SUMMER TRAINING PROJECT REPORT

ON
FINANCIAL ACCOUNTING,MIS/BUDGETING/COSTING SYSTEM
GAIL (India) Ltd., VIJAIPUR

SUBMIT TED BY:

RASHMI SHARMA MBA (2011-12)
Page | 1

Certificate

This is to certify that Ms. Rashmi Sharma has completed her training on the topic Financial Accounting, MIS, Budgeting, Costing in GAIL Vijaipur as per the curriculum in the Finance department at GAIL India Limited, Vijaipur (MP)

Rajesh Agarwal Sr.Manager (F&A)

S.Sampath
Chief Manager (F&A)

Page | 2

Acknowledgement
With great pleasure and sense of obligation express my heartfelt gratitude to Mr. Rajesh Agrawal, my mentor, Sr.Manager (F&A), GAIL India Limited, Vijaipur, for his encouragement throughout the training. I am highly indebted to him for his valuable guidance and ever ready support. His persistent encouragement, perpetual motivation, everlasting patience and excellent expertise in discussion have benefited me to an extent which is beyond the scope of acknowledgement. I would like to give warm expressions of thanks to Mr. S.Sampath, Chief Manager(F&A), GAIL India Limited, Vijaipur, for providing all the facilities and for his enlightening guidance throughout the training. My sincere thanks to all the members of staff in Finance department of GAIL India Limited, Vijaipur for direct or indirect help in the training. I sincerely thank my family, all my friends and well wishers for directly or indirectly helping me during the course of training.

Rashmi Sharma

Page | 3

CONTENTS

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12)

GAIL India Ltd ( Introduction) Milestone of GAIL India ltd GAIL Management Business segment wise performance LPG & Other Liquid Hydrocarbon GAIL Subsidiary& Joint ventures GAIL in Corporate world Implementation in technology Enterprise resource planning Financial performance of GAIL India Ltd for F.Y 2010-2011 About GAIL Vijaipur Milestone of GAIL Vijaipur LPG plant working Company Accounting Policy for 2010-2011 Financial Accounting system at GAIL Vijaipur E- banking Core values Reward and recognition
Page | 4

13)
14) 15)

16)
17) 18)

Gas Authority of India Limited, better known as GAIL is India's predominant natural gas concern. The company was formed in August, 1984. GAIL is directly involved with all the dimensions of natural gas integration in India and is responsible for processes such as exploration, processing, production, transmission, marketing, and distribution. GAIL is also responsible for ensuring that all products and services related to natural gas in India are well regulated and distributed. Gas Authority of India Limited has an impressive portfolio - it owns more than 6,500 km of high-pressure pipelines for that have a net capacity of carrying nearly 150 MMSCMD of natural gas spanning the length and breadth of India. Apart from this, GAIL also has a vast LPG transmission network spanning 1,922 km that has the capacity of transporting 3.8 MMTPA of liquefied petroleum gas. Gas Authority of India Limited also has several coal-bed methane blocks and as many as 30 gas and oil exploration blocks. Gas Authority of India Limited also owns the only gas-based fully-integrated petrochemical complex in north India at Pata (UP) which is capable of producing 410,000 TPA of Polymers.

Key Strengths Of GAIL(India) LimitedThe company owns 7 gas processing units that produce 1.3 MMTPA of LPG and other liquid hydrocarbons. GAIL owns 13,000 km of OFC network that provides high and reliable bandwidth for telecom service providers. GAIL has several joint venture companies in Delhi, Agra, Lucknow, Mumbai, Hyderabad, Pune, Kanpur, Agartala, and Bhopal that ensure the regular supply of piped natural gas for domestic as well as commercial purposes. These companies also supply compressed natural gas to the huge Indian transportation sector. GAIL has a significant stake in the Dahej LNG Terminal as well as the Kochi LNG Terminal in Kerala that is under construction as of now. GAIL has also been given the responsibility of refurbishing the Dabhol LNG terminal.

Page | 5

GAIL has a strong presence in Egypt by means of equity-based partnerships with 3 Egyptian companies - Fayum Gas Company SAE, National Gas Company SAE, and Shell CNG SAE. Gas Authority of India Limited has a considerable stake in China Gas Holding by means of which GAIL intends to delve into CNG-related opportunities in China. GAIL also has a fully-owned subsidiary company in Singapore, known as GAIL Global (Singapore) Pvt. Ltd. Within a period of past 25 years, GAIL has emerged as a truly Integrated Company across the natural gas value chain while maintaining its position as the No. 1 Gas company in India. It has won the excellent MOU performance award for the past 10 years consecutively.

GAIL manages following infrastructure:

India's largest Gas Transmission Networks (7850km pipelines) having a transmission

capacity of 118 MMSCMD of Natural Gas across the Country. World's largest LPG pipeline network (1900Km) having a transmission capacity of 3.8MMTPA of LPG. Seven Gas Processing Facilities with an aggregate capacity of 1.3 MMTPA of LPG, Propane, Pentane and SBPS / Naphtha India's largest gas-based integrated Petrochemicals Complex with an installed capacity of 4,10,000 TPA of Ethylene and 3,10,000 TPA of Polymers (HDPE, LLDPE) Optic Fibre Cable Network of 12,500 kms to offer bandwidth as a Carrier's Carrier in the Telecom sector An Equity Participant in 16 E&P blocks, including 13 blocks in India, 1 block in Oman and 2 block in Myanmar
A JV Partner in CNG/ City Gas Distribution Projects in Delhi, Mumbai, Hyderabad, Tripura,

Kanpur, Lucknow, Agra, Indore and Pune, Kota, Dewas, Meerut and Sonipat. An Equity Participant in two CNG/ City Gas Distribution Projects in Egypt
Page | 6

 A JV partner in a gas-based 156 MW Power Plant of Gujarat State Energy Generation (GSEG) Ltd. A JV partner in Petronet LNG Limited to import LNG and deliver re-gasified LNG in the Indian Market Gas transmission continues to be the core business of GAIL. The Companys strategy has been to look out for diversified growth by leveraging on its core competency of gas transmission.

Gas Marketing :Government awarded Marketing rights of PMT Gas to GAIL as Government of India nominee.

Gas Transmission :The 30 diameter, 576 km long Dahej-Panvel-Dabhol pipeline with a design capacity of 12 MMSCMD was commissioned. GAIL-RLTIL signed transmission agreement for transmission of gas from Krishna-Godavari (KG) Basin.

Exploration & Production :Commercial production of oil from Cambay basin block CB-ONN-2000/1 , having equal participation by GAIL and GSPC commenced.

Petrochemicals :Expansion of Petrochemical Plant at Pata for increasing capacity from 310,000 TPA LLDPE/HDPE to 410,000 TPA completed. Brahmaputra Cracker and Polymer Limited (BPCL), subsidiary of GAIL with partners as Government of Assam, Oil India Limted and Numaligarh Refinery Limited for setting up 2,80,000 MT Gas Cracker Project at Lepetkata, District Dibrugarh, Assam at an investment of Rs. 5,640 Crores.
Page | 7

MOU with Reliance Industries Limited was signed for joint cooperation in petrochemicals. MOU with HPCL, TOTAL, Mittal Energy and OIL for evaluating feasibility of a petrochemical plant.

Overseas Presence :GAIL formed a Joint Venture Company (JVC) with China Gas Global Energy Holdings Limited. GAIL and China Gas are equal partners in this JV which has been registered in Bermuda. This is the first Joint Venture Company of GAIL abroad. The JVC will pursue opportunities in CNG, City Gas, Pipeline, CBM, LNG, and E&P projects. GAIL signed MoU with ITERA Oil and Gas Company of Russia.

City Gas :-GAIL

and HPCL signed JV agreement for City Gas projects in Rajasthan. GAIL and

Indian Oil linked MoU for JV in City Gas Distribution in West Bengal. GAIL set up a subsidiary (GAIL Gas Limited) for City Gas Distribution and City Corridor Business.

MILESTONES OF GAIL (I) Ltd

Page | 8

1984 1987 1989 1990 1992 1993 1994 1995 1996 1997 1998 1999 1999 2000 2000 2001 2001 2002 2003 2003

GAIL (India) Ltd was formed HVJ (Hazira Vijaipur Jagdishpur) Natural Gas pipeline commissioned First Year of profit registered LPG Plant Phase I at Vijaipur commissioned Gas Marketing functions transferred to GAIL Maiden dividend of Rs. 20 Crores paid to its shareholders First JV Mahanagar Gas Limited formed with British Gas incorporated to implement Mumbai City Gas Distribution project Propane recovery plants at Vijaipur commissioned GAIL listed in NSE, BSE and DSE Government of India granted Navratna status to GAIL Indraprastha Gas Limited (IGL) incorporated for supply of gas to household sector, transport sector & commercial consumers in Delhi. LPG plants at Usar and Lakwa commissioned Uttar Pradesh Petrochemical Complex (UPPC) at Pata commissioned with a design capacity of 3 lacs TPA of Ethylene to produce 2. 60 lacs TPA of HDPE & LLDPE. LPG plant at Pata with a design capacity of 2.58 lacs TPA of LPG commissioned Participated in under NELP- I and 2 blocks awarded Jamnagar-Loni LPG Pipeline Project, worlds longest and India's first Cross-Country LPG 1269 km long pipeline commissioned LPG plant at Gandhar commissioned GAIL picks up 12% equity stake in GSEGs 156MW power project in Gujarat GAIL has an initial success in the form of significant gas find in the block A-1 in Myanmar and discovery of Oil and Gas in the Cambay Block. Bhagyanagar Gas Limited, a joint venture of GAIL and HPCL, incorporated in August 2003, in the field of distribution and marketing of Auto LPG, CNG for vehicles and retailing of natural gas in cities of Andhra Pradesh. Vizag- Secunderabad LPG pipeline, the 580 km pipeline with a maximum throughput of 1.16 MMPTPA completed GAIL successfully secures participation in 2 retail gas companies in Egypt, Fayum Gas Company and Shell CNG. Dahej - Vijaipur natural gas pipeline commissioned A wholly-owned subsidiary company GAIL Global (Singapore) Pte Ltd formed in Singapore Platts declares GAIL as the first among Global Gas Utilities based on Return on Invested Capital (ROIC) in its worldwide survey of Top 250 Energy Companies in 2004. Tripura Natural Gas Co. Ltd., a Joint Venture for city gas project in Tripura and UP Central Gas Ltd., a Joint Venture for city gas project with BPCL in Kanpur, incorporated GAIL acquired 15% equity stake in NatGas, Egypt Inauguration of the National Gas Management Centre (NGMC) of GAIL at NOIDA GAIL brings Indias first spot LNG cargo at Dahej GAIL consortium wins 3 CBM blocks in III round of bidding MoP&NG authorization for 5 new major pipelines received Brahmaputra Cracker and Polymer Limited, a Joint Venture Company led by GAIL, formed for implementing Assam Gas Cracker Project

2003 2003 2004 2004 2004 2004 2004 2005 2006 2006 2007 2007

Page | 9

GAILMANAGEMENT CHAIRMAN /MD

(Sh. BC TRIPATHI)

WHOLE TIME DIRECTOR

Sh. R.D GOYAL DIRECTOR (PROJECT)

Sh. SL RAINA DIRECTOR(HR)

Sh. PRABHAT SINGH

Sh. S. VENKATRAMAN SH. PK JAIN DIRECTOR(B/D) DIRECTOR(F&A)

DIRECTOR(MARKETING)

PART TIME DIRECTOR (Government nominees)

Sh.SUDHIR BHARGAVA

Sh.APURVA CHANDRA

PART TIME NON OFFICAL DIRECTOR (INDEPENDENT DIRECTOR)

PROF.AQ CONTACTOR

SH RM SETHI S RAMESH SHAH Dr VINAYSHILGAUTAM Sh. ARUN AGARWAL

CHIEF VIGILANCE OFFICER

(Sh. ARUN SINGAL)

COMPANY SECRETARY
(Sh. NK NAGPAL)

BUSINESS SEGMENT WISE PERFORMANCE :Page | 10

Company has been achieving an all round Excellent rating by Government of India since MOU signing. During the year under reviews, the segment wise business performance of the company is as under:-

Natural Gas Company owns & operates a network of over 7850 km of natural gas high pressure trunk pipelines. It supplies over 81.43 million cubic meters of natural gas per days as fuel to power plants, feedstock for gas based fertilizer plants & to over 500 small, medium, & large industrial units to meet their energy & process requirements. Companys shares of gas transmission business are 79% & it holds 70% market share in gas marketing in India. Natural Gas continues to constitute the core business of GAIL. During the year 2010-11, natural gas sales have increased by 14 percent to 79.06 MMSCMD from 69.10 MMSCMD in the previous year. The Gas transmission has increased to 83.29 MMSCMD from 82.10 MMSCMD in the previous year.

LPG and other Liquid Hydrocarbons Company has 7 LPG plants in the country. In 2010-11, total Liquid Hydrocarbon production including LPG was 1.401 million MT as compared to previous years production of 1.401 million MT. Production of LPG was 1.088 million MT during the year against a production of 1.043 million MT in the last fiscal. The Propane production was 1,52,671 MT against the previous years production of 155,873 MT. The Pentane production was 58,932 MT during the year 2010-11 as against 73,505 MT produced in the year 2009-2010. The LPG and other Liquid Hydrocarbons sales during FY 2010-11 were 1.405 million MT as against 1.343 million MT in the previous year. The Propane sales were 1, 53,153 MT against 155,292 MT in the previous year, whereas the Pentane sales were 58,528 MT against 73,749 MT in the previous year.

LPG Pipeline LPG transmission through pipelines was 2.744 million MT in the year 2008-09 as against 2.754 million MT in 2010-11.
Page | 11

Petrochemicals Company owns & operates a gas based integrated petrochemical plant at Pata, Uttar Pradesh with a capacity of producing 4,10,000 TPA of Polymers i.e. HDPE & LLDPE, which has been enhanced by 1,00,000 TPA, company is currently in the process of setting up a 2,80,000 TPA Assam Petrochemical Complex at an investment of Rs5,460 Cores. During2010-11, the production of polymers has increased by 9 percent to 4.20 lakh MT as against 3.86 lakh MT in the previous year. The polymer sales increased by 8 percent to 4.23 lakh MT from 3.91 lakh MT in the last financial year.

Exploration & Production :In line with Companys strategy & towards integration along the energy chain, E&P activities have gathered momentum during the year. The gas discovery in blocks A-1 & A-2 in Myanmar is maturing to development stage & various studies preliminary to finalization of the development plan & its implementation are underway. Presently, Company is involved in oil & gas exploration activities over acreage of 1.7 Lac sq.km. Company now holds a participating interest between 10 to 80 per cent in 27 oil & gas exploration blocks. Of these, 9 are on-land blocks 7 18 are off-shore blocks. In India there are 24 blocks which are in Basins such as Mahanadi, Bengal, Gujarat-Saurashtra, Mumbai, and Cambay, Assam-Arakan & Cauvery. Company has got stake in the A-1 & A-2 blocks in Myanmar & Block No. 56 in Omen. A beginning has been made by Company in earning revenue from E&P activities. One of the on-land block in Cambay basin started commercial production from February 2010 & Rs. 6.90 Crores has been generated as revenue during Feb-Mar10

Coal Bed Methane:Company has been participating interest in 3 Coal Bed Methane blocks with an area of 1561 sq.km, 2 of which are in Chattisgarh & 1 in Jharkand. These blocks were awarded to GAIL consortium in CBM-3 bidding around.

Telecommunications :Page | 12

Leveraging on its pipeline network, Company has built up an OFC network for leasing of bandwidth as a carriers carrier. Companys telecom business unit- GAILTEL has approximately 13000 km network. During the year under review, GAILTEL achieved profit before tax of Rs. 3 Crores.

