Annual report
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GUJARAT GAS LIMITED (A GSPC Group Company- Government of Gujarat Undertaking) Corporate Office: Office No. 4 & 5, Ground Floor, IT Tower -2, Infocity Gandhinagar – 382009 Gujarat Registered Office: Gujarat Gas CNG Station, Sector-5/C, Gandhinagar - 382 006, Gujarat, India. Tel.: +91-79-23264777, 23264999 Website: www.gujaratgas.com, www.gspcgroup.com CIN: L40200GJ2012SGC069118 GGL/SEC/1482/2025 30 th August, 2025 To, BSE Limited, Phiroze Jijibhoy Tower, Dalal Street, Mumbai Company Code: 539336 National Stock Exchange of India Ltd Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra (East), Mumbai Company Code: GUJGASLTD Sub: Regulation 34 (1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Notice of the 13th Annual General Meeting (AGM) along with Annual Report of Gujarat Gas Limited for the Financial Year 2024 – 25 Respected Sir/ Madam, This is further to our Letter dated 18th August, 2025, wherein, the Company had informed that the 13th Annual General Meeting is scheduled to be held on Thursday, 25th September, 2025 at 3:00 P.M. through Video Conferencing (“VC”)/Other Audio-Visual Means (“OAVM”), in accordance with the relevant circulars issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India. In terms of the requirement of Regulation 34(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are submitting herewith the Annual Report of the Company including the Notice of AGM for the Financial Year 2024 – 25. The Company has sent the same today i.e. on 30th August, 2025, through electronic mode to the Members who have registered their E-Mail IDs with the Company’s R&TA/Depository Participant. Further, pursuant to Regulation 36(1)(b) of the Listing Regulations the Company has dispatched letters to those Shareholders whose E-mail addresses are not registered with Company /Depository Participants, providing the web- link, including the exact path, where complete details of the Annual Report is available. A copy of the letter sent to the shareholders is also enclosed herewith. The Notice of AGM along with the Annual Report for the Financial Year 2024 - 25 is also available on the website of the Company viz. www.gujaratgas.com. Further, the Notice of AGM is also available on the website of Central Depository Services (India) Limited at www.evotingindia.com. You are requested to kindly take the above information on record. Thanking you, For, Gujarat Gas Limited Sandeep Dave Company Secretary
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GUJARAT GAS LIMITED CIN-L40200GJ2012SGC069118 BOARD OF DIRECTORS Shri Pankaj Joshi, IAS, Chairman (w.e.f. 07/02/2025) Shri S J Haider, IAS (w.e.f. 13/08/2024) Dr. T Natarajan, IAS (w.e.f. 11/09/2024) Shri Balwant Singh, IAS (Retd.) Prof. Yogesh Singh Shri Bhadresh Mehta Dr. Rekha Jain Shri Milind Torawane, IAS, Managing Director Shri Raj Kumar, IAS (Retd.) (upto 31/01/2025) CHIEF FINANCIAL OFFICER Mr. Rajesh Sivadasan COMPANY SECRETARY Mr. Sandeep Dave INTERNAL AUDITORS M/s. Ernst & Young LLP SECRETARIAL AUDITORS M/s. K K Patel & Associates REGISTRAR & SHARE TRANSFER AGENT M/S KFin Technologies Limited, Hyderabad BANKERS & FINANCIAL INSTITUTION Axis Bank Bank of Baroda Federal Bank HDFC Bank ICICI Bank IDBI Bank IndusInd Bank Kotak Mahindra Bank Punjab National Bank RBL Bank State Bank of India Yes Bank STATUTORY AUDITORS Ashok Chhajed & Associates, Chartered Accountants, 22, City Centre, C. G. Road, Nr. Swastik Char Rasta, Ahmedabad - 380009, Gujarat, India COST AUDITORS Kailash Sankhlecha & Associates, Cost Accountants, 408, National Plaza, Alkapuri, Vadodara - 390 007, Gujarat, India REGISTERED OFFICE Gujarat Gas CNG Station, Sector 5/C, Gandhinagar – 382 006, Gujarat, India. CORPORATE OFFICE Office No. 4 & 5, Ground Floor IT Tower - 2, Infocity, Gandhinagar- 382009, Gujarat, India CONTENTS PAGE (1) Notice 01 (2) Board’s Report 16 (3) Corporate Governance Compliance Certificate 59 (4) Certificate of Compliance with Code of Conduct 60 (5) Certificate of Non-Disqualification of Directors 61 (6) Business Responsibility & Sustainability Report (BRSR) 64 STANDALONE (7) Report of the Comptroller and Auditor General of India 118 (8) Independent Auditors’ Report 119 (9) Balance Sheet 132 (10) Statement of Profit and Loss 133 (11) Statement of Cash Flows 134 CONTENTS PAGE (12) Statement of Changes in Equity 136 (13) Notes to Financial Statements 137 CONSOLIDATED (14) Report of the Comptroller and Auditor General of India 200 (15) Independent Auditors’ Report 201 (16) Balance Sheet 208 (17) Statement of Profit and Loss 209 (18) Statement of Cash Flows 210 (19) Statement of Changes in Equity 212 (20) Notes to Financial Statements 213 (21) Statement Pursuant to Section 129 (3) of the 281 Companies Act, 2013 (AOC-1) th 13 ANNUAL REPORT 2024 - 25
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GUJARAT GAS LIMITED 1 2024-2025 th 13 ANNUAL REPORT th NOTICE is hereby given that the 13 (Thirteenth) Annual General Meeting of the Members of Gujarat Gas Limited will be held on th Thursday, 25 September, 2025 at 3.00 P.M., through Video Conference (“VC’) / Other Audio-Visual Means (“OAVM”), to transact the following business: ORDINARY BUSINESS 1. To receive, consider and adopt the Audited Financial Statements (Standalone & Consolidated) of the Company for the Financial st Year ended 31 March, 2025 and the Reports of the Board of Directors together with the Reports of Statutory Auditors and Comments of the Comptroller & Auditor General of India. 2. To declare Dividend on Equity Shares for the Financial Year 2024 - 25. 3. To re-appoint Shri S. J. Haider, IAS, (DIN: 02879522), who retires by rotation and being eligible offers himself for re- appointment. 4. To authorise the Board of Directors of the Company to fix remuneration of Statutory Auditors of the Company for Financial Year 2025 - 26, in terms of the provisions of Section 142 of Companies Act, 2013. SPECIAL BUSINESS 5. To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution: Appointment of Shri Pankaj Joshi, IAS as Director & Chairman liable to retire by rotation: "RESOLVED THAT Shri Pankaj Joshi, IAS, (DIN: 01532892) who was appointed as an Additional Director and Chairman pursuant to provisions of Sections 149, 152 and 161 of the Companies Act, 2013 read with Companies (Appointment and Qualifications of Directors) Rules, 2014 [including any statutory modification(s) or re-enactment thereof for the time being in force] and Articles of Association of the Company and who holds office up to the date of this Annual General Meeting and in respect of whom, the Company has received a notice in writing under Section 160 of the Companies Act, 2013, from a Member proposing his candidature for the office of the Director and Chairman be and is hereby appointed as a Director and Chairman of the Company till further orders by Government of Gujarat in this regard, who shall be liable to retire by rotation. 6. To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution: st To appoint Secretarial Auditor of the Company for a period of 5 consecutive years commencing from 1 April, 2025 st upto 31 March, 2030: "RESOLVED THAT pursuant to the provisions of Section 204 and other applicable provisions, if any, of the Companies Act, 2013 read with Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 [including any statutory modification(s) or re-enactment(s) thereof, for the time being in force] and Regulation 24A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, and based on the recommendation by the Board of Directors, M/s K K Patel & Associates (Firm Registration No. S2004GJ071900, PR Certificate No.: 1636/2021), Practicing Company Secretaries, be and is hereby appointed as the Secretarial Auditor of the Company for a st st period of five (5) consecutive years commencing from 1 April, 2025 upto 31 March, 2030 to conduct Secretarial Audit of the Company and to furnish the Secretarial Audit Report, on such remuneration as may be mutually agreed between the Company and the Secretarial Auditor. RESOLVED FURTHER THAT approval of the Members is hereby accorded to the Board to avail or obtain from the Secretarial Auditor, such other services or certificates or reports which the Secretarial Auditor may be eligible to provide or issue under the applicable laws at a remuneration as may be mutually agreed between the Company and the Secretarial Auditor. RESOLVED FURTHER THAT the Board of Directors be and is hereby authorized to do all acts, deeds, matters and things as may be deemed necessary and/or expedient in connection therewith or incidental thereto, to give effect to this Resolution.” GUJARAT GAS LIMITED Registered Office: Gujarat Gas CNG Station, Sector 5/C, Gandhinagar – 382006, Gujarat Tel: +91-79-2673 7400 / 2673 7500 Website: ,www.gujaratgas.com E-mail Id: Investors@GUJARATGAS.com CIN: L40200GJ2012SGC069118 TH NOTICE OF 13 ANNUAL GENERAL MEETING
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GUJARAT GAS LIMITED 2 2024-2025 th 13 ANNUAL REPORT 7. To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution: Ratification of remuneration of Cost Auditors for FY 2025 - 26: "RESOLVED THAT pursuant to the provisions of Section 148 of the Companies Act, 2013 and other applicable provisions of the Companies Act, 2013, if any, and the Companies (Audit and Auditors) Rules, 2014 [including any statutory modification(s) or re- enactment thereof, for the time being in force], the remuneration of M/s. Kailash Sankhlecha & Associates, Cost Accountants, (Firm Registration No. 100221), the Cost Auditor of the Company, (whose appointment and remuneration has been recommended by the Audit Committee and approved by the Board of Directors), for conducting the audit of the cost records maintained by the Company for the Financial Year 2025 - 26, i.e. ` 1,18,000/- (Rupees One Lac Eighteen Thousand only) plus applicable taxes and reimbursement of Out of Pocket Expenses incurred by them during the course of Audit, be and is hereby ratified. RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised to do all acts and to take such steps as may be necessary, proper and expedient to give effect to this Resolution.” By Order of the Board For Gujarat Gas Limited Sd/- th Date: 5 August, 2025 Sandeep Dave Place: Gandhinagar Company Secretary Registered Office : Gujarat Gas CNG Station, Sector 5/C, Gandhinagar – 382006, Gujarat Tel: +91-79-2673 7400 / 2673 7500 Website: E-mail: www.gujaratgas.com Investors@GUJARATGAS.com
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GUJARAT GAS LIMITED 3 2024-2025 th 13 ANNUAL REPORT Notes: th 1. The Ministry of Corporate Affairs (MCA) has vide its circular dated 19 September, 2024 read together with circulars dated th th th th th th 25 September, 2023, 28 December, 2022, 5 May, 2022, 14 December, 2021, 13 January, 2021, 5 May, 2020, th th 13 April, 2020 and 8 April, 2020, (collectively referred as “MCA Circulars”) and Securities and Exchange Board of India (“SEBI”) rd th th th vide its circular dated 3 October, 2024 read together with circulars dated 7 October, 2023, 5 January, 2023, 13 May, th th 2022, 15 January, 2021 and 12 May, 2020 (collectively referred to as “SEBI Circulars”) permitted convening of the Annual General Meeting through Video Conferencing (VC) or Other Audio Visual Means (OAVM), without the physical presence of the members at the common venue. In accordance with the MCA & SEBI Circulars, provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Annual General Meeting of the Company is being held through VC/OAVM. The deemed venue for the AGM shall be Registered Office of the Company. The Central Depository Services (India) Limited (CDSL) will be providing facility for voting through remote e-voting, for participation in the AGM through VC/OAVM facility and e-voting during the AGM. The procedure for participating in the Meeting through VC/OAVM is explained in later part of Notes. 2. Generally, a member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote on poll instead of himself and the proxy need not be a member of the Company. Since this AGM shall be conducted through VC/OAVM, the facility for appointment of proxy by the members will not be available for the AGM and hence the Proxy Form and Attendance Slip including the Route Map are not annexed hereto. 3. Corporate Members are requested to send a scanned copy of its Board Resolution authorizing its representative to attend the AGM through VC/OAVM and to vote at the AGM pursuant to Section 113 of the Companies Act, 2013 to the scrutiniser at scrutinizerggl@gmail.com. 4. An Explanatory Statement pursuant to Section 102 (1) of the Companies Act, 2013 relating to the special business to be transacted at the AGM and the relevant details of the Directors seeking appointment/re-appointment at the AGM as required under Regulation 36(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is annexed thereto. The Board of Directors have considered and decided to include the Item No. 5 , 6 & 7 given above as Special Business in the forthcoming AGM, as they are unavoidable in nature. th 5. The Company has fixed Friday, 5 September, 2025 as “Record Date” for determining entitlement of Final Dividend of st ` 5.82/- (i.e. 291%) per Share for the Financial Year ended on 31 March, 2025. ELECTRONIC DISPATCH OF ANNUAL REPORT AND PROCESS FOR REGISTRATION OF EMAIL ID FOR OBTAINING COPY OF ANNUAL REPORT/LOGIN CREDENTIALS FOR E-VOTING 6. In Compliance with the aforesaid MCA Circulars and SEBI Circulars, the Financial Statements (including the Report of Board of Directors, Auditor’s Report and other documents required to be annexed therewith) and Notice of AGM are being sent in electronic mode to Members whose E-mail addresses are registered with the Company or the Depository Participant(s). A letter providing the weblink for accessing the Annual Report is being sent to those Members who have not registered their E-mail addresses. 7. Members who have not updated their E-mail addresses and mobile number with the Company/ R&TA KFin Technologies Limited/respective Depository Participants are requested to follow the below procedure to get their E-mail addresses updated to obtain the copy of Annual Report and Login Credentials for attending AGM/casting votes through E-voting at www.evotingindia.com. • Shareholders holding Shares in physical mode: The Shareholders are requested to update their E-mail addresses and mobile number by sending following documents by E-mail with E-sign at or by writing to R&TA at Selenium einward.ris@kfintech.com Tower B, Plot Nos. 31 & 32, Financial District, Nanakramguda, Serilingampally Mandal, Hyderabad – 500032: a) A signed request letter mentioning your name, folio number, complete address and mobile number; b) Form ISR-1 c) Self attested scan copy of the PAN Card; and d) Self attested scan copy of any document (such as AADHAR Card, Driving Licence, Passport) in support of the address of the Member as registered with the Company. • Shareholders holding Shares in Demat mode: The Shareholders holding Shares in Demat mode are requested to update their E-mail addresses and mobile number with their Depository Participants. If you have any queries or issues regarding attending AGM & E-voting from the CDSL E-voting System, you can write to th Mr. Rakesh Dalvi, Sr. Manager, Central Depository Services (India) Limited, A Wing, 25 Floor, Marathon Futurex, Mafatlal Mill Compounds, N M Joshi Marg, Lower Parel (East), Mumbai - 400013 or send an E-mail to or helpdesk.evoting@cdslindia.com contact at toll free no. 1800 21 09911.
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GUJARAT GAS LIMITED 4 2024-2025 th 13 ANNUAL REPORT 8. Notice of the AGM along with the Annual Report for the FY 2024 – 25 is also available on the website of the Company i.e. www.gujaratgas.com, websites of the Stock Exchanges i.e. BSE Limited and National Stock Exchange of India Limited at https://www.bseindia.com/ https://www.nseindia.com/ and respectively. Further, the AGM Notice will also be available on the website of CDSL at .www.evotingindia.com PROCEDURE FOR JOINING THE AGM THROUGH VC / OAVM 9. The Company will provide facility of VC/OAVM to its member for participating at the AGM. The Members can join the AGM in the VC/OAVM mode 15 minutes before and after the scheduled time of the commencement of the Meeting by following the procedure mentioned in the Notice. The facility of participation at the AGM through VC/OAVM will be made available to atleast 1000 members on first come first served basis. This will not include large Shareholders (Shareholders holding 2% or more shareholding), Promoters, Institutional Investors, Directors, Key Managerial Personnel, the Chairpersons of the Audit Committee, Nomination and Remuneration Committee and Stakeholders Relationship Committee, Auditors etc. who are allowed to attend the AGM without restriction on account of first come first served basis. 10. Members attending the AGM through VC/ OAVM shall be counted for purpose of reckoning the quorum under Section 103 of the Companies Act, 2013. PROCEDURE FOR REMOTE E-VOTING AND E-VOTING DURING AGM 11. In compliance with provisions of Section 108 of the Companies Act, 2013 and Rule 20 of the Companies (Management and Administration) Rules, 2014, as amended and Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company is pleased to provide facility to the Members to exercise their right to vote by electronic means in respect of the Resolution(s) contained in this Notice. The Company has engaged the services of Central Depository Services (India) Limited (CDSL) as the Authorised Agency to provide remote e-voting facility (i.e. the facility of casting votes by a Member by using an electronic voting system from a place other than the venue of a General Meeting) as well as e-voting facility during the AGM. th 12. The cut-off date for the purpose of e-voting (including remote e-voting) is Thursday, 18 September, 2025. A person whose name is recorded in the Register of Members or in the Register of Beneficial Owners maintained by the Depositories at the close th of business hours on Thursday, 18 September, 2025 shall be entitled to vote on the resolutions proposed to be passed at the AGM by electronic means. The Voting rights of the members shall be in proportion of the paid-up value of their shares in the equity capital of the Company as on the cut-off date for the purpose of the e-voting. 13. The Members may cast their votes on electronic voting system from any place (remote e-voting). The remote e-voting will be available during the following period after which the portal shall forthwith be blocked and shall not be available: 14. The Board of Directors of the Company have appointed M/s K. K. Patel & Associates, Practising Company Secretary, as the Scrutinizer to scrutinize the entire e-voting process (i.e. remote e-voting and e-voting facility during AGM) in a fair and transparent manner. th 15. The Scrutinizer shall submit, on or before 27 September, 2025, a consolidated Scrutinizer’s Report (for votes casted during the AGM and votes casted through remote e-voting) of the total votes cast in favour or against, if any, forthwith to the Chairman of the Company or a person authorized by him, who shall declare the result forthwith. 16. The Results declared alongwith the Scrutinizer’s Report shall be placed on the Company’s website and www.gujaratgas.com on the website of Central Depository Services (India) Limited immediately after the result is declared and shall be simultaneously communicated to the BSE Limited (BSE) and The National Stock Exchange of India Limited (NSE) where the Equity Shares of the Company are Listed. 17. Information and instructions relating to e-voting are given as under: Remote E-voting: th (i) Pursuant to SEBI Circular No. SEBI/HO/CFD/CMD/CIR/P/2020/242 dated 9 December, 2020, under Regulation 44 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, listed entities are required to provide remote e-voting facility to its shareholders, in respect of all shareholders’ resolutions. Currently, there are multiple E-voting Service Providers (ESPs) providing e-voting facility to listed entities in India. This necessitates registration on various ESPs and maintenance of multiple User IDs and Passwords by the Shareholders. In order to increase the efficiency of the voting process, e-Voting facility is being provided to all the Individual Shareholders holding the securities in Demat mode, by way of single login credential, through their demat accounts/ websites of Depositories/ Depository Participants. Demat account holders would be able to cast their vote without having to register again with the ESPs, thereby, not only facilitating seamless authentication but also enhancing ease and convenience of participating in e-voting process. nd Commencement of remote e-voting 09:00 A.M. (IST) on Monday, 22 September, 2025 th End of remote e-voting 05:00 P.M. (IST) on Wednesday,24 September, 2025
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GUJARAT GAS LIMITED 5 2024-2025 th 13 ANNUAL REPORT th (ii) In terms of SEBI Circular No. SEBI/HO/CFD/CMD/CIR/P/2020/242 dated 9 December, 2020 on e-Voting facility provided by Listed Companies, Individual shareholders holding securities in demat mode are allowed to vote through their demat account maintained with Depositories and Depository Participants. Shareholders are advised to update their mobile number and E-mail Id in their demat accounts in order to access e-Voting facility. Pursuant to aforesaid SEBI Circular, Login method for e-Voting and joining virtual meetings for Individual shareholders holding securities in Demat mode is given below: Individual Shareholders holding securities in Demat mode with CDSL Individual Shareholders holding securities in demat mode with NSDL 1) Users who have opted for CDSL Easi / Easiest facility, can login through their existing user id and password. Option will be made available to reach e-Voting page without any further authentication. The users to login to Easi / Easiest are requested to visit CDSL website and click www.cdslindia.com on login icon & My Easi New (Token) Tab. 2) After successful login the Easi / Easiest user will be able to see the e-Voting option for eligible companies where the e-Voting is in progress as per the information provided by company. On clicking the e-Voting option, the user will be able to see e-Voting page of the e-Voting service provider for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting. Additionally, there are also links provided to access the system of all e-Voting Service Providers, so that the user can visit the e-Voting service providers’ website directly. 3) If the user is not registered for Easi/Easiest, option to register is available at CDSL website www.cdslindia.com and click on login & My Easi New (Token) Tab and then click on registration option. 4) Alternatively, the user can directly access e-Voting page by providing Demat Account Number and PAN No. from a e-Voting link available on home page. The system will www.cdslindia.com authenticate the user by sending OTP on registered Mobile & Email as recorded in the Demat Account. After successful authentication, user will be able to see the e-Voting option where the e-Voting is in progress and also able to directly access the system of all e-Voting Service Providers. 1) If you are already registered for NSDL IDeAS facility, please visit the e-Services website of NSDL. Open web browser by typing the following URL: either on a Personal Computer https://eservices.nsdl.com or on a mobile. Once the home page of e-Services is launched, click on the “Beneficial Owner” icon under “Login” which is available under ‘IDeAS’ section. A new screen will open. You will have to enter your User ID and Password. After successful authentication, you will be able to see e-Voting services. Click on “Access to e-Voting” under e-Voting services and you will be able to see e-Voting page. Click on company name or e-Voting service provider name and you will be re-directed to e-Voting service provider website for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting. 2) If the user is not registered for IDeAS e-Services, option to register is available at https://eservices.nsdl.com. Select “Register Online for IDeAS “Portal or click at https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp 3) Visit the e-Voting website of NSDL. Open web browser by typing the following URL: https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile. Once the home page of e-Voting system is launched, click on the icon “Login” which is available under ‘Shareholder/Member’ section. A new screen will open. You will have to enter your User ID (i.e. your sixteen digit demat account number hold with NSDL), Password/OTP and a Verification Code as shown on the screen. After successful authentication, you will be redirected to NSDL Depository site wherein you can see e- Voting page. Click on company name or e-Voting service provider name and you will be redirected to e- Voting service provider website for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting 4) For OTP based login you can click on . https://eservices.nsdl.com/SecureWeb/evoting/evotinglogin.jsp You will have to enter your 8-digit DP ID,8-digit Client Id, PAN No., Verification code and generate OTP. Enter the OTP received on registered email id/mobile number and click on login. After successful authentication, you will be redirected to NSDL Depository site wherein you can see e-Voting page. Click on company name or e-Voting service provider name and you will be re-directed to e-Voting service provider website for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting. Login MethodType of shareholders Individual Shareholders (holding securities in demat mode) login through their Depository Participants You can also login using the login credentials of your demat account through your Depository Participant registered with NSDL/CDSL for e-Voting facility. After Successful login, you will be able to see e-Voting option. Once you click on e-Voting option, you will be redirected to NSDL/CDSL Depository site after successful authentication, wherein you can see e-Voting feature. Click on company name or e-Voting service provider name and you will be redirected to e-Voting service provider website for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting.
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GUJARAT GAS LIMITED 6 2024-2025 th 13 ANNUAL REPORT Individual Shareholders holding securities in Demat mode with CDSL Individual Shareholders holding securities in Demat mode with NSDL PAN Dividend Bank Details OR Date of Birth (DOB) Members facing any technical issue in login can contact CDSL helpdesk by sending a request at or contact at toll free no. 1800-21-09911helpdesk.evoting@cdslindia.com Members facing any technical issue in login can contact NSDL helpdesk by sending a request at or call at 022 - 4886 7000evoting@nsdl.co.in Enter your 10 digit alpha-numeric *PAN issued by Income Tax Department (Applicable for both Demat Shareholders as well as Physical Shareholders) *Shareholders who have not updated their PAN with the Company/Depository Participant are requested to use the sequence number provided in the E-mail sent to the Shareholders. Enter the Dividend Bank Details or Date of Birth (in dd/mm/yyyy format) as recorded in your demat account or in the company records in order to login. • If both the details are not recorded with the Depository or Company, please enter the DP ID and Client ID / Folio Number in the Dividend Bank details field as mentioned in instruction (iii). Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget User ID and Forget Password option available at abovementioned website. Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login through Depository i.e. CDSL and NSDL: Helpdesk detailsLogin type (iii) Login method for e-Voting and joining virtual meeting for all Physical Shareholders and Shareholders other than individual Shareholders viz. Institutions/Corporate Shareholders holding Shares in Demat mode: 1) The shareholders should log on to the e-voting website .www.evotingindia.com 2) Click on “Shareholders” module. 3) Now enter your User ID a. For CDSL: 16 digits beneficiary ID, b. For NSDL: 8 Character DP ID followed by 8 Digits Client ID, c. Shareholders holding shares in Physical Form should enter Folio Number registered with the Company. 4) Next enter the Image Verification as displayed and Click on “Login”. 5) If you are holding shares in demat form and had logged on to and voted on an earlier e-voting of www.evotingindia.com any company, then your existing password is to be used. 6) If you are a first-time user follow the steps given below: (iv) After entering these details appropriately, click on “SUBMIT” tab. (v) Shareholders holding shares in Physical Form will then directly reach the Company selection screen. However, Shareholders holding Shares in Demat Form will now reach “Password Creation” menu, wherein, they are required to mandatorily enter their login password in the new password field. Kindly note that this password is to be also used by the demat holders for voting for resolutions of any other company on which they are eligible to vote, provided that company opts for e-voting through CDSL platform. It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential. (vi) For shareholders holding shares in Physical Form, the details can be used only for e-voting on the resolutions contained in this Notice. (vii) Click on the EVSN for the “GUJARAT GAS LIMITED” to vote on the same. (viii) On the voting page, you will see “RESOLUTION DESCRIPTION” and against the same the option “YES/NO” for voting. Select the option YES or NO as desired. The option YES implies that you assent to the Resolution and option NO implies that you dissent to the Resolution. (ix) Click on the “RESOLUTIONS FILE LINK” if you wish to view the entire Resolution details. (x) After selecting the resolution, you have decided to vote on, click on “SUBMIT”. A confirmation box will be displayed. If you wish to confirm your vote, click on “OK”, else to change your vote, click on “CANCEL” and accordingly modify your vote. (xi) Once you “CONFIRM” your vote on the resolution, you will not be allowed to modify your vote. (xii) You can also take a print of the votes cast by clicking on “Click here to print” option on the Voting page. (xiii) If a demat account holder has forgotten the login password, then Enter the User ID and the image verification code and click on “Forgot Password” and enter the details as prompted by the system. For Shareholders other than individual shareholders viz. Institution/ Corporate Shareholders holding shares in Demat mode & Physical shareholders.
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GUJARAT GAS LIMITED 7 2024-2025 th 13 ANNUAL REPORT (xiv) Facility for Non – Individual Shareholders and Custodians –Remote Voting: • Non-Individual Shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodians are required to log on to www.evotingindia.com and register themselves in the “Corporates” module. • A scanned copy of the Registration Form bearing the stamp and sign of the entity should be emailed to helpdesk.evoting@cdslindia.com. • After receiving the login details a Compliance User should be created using the admin login and password. The Compliance User would be able to link the account(s) for which they wish to vote on. • The list of accounts linked in the login should be mailed to and on approval of the accounts helpdesk.evoting@cdslindia.com they would be able to cast their vote. • A scanned copy of the Board Resolution and Power of Attorney (POA) which they have issued in favour of the Custodian, if any, should be uploaded in PDF format in the system for the scrutinizer to verify the same. • Alternatively Non Individual shareholders are required to send the relevant Board Resolution/ Authority letter etc. together with attested specimen signature of the duly authorized signatory who are authorized to vote, to the Scrutinizer and to the Company at the email address viz; , if they have voted from individual tab & not uploaded same in scrutinizerggl@gmail.com the CDSL e-voting system for the scrutinizer to verify the same. INSTRUCTIONS FOR SHAREHOLDERS ATTENDING THE AGM THROUGH VC/OAVM & E-VOTING DURING MEETING ARE AS UNDER: a. The procedure for attending meeting & E-voting on the day of the AGM is same as the instructions mentioned above for Remote E-voting. b. The link for VC/OAVM to attend meeting will be available where the EVSN of Company will be displayed after successful login as per the instructions mentioned above for Remote e-Voting. c. Shareholders who have voted through Remote E-voting will be eligible to attend the meeting. However, they will not be eligible to vote at the AGM. d. Shareholders are encouraged to join the Meeting through Laptops / IPads for better experience. e. Further shareholders will be required to allow Camera and use Internet with a good speed to avoid any disturbance during the meeting. f. Please note that Participants connecting from Mobile Devices or Tablets or through Laptop connecting via Mobile Hotspot may experience Audio/Video loss due to Fluctuation in their respective network. It is therefore recommended to use Stable Wi-Fi or LAN Connection to mitigate any kind of aforesaid glitches. g. Shareholders who would like to express their views/ask questions during the meeting may register themselves as a speaker by sending their request mentioning their name, demat account number/folio number, E-mail ID, mobile number at Investors@GUJARATGAS.com. The shareholders who do not wish to speak during the AGM but have queries may send their queries in advance mentioning their name, demat account number/folio number, E-mail ID, mobile number at Investors@GUJARATGAS.com. These queries will be replied to by the Company suitably. It is to be noted that Company reserves the rights to restrict the number of questions and number of speakers, as appropriate for smooth conduct of AGM. Further, the request for registration as speaker shareholder and Question / Queries received by Company till 5.00 P.M. on th Monday, 15 September, 2025 shall be considered and responded by the Company through e-mail. h. Those shareholders who have registered themselves as a speaker will only be allowed to express their views/ask questions during the meeting. i. Further, the facility of E-voting will also be available at the AGM and the members who have not cast their vote by Remote E-voting on all or any of the resolutions set out in the Notice can cast their vote at the Meeting. The Members who have cast their vote by Remote E-voting prior to the meeting may also attend the meeting but shall not be entitled to cast their vote again at the Annual General Meeting. If any Votes are cast by the Shareholders through the E-voting available during the AGM and if the same shareholders have not participated in the meeting through VC/OAVM facility, then the votes cast by such Shareholders shall be considered invalid as the facility of E-voting during the meeting is available only to the shareholders attending the meeting. PROCEDURE FOR INSPECTION OF DOCUMENTS 18. All the documents referred to in the accompanying Notice and Explanatory Statements, shall be available for inspection through electronic mode on the basis of prior request. Members seeking to inspect such documents can send the E-mail to Investors@GUJARATGAS.com. 19. During the AGM, the Register of Directors and Key Managerial Personnel and their Shareholding maintained under Section 170 of the Act, the Register of Contracts or Arrangements in which the Directors are interested under Section 189 of the Act shall be available for inspection electronically by the Members during the E-AGM upon login CDSL e-voting system at https://www.evotingindia.com www.cdslindia.com / .
