolling forecasts of the Company's liquidity position (comprising the undrawn borrowing facilities
below) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in
accordance with practice and limits set by the Company. These limits vary by location to take into account the liquidity
of the market in which the entity operates. In addition, the Company's liquidity management policy involves projecting
cash flows in major currencies , considering the level of liquid assets necessary, monitoring balance sheet liquidity ratios
against internal and external regulatory requirements and maintaining debt financing plans.
Market risk is the risk that changes in market prices - such as commodity prices (LNG), foreign exchange rates and
interest rates - will affect the Company's income or the value of its holdings of financial instruments. The objective
of market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return.
a) Price risk
To protect the company from fluctuation of commodity prices, same are passed through to the off-takers in long
term contract. In spot or short term contract, they are generally pass through to the customers except in few
cases, up to 2 cargo load, where the company keeps the commodity price risk with themselves to take benefit from
market fluctuation.
b) Currency risk
PLL imports LNG mainly from Qatar and Australia through long term chartered vessels. The foreign exchange
involved in making payment to LNG suppliers, loading port charges and shipper is recovered from off-takers /
customers under sale contract, both long term and short term. Company does not take any exposure on account
of currency in Foreign Currency Loans by parallelly taking derivatives to hedge against the the foreign exchange
fluctuation on loan, if any. In respect of other payments on account of repair and capex of plant, operating
expenses of plant and corporate offices etc. same are monitored on a regular basis to keep the open position at an
acceptable level.
Fair value sensitivity analysis for fixed-rate instruments
The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or
loss, and the Company does not designate derivatives (interest rate swaps) as hedging instruments under a fair value
hedge accounting model. Therefore, a change in interest rates at the reporting date would not affect profit or loss.
44. Capital management
The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and
to sustain future development of the business. Management monitors the return on capital on a yearly basis as well as
the level of dividends to ordinary shareholders which is given based on approved dividend policy.
The board of directors seeks to maintain a balance between the higher returns that might be possible with higher levels
of borrowings and the advantages and security afforded by a sound capital position
45. Additional disclosure/Regulatory Information as required by Notification no. GSR 207(E)
dated 24.03.2021
a) Disclosure in respect of Investment Property
The Company does not have any Investment Property.
b) Disclosure in respect of Revaluation of Property, Plant & Equipment (including Right to Use Assets)
The Company has not revalued its Property, Plant and Equipment (including Right to Use Assets)
c) Disclosure in respect of Revaluation of Intangible Assets
The Company has not revalued its intangible assets.
d) Loan or advances granted to the promoters, directors and KMPs and the related parties:
No loan or advances in the nature of loans granted to the promoters, directors, key managerial persons and the related
parties (as defined under the Companies Act, 2013), either severally or jointly with any other person that are:
(a) repayable on demand or
(b) without specifying any terms or period of repayment
e) Disclosure in respect of Benami Property Held
No proceedings have been initiated or pending against the company for holding any benami property under benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
f) Disclosure in case the Company has borrowings from banks or financial institutions on the basis of security of current
assets,
The quarterly statement filed by the company with such banks are in agreement with the books of the accounts of the
company.
g) Disclosure in case the Company is declared as Wilful Defaulter
No bank has declared the company as "wilful defaulter".
h) Disclosure in case the Company is having any relationship and balances with Struck off Companies:
The disclosure in respect of companies whose name is struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956 is given below -
# Includes provision for CSR during the year Rs.70.79 crores (PY - Rs. 69.66 crores), out of which an amount of Rs.50.30
crore (PY - Rs. 61.19 crores) pertains to ongoing CSR projects has been transferred to a separate Unspent CSR Bank
Account by the Company subsequent to the balance sheet date and balance amount of Rs.20.49 crore (Rs. 8.47 crores)
is required to be transferred to Specified Fund in Schedule VII of the Companies Act 2013 within 6 months from the end
of current financial year.
46. Previous year figures have been regrouped / reclassified wherever considered necessary to conform to current year figures.
In terms of our report of even date
For V. Sankar Aiyar & Co.
Chartered Accountants For and on behalf of Petronet LNG Limited
ICAI Firm Regn. No. 109208W
Sd/- Sd/- Sd/-
Ajay Gupta Akshay Kumar Singh Saurav Mitra
Partner Managing Director & CEO Director (Finance) & CFO
Membership No - 090104 DIN:03579974 DIN: 07684414
Sd/-
Place : New Delhi Rajan Kapur
Date : 19 May 2025 Company Secretary
Membership No - A10674
|