Gas Transmission :GAIL has a market share of 78% of the gas transmission business and 70% of the gas marketing business in India. GAIL's vast operations and projects include: 7850 kms of Natural Gas high-pressure trunk pipelines, Trunk Pipelines with the capacity to carry 148 MMSCMD of Natural Gas across India. Supplying nearly 70 million cubic meters of Natural Gas per day as fuel to power plants for generation of about 5200 MW of power, as feedstock for gas-based fertilizer plants to produce about 11 MMTPA of urea and to over 500 other small, medium and large industrial units to meet their energy and process requirements.

Page | 13

Our 2,800 km long Hazira-Vijaipur-Jagadishpur (HVJ) pipeline and 610 km Dahej-Vijaipur pipeline (DVPL), between them, cater to all the gas based power plants, fertilizer plants, and industries along the entire West-North corridor of India.

Pipeline Projects :GAIL has put in place ship or pay commitment for new pipeline projects and has a host of important pipeline projects on hand. These include the Dahej-Uran Pipeline Project, Dabhol-Panvel pipeline project and the Jagoti-Pithampur Pipeline Project having a total investment implication of Rs.3,250 crores. Implementation of these projects is an important step towards creation of a National Gas Grid in India. HVJ PIPE LINE LAYOUT WITH PLANT LOCATIONS AND CUSTOMERS LOCATIONS.

Page | 14

City Gas Distribution GAIL was the first company in India to pioneer city gas distribution project. In addition to marketing Natural Gas through Trunk and Regional Transmission systems, GAIL has formed joint venture companies to supply gas to households, commercial users and the transport sector. Within the short span of 10 years, GAIL has expanded its CNG business from 1 company (Mahanagar Gas Ltd.) in India to 8 in India and 4 abroad. Gas supplied by GAIL to retail gas distributors serves more than 3,00,000 automobiles as Compressed Natural Gas (CNG) and over 3,30,000 households as Piped Natural Gas (PNG) in the cities of New Delhi, Mumbai, Vadodara, Vijaywada, Hyderabad, Kanpur, Agra, Lucknow. Our Project Blue Sky is gearing up to execute city gas projects in others cities in India including Pune, Kota, Indore, Gwalior, Ujjain and cities in Kerala and Karnataka through Joint Ventures. We have signed a Memorandum of Understanding with Infosys Technologies to develop City Gas Distribution Software, leveraging the IT Expertise of Infosys and the domain expertise of GAIL. GAIL's City Gas Distribution initiatives are not confined to India. It has established its presence in the CNG and City Gas arenas in Egypt through equity participation in Fayum Gas, Shell CNG and Natgas; and has acquired a stake in China Gas Holding to pursue CNG opportunities in mainland
Page | 15

China. GAIL plans to develop City Gas markets worldwide in collaboration with global oil and gas majors. GAIL is a founder member of the India CNG Consortium, which provides comprehensive solutions for CNG implementation across the globe

LNG & RLNG Presently, Company share of Gas Transmission business is 72% of India, and dependence on imported LNG is expected to increase from 22% to 38% of the total gas trade. India has plans to import about 25-27 MMTPA of LNG in the next 5-6 years. As a dominant player in the gas market, GAIL is poised to play a major role in LNG sourcing and creation of pipeline infrastructure to complete the chain of energy security that the Indian Government intends to pursue. Countries like Abu Dhabi, Oman, Yemen, Nigeria, Malaysia, Indonesia and Australia are important prospects that GAIL is currently exploring actively for LNG sourcing. GAIL has co-promoted Petronet LNG Ltd (PLL), along with oil majors Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL) for the import of LNG into India. PLL imports Natural Gas in the liquefied form (LNG) from Ras Laffan Liquefied Natural Gas Company Ltd, Qatar, re-gasifies the LNG at its terminals at Dahej (Gujarat) and sells the Re-liquified Natural Gas (RLNG) to users. PLL has a capacity of 5 MMTPA (million tons per annum) RLNG. GAIL's exemplary credentials in gas transmission and marketing have led to its appointment, by the Government of India, as the sole transporter and principal marketer of RLNG produced by PLL. Currently, GAIL markets about 11 MMSCMD of RLNG from the Dahej terminal and transports about 18 MMSCMD. The Government of India has entrusted GAIL with the responsibility of reviving the LNG terminal at Dabhol in Maharashtra, as well as sourcing LNG for the terminal. GAIL has already signed a Sales Purchase Agreement for import of LNG from Iran for 2 MMTPA (40% of the LNG being imported by India from Iran).
Page | 16

LPG Transmission - Overview

GAIL is the first company in India to own and operate pipelines for LPG transmission. It has 1,900 km LPG pipeline network 1,300 km of which connects the western and northern parts of India and 600 km of networks is in the southern part of the country connecting Eastern Coast. The LPG transmission system has a capacity to transport 3.8 MMTPA of LPG.LPG transmission through pipelines was 3161 TMT in the year 2009-10.

LPG Transmission - Characteristics

GAIL has a share of about 10% of the Indian LPG market in LPG production and 7% in LPG sales. GAIL produces LPG through fractionation in Gas Processing Units, known as Straight Run LPG. GAILs LPG is an eco-friendly fuel and provides a cheaper and effective means of reducing pollution and increasing productivity.

Natural Gas

Transmission

Adequate supply of affordable energy is a pre-requisite for sustained growth, especially in the developing and emerging economies. Natural gas has emerged as most benign fuel in this regard. Natural Gas is a new age fuel. With only one carbon and four hydrogen atoms per molecule, Natural
Page | 17

Gas has the lowest carbon to hydrogen ratio, hence it burns completely, making it the cleanest of fossil fuels. Natural Gas satisfies most of the requirements for fuel in a modern day industrial society, being efficient, non-polluting and relatively economical. The periodic uncertainties and volatility in
Sector Natural Gas is used

Generation of electricity by utilities Fertilizer Industry Industrial Domestic and commercial Automotive Petrochemicals

As fuel for base load power plants In combined cycle/co-generation power plants As feed stock in the production of ammonia and urea As an under boiler fuel for raising steam As fuel in furnaces and heating applications For heating of spaces and water For cooking As a non-polluting fuel As the raw material from which a variety of chemical products e.g. methanol, are derived

Natural Gas comes in 4 basic forms: Liquefied Natural Gas (LNG) - Natural Gas which has been liquefied at ( Minus) 160 degree Centigrade. Natural Gas is liquefied to facilitate transportation in large volumes in cryogenic tankers across sea. Regasified Liquefied Natural Gas (RLNG) LNG Re-gasified before transporting it to consumers through Pipelines. Compressed Natural gas (CNG)- Natural Gas compressed to a pressure of 200-250 kg/cm2 used as fuel for transportation. CNG decreases vehicular pollution on the virtue of being cleaner fuel than liquid fuels. Piped Natural gas, PNG - Natural Gas distributed through a pipeline network that has safety valves to maintain the pressure, assuring safe, uninterrupted supply to the domestic sector for cooking and heating / cooling applications. Indias natural gas scenario is undergoing rapid changes and gas is poised to occupy a significant share in the energy mix. In order to diversify energy

LPG & OTHER LIQUID HYDROCARBONS :LPG & Allied Products: LPG
Page | 18

GAIL produces LPG through fractionation, known as Straight Run (SR). GAIL LPG is an ecofriendly fuel and provides a cheaper and effective means of reducing pollution and increasing productivity. Characteristics of GAIL LPG: Processed from Natural Gas.
Has a high vapor pressure Vis-a Vis Refinery LPG Vaporizes at atmospheric temperature and pressure

Clean fuel with almost nil unsaturated compounds Has a higher calorific value than Refinery's LPG and hence gives more value for money Its homogeneous composition results in more efficient combustion The air fuel ratio need not be changed with every batch
No Impurities like Sulphur, carbon dioxide, traces of oxides of nitrogen. Hence lower

corrosion. Has nil moisture content

Customer-friendly fuel as it is easy to transport, store and use GAIL LPG GAIL produces over a million tones LPG - equivalent to around seventy million domestic

LPG cylinders.

GAIL's LPG transmission business includes the 1927-km LPG pipeline networks that connect the Western, Northern and Southern part of India. These include the world's longest exclusive LPG pipeline from Jamnagar, Gujarat, to Loni, near Delhi (another 70 km has been added to this system between Kandla and Samakhiali, in Gujarat, to facilitate the transportation of LPG imported at Kandla port). GAIL's LPG pipelines can transport 3.8 MMTPA of LPG, and have the capacity to supply more than 20% of the LPG consumed in the country.
Page | 19

LPG & Allied Products : Propane

GAIL is India's only producer of Propane, a member of liquid hydrocarbon group, popularly known as GAIL Propane. It is produced at the company's fractionators at Vijaipur in Madhya Pradesh and at Pata in Uttar Pradesh. GAIL Propane is an eco-friendly fuel and provides an effective way of reducing pollution and increasing productivity. Our Patrons also call it a "Fuel of Great Value" because of its customer-friendly features. Propane is the most preferred fuel all over the world due to its diverse applications in industrial, domestic, commercial and auto sector, as fuel, refrigerant and source of clean captive power. However, in India, Propane finds its application as fuel mainly in the industrial sector.

LPG & Allied Products: Pentane

LPG extraction from natural gas is carried out by cryogenic turbo-expander process at all LPG plants of GAIL. In this process Propane & Butane are extracted from natural gas by cooling it to -55 to -68 oC. As natural gas contains heavier components (Pentane, Hexane, Heptane etc.) than Propane & Butane, whenever natural gas is cooled for the extraction of LPG, these heavier components also get liquefied along with Propane & Butane. LPG is separated from this total liquid by distillation and the balance liquid is called Natural Gasoline Liquid. This NGL is then further processed to manufacture Pentane and Special Boiling Point Solvent.

SBPS
The extraction of LPG from natural gas is carried out by cryogenic turbo - expander process at all LPG plants of GAIL. In this process, Propane & Butane are extracted from natural gas by cooling it to -55 to -68 oC. As natural gas contains heavier components (Pentane, Hexane, Heptane etc.) than Propane & Butane also, whenever natural gas is cooled for the extraction of LPG, these heavier components also get liquefied along with Propane & Butane. LPG is separated from this total liquid by distillation and the balance liquid is called Natural Gasoline Liquid. This NGL is then further processed to manufacture Pentane and Special Boiling Point Solvent.

LPG & Allied : LPG Pipelines

Page | 20

The demand for LPG (Liquefied Petroleum Gas) as domestic fuel in the Northern, Central and Western regions is being met from indigenous LPG production from oil refineries and from gas processing units. Besides domestic LPG production sources, the deficit in demand-Supply is being met through import of LPG at Kandla on the West coast. Increasing demand for LPG has also put tremendous pressure on the rail/road network. Accordingly, requirement of LPG pipeline starting from Kandla port up to Loni was identified and world's longest LPG pipeline was commissioned by GAIL to facilitate transportation of imported LPG and LPG production from the indigenous units at Jamnagar to the northern region.

Naphtha:
The extraction of LPG from natural gas is carried out by cryogenic turbo - expander process at all LPG plants of GAIL. In this process Propane & Butane are extracted from natural gas by cooling it to -55 to -68 degrees C. As natural gas contains heavier components (Pentane, Hexane, Heptanes etc.) than Propane & Butane also, whenever natural gas is cooled for the extraction of LPG, these heavier components also get liquefied along with Propane & Butane. LPG is separated from this total liquid by distillation and the balance liquid is called Natural Gasoline Liquid. This NGL is then further processed to manufacture Pentane and Naphtha.

PETROCHEMICALS
GAIL's the country's premier Natural Gas Marketer & Transporter, diversified into the manufacturing and marketing of downstream HDPE & LLDPE from natural gas cracking at its Pata (Uttar Pradesh state, India) unit from 19th April 1999. The beginning was with a name plate capacity 2,60,000 MTPA of HDPE and LLDPE. GAIL is the only HDPE/LLDPE plant operating in Northern India and has a dominant market share in North India. The primary thrust markets for the polymers had been Western India, but, with the entry of GAIL in the HDPE & LLDPE market segments, today north India has also witnessed a rapid and significant growth in the polymer downstream processing segments. In a successful span of about a decades of establishing and marketing its grades under the brand names G-Lex & G-Lene,
Page | 21

GAIL has along side augmented its name plate capacity of HDPE & LLDPE to 4,10,000 MTPA by adding another dedicated HDPE downstream polymerization unit of 1,00,000 MTPA. GAIL has two trains of dedicated HDPE units of the Mitsui slurry technology license ( capacity 2 x 1,00,000 MT/A)and marketing the grades under the brand name of G-lex and one train of the HDPE/LLDPE swing plant under the Novacor solution based technology license( capacity 2,10,000 MT/A).

GAILS SUBSIDIARIES & JOINT VENTURES :Company has been the pioneer for City Gas Projects in India. With natural gas emerging as the fuel of choice in the country, company believes that the next decade will belong to the city gas. Company was the first Company to introduce City Gas Projects in India for supplies to households, commercial users & for the transport sector by forming Joint Venture Companies.

SUBSIDIARIES
GAIL Gas Limited Company has formed a wholly owned subsidiary named GAIL Gas Limited for implementing City Gas. Projects & CNG corridor in the country. The subsidiary company will act as a vehicle for bidding for laying of pipeline infrastructure in the country.

GAIL Global (Singapore) Pte. Limited

Company has a wholly owned subsidiary, namely, GAIL Global (Singapore) Pte. Limited to manage investments abroad. Company is looking for further business opportunities through this susidiary company.

Brahmaputra Cracker & Polymer Limited :-

Page | 22

Company has 70% equity share with Oil India Limted (OIL), Numaligarh Refinery Limited (NRL), Govt. of Assam, each having 10% equity share. The authorized capital of the company is Rs 1,200 Crores. A Feedstock Supply Agreement has been signed between Brahmaputran Cracker & Polymer Limited (BPCL), & all the three suppliers viz, Oil & Natural Gas Company Limited, Oil India Limited & Numaligarh Refinery Limited.

GAILTEL GAILTEL, the GAILTEL service arm of GAIL, is engaged in providing GAILTEL services to mission critical in-house SCADA and ERP services apart from commercially leasing services to GAILTEL Operators and ISPs across India. GAILTEL has been operating commercially in the Indian GAILTEL sector since June 2001. It is also responsible for meeting the captive communication requirements of GAILs pipeline installations. GAILTEL, today serves most of the GAILTEL operators of the country, which include HUTCH, VSNL, Airtel, Idea Cellular, Reliance Infocom, Tata Tele services, to name a few. Its high speed optic-fibre network extends to well over 13,000 Km connecting around 200 cities across various states like: Rajasthan, Gujarat, Madhya Pradesh, Maharastra, Uttar Pradesh, Andhra Pradesh, Haryana, Chandigarh, Delhi, Karnataka, Tamil Nadu and Kerela. With SDH & DWDM as the core layer, the network is built largely along the highly secured GAILs cross country pipeline corridor and also configured in "self-healing" rings to ensure highly reliable and error free service to its esteemed customers. The network is managed centrally on round the clock basis from a state-of-art Network Management Centre.

Page | 23

JOINT VENTURES
Aavantika Gas Limited (AGL) AGL is a Joint Venture of your Company & Hindustan Petroleum Corporation Limited (HPCL) for implementation of City Gas Projects in the cities of Madhya Pradesh. AGL has started project implementation activities in the city of Indore. Company has 22.5 % stake in the Company along with HPCL as equal partner.