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GUJARAT GAS LIMITED 8 2024-2025 th 13 ANNUAL REPORT DIVIDEND RELATED INFORMATION: th 20. Subject to approval of the Members at the AGM, the Dividend will be paid by the Company on or before Friday, 24 October, 2025 to the Members whose name appears on the Company’s Register of Members as on the Record Date i.e. Friday, th th 5 September, 2025 as Beneficial owners as at the close of business hours on Friday, 5 September, 2025, as per the list to be furnished by the Depositories in respect of the shares held in electronic form and for physical shareholders after giving th effect to all valid share transfer in physical form received as at the close of business hours on Friday, 5 September, 2025. 21. It is to be noted that payment of Dividend shall be made through electronic mode to the Shareholders who have updated their bank details. 22. Members holding shares in Demat Form are hereby informed that bank particulars registered with their respective Depository Participants, with whom they maintain their Demat accounts, will be used by the Company for the payment of Dividend. The Company or its Registrar cannot act on any request received directly from the Members holding shares in Demat Form for any change of bank particulars. Such changes are to be intimated only to the Depository Participant(s) of the Members. Members holding shares in Demat form are requested to intimate any change in their address and / or bank mandate immediately to their Depository Participants. 23. Members holding shares in Physical Form are requested to register / update Bank Mandates by submitting following details / documents by E-mail with E-sign at or by writing to our R&TA, KFin Technologies Limited (Kfintech):einward.ris@kfintech.com a) Name and Branch of Bank in which Dividend is to be received and Bank Account Type; b) Bank Account Number allotted by your Bank after implementation of Core Banking Solutions; c) 11 digit IFSC Code; and d) Self attested scanned copy of cancelled cheque bearing the name of the Member or first holder, in case Shares are held jointly. e) Form ISR – 1 – for KYC updation and Form ISR – 2 – for signature verification by Bank. 24. INFORMATION ON TDS ON DIVIDEND INCOME: Members may note that the Income Tax Act, 1961 mandates that dividends paid or distributed by a Company shall be taxable in the hands of the Shareholders. The Company shall therefore be required to deduct Tax at Source (TDS) at the time of payment of dividend as per the provisions of the Income Tax Act, 1961. APPLICABILITY OF TDS/WITHHOLDING TAX ON DIVIDEND WILL BE AS UNDER: FOR RESIDENT SHAREHOLDERS: Resident Individual Shareholder Resident Individual submitting form 15G/15H Insurance Companies Mutual Funds 10% NIL NIL NIL No TDS shall be deducted in the case where the total Dividend Income for FY 2025-26 to the Individual Shareholder from the respective entity paying the dividend does not exceed ` 10,000/- • Duly filled Form 15G (Individual less than 60 years) • Duly filled Form 15H (Individual with age 60 years or more) • Blank Form 15G and 15H can be downloaded from GGL's website at https://www.gujaratgas.com/investors/tds-on-dividend/ • Self-attested copy of valid PAN & IRDAI Registration Certificate • Duly signed self-declaration • D e c l a ra t i o n fo r m a t c a n b e d o w n l o a d e d f ro m G G L ' s we b s i t e a t https://www.gujaratgas.com/investors/tds-on-dividend/ • Self-attested copy of valid PAN & Registration Certificate issued by SEBI • Duly signed self-declaration that its income is exempt under Section 10(23D) of the Act and there is no requirement to deduct TDS in view of section 196(iv) of the Income Tax Act • D e c l a ra t i o n fo r m a t c a n b e d o w n l o a d e d f ro m G G L ' s we b s i t e a t https://www.gujaratgas.com/investors/tds-on-dividend/ Exemption applicability/ Documentation requirementCategory of shareholder Tax Deduction Rate Alternative Investment Fund Category- I & II NIL • Self-attested copy of valid PAN & Registration Certificate issued by SEBI • Self-declaration that its income is exempt under section 10(23FBA) read with Section 115UB read with Section 197A(1F) of the Act. New Pension System (NPS) Trust NIL • Self-attested copies of registration documents and valid PAN • Self-declaration that it qualifies as NPS Trust and income is eligible for exemption under Section 10(44) of the Act and being regulated by the provisions of the Indian Trusts Act, 1882 and there is no requirement to deduct TDS.
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GUJARAT GAS LIMITED 9 2024-2025 th 13 ANNUAL REPORT Non-Resident Shareholder including Foreign Institutional Investors / Foreign Portfolio Investors ('FII/FPI'] Submitting Order under section 197 or 195 of the Act. Any non-resident shareholder exempt from withholding tax deduction as per Income Tax Act or any other law granting overriding exemption/ immunity Non-resident shareholders may opt for a tax rate under the Double Taxation Avoidance Agreement ("Tax Treaty"). The Tax Treaty rate shall be applied for tax deduction at source on submission of the following documents to the company: • Self-attested copy of valid Permanent Account Number (PAN Card), if any, allotted by the Indian income tax authorities; • Self-attested copy of valid Tax Residency Certificate (TRC) (of FY 2025-26 or calendar year 2025), obtained from the tax authorities of the country of which the shareholder is resident • Self-declaration in Form 10F executed in electronic mode from Income tax portal as per the provisions of Income Tax Act. • Self-Declaration by the Non-Resident Shareholder of having no Permanent Establishment (No PE), No Fixed Base in India, no beneficial ownership & compliance with provisions of Multilateral Instrument (MLI) for claiming tax treaty benefit for financial year 2025-26 or calendar year 2025. • For Foreign Institutional Investors (FII) & Foreign Portfolio Investors (FPI), in addition to the above documents, certificate of registration with SEBI is also required to be submitted. The format for “Self Declaration by Non-Residents" can be downloaded from GGL's website at https://www.gujaratgas.com/investors/tds-on-dividend/ In case of shareholder being tax resident of Singapore, please furnish the letter issued by the competent authority or any other evidence demonstrating the non-applicability of Article 24 - Limitation of Relief under India-Singapore DTAA. The Company is not obligated to apply the beneficial DTAA rates at the time of Tax deduction / withholding on Dividend amounts. Application of beneficial DTAA Rate shall depend upon the completeness and satisfactory review by the Company, of the documents submitted by Non-Resident Shareholder. • Valid Lower / NIL Withholding Tax Certificate obtained from Income Tax Authorities for the F.Y. 2025-26 • Self-attested copy of valid PAN • Gujarat Gas Limited's Tax Deduction Account Number (TAN) which is required for applying lower/ nil TDS certificate is AHMG05349B. Necessary documentary evidence substantiating exemption from Withholding Tax deduction. The granting of exemption benefit shall depend upon the completeness and satisfactory review by the Company, of the documents submitted. Exemption applicability/ Documentation requirementCategory of shareholder Tax Deduction Rate FOR NON-RESIDENT SHAREHOLDERS 20% (plus applicable surcharge and cess) or Tax treaty rate (if the same is availed on the basis of submission of requisite documents & disclosures) Rate provided in Order NIL or applicable rate as per document Any other entity exempt from withholding tax under the provisions of Income Tax Act, 1961 (including those mentioned in Circular No. 18/2017 issued by Central Board of Direct Taxes ('CBDT')) Order u/s 197 of the Act NIL Rate provided in the order • Self-attested copy of documentary evidence supporting the exemption along with self-attested copy of valid PAN card. • A Declaration that they are covered under the circular No.18/2017 issued by CBDT & TDS is not required to be deducted on dividend income accrued to them. • Valid Lower / NIL Withholding Tax Certificate obtained from Income Tax Authorities for the F.Y. 2025-26 • Self-attested copy of valid PAN • Gujarat Gas Limited's tax deduction account number (TAN) which is required for applying lower/ nil TDS certificate is AHMG05349B.
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GUJARAT GAS LIMITED 10 2024-2025 th 13 ANNUAL REPORT The Shareholders are requested to upload the said Documents/Forms on the upload centre of Company's ['R&TA'] https://ris.kfintech.com/form15/ th on or before 7 September, 2025 in order to enable the Company to determine and deduct appropriate TDS / Withholding Tax Rate. The forms shall be submitted through the above specified mode only, no other mode shall be accepted. No communication on the Tax determination / deduction shall be entertained post the aforementioned timeline. The Shareholders holding shares under multiple accounts under different status / category and having single PAN, may note that, higher of the tax as applicable to the status in which shares held under a PAN will be considered on their entire holding in different accounts. Application of TDS rate is subject to necessary due diligence including verification by the Company of the details of the Member(s) available as per the Register of Members on the Record date, documents / other information available in the records of the Company / its Registrar & Transfer Agents (RTA) and other reliable source(s). The Company may deduct TDS on Dividend at the maximum applicable rate, in case of any incomplete, conflicting or ambiguous information and/or the valid proper documents and/or information not provided by the share holders. In the event of any Income Tax demand (including interest, penalty, etc.) arising from any misrepresentation, inaccuracy or omission of information provided / to be provided by the Shareholder(s), such Shareholder(s) will be responsible to indemnify the Company and also, provide the Company with all information / documents and co-operation in any appellate proceedings. It may be further noted that in case the tax on said dividend is deducted at a higher rate in absence of receipt of the aforementioned details / documents from residential shareholders, there would still be an option available to the shareholder to claim the appropriate refund at the time of filing the return of income as per eligibility. No claim shall lie against the Company for such taxes deducted. th The Company vide separate E-mail have sent detailed communication for deduction of Tax at Source on dividend on 4 August, 2025. The said communication is also available at Company’s website at https://www.gujaratgas.com/investors/tds-on- dividend/. IEPF RELATED INFORMATION: Pursuant to the provisions of Section 124 of the Companies Act, 2013 read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, the Company has transferred 94435 Equity Shares corresponding to the Dividends for the FY 2016-17 that remained unclaimed / unpaid for 7 consecutive years to the demat account held by IEPF Authority after following the due procedure prescribed under the Companies Act, 2013 and the IEPF Rules. In respect of unclaimed/unpaid Dividend for the FY 2017 – 18 to FY2023 – 24, the Company has been sending reminders to those members having unpaid/unclaimed dividends before transfer of such dividend(s) to IEPF. The Company has uploaded full details (Name, Folio no/DP id/Client id) of such shareholders on its website . Members who have not www.gujaratgas.com encashed their dividend pertaining to the FY 2017 – 18 to FY 2023 – 24 are advised to write to the Company or KFin Technologies Limited (KFin), the Registrar and Share Transfer Agent, at Selenium Tower B, Plot 31- 32, Gachibowli, Financial District, Nanakramguda, Hyderabad – 500 032, Toll free no.: 1800 309 4001 or e-mail: einward.ris@kfintech.com immediately for obtaining payment thereof mentioning the relevant Folio number or DP ID and Client ID along with bank details. The aforesaid Rules provides for the manner of transfer of the unpaid and unclaimed dividends to IEPF and the manner of transfer of shares in case any dividend has not been encashed by the shareholders on such shares during the last seven years to the designated demat account of the IEPF Authority. As per the requirement, the Company had sent information to all the shareholders who had not claimed/encashed dividends in the last seven years intimating, amongst other things, the requirements of the aforesaid rules with regard to transfer of shares and that in the event those shareholders do not claim any unclaimed/unpaid dividends for the past seven years, the Company will be required to transfer the respective shares to the IEPF demat Account by the due date prescribed as per the aforesaid rules and as amended from time to time. The Company had also th simultaneously published notice in the leading newspaper in English and regional language dated 26 June, 2025 having wide circulation as per statutory requirement and uploaded on the “Investors Section” of the Website of the Company viz. www.gujaratgas.com giving details of such shareholders and shares due to be transferred. In case valid claim is not received, the respective shares will be credited to the demat account of the IEPF Authority. 25. Members may note that they can claim back the Shares as well as unclaimed Dividends transferred to the IEPF Authority. Concerned Members/Investors are advised to visit the weblink https://www.iepf.gov.in/content/iepf/global/master/Home/Home.html or contact R&TA for lodging claim for refund of Shares and/or Dividend from the IEPF Authority.
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GUJARAT GAS LIMITED 11 2024-2025 th 13 ANNUAL REPORT OTHER INFORMATION: 26. As per Regulation 40(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as rd amended and read with SEBI Master Circular no. SEBI/HO/MIRSD/MIRSDPOD/P/CIR/2025/91 dated 23 June, 2025, all requests for transfer, transmission and transposition of securities, issue of duplicate share certificates, claim from unclaimed suspense account, renewal/ exchange of securities certificates etc. shall be processed only in dematerialized form. In view of this and to eliminate all risks associated with physical shares, members holding shares in Physical Form are requested to consider converting their holdings to Dematerialized Form. 27. The Securities and Exchange Board of India has mandated the submission of Permanent Account Number (PAN) by every participant in securities market. Accordingly, if not submitted, Members holding Shares in electronic mode are, therefore, requested to submit the PAN details to their Depository Participants with whom they are maintaining their demat accounts. Further, the Members holding Shares in physical form can submit their PAN details to kfin Technologies Limited in Form ISR - 1. rd 28. Pursuant to SEBI Master Circular no. SEBI/HO/MIRSD/MIRSDPOD/P/CIR/2025/91 dated 23 June, 2025 issued to the th Registrar and Transfer Agents and SEBI Circular no. SEBI/HO/MIRSD/POD-1/ P/CIR/2024/81dated 10 June, 2024, SEBI has st mandated that, with effect from 1 April, 2024, dividend to the security holders holding shares in physical mode shall be paid only through electronic mode. Such payment to the eligible shareholders holding physical shares shall be made only after they have furnished their KYC Details viz. PAN, Contact Details (Postal Address with PIN and Mobile Number), Bank Account Details, Specimen Signature, etc., for their corresponding physical folios with the Company or its R&TA. 29. The forms for updation of PAN, KYC, Bank details and Nomination viz. Forms ISR-1, ISR-2, ISR-3 and SH-13 are available on our website at https://www.gujaratgas.com/resources/downloads/investor-service-procedure-for-physical- shareholders-21-06-2024.pdf. In view of the above, we urge Members holding shares in physical form to submit the required forms duly filled up and signed, along with the supporting documents at the earliest to the RTA at its office address by E-mail with E-sign at . Towards this, the Company has also sent letters to the Members holding einward.ris@kfintech.com shares in physical form, in relation to applicable SEBI Circular(s). Members who hold shares in dematerialised form and wish to update their PAN, KYC, Bank details and Nomination, are requested to contact their respective DPs. 30. As stipulated under Regulation 36 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, profile of Directors seeking re-appointment / appointment is separately annexed herewith. 31. SEBI has established a common Online Dispute Resolution Portal (“ODR Portal”) for resolution of disputes arising in the Indian Securities. After exhausting the option to resolve their grievances with the R&TA/ Company directly and through existing SCORES platform, the investors can initiate dispute resolution through the ODR Portal i.e. .https://smartodr.in/login 32. Special Window for Re-lodgment of Transfer Requests of Physical Shares: Pursuant to SEBI Circular No. nd SEBI/HO/MIRSD/MIRSD-PoD/P/CIRl2025/97 dated 2 July 2025; it is informed that a Special Window is open for a period of th th six months, from 7 July, 2025 to 6 January, 2026 to facilitate re-lodgment of transfer requests of physical shares. This st facility is available for Transfer Deeds lodged prior to 1 April, 2019 and which were rejected or returned earlier by the Company due to deficiencies in documents. Kindly take advantage of this opportunity by furnishing the necessary documents to the Company's R&TA within the provided timeline. th 33. 100 Days Campaign - Saksham Niveshak: Pursuant to the Ministry of Corporate Affairs (MCA) letter dated 16 July, 2025, the th th Company has initiated the 100 Days Campaign - “Saksham Niveshak” from 28 July, 2025 to 6 November, 2025. This campaign has been launched to encourage shareholders who have not claimed their dividends from Financial Years 2017 - 18 to 2023 - 24 or have not yet updated their KYC and Nomination details to update the same with the Company’s Registrar and Transfer Agent (R&TA), i.e. KFin Technologies Limited. Accordingly, such concerned shareholders may write to the Company’s R&TA - KFin Technologies Limited (Unit: Gujarat Gas Limited) at Selenium Tower - B, Financial District, GachiBowli, Serilingampally Mandal, Nanakramguda, Hyderabad - 500032, Telangana, Toll-free No.: 1800-309-4001 or E-mail at . Further Shareholder may contact to einward.ris@kfintech.com Company at for any support. investors@gujaratgas.com 34. The Resolutions will be deemed to be passed on the Annual General Meeting date subject to receipt of requisite number of votes in favour of the Resolutions. For Gujarat Gas Limited Sd/-th Date: 5 August, 2025 Sandeep Dave Place: Gandhinagar Company Secretary Registered Office : Gujarat Gas CNG Station, Sector 5/C, Gandhinagar – 382006, Gujarat Tel: +91-79-2673 7400 / 2673 7500 Website: E-mail: www.gujaratgas.com Investors@GUJARATGAS.com
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GUJARAT GAS LIMITED 12 2024-2025 th 13 ANNUAL REPORT ANNEXURE TO THE NOTICE EXPLANATORY STATEMENT PURSUANT TO SECTION 102 (2) OF THE COMPANIES ACT, 2013 Item No. 5 - Appointment of Shri Pankaj Joshi, IAS as Director & Chairman liable to retire by rotation: Based on recommendation of the Nomination and Remuneration Committee, the Board had appointed Shri Pankaj Joshi, IAS [DIN: th 01532892], as an Additional Director & Chairman w.e.f. 7 February, 2025 under Section 161 of the Companies Act, 2013 read with Articles of Association of the Company, in view of communication No. MIS/11-2016/1765/E dated 06/02/2025 received from Energy & Petrochemicals Department, Government of Gujarat. He and his relatives hold NIL shares in the Company. As per the provisions of Section 161 of the Companies Act, 2013 and the Articles of Association of the Company, he holds the office of Director till the conclusion of this Annual General Meeting. A notice under Section 160 of the Companies Act, 2013, has been received from a shareholder, signifying the intention to propose his candidature for appointment as the Director of the Company. Accordingly, the Board recommends the said resolution in relation to his appointment as Director & Chairman liable to retire by rotation, for your approval by passing an ordinary resolution. His brief profile, nature of his expertise in specific functional areas, disclosure of relationships between directors, inter-se, names of companies in which he holds Directorship, Committee Memberships/ Chairmanships, his shareholding etc. and other information is annexed to this Explanatory Statement. Copy of aforesaid communication from Energy & Petrochemicals Department would be available for inspection through electronic mode. None of the Directors/Promoters or Key Managerial Personnel (KMP) or relatives of Directors/Promoters and KMPs, except Shri Pankaj Joshi, IAS, is concerned or interested in the Resolution at Item No. 5 of the Notice. Shri Pankaj Joshi, IAS and his relatives, if any, are interested or concerned in the Resolution concerning his appointment proposed at Item No. 5. The Board recommends the Resolution for approval of the Members. Members are requested to approve the Ordinary Resolution. st Item No. 6 - To appoint Secretarial Auditor of the Company for a period of 5 consecutive years commencing from 1 April, st 2025 upto 31 March, 2030: In accordance with the provisions of Section 204 and other applicable provisions of the Companies Act, 2013, read with Rule 9 of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force) (‘the Act’), every listed company and certain other prescribed categories of companies are required to annex a Secretarial Audit Report, issued by a Practicing Company Secretary, to their Board’s Report, prepared under Section 134(3) of the Act. Furthermore, pursuant to recent amendments to Regulation 24A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI Listing Regulations’), every listed entity and its material Subsidiaries in India are required to conduct Secretarial Audit and annex the Secretarial Audit Report to its annual report. Additionally, a listed entity must appoint a Secretarial Audit firm for a maximum of two terms of five consecutive years, with shareholders approval to be obtained at the Annual General Meeting. th Accordingly, the Board of Directors at its meeting held on 5 August, 2025, has approved the appointment of M/s K K Patel & Associates, Practicing Company Secretaries, (Firm Registration No. S2004GJ071900, PR Certificate No.: 1636/2021) as the st st Secretarial Auditor of the Company for a period of five (5) consecutive years, commencing from 1 April, 2025 to 31 March, 2030 subject to approval of the Members at the Annual General Meeting. Furthermore, in terms of the amended regulations, M/s K K Patel & Associates has provided a confirmation that they have subjected themselves to the peer review process of the Institute of Company Secretaries of India and hold a valid peer review certificate. M/s K K Patel & Associates has confirmed that they are not disqualified from being appointed as Secretarial Auditor and that they have no conflict of interest. M/s K K Patel & Associates has further furnished a declaration that upon appointment they will not render/provide any prohibited services to the Company, its holding and subsidiary companies as provided in Annexure – 3 of SEBI Circular dated st 31 December, 2024 read with list of services as notified by Institute of Company Secretaries of India from time to time.
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GUJARAT GAS LIMITED 13 2024-2025 th 13 ANNUAL REPORT M/s K K Patel & Associates, Practicing Company Secretaries had been appointed as the Secretarial Auditor of the Company for the st Financial Year ended 31 March, 2025. M/s K K Patel & Associates, is a corporate law advisory firm which has created a niche in Corporate Law practice with expertise in diverse domains. Shri Kiran Kumar Patel, founder of K K Patel & Associates, is a senior fellow member of the Institute of Company Secretaries of India, New Delhi. M/s K K Patel & Associates have set an excellent track record in the field of Corporate Laws, Securities Laws and Foreign Exchange Management Laws. The firm undertakes Corporate Governance Audits, Secretarial Audits, MSME Audits, Corporate Actions/Transactions/RBI based Due Diligence Audits. The Firm has expertise in Mergers and Acquisitions. The terms and conditions of the appointment of M/s K K Patel & Associates include a tenure of five (5) consecutive years, st st commencing from 1 April, 2025 upto 31 March, 2030. Further remuneration and fees for statutory certifications and other professional services will be as mutually agreed between the Company and the Secretarial Auditor. M/s K K Patel & Associates has provided its consent to act as the Secretarial Auditor of the Company and has confirmed that the proposed appointment, if made, will be in compliance with the provisions of the Act and the SEBI Listing Regulations. Accordingly, approval of the shareholders is sought for appointment of M/s K K Patel & Associates as the Secretarial Auditor of the Company. None of the Directors/Promoters or Key Managerial Personnel (KMP) or relatives of Directors/Promoters and KMPs is / are, in any way, concerned or interested, financially or otherwise, in the aforesaid Resolution No. 6 of this Notice. The Board recommends the Resolution for approval of the Members. Members are requested to approve the Ordinary Resolution. Item No. 7 - Ratification of remuneration of Cost Auditor for FY 2025 - 26: th The Board of Directors at its Meeting held on 5 August, 2025, on the recommendation of the Audit Committee, appointed M/s Kailesh Sankhlecha & Associates , (firm Registration No. 100221) as the Cost Auditor to conduct the Audit of the cost accounts / records maintained by the Company for the Financial Year 2025 - 26 at the remuneration of ` 1,18,000/- (Rupees One Lac Eighteen Thousand Only) + GST and out of pocket expenses. In accordance with the provisions of Section 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014, including any statutory modification(s) or re-enactment thereof for the time being in force, the said remuneration payable for FY 2025 - 26 to M/s Kailash Sankhlecha & Associates, Cost Accountants as Cost Auditor is required to be ratified by the Members of the Company. Therefore, the Directors recommend the Resolution at Item No. 7 of this Notice for your ratification / approval. None of the Directors/Promoters or Key Managerial Personnel (KMP) or relatives of Directors/Promoters and KMPs is / are, in any way, concerned or interested, financially or otherwise, in the aforesaid Resolution No. 7 of this Notice. The Board recommends the Resolution for approval of the Members. Members are requested to approve the Ordinary Resolution.
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GUJARAT GAS LIMITED 14 2024-2025 th 13 ANNUAL REPORT ANNEXURE TO THE EXPLANATORY STATEMENT Information pursuant to Regulation 36 (3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Secretarial Standards on General Meetings (SS-2) of Directors seeking appointment / re-appointment / continuation of appointment at the forthcoming Annual General Meeting: Name of Director DIN No. Date of Birth Date of the first appointment on the Board Qualifications Nature of Expertise / Experience Terms and Conditions of Appointment and details of Remuneration Names of other Companies in which the person also holds the directorship including listed entities No. of Share held including shareholding as beneficial owner Shri Pankaj Joshi, IAS Shri S. J. Haider, IAS 01532892 02879522 19/10/1965 03/12/1965 th 7 February, 2025 th 13 August, 2024 He possesses a degree of B.Tech. in Civil Engg. and M.Tech. in Water Resources Engg, IIT, New Delhi and M.Phil in Defence & Strategic Studies. He possesses degree of M.Sc. in Physics with specialization in Electronics He is a Senior IAS Officer of Government of Gujarat (GoG). Having joined the Indian Administrative Service in 1989, he has held various important positions in the Government of Gujarat in various departments like Land Revenue, Personnel and General Administration, Urban Development and Education Department for about 20 years. He has also worked with the Union Government in various Departments like Urban Development, Social Justice and Empowerment, Public Transport etc. for about 6 years. He has wide experience at the senior level in the Public Administration and Policy in various areas. He was Principal Secretary, Energy & Petrochemicals Department and Additional Chief Secretary to Chief Minister, Gujarat. He has also served as Director on the Board of various GoG entities from time to time. Presently, he is Chief Secretary, Government of Gujarat. A member of the Indian Administrative Service (IAS) with over 32 years of experience in administration and governance, Shri S. J. Haider is presently serving as the Additional Chief Secretary to the Government of Gujarat in Energy and Petrochemicals Department. Shri S. J. Haider has earlier served in various capacities such as District Development Officer, Municipal Commissioner and Collector & District Magistrate in various Districts of Gujarat and worked in various Departments like Finance, Transport, Science and Technology, Tourism & Civil Aviation, Rural Development, Education (Higher and Technical Education) and Industries and Mines Department. He also held the additional charge of Additional Chief Secretary, Climate Change Department. He has also served as Director on the Board of various GoG entities from time to time. Nominee Director. He does not draw any remuneration from Company except out of pocket expenses for attending meeting of Board/Committee of Directors. Further, sitting fees paid to Govt. Directors is deposited in Govt. Treasury. Nominee Director. He does not draw any remuneration from Company except sitting fees and out of pocket expenses for attending meeting of Board/Committee of Directors. Further, sitting fees paid to Govt. Directors is deposited in Govt. Treasury. Gujarat State Petroleum Corporation Limited Gujarat State Petronet Limited GSPL India Transco Limited GSPL India Gasnet Limited Gujarat State Fertilizer & Chemicals Limited Gujarat Narmada Valley Fertilizers & Chemicals Limited Sardar Sarovar Narmada Nigam Limited Gujarat Narmada Valley Fertilizers & Chemicals Limited Gujarat State Fertilizers & Chemicals Limited Gujarat State Petroleum Corporation Limited Gujarat Urja Vikas Nigam Limited Gujarat Energy Transmission Corporation Limited Gujarat State Electricity Corporation Limited Gujarat Power Corporation Limited Nil Nil
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GUJARAT GAS LIMITED 15 2024-2025 th 13 ANNUAL REPORT ANNEXURE TO THE EXPLANATORY STATEMENT Names of listed entities from which a person has resigned in the past three years No. of Meetings of the Board attended during the Financial Year (2024-25) Disclosure of relationship between directors inter-se Gujarat Alkalies and Chemicals Limited Gujarat State Petronet Limited Gujarat State Fertilizers & Chemicals Limited 1 NA Gujarat Mineral Development Corporation Limited 4 NA Memberships/ Chairmanships of Committees of Board of Directors of Company Nil Stakeholders Relationship Committee- Member Nomination and Remuneration Committee- Member Corporate Social Responsibility Committee- Member Business Responsibility & Sustainability Reporting (BRSR) Committee- Member Chairman/ Member of the Committees of other Companies including listed entities Gujarat State Petronet Limited Project Management Committee-Chairman Personnel Committee-Chairman Gujarat State Petroleum Corporation Limited Corporate Social Responsibility Committee- Chairman Committee of Directors for Financial Restructuring-Chairman Committee of Directors for Onshore Blocks- Chairman HR Committee-Member Project Committee-Chairman GSPL India Gasnet Limited Audit Committee – Chairman GSPL India Transco Limited Audit Committee – Chairman Gujarat State Petroleum Corporation Limited Project Committee- Member HR Committee- Member Nomination and Remuneration Committee- Member Corporate Social Responsibility Committee- Member Committee of Directors for Financial Restructuring- Member Committee of Directors for Onshore Block - Member Gujarat State Fertilizers & Chemicals Limited Nomination and Remuneration Committee – Member Project Committee - Member Gujarat State Electricity Corporation Limited Project cum Procurement Committee- Chairman Gujarat Narmada Valley Fertilizers & Chemicals Limited Nomination and Remuneration Committee – Member Stakeholder Relationship Committee- Member st *The details of directorship of Shri Pankaj Joshi, IAS and Shri S. J Haider, IAS are as on 1 April, 2025 By Order of the Board For Gujarat Gas Limited Sd/-th Date: 5 August, 2025 Sandeep Dave Place: Gandhinagar Company Secretary Registered Office : Gujarat Gas CNG Station, Sector 5/C, Gandhinagar – 382006, Gujarat Tel: +91-79-2673 7400 / 2673 7500 Website: E-mail: www.gujaratgas.com Investors@GUJARATGAS.com
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GUJARAT GAS LIMITED BOARD’S REPORT Dear Members, Gujarat Gas Limited th Your Directors have pleasure in presenting the 13 Annual Report and the Audited Financial Statements for the Financial Year ended st on 31 March, 2025. Revenue from Operations 17,184.97 16,292.97 17,184.97 16,292.97 Other income 209.97 107.75 208.29 106.11 Total income 17,394.94 16,400.72 17,393.26 16,399.08 Profit before interest, depreciation and tax 2,089.73 2,039.82 2,088.05 2,038.18 Less: Interest 32.49 29.31 32.49 29.31 Depreciation 510.64 474.30 510.64 474.30 Profit before tax 1,546.60 1,536.21 1,544.92 1,534.57 Share of Profit from equity accounted investee - - 4.49 2.57 Minority Interest - - - - Profit/(Loss) Before Tax and share of profit of associate 1,546.60 1,536.21 1,549.41 1,537.14 Tax expenses 401.09 393.44 401.09 393.44 Net Profit after tax for the period 1,145.51 1,142.77 1,148.32 1,143.70 Other Comprehensive Income (after tax) (OCI) - Equity Instruments through OCI 2.83 3.63 2.83 3.63 - Remeasurements of post-employment benefit obligation, 5.68 5.03 5.68 5.03 net of tax - Share of Other comprehensive income of equity - - (0.05) (0.05) accounted investee Total Comprehensive Income 1,154.02 1,151.43 1,156.78 1,152.31 RETAIN EARNINGS: Profit carried to retained earnings 1,145.51 1,142.77 1,148.32 1,143.70 Other Comprehensive Income carried to retained earnings 5.68 5.03 5.63 4.98 Add: Undistributed profit /(loss) of earlier years 6,791.02 6,101.00 6,824.24 6,133.35 Balance available for Appropriation 7,942.21 7,248.80 7,978.19 7,282.03 Less: Appropriations: Equity dividend (389.63) (457.78) (389.63) (457.78) Surplus / (Deficit) retained 7,552.58 6,791.02 7,588.56 6,824.24 Earnings per Share (Face value of ` 2 each) 16.64 16.60 16.68 16.61 (Basic & Diluted) Particulars 16 Financial Highlights Standalone Financials Consolidated Financials 12 Months ended 31/03/2025 12 Months ended 31/03/2024 12 Months ended 31/03/2025 12 Months ended 31/03/2024 (` in Crores) 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED BOARD’S REPORT PERFORMANCE HIGHLIGHTS • CNG volumes grew by 12% annually achieving highest volumes of 3.06 mmscmd in FY’2024-25 on the back of investments in CNG station infrastructure coupled with favourable government policies. • Company achieved a total volume of 9.62 mmscmd in FY 2024-25 • During FY 2024-25, Company has connected further ~1.51 lakhs homes through piped natural gas; crossed 22.6 Lacs Domestic connections. During the year, company has commissioned 20 CNG stations, aggregating to 828 CNG stations. • Gujarat Gas had launched Full Dealer Owned Dealer Operated (FDODO) scheme for fast track development of CNG stations infrastructure. GGL as a plan to expand its footprint in CNG Business has executed ~60 CNG FDODO Agreements. • During the year FY 2024-25, CRISIL, India Ratings and Care Ratings have reaffirmed rating on long term bank facilities of Company to AAA/Stable, after announcement of Scheme of Arrangement. • Company has been conferred the prestigious “SKOCH ESG Award 2024 in City Gas Distribution (CGD) Project for Green Hydrogen blending. • Company won the Asian Oil & Gas awards 2024 in two categories viz. “ESG Initiative of the year – India” and “Downstream Project of the year – India.” DIVIDEND th Your Directors recommend for consideration of the Shareholders at the 13 Annual General Meeting, the Dividend of ` 5.82/- per fully paid up Equity Share of ` 2/- each (291%) on 68,83,90,125 Equity Shares for the Financial Year 2024-25. This is 2.83 % higher than FY 2023-24, wherein, dividend payout was ` 5.66/- per share. The weblink for Dividend Distribution Policy is available at https://www.gujaratgas.com/resources/downloads/dividend-distribution-policy-w-e-f-10th-may-2023.pdf. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES Your Company does not have any subsidiary and joint venture. Guj Info Petro Limited is the Associate of your Company and the statement containing salient features of financial statements of Guj Info Petro Limited under Section 129(3) of the Companies Act, 2013 in prescribed Form AOC - 1 is enclosed herewith as Annexure - 5. CONSOLIDATED FINANCIAL STATEMENTS The Consolidated Financial Statements of the Company represents consolidation of Financial Statements of Guj Info Petro Limited (GIPL), the Associate Company, in accordance with IND AS. The Audited Consolidated Financial Statements are provided in the Annual Report. DEPOSITS During the year under review, your Company has not accepted deposits from the public falling within the ambit of Section 73 of the Companies Act, 2013 read with Companies (Acceptance of Deposits) Rules, 2014. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS The details of Loans, Guarantees, Securities and Investments, if any covered under the provisions of Section 186 of the Companies Act, 2013 are given in the Notes to the Financial Statements. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES All Related Party Transactions that were entered into during the financial year were on an arm’s length basis and were in the ordinary course of business. A statement giving details of all Related Party Transactions is placed before the Audit Committee for approval/ ratification on a quarterly basis, as the case may be. The policy on Materiality of Related Party Transactions and dealing with Related Party Transactions as approved by the Board is uploaded on the Company’s Website. None of the Directors has any pecuniary relationships or transactions vis-à-vis the Company. The particulars of contracts or arrangements with Related Parties referred to in Section 188 (1) of the Companies Act, 2013, as prescribed in Form AOC - 2 of the Companies (Accounts) Rules, 2014 is enclosed herewith as Annexure - 4 to this Report. 17 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED BOARD’S REPORT All transactions amount disclosed above are inclusive of tax. STATEMENT ON COMPLIANCES OF APPLICABLE SECRETARIAL STANDARDS Your Directors hereby confirm that during the year, the Company has been compliant with the applicable mandatory Secretarial Standards issued by the Institute of Company Secretaries of India. CORPORATE SOCIAL RESPONSIBILITY The Company has constituted a Corporate Social Responsibility (CSR) Committee in accordance with Section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended. Pursuant to provisions of Section 135 of the Companies Act, 2013, the Company has also formulated a Corporate Social Responsibility Policy which is available on the website of the Company at https://www.gujaratgas.com/resources/downloads/corporate-social-responsibility-policy-wef-1st- june-2021.pdf. The details of the initiatives taken during the Financial Year 2024–25 in various areas in accordance with the Corporate Social Responsibility Policy of GGL is provided in the Annual Report on CSR. The Annual Report on CSR activities as required under the Companies (Corporate Social Responsibility Policy) Rules, as amended is enclosed herewith as Annexure - 2 to this Report. Further as required by Rule 8 of Companies (Corporate Social Responsibility Policy) Rules, 2014, Executive Summary of Impact Assessment Report for eligible CSR Project issued by Independent Agency had been placed before the Board of Directors at its th meeting held on 5 August, 2025 and is being also attached to the Annual Report at Annexure - 2-A. Disclosures of transactions of the Company with person or entity belonging to the Promoter/Promoter Group which hold(s) 10% or more shareholding in the Company Gujarat State Petronet Limited - (GSPL) Holding Company Gas Transmission Expense 394.73 474.28 Transportation settlement charges - 1.93 O&M Charges - Expense 0.92 0.35 Reimbursement of Expenses 0.05 0.01 Recharge of Salary - Expenses 0.27 0.04 Dividend Paid 211.05 247.96 Rent Expense 4.08 3.99 Right of Way Expense - Expenses 0.19 0.22 Gas connectivity (Hooking up) Expenses 0.49 - O&M Charges - Income 0.04 0.04 Rent - Income 0.03 0.03 Reimbursement of Expenses - Income 0.31 0.43 Recharge of Salary - Income 0.89 0.87 Income from Material sale 1.95 - Deposit Given - Paid / (Refund) [Other than Connectivity] (0.26) (0.11) Deposit Given - Paid / (Refund) 21.63 13.67 [For Connectivity] Balance at the period end Amount Receivable/(Payable) (15.09) (21.37) Deposits Asset / (Liability) - Net 2.09 2.35 [Other than Connectivity] Deposit (For Connectivity) 86.63 64.99 Bank Guarantee - by GGL to GSPL 29.34 28.82 (` in Crores) For Year ended st 31 March 2025 For Year ended st 31 March 2024 Name of Related Party Relationship Nature of Transactions & Balances 18 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED BOARD’S REPORT BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL Appointment and Resignation of Directors Since last Board’s Report, Shri Raj Kumar, IAS (Retd.) ceased to be the Chairman of GGL consequent to resignation from the Board due to superannuation. Your Directors wish to place on record appreciation for the services rendered by Shri Raj Kumar, IAS (Retd.) as Chairman of GGL. Further, based on the recommendation of Nomination and Remuneration Committee, the Board had appointed Shri Pankaj Joshi, IAS, th Chief Secretary, Government of Gujarat as Additional Director & Chairman w.e.f. 7 February, 2025. It is proposed to regularize his th appointment at the ensuing 13 Annual General Meeting. Shri S J Haider, IAS, Director will retire by rotation and it is proposed to reappoint him as the Director of the Company in the ensuing th 13 Annual General Meeting. A brief resume of the Directors to be appointed at the ensuing Annual General Meeting, nature of expertise in specific functional areas and details regarding the Companies in which the Directorship is held together with the Membership / Chairmanship of Committees th of the Board along with other statutory details will be given in the Explanatory Statement forming part of the Notice of the 13 Annual General Meeting. DIRECTORS INDEPENDENCE Pursuant to the applicable provisions of Section 149 (6) of the Companies Act, 2013, the Independent Directors of the Company have given confirmation/declaration to the Board that they meet with the criteria of Independence and are Independent in terms of applicable provisions of Section 149 (6) of the Companies Act, 2013. Further, they have also given the confirmations on independence as per provisions of Regulation 16(1)(b) and 25 (8) of the Listing Regulations. BOARD EVALUATION Pursuant to the provisions of the Companies Act, 2013, the performance evaluation of the Board, Committees and individual Directors for Financial Year 2024-25 was carried out as per the terms and conditions of their appointment based on various parameters. MEETINGS OF THE BOARD OF DIRECTORS The Board meets at regular intervals to discuss and decide on Company / business policy and strategy apart from other Board business. The Board / Committee Meetings are pre-scheduled to enable the Directors to plan their schedule and to ensure meaningful participation in the Meetings. However, in case of a special and urgent business need, approval is taken by passing resolutions through circulation to the Directors, as permitted by law, which are noted in the subsequent Board/Committee Meetings. st st During the period from 1 April, 2024 to 31 March, 2025, 6 (Six) Board Meetings were convened and held, the details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. ANNUAL ACCOUNTS th The Audit Committee at its Meeting held on 19 May, 2025, approved the Financial Statements for the Financial Year ended on st 31 March, 2025 and recommended the same for approval of the Board. The same have been subsequently approved by the Board of th Directors at its meeting held on 19 May, 2025. AUDITORS As your Company is a Government Company, the Statutory Auditors are appointed by the Comptroller & Auditor General of India (C&AG). Accordingly, the C&AG had appointed M/s. Ashok Chhajed & Associates, Chartered Accountants as the Statutory Auditors of the Company for the Financial Year 2024-25. Auditors’ Report for Financial Year 2024-25 of M/s. Ashok Chhajed & Associates, Chartered Accountants are self-explanatory in nature and forms part of financial statements of the Company. C&AG has carried out supplementary audit of the Financial Statements of your Company for the Financial Year 2024 - 25 pursuant to provisions of Section 143 (6) (a) of the Companies Act, 2013. The C&AG has issued Nil Comment Report on Financial Statements of the Company for the Financial Year 2024 - 25 which forms part of financial statements of the Company. SECRETARIAL AUDITOR Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors of the Company had appointed M/s. K K Patel & Associates, Practicing Company Secretaries to conduct the Secretarial Audit of the Company for the Financial Year 2024-25. The Report of Secretarial Auditor on Company's Secretarial Audit for the Financial Year 2024-25 is enclosed herewith as Annexure - 3 to this Report. The Secretarial Audit Report is self- explanatory in nature. 19 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED BOARD’S REPORT st In terms of Regulation 24A of the Listing Regulations, with effect from 1 April 2025, your Company is required to appoint a Practicing Company Secretary for not more than one term of five consecutive years or a firm of Practicing Company Secretaries for not more than two terms of five consecutive years, as a Secretarial Auditor, with the approval of the members at its AGM and such Secretarial Auditor must be a peer reviewed company secretary and should not have incurred any of the disqualifications as specified under the Listing Regulations. Further, as per the said Regulation, any association of the individual or the firm as the Secretarial st Auditors of the Company before 31 March, 2025 shall not be considered for the purpose of calculating the tenure of the Secretarial Auditors. Taking into account the above requirements, the Board of Directors has approved the appointment of M/s K K Patel & Associates, Practicing Company Secretaries (Firm Registration No. S2004GJ071900, PR Certificate No.: 1636/2021) as Secretarial Auditors of st st the Company for a period of 5 years commencing from 1 April, 2025 upto 31 March, 2030, subject to approval of Shareholders at the ensuing Annual General Meeting. M/s. K K Patel & Associates have confirmed they are not disqualified from being appointed as the Secretarial Auditors of the Company and satisfy the prescribed eligibility criteria. Accordingly, resolution seeking Member’s approval for appointment of Secretarial Auditor for a period of 5 years commencing from st st th 1 April, 2025 upto 31 March, 2030 is included in the Notice convening the 13 Annual General Meeting. COST AUDITOR Your Company is required to carry out Cost Audit pursuant to Section 148 of the Companies Act, 2013, read with the Companies (Cost Records and Audit) Rules, 2014. Your Company had appointed M/s Kailash Sankhlecha & Associates, Cost Accountants as Cost Auditors for the Financial Year 2024-25. Accordingly, Cost Audit has been carried out for the Financial Year 2024-25. The Cost Audit Report for Financial Year 2024-25 will be submitted to the Central Government in the prescribed format within stipulated time period. Further, the Board of Directors upon recommendation of the Audit Committee, appointed M/s Kailash Sankhlecha & Associates, Cost Accountants as Cost Auditor to audit the cost accounts of GGL for the Financial Year 2025 - 2026 on a remuneration of ` 1,18,000/- plus applicable taxes and reimbursement of out of pocket expenses incurred by them during the course of Audit. As required under the Companies Act, 2013, the remuneration payable to the Cost Auditor is required to be placed before the Members in General Meeting for their ratification. Accordingly, a Resolution seeking Member’s ratification for the remuneration payable to M/s Kailash Sankhlecha & Associates, Cost Auditors for the Financial Year 2025 - 2026 is included in the Notice convening the th 13 Annual General Meeting. RISK MANAGEMENT AND INTERNAL CONTROL SYSTEM Risk Management The Company has a well-defined Risk Management Framework for reviewing the major Risks and has adopted a Business Risk Management Policy. Further, pursuant to the requirement of Regulation 21 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has constituted a Risk Management Committee inter-alia to monitor the Risk Management Plan of the Company. Internal Control System The Company has a proper and adequate system of Internal Controls commensurate with its size of operations and nature of business. These are regularly tested and certified by Auditors. Significant audit observations of audit team and follow up actions thereon are reported to the Audit Committee. The details about the identification of elements of Risk and Internal Control Systems are provided in detail in the Management Discussion & Analysis Report forming part of this Board’s Report. INTERNAL FINANCIAL CONTROLS The Company has in place adequate internal financial controls, with reference to financial statement. The internal financial controls have been documented in the business processes. Such controls have been assessed during the year under review and were operating effectively. VIGIL MECHANISM The Company has established a Vigil Mechanism to report genuine concerns, details of which have been given in the Corporate Governance Report forming part of this Boards' Report. There was no complain received under Vigil Mechanism during Financial Year 2024-25. 20 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED BOARD’S REPORT HEALTH, SAFETY AND ENVIRONMENT (HSE) Health, Safety and Environment (HSE) is a core value in GGL. GGL recognizes that the health and safety of all those involved in its operation and public along with protection of the environment is the prime responsibility of the company and its management at every level. GGL believes that outstanding business performance requires outstanding HSE performance. We aim to assure the integrity and safe operation of our assets, protect the health and safety of our employees, contractors & their staff, customers and general public in our operation area and to minimize the environmental impact associated with our business processes. GGL operations are driven by the goal of zero injuries and while pledging to perform at the best standards feasible in terms of environmental compliance, practices, and stewardship. We seek to encourage a culture of excellence and drive forward for continual improvement in HSE performance. QHSE commitment & Certification: GGL is committed that its QHSE management system complies with all applicable legal requirements including Acts, Regulations, National & International Standards, Guidelines and code of practices for Health Safety & Environment (including directives issued by legal, statutory or regulatory bodies) and follows best industrial practices. GGL aims to continue as an industry leader in City Gas Distribution business through its QHSE performance. GGL integrated management system was first certified by certification body M/s. DNV GL in 2018, re-certified by M/s. ICS in 2021 and now for the third time certified by M/s Bureau Veritas in February, 2025. GGL ensures that all management decisions reflect its Quality, Health, Safety & Environment (QHSE) intentions. The three certifications received by GGL are: • Management System Certificate for Quality Management System standard ISO 9001:2015 • Management System Certificate for Environmental Management System Standard ISO 14001:2015 • Management System Certificate for Occupational Health & Safety Management System Standard ISO 45001:2018 ISO audit & certifications demonstrate that the Integrated QHSE management system of the organization has been measured against the requirements of relevant standards and found compliant. Verification & certification by a third-party certification body validates GGL commitment to continual improvement in QHSE management building a sustainable business performance. GGL has more than 190 Standard Operating Procedures and Guidelines for seamless and safe functioning of various aspects of business. GGL has also initiated a Comprehensive Review of all its SOPs & Guidelines in terms of coverage, ERP system interface, process digitization, process performance indicators, monitoring mechanism, review and escalation etc. involving Ground teams, Management Team and external competent experts. The updated Standard Operating Procedures (SOPs), will reflect best industry practices and aid in faster decision making in this ever evolving business dynamics, operational requirements. This will also enhance the quality, safety & operational efficiency with an aim of continual improvement of the management systems at GGL. The standardization in the process would also help in accelerating digital transformation process being undertaken at GGL. Project execution with highest level of Safety & Risk levels at ALARP in new Charge Areas: GGL has entered into new charge areas within its authorized Geographical areas. New areas are being supplied gas through either by traditional gas pipeline extension to these areas or using fairly new concepts of Virtual Pipeline network through either Steel pipeline pack or decompression of CNG or regasification of LNG, in areas where pipeline laying project may take significant time. GGL takes extra HSE precautions for all such new projects. Risk assessment by utilizing industry recognized tools of Safety Engineering Studies has been at the fore-front of all such projects such as Hazard Operability (HAZOP), Quantitative Risk assessment (QRA), Escape Muster Evacuation & Rescue Analysis (EMERA) and Hazardous Area Classification (HAC) for all types of Gas installations at the planning stage itself and compliance to recommendations of these studies so that risks can be mitigated. GGL assets have been designed, constructed, commissioned, operated and maintained, such that the risks to personnel & public / society are reduced to As Low As Reasonably Practicable (ALARP). GGL carries out Environmental Impact Assessment (EIA) for pipeline projects passing through environmental/ecological sensitive areas/zones. In FY 2024-25 GGL has initiated EIA study for pipeline project in Union Territory of Dadra & Nagar Haveli GA to determine the potential environmental, social effects of the proposed project. The results of these study along with mitigation plan will be presented to Expert Advisory Committee (EAC) as part of application for Environmental Clearance from Ministry of Environment, Forest & Climate Change. GGL this year also continued with special focus on safety aspects at projects in new charge areas with implementation of HSE management system in these areas relevant to project requirement, trainings, visits & meetings by management team members focusing on safety requirements. 21 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED BOARD’S REPORT First of its kind Projects with focused Risk assessment & comprehensive testing – Green H2 blending: GGL along with M/s NTPC had commissioned India’s first Green H blending (5%) which was further increased to 8% in PNG 2 distribution network at Kawas, Hazira. This pilot project supplies blended gas to domestic & commercial connections of NTPC Township. The project is supporting to verify the feasibility assumptions and impact related to hydrogen blending such as safety, asset health/integrity, blending homogeneity, combustion and odorization etc. in PNG network. In FY 2024-25 GGL also carried out Quantitative risk assessment (desktop study) for PNG pipeline network with up to 15% H blending to understand the risks involved 2 due to higher blending levels for which the results were found within ALARP (As Low As Reasonably Practicable) levels. GGL also carried out thorough Material testing of various network assets (PE pipeline, fittings, GI piping and related fitting, burner, rubber components etc.) involving third party M/s Gujarat Energy Research & Management Institute to establish any deteriorating effects on network health due to blended hydrogen exposure. All test results were satisfactory and same was also presented to industry regulator. Quality & Safety at fore-front as GGL starts multiple CBG offtake in its PNG/CNG system: GGL in collaboration with Bio-gas manufacturers, has kick-started the operation of off-taking supply of Biogas into GGL PNG/CNG system at three new locations, taking the total tally of bio-gas off-take to seven: • Indore (UDI GA): Started off-take from Bio-gas producer – M/s Indore Clean Energy Pvt Ltd through cascades. • Gurdaspur (H&G GA): Started off-take from Bio-gas producer – M/s MEPL through injecting CBG into GGL Medium pressure PE pipeline • Hoshiarpur (H&G GA): Started off-take from Bio-gas producer – M/s Reliance Chemicals and Materials Limited through cascades. GGL and Bio-gas manufacturers together took Safety & quality requirement as the highest priority. Remote Gas Quality monitoring, odorization and automatic shut-off systems are the key things focused during these projects to ensure highest level of quality, safety & customer satisfaction while using Bio-gas which helps in significant contributions to issues related to waste management, air pollution and countries’ dependency on imported fuel. HSE Compliance Assurance & Audits: GGL conducts its business in a safe and responsible manner and ensures compliance with the all legal and regulatory requirements. Compliance assurance is confirmed through audits / inspections with respect to all applicable PNGRB regulations and other standards covering all geographical areas of GGL every year including this financial year. GGL has successfully conducted compliance audits & applicable recertification audits with respect to below listed PNGRB regulations through PNGRB empaneled Third Party Inspection Agency (TPIA) for Geographical Areas. • ERDMP Periodic Certification Audits: Successfully completed for Dahod Geographical Area in line with PNGRB Codes of Practices for Emergency Response and Disaster Management Plan, Regulations in Financial Year 2024-25. • T4S & IMS Certification Audits: Successfully completed T4S & IMS periodic audits for One (1) Transmission Natural gas pipeline (Hazira Ankleshwar pipeline) and Fourteen (14) Geographical Areas – Palghar district & Thane Rural GA, Amritsar GA, Valsad GA, Dadra & Nagar Haveli GA, Surendranagar GA, Gandhinagar GA, Bhavnagar GA, Jamnagar GA, Navsari GA, Surat, Ankleshwar and Bharuch (SAB) GA, Hazira GA, Rajkot (including Morbi) GA, Nadiad GA & Dahej GA as per the defined periodicity of TPIA audits, in line with PNGRB Technical Standards and Specifications including Safety Standards (T4S), Regulations and PNGRB Integrity Management System (IMS), Regulations, in Financial Year 2024-25. No major non-compliances were observed during above mentioned audits, most of the observations arising out of these audits are being addressed on priority basis. Compliance report of all these audits have been submitted to regulatory board as well. Key Safety Index The safe delivery of projects and safe operations of assets is a critical success factor for the company’s business. GGL sets HSE targets and closely monitors it to achieve continual improvement in QHSE performance. GGL recognizes that leadership commitment is fundamental for continual improvement in HSE performance. GGL management team members review HSE performance on regular basis. At GGL, Health Safety & Environment performance is measured through HSE Scorecard. The scorecards include various Key Performance Indicator (KPIs), both leading as well as lagging indicators defined internally focusing on various aspects of HSE such as Leadership, Management system, Risk management, Incidents etc. Monthly monitoring of these KPIs against pre-defined targets helps to assess the effectiveness of HSE performance. In Financial Year 2024-25, GGL has achieved an average of around 90% compliance to its HSE scorecard. GGL is committed to protect Safety, Health and Well-being of people working for the organization. Lost Time Injury Frequency (LTIF) is the industry standard key indicator which is used to measure GGL’s occupational safety performance. • GGL has achieved Lost Time Injury Frequency of 0.122 for the Financial Year 2024-25. • Total man-hours of GGL in Financial Year 2024-25 is 32.76 Million. 22 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED BOARD’S REPORT 23 Asset Integrity Index: Asset Integrity (AI) in CGD (City Gas Distribution) is the management of the physical condition of gas assets to ensure that they are fit for purpose over their life cycle and do not pose a risk to personnel, public, property and environment. Asset Integrity management is thus critical for safe operation of our facilities and to ensure suitable and sufficient measures are in place to prevent a major accident. At GGL, Asset Integrity is paramount to ensure the safety and reliability of operations and its key performance is measured through AI Scorecard. The AI scorecards include various Key Performance Indicator (KPIs), both leading as well as lagging indicators defined based on industry standard to emphasize attention upon matters related to AI Management system. AI KPIs include process measures, operational measures & direct integrity measures and are essential tools for managing asset integrity risks. The regular monitoring of these KPIs against pre-defined targets helps to assess the effectiveness of asset performance. In Financial Year 2024-25, GGL has achieved an average of around 94% compliance to its AI scorecard. Mock-drills: GGL has a well-developed and certified Emergency Response and Disaster Management Plan through PNGRB approved Third Party Inspection agency (TPIA) for each of its operational Geographical Areas. GGL conducts mock-drills at defined intervals to check adequacy of preparedness against various anticipated emergency scenarios across all locations. Debriefing sessions are conducted after every mock-drill and recommendations are compiled in time-bound manner. In Financial Year 2024-25, GGL carried out more than 190 mock-drills. Break-up of the same is as below: • Level-1 Mock-drills – 110 numbers • Level-2 Mock-drills involving local emergency services/mutual aid partners - 52 numbers • Level-3 Mock-drills including participation in the offsite mock drills organized by District authorities – 32 numbers GGL Lifesaver Rules & Compliances: GGL has well-defined 10 Lifesavers Rules for work related to safety critical areas such as Safe Systems of Work, Excavation-HDD- Boring, Working at Height, Lifting, Confined Space Entry, Driving, Gas Escape Handling, Electrical, CNG Handling & LNG Handling. All critical activities are covered under these defined 10 lifesaver areas which are monitored throughout the year using Work place inspection checklists defined based on lifesaver rules. In Financial Year 2024-25, GGL has achieved ~ 95% compliance to lifesavers rules. HSE Initiatives: To improve HSE performance, various HSE initiatives and programs are undertaken as part of HSE improvement plan such as Awareness sessions with frontline workers and supervisors on various aspects of Safety, Utility coordination meetings, Safety awareness workshops at local schools, campaign activities related to lifesaver areas, Hazard hunt activities, special drives to check compliance in defined focus areas, etc. across operations. In Financial Year 2024-25, GGL has achieved 100% compliance to its HSE improvement plan. GGL encourages participation and involvement of its employees and contractor staff in HSE related activities through monthly HSE committee meetings, Hazard and Near miss reporting, monthly quiz, risk assessment, work place inspections, various campaigns and celebration of HSE events and numerous safety awareness programs. GGL has also established a system for evaluating contractor performance on monthly basis. Quality & HSE performance has been made an essential part of this performance evaluation with pre-defined key indicators. HSE Awareness & Trainings: GGL always ensures that safety training and awareness programs are conducted periodically for employees and contractor staff. In Financial Year 2024-25: • 1766 numbers of Safety & Technical Competency Training programs have been conducted which includes Basic Safety, Practical Fire-fighting, First Aid Treatment, Defensive Driving, Working at height and other Technical Competency trainings in various areas such as GI Plumbing, CNG filling, Welding, CGD O&M, LCNG O&M etc. • 1286 numbers of Safety Awareness Programs have been conducted for employees and contractors. • GGL also organizes various safety awareness programs on Natural Gas related safety for its customers, general public. In Financial Year 2024-25: • 1135 numbers of Natural Gas safety awareness program have been conducted for general public, customers. GGL also conducted various Social Media Campaigns for awareness & engagement with customers & public at large, on various Health, Safety & Environmental aspects related to PNG & CNG and its uses during: National Nutrition Week, World Environment Day, PNG & CNG Awareness Quiz campaign. GGL has collaborated with M/s. Aspire Disruptive Skill (ADS) Foundation for executing one of its CSR activity of conducting skill development programs. The objective of the training is empowering the needy and unemployed youth through industry responsive skill development and enhance their livelihood. More than 350 youth have been trained in these Skill development trainings and out of them 68 candidates have already been placed in oil & gas & other sectors. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED BOARD’S REPORT GGL also educates and influences various third-party utility companies and their contractor’s workforce, machine operators etc. who undertake digging/excavation/drilling activities on or near the underground GGL gas pipeline network through coordination meetings, site sessions, including giving away of utilizable gifts such as water bottles, key chains etc. with GGL contact numbers for Dial before Dig/Emergency. These sessions are done to focus on the critical safety risks and environmental impact caused due to damage of natural gas pipelines while digging/excavation/drilling operations. In Financial year 2024-25 GGL has conducted 1597 numbers of Utility coordination & Natural Gas safety awareness programs & briefings for various utility companies, their contractors & its workforce. GGL has extensively implemented usage of ‘Call before you Dig’ application which has been developed by Department of Telecom, Government of India with an intention to increase coordination between digger and Utility agencies so as reduce damages to underground utilities including gas pipelines during excavation activities. GGL contractors have registered on this application and raise requests in CBUD app before starting digging activities and we are also urging third parties to use this app / dial in/ inform directly to GGL prior to starting any digging so that damage to Natural gas pipeline network can be prevented. Celebrating HSE Events at GGL GGL, being a prudent organization, celebrates various HSE related events like National Safety Week, National Road Safety Month and World Environment Day. th GGL celebrated 54 National Safety Week in March 2025, focusing on this year’s theme “Safety and Well-being crucial for Viksit Bharat”. Below mentioned activities & competitions were accomplished across all locations of GGL. • Safety Pledge at GGL Offices & Safety Message dissemination to employees by Management • Photobooth set-up for clicking photographs with motto "Safety First for Safe India" to create awareness about safety week theme • "QR enabled Safety Quiz" for GGL employees, Outsourced staff & Contractor Staff with GA-wise rewards for lucky winners • Team Competition on "Risk Assessment" for defined safety critical activities at GGL with zone-wise rewards for best Team performance • Competition on Capturing Best Safe Site, with GA-wise rewards for winners • Team Competition on "Hazard Hunt" at project sites, Gas installation facilities • Level-1 Mock drill for GGL offices - fire scenario including evacuation to review Emergency Preparedness • Contractor Engagement Session at Site - Safety pledge, Brief about NSW theme, importance of compliance to safety norms, HSE Reporting, Recent incident sharing. GGL observed National Road Safety Month in the month of January 2025, playing part in making our roads safer for everyone. Below mentioned activities were planned and completed across all locations of GGL as part of this celebrating this event: • Group gathering at GGL Offices & Road Safety message to employees by Management • Awareness on Road Safety through "QR enabled Quiz" for GGL employee, Outsourced Employees & Contractor Staff with GA- wise rewards for lucky winners • Road Safety Initiative considering kite festival - Installation of protector rod on two-wheelers and Distribution of crash helmet to Outsourced and Office staff using two-wheeler for office commute • Photobooth set-up for clicking photographs with "I Pledge to Drive Safe" to instil commitment for road safety and awareness about the event • Eye check-up camp for CNG MCV drivers / LNG Tanker Drivers /Hired vehicle drivers /Emergency & Maintenance vehicle drivers • Defensive Driving Training for GGL Employees, Outsourced employees, MCV/LNG tanker/Emergency O&M vehicle /Hired office vehicle drivers & Two-wheeler Patrolmen etc. • Vehicle safety inspection drive covering all office vehicles, O&M Emergency vehicle, CNG MCVs and LNG Tankers • Poster making competition on ‘Distractions while driving' for Children of GGL & Outsourced Employees and rewarding children with best poster under different age categories • Team Competition - "Skit/Naatak Video on Driving Lifesavers" with zone-wise rewards for best Team performance • Rewarding/Appreciation for Best driver (Amongst contractor drivers of MCV/LNG Tanker/Hired vehicle/EMV) based on past performance • Awareness Session on Driving Safety focusing on "Dealing with various type of distraction" for MCV/LNG tanker driver, Patrolmen, Meter readers, O&M team etc. st GGL celebrated 51 World Environment Day to encourage awareness and implement actions for protection of our environment. Following activities carried out as part of celebration plan. • More than 3800 sapling/tree plantation, distributed across all GGL locations • Display of custom Environment Day banners & Group gathering at GGL Offices 24 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED BOARD’S REPORT 25 • Poster competition – World Environment Day 2024 theme "Land restoration, Desertification & Drought resilience" for Children of GGL and Out Source Employees • Spot Quiz – GGL Employees and Contractor Staff All of these activities were done with an aim to involve employees, contractors, society at large and enhance their awareness regarding significance of Health Safety & Environment aspects and related best practices. HSE Rewards & Recognition at GGL: With an intention to motivate and foster a positive HSE culture and step-up HSE-AI compliance and performance, GGL has put in place HSE reward and recognition scheme to acknowledge significant HSE contribution of employees and contractor staff and to boost their confidence. Under this scheme: • HSE contributor of the month among employees and contractor staff are identified on monthly basis at each geographical area and are rewarded during monthly HSE committee meeting. • Monthly Best Hazard & Best Near miss carefully selected based on quality and safety criticality and rewarded • Best HSE Performer of the quarter for each Zone GGL also conducted monthly online HSE-AI Quiz based on HSE and Asset Integrity focus areas to raise awareness amongst employees across GGL & winners of this quiz identified through draw system are awarded each month. Step up with Environmental, Social and Governance - ESG system: ESG is a system to measure the sustainability of a company or investment in three specific categories: Environmental, Social and Governance. With intentions to grow & reduce costs in the long run and forge a sense of trust amongst consumers & stakeholders, GGL is in continuous endeavor to integrate ESG into GGL business & Corporate Strategies. Gujarat Gas Limited won the “Asian Oil & Gas Awards 2024” in following two Categories for its ESG projects & Natural Gas distribution project respectively • Environmental Social Governance (ESG) initiative of the year – India • Downstream project of the year – India The Award recognizes the most outstanding players in Asia's oil and gas sector. GGL won the “SKOCH ESG Award 2024” for its pilot project on Green H blending in CGD network. The project has created wide 2 positive Environmental, impact. GGL was adjudged the winner for the coveted honor of SKOCH ESG Award second year in a row, after extensive scrutiny for completion, veracity of the nomination and rounds of evaluation presentations scored by expert jury & peers and popular voting. MANAGEMENT DISCUSSION & ANALYSIS The Management Discussion & Analysis is as under: 1. INDUSTRY STRUCTURE AND DEVELOPMENTS Natural gas is considered a relatively clean-burning fossil fuel compared to coal and oil, producing fewer emissions of air pollutants and carbon dioxide (CO ) when burned to produce an equal amount of energy.2 Natural Gas is the cleanest and most efficient of the fossil fuels and is a smart energy choice. Not only does it supplement renewable energy, such as wind and solar, but it also has a smaller carbon footprint than other fossil fuels. Natural Gas is used as a feedstock in several industries like fertilizers, plastics and other commercially important organic chemicals and used as a fuel for electricity generation, heating purpose in industrial and commercial units. Natural gas is also used for cooking in domestic households and as a transportation fuel for vehicles. Escalating conflict in the Middle East and Russia’s continued war in Ukraine have global attention sharply focused on some of the world’s most important energy-producing regions. While some of the acute impacts of the global energy crisis have receded, geopolitical uncertainty is exposing the underlying fragilities of the global energy system, regardless of technology or geography. Energy infrastructure is also facing increasing risks from extreme weather events that are becoming an all too common aspect of life 1 for people around the world. Currently, natural gas's share in India's energy mix is around 6%. The government aims to increase this share to 15% by 2030. This is part of a broader plan to transition to a cleaner energy system and reduce reliance on polluting fossil fuels. The government is pursuing several initiatives to boost natural gas consumption, including expanding the National Gas Grid, expanding the City Gas Distribution (CGD) network, setting up Liquefied Natural Gas (LNG) terminals, promoting Compressed Natural Gas (CNG) and Piped Natural Gas (PNG). The Government has also set the target to achieve net-zero emissions by 2070. India also aims to raise its non-fossil energy capacity to 500 GW by 2030 while meeting 50 per cent of its energy demand through renewables. India has also committed to reducing 1 billion tonnes of projected emissions from now till 2030 and achieving carbon intensity reduction of 45 per cent over 2 2005 levels by 2030. 1 International Energy Agency | World Energy Outlook 2024 2 https://www.ceew.in/news/cop-26-ceew-unpacks-indias-2070-net-zero-target-and-other-climate-mitigation-measures 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED BOARD’S REPORT 26 During the FY 2024-25 crude oil prices had shown declining trend and has seen low of $72.02 per barrel in March 2025 and high of $89.44 per barrel in April 2024, a decline of almost 24% with >$17 per barrel downward movement for Indian basket. By the end of 5 financial year the prices had decline to $72.02 with year average of $78.56. 2024-2025 th 13 ANNUAL REPORT India's natural gas consumption is forecast to increase by nearly 60% by 2030, driven by robust growth in city gas distribution, industrial demand and power generation. Targeted strategies and policy interventions could boost gas consumption beyond the forecasted trajectory to around 120 bcm/yr by 2030, close to the current gas consumption of the entire continent of South America. Inter-fuel competition is particularly strong in India, with natural gas vying against coal, oil and renewables in several gas-consuming sectors. This means that even small changes in global gas prices can significantly impact domestic consumption patterns. This price sensitivity underscores the need for competitive pricing to enable natural gas adoption. India's LNG imports are set to more than double between 2023 and 2030, driven by steady demand growth and a much slower rise in domestic production. Between 2013 and 2023, India's LNG imports increased by 70%, and reached 36 bcm in 2024, matching the previous record set in 2020 and cementing the country’s position as the fourth-largest LNG importer globally. Looking ahead, India's LNG demand is projected to grow steadily, reaching 64 bcm/yr by 2030. This represents an annual average growth rate of 11% for 3 the 2023-2030 period, twice the average rate observed in the previous ten years. Consumption of Natural Gas (including internal consumption) with a volume of 72.293 BCM (billion cubic meters) during the Financial Year 2024-25 registered more than 7% growth year-on year basis over the volume of 67.512 BCM during Financial Year 2023-24. During the FY 24-25, consumption of Natural Gas (NG) was driven by fertilizer (29%) followed by CGD (21%), Power (12%) Refinery (8%), Petrochemicals (5%). Miscellaneous sectors occupied a share of 25%. Fertilizer sector occupied the highest share for the Consumption of Natural Gas at 29%. The CGD sector share has remained steady at 21%, power sector has slightly reduced from 4 13% to 12%. 3 International Energy Agency | India Gas Market Report Outlook to 2030 4 Source: PPAC Sectoral Consumption for FY 2024-25 5 Source: PPAC report | Crude Oil FOB Price (Indian Basket) FY 2024-25
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GUJARAT GAS LIMITED 27 2024-2025 th 13 ANNUAL REPORT BOARD’S REPORT 2. OPPORTUNITIES AND THREATS The Indian government is promoting natural gas usage through various initiatives, including expanding the National Gas Grid Pipeline, City Gas Distribution (CGD) network and Liquid Natural Gas (LNG) Terminals. The government also provides subsidies to encourage natural gas consumption and has implemented policies to increase domestic production and ensure affordable gas prices for key sectors like transportation and domestic use. A scheme has also been launched to develop pipeline infrastructure for the injection of Compressed Biogas (CBG) into the CGD network, facilitating the use of renewable biogas in the gas grid. Government has announced phase wise mandatory selling of CBG in CNG (T) and PNG (D) segment of CGD network to promote the production and utilization of CBG. As per CBG Obligation (CBO) is presently voluntary till FY 2024-2025 and mandatory selling obligation would start from FY 2025-26. CBO shall be kept as 1%, 3% and 4% of total CNG/PNG consumption for FY 2025-26, 2026-27 and 2027-28 respectively. From 2028-29 onwards CBO will be 5%. Further, to cater the growing demand of CGD sector and to protect the common people from price volatility, the Government has released new CGD sector Gas allocation Guidelines wherein the allocation of PNG (Domestic) segment was increased (i.e. 105% of PNG (Domestic) consumption in the previous quarter) and balance available volume to be supplied to CNG (T) segment on prorate basis. The revised methodology has been helpful for the CGD entity as the lag between the allocation and reference period has been reduced from average of 6 months to average of 3 months which reflects a more realistic consumption data. With the declining natural gas production from aging fields of Oil and Natural Gas Corporation (ONGC), a cut in Administered Pricing Mechanism (APM) gas supplies by up to 20%, effective from April 16, 2025 was notified. ONGC is offsetting the natural gas decline in output from ageing gas fields by drilling new wells. However, gas from these new wells is sold at a higher price to cover the added costs. As per the recent media reports, allocation will also now include New Well Gas (NWG) from nomination fields of the two state explorers, ONGC, and Oil India (OIL), with auction-based allocation for New Well Gas being replaced with a quarterly pro-rata allocation, to ensure timely and reliable supply. With both Administered Pricing Mechanism gas and New Well Gas prices linked to Indian crude basket prices, which are calculated monthly, the government sees the allocation of domestic gas to make natural gas more affordable for CNG (T) and PNG (Domestic) consumers after recent decline in crude prices. Gas from new wells drilled by ONGC in the same nomination fields is priced at 12 per cent of the Indian crude oil basket. Similar to any other business, the Company faces challenges in the form of stiff competition from other fuels due to accessibility and availability. The fuel also faces risk in the form of disparity in the tax structure compared to alternate fuels as PNG and CNG (T) are still out of GST ambit. In FY 24-25, the Indian City Gas Distribution (CGD) sector faced challenges primarily related to gas availability and pricing, particularly due to declining APM gas allocations and rising import dependence. Infrastructure constraints, including pipeline expansion and secure pricing, also hindered the growth. The availability of cheaper APM gas had decreased during FY 2024-25, impacting CGD company margins. This has led to a shift towards more expensive HPHT (High Pressure High Temperature) gas, New Well Gas and RLNG. The reduced APM gas allocations had put greater reliance on imported LNG, making the sector more susceptible to price volatility and higher costs. The rising costs of imported gas and reduction in APM gas had forced the CGD companies to pass on some of the increased costs through increase in CNG (T) prices. The comparison to alternate fuel price may limit the CGD entities to pass on any further increase in gas costs. During the year, the Spot LNG (West India Marker) prices have fluctuated from a low of $8 per mmbtu to $17% per mmbtu. The high fluctuations has led to uncertainty in prices to Industrial customers thereby impacting volumes during the year. The reduction in crude prices shall immediately lower the alternate fuel prices thereby affecting volumes in the short term. However, in the medium term, as the NG prices have a lag of 3-6 months to crude prices, the price differential between NG and alternate fuel is expected to reduce considerably. Notwithstanding these, your Company shall continue to focus placing environmentally clean Natural Gas to affordable markets for sustainable growth. Further, PNGRB had also issued a Public Notice in January 2025 pertaining to declaration of 71 CGD networks as Common Carrier or Contract Carrier out of which 19 GAs are authorized to your Company. This was webhosted pursuant to the hearing held in December 2024 at PNGRB office. Your Company has responded to the PNGRB Public Notice and views shared by other stakeholders in the said matter.