Bhagyanagar Gas Limited (BGL)

BGL is currently operating three Autos LPG stations in Hyderabad & one Auto LPG station in Tirupathi. It is currently operating six CNG stations in Vijayawada & three CNG Stations in Hyderabad. Company has 22.5% stake in the company along with HPCL as equal partner

Central U.P. Gas Limted (CUGL)

CUGL is currently operating five stations in Kanpur, one CNG station in Kanpur is under commissioning. CUGL is building MDPE network for supply of PNG to domestic, commercial & industrial sectors in the city of Kanpur. Company has 22.5% stake in the Company along with BPCL as equal partner.

Green Gas Limited (GGL)

GGL is currently operating four CNG stations in Lucknow & three CNG stations in Agra. GGL will also take up project implementation in other cities of Western UP on the basis of gas availability & project viability. Company has 22.5% stake in the company along with IOC as equal partner.

Page | 24

Indraprastha Gas Limited (IGL)

IGL is supplying piped gas to around 1 Lac domestic, 276 commercial, 16 small industries consumers & CNG to over 1.35 Lacs vehicles through 153 CNG stations. IGL is catering to worlds largest CNG bus fleet of over 11,000 buses in Delhi. Company has 22.5 % stake in the company along with BPCL as equal partner.

Mahangar Gas Limted (MGL)

MGL has set up 128 CNG stations catering to over 1.85 Lacs vehicles spread over Mumbai, Thane, Mira-Bhayandar & Navi-Mumbai areas besides supplying PNG to over 3.40 Lacs domestic, 907 commercial & 36 small industrial consumers. Company has 49.75% stake in the company along with British Gas as equal partner.

Maharashtra Natural Gas Limted (MGNL):

MNGL is a Joint Venture of your Company & Bharat Petroleum Corporation Limited (BPCL) for implementation of City Gas Projects in Pune city. MNGL is developing necessary infrastructure for supply of CNG & PNG in the city. Company has 22.5 % stake in the company along with BPCL as equal partner.

Petronet LNG Limited (PLL):

PLL was formed for setting up of LNG import & regasification facilities. PLL has a long term LNG supply contract with Ras Gas, Qatar for impmort of 7.5 MMTPA. PLL Dahej terminal is being expanded to 10 MMTPA capacity. Company has 12.50% stake in the company along with BPCL, IOC & ONGC as equal partners.

Ratnagiri Gas & Power Private Limited (RGPPL):

RGPPL is a Joint Venture Company between Company, NTPC, Financial Institutions & MSEB. Company has 28.33% stake in the company along with NTPC as equal partner. The capacity of the Ratnagiri Gas & Power Station is 2,150 MW. Company has made an investment of Rs.500 Crores & has approved additional equity of Rs. 475 Crores to RGPPL, out of the Rs.475 Crores, an amount of Rs. 92.90 Crores has been paid during the month of May, 2008.
Page | 25

Tripura Natural Gas Company Limited

TNGCL is presently supplying gas to 6600 domestic, 104 commercial, 21 industrial consumers & has set up one CNG station in Agartala city. Company has 29% stake in the company.

Ratnagiri Gas And Power Private Limited (RGPPL) RGPPL is a Joint Venture Company between GAIL (India) Ltd, NTPC Limited, Indian Financial Institutions (IFIs) and MSEB Holding Company Limited. The Promoters have incorporated and registered the Company as a private limited company on 8th July 2005. The authorized share capital of the company is 2000 Crore and the shareholdings of GAIL, NTPC and IFIs are 28 1/3% each and MSEB 15%. The Project is located at Ratnagiri district of Maharashtra state about 340 Km south of Mumbai. The project has power generation capacity of 2150 MW along with an integrated 5 MMTPA LNG terminal. Primary fuel for the power plant is natural gas. Presently LNG terminal revival work is under progress and is expected to be completed in year 2008. The Company is not listed to any Stock Exchange of India/abroad.

Gujarat State Energy Generation Ltd Gujarat State Energy Generation Ltd was incorporated on December 13, 1998, with Gujarat State Petroleum Corporation Ltd (GSPCL) as the main promoter, to set up a Natural Gas-based power project at Hazira. The project was planned with a generation capacity of 156 MW by utilising natural gas from Hazira gas fields jointly owned by GSPCL and NIKO Resources, Canada, at an estimated cost of Rs. 576 crore with a 70:30 Debt to Equity ratio within 21 months from June 1, 2000. Fuel Supply Agreement with GSPCL / NIKO and Fuel Transportation Agreement with Gujarat State Petronet Ltd were entered into to securitize fuel supply. An arrangement is in place to sell power to the Gujarat Electricity Board through a Power Purchase Agreement signed on February 28, 2000, for 20 years The Combined Cycle Power Plant comprises of two Gas Turbines (52 MW each), one Steam Turbine (52 MW) and 2 Heat Recovery Steam Generators.

Page | 26

GAIL accepted an equity offer of 12 % in March2001 following due diligence exercise. Commercial production was declared with the commissioning of the Gas Turbines in open cycle mode in December 2001. Subsequent to successful completion of performance tests, Combined Cycle operation commenced from June 2002

GAIL in Corporate World :GAIL to supply gas to Barauni fertiliser, Bettiah power plant Gas Authority of India (GAIL), natural gas major, would supply gas to Barauni fertiliser factory and its 250-300 MW power plant at Bettiah through its 1,400 km Jagdishpur-Haldia pipeline by 2012. GAIL will supply Gas to both Barauni fertilizer factory and Bettiah power plant through two spur lines, the two spur lines would be laid down from Bakhtiarpur to Barauni and the other from Bakhtiarpur to Champaran via Chhapra. GAIL would supply 2.11 MMSCMD gas from its first spur line to the fertilizer factory, which would be revived by June 2012 through special purpose vehicle (a joint venture company promoted by
Page | 27

NFL, RCF and KRIBHCO) under the name of Urvarak Videsh, for a period of 15 years from the date of commencement of supplies.

GAIL signs gas co-operation pact with Karnataka GAIL (India) and Infrastructure Development Department (IDD) Karnataka signed a Gas Cooperation Agreement in Bangalore. Gas cooperation agreement between GAIL and IDD, Karnataka aims to develop the natural gas distribution and city gas infrastructure, to develop the use of eco-friendly fuels, especially Natural Gas/CNG/PNG/R-LNG and to promote a Joint Venture (JV) for domestic, industrial and transport sectors in the state of Karnataka. Government of Karnataka said that natural gas is a preferred fuel today for environmental and other reasons and with the recent discoveries of new natural gas find as well as the proposed GAIL pipeline to Bangalore, the state will now be able to obtain gas for its energy as well as other requirements. All success to GAIL in laying its pipelines to Bangalore The two organizations would initiate a joint exercise for immediate assessment of the demand potential of natural gas and allied products in the State. Besides, the cooperation is based on the strategy of API i.e. Awareness, Prevention and Implementation to work towards the goal of clean and green environment. Under the Cooperation Agreement, GAIL will use its technical and commercial expertise to study various options and to evaluate Energy Demand in the state. GAIL and IDD will conduct necessary techno-economic studies based on demand potential, including pipelines and City Gas Distribution Networks (CGD) prepare the preliminary Techno Economic Feasibility Report (TEFR) for infrastructure development. The Cooperation Agreement also provides for GAIL and IDC, to identify industrial clusters for distribution of Natural Gas as fuel and to determine modus operandi for setting up of joint ventures by GAIL in Karnataka. It may be recalled that GAIL Board had accorded in-principle approval for laying of the DabholBangalore gas pipeline during its meeting held in January 2008. Depending on the source and customer tie up, the 30`, 730 km Dabhol-Bangalore gas pipeline shall be designed to carry 16
Page | 28

MMSCD of gas and will need an investment of approximately Rs 44 billion (including 650 km of spur lines). The route of the proposed pipeline is from R-LNG Terminal of Ratnagiri Gas and Power (RGPPL) at Dabhol in Maharashtra up to Bangalore. The pipeline will pass through Ratnagiri and Kolhapur districts of Maharashtra; and Belgaum, Dharwad, Haveri, Davangere, Chitradurga, Tumkur and Bangalore districts of Karnataka. With this pipeline, natural gas from RGPPL`s R-LNG Terminal can be supplied to industrial clusters in the state of Maharashtra and Karnataka. GAIL will also be laying 840 km Kochi Kanjirkkod Bangalore / Mangalore pipeline which will pass through Kerala, Tamil Nadu and Karnataka at an estimated investment on this pipeline will be Rs 22 billion.

GAIL signs deal with fertilizer cos to pipe KG gas Reliance Industries` (RIL) Krishna-Godavari (KG) basin gas is all set to fuel fertilizer plants with GAIL (India) signing transportation agreements with fertilizer firms, reports Economic Times. Nagarjuna Fertilizers, Iffco and Chambal Fertilizers have alos signed the deal and nine other fertilizer companies are expected to sign transportation agreements with GAIL. The two parties also agreed on a commissioning period of three months. Despite inking gas salepurchase agreements with fertilizer companies, RIL was unable to transport KG gas to them due to differences over terms of agreement between GAIL and consumers. Shares of GAIL (India) gained Rs 5.8, or 2.47%, to trade at Rs 240.65. The total volume of shares traded was 338,758 at the BSE (3.28 p.m., Friday).

GAIL mulls investment of Rs 10 bn in CNG stations Government run, GAIL India is mulling to invest Rs 10 billion in setting up 2,000 compressed natural gas (CNG) dispensing stations on major national highways to create a CNG Quadrilateral, reports Economic Times. Chairman and managing director of the company said that the company was in a position to achieve its target in the next three years. He further said that GAIL Gas, a wholly owned subsidiary of the company has agreed to provide a support of Rs 1 billion in setting up CNG stations in cities along its parent company`s pipeline network.
Page | 29

In first part of the CNG Quadrilateral, five CNG stations would be set up on the Delhi-Mathura-Agra highway at Rs 490 million. The quadrilateral would need 14 million standard cubic metres of natural gas a day, he said. Currently, 400 CNG stations in the country sell 3.7 mmscmd of gas to automobiles. The company seeks to procure all of the 5 mmscmd gas from the initial output from Reliance Industries` eastern offshore KG-D6 fields for selling CNG to automobiles and piped natural gas to households for cooking purpose.

GAIL takes 9% stake in ONGC Petro-additions Gas Authority of India has acquired 9% equity stake in a petrochemical plant project of ONGC Petro additions (OPAL), coming up at Dahej in Gujarat. ONGC Petro-additions is a special purpose vehicle created for executing the Rs 135 billion petrochemicals complex at Dahej, in Gujarat. GAIL, which already has a presence in the petrochemicals business, is reported to have sought 19% equity in OPAL. With 50% of the project already tied up and 25% reserved for public issue, ONGC said OPAL has had to turn down a lot of overseas offers. The public offer, which will be at a premium, is expected to come later after the project gets off the ground. OPAL will use C2-C3 (ethane and propane) compounds extracted from imported liquefied natural gas (LNG) to make polymers. Commissioning of the project has been tied to the setting up of a cracker unit. GAIL in discussions with Shell to import LNG cargo for Dabhol GAIL India is in discussions with Shell to import one LNG cargo for commissioning the Dabhol LNG terminal, meant to feed the adjoining power plant. The company said Shell has committed supplying them one cargo. GAIL has expanded into gas processing, petrochemicals, liquefied petroleum gas transmission and telecommunications. GAIL signs gas supply contract with National Fertlilizers GAIL (India) today signed term sheets for supply of natural gas to Barauni plant of Urvarak Videsh and Bhatinda, Panipat and Nangal plants of National Fertilizers (NFL).

Page | 30

The terms sheets were signed by Director (Marketing), GAIL, CMD and Director (Technical), NFL, Chairperson, Urvarak Videsh and Director (Finance), NFL in presence of Union minister of Chemicals and Fertilizers and Steel. NFL is operating its three fertilizer plants at Panipat, Bathinda and Nangal Plants with fuel oil as feedstock. The changeover of feedstock from fuel-oil to natural gas is estimated at a cost of Rs.11.50 billion for each plant. The changeover of feedstock will reduce the energy consumption in these plants, which in turn will, reduce the fertilizer subsidy outgo of government of India to the tune of Rs. 6.62 billion per annum during initial five years. This saving is expected to go up to Rs. 7.41 billion per annum from 6th year onwards after completion of these projects. According to the term sheets, GAIL will supply 2.11 MMSCMD gas to Barauni plant, 0.88 MMSCMD, 0.87 MMSCMD and 1.03 MMSCMD for NFL Panipat, Bhatinda and Nangal plants respectively. The initial supply date in case of Barauni is Oct 2012-June 2013 and June 2012 - December 2012 in case of NFL fuel oil conversion plants. The contract period is 15 years from the date of commencement of supplies. Gas for the supply will be sourced from sources like KG Basin block / other NELP blocks / RLNG etc.

GAIL commissions Ambewadi-Usar pipeline GAIL (India) commissioned the 30`` dia, 50 km Ambewadi Usar pipeline. GAIL commissioned the pipeline connecting tap-off point at Ambewadi on the Panvel Dabhol pipeline of GAIL (which provides gas to Dabhol power plant) to the existing pipeline of GAIL in the Usar region. The new pipeline will enable supply of RLNG to various customers in Usar region such as RCF, Thal, Ispat Industries Limited, Vikram Ispat, HR Johnson, Supreme and NITCO. Out of these, Supreme and NITCO are new customers, whereas other companies are presently taking APM gas available from Thal. However, these companies will now benefit from additional availability of natural gas in the form of RLNG. GAIL has already commissioned 30``, 590 km Dahej - Uran and Dabhol Panvel Pipeline Phase I, DUPL spur lines in Kalyan, Turbhe and Taloja area and 30``, 70 km Korgaon Pune pipelines to
Page | 31

supply natural gas to various customers in the region. Presently, pipeline projects to provide connectivity to TATA Power and HPCL are under progress. GAIL owns and operates a network of around 7850 km of Natural Gas high pressure trunk pipeline with a capacity to carry 148 MMSCMD of natural gas across the country. GAIL is implementing projects to lay additional 5,500 km of natural gas pipelines at an estimated investment of Rs 200 billion. These would include large trunk pipelines along with smaller pipelines which would provide connectivity among trunk lines so that the Company is able to have a grid. When these pipelines are commissioned, the capacity is expected to increase from 148 MMSCMD at present to around 300 MMSCMD. New natural gas trunk pipelines being laid are 610 km Dadri Bawana Nangal pipeline passing through UP, Delhi, Haryana and Punjab, 310 km Chainsa Gurgaon Jhajjhar Hissar pipeline passing through Haryana and Rajasthan, 876 km Jagdishpur Haldia pipeline passing through West Bengal, Jharkhand, Bihar and U.P., 730 km Dabhol Bangalore pipeline passing through Maharashtra and Karnataka , 840 km Kochi Kanjirkkod Bangalore / Mangalore pipeline passing through Kerala, Tamil Nadu and Karnataka. In addition to these, GAIL is augmenting the capacities of 3 existing pipelines, viz. Dahej (Gujarat) Vijaipur (Madhya Pradesh) pipeline, Vijaipur (Madhya Pradesh) Dadri (Uttar Pradesh) pipeline, Vijaipur (Madhya Pradesh) Auraiya (Uttar Pradesh) Jagdishpur (Uttar Pradesh) pipeline.

GAIL, IFFCO sign MOU for gas sector projects GAIL and Indian Farmers Fertiliser Cooperative (IFFCO) signed a memorandum of understanding (MoU) for cooperation in natural gas sector related opportunities in India. As per the agreement both the companies would jointly evaluate the potential of setting up of a gas based power plant and other industries including Chemicals, Fertilisers, Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in India and also explore the possibility of sourcing of Natural Gas / LNG for the identified projects.

Gail Signed MOU with other Corporates for Gas Supply :-

Page | 32

GAIL signed Term Sheets for supply of natural gas to Barauni plant of Urvarak Videsh Limited and Bhatinda, Panipat and Nangal plants of National Fertilizers Limited. NFL is operating its three fertilizer plants at Panipat, Bathinda and Nangal Plants with fuel oil as feedstock. According to the Term Sheets, GAIL will supply 2.11 MMSCMD gas to Barauni plant, 0.88 MMSCMD, 0.87 MMSCMD and 1.03 MMSCMD for NFL Panipat, Bhatinda and Nangal plants respectively. The initial supply date in case of Barauni is Oct 2012-June 2013 and June 2012 - December 2012 in case of NFL Fuel Oil conversion plants. The contract period is 15 years from the date of commencement of supplies. The Barauni plant will be supplied gas through GAILs 1400 km (including spurlines) Jagdishpur-Haldia pipeline (JHPL) to be laid at an investment of approx. Rs. 7000 crore, whereas NFL plants at Bhatinda, Panipat and Nangal will be supplied gas through GAILs 610 km DadriBawana-Nangal pipeline to be laid at an investment of Rs. 2500 crore. The 32 MMSCMD Jagdishpur Haldia pipeline will open up energy corridor for major industrial use by other fertilizer plants and steel plants along the pipeline route. The revival of Barauni unit by Urvarak Videsh Limited co-promoted by RCF, Kribhco and NFL is scheduled to be complete by 2012-13. The conversion of NFL plants is scheduled to be complete by 2011.

Gas Cooperation Agreement with Tamil Nadu GAIL signed a Gas Cooperation Agreement with Tamil Nadu Industrial Development Corporation Limited (TIDCO). As a part of the Gas Cooperation Agreement, GAIL will conduct preliminary techno-economic feasibility study for gas demand potential in industrial, commercial, transport, residential sectors and evaluate medium and long term gas demand potential of the State. GAIL will also assess pipeline infrastructure and associated facilities required for supply of natural gas including optical fibre network. The Company will determine Natural Gas supply options to Tamil Nadu on long term competitive basis.

Gas Cooperation Agreement with Himachal Pradesh GAIL signed a Co-operation Agreement with the Department of Industries, Himachal Pradesh for extension of the proposed Dadri-Bawana-Nangal natural gas pipeline up-to this region, a joint exercise for assessment of the demand potential of natural gas and allied products in the state of Himachal Pradesh and for looking into feasibility of extending the proposed Dadri-Bawana-Nangal natural gas pipeline upto Himachal Pradesh. The Gas pipeline will bring clean and environment
Page | 33

friendly fuel to various consumers in the region, which include Industrial, domestic and transport sectors. The availability of gas in the region would herald the use of a more efficient energy resource, which will increase the competitive edge of the industries using natural gas.

MOU with BPCL GAIL and Bharat Petroleum Corporation Limited signed a Memorandum of Understanding for cooperation in the areas of Natural Gas Transmission and distribution, LPG Pipeline, City Gas Projects, Exploration & Production, use and marketing of Naphtha, Infrastructure Projects and Technology & Knowledge Sharing.

GAIL IN ADVANCE STAGE OF IMPLEMENTATION OF TECHNOLOGY :E-BUSINESS GAIL made significant investments in IT infrastructure and software over the last five years in view of the current developments in the industry and GAIL's growth plans. In the last two years, GAIL has taken significant steps to leverage its strength of existing robust IT infrastructure. An IT Policy and an IT Strategy have been put in place. GAILs IT strategy is an Integrated Approach. In todays competitive world, IT strategy can provide the real competitive edge to companies. The company's IT initiatives are spread across all its functional areas and the objective is to use IT to the best possible extent. IT contributes directly to work efficiency and transactional efficiency, leading to cost reduction and increased customer satisfaction. Thus, GAIL has undertaken a number of IT initiatives which have significantly contributed to cost reduction and operational efficiency. Rather than relying on reams of papers and files and loads of unclassified information, one must develop a system of electronic exchange of classified and appropriate
Page | 34

information. GAILs IT strategy borders on these principles in an effort to become a techno savvy and efficient company.

Personal E-Banking E-Banking at GAIL is an attempt to enable safe and easy handling of employees salary accounts and miscellaneous claims. Personal e-Banking has been introduced in the corporate office and Noida wherein the salary and other payments get credited to employees account by electronic transfer. ATM facilities have been provided at corporate office and Noida office for facilitating transactions. Organisational E-Banking (E-Receivables and E-Payments) GAIL has also introduced organizational E-Banking covering E-Receivables and E-Payments, for all the customers and vendors. An integrated system has been developed to enable efficient and speedy transactions involving GAIL, banks, customers and vendors. Besides better operational efficiency, lesser paper work and better utilization of manpower, there has helped reduction in transaction cycle time leading to financial advantages. E-Investment of Surplus funds An online system for investing surplus funds has been developed, wherein the banks are able to quote their rates online, the transactions are compared and processed electronically before the final investment is made. This better returns. Paperless FAX GAIL has made a shift from the traditional FAX rooms to Paperless FAX System based on Fax servers, which is an e-mail-based system through which employees can conveniently send and/or
Page | 35

E-investment system has resulted in process cycle time

reduction and cost effectiveness for both GAIL and the banks, besides

receive fax messages through their messaging system mailbox internally or by accessing the messaging system from anywhere in India and abroad with the help of the Internet. The IT department has estimates that by adopting this practice on a company-wide basis, a saving of around Rs 25 lakh per annum can be achieved, excluding the STD charges, which register a higher amount when a fax message is sent through an ordinary fax machine, the fax server. Bill Watch System Processing of the suppliers bills has been a major area of concern for business organizations and their suppliers. GAIL has made a sincere effort to overcome delay in processing of bills by introducing an online Bill Watch System, by which suppliers, vendors and contractors are enabled through GAIL website to track the status of their pending bills. All they have to do is enter the receipt number given at the time of submission of the bills and the system informs them instantly about the detailed status of their bills and at which level the bills are pending, if applicable. This is an important step towards strengthening our partnership with our suppliers, vendors and contractors, and creates the needed supply chain efficiency. There are significant results achieved at all the locations wherein more than 90% of bills are cleared within 15 days after introduction of the Bill Watch System. Video Conferencing GAIL has one of the best Video Conferencing facilities connecting 23 major work centers and sites so far, which will be extended to other locations as well. This facility is being used for conference inaugurations, key presentations and quick business reviews, internally. It also helps in cost-efficient conferencing with foreign vendors and suppliers to discuss key commercial issues. File Watch System -

Page | 36

One of the key factors of success of a progressive organization is fast and transparent decision making. To enable this GAIL has introduced File Watch System which is a web based centralized system, wherein brief information, about all the files, including dates of entry and exit, are necessarily being entered at initiation level as well at all the transaction levels where the file moves. File watch system helps users, track the movement and status of the files, as well as the time taken by the individual officers to clear the files and the total time taken for approvals. The inbuilt aspect of accountability in this system, cuts down the decision making time, which is a major cause of concern, especially in PSUs. Reshaping our organization entails a fresh perspective of things which is why we have the File Movement System and the Bill Watch System in place.Reaching Employees (Corporate Intranet /100 % e-Mail Access / Internet Access to Executives) In todays era of knowledge workers, it is of paramount importance to be well informed about all the happenings in the micro and macro business environment, on time. To facilitate this, GAIL has achieved milestone of providing e-mail access to each and every employee of company and further to enhance external orientation, all executives of the company have Internet access. Banking upon this extensive reach of computers and e-mail facility to all the employees, company has developed a Corporate Intranet, which is a dedicated and a powerful medium of information sharing between all the employees and the different business functions of GAIL. The intranet is constantly updated and this sharing of information is on a continuous basis.

Enterprise Resource Planning -

GAIL is in the process of implementing the Enterprise Resource Planning (ERP) system. ERP implementation would improve the operational efficiency, productivity and customer satisfaction levels, besides optimization of cost, inventory and manpower utilization. This will also lead to efficient Supply Chain Management. ERP
Page | 37

implementation would also lead to Integrated business & process control systems, Standardized processes by adopting best industry practices across locations and functions, Efficient and timely provision of Management Information for better decision support and operational control, and Enabling internal performance measurement and Improved responsiveness to changing market conditions, The major benefits of GAIL's IT initiatives include cost reduction, operational efficiency, faster decision making, better service to customers, better vendor management, seamless and faster information sharing, quick response time with better and faster communication. OBJECTIVES

Enable GAIL to leverage information for competitive advantage in a deregulated and highly competitive market scenario Move up the value chain Achieve higher customer service and satisfaction Improve operational efficiency and productivity Optimization of cost

ERP SOLUTION FOR GAIL

GAIL decided to implement SAP - ERP solution after due diligence SAP commands over 70 % market share SAP has been implemented in over 3,50,000 organizations worldwide including most oil & gas majors SAP is built on Global Best Business Practices

Page | 38

FINANCIAL PERFORMANCE OF GAIL FOR THE YEAR 2010-11

GAIL (India) Limited has recorded sustained performance in all key physical as well as financial parameters in the Financial Year 2010-11. GAIL (India) Limited has recorded sustained performance in key physical as well as financial parameters in the Financial Year 2010-11. According to the audited figures, Turnover (net of excise duty) in the year 2010-11 increased by 30 per cent to Rs. 32,459 crore from Rs. 24,996 crore in FY
Page | 39

2009-10. The Profit Before Tax during the year 2010-11 increased by 14 percent to Rs. 5,240 crore from Rs. 4,578 crore in the previous year. The Profit After Tax during the year 2010-11 increased by 13% to Rs. 3,561 crore from Rs. 3,140 crore in the previous year. The Gross Margin during the year 2010-11 increased by 15 percent to Rs. 5,973 crore from Rs. 5,210 crore. The Board of Directors has recommended payment of total dividend at the rate of 75 percent on the paid-up share capital of the Company for FY 2010-11 inclusive of 20 percent interim dividend already paid. During the year 2010-11, as per consolidated financial statements, the total group sales (net of Excise Duty) were Rs. 35,107 crore. The consolidated Gross Margin was Rs. 7,065 crore, the Profit before Tax was Rs. 5,799 crore and Group Profit after Tax was Rs. 4,021 crore.The Earning Per Share (EPS) was Rs. 28.07 per share in the year 2010-11 as against Rs. 24.75 per share in the year 2009-10. The EPS as per consolidated statement was Rs. 31.70 per share as against Rs. 26.23 per share in the previous year. The decrease in net profit during the fourth quarter of the current financial year was mainly due higher LPG Subsidy contribution by the Company.

Financial Performance of 2010-11

Segment-wise Revenue During the Current financial year, revenues from Natural Gas Transmission business have increased by 20 percent to Rs. 3790 crore as against Rs.3168 crore in last year. The revenues from LPG transmission during the current financial year have increased by 6 percent to Rs. 475 crore as against Rs. 447 crore in last year. The sales from Natural Gas Trading during current financial year increased by 37 percent to Rs. 25,667 crore as against Rs.18,803 crore in last year. The net sales from Petrochemicals business have increased by 2 percent to Rs. 2,960 crore as against Rs.2,912 crore in last year. The net sales from LPG and Liquid Hydrocarbons business during the current financial was Rs. 2,786 crore as against Rs. 2833 crore in last year.The increase in net profit during the current financial year was mainly due to the increase in Natural gas Trading and Transmission and increase in petrochemicals sales. Physical Performance During the current financial year, the Natural Gas transmission was 117.91 MMSCMD, increased by 10 percent from 106.74 MMSCMD in the last year. The LPG transmission during the current
Page | 40

financial year was 3,337 TMT, up by 6 percent from 3,161 TMT in the last financial year. The Natural Gas sales during the current financial year were 83.23 MMSCMD, up 2 percent from 81.43 MMSCMD in the last year. The LPG and Other Liquid Hydrocarbon production during the current financial year was 1,369 TMT, as against 1440 TMT in the last year. The LPG and Other Liquid Hydrocarbon sales during the current financial year were 1373 TMT, as against 1443 TMT in the last year. During FY 2010-11, the petrochemical production was 416 TMT as against 417 TMT in the last year. The polymer sales during current financial year were 420 TMT as against 410 TMT in the last year. Q4 Results of 2010-11 GAIL (India) Limited registered a turnover (net of Excise Duty) of Rs. 8,894 crore in the fourth quarter of FY 2010-11 as against Rs.6,522 Crore, a 36 percent increase over the turnover in the corresponding quarter during the last financial year. GAILs Net Profit for the fourth quarter of the FY 2010-11 decreased by 14 percent to Rs. 783 crore against Rs. 911 crore in the corresponding quarter of previous year due to higher LPG Subsidy. The Gross Margin decreased by 9 percent to Rs. 1,340 crore in the fourth quarter of the current financial year as against Rs.1,465 crore in the corresponding period last year. The Profit Before Tax decreased by 13 percent to Rs. 1,139 crore in the fourth quarter of the current financial year against Rs.1,306 crore in the corresponding period of last year. Physical Performance During the fourth quarter of the current financial year, the Natural Gas sales were 85.73 MMSCMD, up 3 percent from 83.59 MMSCMD during the corresponding quarter of last year. During the fourth quarter of FY 2010-11, the petrochemical production was 122 TMT, up 9 percent from 112 TMT in the corresponding quarter last year. The polymer sales during the fourth quarter of the current financial year have increased by 32 percent to 144 TMT as against 109 TMT in the corresponding quarter in the previous year. The LPG transmission during the fourth quarter of the current financial year was 857 TMT as against 871 TMT during the corresponding quarter in the previous financial year. The LPG and Other Liquid Hydrocarbon production during the fourth quarter of the current financial year was 339 TMT as against 357 TMT in the corresponding quarter of last year. The LPG and Other Liquid Hydrocarbon sales during the fourth quarter of the current financial year were 339 TMT as against 356 TMT in the corresponding period last year. The Natural Gas transmission during the fourth quarter of the current financial year was 120.43 MMSCMD, increased by 5 percent from 114.76 MMSCMD in the corresponding period last year

Page | 41

ABOUT GAIL VIJAIPUR

GAIL VIJAIPUR HAVING

Page | 42

TWO PLANTS

LPG PLANT

HVJ PLANT

GAIL (India) Limited is having its most valued installation at Vijaipur Distt Guna of Madhya Pradesh Vijaipur. GAIL Vijaipur is the O&M Head Quarter of HVJ Natural Gas Transmission Pipeline (includes 6 compressor stations at different Locations, MCR station for monitoring pipeline health & hydraulics of natural gas), 2 gas processing units for Liquid Hydrocarbon production. Journey of GAIL Vijaipur has observed various milestones, Gas Processing Unit of Vijaipur complexs started operations in the early nineties.

Page | 43

GAIL (India) Limited is also having its first LPG Plant at Vijaipur. In this plant, LPG is extracted from Natural Gas by following latest Turbo-expander process. The design gas processing capacity of the plant (both trains combined) is 15 million standard cubic meters of gas per day (MMSCMD) with annual production installed capacity of LPG as well as the other allied products, Propane, Pentane and Naphtha being as following: PRODUCT LPG PROPANE PENTANE NAPHTHA INSTALLED 406000 MT 130000 MT 42000 MT 24000 MT ACHEIVED 455562 MT 85599 MT 25360 MT 41052 MT

Page | 44

Plant is now operated at 120 % of design gas processing capacity on continuous Basis. The present annual production of all the products achieved is as following:

Milestones of GAIL Vijaipur

Page | 45

Sr. No. 1. 2. 3. 4. 5. 6. 7. 8 9. 10. 11. 12. 13. 14

MILESTONES OF GAIL VIJAIPUR Commissioning of Compressor Stn. Completion of HVJ Pipeline Commissioning of LPG Phase I (TR-11) Commissioning of LPG Phase II (TR-12) Comm. of Propane recovery unit-1 Comm. of Propane recovery unit-2 Introduction of SPBS Pentane Storage & SBPS GREP Pipe Line Comm. of LEF Overhead Compressor Completion of DVPL Project Introduction of Naphtha VKPL, KMPL,JIPPL GREP up gradation Project

Year 1987 1988 1991 1992 1995 1996 1998 1998 1998 2001 2004 2006 2007 Ongoing

Page | 46

LPG PLANT WORKING -

Page | 47

GAS Compressor Stations :The HVJ pipeline system consists of six compressor stations Hazira, Vaghodia, Jhabua, Kheda, Vijaipur, and Auraiya. These compressor stations boost the pressure of natural gas for efficient transmission and for meeting the contractual pressure requirements of different consumers. The compressor stations are main consumers of Energy, their scheduling of operation is of utmost importance from energy efficiency point of view. These compressors are Gas turbine driven equipments. Due care has been taken at the time of selection of these machines from the energy consumption point of view & suitable capitalization clause has been applied during evaluation of technology. Details of Compressor Stations along the HVJ Pipeline are depicted in Exhibit BO.4.