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GUJARAT GAS LIMITED 28 Source: Petroleum Planning and Analysis Cell (PPAC) Snapshot of India’s Oil & Gas Data- March, 2025 During the year, your Company has achieved a growth of 12.5%, 5.4% and 4.6% in CNG (T), PNG (Domestic) and PNG (Commercial) sales respectively compared to previous year. Your Company has continued its focused efforts for developing and growing PNG and CNG (T) business. Your Company has connected more than 1,51,000 PNG (Domestic) customers and commercialized 20 new CNG (T) stations during the year. 4. OUTLOOK The future outlook for natural gas in India depends on the growth in demand, the evolution of the pricing regime and the pace of gas infrastructure expansion. The demand will steadily rise with adoption of natural gas in new emerging Geographical Areas. Your Company has already adopted digitization of its critical processes and going forward also, your Company shall leverage its endeavors for more digitization and aims to set benchmark in the CGD industry for complete E-Office, benefiting all the stakeholders viz. consumers, vendors, suppliers and employees. Your Company is also exploring newer technologies viz. Hydrogen blending in GGL’s existing CGD network, injecting Compressed Bio- Gas (CBG) in CGD distribution network, pilot project on Captive CNG application for residential complex, dedicated satellite LNG station, sourcing electricity generated from renewable sources i.e. Solar/ wind plants for running GGL COCO CNG stations. 2024-2025 th 13 ANNUAL REPORT BOARD’S REPORT Domestic Connection GGL Others CNG Stations GGL Others Commercial Connectons GGL Others Industrial Connections GGL Others 15% 85% 89% 11% 65% 35% 78% 22% Your Company has completed the Minimum Work Program (MWP) targets as applicable viz. PNG (Domestic) connections, Pipeline Inch- km laid, Compression Capacity and CNG Stations in the Geographical Areas (GA) of Surat-Bharuch-Ankleshwar, Valsad, Union Territory of Dadra and Nagar Haveli, Dahej-Vagra Taluka, Anand District (excluding areas already authorized), Panchmahal District, Amritsar, Navsari, Narmada (Rajpipla) District, Palghar District & Thane Rural, Ahmedabad District (excluding areas already authorized) and Amreli District. Further as per the provision of the regulations, for the GA of Dahej-Vagra Taluka, the sectoral regulator has reduced the PBG by 60% on account of achievement of MWP. 3. SALES AND MARKET PERFORMANCE Your Company as on date has total 27 CGD licenses and operates in 44 Districts across six States and one Union Territory (UT) and also has one transportation pipeline license. Your Company has an expanse of around 1,75,700 square kilometers of licensed area under its umbrella and continues to hold the position among the largest CGD Company in Country. Your Company supplies natural gas to more than 22.6 lakh residential consumers, over 15,600 commercial customer and has erected/commissioned 828 CNG stations for vehicular consumers and provides clean energy solutions to over 4,400 industrial units through its wide spread operations with more than 42,600 kilometers of Natural Gas pipeline network.
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GUJARAT GAS LIMITED 29 2024 2025 2026 Avg for the Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2024 2025 2026 Brent Spot Average 82.96 84.72 80.03 74.65 75.83 65.04 62.00 61.00 60.00 60.00 59.00 58.00 80.56 65.97 59.00 (dollars per barrel) Source: U.S. Energy Information Administration | Short-Term Energy Outlook – May 2025 2024-2025 th 13 ANNUAL REPORT India’s Natural Gas supply and demand outlook is changing. The Government of India (GoI) wants to make India a gas-based economy by boosting domestic production. India has set a target to raise the share of gas in its primary energy mix to 15% by 2030 from about current level of 6%. To improve the share of Natural Gas and promote a gas-based and clean fuel economy, the GoI has adopted a systematic approach to focus on all aspects of the gas sector viz upstream, midstream and downstream including CGD network development. Your Company has been continuously growing and expanding its horizon by venturing into new geographic areas and is committed to reach every possible Natural Gas user across its licensed expanse of around 1,75,700 square kilometers through its ever-growing pipeline network spread across 44 Districts in six States and one UT. Your Company shall continue to focus on growing the penetration in the current operating areas by increasing the PNG connections and additional CNG stations while tapping the untapped potential by expeditious rollout of distribution network in its operating Areas. With this focused endeavor, your Company shall continue its efforts in providing clean fuel solutions across all operational area to augment an energetic top-line and bottom-line in coming years. 5. RISKS AND CONCERNS As per EIA Short-Term Energy Outlook (STEO) May 2025 report, the Brent crude oil spot price averaged $68 per barrel (b) in April. The rising inventories will result in the Brent price averaging $62/b in the second half of this year and falling to $59/b next year. The evolving tariff policy has added uncertainty around expectations for global oil demand growth, concerns about which had persistently weighed on oil prices over the last year. On the supply side, any potential ceasefire in the Russia-Ukraine conflict could add Russian oil volumes back into the market. Lastly, continued supply growth from producers outside of the OPEC+ agreement, primarily in North and South America, adds additional downward pressure to the price forecast in 2026. Higher forecast summer prices are offset by lower prices during the first half of the year, owing to market concerns over potential macroeconomic weakness and OPEC+ supply additions. It is forecasted that by the end of this year rising oil supply will mean more oil is being produced globally than is being consumed, leading to inventory accumulation and downward pressure on prices. As a result, it is forecasted that the Brent crude oil price is expected to average at $59/b in 2026. On the domestic front the evolving geo-political situation between India and Pakistan may have some impact in the short to medium term on the demand side. BOARD’S REPORT 90 80 70 60 50 40 30 20 10 0 Q1 Q4Q2 Q3 Q1 Q4Q2 Q3 Q1 Q4Q2 Q3 2024 2025 2026 82.86 84.72 80.03 74.65 75.83 65.04 62.00 61.00 60.00 60.00 59.00 58.00 Brent Spot Average ($ per barrel)
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GUJARAT GAS LIMITED BOARD’S REPORT Particulars FY 2024-2025 FY 2023-2024 Debtors Turnover 15.01 14.40 Inventory turnover 694.85 681.82 Interest Coverage - - Ratio Current Ratio 2.10 1.64 Debt Equity - - Operating Profit 12.03% 12.03% Margin (%) Net Profit Margin (%) 6.67% 7.01% Return on Net Worth 14.02% 15.36% Remarks Net Credit Sales / Average Trade Receivable Cost of goods sold or sales /Average Inventory (Natural Gas) Earning for Debt Service / Interest for borrowing [Earning for Debt Service = Net Profit after taxes + Non-cash expenses/adjustment + Interest -Lease payments] Current assets / Current liabilities net of customer deposit Total Borrowing / Total Equity Operating income / Revenue from operations PAT / Revenue from operations PAT / Average Net Worth Reason for significant changes NA NA NA Mainly due to increase in deposits with financial institutions in current financial year NA NA NA NA • Previous year's ratios have been reclassified wherever necessary to confirm to the current period's presentation. INTERNAL CONTROL SYSTEM AND ADEQUACY The Company has a proper and adequate system of Internal Controls commensurate with its size of operations and nature of business. The Company’s Internal Control Systems are further supplemented by extensive programs of audits, i.e. Internal Audit, Proprietary Audit by the Comptroller & Auditor General of India (C&AG) and Statutory Audit by Statutory Auditors appointed by the C&AG. The Internal Control System is designed to ensure that all financial and other records are reliable for preparing financial statements and other data and for maintaining accountability of assets and compliance with statutory requirements. The Company has mapped a number of business processes on to SAP system, thereby leading to significantly improved controls & transparency. Your Company also continues to invest in Information Technology to support various business processes and automating controls. FINANCIAL AND OPERATIONAL PERFORMANCE The standalone net profit after tax (Total comprehensive income) for the current financial year 2024-25 increased to ` 1,154.02 Crores from ` 1,151.43 Crores in the previous year. The Company had a healthy net cash inflow from operations of ` 1,805.86 Crores st during the Financial Year 2024-25. There is no outstanding loan as on 31 March, 2025. Investments were made in extension of pipeline network to reach new areas and in reinforcements and upgradation of existing network as required. Investments were also made to connect residential customers and augmenting the CNG infrastructure. Investments were also made to upgrade the IT infrastructure and integrate SAP to enhance reliability and enable scalability. No amount has been transferred to the General Reserve during the year. Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefore, including: HUMAN RELATIONS AND PARTICULARS OF EMPLOYEES st Your Company employed 953 employees as on 31 March, 2025. Your Company is dedicated to enhancing the capabilities and competencies of its employees. We believe that continuous training and development are essential for creating an environment where individuals can fully leverage their technical skills and innate potential, contributing to the Company’s ability to capitalize on emerging business opportunities. Throughout the year, employees participated in various training programs and seminars to expand their knowledge and skill sets. Additionally, they utilized an online training platform to further enhance their knowledge. The Company is also committed to automating all its policies and processes to improve efficiency. To encourage and reward employee performance, Company has in place a policy of performance linked incentive. There was no strike or lock-out during the year under review. 30 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED BOARD’S REPORT DISCLOSURES IN RELATION TO THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013 This disclosure is given in the Corporate Governance Report which forms part of Board’s Report 2024 – 25. STATEMENT ON COMPLIANCE WITH MATERNITY BENEFIT ACT, 1961 Your Company has been complying with the provisions of the Maternity Benefit Act, 1961. CORPORATE GOVERNANCE The Company believes that good governance can deliver continuous good business performance. The particulars on Corporate Governance as required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is incorporated as a part of this Board's Report at Annexure -1. ANNUAL RETURN The Annual Return of the Company in the Form MGT – 7 is available on the website of the Company at https://www.gujaratgas.com/GGL/annual-return/ CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO The details about conservation of energy, technology absorption, foreign exchange earnings and outgo is attached at Annexure – 6. Foreign Exchange Earnings and Outgo- The Company has incurred expenditure in Foreign Exchange to the extent of ` 1.42 Crores during Financial Year 2024-25 (Previous Financial Year 2023-24 ` 0.38 Crores) and the Foreign Exchange Earnings during Financial Year 2024-25 were ` Nil (Previous Financial Year 2023-24 ` Nil). SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS There are no significant material orders passed by the Regulators/Courts during the year, which would impact the going concern status of the Company. MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF GGL During the year under review and up to the date of this Report, the following material events took place: Composite Scheme of Arrangement and Amalgamation: th The Board of Directors of the Company at its Meeting held on 30 August, 2024, approved the Composite Scheme of Arrangement and Amalgamation amongst the Gujarat State Petroleum Corporation Limited ("GSPC"/ "Transferor Company 1"), Gujarat State Petronet Limited ("GSPL"/ "Transferor Company 2"), GSPC Energy Limited ("GEL"/ "Transferor Company 3") (Transferor Company 1, Transferor Company 2 and Transferor Company 3, collectively referred to as the “Transferor Companies”), Gujarat Gas Limited ("GGL"/ "Transferee Company"/ "Demerged Company") and GSPL Transmission Limited ("GTL"/ "Resulting Company") and their respective shareholders (“Scheme”), on the terms and conditions as set out in the Scheme pursuant to the provisions of Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 and the rules made thereunder. The Board has recommended following share exchange ratios on Amalgamation: On Amalgamation of Transferor Company 1 with GGL: “10 (Ten) fully paid Equity Shares of ` 2/- (Rupees Two only) each of the Transferee Company for every 305 (Three Hundred and Five) fully paid Equity Shares of ` 1/- (Rupees One only) each held by the shareholders in the Transferor Company 1.” On Amalgamation of Transferor Company 2 with GGL: “10 (Ten) fully paid Equity Shares of ` 2/- (Rupees Two only) each of the Transferee Company for every 13 (Thirteen) fully paid Equity Shares of ` 10/- (Rupees Ten only) each held by the shareholders in the Transferor Company 2.” On Demerger of Gas Transmission Business Undertaking into GTL “1 (One) fully paid Equity Share of ` 10/- (Rupees Ten only) each of the Resulting Company for every 3 (Three) fully paid Equity Shares of ` 2/- (Rupees Two only) each held by the shareholders in the Demerged Company.” The Company has received the Observation Letters from Stock Exchanges viz. BSE Limited and The National Stock Exchange of India Limited conveying “No Objection” in terms of Regulation 37 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 to the proposed Scheme of Arrangement and Amalgamation. The Company has filed an Application before Ministry of Corporate Affairs for necessary directions. The Scheme is subject to approval from the Shareholders and other regulatory/governmental authorities. Business Develpment: Your Company, with a commitment of providing complete energy solutions that empower communities, businesses and industries and with an aim to become a total energy solution provider, has decided to commence sourcing and sale of Propane / LPG to industrial customers. There have been no material changes and commitments, if any, affecting the financial position of GGL which have occurred between the end of the Financial Year of GGL to which the Financial Statements relate and the date of this Report.31 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED BOARD’S REPORT BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT Gujarat Gas Limited is dedicated towards fostering an atmosphere of transparency and accountability by working in partnership and empowering our stakeholders. To protect and for the benefit of all our stakeholders, we strive to promote sustainable development. GGL considers its responsibility towards sustainable development as an opportunity to succeed by taking actions which are beneficial for society as a whole. We applaud SEBI’s introduction of the "Business Responsibility and Sustainability Reporting" ("BRSR") reporting structure, which includes comprehensive Environmental, Social and Governance ("ESG") disclosures. The third edition of our Business Responsibility and Sustainability Report (BRSR) forms part of the Annual Report, in which we attempted to provide all non-financial disclosures in accordance with clause (f) of sub-regulation (2) of Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”). The report provides all our stakeholders with a comprehensive view and insight into our Company's contribution to the economy, the environment and society, which can be utilized to showcase GGL’s dedication towards long-term growth. In order to meet the expectations of our investors and other stakeholders, we are improving the transparency of our report, as well as our strategic approaches to create value for our stakeholders while minimizing risk in the external environment. th Pursuant to Regulation 34 of the Listing Regulations, 2015 and SEBI Circular dated 28 March, 2025, GGL being among the top 250 listed entities (by market capitalization) is is required to undertake assessment or assurance of the BRSR Core for the Financial Year 2024 - 25 through a Third Party Assurance Provider having necessary expertise for undertaking such assessment or assurance. In terms of SEBI Listing Regulations, the Company has obtained, BRSR Reasonable Assurance on BRSR Core Indicators from C N K & Associates LLP. Statement on ESG along with GGL Business Responsibility & Sustainability Report is attached at Annexure-7 of the Board’s Report st and Assurance Report on BRSR Core for the Financial Year ended 31 March, 2025 is attached at Annexure-7A. DIRECTORS' RESPONSIBILITY STATEMENT To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Section 134(3) (c) of the Companies Act, 2013: st a. that in the preparation of the annual accounts, financial statements for the year ended 31 March, 2025, the applicable accounting standards have been followed and no material departures have been made from the same; b. that accounting policies have been selected and applied consistently and judgment and estimates have been made that are st reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31 March, 2025 and of the profit of the Company for the year ended on that date; c. that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; d. that the annual financial statements have been prepared on a going concern basis; e. that proper internal financial controls were in place and that the financial controls were adequate and were operating effectively. f. that systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively. ACKNOWLEDGEMENTS The Directors place on record their deep appreciation to employees of the Company at all levels for their hard work, dedication and commitment. The Directors are extremely grateful for all the support given by the Government of Gujarat at all levels. The Directors place on record their sincere thanks to the Promoters, Shareholders, PNGRB, MOPNG, Suppliers, Lenders and Customers for their valuable support, trust and confidence reposed in the Company. 32 2024-2025 th 13 ANNUAL REPORT For and on behalf of the Board of Directors th Date: 5 August, 2025 Pankaj Joshi, IAS Place : Gandhinagar Chairman
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GUJARAT GAS LIMITED ANNEXURE – 1 A REPORT ON CORPORATE GOVERNANCE * Including Directorship held in Private Limited Companies, Section 8 Companies and Banking Companies. ** The above details represent Membership/ Chairmanship of Audit Committee and Stakeholders Relationship Committee as per Regulation 18 and 20 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (including details of GGL). + Membership includes Chairmanship. st The Directors present the Company's Report on Corporate Governance as on 31 March, 2025. 1. GGL's philosophy on Corporate Governance Your Company believes that Corporate Governance is driven by the core values of the Company. Your Company promotes the values of customer orientation, team work, commitment, growth and trust. These reflect the Company's approach to all its stakeholders in the course of carrying out its business. The Company's values are portrayed in a set of strong Business Principles. These Business Principles are continuously communicated and reinforced with employees and contractors. The Company seeks to comply with all applicable legal, regulatory and license requirements and strives to work constructively with regulatory bodies. 2. Board of Directors A. Composition of the Board: The Board has eight (8) Directors, seven (7) of whom are Non-Executive Directors (NEDs) and one (1) Executive Director (ED). Four (4) of these are Independent Directors, which is in compliance with Regulation 17 of the SEBI (Listing st Obligations and Disclosure Requirements) Regulations, 2015. The details of composition of the Board as on 31 March, 2025, category as well as their Directorships on Board and Memberships in committees of companies, are given below: Name of Director Position/Category *No. of Directorship including Gujarat Gas Ltd. 1 Shri Pankaj Joshi, IAS Non- Executive Chairman 8 2 2 (Promoter Nominee) 2 Shri S. J. Haider, IAS Non- Executive Director 8 2 0 (Promoter Nominee) 3 Dr. T Natarajan, IAS Non- Executive Director 10 7 0 (Promoter Nominee) 4 Shri Milind Torawane, IAS Managing Director 10 3 0 (Promoter Nominee) 5 Shri Balwant Singh, Non-Executive and 1 2 1 IAS (Retd.) Independent Director 6 Prof. Yogesh Singh Non-Executive and 1 1 0 Independent Director 7 Shri Bhadresh Mehta Non-Executive and 6 7 4 Independent Director 8 Dr. Rekha Jain Non-Executive and 2 4 0 Independent Director Sr. No. 33 No. of Membership/ Chairmanship in Board Committees in which Chairman / Member** Chairmanship+Membership 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED The Board Meetings are generally held in Gandhinagar, including an option of virtual attendance. The Board meets at regular intervals to discuss and decide on various issues including strategy related matters pertaining to the business/Company. The Board meets at least once a quarter with a gap between two meetings not exceeding 120 days. It has remained the practice of the Company to place before the Board, all the matters listed in Part A of Schedule II of Regulation 17 (7) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The board agenda papers and other explanatory notes are circulated to the Directors in advance. The draft minutes of the meetings of the Board of Directors and its Committees are circulated to the Directors for their comments before being recorded in the Minute Books. Apart from this, approval of the Committee/Board is obtained through circulation of resolution to all the Directors in case some urgent/special situation arises. Such Circular Resolution is also noted in the next Board Meeting/Committee Meeting. The Directors also have access to all the information about the Company and are free to recommend inclusion of any matter in the agenda for discussion. Senior Management Personnel are invited to attend the Board Meetings to provide clarifications as and when required by the Board. During the year 2024-2025, the Board met 6 (Six) times. Details of these Meetings are as follows: Names of Listed Entities where Directorship is held along with category of Directorship by the Directors as on st 31 March, 2025: Sr. No. Name of Director Name of Listed Entities Category of Directorship 1 Shri Pankaj Joshi, IAS Gujarat Gas Limited Chairman Gujarat State Petronet Limited Chairman & Managing Director Gujarat State Fertilizers & Chemicals Limited Chairman Gujarat Narmada Valley Fertilizers & Chemicals Limited Chairman 2 Shri S. J. Haider, IAS Gujarat Gas Limited Director Gujarat State Fertilizers & Chemicals Limited Director Gujarat Narmada Valley Fertilizers & Chemicals Limited Director 3 Dr. T Natarajan, IAS Gujarat Gas Limited Director Gujarat Alkalies and Chemicals Limited Director Gujarat Narmada Valley Fertilizers & Chemicals Limited Managing Director Gujarat State Fertilizers & Chemicals Limited Director 4 Shri Milind Torawane, IAS Gujarat Gas Limited Managing Director Petronet LNG Limited Director Gujarat State Petronet Limited Joint Managing Director 5 Shri Balwant Singh, Gujarat Gas Limited Independent Director IAS (Retd.) 6 Prof. Yogesh Singh Gujarat Gas Limited Independent Director 7 Shri Bhadresh Mehta Gujarat Gas Limited Independent Director Gujarat State Petronet Limited Independent Director Gujarat Narmada Valley Fertilizers & Chemicals Limited Independent Director 8 Dr. Rekha Jain PNB GILTS Limited Independent Director Gujarat Gas Limited Independent Director 34 2024-2025 th 13 ANNUAL REPORT Sr. No. Date of Board Meeting th 1 6 May, 2024 th 2 6 August, 2024 th 3 30 August, 2024 th 4 6 November, 2024 th 5 5 February, 2025 th 6 17 March, 2025
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GUJARAT GAS LIMITED Mr. Sandeep Dave, Company Secretary acts as the Secretary of the Audit Committee. Shri Milind Torawane, IAS is an Executive Director and remaining all the members of the Committee are Non-executive Directors. Shri Balwant Singh, IAS (Retd.), Prof. Yogesh Singh, Shri Bhadresh Mehta and Dr. Rekha Jain are Independent Directors. All the members of the Committee are qualified professionals and have accounting or related financial management expertise. The quorum of the Committee is two (2) members, with presence of at least 2 Independent Directors. Terms of reference / scope of Audit Committee is in line with the provisions of section 177 of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Further, the Audit Committee acts in accordance with the terms of reference, as specified in writing by the Board, which inter-alia, includes: (1) Oversight of the Company’s financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible; (2) Recommendation for appointment, remuneration and terms of appointment of auditors of the Company; (3) Approval of payment to statutory auditors for any other services rendered by the statutory auditors; 35 Sr. No. Name Designation 1 Shri Balwant Singh, IAS (Retd.) Chairman 2 Dr. T Natarajan, IAS Member 3 Shri Bhadresh Mehta Member 4 Prof. Yogesh Singh Member 5 Dr. Rekha Jain Member 6 Shri Milind Torawane, IAS, MD Member 2024-2025 th 13 ANNUAL REPORT st The details of attendance of Directors at the Board Meetings for Financial Year 2024-25 i.e. from 1 April, 2024 up to st 31 March, 2025 and at the last Annual General Meeting (AGM) is given below: Note: 1. None of the Directors are related inter se 2. No. of Shares held by Non-Executive & Executive Director: Nil 3. Weblink for familiarization programme: .https://www.gujaratgas.com/resources/downloads/details-of-familiarization-programme-25-04-2025.pdf Disclosure regarding appointment/ reappointment of Director(s) Information as required under Regulation 36 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is annexed to the Notice of the Annual General Meeting. 3. Audit Committee st The composition of the Audit Committee as on 31 March, 2025 is as follows: st 1. Shri Raj Kumar, IAS (Retd.) (up to 31 January, 2025) 4 4 No th 2. Shri Pankaj Joshi, IAS (w.e.f. 7 February, 2025) 1 1 NA th 3. Shri Jagdish Prasad Gupta, IAS (up to 6 August, 2024) 2 1 NA nd 4. Smt. Mamta Verma, IAS (up to 2 August, 2024) 1 1 NA th 5. Shri S J Haider, IAS (w.e.f. 13 August, 2024) 4 4 No th 6. Dr. T Natarajan, IAS (w.e.f. 11 September, 2024) 3 2 Yes 7. Shri Balwant Singh, IAS (Retd.) 6 6 Yes 8. Prof. Yogesh Singh 6 5 Yes 9. Shri Bhadresh Mehta 6 6 Yes 10. Dr. Rekha Jain 6 5 Yes 11. Shri Milind Torawane, IAS, MD 6 6 Yes Name of the Directors Number of Board Meetings held while holding office Number of Board meetings attended while holding office Attendance at the last AGM held on th 26 September, 2024 Sr. No.