Page | 48

Sr. No

Station Name

Compressor Details Comp. Make RR-Allison KC5 RR-RB211 KB5 RR-RB211 RR-Allison KC5 NP RR-RB211

Hazira

7+3 2+0

2 3

Vaghodia Jhabua

2+1 5+2 2+1

Khera

2+1

Page | 49

Centralized Pipeline Maintenance Base :

The Centralized pipeline group monitors the health of pipeline. This centralized group collates the data collected by other maintenance bases, analyzes the data & directs corrective action to be taken for mitigating the adverse impact of the issue. The pipeline integrity is ensured by analyzing the various parameters e.g. PSP, healthiness of cathodic protection. Pipeline maintenance is very technology driven & it is being planned without hampering the customer supply. The aerial surveys are also planned to verify the site reports. The pipeline integrity is ensured by analyzing the various parameters e.g. PSP, healthiness of cathodic protection. Pipeline maintenance is very technology driven & it is being planned without hampering the customer supply. The aerial surveys are also carried out to verify the site reports.

Gas Processing Unit :

The Capacity of Gas Processing complex at Vijaipur is 15MMSCMD (Million Metric Standard Cubic Meter Per day) of natural gas with two trains of 7.5 MMSCMD each. The total plant capacity is 6 Lakh MT of Liquid Hydro Carbons (LHC). The entire process consists of: 1) Gas receiving, drying and regeneration, 2) Pre-cooling & Chill down in Expander, 3) Distillation

Page | 50

Gas receiving, drying & regeneration : Natural gas is received from HVJ (Hazira-Vijaipur-Jagdishpur) pipeline at a pressure of around 54.2
Kg/cm2g and temperature of around 30 degree C. The gas flows to a Knock Out Drum (KOD) where any liquid present in the gas is knocked off. After this the gas is dried in Molecular Sieve Dryers to remove the moisture to below 1 ppm level. A two bed dryer system is used one for drying & another for regeneration.

Pre-cooling & Chill-down Section : The dried gas is cooled to approx (-) 69 degree C in two stages. In the first stage it is pre-cooled to
approx (-) 39 degree C in chiller by heat exchange with various cold streams generated later in the process in the chill down system and external Propane refrigeration. Propane refrigeration system is provided to supply additional refrigeration required in chiller and LEF condenser for Propane recovery. The condensed liquid is separated out in Separator-I and vapor is expanded through a single stage Turbo-expander. The vapor-liquid mixture from Turbo-expander is fed to Separator-II. The hydrocarbon liquid from the two separators, after heat exchange, is fed to the fractionation section to recover the products i.e. LPG, Propane, Pentane and SBP Solvent. Vapors (Lean Natural Gas) from the second separator are taken through the chiller to recover refrigeration. Then it is compressed to about 30 Kg/cm2g by the expander compressor. The quantity of lean gas required for NFL Plant & branch line of HVJ pipeline is compressed in a GT driven two stage Lean Gas Compressor to 45 Kg/cm2g (Medium Pressure Lean Gas) and the rest of gas is compressed to 55.2 Kg/cm2g (High Pressure Lean Gas) and sent to Vijaipur compressor station of HVJ pipeline for further transmission.

Distillation Section :
The distillation section consists of four columns namely LEF, Propane, LPG and Naphtha columns. (a) LEF Column Liquid from the two separators flows to chiller to supply cold & is then routed to Light Ends Fractionation (LEF) column. This column removes all Methane, Ethane and most of Carbon dioxide as overhead vapors. Bottom stream consists of part of Propane, Butane, Pentane &

Page | 51

heavier hydrocarbons. Condensing a part of overhead vapors generates reflux. The refrigerant duty is supplied by vapors from second separator and external Propane refrigeration. (b).Propane Column Liquid from LEF column bottom is fed to Propane column where Propane is produced as top product. LPG Column Liquid from Propane column bottom is fed to LPG column for separation of LPG & heavier hydrocarbons. This column separates LPG as top product. (d)NAPHTHA Column Liquid from the LPG column bottom is fed to NAPHTHA column where Pentane is produced as the top product and Naphtha as bottom product.

Storage facility:
Following facilities exist for storage of the products: (a) LPG (b) Propane (c) Pentane (d) Naphtha Eight Spheres of 2575 M3 water capacity each Three Spheres of 2575 M3 water capacity each Five Bullets of 198 M3 water capacity each Two Tanks of 1300 M3 water capacity each

Loading facility:
Following facilities exist for loading & dispatch of the products: (a) LPG (i) Rail Loading Gantry with Eighty loading points (ii) Road Loading Gantry with Eight loading bays
Page | 52

(b) Propane Pentane (d) Naphtha

Road Loading Gantry with Four loading bays. Road Loading Gantry with Two loading bays Road Loading Gantry with Three loading bays

Employee Profile: the core of the organization

GAIL, Vijaipur team consists of 327 employees, which includes both executives and nonexecutives. The average age of employees is 36 years. Technically Vijaipur executive team is highly capable with strong professional qualification base .Most of the core functions like O&M of Plant, HR, Procurement, and Finance are carried out by dedicated and trained employees. Some of the noncore activities like Housekeeping & Township Security have been out-sourced through agencies who are expert in their own areas. CISF has been kept for plant security.

COMPANY ACCOUNTING POLICY FOR 2010-11

(A) BALANCE SHEET 1) Fixed Assets Fixed Assets are valued at historical cost on consistent basis. In the case of commissioned assets where final payment to the supplier/contractors is pending, capitalization is made on provisional basis, including provisional liability pending approval of Competent Authority, subject to necessary adjustment in cost and depreciation in the year of settlement. 2) Intangible Assets Page | 53

Intangible assets like software, licenses and right-of-use of land including sharing of ROU with other entities which are expected to provide future enduring economic benefits are capitalized as Intangible Assets.

3) Capital Work in Progress (a) Crop compensation is accounted for under Capital Work-in-Progress on the basis of actual payments/estimated liability, as and when work commences where ROU is acquired. (b) The capital work in progress includes advance for capital goods/ material in Transit/ value of materials / equipment etc. received at site for use in the projects 4) Borrowing Cost Borrowing cost of the funds specifically borrowed for the purpose of obtaining qualifying assets and eligible for capitalization along with the cost of the assets, is capitalized up to the date when the asset is ready for use after netting off any income earned on temporary investment of such funds. Expenses Incurred During Construction Period. All revenue expenditure incurred during the year, which is exclusively attributable to acquisition / construction of fixed assets, is capitalized at the time of commissioning of such assets. 6) Depreciation/Amortization Depreciation on Fixed Assets other than those mentioned below is provided in accordance with the rates as specified in Schedule XIV of the Companies Act, 1956, on straight line method (SLM) on pro-rata basis (monthly pro-rata for bought out assets). Assets costing upto Rs.5,000/- are depreciated fully in the year of capitalization. Bunk Houses are amortized on assumption of five years life. Oil and Gas Pipelines including other related facilities are depreciated @ 3.17% per annum on SLM basis based on useful life of 30 years. Computers at the residence of the employees are depreciated @ 23.75% per annum on SLM basis. Furniture, Electric Equipments and Mobiles provided for the use of employees are depreciated @ 15% per annum on SLM basis.

Page | 54

Cost of the leasehold land not exceeding 99 years is amortized over the lease period. Depreciation due to price adjustment in the original cost of fixed assets is charged prospectively. Capital expenditure on the assets (enabling facilities), the ownership of which is not with the Company, is charged off to Revenue. Software / Licenses are amortized in 5 years on straight line method. No depreciation is being charged on ROU being perpetual in nature. After impairment of assets, if any, depreciation is provided on the revised carrying amount of the assets over its remaining useful life. Capital assets installed at the consumers premises on the land whose ownership is not with the company, has been depreciated on SLM basis in accordance with the rates as specified in Schedule XIV of the Company's Act, 1956 7) Foreign Currency Translation (a) Transactions in foreign currency are accounted at the exchange rate prevailing on the transaction date. (b) Monetary items (such as Cash, Receivables, Loans, Payables, etc.) denominated in foreign currencies, outstanding at the year end, are translated at exchange rates (BC Selling Rate for Payables and TT Buying Rate for Receivables) prevailing at year end. (c) Non monetary items (such as Investments, Fixed Assets, etc), denominated in foreign currencies are accounted at the exchange rate prevailing on the date of transaction(s). (d) Any gains or loss arising on account of exchange difference either on settlement or on translation is accounted for in the Profit & Loss account. 8) Investments Investments are classified into current and long term investments. Current investments are stated at lower of cost or market value. Long term investments are stated at cost and provision for diminution in value is made only if such decline is other than temporary in the opinion of management. 9) Inventories Raw materials and Finished products are valued at cost or net realizable value, whichever is lower.

Page | 55

Stock in process is valued at cost or net realizable value, whichever is lower. It is valued at cost where the finished products in which these are to be incorporated are expected to be sold at or above cost. Stores and spares and other material for use in production of inventories are valued at weighted average cost or net realizable value, whichever is lower. It is valued at weighted average cost where the finished products in which they will be incorporated are expected to be sold at/or above cost. Surplus / Obsolete Stores and Spares are valued at cost or net realizable value, which ever is lower. (d) Surplus / Obsolete Capital Stores, other than held for use in construction of a capital are valued at lower of cost or net realizable value. 10) Machinery spares, which can be used only in connection with an item of fixed asset and their use is expected to be irregular, are capitalized with the cost of that fixed asset and are depreciated fully over the remaining useful life of that asset. 11) Grants In case of depreciable assets, the cost of the assets is shown at gross value and grant thereon is taken to Capital Reserve which is recognized as income in the Profit and Loss Account over the useful life period of the asset. asset,

(B) PROFIT & LOSS ACCOUNT :12) Sale proceeds are accounted for based on the consumer price inclusive of Statutory Levies and charges up to the place where ownership of goods is transferred. 13) Income from Consultancy/Contact Services, if any, is recognized based on Proportionate Completion Method. 14) The interest allocable to operations in respect of assets commissioned during the year is worked out by adopting the average of debt equity ratios at the beginning and closing of that year and applying the average ratio of debt thus worked out to the capitalized cost. 15) Pre-project expenditure relating to Projects which are considered unviable / closed is charged off to Revenue in the year of declaration/closure.
Page | 56

16) Employees Benefits All short term employee benefits are recognized at there undiscounted amount in the accounting period in which they are incurred. Employee Benefits under Defined Contribution Plan in respect of provident fund is recognized based on the undiscounted obligation of the company towards contribution to the fund. The same is paid to the provident fund which is administered through a separate trust. Employee Benefits under Defined Benefit Plans in respect of leave encashment, compensated absence, post retirement medical scheme, long service award and other terminal benefits are recognized based on the present value of defined benefit obligation, which is computed on the basis of actuarial valuation using the Projected Unit Credit method. Actuarial liability in excess of respective plan assets is recognized during the year. Provision for gratuity as per actuarial valuation is funded with a separate trust. 17) Taxes on Income Provision for current tax is made as per the provisions of the Income Tax Act, 1961. Deferred Tax Liability / Asset resulting from timing difference between book and taxable profit is accounted for considering the tax rate and laws that have been enacted or substantively enacted as on the Balance Sheet date. Deferred Tax Asset, if any, is recognized and carried forward only to the extent that there is virtual certainty that the asset will be realized in future. 18) R&D Expenditure All expenditure, other than on capital account, on research and development are charged to Profit and Loss Account.

19) Exploration and Development Costs :i) The Company follows Successful Efforts Method for accounting of Oil & Gas exploration and production activities, which includes:Page | 57

Survey Costs are expensed in the year in which these are incurred. Cost of exploratory wells is carried as Exploratory wells in progresses. Such exploratory wells in progress are capitalized in the year in which the Producing Property is created or is expensed in the year when determined to be dry / abandoned. All wells appearing as exploratory wells in progress which are more than two years old from the date of completion of drilling are charged to Profits and Loss Account except those wells which have proved reserves and the development of the fields in which the wells are located has been planned. ii) Capitalization of Producing Properties Producing Properties are capitalized when the wells in the area / field are ready to commence commercial production having proved developed oil and gas reserves. Cost of Producing Properties includes cost of successful exploratory wells, development wells, initial depreciation of support equipments & facilities and estimated future abandonment cost. iii) Depletion of Producing Properties Producing Properties are depleted using the Unit of Production Method (UOP). The depletion or unit of production charged for all the capitalized cost is calculated in the ratio of production during the year to the proved developed reserves at the year end.

Companys share of production costs as indicated by Operator consists of pre well head and post well head expenses including depreciation and applicable operating costs of support equipment and facilities. 20. Contingent Liabilities and Capital Commitments:a. Contingent Liabilities are disclosed in each case above Rs5 lakhs. b. . Estimated amount of contracts remaining to be executed on capital accounts are disclosed in each case above Rs. 5 Lacs.
Page | 58

21.

Impairment The Carrying amounts of assets are reviewed at each Balance Sheet date. In case there is any indication of impairment based on Internal / External factors, an Impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

GENERAL 22. Prepaid expenses and prior period expenses/income upto Rs.1,00,000/- in each case are charged to relevant heads of account of the current year. 23. Liquidated Damages, if any, are accounted for as and when recovery is effected and the matter is

considered settled by the Management. Liquidated damages, if settled, after capitalization of assets are charged to revenue if below Rs. 50 lakhs in each case, otherwise adjusted in the cost of relevant assets. 24. Insurance claims are accounted for on the basis of claims admitted by the insurers. 25 a) Custom duty & other claims (including interest on delayed payments) are accounted for when there is significant certainity that the claims are realizable. b) Liability in respect of MGO of Natural gas is not provided for where the same is secured by MGO recoverable from customers. Payments/receipts during the year on account of MGO are adjusted on receipt basis.

Page | 59

FINANCIAL ACCOUNTING SYSTEM AT GAIL- VIJAIPUR

Finance Department at GAIL Vijaipur is handling all accounting matters of HVJ Pipe Line and LPG Plant at Vijaipur. The Finance Department is headed by DGM (F&A). For proper accounting, the Business Area code for HVJ Transactions is 3000 and 6000 for LPG. The following activities are handled by Finance Department in GAIL Vijaipur: Following activities related to Financial Accounting are being handled by the Finance Department- Vijaipur: Purchase Accounting of Natural Gas. Sales Invoicing and Debtors Accounting. Contracts Payments. HVJ Purchase Payments.
Page | 60

LPG Purchase Payments. Misc Payments. Pay Roll Accounting, Staff Payments. Statutory Payments like Direct & Indirect Taxes. Projects Payments. E. Banking and Bank Reconciliation. Depreciation Accounting. Central Accounting MIS, Budgeting, Costing & Cost Accounting Records.

Internal Audit, Statutory, Cost Audit, Tax Audit

Purchase Accounting of Natural Gas:GAIL purchase Natural Gas from ONGC, Panna Mukta Tapti Projects and Petronet LNG. The Natural Gas is transmitted from Hazira and Dahej thru Pipe Lines called HVJ and DVPL. The purchase accounting of Natural Gas drawn from ONGC is done by Hazira Unit. However, in respect of Natural Gas drawn by Vijaipur Plant from HVJ line for supply to customers under Vijaipur Control and for extraction of LPG and Hydrocarbons, the purchase adjustment entry is passed by the Vijaipur Plant in books of Accounts.

Sales Invoicing and Debtors Accounting :Sales Invoicing :GAIL Vijaipur cater the requirement of various gases to following customer PRODUCTS MAJOR CUSTOMER IN ORGANIZED
Page | 61

SECTOR Natural Gas National fertilizers ltd, Chambal fertilizer ltd, NTPC Anta, Samatal India, Samcore glass ltd, DCM (Shriram) Godrej Malanpur, Cadbury India, Surya Roshni ltd, Jamna auto ltd, Malanpur captive power plant To OMC i.e. IOCL, HPCL and BPCL, BORL (Bharat Oman Refinary Ltd) To NTPC C.L Gupta, SAIL, TATA Steel. etc Reliable industries, J.C Enterprises pvt. Ltd., AMKAP Marketing Pvt ltd. etc

RLNG(Regassified liquid Natural Gas)

LPG Naphtha Propane Pentane

Trading of Natural Gas 1) An agreement is made with customer for annual quantity & price agreed upon.
2) Gas Joint Ticket is raised by the Terminal incharge which is certified by the customer &

confirmed by NGMC. (Natural Gas Management Centre).

3) Invoice is raised on Fortnightly basis as per the terms of Agreement by Finance department

Vijaipur after confirmation of quantity by NGMC.

4) The payment from Customers is received centrally at Delhi Corporate office. 5) The accounting entries of Sales are made by Vijaipur Plant.

Sale of LPG: LPG is sold to OMCs i.e IOCL, HPCL and BPCL. LPG to IOCL is supplied thru pipe Line and to HPCL and BPCL, thru Tankers and Railway Wagons. The LPG supplied for domestic purpose is Non-Excisable and LPG for Industrial purposeis Excisable. The Prices are charged as per the Sales Agreement signed by GAIL with OMCs as per APM Rates. The Invoicing is made on weekly basis.
Page | 62

Sales of Hydrocarbons i.e Naptha, Propane and Pentane :- These products are supplied to NTPC, Malanpur Captive, Surya Roshni, etc. as per the agreement signed by GAIL with these customers. The supply is made after receipt of advance payment. 1) Despatch documents/Excise Invoice Despatch Deptt in the loading section inside the plant issues the requisite documents on daily basis. For the Excisable products, requisite Excise Documents are also issued at loading point. (2)Commercial Invoice Commercial Invoice is prepared for LPG on weekly basis and for other products on fortnightly basis as per the customer terms and conditions. This is prepared on the basis of despatch report and joint ticket from the loading control room. (3) Invoicing against Transmission Cost :Against the Gas Transmission thru HVJ Pipe Line to customers i.e NTPC Anta, Chambal Fertilizers, Samcore, Samtal and thru IOCL Pipe Line to IOCL and pipe line to NFL, the Invoicing to these customers is made for Transmission Cost as per the agreed rates and terms and conditions.

SAP Procedure for Sales Invoicing : Tcode : F-28 Enter the Document Date Document type : default DZ Enter the Company Code Enter the Posting Date Enter the Bank Account : bank Incoming g/I Enter the amount Enter the Cheque date and bank name Enter the business area
Page | 63

 Enter the customer code Click process open item Choose your relevant amount those should be in blue Go to document and simulate than save.

DEBTORS ACCOUNTING :Debtors Accounting of Sales related transactions is made by Vijaipur Finance. (1) Natural Gas Natural Gas invoicing is done by finance department & it include the following accounting entries1) At the time of raising invoice to Customers : Customer A/c To Sales A/c To Service Tax payable A/c To VAT payable A/c To Entry tax payable A/c Note- Here Sales include following: Basic Price + Royalty 10% + Purchase tax 10% + Transmission charges = Selling Price 2) At the time of receipt of payment from customer : Bank A/c Dr
Page | 64

Dr

To Customer A/c 3) At the time of regularization of payment in which income tax is deducted : Bank A/c TDS A/c To Customer A/c Note- In case if the customer deducts the income tax from the payment. (2) Liquified Petroleum Gas (LPG) :It includes Excise & Commercial invoicing. Excise Invoicing : The accounting entry is: Excise Duty Expense A/c To Excise duty payable A/c Commercial Invoicing : The accounting entry is: Customer A/c To Sales A/c To VAT payable A/c Liquid Hydro Carbons (LHC) : In case of Liquid Hydro Carbons (LHC) the finance department passes the following entries in the books of accounts1) At the time of recipt of advance from customerPage | 65

Dr ( Actual amount received ) Dr ( TDS amount )

Dr

Dr

Bank A/c To Customer Advance A/c

Dr

2) At the time of raising invoice of LHC Customer A/c To Sales A/c To Sales tax payable A/c 3) At the time of regularization of payments Customer Advance A/c To Customer A/c (3) Transportation invoicing : In this following entries are passed by finance department in the books of account 1) At the time of raising invoice Customer A/c To Transmission Charges A/c To Service tax payable A/c 2) At the time of receipt of payment Bank A/c To Customer A/c
Page | 66

Dr

Dr

Dr

Dr

3) At the time of regularization of payment in case of TDS deducted Bank A/c TDS receivable A/c To Customer A/c Dr Dr

SAP Procedure for Natural Gas Invoicing :In Standard Accounting Package (SAP) each transaction is given a particular code & for Natural Gas transactions there are 2 different codes available: (1) YRVI 001- This code is applicable for single invoicing. Firstly the duration is set i.e. start & end date. Then the Customer date is mentioned. Cal. Value of Natural Gas is inserted which is given in gas ticket. Billing date is given for which date bill has to prepared. Material number is selected from various types of gas. Plant is selected among Madhya Pradesh & Rajasthan. Volume is set according to 1000/SCM unit. Quantity is mentioned by using MMBTU unit.
Then from the list of all type of gases & transmission, selection of natural gas is made. Then

we execute the transaction, then a number is generated & for getting the print out we use VF02 code. Then click the issue option from the filing document option, printing command is given & we have our invoice in our hand. (2) YRVI 010 This code is applicable for mass invoicing.
Page | 67

The SAP procedure is same as for the code YEVI 001, only the basic difference is of the code.

SAP Procedure of LPG Invoicing : The Transaction code is VF04. Duration of billing date i.e. to & from has to be mentioned Shipping point has to be given. Click to options & select the billing date. Display the bill list. Collective Billing is done in case of LPG Invoicing. Print command VF02 for printing of invoice.

SAP Procedure of Transportation Invoicing : The transaction code is 3015. Firstly the duration is set i.e. start & end date. Then the Customer date is mentioned. Cal. Value of Natural Gas is inserted which is given in gas ticket.
Billing date is given for which date bill has to prepare.

Material number is selected from various types of gas. Plant is selected among Madhya Pradesh & Rajasthan.
Page | 68

 Volume is set according to 1000/SCM unit. Quantity is mentioned by using MMBTU unit.

CONTRACT PAYMENTS :Indigenous Contracts :GAIL Vijaipur is also responsible to process the payments against various contracts related to O&M for LPG Plant and for HVJ. The Contracts are processed by C&P Department Vijaipur as per Company guidelines laid under C&P procedures and DOP. For each contract, the concerned head of the department, nominate one EIC, to ensure the monitoring and execution of contracts. The EIC generate monthly Service Entry Sheet for the quantity of works executed, verify the bills as per the terms of contracts and sent to concerned officer in F&A Department- Vijaipur through BWS (Bill Watch System) followed with hard copy. The Concerned Officer receives the Bills from BWS as soon as the Bills are received in hard copy. F&A Department process the bills verifying all the documents and terms and conditions. Penalty as applicable as mentioned in the contract and other deductions as advised by EIC are also deducted by F&A Department. TDS at applicable rates is deducted as per the nature of contract and provision given under Income Tax Rules.

Foreign Contracts/Purchase Payments :GAIL Vijaipur Finance Department is also dealing with processing of payments against Foreign Contracts, awarded for maintenance etc Plant & Machinery and also for the spares purchased from these parties, in most of the case from Original Equipment Manufacturer. The Contracts/PO to these are awarded by C&P Department as per the company policy and procedure. There are also two types of forms submitted to Reserve Bank of India through applicants bank in case of foreign payments Form 1 Form regarding Import of machinery & spare parts. Form 2- Form regarding Repair & services. These forms are to be submitted to the RBI by the Applicant bank regarding the clarification of the transaction. The Foreign payments are regulated in following ways (the mode of payment is specifically mentioned in PO/WO)
Page | 69

Through L.C Through Wire Transfer.

A) Payment through LC :- For making any foreign payment through Letter of Credit (LC), GAIL submit application to its concerned bank in the format prescribed for it along with following important documents. 1) Application & Guarantee for LC Form no. 2 2) Copy of Purchase order/Letter of Acceptance as the case may be. The Letter of Credit (LC) are of two types :Revocable Letter of Credit - in this type of LC continous payment is made until the final date of payment comes. Irrevocable Letter of Credit in this type of LC one time payment is made on the final date of payment. B) Payment through Wire Transfer :- This mode of payment is followed when the Letter of Credit is not opened. As per this mode Bank is authorized to debit GAIL Account by equivalent amount in INR of Foreign Money of P.O. This authorization is given accompanied with following documents: Bill/Invoice Bill of Lading Copy of Work Order/P.O A1 / A2

SAP Procedure for Contract Payments :In SAP, for each payment liability is created by preparing JV. Following steps are followed from preparation of JV to release of Payments. Step 1 MIGO is to be done in SAP, it include the following entry :
Page | 70

GL A/c To GR/IR A/c

Dr

Step 2 MIRO is to be done after the first step, & following entry is passed :

GR/IR A/c To Vendor A/c

Dr

Step 3 In last step bank payment has to be made, entry is: Vendor A/c To Bank A/c Entry of Service tax Credit Accountable receivable Service tax credit A/c To GL A/c Dr Dr

SAP Procedure for Foreign Payments :Step 1 MIGO is to be done in SAP, it include the following entry : GL A/c To GR/IR A/c Step 2 MIRO is to be done after the first step, & following entry is passed :
Page | 71

Dr

GR/IR A/c To Vendor A/c

Dr

Step 3 In last step bank payment has to be made, entry is: Vendor A/c To Bank A/c Entry of Service tax Credit Accountable receivable Service tax credit A/c To GL A/c In Invoice verification, we compare Purchase order & Goods receipt and vendor invoices and checked on 3 parameters i.e. Price, Quantity, and Content. For Invoice Verification we require Purchase Order (Material) / Work Order (Services) and MIGO/Service Entry sheet. In SAP, we can do MIRO before Goods Receipt (MIGO) Enter the Currency Rate Go to T.Code MIRO Enter the Purchase Order number and press enter Enter the Section code Enter the Text field Take the printout of the accounting document through T.Code YRFS001 Enter the payment baseline date which is calculated the due date Enter the Business area Enter the House bank from which the payment is to be made Dr Dr

Page | 72

 Enter the payment method of the relevant House bank

PURCHASE PAYMENTS FOR HVJ PIPELINE:GAIL Vijaipur Finance also deal with the payments against various purchases made for maintenance and others for HVJ pipelines. For HVJ purchases payments the company Code is 3000 and business area code for Vijaipur Unit is 3010. There are separate Business Area codes for each unit from where the Hazira-Vijaipur-Jagdishpur pipeline goes. The Departments responsible to ensure the proper upkeep and maintenance of HVJ Pipe lines at Vijaipur, raises their Purchase Requisition to Vijaipur C&P Department. The Receipt and Issues of HVJ stores items are maintained by HVJ Stores at Vijaipur. The HVJ Stores prepare the GRV of the spares received, through SAP and then

Page | 73

run MIGO. This result to creat Debit Inventory and credit GR/IR. The GRV along with the bills are entered in BWS and send to finance depts. for processing of payments. Finance runs MIRO in the SAP, this result to creation of vendor liability. In this process the GR/IR has been debited and vendor liability is credited. This liability voucher is send to E-Banking section for release of payment to the vendor. E Banking Section prepares the ZP Voucher and debit the liability and credit to bank.

ACCOUNTING ENTRIES : Inventory A/c To GR/IR

Dr

GR/IR To Vendor

Dr

Vendor To Bank A/c

Dr

Special GL reagarding HVJ Purchase payments Security Deposit L

Page | 74

Earnest money deposit N Retention money K

PURCHASE PAYMENTS FOR LPG PLANTVIJAIPUR :The payments against various spares procured for the Operation and Maintenance of the LPG Plant Vijaipur are also released by local finance. These payments included procurement of various spares, consumables both indigenous and imported in nature. The procurement of the same is made by local C&P Department based on Purchase Requisition raised by the concerned department. The spares are received and issued by LPG Stores. The procedure to release the payment is same as in the case of HVJ Purchase payments.

PAYMENT AGAINST TRANSPORTATION :-

Page | 75

GAIL Vijaipur is also handling the Payment against Transportation as per the Contracts awarded for Transportation of various products like Naptha, Propane, Pentane etc. The TDS is deducted at the applicable rates under the Income Tax Provisions.

MISCELLANEOUS PAYMENTS :Vijapur is the head quarter of HVJ Pipe line and other satellites RR Stations at Anta, Malanpur, Gwalior, NFL and Narsingarh. Following Miscellaneous payments against the Misc. contracts are fall under this category: Payment against Pest Control
Contractual Doctors

Electricity Bills of MPEB

RR Station Telephone and mobile bills of establishment and officers posted at these stations.

CISF Security payment deployed at Plant and at these RR Stations

Payment against Guest House maintenance Courier AMC of Computers

Zerox Machine Other Equipments

Other Social activities payments Payments against Financial Aid to Schools run by GAIL

Crop Compensation Payments

Auditor Expenses etc.

The Bills are sent by the concerned officer/department through BWS.

Page | 76

PAY ROLL ACCOUNTING :Salary of the employees is prepared by Corporate HR Department based on the inputs provided by HR Department. The Off Cycle Payments i.e Medical, which are part of the Salary are being considered in SAP, while preparing salary. The Salary is credited directly to the employees account and entry is passed in the books of accounts according to Business Area given to the employees while giving them Number (i.e employee code).

STAFF PAYMENTS /OFF CYCLE PAYMENTS :Vijaipur Finance Department is responsible to release Off Cycle payments like Medical, Telephone/Mobiles, Lease Maintenance, CPF Loans Refundable and Non Refundable, HBA, Vehicle Advance, Furniture Advance, Computer advance and Special Advance. Finance Department is also responsible to release the payments against various recoveries made from the salary i.e LIC, Professional Tax to the concerned authority. The Finance Department is also responsible to pass needful entries in the books of accounts in case of outgoing and incoming employees in respect of their advances according to Business Area. Payments against Business Trips, Leave Travel Assistance and Transfer Expenses are also handled by Finance Department. The employees wish to take the advance against Business Trips and Transfer Expenses have to apply in the SAP Programme and to submit through their concerned HOD. The Claims against Business Trip and Transfer Expenses are also to be claimed in the SAP and to be submitted to finance department duly recommended by their HOD.