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GUJARAT GAS LIMITED (4) Reviewing, with the management, the annual financial statements and auditor's report thereon before submission to the Board for approval, with particular reference to: (a) matters required to be included in the director’s responsibility statement to be included in the Board’s Report in terms of clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013; (b) changes, if any, in accounting policies and practices and reasons for the same; (c) major accounting entries involving estimates based on the exercise of judgment by management; (d) Significant adjustments made in the financial statements arising out of audit findings; (e) compliance with listing and other legal requirements relating to financial statements; (f) disclosure of any related party transactions; (g) modified opinion(s) in the draft audit report; (5) Reviewing, with the management, the quarterly financial statements before submission to the Board for approval; (6) Reviewing, with the management, the statement of uses/application of funds raised through an issue (public issue, rights issue, preferential issue, etc.), the statement of funds utilized for purposes other than those stated in the offer document / prospectus / notice and the report submitted by the monitoring agency monitoring the utilisation of proceeds of a public or rights issue or qualified institutions placement, and making appropriate recommendations to the board to take up steps in this matter; (7) Reviewing and monitoring the auditor’s independence and performance, and effectiveness of audit process; (8) Approval or any subsequent modification of transactions of the Company with related parties; (9) Scrutiny of inter-corporate loans and investments; (10) Valuation of undertakings or assets of the Company, wherever it is necessary; (11) Evaluation of internal financial controls and risk management systems; (12) Reviewing, with the management, performance of statutory and internal auditors, adequacy of the internal control systems; (13) Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit; (14) Discussion with internal auditors of any significant findings and follow up there on; (15) Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board; (16) Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as post- audit discussion to ascertain any area of concern; (17) To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of non-payment of declared dividends) and creditors; (18) To review the functioning of the whistle blower mechanism; (19) Approval of appointment of Chief Financial Officer after assessing the qualifications, experience and background, etc. of the candidate; (20) Carrying out any other function as is mentioned in the terms of reference of the audit committee; (21) Reviewing the utilization of loans and/ or advances from/investment by the holding company in the subsidiary exceeding rupees 100 crore or 10% of the asset size of the subsidiary, whichever is lower including existing loans / advances / investments; (22) Consider and comment on rationale, cost-benefits and impact of schemes involving merger, demerger, amalgamation etc., on the Company and its shareholders; The audit committee shall mandatorily review the following information: (1) Management discussion and analysis of financial condition and results of operations; (2) Management letters / letters of internal control weaknesses issued by the statutory auditors; (3) Internal audit reports relating to internal control weaknesses; and (4) The appointment, removal and terms of remuneration of the chief internal auditor shall be subject to review by the audit committee. (5) Statement of deviations: (a)quarterly statement of deviation(s) including report of monitoring agency, if applicable, submitted to stock exchange(s) in terms of Regulation 32 (1) (b) annual statement of funds utilized for purposes other than those stated in the offer document/prospectus/notice in terms of Regulation 32(7). 36 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED During the year 2024-2025, the Audit Committee met 10 (Ten) times. Details of these Meetings are as follows: 37 4. Nomination and Remuneration Committee st The composition of the Nomination and Remuneration Committee (NRC) as on 31 March, 2025, is as follows: Sr. No. Name Designation 1 Shri Balwant Singh, IAS (Retd.) Chairman 2 Shri S. J. Haider, IAS Member 3 Dr. Rekha Jain Member 4 Shri Bhadresh Mehta Member 2024-2025 th 13 ANNUAL REPORT Sr. No. Date of Meeting th 1 4 May, 2024 th 2 6 May, 2024 th 3 5 August, 2024 th 4 6 August, 2024 th 5 30 August, 2024 th 6 5 November, 2024 th 7 6 November, 2024 th 8 4 February, 2025 th 9 5 February, 2025 th 10 17 March, 2025 The attendance of the Members at the Audit Committee Meetings during the year 2024-2025 was as follows: 1 Shri Balwant Singh, IAS (Retd.) 10 10 th 2 Shri J P Gupta, IAS (up to 6 August, 2024) 4 3 th 3 Dr. T Natarajan, IAS (w.e.f.11 September, 2024) 5 5 4 Shri Bhadresh Mehta 10 10 5 Prof. Yogesh Singh 10 9 6 Dr. Rekha Jain 10 10 7 Shri Milind Torawane, IAS 10 10 Name of the Audit Committee Members Number of Audit Committee Meetings held while holding the office Number of Audit Committee Meetings attended Sr. No. Mr. Sandeep Dave, Company Secretary acts as Secretary of the Nomination and Remuneration Committee. All the members of the Committee are Non-executive Directors. Shri Balwant Singh, IAS (Retd.), Dr. Rekha Jain and Shri Bhadresh Mehta are Independent Directors. All the members of the Committee are qualified professionals. The quorum of the Committee is two (2) members with presence of at least 1 Independent Director. The scope of Nomination and Remuneration Committee is as under: (1) Formulation of the criteria for determining qualifications, positive attributes and independence of a director and recommend to the Board of directors a policy relating to, the remuneration of the directors, key managerial personnel and other employees; (1A) For every appointment of an independent director, the Nomination and Remuneration Committee shall evaluate the balance of skills, knowledge and experience on the Board and on the basis of such evaluation, prepare a description of the role and capabilities required of an independent director. The person recommended to the Board for appointment as an independent director shall have the capabilities identified in such description. For the purpose of identifying suitable candidates, the Committee may: a. use the services of an external agencies, if required; b. consider candidates from a wide range of backgrounds, having due regard to diversity; and c. consider the time commitments of the candidates. (2) Formulation of criteria for evaluation of performance of independent directors and the Board of directors; (3) Devising a policy on diversity of board of directors; (4) Identifying persons who are qualified to become directors and who may be appointed in senior management in accordance with the criteria laid down and recommend to the board of directors their appointment and removal.
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GUJARAT GAS LIMITED (5) Whether to extend or continue the term of appointment of the independent director, on the basis of the report of performance evaluation of independent directors. (6) Recommend to the board, all remuneration, in whatever form, payable to senior management. The performance evaluation criteria of Independent Director is in accordance with the Nomination and Remuneration Policy. During the year 2024-2025, the Nomination and Remuneration Committee met 1 (One) time. Details of the Meeting are as follows: The Nomination and Remuneration Policy of the Company is framed pursuant to requirements of Section 178 of the Companies Act, 2013 read along with the applicable rules thereto and Regulation 19 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. 5. Board Evaluation Pursuant to the provisions of the Companies Act, 2013, the performance evaluation of individual Directors for Financial Year 2024-25 was carried out as per the terms and conditions of their appointment based on the various parameters. 6. Remuneration to Directors Apart from sitting fees no other remuneration is paid to any Directors. Sitting fees of ` 7500/- per meeting are paid to the Non-Executive Directors for attending meetings of the Board of Directors and its Committees. The sitting fees paid to Non-Executive Directors who are IAS Officers is deposited in to the treasury of the State Government. During the Financial Year 2024–25, sitting fees of ` 12,07,500/- had been paid to Directors including Non-Executive Directors who are IAS Officers for attending meeting of Board or its Committees. Out of which, sitting fees of ` 3,00,000/- paid to Non- Executive Directors who are IAS Officers had been deposited in Government treasury. 7. Stakeholders Relationship Committee, Business Responsibility & Sustainability Reporting (BRSR) Committee and Risk Management Committee (a) Stakeholders Relationship Committee (SRC) The Stakeholders Relationship Committee (SRC) has been constituted to approve share transfers, transmissions, consolidation, sub-division etc. and for redressal of complaints/requests received from the shareholders. The Company had received 145 letters of various types of requests, inquiries and complaints during the Financial Year 2024-25. All the complaints were resolved to the satisfaction of the shareholders. st The composition of Stakeholders Relationship Committee as on 31 March, 2025, is as under: 38 Sr. No. Name Designation 1 Shri Bhadresh Mehta Chairman 2 Shri S. J. Haider, IAS Member 3 Shri Balwant Singh, IAS (Retd.) Member 4 Dr. Rekha Jain Member 2024-2025 th 13 ANNUAL REPORT Sr. No. Date of Meeting th 1 4 May, 2024 The attendance of the Members at the Nomination and Remuneration Committee Meetings during the year 2024-2025 was as follows: 1 Shri Balwant Singh, IAS (Retd.) 1 1 nd 2 Smt. Mamta Verma, IAS (up to 2 August, 2024) 1 0 th 3 Shri S J Haider, IAS (w.e.f. 13 August, 2024) NA NA 4 Dr. Rekha Jain 1 1 5 Shri Bhadresh Mehta 1 1 Name of the Nomination and Remuneration Committee Members Number of Nomination and Remuneration Committee Meetings held while holding the office Number of Nomination and Remuneration Committee Meetings attended Sr. No.
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GUJARAT GAS LIMITED During the year 2024-2025, the Stakeholders Relationship Committee met 4 (Four) times. Details of the Meeting are as follows: Mr. Sandeep Dave, Company Secretary acts as the Secretary of the Committee. The quorum of the Committee is two (2) members. (b) Business Responsibility & Sustainability Reporting (BRSR) Committee The Board of Directors have constituted the Business Responsibility & Sustainability Reporting (BRSR) Committee for matters pertaining to the BRSR. st The Composition of BRSR Committee as on 31 March, 2025 is as follows: 39 2024-2025 th 13 ANNUAL REPORT Sr. No. Date of Meeting th 1 4 May, 2024 th 2 5 August, 2024 th 3 5 November, 2024 th 4 4 February, 2025 The attendance of the Members at the Stakeholders Relationship Committee Meetings during the year 2024-2025 was as follows: 1 Shri Bhadresh Mehta 4 4 nd 2 Smt. Mamta Verma, IAS (up to 2 August, 2024) 1 0 th 3 Shri S J Haider, IAS (w.e.f. 13 August, 2024) 2 2 4 Shri Balwant Singh, IAS (Retd.) 4 4 5 Dr. Rekha Jain 4 4 Name of the Stakeholders Relationship Committee Members Number of Stakeholders Relationship Committee Meetings held while holding the office Number of Stakeholders Relationship Committee Meetings attended Sr. No. Sr. No. Name Designation 1 Shri Balwant Singh, IAS (Retd.) Chairman 2 Shri S. J. Haider, IAS Member 3 Shri Bhadresh Mehta Member 4 Prof. Yogesh Singh Member Mr. Sandeep Dave, Company Secretary acts as the Secretary of the Committee. The quorum of the Committee is two (2) members. (c) Risk Management Committee (RMC) st The composition of Risk Management Committee as on 31 March, 2025, is as under: Sr. No. Name Designation 1 Dr. T Natarajan, IAS Chairman 2 Shri Bhadresh Mehta Member 3 Dr. Rekha Jain Member 4 Shri Milind Torawane, IAS, MD Member 5 Shri Rajesh Sivadasan, CFO Member The Risk Management Committee has been constituted with below mentioned scope of work: (1) To formulate a detailed Risk Management Policy which shall include: (a) A framework for identification of internal and external risks specifically faced by the Company, in particular including financial, operational, sectoral, sustainability (particularly, ESG related risks), information, cyber security risks or any other risk as may be determined by the Committee. (b) Measures for risk mitigation including systems and processes for internal control of identified risks. (c) Business Continuity Plan. (2) To ensure that appropriate methodology, processes and systems are in place to monitor and evaluate risks associated with the business of the Company; (3) To monitor and oversee implementation of the Risk Management Policy, including evaluating the adequacy of risk management systems;
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GUJARAT GAS LIMITED 40 Sr. No. Date of AGM Time of AGM Venue (Deemed) Special Resolutions th 1 *26 September, 2024 03:00 PM Gujarat Gas CNG Station, Sector 5/C, Gandhinagar – 382006, Gujarat. None th 2 *29 September, 2023 03:00 PM Gujarat Gas CNG Station, Sector 5/C, Gandhinagar – 382006, Gujarat. None th 3 *29 August, 2022 11:30 AM Gujarat Gas CNG Station, Sector 5/C, Gandhinagar – 382006, Gujarat. None * AGM held through electronic platform 2024-2025 th 13 ANNUAL REPORT (4) To periodically review the Risk Management Policy, at least once in two years, including by considering the changing industry dynamics and evolving complexity; (5) To keep the Board of Directors informed about the nature and content of its discussions, recommendations and actions to be taken; (6) The appointment, removal and terms of remuneration of the Chief Risk Officer shall be subject to review by the Risk Management Committee. During the year 2024-2025, the Risk Management Committee met 4 (Four) times. Details of the Meetings are as follows: Sr. No. Date of Meeting th 1 4 May, 2024 th 2 5 August, 2024 th 3 5 November, 2024 th 4 4 February, 2025 The attendance of the Members at the Risk Management Committee Meetings during the year 2024 - 2025 was as follows: th 1 Shri J P Gupta, IAS (up to 6 August, 2024) 2 2 th 2 Dr. T Natarajan, IAS (w.e.f. 11 September, 2024) 2 2 3 Shri Bhadresh Mehta 4 4 4 Dr. Rekha Jain 4 4 5 Shri Milind Torawane, IAS, MD 4 4 th 6 Shri Rajesh Sivadasan, CFO (w.e.f. 6 May, 2024) 3 3 Name of the Risk Management Committee Members Number of Risk Management Committee Meetings held while holding the office Number of Risk Management Committee Meetings attended Sr. No. Mr. Sandeep Dave, Company Secretary acts as the Secretary of the Committee. The quorum of the Committee is two (2) members. 8. Particulars and Changes in Senior Management: st Particulars of Senior Management of the Company as on 31 March, 2025 are as under: Sr. No. Name Designation 1 Dr. V K Joshi Executive Director 2 Shri Yogiraj Navathe Executive Vice President 3 Shri Sandeep Dave General Manager 4 Shri Devendra Agarwal General Manager 5 Shri Dipen Chauhan Sr. Vice President 6 Shri Prakash Chandra Agrawal Vice President 7 Shri Rajesh Sivadasan Chief Financial Officer* *Appointment w.e.f. 06/05/2024 9. General Body Meetings: Schedule of the last three Annual General Meetings of the Company is presented below:
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GUJARAT GAS LIMITED 10. Postal Ballot Details of Special Resolutions passed through Postal Ballot during the Financial Year 2024–25, details of Voting Pattern and Procedure for Postal Ballot: During the year, no Special Resolution was passed through Postal Ballot. • Whether any Special Resolution is proposed to be conducted through Postal Ballot: Currently, there is no proposal to pass any Special Resolution through Postal Ballot. Special Resolutions by way of Postal Ballot, if required to be passed in the future, the same shall be passed in compliance of provisions of the Companies Act, 2013, Listing Regulations or any other applicable laws. 11. Disclosures There are certain transactions with Related Parties which have been disclosed at the relevant place in the Notes to the Financial Statements. No such Related Party Transactions has potential conflict with the interests of the Company at large. There is no non-compliance on any capital market related matter for Financial Year 2024-25 on Stock Exchanges. Further, no penalty has been imposed either by SEBI or Stock Exchanges or any Statutory Authority on any capital market related matter during the last three years. 12. Means of Communication The Quarterly and Annual Financial Results of the Company are normally published in one National Newspaper (English) and one Regional Newspaper. These results can also be viewed from the Company's website . Further, the www.gujaratgas.com Quarterly and Annual Financial Results and other required filings of the Company can also be viewed on the website of National Stock Exchange of India Limited ( ) and BSE Limited ( ).www.nseindia.com www.bseindia.com Presentation made to Institutional Investors/ Analysts during the year are available at trailing link: https://www.gujaratgas.com/investors/investor-presentation/ 13. Code of Conduct Code of Conduct for Directors and Senior Management The Board of Directors of the Company has adopted a Code of Conduct and made it applicable to the Board Members and Senior Management of the Company, who have complied with the same during Financial Year 2024-25. The Code of Conduct has also been posted on the website of the Company. Code of Conduct for Regulating, Monitoring and Reporting of Trading by Designated Persons and immediate relatives of Designated Persons Pursuant to the requirements of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, the Company has adopted a Code of Conduct for Regulating, Monitoring and Reporting of Trading by Insiders and the Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information. The Company Secretary acts as the Compliance Officer. This Code of Conduct is applicable to the Designated Person(s) and the Immediate Relative(s) of such Designated Persons of the Company who can have access to Unpublished Price Sensitive Information relating to the Company. It is also informed to the shareholders that the Code of Conduct has been updated/amended in line with SEBI Regulations from time to time. The same is also available on the Company’s website .www.gujaratgas.com 14. Vigil Mechanism Pursuant to Section 177 (9) and (10) of the Companies Act, 2013 and the Regulation 22 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has a Vigil Mechanism to report to the management instances of unethical behavior, actual or suspected fraud or violation of the Code of Conduct of GGL. The said mechanism also provides for adequate safeguards against victimization of persons who use such mechanism and makes provision for direct access to the Chairman of the Audit Committee in appropriate or exceptional cases. The Management affirms that no personnel of the Company was denied access to the Audit Committee. The Company has provided the details of the said Policy on the website of the Company at https://www.gujaratgas.com/pdf/vigil-mechanism-wef-19th-may-2025.pdf 15. Policy on Materiality of Related Party Transactions and Dealing with Related Party Transactions As required under regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has formulated a Related Party Transactions Policy which has been disclosed on the website of the Company at: https://www.gujaratgas.com/resources/downloads/policy-on-materiality-of-related-party-transactions-wef-13th- december-2024.pdf 16. Appointment of Independent Directors The Company has issued formal letter of appointment to Independent Directors in the manner as provided in the Companies Act, 2013. The terms and conditions of appointment have also been disclosed on the website of the Company at https://www.gujaratgas.com/pdf/terms-and-conditions-of-appointment-of-independent-directors.pdf. The Board of Directors confirm that in the opinion of the board, the Independent Directors fulfill the conditions specified in SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and are independent of the management. 41 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED The aforementioned skills are available with the Directors of Gujarat Gas Limited. 17. Compliance The Certificate regarding compliance with the Corporate Governance Code for the Financial Year 2024-25 is annexed to this report. 18. Certificate from a Company Secretary in practice on Non-Disqualification of Directors from appointment as Directors of the Company: The Company has obtained a certificate from M/s K K Patel & Associates, Company Secretary in Practice that none of the Directors of Company are disqualified from being appointed/ continuing as Director of the Company. 19. General Shareholder Information th A. Schedule & Venue of the 13 Annual General Meeting of the Company: th Day & Date Thursday, 25 September, 2025 Time 3:00 P.M. Venue AGM through VC/OAVM B. Financial Year: st st The Financial Year of the Company starts on 1 April and ends on 31 March every Year. C. Record Date: th The Record Date for the purpose of payment of Dividend is Friday, 5 September, 2025. D. Dividend Payment: th th Dividend if approved by the shareholders at the 13 Annual General Meeting will be paid on or before 24 October, 2025. th E. Listing on Stock Exchanges and Stock Code (w.e.f. 15 September, 2015) Details of listing of equity shares of your Company are given below along with stock codes: Your Company's equity shares have been listed and trading on BSE Limited (BSE), National Stock Exchange of India Limited th (NSE), Ahmedabad Stock Exchange Limited (ASE) and Vadodara Stock Exchange (VSE) with effect from 15 September, 2015. The ISIN of Equity Shares is INE844O01030. Further, it is brought to the notice of Shareholders that SEBI vide its th Order No. WTM/RKA/MRD/144/2015, dated 9 November, 2015, had provided the exit to Vadodara Stock Exchange Limited and in view thereof, the Company is no longer listed on VSE. It is also brought to the notice of the Shareholders that th the Company had received a letter dated 11 January, 2017, from Ahmedabad Stock Exchange Limited, wherein it has been informed that Ahmedabad Stock Exchange Limited (ASEL) is undergoing its exit policy and because of that all the Companies listed with ASEL are shifted to NSE, BSE, or dissemination Board, NSE, so the Company is requested to do all the Compliance with relevant exchanges where the Company is further listed or with Dissemination Board, NSE and not with ASEL. As your Company is already listed with NSE and BSE, no additional compliance is required. Address of Stock Exchanges where Equity Shares of Gujarat Gas Limited are Listed: National Stock Exchange of India Limited GUJGASLTD BSE Limited GUJGAS-539336 National Stock Exchange of India Ltd, BSE Limited th Exchange Plaza, 5 Floor, Plot No. C/1, Phiroze Jeejeebhoy Towers G Block, Bandra Kurla Complex, Dalal Street Bandra (East), Mumbai-400 051 Mumbai-400001 42 List of core skills/ expertise/ competencies identified by the Board of Directors Skills and expertise relating to energy, petrochemicals, oil and gas industry Strategic thinking, advisory skills and Governance Policy development Embrace the shared vision of the Company honesty and integrity leader and team objective Directors who possess those skills 1. Shri Pankaj Joshi, IAS 2. Shri S. J. Haider, IAS 3. Dr. T Natarajan, IAS 4. Shri Balwant Singh, IAS (Retd.) 5. Prof. Yogesh Singh 6. Shri Bhadresh Mehta 7. Dr. Rekha Jain 8. Shri Milind Torawane, IAS A chart or a matrix setting out the skills/expertise/competence of the board of directors specifying the following: 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED In view of the aforesaid, it is also informed to the Shareholders that Ahmedabad Stock Exchange Limited has not charged listing fees for FY 2017-18, FY 2018-19, FY 2019-20, FY 2020-21, FY 2021-22, FY 2022-23, FY 2023-24, FY 2024-25 and FY 2025-26 and is not providing the trading platform to the shareholders of the Company and there is not valid contract/agreement with the Company, in view of which your Company is no longer listed with Ahmedabad Stock Exchange Limited. Listing fees have been paid for the financial year 2024-25 and 2025-26 as per the requirements with the respective Stock Exchanges. The Company has also entered into a tripartite agreement with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). The ISIN no. for Company's securities is INE844O01030. F. Distribution of shareholding st The Distribution of Shareholding as on 31 March, 2025 is given below: G. Your Company does not have any GDRs/ADRs/Warrants or any other convertible instruments. H. Geographical Areas Category (Amount) No. of Cases % of Cases Total Shares Amount % of Amount 1-5000 1,79,426 97.9309 1,64,72,176 3,29,44,352 2.3929 5001- 10000 2,864 1.5632 1,28,01,818 2,56,03,636 1.8597 10001- 20000 497 0.2713 37,30,719 74,61,438 0.5419 20001- 30000 122 0.0666 15,99,697 31,99,394 0.2324 30001- 40000 55 0.0300 9,85,684 19,71,368 0.1432 40001- 50000 40 0.0218 9,28,976 18,57,952 0.1349 50001- 100000 60 0.0327 20,87,582 41,75,164 0.3033 100001 & above 153 0.0835 64,97,83,473 1,29,95,66,946 94.3917 Total 1,83,217 100.00 68,83,90,125 1,37,67,80,250 100.00 43 2024-2025 th 13 ANNUAL REPORT Sr. No. Name of the Geographical Area 1 Surat- Bharuch- Ankleshwar 2 Nadiad 3 Navsari 4 Rajkot 5 Surendranagar 6 Jamnagar 7 Bhavnagar 8 Hazira 9 Kutch (West) 10 Valsad 11 Union Territory of Dadra & Nagar Haveli 12 Palghar District and Thane Rural 13 Amreli District 14 Dahej- Vagra Taluka 15 Ahmedabad District (excluding area already authorized) 16 Dahod District 17 Anand District (excluding area already authorized) 18 Panchmahal District 19 Narmada (Rajpipla) District 20 Sirsa, Fatehabad and Mansa (Punjab) Districts 21 Ujjain (Except area already authorized) District, Dewas (Except area already authorized) District and Indore (Except area already authorized) District 22 Jhabua, Banswara, Ratlam and Dungarpur Districts 23 Ferozepur, Faridkot and Sri Muktsar Sahib Districts 24 Hoshiarpur and Gurdaspur Districts 25 Jalore and Sirohi Districts 26 Amritsar District 27 Bhatinda District
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GUJARAT GAS LIMITED I. Fees paid to the Statutory Auditors: During the Financial Year 2024–25, the Statutory Auditors of the Company were paid fees for audit and providing other services as per below details: 44 Gujarat Gas Limited M/s Ashok Chhajed & 18,84,750 10,50,000 9,00,000 38,34,750 Associates (for 3 Quarters) Total (`) Name of the Company Fees paid Name of Auditor For Statutory Audit (`) For Quarterly Limited review (`) For providing other services (`) 2024-2025 th 13 ANNUAL REPORT J. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013 Your Company has always believed that appropriate standard should be maintained by the employees in their conduct and that there should be a safe, indiscriminatory and harassment-free (including free of sexual harassment) work environment for every individual working in the Company. The Company has in place a Policy on Prevention of Sexual Harassment at workplace as a part of its Human Resource Policy. It aims at prevention of harassment of employees and lays down the st guidelines for reporting and prevention of sexual harassment. During the year ended 31 March, 2025, no complaints has been received pertaining to sexual harassment. The Company has constituted internal complaint committee and has also complied with all applicable provisions of the said Act. 20. Details of Registrar & Share Transfer Agent KFin Technologies Limited, Selenium Tower B, Plot No. 31-32, Gachibowli, Financial District, Nanakramguda, Serilingampally Mandal, Hyderabad-500032. Toll free No.: 1800 309 4001. Further details can be accessed at https://www.gujaratgas.com/investors/page-details-of-registrar-and-transfer-agent-rta/ 21. Dematerialisation of Shares and Share Transfer System About 99.74% of the equity shares of the Company are in electronic form. Shri Milind Torawane, IAS, Managing Director of the Company is authorized to approve Transmission/Deletion of Name/Change of Name etc. As per Regulation 40(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended and read rd with SEBI Master Circular no. SEBI/HO/MIRSD/MIRSD-POD/P/CIR/2025/91 dated 23 June, 2025, all requests for transfer, transmission and transposition of securities, issue of duplicate share certificates, claim from unclaimed suspense account, renewal/ exchange of securities certificates etc. shall be processed only in dematerialized form. In view of this and to eliminate all risks associated with physical shares, members holding shares in Physical Form are requested to consider converting their holdings to Dematerialized Form. The Company had also placed information on its website intimating the investors about the provisions and has provided appropriate guidance on how to dematerialize their shares. st 22. Summary of Shareholding as on 31 March, 2025 23. Address of Correspondence Gujarat Gas Limited, Office No. 4 & 5, Ground Floor, IT Tower-2, Infocity, Gandhinagar-382009, District: Gandhinagar, Gujarat. Telephone Numbers: +91-79-26737400 and +91-79-26737500 Category No. of Holders Total Shares % to Equity PHYSICAL 386 17,65,950 0.2565 N S D L 58,722 62,06,96,017 90.1663 C D S L 1,24,109 6,59,28,158 9.5772 Total 1,83,217 68,83,90,125 100.00
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GUJARAT GAS LIMITED 25. Utilization of funds raised through preferential allotment or qualified institutions placement: No funds were raised through preferential allotment or qualified institutions placement as specified under Regulation 32 (7A). 26. Loans and advances: The Company has not given any loans and advances to firms/company in which directors are interested. 27. Compliance of Discretionary Requirements as specified in Part E of Schedule-II The financial Statements for the Financial Year 2024-25 are with unmodified audit opinion. 28. Disclosure on compliance with Corporate Governance Requirements specified in Listing Regulations: The Company has complied with the requirements of Part C (Corporate Governance Report) of sub-paras (2) to (10) of Schedule V of the Listing Regulations. The Company has complied with Corporate Governance Requirements specified in Regulation 17 to 27 and clauses (b) to (i) of sub-regulation (2) of Regulation 46 of the Listing Regulations and necessary disclosures thereof have been made in this Corporate Governance Report. 29. Non-Mandatory requirements of regulation 27 (1) & Part E of Schedule II of the Listing Regulations: The Company has complied with the following Non-Mandatory Requirements: i) The Company has a Non–Executive Chairman. ii) The Financial Statements for the Financial Year 2024-25 are with unmodified audit opinion. iii) The quarterly / half yearly results are not sent to the shareholders. However, the same are published in the newspapers and are also posted on the Company’s website. iv) The internal auditors report to the Audit Committee. 30. Demat Suspense Account st The Company has an operative suspense demat account, however as on 31 March, 2025 there are no equity shares in the said demat account. 45 2024-2025 th 13 ANNUAL REPORT 24. Details of Credit Rating for Bank loan facilities: Rating Agency Instrument Type Rating Type Rating/Outlook Date of rating st As on 31 March, 2025 document Indian Ratings and Research Pvt. Limited Indian Ratings and Research Pvt. Limited CARE Ratings Limited CRISIL Ratings Limited CRISIL Ratings Limited Bank Loan Facilities Non- Rating Action Bank Loan Facilities Bank Loan Facilities Bank Loan Facilities Long-term/ Short-term Long-term/ Short-term Long-term/ Short-term Long-term Long-term IND AAA/Stable/ IND A1+ (Reaffirmed on th 27 August 2024 -Withdrawal of CP Rating) Non- Rating Action / Credit Neutral CARE AAA; Stable/ CARE A1+ th (Reaffirmed on 9 September, 2024) CRISIL AAA/ Watch Developing CRISIL AAA/ Stable (Reaffirmed on th 9 December, 2024) 27-08-2024 06-09-2024 09-09-2024 10-09-2024 09-12-2024 For and on behalf of the Board of Directors th Date: 5 August, 2025 Pankaj Joshi, IAS Place : Gandhinagar Chairman
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GUJARAT GAS LIMITED ANNEXURE – 2 ANNUAL REPORT ON CSR ACTIVITIES 1. A brief outline of the Company’s CSR policy, including overview of projects or programs proposed to be undertaken and a reference to the web-link to the CSR policy and projects or programs: The Company has framed a CSR Policy in compliance with the provisions of section 135 of the Companies Act, 2013 and the same is placed on the website of the Company and the web link for the same is as under: CSR Policy https://www.gujaratgas.com/resources/downloads/corporate-social- responsibility-policy-wef-1st-june-2021.pdf CSR projects approved by the Board https://www.gujaratgas.com/projects-report-on-csr-activities/ Composition of CSR Committee https://www.gujaratgas.com/resources/downloads/composition-of- committees-of-directors-04-10-2024.pdf CSR Policy https://www.gujaratgas.com/resources/downloads/corporate-social- responsibility-policy-wef-1st-june-2021.pdf CSR projects approved by the Board https://www.gujaratgas.com/projects-report-on-csr-activities/ The thrust areas outlined in the Company’s CSR policy are Community Development, Promoting Education, Creating Awareness for Conservation of Energy, Environment Sustainability, Healthcare etc. The Board of Directors on the recommendation of CSR Committee has approved the CSR contribution of providing financial and other assistance for specific activities/projects to various Trusts/Implementing Partners. st 2. Composition of CSR Committee as on 31 March, 2025: Any two Directors shall form the Quorum of the Committee. 3. Provide web-link where Composition of CSR Committee, CSR Policy and CSR projects approved by the Board are disclosed on the website of the Company: The Company has framed a CSR Policy in compliance with the provisions of Section 135 of the Companies Act, 2013 and the same is placed on the website of the Company and the web link for the same is as under: 4. Provide the executive summary along with web-link(s) of Impact Assessment of CSR Projects carried out in pursuance of Sub-Rule (3) of Rule 8 of the Companies (Corporate Social responsibility Policy) Rules, 2014 if applicable – Impact Assessment of the CSR project for up-gradation of academic, training activity of tertiary care cardiac super-specialty teaching institute and for heart lung transplant programme implemented through U. N. Mehta Institute of Cardiology & Research Centre (UNMICRC) in Ahmedabad, Gujarat was undertaken by Indian Institute of Public Health (IIPH), Gandhinagar. The executive summary of Impact Assessment Report submitted by IIPH, Gandhinagar is attached at Annexure - 2A. The weblink to access Impact Assessment Report is https://www.gujaratgas.com/projects-report-on-csr-activities/. 5. (a) Average Net Profit of the Company as per Section 135(5): Average Net Profit of the Company for last three financial years: INR 1,773.11 Crores (b) Two percent of average net profit of the Company as per Section 135(5): INR 35,46,21,411 /- (c) Surplus arising out of the CSR Projects or Programs or Activities of the previous financial years: INR 79,54,316/- (d) Amount required to be set-off for the financial year, if any: INR. INR. 79,54,316/- (e) Total CSR Obligation for the Financial Year [5b-5d]: INR 34,66,67,095/- 6. (a) Amount spent on CSR Projects (both Ongoing and other than Ongoing Project): INR. 34,80,10,000/- (INR 28,40,00,000/- for ongoing projects and INR 6,40,10,000/- for other than ongoing projects) (b) Amount Spent in Administrative Overhead: NIL (c) Amount spent on Impact assessment, if applicable: INR. 5,84,100/- (d) Total amount spent for the financial year [6a+6b+6c]: INR. 34,85,94,100/- 46 Sr.No. Name of Director Designation/ Nature of Directorship 1 Shri Balwant Singh, IAS (Retd.) Chairman 4 4 th 2 Shri S J Haider, IAS (w.e.f. 13 August, 2024) Member 2 2 th 3 Dr. T Natarajan, IAS (w.e.f. 11 September, 2024) Member 2 2 4 Shri Bhadresh Mehta Member 4 4 5 Shri Milind Torawane, IAS Member 4 4 No of Meeting of CSR Committee held during the year No. of Meeting of CSR Committee attended during the year 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 7. Details of Unspent CSR Amount for the preceding three financial years: (f) Excess amount for set off, if any: 47 Total Amount spent for the financial year (in `) Amount Amount Unspent (in `) Total amount transferred to unspent CSR Account as per section 135(6) Date of Transfer Name of fund Amount transferred to any fund specified under Schedule VII as per second proviso to section 135(5) ` 34,85,94,100/- ` 28,40,00,000/- 30/04/2025 Not Applicable Not Applicable Not Applicable Amount Date of Transfer Sr.No. Particulars (i) Two percent of average net profit of the company as per section 135(5) ` 34,66,67,095/- Net Obligation refer 5(e)above (ii) Total amount spent for the financial year ` 34,85,94,100/- (iii) Excess amount spent for the financial year[(ii)-(I)] ` 19,27,005/- (iv) Surplus arising out of the CSR projects or programs or activities of the previous Nil financial year, if any (v) Amount available for set off in succeeding financial years [(iii)+(iv)] ` 19,27,005/- Amount (in Rs.) Sr.No. 1 1 2021 - 2022 4,40,15,000/- 4,40,15,000/- 4,40,15,000/- - - - - 2 2022 - 2023 11,95,35,000/- 4,08,03,730/- 2,71,36,070 /- - - 1,36,67,660/- - 3 2023 - 2024 28,10,73,965/- 28,10,73,965/- 5,14,59,470/- - - 22,96,14,495/- - TOTAL 44,46,23,965/- 36,58,92,695/- 12,26,10,540/- - - 24,32,82,155/- - 8 Deficit, if any 7 Amount remaining to be spent in succeeding Financial year (in `) 6 Amount transferred to Fund specified under Schedule VII as per second proviso to Section 135(5), if any Amount (in `) Date of transfer 5 Amount spent in the Financial Year (in `) 4 Balance Amount in unspent CSR Account under Section 135(6) (in `) 3 Amount transferred to Unspent CSR Account under Section 135(6) (in `) 2 Preceding Financial Year. 8. Whether any capital assets have been created or captured or acquired through CSR amount spent in the financial year: Yes No If Yes, enter the number of Capital Assets created/ acquired NA 2024-2025 th 13 ANNUAL REPORT (e) CSR amount spent or unspent for the financial year: Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the Financial Year: 9. Specify the reason(s), if the company has failed to spend two percent of the net profit as per section 135(5): Not applicable as the company has transferred ` 28,40,00,000/- to unspent CSR Account as per section 135(6) for ongoing projects. Sr.No. (1) Milind Torawane, IAS Balwant Singh, IAS (Retd.) Managing Director Chairman, CSR Committee th Date: 5 August, 2025 Place: Gandhinagar Details of entity/ Authority/ beneficiary of the registered owner (6) Amount of CSR spent NameCSR Registration Number, if any Not Applicable Registered Address (5) Date of Creation (4)(3) Pin code of the property or assets (2) Short Particulars of the property to asset(s) [including complete address and location of the property] NIL
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GUJARAT GAS LIMITED ANNEXURE – 2A Executive Summary of Impact Assessment Report submitted by IIPH, Gandhinagar for the CSR project on up-gradation of academic, training activity of tertiary care cardiac super-specialty teaching institute and for heart lung transplant programme implemented through U. N. Mehta Institute of Cardiology & Research Centre (UNMICRC) in Ahmedabad. This report evaluates the significant impact of Corporate Social Responsibility (CSR) funding from Gujarat Gas Limited and other philanthropic contributions on the U.N. Mehta Institute of Cardiology & Research Centre (UNMICRC) in Ahmedabad, Gujarat. UNMICRC has undergone a substantial transformation, expanding its bed capacity from 450 to 1251, making it the largest single super-specialty cardiac hospital in India and one of the largest globally. This expansion includes a dedicated Paediatric Heart Hospital wing, enhancing its infrastructure and medical facilities. The institute's mission is to provide affordable or free cardiac care to all segments of society through government health schemes and subsidized treatments. The GGL CSR funding specifically facilitated the acquisition of advanced medical equipment and consumables, including Coronary Cutting Balloons, Intravascular Ultrasound (IVUS) Catheters, Transcatheter Aortic Heart Valves (TAVR/TAVI), PTCA Guidewires, Microcatheters, Excimer Laser Atherectomy Systems, Drug-Coated Balloons (DCB), and Portable Ultrasound Machines. The assessment, based on patient feedback, quantitative data, and staff interviews, reveals a largely positive impact. Patient satisfaction with medical services, particularly doctor and nursing care, was exceptionally high (above 90%, with some aspects reaching 98-100%). Patients recognized the positive impact of new equipment on their recovery and appreciated the subsidized or free treatment made possible by CSR. The expanded facilities led to significant increases in cardiac surgeries, Cath Lab Procedures, and Outpatient Cardiology Visits. Complex procedures like TAVI, almost non-existent before CSR support, became regular. Staff highlighted improved time efficiency, clinical benefits (especially for emergencies), and operational efficiency due to portable ultrasound machines. They also emphasized that CSR contribution for specialized consumables enabled complex angioplasty cases and TAVI procedures to be performed at zero out of pocket cost for economically weaker patients under schemes like Ayushman Bharat, a procedure that would otherwise cost ` 15-20 lakhs. The upgrades also enhanced training and skill development for medical staff and postgraduate students. Despite these successes, challenges remain, with demand often exceeding the supply of high cost technologies and a continuous need for funding for consumables, particularly for heart lung transplant medicines like immunosuppressants and antibiotics. Recommendations for future CSR efforts include sustained funding for critical medications, strategic investment in emerging high- cost technologies, ongoing staff training, performance dashboards for CSR-funded equipment, continued community outreach, and addressing operational bottlenecks related to ease of access and timeliness of services. This collaborative model between the institute and corporate philanthropy is crucial for addressing India's growing burden of heart disease. 48 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED ANNEXURE - 3 SECRETARIAL AUDIT REPORT st For the Financial Year ended 31 March, 2025 [Pursuant to section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014] To, The Members GUJARAT GAS LIMITED (CIN: L40200GJ2012SGC069118) Gujarat Gas CNG Station, Sector 5/C, Gandhinagar -382006 (Gujarat) We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Gujarat Gas Limited (hereinafter called “the Company”). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the Corporate Conducts/ Statutory Compliances and expressing our opinion thereon. Based on our verification of the company’s books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, we hereby report that in our opinion, the Company has during the audit period covering the Financial Year ended on st 31 March, 2025 complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter: We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the st Financial Year ended on 31 March, 2025 according to the provisions of: (i) The Companies Act, 2013 (the Act) and the rules made thereunder; (ii) The Securities Contracts (Regulation) Act, 1956 ['SCRA'] and the rules made there under; (iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed there-under; (iv) The Foreign Exchange Management Act, 1999, the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings; (v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 ('SEBI Act') to the extent applicable to the company: - a) The Securities and Exchange Board of India [Substantial Acquisition of Shares and Takeovers] Regulations, 2011; b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015; c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018; d) The Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equities) Regulations, 2021; e) The Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021; f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client; g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021; h) The Securities and Exchange Board of India (Buyback of securities) Regulation, 2018; We have also examined compliance with the applicable clauses of the following: I. Secretarial Standards issued by the Institute of Company Secretaries of India. II. The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. We hereby report that during the period under review, the Company has complied with the applicable provisions of the Act, Rules, Regulations, Guidelines, Standards etc. mentioned above. (vi) We further report that having regard to the compliance system prevailing in the Company and on examination of the relevant documents and records in pursuance thereof, on test-check basis, the Company has complied with the following laws applicable specifically to the Company: a) The Petroleum and Natural Gas Regulatory Board Act, 2006 b) The Petroleum Act, 1934 c) The Explosives Act, 1884 d) The Inflammable Substances Act, 1952 We further report that: 49 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED This report is to be read with our letter of even date which is annexed as “Annexure A” and forms an integral part of this report. 50 For, K K PATEL & ASSOCIATES Company Secretaries FRN: S2004GJ071900 PR Certificate No.: 1636/2021 Kiran Kumar Patel th Date: 19 May, 2025 C P No.: 6352, FCS No.: 6384 Place: Gandhinagar UDIN: F006384G000376105 2024-2025 th 13 ANNUAL REPORT The Board of Directors of the Company was duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review are carried out in compliance with the provisions of the law. Adequate notice was given to all directors to schedule the Board Meetings at-least seven days in advance, agenda and detailed notes on agenda were sent to all the directors and in case of shorter notice required compliance as per Companies Act, 2013 has been ensured and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting. Majority decision was carried out unanimously while the Dissenting Members’ views, if any are captured and recorded as part of the minutes. We further report that there are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines. We further report that during the audit period, the following material events/actions taken place which have major bearing on the affairs of the company in pursuance of the above referred laws, rules, regulations, guidelines, standards etc. Composite Scheme of Arrangement and Amalgamation: th The Board of Directors of the Company at its Meeting held on 30 August, 2024, approved the Composite Scheme of Arrangement and Amalgamation amongst the Gujarat State Petroleum Corporation Limited ("GSPC"/ "Transferor Company 1"), Gujarat State Petronet Limited ("GSPL"/ "Transferor Company 2"), GSPC Energy Limited ("GEL"/ "Transferor Company 3") (Transferor Company 1, Transferor Company 2 and Transferor Company 3, collectively referred to as the “Transferor Companies”), Gujarat Gas Limited ("GGL"/ "Transferee Company"/ "Demerged Company") and GSPL Transmission Limited ("GTL"/ "Resulting Company") and their respective shareholders (“Scheme”), on the terms and conditions as set out in the Scheme pursuant to the provisions of Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 and the rules made thereunder. The Board has recommended following share exchange ratios on Amalgamation: On Amalgamation of Transferor Company 1 with GGL: “10 (Ten) fully paid equity shares of INR 2/- (INR Two only) each of the Transferee Company for every 305 (Three Hundred and Five) fully paid equity shares of INR 1/- (INR One only) each held by the shareholders in the Transferor Company 1.” On Amalgamation of Transferor Company 2 with GGL: “10 (Ten) fully paid equity shares of INR 2/- (INR Two only) each of the Transferee Company for every 13 (Thirteen) fully paid equity shares of INR 10/- (INR Ten only) each held by the shareholders in the Transferor Company 2.” On Demerger of Gas Transmission Business Undertaking into GTL “1 (One) fully paid equity share of INR 10/- (INR Ten only) each of the Resulting Company for every 3 (Three) fully paid equity shares of INR 2/- (INR Two only) each held by the shareholders in the Demerged Company.” The Company has received the Observation Letters from Stock Exchanges viz. BSE Limited and The National Stock Exchange of India Limited conveying “No Objection” in terms of Regulation 37 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 to the proposed Scheme of Arrangement and Amalgamation. The Company has filed an Application before Ministry of Corporate Affairs for necessary directions. The Scheme is subject to approval from the Shareholders and other regulatory/governmental authorities.
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GUJARAT GAS LIMITED ANNEXURE - A To, The Members, GUJARAT GAS LIMITED (CIN: L40200GJ2012SGC069118) Gujarat Gas CNG Station, Sector 5/C, Gandhinagar - 382006 (Gujarat) Our Report of even date is to be read along with this letter. 1. Maintenance of secretarial records is the responsibility of the management of the Company. Our responsibility is to express an opinion on these secretarial records based on our audit. 2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the Secretarial records. The verification was done on the test basis to ensure that correct facts are reflected in secretarial records. We believe that the processes and practices, we followed provide reasonable basis for our opinion. 3. We have not verified the correctness and appropriateness of financial records and Books of Accounts and Cost records of the Company. 4. We have obtained the Management representation about the compliances of laws, rules and regulations and happening of events, secretarial records and other factual position which cannot be otherwise verified etc. where ever required or necessary. 5. The compliances of the provisions of Corporate and other applicable laws, rules, regulations, standards is the ‘Responsibility’ of Management. Our examination is limited to the verification of the procedures on test basis. 6. The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the management has conducted the affairs of the Company. 7. The Secretarial Audit was conducted in accordance with the auditing standards issued by the Institute of Company Secretaries of India and in a manner which evolved such examinations and verifications as considered necessary and adequate for the said purpose. 51 2024-2025 th 13 ANNUAL REPORT For, K K PATEL & ASSOCIATES Company Secretaries FRN: S2004GJ071900 PR Certificate No.: 1636/2021 th Date: 19 May, 2025 Kiran Kumar Patel Place: Gandhinagar C P No.: 6352, FCS No.: 6384
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GUJARAT GAS LIMITED ANNEXURE – 4 FORM No. AOC-2 (Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014) Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arm’s length transactions under third proviso thereto 1. Details of contracts or arrangements or transactions not at arm’s length basis: Name of the Related Party & Nature of Relationship Nature of Contracts/ Arrangements / transactions Duration of Contracts/ Arrangements / Transactions Salient terms of Contracts/ Arrangements /Transactions including value, if any Justification for entering into such Contracts/ Arrangements /Transactions Date of Approval by the Board Amount paid as advances, if any Date of passing Special Resolution -------------------N.A.-------------------- 2. Details of material contracts or arrangement or transactions at arm’s length basis for FY 2024-25: Name of the Related Party & Nature of Relationship Gujarat State Petroleum Purchase of Regular ` 10996.65 Crores # N A Corporation Limited – GSPC Natural Gas th Ultimate Holding Company 13 February, 2024 Gujarat State Financial Deposit - Regular ` 13431.77 Crores # & NA th Services Limited – GSFS Placed/ 5 February, Government Related Entity Renewed 2025 Deposit - Regular ` 12728.73 Crores # NA Withdrawn / Redeemed # Definition of Material Related Party Transactions (as disclosed in Policy on Materiality of Related Party Transactions and dealing with Related Party Transactions): "Material Related Party Transaction” - In accordance with Regulation 23 of the Listing Regulations, a transaction with a related party shall be considered material, if the transaction(s) to be entered into individually or taken together with previous transactions during a financial year, exceeds rupees one thousand crore or ten per cent of the annual consolidated turnover of the Company as per the last audited financial statements of the Company, whichever is lower or such other limit as may be specified in the applicable Regulation as amended from time to time. For and on behalf of the Board of Directors th Date: 19 May, 2025 Pankaj Joshi, IAS Place: Gandhinagar Chairman 52 Nature of Contracts / Arrangements / transactions Duration of Contracts / Arrangements / Transactions Salient terms of Contracts / Arrangements / Transactions including value, if any Date of Approval by the Board, if any Amount paid as advances, if any 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED ANNEXURE-5 AOC-1 Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures (Pursuant to Section 129(3) of the Companies Act, 2013) Part "A": Subsidiaries Not Applicable Part "B": Associates Name of Associates Guj Info Petro Limited 1. Latest audited Balance Sheet Date 31/03/2025 2. Shares of Associate held by the company on the year end (in numbers) 43,75,000 Amount of Investment in Associate 0.03 Extent of Holding % 49.94% 3. Description of how there is significant influence Through voting power 4. Reason why the associate is not consolidated NA 5. Networth attributable to Shareholding as per latest audited Balance Sheet As per Ind-AS-28 equity method is followed 6. Profit / (Loss) for the year i. Considered in Consolidation 4.44 ii. Not Considered in Consolidation - (` in crores) 53 For and on behalf of Board of Directors of Gujarat Gas Limited Pankaj Joshi, IAS Milind Torawane, IAS Balwant Singh, IAS (Retd.) Chairman Managing Director Director DIN - 01532892 DIN - 03632394 DIN- 00023872 Rajesh Sivadasan Sandeep Dave Chief Financial Officer Company Secretary th Date: 19 May, 2025 Place: Gandhinagar 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED ANNEXURE-6 (A) Conservation of Energy- (i) The steps taken or impact on conservation of energy; • GGL has upgraded 20 Daughter & Daughter Booster CNG stations into Online stations which will now be supplied gas through pipeline and therefore ultimately reducing 30 Mobile Cascade Vehicles & related fuel consumption, earlier required for transportation of gas from Mother CNG stations to these stations and also reducing electricity consumption to 4000 units per day ultimately leading to energy conservation. • Usage of LED light fixtures instead of CFL/MH type in Street lighting, Offices & COCO CNG Stations for all new installations & replacements • New LCNG station has been set up and commissioned at Nalasopara, Thane GA. The station has daily average CNG Sales of around 23000 Kg/Day, and therefore has helped to reduce CNG MCV transportation trips. Commissioning this LCNG station has reduced around 63,000 Kms per month of truck/trailer movement and fuel consumption to achieve this sales volume compared to CNG Booster Stations which would otherwise be fed by Boisar Mother CNG Station. • Use of LNG/LCNG as a product helps to reduce the electrical Power consumption compared to use of variable inlet CNG Compressor. Differential reduced power consumption is ~0.12 KWH/Kg, which results in energy saving of ~5,700 KWH/Day considering total sale of 48,000 Kg/Day at operating five LNG/LCNG Stations. • Instead of steel cascade cylinder (3000/4500WLC capacity), GGL is using light weight composite cylinder (Type-III) (8800WLC – 125 nos., 6600WLC – 228 nos.) during transport for higher volume of gas. Due to introduction of high volume MEGC cascade per station MCV vehicle requirement has reduced from 2.2 to 1.8 which is ultimately leading to reduction of fuel consumption, estimated number of vehicles reduction/redeployment by around 150+. • PNG customers which were away from network were being supplied gas through Decompression skid – Cascade model. Due to strategic pipeline expansion GGL was able to reach and connect these remote areas with pipeline leading to reduction of MCV movement by around 200 kms per day. • Optimise the power requirement and reduced contract demand at few CNG stations. (ii) The steps taken by the company for utilizing alternate sources of energy; • Gas engine driven compressors at CNG stations- 26 nos. • GGL through various outsourced agencies are running around 815 CNG Mobile Cascade Vehicle (MCV) for transporting CNG from Mother CNG stations to Daughter / Daughter booster CNG stations. All MCVs are now being run on CNG as fuel instead of Diesel. • Maximised usage of VRF (Variable Refrigerant Flow) & VRV (Variable Refrigerant Variant) & Invertor based AC systems instead of conventional DX (Direct Expansion) type for new offices. (iii) The capital investment on energy conservation equipment’s ` 11.76 Crore. (B) Technology Absorption- (i) the efforts made towards technology absorption: (ii) the benefits derived like product improvement, cost reduction, product development or import substitution: 1.0 Captive CNG Filling Unit: GGL has successfully commissioned first captive CNG filling unit in August-2024 at Gandhinagar, Gujarat. A Captive CNG filling Unit includes a small CNG Compressor with low flow rate and filling arrangement with all required safety measures. Captive CNG filling unit is best suitable for a specific fleet or group of vehicles typically within a single organisation like offices, residential complex, cab operators and other suitable place. Very useful for vehicle fleet that operates within a predictable refuelling pattern and schedule. This is more cost effective due to reduced overhead cost compared to public CNG stations. 2.0 Development of Home Refuelling Appliance (HRA) - CNG filling facility at customer’s door step Home Refuelling Appliance (HRA) is a self-reliant concept, internationally used to fill the CNG at customer’s doorstep from low pressure NG pipeline available at customer premises. As on today, no such appliance is readily available in India; and it is required to develop vendors for manufacturing such appliances. To develop new vendors, GGL has published an EOI for Design, Development, & manufacture, assembly and supply 10 Nos of Home CNG Refueling Appliances. GGL will facilitate selected vendor for development of this units. This units will be connected to low pressure network on PE line available at customer premise. HRA will enhance customer convenience in CNG refueling as well as utilize GGL’s existing infrastructure. 54 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 55 2024-2025 th 13 ANNUAL REPORT 3.0 Solar Group Captive Project: Solar energy is environmental friendly power generation and don’t produce greenhouse gases or emit carbon emissions during electricity generation. This makes them a much more environmentally friendly option than fossil fuels. While fossil fuels emit hundreds of kilograms of CO for each megawatt-hour (MWh) of energy production, solar 2 panels create far fewer emissions even during the production and transportation processes. As a result, tons of CO 2 emissions can be avoided each year through the use of solar energy. GGL has planned to install around 15 MW of Solar Group Captive project to use the generated electricity for the Company Owned CNG stations in phase #1. An open tender was published and we have received good response from the bidders. This project is expected to bring estimated reduction in Scope-2 CO emission by 2.1 lakh tons per year. 2 Over and above, cost of electricity due to this will be reduced by around 30%, hence OPEX too can be optimized. 4.0 Green Hydrogen Blending Pilot Project with focused Risk assessment & comprehensive testing: GGL along with M/s NTPC had commissioned India’s first Green H blending (5%) which was further increased to 8% 2 in PNG distribution network at Kawas, Hazira. This pilot project supplies blended gas to domestic & commercial connections of NTPC Township. The project is supporting to verify the feasibility assumptions and impact related to hydrogen blending such as safety, asset health/integrity, blending homogeneity, combustion and odorization etc. in PNG network. In FY 2024-25 GGL conducted assessments & tests on testing riser w.r.t. 15% H blending (without exposing the 2 customers to increased blending). The tests included Homogeneity Test of Blended gas, Burner behavior Test, Odor concentration Test etc. Results were satisfactory with no areas of concern. GGL also carried out Quantitative risk assessment (desktop study) for PNG pipeline network with upto 15% H blending to understand the risks involved due 2 to higher blending levels for which the results were found within ALARP (As Low As Reasonably Practicable) levels. Material testing were also done for various network assets (PE pipeline, fittings, GI piping and related fitting, burner, rubber components etc.) involving third party M/s Gujarat Energy Research & Management Institute to establish any deteriorating effects on network health due to blended hydrogen exposure. All test results were satisfactory and same was also presented to industry regulator. 5.0 Injection / Offtake of Compressed Bio-Gas into GGL PNG / CNG system: GGL has kick-started the operation of off-taking supply of Biogas from Bio-gas suppliers into GGL PNG/CNG system at three new locations - Indore (UDI GA), Gurdaspur (H&G GA), Hoshiarpur (H&G GA) in this Financial Year, taking the total tally of bio-gas off-take to seven. GGL and Bio-gas manufacturers together took Safety & quality requirement as the highest priority. Remote Gas Quality monitoring, odorization and automatic shut-off systems are the key things focused during these projects to ensure highest level of quality, safety & customer satisfaction while using Bio-gas. Since Bio gas is produced in the agricultural/food waste transformation process developed indigenously, this contributes to waste management and reduction of soil, air pollution & also provides boost to entrepreneurship, rural economy while supporting national commitment by reducing country’s dependency on imported fuel. GGL has signed 4 other agreements with Bio-gas producers to supply Bio-gas to GGL at other locations as well. 6.0 Smart Pre-paid meters for Domestic PNG customers: GGL has started use of smart pre-paid gas meters for domestic PNG consumers. This step aligns with the Company’s vision of modernizing its distribution network and enhancing customer service through digital empowerment. These meters are embedded with advanced technology that allows for real-time monitoring, remote disconnection / reconnection and seamless pre-paid billing. GGL’s technology absorption efforts included the empanelment of 13 vendors after a rigorous evaluation, enabling a robust vendor base for future deployments. Pilot installations of 500+ meters at GIFT City, Gandhinagar, demonstrated successful performance, customer satisfaction and system reliability. The benefits of this initiative are multifold. It ensures efficient revenue collection by eliminating billing delays, removes the need for manual meter reading, resulting in operational cost savings and greater billing accuracy, improves customer satisfaction through usage transparency and promotes conservation by making consumers more conscious of their consumption. Additionally, the centralized monitoring framework enables quick anomaly detection, enhancing system integrity. Looking ahead, GGL is poised to expand smart meter deployment to other areas as well.
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GUJARAT GAS LIMITED 56 7.0 Introduction of Ultrasonic Gas Meters for Industrial Customers In its pursuit of advanced metering solutions, GGL has initiated the adoption of Ultrasonic Gas Meters (USMs) for industrial consumers. These meters represent a shift from conventional mechanical meters to digital precision-based flow measurement, enhancing accuracy, reliability and real time diagnostics / data analytics. To ensure successful technology absorption, GGL has empaneled three qualified suppliers. These vendors have undergone a detailed technical qualification process, including performance benchmarking and adherence to regulatory standards. The core of USM technology lies in ultrasonic transit-time measurement, which provides high accuracy. The transition to USMs brings tangible advantages—enhanced measurement accuracy even under varying pressure and flow conditions reducing billing disputes, real-time data aids in operational decision-making and the reduced wear-and- tear due to absence of moving parts minimizes lifecycle costs. Future plans may include use for high-consumption customers. 8.0 Gas Detectors for above Ground and underground DRS: Prioritizing Safety with Smart Sensing As part of its commitment to operational safety and environmental compliance, GGL has implemented advanced gas detection systems for both underground and above Ground District Regulating Stations (DRS). The gas detectors enhances safety monitoring through use of cutting-edge sensor technology to continuously monitor gas concentrations in confined underground and open above-ground environments. In case of any leakage, the system triggers real-time alerts. This early leak detection minimizes product loss, environmental impact, service disruption and any potential incident enabling prompt intervention. Gas detectors were not being installed for underground DRS considering events of filling up of these underground chambers with rain water. However GGL has taken up this initiative of inviting suppliers for extensive field trials. The trials evaluated sensor durability including testing of gas detectors functionality in fully immersed condition in muddy water. Based on successful outcomes, two bidders were empanelled and contracts were awarded for supply, installation, testing and commissioning of gas detectors in underground DRS Chambers across GGL’s. GGL has around 500 Nos. of DRS installations, comprising both above ground and underground types. Installation of gas detectors at all DRS sites is currently in progress in line with recent PNGRB guidelines mandating efficient gas detection systems across the entire network. 9.0 Multi-layered Composite Piping: In Domestic PNG installation, across Gujarat Gas Limited operations, GI pipe (C-class) and threaded GI fittings are used right since inception of the CGD business. GGL has now introduced MLC (Multi-Layer Composite) Pipe and Brass fittings in DPNG installation after Gas Meter and inside house. MLC pipe is three-layer (PE-Al-PE) pipe with stress- designed inner layer and outer layer of Polyethylene (PE), and the intermediate layer of Aluminium. Both PE layers are permanently bonded to the Aluminium pipe layer by means of an adhesive layer. Brass fittings are used for installation of Meter, Appliance Valve etc. MLC piping assets advantages over GI piping in Domestic PNG installation, such as less no. of joints since pipe is bendable resulting in faster installation, cost efficient, light in weight hence easy to handle, lesser maintenance etc. Rate Contract has been awarded for supply of MLC Pipe & Fittings and materials are procured. Pilot project for 100 Nos. Domestic PNG Installations is in progress at Amritsar City. Full scale implementation may be taken up based on performance assessment of commissioned connections for 12 month period. 10.0 Introduction of Island Kitchen installation at Domestic Connection: In the Domestic kitchen with island platform, installation of GI Gas pipeline as per conventional way is not possible as kitchen platform is located in center of the kitchen room and GI pipeline mounted on one of the kitchen walls requires to be extended up to the appliance. Gujarat Gas Limited has proposed installation of SS tubing housed in UPVC conduit pipe, which will be installed in the grove underneath the floor tiles. Installation Philosophy, guideline with detail engineering design and MoC process was approved in July 2024 and same has been incorporated in all subsequent contracts for PNG Connections. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 57 11.0 Setting up LNG storage and regasification facility: th GGL has commissioned its 5 LNG Storage & regasification facility (small scale) for CNG Customers in Nalasopara, Thane GA. Liquefied Natural Gas (LNG) facilitates ease of storage and transportation of large quantity of Natural Gas in liquid form and reduces many roundtrips of CNG MCV trucks earlier used for supplying gas to this area. The average CNG Sales at this LCNG Station is average 23,000 KG/Day, which is highest CNG Forecourt Sale out of ~800+ GGL Operating CNG Stations. By commissioning this station average 63,000 Kms per month of truck/trailer movement reduced and corresponding fuel consumption to achieve this sales volume by CNG Booster Stations. 12.0 Setting up Virtual Pipeline Network: In absence of Natural Gas source point in proximity of the area. Natural Gas is transported using Mobile Cascade vehicle to remote locations with Virtual pipeline facility of two models: o Line pack model: MCV after catering to Daughter booster CNG Station, its residual gas is fed into steel pipeline laid to act as storage. This line pack at its downstream is connected to DRS to reduce the 40 bar pressure to medium 4 bar pressure which is supplied to customer through PE pipeline across various geographical areas Punjab, Madhya Pradesh & Haryana etc. o DCS model: Fully filled MCV with CNG pressure (240 bar) is reduced to medium pressure 4 bar through use of decompression skid with heater system for further supply to customer connections across various geographical areas such as Ahmedabad Rural, Thane, Surat, Kutch etc. 13.0 Remote operation of CNG compressors: Remotely operated CNG compressor will be operated by operator from remote control room. Introduction of this technology has helped to improve monitoring & control of overall CNG compressor operation and also reduced operation cost. Remote operation of CNG Compressor is already implemented in more than 200 CNG stations where electric motor driven compressors are installed. 14.0 Promote automation & digitalization: GGL has on-boarded a consultant for GGL Digital Transformation journey which aims to integrate innovative digital solution and help GGL in the upgradation/replacement of existing systems and implementation of new digital systems/technology in line with industry best practices to ensure a futuristic competitive edge. This initiative will focus on process automation, data digitalization, enhance communication and capacity building. The consultant has studied in depth all existing process and automation requirements and a plan has been prepared for phase manner Technology upgradation/Process Automation implementation GGL is moving towards upgrading of GGL ERP system in order to modernize and streamline GGL ERP system, enabling it to leverage advanced technologies for improved efficiency and business agility. Upgrading also ensures continued support and access to the latest features and functionalities. Efforts put in FY 2024-25 include Data Volume Analysis for ECC Production System, SAP S/4 HANA Sizing in Mock System, Study of existing Non SAP application, Information gathering of existing SAP modules and data size, Compilation of future process automation requirement, Landscape and data growth details collection for SAP S/4 HANA BOM finalization. Other digitization initiative taken to increase efficiency of employees, improve customer experience, transparency, minimize revenue loss. Following initiatives for initiated or delivered: • QR based Attendance system implemented for GGL and contract employees which has eliminate the Biometric device dependencies and ease the attendance data collection form new offices. This has also helped to GGL for online tracking of contractor employee attendance. • Online PMS system with quarterly & yearly employee performance assessment. • SPOT Bill application with additional feature of OCR based meter reading. • Digitalize the process for empanelment of vendors for Contracts & Procurement department. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 58 15.0 GGL part in Government technological initiatives such as Gati-Shakti: PM Gati Shakti – NMP-Portal (National Master Plan)- This portal is for Multi-modal Connectivity, essentially a digital platform to bring 16 Ministries including Railways and Roadways together for integrated planning and coordinated implementation of infrastructure connectivity projects. GGL has already associated with Ministry of Petroleum and Natural Gas (MoPNG) and Bhaskaracharya National Institute for Space Applications and Geo-informatics (BISAG-N) for updating all the relevant infrastructure data (Natural Gas Pipeline – Transmission, Distribution, City Gas Station (CGS), CNG stations, Regulator stations) in the centralized Gati-Shakti portal for seamless access and permission approval process for different infrastructure related projects/activities through single window. All GGL related data & information has been uploaded successfully and are now available for all Gati Shakti portal users. PM Gati Shakti – Gujarat Portal- This portal is for Multi-modal Connectivity, essentially a digital platform to bring all Gujarat Government Ministries together. In association with EPD and BISAG-N, all GGL infrastructure data has been uploaded on portal. GGL is using Gati-Shakti Gujarat portal for application of all RoU/RoW related permissions which are currently integrated on the said portal. The timeline of obtaining approvals from various authorities have been optimised through Gati-Shakti portal resulting in simplified project planning. Additionally GGL has also approved the integration of Investor Facilitation Portal (IFP) where any private/external investor can view & apply for customized list of approvals required for setting up a business in Gujarat State. 16.0 GGL adoption of Call Before You Dig App: Department of Telecommunications (DoT), Government of India developed a Mobile Application named “Call Before U Dig”, which provides interface for the digging agency to enquire/know about the existing underground assets and to alert/inform owners of existing utility assets about upcoming digging activity. Various agencies do digging activity to lay their infrastructure during which the diggers often damage already existing infrastructure of other agencies resulting in Hazardous scenario, interruption of services & huge economic losses. To address the issue, this App provides an interface to digging agencies to enquire about availability of existing underground utilities & informs utility asset owners about proposed digging activities, so that both can coordinate to safeguard existing underlying utility assets like Gas Pipelines, Optical Fibre Cables, Water Pipelines, Electric Cables, etc. from third party damages. Single point of Contact were identified from each GA of GGL, who on daily basis coordinate for digging request raised by third party utilities or excavators. Also all GGL Project and O&M contractors have registered on the application and use it to generate digging request for effective coordination with other utilities and to protect damage of asset. (iii) in case of imported technology (imported during the last three years reckoned from the beginning of the financial year)- Nil (a) the details of technology imported; (b) the year of import; (c) whether the technology been fully absorbed; (d) if not fully absorbed, areas where absorption has not taken place, and the reasons thereof; and (iv) the expenditure incurred on Research and Development. Nil (C) Foreign Exchange Earnings and Outgo- The Company has incurred expenditure in Foreign Exchange to the extent of `1.42 Crores during Financial Year 2024 - 25 (Previous Financial Year 2023 - 24 ` 0.38 Crores) and the Foreign Exchange Earnings during Financial Year 2024 - 25 were ` Nil (Previous Financial Year 2023 - 24 ` Nil). 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED CORPORATE GOVERNANCE COMPLIANCE CERTIFICATE To, The Members GUJARAT GAS LIMITED (CIN: L40200GJ2012SGC069118) Gujarat Gas CNG Station, Sector 5/C, Gandhinagar - 382006 (Gujarat) We have examined all relevant records of Gujarat Gas Limited ("Company") for the purpose of certifying compliance of the conditions of Corporate Governance as prescribed under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 st (“the Listing Regulations”) for the financial year ended on 31 March, 2025. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of certification. The compliance of the conditions of Corporate Governance is the responsibility of the management. Our examination was limited to the procedure and implementation thereof. On the basis of our examination of the records produced, explanations and information furnished, we certify that the Company has complied with all the mandatory conditions of the Corporate Governance, as stipulated in Regulations 17 to 27 and clauses (b) to (i) of st Regulation 46 (2) and Paragraphs C, D and E of Schedule V of the Listing Regulations during the year ended on 31 March, 2025. This certificate is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the management has conducted the affairs of the Company. 59 2024-2025 th 13 ANNUAL REPORT For, K K PATEL & ASSOCIATES Company Secretaries FRN: S2004GJ071900 PR Certificate No.: 1636/2021 KIRAN KUMAR PATEL th Date: 5 August, 2025 C P No.: 6352, FCS No.: 6384 Place: Gandhinagar UDIN: F006384G000931814
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GUJARAT GAS LIMITED 60 2024-2025 th 13 ANNUAL REPORT CERTIFICATE OF COMPLIANCE WITH THE CODE OF CONDUCT To, The Shareholders, Gujarat Gas Limited Gujarat Gas Limited has in place a Code of Conduct (“the code”) for its Board of Directors and Senior Management Personnel. I report that the code has been complied with by the Board of Directors and Senior Management of the Company for FY 2024-25. For, Gujarat Gas Limited th Date: 30 April, 2025 Milind Torawane, IAS Place: Gandhinagar Managing Director
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GUJARAT GAS LIMITED CERTIFICATE OF NON DISQUALIFICATION OF DIRECTORS To, The Members GUJARAT GAS LIMITED (CIN: L40200GJ2012SGC069118) Gujarat Gas CNG Station, Sector 5/C, Gandhinagar - 382006 (Gujarat) We have examined the relevant registers, records, forms and returns and disclosures received from the directors of Gujarat Gas Limited (“Company”) produced before us by the Company for the purpose of issuing this certificate in accordance with Regulation 34(3) read with Clause 10(i) of Part C of Schedule V of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. In our opinion and to the best of our information and according to the verifications (including Directors Identification Number (DIN) status at MCA Portal viz. as considered necessary and explanations furnished to us by the Company and its officers, www.mca.gov.in st we hereby certify that none of the Directors on the Board of the Company as stated below for the financial year ended on 31 March, 2025 have been debarred or disqualified from being appointed or continuing as Directors of the Company by the Securities and Exchange Board of India/Ministry of Corporate Affairs or such other statutory authority. Ensuring the eligibility of appointment / continuity of every director on the Board is the responsibility of the management of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company. (Pursuant to Regulation 34(3) read with Clause 10(i) of Part C of Schedule V of The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015) 61 Sr. No. Name of Director DIN Date of appointment in the Company 1. Shri Balwant Singh, IAS (Retd.) 00023872 20/04/2022 2. Dr. Rekha Rani Jain 01586688 20/04/2022 3. Shri Milind Torawane, IAS 03632394 13/04/2023 4. Prof. Yogesh Singh 06600055 15/08/2021 5. Shri Bhadresh V. Mehta 02625115 15/08/2021 6. Shri Pankaj Joshi, IAS 01532892 07/02/2025 7. Shri Syed J Haider, IAS 02879522 13/08/2024 8. Dr. T. Natarajan, IAS 00396367 11/09/2024 9. Smt. Mamta Verma, IAS (up to 02/08/2024) 01854315 01/05/2023 10. Shri Jagdish Prasad Gupta, IAS (upto 06/08/2024) 01952821 09/08/2023 11. Shri Raj Kumar, IAS (Retd.) (up to 31/01/2025) 00294527 21/07/2022 2024-2025 th 13 ANNUAL REPORT For, K K PATEL & ASSOCIATES Company Secretaries FRN: S2004GJ071900 PR Certificate No.: 1636/2021 Kiran Kumar Patel th Date: 19 May, 2025 C P No.: 6352, FCS No.: 6384 Place: Gandhinagar UDIN: F006384G000376050