Transaction Codes for T.A./TransferAdvance :In SAP the following procedure is followed for preparation of T.A / Transfer Advance T Code PR05 is entered CPF number of the employee is to be entered
Page | 77

 See for trip number & double click Click R & save Click the ( Approve ( Settle LPG : 70 HVJ : 30 Click the ( ) Button ) Click this Button ) Button

After settling come out of the session. T Code PRF9 is entered Enter Payroll _ _ _ _ _ _ Other period _ _ _ _ _ _ [ Only the number of months m which you are working is in this step] Personnel number Trip number Execute After executing get out of PRF9 code. T Code PRRW is entered
Page | 78

taken

 Click Execute Double Click Document Create Get Back Once Post Post Immediately Get Back Once Double Click Document Created
Click FI / CO document

Entries passed

Page | 79

Statutory Payments like Direct, Indirect Taxes :Finance Department is handling following Direct and Indirect Tax related matters. In Direct Taxes, TDS on payment to Contractors and against foreign purchases is deducted as per applicable rates under section given under Income Tax Act. Presently TDS is deducted on following payments under the applicable sections.
HEADS SECTIONS TYPE OF PAYMENTS

Contractors

194 C

Maintenance & civil work

Professionals

194 J

Visiting doctors

Rent

194 I

Rent payments

Commission

194 H

Commission agent

Foreign payment

195 C

Import payment to the exporter in their foreign currency

Tax collected at source (TCS)

206

Sales of scrap

Page | 80

The TDS is deducted as per the Rates given in the SAP under various sections of TDS. While releasing the payment, the TDS is deducted from the payments and liability is created in relevant GL Code. The liability stands in the books at the end of month is deposited by 7th of following month thru on line payment. The Quarterly Return of TDS is filed by 15th of following month ending the quarter. TDS Certificates to the concerned parties against the TDS deducted are issued by 10th of following month. These TDS Certificates are generated from SAP. Following are the Steps in SAP for issuance of TDS Certificate against Contracts/Foreign Payments:Step 1 - The subsequent steps required from remitting the TDS to certificate generation are as follows : 1) T code J1INCHLN 2) Company code, 3) Section code 4) Vendor recipient type (i.e. corporate, on corporate of government) etc. 5) Document Date : Current Date 6) Bank A/c : put 2013299 7) Execute 8) The system will show the screen same as it shows while processing open items. 9) Assign the relevant amount and stimulate the transaction and save, the system will give an internal challan number and the clearing document will get generated Step 2 The next step is to enter the bank challan in the system 1) Tcode J1INBANK 2) Company Code 3) Fiscal year
Page | 81

4) internal challan clearing no. put the one generated in J1INCHLN 5) bank challan number 6) bank challan date 7) bank key : key bank from which payment made 8) Finally after updation screen will be like this Step 3 Now the final step is to print the certificate
1) T Code J1INCERT

2) Company code 3) fiscal year 4) Business place/section code 5) section 6) posting dates 7) bank challan dates 8) rest fill the details according to he relevance

MIS Report on TDS in SAP :Page | 82

Step 1 Use T-code J1INMIS is or go through SAP Menu> Accounting> Financial Accounting> Account Payable> Withholding Tax> India> Extended Withholding Tax> Information System> Withholding Tax. Step 2 The above screen will come, enter the following: 1) Company code 2) Fiscal Year 3) Posting Date ( From To) 4) for refined search use Document number, Vendor, customer, Section code and official withholding tax code is available 5) Select Consolidated report to view complete report of TDS or If User wants to see Bank Challan Status select bank challan status option or If User wants to see Certificate status select Certificate status. 6) Execute after filling in the details through clock icon or pressing F8 key. Step 3 1) After execution the above report will come which shows the status of the TDS. 2) To save this report on to the hard drive use the circled icon above. This will pop up a window with the options to save the report in different file format as shown below, choose the desired format and save the file. 3) Thus, the final report is generated with items of the vendors along with the TDS status and the same can be saved. The report can be drilled down on the line items to look at the document.

INDIRECT TAXES :EXCISE DUTY PAYMENTS :Page | 83

Excise duty is levied on non domestic LPG, Naptha, Propane, Pentane. Excise duty is paid on the clearance basis i.e. on sales basis at the following rates of excise duty for the products given under:-

PRODUCTS

BASIC EXCISE RATES

LPG- Domestic

0%

LPG-Commercial

8%

Naphtha

14%

Propane

8%

Pentane 14%

Page | 84

Following Statutory Records for Excise are maintained at GAIL Vijaipur :RG 1 This is maintained for day to day production and clearance of the Products. Following information are recorded in RG-1.

Date Description of Goods Product Tariff Heading Number Opening Qty Quantity Manufactured Total Quantity Removal of Qty from the factory Amount of duty payable Qty Removed without payment of duty Qty consumed for other purpose Total amount of excise duty payable Basic duty Special duty
Page | 85

Cess payable Secondary & Higher education Cess Internal Consumption Closing stock qty. Physical stock qty. Gain / Loss Percentage of gain / loss (qty)

ER 6 (Excise Return) In ER 6, Consumption & Production of Raw materials are recorded on monthly basis. Consumption of LPG for Domestic use and Production of Naptha, Propane, Pentane, LPG from natural gas regarding this all the transactions are recorded. PLA (Personal Ledger Account) In Personal Ledger Account, the record of Amount Deposited in Government account for payment of Excise duty vis a vis amount utilized by debiting in PLA, for discharge of Excise duty liability is recorded on monthly basis. TR 6 (Treasury Receipt) This is a document in the form of challan for deposition of amount in PLA in Government Account for payment of Excise Duty. ER 1 (Excise Return) ER-1 is monthly Return to be submitted to the Excise Department, giving the summarized status of all Excise documents i.e RG-1, PLA, RG-23A Part II (Cenvat Account).

Page | 86

SERVICE TAX PAYMENT :- Service tax is a tax levied on services providers in India,
except the State of Jammu and Kashmir. The tax is levied on service providers. The service receiver also pays the service tax. Service tax paid on accrued basis, by 5th of next month the service tax is to be deposited by the service providers to the deptt and then it is to be reimbursed by the service receiver. The return is filed on half yearly basis. (1) April September (2) October March Main Services of GAIL Vijaipur Transport of goods through pipeline. Transport of goods through road (service receiver) Business Auxiliary services. Foreign Consultancy services (service receiver)
Renting of immovable property

GAIL reimburses the service tax to the parties/service providers and avail credit of this in Excise Records. This Credit is utilized for payment of service tax liability on finished product. GAIL raises Bills for Transmission Charges on various customers against supply of Natural Gas through HVJ Pipeline. The Service Tax is charged on this Transmission Cost as per the Central Excise Rules . The requisite records of Service Tax are maintained as per the provision of Service Tax Rules under Central Excise Rules. VALUE ADDED TAX Value Added Tax is a multi point tax with set off for tax paid on purchases. The tax is collected in installments at each transaction in the production distribution process. There is no cascading because of the system of deduction or credit mechanism for taxes paid. The tax is levied on consumption. The final and total burden of the tax is fully and exclusively borne by the domestic consumer. No VAT is charged on goods exported. This is the tax system of
Page | 87

the future. The Products being supplied by GAIL Vijaipur with in MP State are levied with VAT. In GAIL Vijaipur unit M.P.VAT rate is 13%. CENTRAL SALES TAX (CST) Central Sales Tax is levied under this act by the Central Government but, it is collected by that state government from where the goods are sold. The tax thus collected is given to the same state government which collected the tax. The prevailing CST rates are 2% against form C and 5% without Form C. Interstate procurement for HVJ are made on full rate of CST without issuance of concessional declaration forms. In LPG, inter-state purchases are made at concessional rate of tax with declaration forms. WCT :- Works Contract Tax is being deducted at source on Civil and other Works Contracts, as per the applicable rates in Madhya Pradesh. The same is deposited with the Authority and requisite WCT Certificates are issued to the concerned parties. Sales Tax/VAT/Entry Tax Returns :- Filing of Returns and finalization of Assessment:- The activity involved timely filing of Sales Tax/VAT/Entry Tax Return to the Sales Tax Authority and get finalized the Assessment.

PROJECT PAYMENTS & ACCOUNTING :GAIL- Finance Vijaipur is also handling the payments and accounting of various new pipeline projects and expansion projects of HVJ Pipe Line, Dahej -Vijaipur pipe line, Vijaipur Dadri pipe line etc and new Compressor Stations . The Project Consultant is appointed by Project Department New
Page | 88

Delhi through inviting Global Tenders. The Project Consultant designs the whole project and makes the estimate of the project. Based on this estimate the project is put up for the Board of Directors Approvals under the guidelines of Ministry of Petroleum. Vijaipur Finance & Accounts Department plays a key role in various teams made for Crop Compensation, Land Acquisition for laying proposed pipe line in MP State. For Crop Compensation and Land Acquisition, GAIL has appointed various state level officials on deputation called Competent Authority. Following Payments are handled by GAIL Vijaipur Finance.
Payment against enabling work for Compressor Payment against Camp office facility Payment against Vehicle hired for Projects/Sites. Payment regarding Compensation for Land Acquisition , Crop Compensation Payment for Support Services on Contract basis.

The major payments related to all the projects are released by the Project Finance Deparment at Corporate Office in Delhi.

SAP Procedure for Project Accounting :Following is the summary of the SAP Procedure of the Project Accounting
Transaction Code MIR6 is given

Bios number is entered Basic data is mentioned Payment method is selected

Page | 89

 Assignment- whether work order or purchase order Business area code is given Withholding tax i.e. TDS is deducted Service Entry sheet is prepared Print out command is given for invoice generation BWS Misc. Bills :Steps to be followed for Transaction FBV0 1) Click on Document list TAB 2) Enter the Company code, Fiscal year and the 25 digit BWS number 3) Execute the transaction.

Double click on the line item 1) Enter the Section Code 2) Enter Narration in the text field 3) Enter the Business area 4) Enter the House Bank 5) Enter the baseline date 6) Check the Withholding Tax data if the vendor is applicable
Page | 90

7) Enter the Expense GL Account and the relevant cost center 8) Simulate the Document and if the document is correct 9) Post the document Accounting Entries : Expenses A/c To Vendor Vendor A/c To Bank Outgoing A/c The above entries will update the Vendor balances in FBLN Dr Dr

E-BANKING AND BANK RECONILATION :-

NET BANKING

INTRA BANK

INTER BANKING
Page | 91

GAIL deals with three banks Reserve bank of India

SBI

ICCI HDFC All banks are there

E-BANKING:GAIL Vijaipur has Bank Accounts with State Bank of India- GAIL Township, ICICI and HDFC Bank. As per the Company policy, all payments to the employees, vendors, contractors and statutory bodies are released only through E-banking Company has the policy not to release any payment through manual cheques or Demand Drafts, except statutory payments to Govt Authority. The vendors dealing with the Company regularly are compulsorily to have their account in any of the above three Banks. In case, any party do not have their account in any of these banks, can be facilitated by Cheques to be issued by ICICI or HDFC, based on our advice through E-banking to these Banks. In case of new party/contractors/employees, the moping of bank account is made with these Banks to facilitate the E-banking Payments. In E-banking payment system, as mentioned above, for all type of payments, a liability voucher is prepared by doing MIRO. Based on this liability voucher a ZP voucher is prepared and uploaded in the system. Two authorized officers , authorize to release the payment through E-banking.
Page | 92

SAP Procedure for E-Banking : Transaction code : YRFR030 E-Banking text file generated in SAP. One executive upload this text file on respective bank site portal.
Later on two executives authorize the transaction & send text file for release payment

through e-banking.

BANK RECONCILIATION:For Bank Reconciliation, Bank statements are download from the bank site for the month. Transaction code: YRAR003 , bank settlement if for upload in SAP for automatic matching of transaction for BRS purpose. Unmatched transactions are clear with Transaction code: FEBA manually. After matching transaction BRS statement generated with Transaction code: YRFU 003 Efforts are made for clear outstanding payment on BRS statement.

Page | 93

DEPRECIATION ACCOUNTING :The Assets are procured after taking I.O. Number (i.e Capex No) for the assets required for Plant and Establishment thru C&P Deptt. The Capitalisation of these Assets are made based on GRV issued by the Stores. The Depreciation is calculated on single shift basis under SLM.

SAP Procedure for Depreciation Accounting :

T Code is given Company code is entered Business Area is defined Balance Sheet account is mentioned Asset class is defined Personnel number is given Assert code is mentioned

Page | 94

Purchasing date is mentioned Acquisition Value is inserted Accumulated Depreciation is automatically calculated through SAP Present Book Value is received

CENTRAL ACCOUNTING :Central Accounting Cell in GAIL Vijaipur Finance is responsible to ensure correct and accurate accounting in all areas and correct provisioning in the books of accounts. This cell is also to ensure that Company Accounting Policy and Accounting Standards laid as per the Institute of Chartered Accountants are being strictly followed. The Central accounting cell is also responsible to prepare the Books of Accounts so as to ensure the smooth consolidation with Corporate Office and to get audited by the Internal, Statutory and CAG Auditors. This Cell ensure timely completion of Quarterly, Half yearly, Nine month and Annual Closing of Books of Accounts. GAIL Vijaipur Finance prepares complete accounts for LPG Recovery Plant and compute the profitability at the unit level. The same is audited by the Branch Auditors. The Profit & Loss, Balance Sheet and Schedule of Accounts and Note on Accounts are prepared as per the Company Law. The Books of Accounts of HVJ activities are finalized at Corporate Office, after consolidation all the entries of all Business Areas are audited by the Statutory Auditors at HO level. The profitability of HVJ is derived as a whole for GAIL. Balance Sheet of LPG Plant Vijaipur is prepared at Unit level and audited by the Branch Auditors. Balance Sheet as per the Company Law format comprises of following information and comparison with last year .
Page | 95

Sources of Funds : 1. Shareholders Funds Capital (IUT/BA) Reserve & Surplus 2. Loans Funds Secured Loans Unsecured Loans 3. Deferred tax liability (Net ) Application of Funds : 1. Fixed Assets Gross Block Less-Depreciation Net Block Capital work in Progress 2. Investments Current assets, Loans and Advances a) Inventories
Page | 96

(As per Schedule I) (As per Schedule II) (As per Schedule III)

(As per Schdule IV)

(As per Schedule V) (As per Schedule VI) (As per Schedule VII)

b) Sundry Debtors c) Cash & Bank Balances d) Other Current Asset Current liabilities provision Net Current Assets Miscellaneous Expenditure Deferred revenue expenditure Profit & Loss (debit balance) NOTES ON ACCOUNTS Following Schedules are the prepared as part of Notes on Accounts for LPG Accounts comparing with last financial year on Annual Basis:Schedule 1A IUT/BA Adjustment balances Schedule 2 Schedule 3 - Reserves & Surplus - Loan funds (Schedule VIII)

Schedule 4A Fixed Assets: Showing Gross Block, Depreciation and Net Block with Break up of Tangible and Intangible Assets. Tangible Assets: - are Land, Building, Bunk House, Plant & Machinery , Railway Lines & Siding, Electrical Equipments, Furniture, Fixtures and other Equipments and Transport Equipment. Intangible Assets:- are Software/Licences. The Depreciation is charged on single shift rate under SLM. Schedule 5 - Capital work-in-Progress (including Capital Goods in Stock/Transit) Schedule 6 - Investments