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GUJARAT GAS LIMITED ANNEXURE-7 Managing Director’s Statement On ESG Greetings shareholders, it is an honour for me to write to you and share Gujarat Gas Limited's (GGL) performance in FY 2024-25. With great pleasure I would like to inform you that Gujarat Gas Limited won the • “Asian Oil & Gas Awards 2024” for Environmental Social Governance (ESG) initiative of the year – India. The Award recognizes the most outstanding players in Asia's oil and gas sector. • “SKOCH ESG Award 2024” for its pilot project on Green H blending in CGD network. GGL was adjudged the winner for the 2 coveted honor second year in a row, after scoring by expert jury & peers and popular vote. GGL endeavors to play its part in helping communities to achieve the United Nations 17 Sustainable Development Goals (SDGs). GGL has incorporated its commitment to sustainability into its strategy, operational procedures, and decision-making. GGL is committed to optimal utilization of available natural and man-made resources and leading towards sustainable future. GGL aims to deliver affordable, reliable and cleaner energy by operating responsibly and performing with excellence while considering the Environmental, Social & Governance factors. GGL continues to strengthen these pillars while implementing changes throughout its value chain to meet the most pressing challenges including carbon emissions, climate change, environment protection & preservation and human rights. India is one of the fastest-growing economies of the World and is confident to continue on this path with aspirations to reach high middle-income status by the year 2047 and has pledged to goal of achieving “Net Zero” by 2070. The share of Natural Gas in India’s total energy mix is around 6% and the Ministry of Petroleum & Natural Gas has set a target to raise the share of Natural Gas in the energy mix to 15% in 2030. To align with the strategy of the Government of India, the Company intends to expand its scale of operations to increase the share of natural gas in total energy mix. GGL continues to hold the position amongst the largest CGD Companies in India. Your Company supplies Natural Gas to more than 22.6 lakh residential consumers, 15,682 commercial customer and provides clean energy solutions to over 4,430 industrial units through its wide spread Natural Gas pipeline network of over 42,000 kilometers. Your company operate 828 CNG stations catering cleaner alternate fuel to more than 4.3 lakh vehicles every day. The World in last few years has witnessed unpredictable situations which required special & continuous attention, which includes combating climate change, preserving natural resources, fighting epidemic & reducing carbon emissions. While adjusting to the new reality brought about by these complexities, which continue to raise larger questions about World peace and prosperity, today’s actions could very well shape the fate of this planet, its people and for the generations to come. The rapidly changing environment urges businesses to respond to the aspects discussed above. Business needs to be conducted in the best ethical & moral standards along with compliance with laws & regulations. GGL’s principal objective is to deliver lower carbon emissions, greater returns, and increase in shareholder’s value. Climate change is one of the greatest challenges that society is facing and the energy sector has a key role to play in helping the world transition to net zero. The loss of natural environment and climate change are interconnected and need to be tackled together, the Company is constantly transforming to mitigate this issue and may achieve the sustainable development objectives by rooting sustainability in thoughts, values, vision and business. GGL is ready to undertake adjustments required to align with the SDGs. Reducing carbon emissions requires partnership and collaboration, because no one Company, industry or nation – acting alone – can meet the World’s energy and climate goals. GGL has stepped up its efforts paving way to create a cleaner future by taking up the Pilot project with NTPC of blending green hydrogen gas with Natural Gas, which results in less carbon emissions. GGL in collaboration with Bio-gas producers has also started CBG blending into its PNG & CNG system contributing to waste management and pollution reduction while also providing boost to entrepreneurship, rural economy while moving towards a future of lesser dependence on imported fuel. GGL has also planned a project on ‘Solar Group Captive’ of 15 MW capacity, electrical energy generated will be utilized in our COCO CNG Stations bringing about reduction in GGL Scope emissions. GGL with its extensive experience & knowledge base is working closely with statutory and regulatory authorities in evolving comprehensive, safe, sustainable engineering standards and policies on emerging clean & green fuels. 62 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED GGL considers its social commitments towards all employees, customers, suppliers, contractors, and community as ethical duties. GGL’s journey toward developing a safety culture has been tremendously exciting. GGL’s safety commitment is extended to all its external stakeholders, including business partners, contractors and suppliers, in addition to employees and other internal stakeholders. GGL drives the business with utmost safety measures and in adherence with the Health Safety and Environment policy. Despite GGL’s huge scale of operations, it tries to mitigate all the concerns coming from all stakeholders in the best and earliest possible manner. Customers are kept at the center of business operations. Every necessary step is taken to ensure that customers get the best services without any disruptions. GGL remains committed to give back to the society through its various CSR activities which are carried out during the year in order to serve the community, especially the vulnerable & marginalized members of the community. GGL has policies in place to promote the ethical & transparent work culture and following the guidelines helps to meet all the obligations specified by the laws & regulations. GGL has a robust governance framework that ensures that all business practices are carried out in a responsible manner. GGL has taken up various automation related initiatives for different aspects of business & governance to bring in process efficiency, transparency, speed up business process, and provide quick access of data & status for both internal as well as external stakeholders enhancing governance systems at the organization. To make our Governance system stronger we have also initiated a Comprehensive Review of all Standard Operating Procedures (SOP) & Guidelines in terms of coverage, process digitization, monitoring mechanism. The updated SOPs will reflect best industry practices and aid in faster decision making in this ever evolving business dynamics, operational requirements. Along with this GGL has also initiated Digital Transformation initiative aiming to integrate innovative new digital solutions and help in the upgradation of existing systems and focusing on Process Automation, Data digitalization, Enhance communication and capacity Building. In order to become a benchmark for others, GGL continues to concentrate on ESG principles and will strive to achieve sustainability goals and commitments set forth for future. I would desire to take this opportunity to express my appreciation to everyone for their steadfast efforts and cooperation. I also want to thank all the stakeholders for continuing to have faith in us. I'm happy to share our Business Responsibility and Sustainability Report with you as we look forward to building a strong and sustainable business system. 63 2024-2025 th 13 ANNUAL REPORT st Date: 1 July, 2025 Milind Torawane, IAS Place: Gandhinagar Managing Director
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GUJARAT GAS LIMITED SECTION A: GENERAL DISCLOSURES I. Details of the listed entity II. Products/services BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT-FY 2024-25 64 1. Corporate Identity Number (CIN) of the Listed Entity 2. Name of the Listed Entity 3. Year of incorporation 4. Registered office address 5. Corporate address 6. E-mail 7. Telephone 8. Website 9. Financial year for which reporting is being done 10. Name of the Stock Exchange(s) where shares are listed 11. Paid-up Capital 12. Name and contact details (telephone, email address) of the person who may be contacted in case of any queries on the BRSR report 13. Reporting boundary - Are the disclosures under this report made on a standalone basis (i.e. only for the entity) or on a consolidated basis (i.e. for the entity and all the entities which form a part of its consolidated financial statements, taken together). 14 Name of assessment or assurance provider 15 Type of assessment or assurance obtained 16. Details of business activities (accounting for 90% of the turnover): 17. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover) Description of Main Activity Product/service Electricity, gas, steam and air conditioning supply Natural Gas Description of Business Activity NIC Code City Gas Distribution 3520- Electricity, Gas, Steam and Air Conditioning Supply; Manufacture & distribution of Gas % of Turnover of the entity % of total Turnover contributed 100 % 100 % Sr.No. Sr.No. 1 1 L40200GJ2012SGC069118 Gujarat Gas Limited 2012 Gujarat Gas CNG Station, Sector 5/C, Gandhinagar – 382006, Gujarat. Office No. 4 & 5, Gr. Floor, IT Tower-2, Infocity, District: Gandhinagar - 382009 Gujarat. contactbrsr@gujaratgas.com 079- 26737400, 079-26737500 www.gujaratgas.com 2024-25 BSE Limited (BSE) and National Stock Exchange of India Limited (NSE) ` 137.68 Crores Mr. Naveen Sharma Vice-President +079- 26737400 naveen.sharma@gujaratgas.com The disclosures under this report are made on a standalone basis. M/s CNK & Associates LLP Reasonable Assurance of Core KPIs as defined by SEBI 2024-2025 th 13 ANNUAL REPORT 18. Number of locations where plants and/or operations/offices of the entity are situated: *Includes all CNG stations (COCO, Franchisee, OMC) and other gas installations such as City Gate Station, Tap-off Station, Decompression Station, Virtual Pipeline Station etc. Gujarat Gas Limited (GGL) is India's largest City Gas Distribution (CGD) Company in terms of sales volume operating in 44 districts in 6 states of Gujarat, Maharashtra, Rajasthan, Haryana, Punjab & Madhya Pradesh and 1 Union Territory (UT) of Dadra and Nagar Haveli. Number of plants Number of offices TotalLocation National 906* 62 NA International NA NA NA III. Operations
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GUJARAT GAS LIMITED 65 19. Markets served by the entity: 20. Details as at the end of Financial Year: a. Number of locations a. Employees and workers (including differently abled) * The Company operates its business in the States of Gujarat, Maharashtra, Punjab, Madhya Pradesh, Rajasthan, Haryana and also in the UT of Dadra & Nagar Haveli and Daman and Diu. b. What is the contribution of exports as a percentage of the total turnover of the entity? Nil c. A brief on types of Customers – Gujarat Gas Limited is into the business of developing City Gas Distribution (CGD) Networks to supply Piped Natural Gas to the Industrial, Commercial & Domestic customers and Compressed Natural Gas to Automobiles (CNG run vehicles). – NumbersLocations National (No. of States) 7* International (No. of Countries) Nil IV. Employees Particulars Employees Workers 1. Permanent (D) 800 750 94% 50 6% 2. Other than Permanent (E) 58 53 91% 5 9% 3. Total employees (D + E) 858 803 94% 55 6% 4. Permanent (F) 95 91 96% 4 4% 5. Other than Permanent (G) 12508 6. Total workers (F + G) 12603 Total (A) Male No. (B) No. (C)% (B/A) Female % (C/A)Sr.No. No. of Customers served % sales volumeCustomer Category Domestic Customers 22.6 Lakhs+ 7.8% Commercial Customers 15,682 1.6% Industrial Customers 4430+ 58.9% CNG Customers approx. 4.35 Lakhs 31.7% Note: Total Number of Other than permanent workers disclosed in this report represents monthly average manpower deployed/hired by GGL contractors/service providers in FY 2024-25. Break-up available only for permanent workers, same is disclosed above Not reported as Other than permanent workers are hired by GGL Contractors on need basis for business operations 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 66 21. Participation/Inclusion/Representation of women 23. Names of holding / subsidiary / associate companies / joint ventures 24. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: (Yes/No) (ii) Turnover (in Rs.) - ` 17,184.97 Crores (FY 2024-25) st (iii) Net worth (in Rs.) - ` 8,548.60 Crores (as on 31 March 2025) The amount disbursed for CSR Projects / Impact Assessment Fees during FY 2024–25 is ` 6,45,94,100/-. In addition, ` 28,40,00,000/- is transferred to unspent CSR account, the total expenditure during FY 2024–25 is ` 34,85,94,100/- 22. Turnover rate for permanent employees and workers Board of Directors 8 1 12.5% Key Management Personnel 3 0 0% Permanent Employees 5.94% 0.13% 5.69% 5.75% 0.00% 4.74% 4.34% 8.00% 4.55% Permanent Workers 12.37% 2.20% 13.73% 8.37% 0.00% 7.05% 8.55% 0.00% 8.13% Total Turnover rate in FY 2024-25 Turnover rate in FY 2023-24 Turnover rate in FY 2022-23 No. (B) Female Female Female (A) Male Male Male No. and percentage of Females % (B / A) Total Total Total V. Holding, Subsidiary and Associate Companies (including joint ventures) VI. CSR Details Name of the holding / subsidiary / associate companies / joint ventures (A) 1 Gujarat State Petroleum Holding Company Nil No Corporation Limited 2 Gujarat State Petronet Limited Holding Company 54.17% No 3 Guj Info Petro Limited Associate Company 49.94% No Indicate whether holding/ Subsidiary/ Associate/ Joint Venture % of shares held by listed entity Does the entity indicated at column A, participate in the Business Responsibility initiatives of the listed entity? (Yes/No) Sr.No. Yes 2024-2025 th 13 ANNUAL REPORT b. Differently abled Employees and workers Particulars DIFFERENTLY ABLED EMPLOYEES DIFFERENTLY ABLED WORKERS 1. Permanent (D) 8 8 100% - - 2. Other than Permanent (E) 0 0 0 - - 3. Total differently abled employees (D + E) 8 8 100% - - 4. Permanent (F) 1 1 100% - - 5. Other than Permanent (G) 0 N ot reported as Other than permanent workers are hired by GGL Contractors on need basis for business operations 6. Total differently abled workers (F + G) 1 Break-up available only for permanent workers, same is disclosed above Total (A) Male No. (B) No. (C)% (B/A) Female % (C/A)Sr.No.
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GUJARAT GAS LIMITED 67 26. Overview of the entity’s material responsible business conduct issues – Indicate material responsible business conduct and sustainability issues pertaining to environmental and social matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate the risk along-with its financial implications, as per the following format GGL has identified most significant issues which are crucial for addressing the sustainable development goals in the line of business in which it operates. Material issues are identified by management based on their experience and the industry. VII. Transparency and Disclosures Compliances 25. Complaints/ Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct: The Company has a customer base of more than twenty two lakh domestic PNG customers. Resolution of customers complaints is an ongoing process, and it is an endeavor of the Company to attend / resolve complaints within defined timeline. Shareholders of the company can send their grievances to Company at or Registrar and Transfer Investors@Gujaratgas.com Agent (M/s Kfin Technologies Limited) at , einward.ris@kfintech,com The Company has well placed policies which outlines modes of reporting complaints or grievances for respective stakeholder groups. Link: https://www.gujaratgas.com/corporate-governance/brsrpolicies/ Stakeholder group from whom complaint is received FY 2024-25 Number of complaints filed during the year Grievance Redressal Mechanism in Place (Yes/No) (If Yes, then provide web-link for grievance redressal policy) FY 2023-24 Communities Yes, Refer Links - - - - - - Investors (other below - - - - - - than shareholders) Shareholders 145 0 - 65 0 - Employees and workers - - - - - - Customers 2,17,432 7,219 1,82,160 9,935 Value Chain Partners - - - - - - Other (please specify) NA Remarks Number of complaints pending resolution at close of the year Number of complaints filed during the year Number of complaints pending resolution at close of the year Remarks Complaints include issues like delay in gas connection, improper billing, wrong meter reading etc. Complaints include issues like delay in gas connection, improper billing, wrong meter reading etc. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 68 Material issue identified Occupational health, Safety and wellbeing GHG & Carbon Emissions 1 2 Indicate whether risk or opportunity (R/O) Risk Opportunity/ Risk Rationale for identifying the risk / opportunity Employees & workers are the most important resources at GGL. Owing to the nature of business staff health and safety is critical for the Company. It is important for the Company to provide a safe working environment to its employees and workers to retain and enhance employee & worker confidence and morale. O- Natural Gas combustion emits fewer pollutants and GHGs as compared to coal or other polluting fuel combustion. As a result, GGL has a significant opportunity as it expands operations to deliver Natural Gas, an environment friendly fuel. Government/ Authority regulations on non-usage of polluting fuel can also have a positive impact on business operations. R - Emission of Natural Gas directly into atmosphere from pipeline damage / equipment or as part of project & maintenance activities since Natural Gas is predominantly methane which is a GHG. In case of risk, approach to adapt or mitigate • GGL has a comprehensive Health safety policy and places a high priority on implementation of the same. • Robust OHS Management system with HSE specific SOPs & Guidelines to prevent Health & Safety related incidents • All critical activities are carried out after detailed risk assessment & mitigations are implemented in line with OHS risk registers. NA • Effective coordination with digging agencies to prevent network damages. • Prompt emergency response for quick isolation of the damaged section. • Isolation valves at regulator-defined distances to reduce emissions after isolation. • Strengthening Gas leak detection systems & process. • Effective preventive maintenance plan & adherence to reduce breakdown instances • Efficient commissioning SOP to reduce Natural Gas emissions, among other things. Financial implications of the risk or opportunity (Indicate positive or negative implications) Negative, As Loss of Life or Loss of Working days due to work-related illness and injury, which may impede the work or supply and will involve compensations and other financials impacts. Positive, increase in operations will lead to reduction of carbon emissions as compared to polluting fuels & increase in the overall profitability of the Company. Negative, Damages/failure of pipeline /equipment or planned release of gases as part of operation will lead to lost product (Natural Gas) into the atmosphere may lead to financial loss in terms of lost unbilled gas. Sr. No. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 69 Material issue identified Climate Change Asset & Product Safety 3 4 Indicate whether risk or opportunity (R/O) Risk Risk Rationale for identifying the risk / opportunity Climate changes can harm the Company by disrupting its infrastructure, installations and the distribution network. Government regulations and norms on climate and emissions can also have an impact on its business operations e.g. use of cleaner energy sources like hydrogen powered vehicles, EVs. Since, the Company operates a city gas distribution business, asset & product safety is of utmost importance. Critical shortcoming in asset & product safety can cause major or man-made disasters which may have consequential impact on the Company’s operations and could negatively impact the Company’s reputation. In case of risk, approach to adapt or mitigate GGL has been identifying and evaluating climate change risks that could potentially impact its operations and will plan to and take necessary mitigating and adapting steps to combat such climate change risk. The Company regularly carries out health and safety campaigns among customers, and communities to address the risk. Risk management is done for all GGL critical assets – pipelines, CGS, CNG Stations through safety engineering studies tools like below to ensure risks are under ALARP (As Low As Reasonably Practicable):- • Hazard Operability study (HAZOP) • Quantitative Risk Assessment (QRA) • Escape Muster Evacuation & Rescue Analysis (EMERA) • Hazardous Area Classification (HAC) The Company also complies with the international safety standards and local laws and regulations. Financial implications of the risk or opportunity (Indicate positive or negative implications) Climate change could negatively impact the operations of the Company, resulting in financial losses. Negative, Major Incidents / Disasters could result in significant revenue losses, increase in liabilities and also loss of reputation. Sr. No. Human Rights5 Risk Any infringement of human rights will result in consequences. Additionally, it may have an impact on GGL’s image and ability to attract talent. GGL has a Human Rights Policy and the Company is committed to protect the human rights of all its stakeholders Negative, Non- compliance with laws and regulations which could have a direct financial implication. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 70 Material issue identified Community Development Data Privacy and Security 6 7 Indicate whether risk or opportunity (R/O) Opportunity Risk Rationale for identifying the risk / opportunity GGL promotes self-reliance and independence within the communities it serves in order for them to develop sustainably. Through a dedicated team that is focused on determining the requirements of the community surrounding its operating locations, the Company has been conducting CSR projects. GGL is into city gas distribution business and distributes gas to domestic households, industries etc. A substantial amount of personal data is collected by the Company on a regular basis. In order to ensure the protection and security of the business-critical data & also personal data including that of customers being recorded, the Company takes necessary precautions. In case of risk, approach to adapt or mitigate NA By carrying out a cyber risk assessment, putting in place a business continuity plan for IT platforms, and adhering to the Information security & data privacy Policy, GGL ensures the privacy and security of data. Financial implications of the risk or opportunity (Indicate positive or negative implications) Positive. Supporting the community development activities helps GGL to create a meaningful impact for the surrounding communities. Negative, Cyber security and data privacy issues could have a negative impact on the day to day operations of the Company and financial losses. Sr. No. Energy Water & Waste 8 Risk and opportunity Improving energy efficiency throughout its business operations is a key component of GGL’s Energy Strategy. GGL is working on Increasing the percentage of renewable power for combatting emissions. GGL has taken the following steps to combat the risk: • Use of renewable sources of energy • Switching to Gas based vehicles from traditional fuels like petrol and diesel • Optimum utilization of resources • Timely & effective preventive maintenance to ensure efficient energy utilization • Reducing water consumption proportionately • Ensuring authorized disposal/treatment of hazardous waste such as Used Oil for re-refining Positive, Shifting towards renewable energy might reduce overall maintenance costs. It also contributes to a cleaner and greener environment. 2024-2025 th 13 ANNUAL REPORT Diversity, Inclusion & equal Opportunity 9 Opportunity Organization which promotes a work culture that supports diversity inclusion & equal opportunity makes them a better place to work GGL is committed to equal opportunities and the avoidance of discrimination on basis of caste, creed, gender, race, religion and disability Positive, Since this motivates employees and workers to continue contributing to company’s growth
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GUJARAT GAS LIMITED 71 SECTION B: MANAGEMENT AND PROCESS DISCLOSURES Disclosure Questions Policy and management processes a. Whether your entity’s policy/policies cover each principle and its core elements of the NGRBCs. (Yes/No) Whether the entity has translated the policy into procedures. (Yes / No) b. Has the policy been approved by the Board? (Yes/No) Do the enlisted policies extend to your value chain partners? (Yes/No) c. Web Link of the Policies, if available* Name of the national and international codes / certifications / labels / standards (e.g. Forest Stewardship Council, Fairtrade, Rainforest Alliance, Trustea) standards (e.g. SA 8000, OHSAS, ISO, BIS) adopted by your entity and mapped to each principle. Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes All following GGL Policies related to BRSR are uploaded on: h t t p s : / / w w w . g u j a r a t g a s . c o m / c o r p o r a t e - governance/brsrpolicies/ • Anti-Bribery and Anti-Corruption Policy • Whistle Blower Policy • Workplace Behavior Policy • Anti-harassment Policy • Human Rights Policy • Corporate Social Responsibility Policy • Grievance Redressal Policy for Customer & Community • Code of Conduct • Health Safety Environment (HSE) Policy • Sustainable Development Policy • Information Security Policy • Debarment Policy – Contractors & Vendors • ISO 9001:2015 Quality management System • ISO 14001:2015 Environmental Management System • ISO 45001:2018 Occupational Health & Safety Management System P1 P2 P3 P4 P5 P6 P7 P8 P9 1. 2. 3. 4. Specific commitments, goals and targets set by the entity with defined timelines, if any. • Plantation of Trees & Saplings Background: Plantation of trees and saplings aid in making environment better. It purifies the air, conserves water, helps in climate control, preserves soil and benefits the overall environment in several other ways. Goal: In FY 2025-26, GGL plans to carry out plantation of around 3500 sapling/trees. • Digitalization Transformation Initiative Background: This project aims to integrate innovative digital solution and help GGL in the upgradation / replacement of existing systems and implementation of new digital systems/technology in line with industry best practices to ensure a futuristic competitive edge. This initiative will focus on Process Automation, Data digitalization, Enhance communication and capacity Building. Goal: In FY 2025-26, GGL plans to carry out digital transformation across its business and operations with respect to following: • Integrating on all existing critical data points on Centralized Monitoring Platform 5. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 72 • Upgradation of automation infrastructure for comprehensive monitoring across all assets & locations and also for better analysis insights and effective decision making • Automation of GGL Business processes through Custom solutions in terms of middle-ware application • Solar Group Captive Project Background: Solar energy is a renewable energy and one of the cleanest & greenest form of energy which causes neither pollution nor causes any damage to environment and is also economically cheap. Establishing a Solar Group Captive project to use the generated electricity for the Company Owned CNG stations. Goal: In FY 2025-26, GGL has planned to install around 15 MW of Solar Group Captive project. • Green Hydrogen Blending with Natural Gas for CGD Background: Green H blending in Gas distribution network 2 for more than 2 years now, starting with 5% and growing up to 8%. This Pilot project results will support in finalization of way forward for H transportation through existing gas pipelines 2 and ultimately contributing to emission reduction. Goal: in FY 2025-26, Continue testing of material for long exposure to blended gas and further Increase the green hydrogen concentration in the Pilot project post approval from regulator. • Injection of Bio-Gas into PNG/CNG system: Background: GGL has existing agreements with Bio-Gas manufacturers for supplying Bio-gas to be injected into GGL PNG/CNG system. This initiative of Bio-gas injection into CGD is being driven by regulator and will help in waste management, air pollution control and also reduces dependency on imported fossil fuel since Bio Gas is produced as a side product in the agricultural/food waste transformation process developed indigenously. Goal: In FY 2025-26, based on Bio-gas manufacturers’ readiness GGL will start off-take from suppliers into GGL PNG/CNG system at multiple locations Jamnagar, Morbi, Surat in addition to existing offtakes. • Setting up new CNG stations: Background: GGL is influencing automobile users in its operational areas to use compressed natural gas as a clean automotive fuel through various campaigns. GGL has made it a priority to expand CNG transportation and dispensing infrastructure and facilities. CNG is a popular alternative fuel because of its clean burning characteristics and low carbon emission in air. Natural gas helps to reduce the environmental impact of vehicular emissions caused by use of other polluting fuels such as petrol and diesel. Goal: In FY 2025-26, GGL plans to set up 47 new CNG stations across GGL operational areas. GGL also plans to upgrade 64 existing CNG stations in terms of capacity enhancement, Daughter to Daughter Booster and Daughter / Daughter Booster to Online stations. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 73 • Setting up LNG storage and regasification facility for CNG/PNG supply Background: Liquefied Natural Gas (LNG) is a natural gas, predominantly methane (CH ) that has been liquefied for ease 4 of storage and transportation. This LNG is pressurized and re-gasified through ambient vaporizers for dispensing to customer vehicles as an automotive fuel and Piped natural gas to domestic, commercial and industrial customers on priority, in areas far away from gas supply point of supplier transmission pipeline. Goal: In FY 2025-26, GGL plans to set up 5 new facilities for LNG storage and regasification. • Social Commitments Background: GGL remains committed to give back to the society through its various CSR activities. These CSR activities are planned in order to serve the community specially the marginalized and vulnerable part of the society Goal: In FY 2025-26, CSR activities will be done as part GGL social responsibility in association with recognised institutions/NGO/Government: • Construction & development of Anganwadis including in aspirational districts of Gujarat • Mangalam Canteen - Create sustainable livelihood and income generation through promotion of traditional food products & culinary skill of women • Micro Enterprise Development - Encouraging rural women to start economical activities at small scale to change their socio-economic status by ensuring sustainable living • Custom Hiring Centers: Provide access to cost effective farm mechanization to the small & marginal women farmers at a reasonable rate and also to generate livelihood • Cattle Feed Unit: Increase income of women farmers and provision of quality feed for cattle through establishment of cattle feed unit • Millet based value chain: Increase income of women by developing value chain and processing unit for millet and other bakery related food items • Development of Proof of Concept of Optical Camera based Smart Navigation System – Health development project by IKDRC to develop a computer navigation system for assisting total knee joint arthroplasty • Continue supplying free gas supply to crematoriums 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 74 2024-2025 th 13 ANNUAL REPORT Disclosure Questions Performance of the entity against the specific commitments, goals and targets along-with reasons in case the same are not met. 1. Plantation of Trees & Saplings Achievement: In 2024-25, GGL planted more than 3800 saplings as part of World Environment Day/Week Celebration exceeding the targeted plantations. 2. Digitalization of processes for transparency in Governance, ease of operations & reduction in paper usage Achievement: In 2024-25, GGL along with GIPL have developed following automated module to increase efficiency of employees, improve customer experience, enhance agility, minimize revenue loss. • QR based Attendance system implemented for GGL and contract employees which has eliminate the Biometric device dependencies and ease the attendance data collection form new offices. This has also helped to GGL for online tracking of contractor employee attendance. • Online OMS system implemented with quarterly KPI review and yearly employee performance assessment. • SPOT Bill application implemented with additional feature like OCR based meter reading. • Digitalize the process for empanelment of Vendors for Contractors 3. Green Hydrogen Blending with Natural Gas for CGD Update: In 2024-25, GGL conducted assessments & tests on testing riser w.r.t. 15% H blending (without exposing the 2 customers to increased blending). The tests included Homogeneity Test of Blended gas, Burner behavior Test, Odor concentration Test etc. Results were satisfactory with no areas of concern. Quantitative risk assessment (desktop study) was done for PNG pipeline network with up to 15% H 2 blending to understand the risks involved due to higher blending levels for which the results were found within ALARP (As Low As Reasonably Practicable) levels. Material testing were also done for various network assets to establish any deteriorating effects on network health due to blended hydrogen exposure. All test results were satisfactory and same was also presented to industry regulator. 4. Injection of Bio-Gas into PNG/CNG system: Achievement: In 2024-25, GGL in collaboration with Bio-gas manufacturers, has kick-started the operation of off-taking supply of Biogas into GGL PNG/CNG system at three new locations, taking the total tally of bio-gas off-take to seven: • Indore (UDI GA): Started off-take from Bio-gas producer – M/s Indore Clean Energy Pvt Ltd through cascades. • Gurdaspur (H&G GA): Started off-take from Bio-gas producer – M/s MEPL through injecting CBG into GGL MP PE pipeline • Hoshiarpur (H&G GA): Started off-take from Bio-gas producer – M/s Reliance Chemicals and Materials Limited through cascades. 5. Setting up new CNG stations: Achievement: In FY 24-25, GGL has commissioned 17 new CNG stations and upgradation completed for 49 CNG stations 6. Setting up LNG storage and regasification facility for CNG/PNG supply: Achievement: In FY 24-25, GGL has commissioned 1 new LCNG station at Nalasopara in Thane GA. 6.