Page | 97

Schedule 7 - Current Assets, Loans & Advances : Showing the Inventory, Construction Surplus (net of Provision for losses/obsolescence), Debtors showing Secured and Unsecured (net of provision for doubtful debts), Cash Bank Balance, Loans and Advances, Claim Receivables, Deposits with Customs, Port Trust and Others. Schedule 8 - Current Liabilities & Provisions Sundry Creditors, Provisions for Taxation etc. Schedule 9 - Other Income: i.e Income from Dividend, interest, Export Incentives, Misc Income etc. Schedule10- Manufacturing, Transmission, Administration, Selling & Distribution & Other Expenses: This includes details of Raw Material Consumed, Personnel Expenses, Establishment Expenses, R&M Expenses, Other Expenses. Schedule 11 Incidental expenditure during Construction Schedule 12 Interest & finance charges Schedule 13 Prior period adjustments. Schedule 14-Notes to Accounts:- It comprises of details on Capital Commitment, Contingent liabilities not provided for, Free hold/lease hold land capitalized on provisional basis, Freehold/leasehold land/flats, title deed pending execution, impact of exchange rates variation, notes on LPG subsidy burden, segment disclosures, related party disclosures, details of joint ventures as per AS-27, total outstanding dues of micro & small enterprises, total outstanding dues other than micro & small enterprises, disclosure of amount lying in CWIP, Quantitative information on Products i.e LPG, Naptha, Pentane, Propane, showing details of Opening Stock, Purchases, Sales, Internal Consumption and Closing Stocks. CIF Value of Imports, Expenditures in Foreign Currency, Earning in Foreign Currency, Licensed, installed and actual capacity achieved in production product wise, Details of Consumption in RM, Stores & Spares, Stock Adjustment and other declarations

MANAGEMENT INFORMATION SYSTEM (MIS) :Page | 98

GAIL Vijaipur Finance has to provide various reports and informations to Head Office as part of MIS. These reports include Monthly Profitability Reports for LPG and HVJ showing the Sales Value and Expenditures segment vise, Cost Sheets etc. Profitability Report Profitability Report is prepared on monthly basis, it includes the followings:1) Quantity Sold 2) Quantity Produced 3) Gas Consumption by Plants 4) Prices
5) Income 6) Expenditure 7) Gross Margin 8) Profit Before Tax

Common

Expenses

are

apportioned 60% 40%

in

LPG

and

HVJ

in

the

following

ratio:-

HBJ 196 employees LPG - 131 employees

Energy Expenses The energy expenses are divided in following categories Captive Power Generation: that includes GTG-A GTG-B
Page | 99

 DEG GTG Consumption: it includes LPG HVJ DVPL MPSEB Consumption: it includes Plant LPG Township DVPL Common Expenses: Purchase of Medicine Staff Welfare Sport Expenses Dispensary Expenses Welfare School Electricity Township Property Tax R & M General Building Repairs & Maintenance Township
Page | 100

 Communication Expenses- P & T Telephone Expenses Telephone Residence Public Relation Expenses- Other Vehicle Hiring Charges Bus Hiring Charges Social Other All these expenses are divided among1) HVJ Expenses 2) LPG Expenses GTG Power Transfer Expenses:-In GAIL Vijaipur Plant GTG are installed. As and when power requires for performing operations, GTG is used & its calculation statement is prepared on monthly basis segments. GTG in LPG GTG in HVJ GTG in DVPL DEG in HVJ

Cost Sheets and Maintenance of Costing Records:After the preparation of expenditure statements, the cost sheet is prepared .The Cost sheet is prepared for the following products. audited by the Cost Accountant Firm.
Page | 101

GAIL is preparing the records as per the requirement of

Institute of Cost & Works Accountants of India, specified for LPG Industries. The same are being

 Manufacturing LPG Naphtha Pentane Propane Blended LPG. The Cost Sheet comprises of followings: Variable Cost Fixed Cost Cost of Production Total Cost of Sales Closing Stock Shrinkage Value of Closing Stock (Including Excise Duty) Value of Closing Stock (Excluding Excise Duty) Difference in Closing Stock

BUDGETING: -

As per company policy, all units are to submit to Corporate Finance,

their Revised Estimates for the financial year and Original Estimates for the next financial year in the month of July & August. The Vijaipur Finance Department also prepares the RE and BE in respect of Revenue and Capital Expenditures called non planned expenditure. In the exercise of preparation of estimates, the head wise proposed expenditures are taken from each department for HVJ and LPG segment with their justification in the breakup of month-wise. The same is
Page | 102

scrutinized, discussed on its justification and complied. The complied Budgets are submitted to Corporate Office for approval by Board of Directors. The Approved Budget Estimates for Revenue and Capital (Non Planned) expenditures can be spend with in the financial year and can not be carry forwarded to next financial year. The Department concerned has made the provision in budget can only utilize these approved budgets on the heads for the company business. In case, there is no provision in the budget estimates against a specific head, the expropriation of budget can be made with the approval of Competent Authority. Similarly, in case of Non Planned/Capital Expenditures Budget, the amount can be spending to procure the assets/equipment to be capitalized by raising I.O Number (Capex Sanctioned Number). Following Budget Estimates are prepared: Revenue Expenditure Budget for LPG and HVJ Non-Plan Expenditure Budget (Capital Budget) for LPG and HVJ Procurement Budget ( O&M ) Depreciation Budget Employee Advances Budget Repairs & Maintenance Budget Stores & Spares Expenditure Budget

REVENUE EXPENDITURE BUDGET It includes followings: Raw material consumption Employees remuneration Power, Fuel & Water charges Consumption of stores & spares Rent Rates & Taxes
Page | 103

License fees Bandwidth Consumption Repair & Maintenance Insurance Communication Expenses Printing & Stationery Travelling Expense Books & Periodicals Advertisement & Publicity Entertainment Expense Recruitment & Training Expense Vehicle hire & Running Expense Exploration & Production Expense Consultancy charges Donations Loss on sale of assets R & D Expenses Bad debts, Claims, Advance , Written off Obsolescence of stores Expense on enabling facilities
Page | 104

Selling & Distribution Expense Security Expense Other Expenses

NON-PLAN EXPENDITURE BUDGET

The Non-plan expenditure budget/Capital Budget consist of amount to be spent on equipments/assets capital in nature The various departments of Vijaipur unit prepare this type of budget Pipeline Human Resource Fire & Safety Civil Department Contracts & Procurement GAILTEL Information Technology Mechanical Electrical Instrumentation HBJ PROCUREMENT BUDGET ( O&M )It includes expenses like: Spares, consumable & chemicals
Page | 105

Fuel & Oil Others

DEPRECIATION BUDGET Depreciation budget includes the following heads Depreciation for previous year Less: a) Depreciation not provided for assets reaching 95 % b) Depreciation for assets (if known) Net total Depreciation on additions Total expenditure

EMPLOYEE ADVANCES BUDGET There are several type of advances which the GAIL Company gives it to their employees & each unit of GAIL prepares budget for their advances, same is the case with Vijaipur unit. Car Advance Scooter Advance HBA Advance Furniture Advance PC Advance
Page | 106

 Other Advance REPAIRS & MAINTENANCE BUDGET There are several expenses which come under the heads of Repairs & Maintenance. Vijaipur unit is having an LPG Plant therefore it has much more expenses in comparison with the other units of GAIL. Following are the departments which give their financial requirement regarding the repairs & maintenance Pipeline department Human Resource department Civil department Mechanical department Contracts & Procurement department GAILTEL Information Technology department HBJ-Operations & Terminal Electrical department Electrical Township Instrumentation department Fire & Safety department

HVJ BUDGET HVJ budget is prepared department wise in GAIL Vijaipur unit. The departments preparing the HVJ budget are as follows Human Resource Department
Page | 107

 Pipeline & Terminal Contracts & Procurement Electrical HBJ Electrical Township Civil department Finance department GAILTEL Fire & Safety HVJ Operations

STORES & SPARES EXPENDITURE BUDGET The stores & spares budget is prepared for the expenses incurred in the stores of various departments & spares used in the operational activities. The areas for which stores & spares expenditure budget is prepared are Electrical Electrical Township Instrumentation Mechanical Telecom Pipeline
Page | 108

 Contracts & Procurement Information Technology Fire & Safety

AUDIT
There are five types of audit in the Organization, viz. a) Internal Audit b) Statutory Audit c) Government Audit d) Technical Audit e) Tax Audit

Internal Audit Internal Audit is a statutory requirement for all the Companies having paid up capital of over Rs. 25.00 lakhs. Under the Manufacturing and other Companies (Auditor's Report) order, 1988 (MAOCARO), the Companies are required to have an organized Internal Audit Wing Commensurate with the size and nature of their business. The function of Internal Audit may be expressed as an independent appraisal activity within an organization for the review of operations as a service to Management. It is a managerial control which functions by re assuring and evaluating effectiveness of other internal controls.
Page | 109

The Internal Audit is functioning under the Director (Finance) through Head of Internal Audit. The functions, duties, responsibilities and powers of Internal Audit department have been detailed separately in the Internal Audit Manual. Internal Audit should also examine independently the final accounts and attached Schedules to the Balance Sheet and Profit & Loss Account. Any point or observation make by the Internal Audit, which the Head of Finance Department considers acceptable for modification of the accounts, may be accepted and changes made in the Accounts. However, comments by Internal Audit, if any, should be offered will before the Finalization of the accounts. Statutory Audit Under Section 619(2) of Companies Act, 1956, the statutory Auditors (Chartered Accountants) are appointed by the Central Govt. on the advice of the Comptroller and Auditor General of India for conducting the audit in accordance with the provisions of the said Act. The Comptroller and Auditor General also has the power to direct the manner in which the Company's accounts shall be audited by the auditor and to give such auditor instructions in regard to any matter relating to the performance of his functions as such. The Officer Incharge of the Central Accounts Section shall co ordinate the audit work and supply the relevant information / records / documents as required by the auditors. With a view to finalize the final accounts well within the prescribed time, it is necessary that all such information, documents are provided expeditiously by the concerned Section / Departments to the Auditors. Government Audit Powers of the Comptroller and Auditor General As mentioned earlier, the accounts of the Company are audited by the Statutory Auditors appointed by the Central Government on the advice of the Comptroller & Auditor General of India. The Comptroller & Auditor General of India conducts only a supplementary or test audit of these accounts and gives his comments upon or supplements the reports submitted by the Statutory Auditors. In terms of Section 619 (3) of the Companies Act, the Comptroller & Auditor General is empowered: The Government audit conducts audit of the following three types : a) Phase Audit under Section 619 (3) (b) of the Companies Act; b) Periodical Comprehensive Reviews; c) Balance sheet audit under Section 619 (4) of the Companies Act. Technical Audit Technical Audit normally functions directly under the Head of Technical Services or the GM / Director (Projects). In the discharge of its functions and duties, any information required by Technical Audit, if available with the Finance Department should be furnished. Any expert advice
Page | 110

sought by the Technical Audit from time to time on financial matters should also be provided by the Finance Department Tax Audit U / S 44 of the Income Tax Finance Act, 1984 inserted a new Section 44 AB in the Income Tax Act, 1961 w.e.f. 1.4.1985 which requires that all persons carrying on business of profession and having total sales, turnover or gross receipts exceeding the limits specified therein in any previous year should get their accounts audited by a chartered accountant before the date specified therein and obtain the report of such audit in the prescribed form duly signed and verified by such account and setting forth such particulars as may be prescribed. "Specified date" in relation to the accounts of the previous year relevant to an assessment year (as per Income Tax Act / Rules amended up to 1995-96) means. a) Where the assessed is a Company, the 30th day of November of the assessment year, and b) in any other case, the 31st day of October of the assessment year.

Page | 111

A Core Organization Values:

GAIL takes pride in its core organizational values: Ethics We are transparent, fair and consistent in dealing with all people. We insist on honest, integrity and trustworthiness in all our activities. People We believe that our success is driven by the commitment and excellence of our people. We attract and retain result oriented people who are proud of their work and are satisfied with nothing less than the very best in everything that they do. We encourage individual initiative by creating opportunities for our people to learn and grow. We respect the individual rights and dignity of all people. Safety, Health and Environment We promote highest levels of safety in our operation, health of our employees and a clean environment. We strive for continuous development of the communities in which we operate. Customer We strive relentlessly to exceed the expectations of our customer, both internal and external. Our customers prefer us Shareholders We meet the objectives of our share holders by providing them superior returns and value through their investments in us. Technology We believe technology is a key to the future success of our organization. We advocate best in-class technologies.
Page | 112

Rewards and Recognition:

GAIL has been selected as the top Indian company in the Gas Processing, Transmission and Marketing sector for the Dun & Bradstreet - American Express Corporate Awards 2006. GAILs Dahej - Vijaipur Pipeline Project has won the Silver Medal in Mega Projects Category at the International Project Management Association Awards, 2006 The company has received the Platts Global Industry Leadership Award 2005 in recognition of its commitment, continuous good work and collective efforts over a period of two decades for the hydrocarbon industry at a global level.. Other awards include Certification of Merit from Honble President of India in recognition of systematic and serious attempts for efficient utilization and conservation of energy during the last three years, the Golden Icon Award for exemplary initiatives in e-Governance. The Company was rated as one of the Best Employers in India by Hewitt Associates in 2004 and was adjudged as an Organization with Innovative HR Practices by HT Power Jobs. GAIL has recently won the Quality Excellence Award by the Quality Council of India. The Award was presented by His Excellency Hon'ble President of India, Dr. A.P.J Abdul Kalam

Page | 113

AWARDS
Sr. No.
1 2 3 4 5 6

Date
31/05/2010 13:02:11 31/01/2011 16:53:38 31/01/2011 16:18:57 27/12/2010 13:06:08 26/05/2010 16:44:49 23/10/2010 14:38:33 21/08/2010 12:20:17 19/04/2011 16:29:22 15/07/2010 12:09:43 11/05/2010 17:32:43 06/04/2011 12:20:50 06/04/2011 12:14:37 03/06/2010 10:23:15 03/01/2011 15:26:38 02/07/2010 17:18:49 01/01/2011 13:23:59

Location
MUMBAI MUMBAI MUMBAI NOIDA JHABUA NOIDA

Subject
GAIL MAHARASHTRA RECEIVED GREENTECH SAFETY GOLD AWARD 2010 GAIL MUMBAI RECEIVED SAFETY INNOVATION AWARD-2010 GAIL MUMBAI RECEIVED SAFETY INNOVATION AWARD-2010 FROM INSTITUTION OF ENGINEERS SAFETY INNOVATION AWARD-2010 FOR GAIL ABUROAD & MANSARAMPURA GREENTECH SAFETY AWARD 2010 FOR JHABUA SAFETY INNOVATION AWARD-2010 FOR GAIL AGRA (UP REGION) GPU-Gandhar bagged CMDs Rolling Trophy for Best Performing Unit for the year 09-10 GAIL MAHARASHTRA REGION PIPELINE SYSTEM RECEIVED CERTIFICATION FOR ISO-14001 & OHSAS-18001 GREENTECH AWARD 2010 FOR AGARTALA INTERNATIONAL SAFETY AWARD FOR GPU GANDHAR GAIL MUMBAI DECLARED WINNER OF GREENTECH SAFETY GOLD AWARD-2011 GAIL MUMBAI DECLARED WINNER OF GREENTECH GOLD AWARD-2011 GREENTECH SAFETY AWARD 2010 GOLD AWARD FOR GAIL LAKWA GAIL, JHABUA WON THE GOLD AWARD FROM GREENTECH TOWARDS ENVIRONMENT EXCELLENCE JLPL selected for "Special Commendation" Certificate for GOLDEN PEACOCK AWARD GREENTECH Environment Excellence Award 2010 GOLD Award for GAIL Lakwa

GANDHAR

8 9 10

MUMBAI AGARTALA NOIDA

11 12 13 14 15 16

MUMBAI MUMBAI LAKWA JHABUA JAIPUR LAKWA

BIBLIOGRAPHY:
Page | 114

www.gailonline.com. www.google.com

published annual report of GAIL India Ltd 2010-2011. Project Interconnect- SAP and User Manual- GAIL India Ltd Financial management by I.M. Pandey

Page | 115