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GUJARAT GAS LIMITED 75 7. Investing in Renewable Energy Update: GGL published an open tender for to installation of around 15 MW of Solar Group Captive project to use the generated electricity for the Company Owned CNG stations and received good response from the bidders. Planning to close the tendering Process soon. 8. Relocation of Corporate Offices Achievement: GGL has completed shifting of all of three corporate offices at one single location in Gandhinagar which has saved both administrative cost and reduced vehicle emissions. 9. Social Commitments Achievements: • Industry responsive skill development training - GGL has imparted industry responsive skill development to needy and unemployed youth to around 500 candidates through M/s Aspire Disruptive Skill (ADS) Foundation. Around 68 candidates have been placed. • Construction completed for new building for Kanya Ashram Shala at Vapi. • Construction & Development of Anganwadis across Gujarat – Construction of Pilot Anganwadis completed at three different locations of Gujarat viz. Karai, Dahod and Dediayapada. Khat Mahurat was done in the august presence of Honourable Chief Minister of Gujarat in January 2025. Call out has been issued for 201 Anganwadis in 8 districts of Gujarat. • Mangalam Canteen - One canteen has started in Varahi village, Santalpur Taluka with footfall of approx. 30 people having lunch. Canteen location finalised in Subir, Nizar and Kukurmunda. These Canteens create sustainable livelihood and income generation through promotion of traditional food products & culinary skill of women • Micro Enterprise Development - Total women enterprises started till March 2025 are 171 along with 79 who have been selected after completion of training in Subir, Nazar and Kukurmunda. 200 Women have been provided material support in Garbada and Nandod • Custom Hiring Centres (CHCs) - Set up of 6 CHC Units in Subir, Nizar and Kukurmunda. In Kawant and Naswadi training sessions were organized by SFT at the block level for CHC committee members from both CHCs. The training aimed to build the capacities of committee members by enhancing their understanding of the objectives, functioning, and implementation processes under the CHC initiative. • Cattle Feed Unit - Machinery has been installed in Subir, Nizar and Kukurmunda for establishment of cattle feed unit. Order placed for procurement of machinery at Garbada and Ghoghamba • Millet Based Value Chain - 2 no. Millet based processing units(primary & value addition) set up in Naswadi, Kolamba • Development of Proof of Concept of Optical Camera based Smart Navigation System – Experimenting with two marker designs one with four smaller markers (M4) and another with two smaller markers (M2) and compared their performance to a single marker design, additionally different marker shapers other than squares can be designed by rearranging the smaller ArUco markers. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 76 2024-2025 th 13 ANNUAL REPORT Details of Review of NGRBCs by the Company:10. Subject for Review Performance against above policies and follow up action Frequency (Annually/ Half yearly/ Quarterly/ Any other – please specify) Compliance with statutory requirements of relevance to the principles, and, rectification of any non-compliances Yes Yes Yes Yes Yes Yes Yes Yes Yes Reviews are undertaken quarterly. Yes Yes Yes Yes Yes Yes Yes Yes Yes P1 P2 P3 P4 P5 P6 P7 P8 P9 Indicate whether review was undertaken by Director / Committee of the Board/ Any other Committee 11. Has the entity carried out independent assessment/ evaluation of the working of its policies by an external agency? (Yes/No). If yes, provide name of the agency. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated: No P1 P2 P3 P4 P5 P6 P7 P8 P9 12. P1 P2 P3 P4 P5 P6 P7 P8 P9Questions The entity does not consider the Principles material to its business (Yes/No) Not Applicable The entity is not at a stage where it is in a position to formulate and implement the policies on specified principles (Yes/No) The entity does not have the financial or/human and technical resources available for the task (Yes/No) It is planned to be done in the next financial year (Yes/No) Any other reason (please specify) Governance, leadership and oversight Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and achievements (listed entity has flexibility regarding the placement of this disclosure) The statement on sustainability related risks, goals, commitments and the Company’s contribution is available in Annexure-7 of the Board’s Report for the FY 2024-25. 7. Details of the highest authority responsible for implementation and oversight of the Business Responsibility policy (ies). The Board of Directors have constituted a Business Responsibility & Sustainability Reporting (BRSR) Committee for reviewing and recommending the Business Responsibility & Sustainability Report to the Board of Directors including oversight of policies. 8. Does the entity have a specified Committee of the Board/ Director responsible for decision making on sustainability related issues? (Yes / No). If yes, provide details. Business Responsibility & Sustainability Reporting (BRSR) Committee comprises of the following Board Members: 1. Shri Balwant Singh, IAS (Retd.)- Chairman 2. Shri S J Haider, IAS- Member 3. Shri Bhadresh Mehta- Member 4. Prof. Yogesh Singh- Member 9.
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GUJARAT GAS LIMITED 77 SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE PRINCIPLE 1: Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and Accountable. Essential Indicators The first principle of BRSR gives information about the governance structure of the organisation. It shows us a bird's-eye view of how the organization's policies are distributed, shared, explained, and put into practice in all of its operations and functions. GGL ensures that business and operations are conducted with integrity, accountability and transparency. The Company’s Code of Conduct and ethics strategy are the guiding principles for conducting and governing the business and reflect how we treat our stakeholders including employees, customers, communities, and the environment. Segment Board of Directors Key Managerial Personnel Employees other than BoD and KMPs Workers Penalty/ Fine Penalty/ Fine Settlement Compounding fee All principles Impact is Good governance & sustainability Policies & practices All principles Impact is Deeper understanding on the aspects of Business Responsibility, Sustainability, its integration with organization’s business decisions POSH, Managing Self, Employee Happiness, Workshop on the Development of Pipeline Infrastructure for Connectivity of CBG Plants to CGD Networks, IBC Suraksha Kavach – Annual Summit – cum – Workshop on Prevention, Detection & Control of HSE at Workplace 24 x 7, ESRI India User Conference 2024, ESRI India Developer Summit, Conference on Green Hydrogen, India HR Summit, NGV India Summit; Workshop on Compressed Bio-Gas, Health & Safety, Technical competency, Cyber Security Awareness, Gaseous Hydrocarbon Flow Measurement & Custody Transfer etc. Impact is enhanced employee awareness on matters of sustainability and also human rights Safety & Technical Competency Training; POSH Training Tehsildar Deputy Commissioner of State Tax Jurisdiction :PALGHAR : Maharashtra 4 4 96 3026 100% 100% 86% 99% Total number of training and awareness programmes held NGRBC Principle Name of the regulatory/ enforcement agencies/ judicial institutions Brief of the Case Amount (In INR) Has an appeal been preferred? (Yes/No) Topics / principles covered under the training and its impact %age of persons in respective category covered by the awareness programmes Percentage coverage by training and awareness programmes on any of the Principles during the financial year Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the entity or by directors / KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the financial year, in the following format (Note: the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website) - Monetary 1. 2. 2024-2025 th 13 ANNUAL REPORT - - 27000 No 231354 Yes Penalty against starting Construction activity pending land conversion approval for CGS Based on audit observation SCN issued on following: 1. GST to be recovered on the value of income appearing as provision. 2. 100% ITC not eligible against IMS supply, Only Prop. ITC eligible as PNG/CNG turnover is non-taxable. There were no compounding fees / settlement amount paid in proceedings (by the entity or by directors / KMPs) with regulators / law enforcement agencies / judicial institutions, in FY 2024-25.
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GUJARAT GAS LIMITED 78 Yes, the Company has an Anti-corruption and Anti-Bribery policy. Employees, workers, intermediaries, consultants, dealers, contractors, suppliers, etc. working for or acting on behalf of the Company are subject to Company's anti-corruption and anti- bribery policy. The Policy reflects the Company and its management’s commitment for maintaining highest ethical standards while undertaking open and fair business practices and culture, and implementing and enforcing effective systems to detect, counter and prevent bribery and other corrupt business practices. Refer link for anti-corruption and anti-bribery policy https://www.gujaratgas.com/corporate-governance/brsrpolicies/ Directors KMPs Employees Workers Number of complaints received in relation to issues of Conflict of Interest of the Directors Number of complaints received in relation to issues of Conflict of Interest of the KMPs There were no instances of any disciplinary action taken by any law enforcement agency for the charges of bribery/ corruption against Directors/ KMPs/employees/workers. The senior leadership upholds the highest level of integrity and instills the same in other levels of management. GGL has not received any complaints with respect to conflict of interest. Conflicts of interest can arise when an employee has a personal interest or is engaged in an activity that could impair their capacity to carry out tasks impartially, objectively, and successfully. The Company upholds highest standards of ethics and compliance in order to prevent any kind of conflict of interest, and we are vigilant in swiftly identifying and minimizing any such occurrences. FY 2024-25 FY 2024-25 Number Number Remarks Remarks Particulars Particulars FY 2023-24 FY 2023-24 Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a web-link to the policy. - Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement agency for the charges of bribery/ corruption Details of complaints with regard to conflict of interest: Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by regulators/ law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest. Not Applicable, as there were no instances of corruption or conflicts of interest. No corrective action was required to be taken on matters pertaining to fines / penalties / action taken by regulators / law enforcement agencies / judicial institutions. 4. 5. 6. 7. Based on audit observation SCN issued on following: 1. GST to be recovered on the value of income appearing as provision. 2. 100% ITC not eligible against IMS supply, Only Prop. ITC eligible as PNG/CNG turnover is non-taxable. Case Details Name of the regulatory / enforcement agencies / judicial institutions Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary or non-monetary action has been appealed 3. Number of days of accounts payables 19.88 FY 2024-25Particulars FY 2023-24 8. 18.82 2024-2025 th 13 ANNUAL REPORT Imprisonment Punishment There were no non-monetary penalties in proceedings (by the entity or by directors / KMPs) with regulators / law enforcement agencies / judicial institutions, in FY 2024-25. NGRBC Principle Name of the regulatory/ enforcement agencies/ judicial institutions Brief of the Case Has an appeal been preferred? (Yes/No) Non - Monetary Appellate authority being aggrieved with the order received from Dy, Commissioner of SGST for confirming demand Number of days of accounts payables ((Accounts payable *365) / Cost of goods/services procured) in the following format:
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GUJARAT GAS LIMITED 79 Open-ness of business9. Parameter Concentration of Purchases (Refer note 1) Metrics FY 2024-25 FY 2023-24 a. Purchases from trading houses as % of total purchases 1.32% 0.83% b. Number of trading houses where purchases are made from 1 1 c. Purchases from top 10 trading houses as % of Total purchases from trading houses 100% 100% Concentration of Sales (Refer note 2) a. Sales to dealers / distributors as % of total sales 22% 21% b. Number of dealers / distributors to whom sales are made 5 5 c. Sales to top 10 dealers/distributors as % of total sales to dealers / distributors 100% 100% Share of RPTs in (Refer note 3-6) a. Purchases (Purchases with related parties / Total purchases) 86.27% 89.84% b. Sales (Sales to related parties / Total Sales) 0.003% 0.003% c. Loans and advances (Loans & advances given to related parties / Total loans & advances) - - d. Investments (Investments in related parties / Total Investments made) 25.97% 25.96% Notes: 1. Concentration of Purchases include Trading House purchases considering Gas Purchases through Indian Gas Exchange Limited 2. Concentration of Sale includes details for CNG sales made to dealers / distributors (HPCL, BPCL, IOCL, Nayara energy, Reliance BP) as % of Total GGL sales of all segments 3. For reporting of purchases & sales of goods & services, those which are linked to the business of Natural Gas of GGL have been considered. 4. Advances given in the routine course of business have not been considered for reporting. 5. Investments do not include the deposits made to GSFS in routine course of business. 6. Investments in related party do not include the equity investment in GSPC LNG Ltd. (a government related entity for Gujarat Gas Limited). This is in accordance with exemption provided under Ind AS – 24 Related Party Disclosure and also in line with disclosure of Related Party Transactions as per annual accounts. Leadership Indicators 1. Awareness programmes conducted for value chain partners on any of the Principles during the financial year: Topics / principles covered under the training Total number of awareness programmes held %age of value chain partners covered (by value of business done with such partners) under the awareness programmes Contractor staff – 3025 Customers, general public & other utilities – 2732 Principle 3, 6 & 9 are covered under these programmes. Training / awareness topics for contractor staff – • Basic safety training • Technical competency trainings (CGD O&M training, Work at height, GI plumbing, Defensive driving, CNG filling, PE welder training etc.) • Fire-fighting training • First Aid training • Lifesaver compliance • PPE usage • Permit to Work system • Hazard identification and site-specific risk assessment • Emergency handling Natural Gas related safety awareness sessions for customers, villages along pipeline route, Societies, Schools, other utilities and public in general covering 29825 people Every new customer is provided awareness of safety aspects related to Natural Gas during commissioning/conversion activity. Contractor staff - 100% 100% new customer during commissioning/conversion. Provide details of concentration of purchases and sales with trading houses, dealers, and related parties along-with loans and advances & investments, with related parties, in the following format: 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 80 Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board? (Yes/No) If Yes, provide details of the same. Yes, the Company has Code of Conduct for the Board of Directors and Senior management personnel which provides clear guidelines for avoiding and disclosing an actual or potential conflict of interest with the Company. All Directors are required to disclose to the Board their concern / conflict of interest during their onboarding and any subsequent modifications have to be intimated timely. The Company receives an annual declaration from its Board of Directors and senior management personnel on the entities they are interested in, and ensures requisite approvals as required under the applicable laws are taken prior to entering into transactions with each entity. Link for Conflict of Interest/ Code of Conduct https://www.gujaratgas.com/pdf/ggl-code-of-conduct.pdf PRINCIPLE 2: Businesses should provide goods and services in a manner that is sustainable and safe Essential Indicators The Second Principle is primarily concerned with production and consumption of resources. It focuses on protecting natural resources by responsible consumption and creating those products which reduces negative impact to environment and society throughout its Lifecycle. GGL is a Company which is into the business of distribution of Natural Gas, As compared to other fuels it emits less carbon into the environment and has low impacts on the environment. GGL is willing to support local vendors, vulnerable and marginalized groups, and other supply chain partners who can help us to achieve our strategic objectives and long-term sustainable aspirations because doing so would mean aiding the support to the economy as a whole. GGL has Sustainable development policy in place to mitigate these issues and tenders general terms & conditions that require vendors to comply with all Health, Safety and Environment, human rights & all other applicable regulatory compliances. Nil Establishment of LNG/LCNG Station: th GGL has commissioned its 5 LNG Storage & regasification facility (small scale) at Nalasopara, Thane for PNG & CNG supply to customers. Liquefied Natural Gas (LNG) facilitates ease of storage and transportation of Natural Gas. Details of improvements in environmental and social impacts Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts of product and processes to total R&D and capex investments made by the entity, respectively. R&D Capex Nil 1.56% Nil 0.90% FY 2024-25 FY 2023-24 1. 2. 2024-2025 th 13 ANNUAL REPORT a. Does the entity have procedures in place for sustainable sourcing? (Yes/No) b. If yes, what percentage of inputs were sourced sustainably? GGL is a City Gas Distribution (CGD) Company which provides Natural Gas to its consumers. Natural Gas reduces approximately around 50% greenhouse gas (GHG) emissions compared to coal used in various industrial applications. CGD entity facilitates major transportation of gas through pipelines to various places, thereby replacing the carbon footprint generated by transporting liquid fuel/coal through roads/rails. GGL now operates all hired Mobile Cascade vehicles on CNG (Compressed Natural Gas) as a cleaner environment friendly fuel. They were previously being run on diesel. The Company has a process of procurement through E- tenders which has resulted in reduction in use of paper. GGL E- tenders have defined Scope of work and general terms and conditions that covers aspects of sustainable sourcing in terms of ethical conduct & environmental compliances by linking these material/service sourcing being compliant to GGL SOPs & Guidelines. GGL contractor sources materials from GGL approved Vendor list. These vendors who are part of GGL approved Vendor list go through a qualification assessment process by GGL appointed Third party. Criteria for assessment include ISO certification related to Environmental Management system, Quality Management system & Occupational Health & Safety Management System. Additionally, GGL encourages its partners to adhere to Safety and environmental standards like, ISO 14001 and ISO 45001. 2.
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GUJARAT GAS LIMITED 81 Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life, for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste. The Company is a City Gas Distribution (CGD) company, which is involved in distribution of gas. Owing to the nature of the product of the Company, the same cannot be reclaimed and hence the question of reusing, recycling and disposing at the end of life is not applicable to this sector. However, GGL has a well-established process of waste management which includes collection, disposal and further recycling as applicable for waste generated during project and operational activities of the organisation. This includes the following: a) Plastic waste - Plastic waste generated at GGL includes PE pipe short pieces (<5 meters) which cannot be re-used and collected by contractor and submitted to GGL stores. Same is checked through the material reconciliation process. This waste is then sold through auction at MSTC official website. b) E-waste - E-waste generated at GGL is from the offices & owned CNG stations. Waste is collected and sent to Stores and are then disposed off to E-waste authorized vendors c) Hazardous Waste - Hazardous waste generated at GGL comprising used oil from equipment such as CNG compressors are collected by GGL contractor for compressor maintenance and is sent to the pollution control board approved vendors for recycling. d) Other non-hazardous waste – Waste such as food, paper, cardboard, metal, glass etc. are collected and disposed/sold as scrap to scrap vendors / municipal waste collectors. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No). If yes, whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If not, provide steps taken to address the same. Extended Producer Responsibility (EPR) is not applicable to the Company because of the nature of its product and service offerings. GGL has an established SOP on Waste management which clearly defines project & operational waste collection and disposal. GGL when obtaining consent from the State Pollution Control Board (SPCB) submits its hazardous waste management plan and ensures compliance with the requirements of SPCB consent regarding waste management and relevant data reporting to SPCB for the same. 3. 4. 2024-2025 th 13 ANNUAL REPORT 3. Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing industry) or providing services (for service industry). Recycled or re-used input material to total material FY 2024-25 Indicate Input Material Recycled or re-used input material to total material FY 2023-24 GGL is in the business of distribution of Natural Gas to domestic, commercial, industrial & CNG Consumers. Natural Gas and other project inputs materials (pipeline/fittings/equipment etc.) procured generally do not include any recycled/reused material considering safety requirements & standards. Therefore, over-all no recycled or reused input material can be considered for GGL. Leadership Indicators Has the entity conducted Life Cycle Perspective / Assessments (LCA) for any of its products (for manufacturing industry) or for its services (for service industry)? If yes, provide details in the following format? Life cycle assessment for any of the products has not been currently performed by GGL. NIC Code Name of product/service 1. % of total turnover contributed Boundary for which the life cycle perspective/ assessment was conducted Whether conducted by an independent external agency Results communicated in public domain (Yes/No) If there are any significant social or environmental concerns and/or risks arising from production or disposal of your products / services, as identified in the Life Cycle Perspective / Assessments (LCA) or through any other means, briefly describe the same along-with action taken to mitigate the same. Description of the risk/ concernName of product/ Service Action Taken Life cycle assessment for any of the products is not currently performed by GGL. There are no significant social or environmental concerns and/or risks arising from production or disposal of products/services. 2.
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GUJARAT GAS LIMITED 82 4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and safely disposed as per the following format *Hazardous waste “Used Oil” is Given to PCB (Pollution Control board) approved vendor for re-refining. 5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category. Indicate Product Category FY 2024-25 Safely Disposed Safely DisposedRecycled RecycledRe- used Re- used Reclaimed products and their packaging materials as % of total products sold in respective category FY 2023-24 Not available as product recycling is not relevant for the industry. GGL product is Natural Gas which is used as fuel therefore no reclaiming is possible considering the very nature of product, also no packaging material is involved. Plastics (including packaging) - - 0.0 - - 7.57 E-Waste - - 0.9 - - 1.16 Hazardous Waste* - 80.6 - - 91.63 - Battery waste - - 1.4 - - 1.4 Other non-hazardous Waste - - 317.0 - - 310.30 2024-2025 th 13 ANNUAL REPORT Essential Indicators Male 750 750 100% 750 100% - - 750 100% - - Female 50 50 100% 50 100% 50 100% - - - - Total 800 800 100% 800 100% 50 6% 750 94% - - Male 53 53 100% 53 100% - - - - - Female 5 5 100% 5 100% 5 100% - - - - Total 58 58 100% 58 100% 5 8.6% - - - - Day Care facilities % a. Details of measures for the well-being of employees: % of employees covered by Permanent Employees Other than Permanent Employees 1. Number Paternity Benefits %Number Maternity benefits %Number Accident insurance %Number Health insurance %Number Total (A) Category PRINCIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their value chains This principle is focused on equity, dignity, and quality of life of the organization employees as well as employees of value chain partners. Entities must comply with the regulatory and statutory Requirements, and further provide equal opportunity to all the employees. GGL places great emphasis on employee growth and well-being because these factors boost output, morale, and reduce attrition rates. Workers are an organization's most valuable asset since they not only act as a conduit between the Company and its consumers, but they also significantly contribute to the overall success of the Company. GGL has a sharp focus on inclusion and diversity, health and wellbeing and continuous learning and development of its employees and workers. The Company’s redressal mechanisms enable workers to report issues from across the organization, allowing them to be addressed rapidly and effectively.
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GUJARAT GAS LIMITED 83 Male Female Total Day Care facilities % b. Details of measures for the well-being of workers: % of workers covered by Other than Permanent workers c. Spending on measures towards well-being of employees and workers (including permanent and other than permanent) in the following format – Number Paternity Benefits %Number Maternity benefits %Number Accident insurance %Number Health insurance %Number Total (A) Category Male 91 91 100% 91 100% - - 91 100% - - Female 4 4 100% 4 100% 4 100% - - - - Total 95 95 100% 95 100% 4 4% 91 96% - - Permanent workers Not reported as Other than permanent workers are hired by GGL Contractors on need basis for business operations 12508 12508 100% 12508 100% - - - - - - Note: Above disclosed spending measures towards well-being of employees and workers does not include cost incurred on well-being of ‘Other than permanent workers’ since they are hired by GGL Contractors on need basis for business operations. FY 2024-25 FY 2023-24 Cost incurred on well-being measures as a % of total revenue of the company 0.044% (INR 7,62,16,256.09 ) 0.054% (INR 8,73,45,670.49) At GGL, workers are hired through "Third Party Contractors", on need basis for completion of identified business operations from time to time and mechanisms are being built to track workers that GGL engages through "Third Party Contractors”. 2024-2025 th 13 ANNUAL REPORT PF 100% 100% Yes 100% 100% Yes Gratuity* 93.24% 100% Yes 93.05% 100% Yes ESI* 1.63% 0 Yes 3.48% 0 Yes Others Please Nil Nil NA Nil Nil NA Specify (National Pension Scheme) FY 2023-24 Deducted and deposited with the authority (Y/N/N.A.) Details of retirement benefits, for Current Financial Year and Previous Financial Year. * For Gratuity and ESI, all eligible employees are covered under the respective schemes. **Details pertaining to workers includes disclosure for Permanent Workers only 2. No. of workers covered as a % of total workers** No. of employees covered as a % of total employees Deducted and deposited with the authority (Y/N/N.A.) FY 2024-25 No. of workers covered as a % of total workers** No. of employees covered as a % of total employees Benefits Accessibility of workplaces Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard. - The Company owned offices are accessible to differently abled employees and workers wherever required. Wheelchair’s facilities are available at the Company owned offices of Gujarat Gas Limited. 3. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a web-link to the policy Yes, the Company has an equal opportunity policy in place which is applicable to all stakeholders under its human rights policy. The policy states that the organization is dedicated to providing the necessary infrastructure and people-centric policies to enable and support individuals with disabilities to participate in the organization's value creation process. Link to the policy: https://www.gujaratgas.com/corporate-governance/brsrpolicies/ 4.
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GUJARAT GAS LIMITED 84 Return to work and Retention rates of permanent employees and workers that took parental leave.5. Male 100% 97% - - Female 100% 100% - - Total 100% 97% - - Permanent Workers Retention rateReturn to work rateRetention rate Permanent Employees Return to work rateGender Is there a mechanism available to receive and redress grievances for the following categories of employees and workers? If yes, give details of the mechanism in brief. 6. Permanent Workers Other than Permanent Workers Permanent Employees Other than Permanent Employees Yes, the Company has a stage wise grievance redressal procedure as mentioned in Workplace Behaviour policy & Human Rights Policy which is an easily accessible mechanism available to all the employees for redressal of their grievances. Grievance Committee ensures timely redressal of grievance. Managing Director provides final decision on basis of the facts of the case submitted to him or her by the Committee. Yes/No (If Yes, then give details of the mechanism in brief) 2024-2025 th 13 ANNUAL REPORT Membership of employees and worker in association(s) or Unions recognized by the listed entity: Presently, there are two unions in GGL i.e. GGCL Employees Union, Surat; GGCL staff Union, Ankleshwar representing the permanent workers of the Company. 7. Total Permanent 800 - NA 833 - NA Employees Male 750 - NA 782 - NA Female 50 - NA 51 - NA Total Permanent Workers 95 95 100% 109 109 100% Male 91 91 100% 103 103 100% Female 4 4 100% 6 6 100% FY 2023-24 % (D / C) No. of employees / workers in respective category, who are part of association(s) or Union (D) Total employees / workers in respective category (C) % (B / A) FY 2024-25 No. of employees / workers in respective category, who are part of association(s) or Union (B) Total employees / workers in respective category (A) Details of training given to employees and workers: Employees Workers 8. Male 803 713 89% 803 100% 812 106 13.05% 107 13.18% Female 55 51 93% 55 100% 51 0 0.00% 0 0.00% Total 858 764 89% 858 100% 863 106 12.28% 107 12.40% Male 91 0 0% 58 64% 103 5 4.85% 0 0% Female 4 0 0% 1 25% 6 0 0% 0 0% Total 95 0 0% 59 62% 109 5 4.59% 0 0% No. (B) % (B / A) No. (C) % (C / A) No. (E) % (E / D) No. (F) % (F / D) FY 2023-24 On Skill upgradationOn Health and safety measuresTotal (D)On Skill upgradation FY 2024-25 On Health and safety measuresTotal (A)Category Above Details pertaining to workers includes disclosure for Permanent Workers only. For ‘Other than Permanent workers’ which constitutes of Contractor staff, they all undergo Safety / Technical Training before deployment
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GUJARAT GAS LIMITED 85 Details of performance and career development reviews of employees and worker: Employees Workers 9. Male 803 748 93.15% 812 776 95.56% Female 55 51 92.73% 51 51 100% Total 858 799 93.12% 863 827 95.82% Male Female Total Permanent Workers are the union workers whose performance is considered and settled via the settlement agreements determined over a 4 years period. Other than Permanent Workers are hired by GGL Contractors on need basis for completion of identified business projects & operations from time to time. Performance & Career development review of these workers is not in GGL scope, GGL evaluates the performance of Contractors/Agency and not individuals hired by the contractors. FY 2023-24 % (D / C)No. (D)Total (C)% (B / A) FY 2024-25 No. (B)Total (A)Category Note: Performance and career development reviews of Permanent employees are conducted every quarter, the numbers disclosed represent performance reviews conducted for respective previous Financial years Performance and career development reviews of most of the Other than Permanent employees are not applicable to them since their reviews are due in FY 2025-26. 2024-2025 th 13 ANNUAL REPORT Health and safety management system: a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/ No). If yes, the coverage of such a system? Yes, GGL has established its Occupational Health, Safety Management system with reference to ISO standard 45001:2018 and has successfully completed its recertification & periodic audits. The certification demonstrates company's ongoing dedication to health and safety management. GGL ensures that all management choices are consistent with the Company’s goals for health and safety, and that the management systems follow the best industry standards and are adequately resourced. GGL recognizes the protection of the health and safety of all those involved in its operation and public at large. It is an integral part of the Company’s business operations and the prime responsibility of management at each level. GGL’s assets have been designed, constructed, commissioned, and are operated and maintained, such that the risks to personnel are reduced to As Low As Reasonably Practicable (ALARP). GGL operations are driven by the goal of zero injuries, with the aim to ensure that every employee working for and on behalf of the company returns home safely at the end of each working day. GGL ensures Annual Health check-ups of all the employees. Health and Safety Management system coverage includes: • HSE Policy • Standard Operating Procedures and Guidelines on HSE and other Functions • HSE performance management • Hazard Identification & Risk Management • Permit to Work System • Work Place Inspection and Lifesaver compliance • Safety & Technical Competency Training • Outsourced services management • Internal & External Safety Audits • Incident and emergency management, investigations & corrective actions • Document Management • Management reviews etc. GGL HSE Management system is implemented covering all GGL operating locations and corporate functions. b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the entity? The identification of Health and Safety hazards associated with GGL's activities and facilities is a continuous process that determines the past, current, and potential HSE impact of routine and non-routine activities, facilities at GGL workplace, and activities of all personnel (i.e., contractors, suppliers, visitors etc.) having access to GGL workplace. 10.
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GUJARAT GAS LIMITED 86 2024-2025 th 13 ANNUAL REPORT GGL has established procedure: • To identify the hazards and Environment Impacts associated with GGL’s activities and facilities. The procedure starts at an early stage in development of any new facilities, activities, processes, or tasks, to allow good Health, Safety practices to be ‘built in’. • To assess the risk levels and impacts to determine those hazards, which have or can have significant HSE risk level. Risk/Impact assessment considers both the severity of the consequences of a specified adverse event and the probability (the likelihood) of it occurring. • To implement time effective control measures to reduce the risks / impacts to tolerable risk level i.e. ALARP level. Tolerable risk / impact or ALARP risk is the risk that has been reduced to a level that can be endured by GGL having regard to legal obligation and GGL own policy. GGL has established various tools including but not limited to these following for identification of Hazards & assessment of risks: 1) Hazard reporting hard copy formats 2) Hazard reporting online system 3) Activities like Hazard Hunt 4) Occupational Health & Safety risk registers for each kind of safety critical activity 5) Geographical area wise Asset Risk Register 6) Site Specific Risk Assessment before start of each job 7) Tool-box Talk before start of each job 8) Permit to Work System for each job 9) Safety Engineering Studies like Hazard Operability (HAZOP), Quantitative Risk Assessment (QRA) for all new installations & modifications in existing installations C. Whether you have processes for workers to report the work-related hazards and to remove themselves from such risks. (Y/N) Yes, GGL has well defined processes for workers to report the work-related hazards and to remove themselves from such risks All GGL employees/workers are trained on Health & Safety related aspects which includes explaining them about Hazards and examples of work-related hazards and methods of reporting hazard including further actions. GGL has defined targets for reporting hazards for its contractors, so as to get them actively involved in looking out for hazards or hazardous situations. Risk mitigation actions are taken against these reported Hazards on priority depending upon criticality of hazard or its corrective actions which are tracked in the system. GGL motivates staff and workers on reporting hazards by recognizing and rewarding best reported hazards for each Zonal area every month. D. Do the employees/ workers of the entity have access to non-occupational medical and healthcare services? (Yes/ No) Yes, GGL has established following policies for employees to support them for non-occupational medical & healthcare services: 1) Health Care Policy covering Health Check-up & OPD 2) Insurance Scheme - Mediclaim Insurance, Group Personal Accident Insurance & Life Insurance GGL has tie-ups with hospitals in each area of operation to provide employees with medical and healthcare services as needed. Details of safety related incidents, in the following format:11. Lost Time Injury Frequency Rate (LTIFR) Employees 0.000 0.490 (per one million-person hours worked) Workers 0.130* 0.190* Total recordable work-related injuries Employees 0 1 Workers 13 7 No. of fatalities Employees 0 0 Workers 0 2 High consequence work-related injury or ill-health Employees 0 0 (excluding fatalities) Workers 0 0 FY 2023-24FY 2024-25Category*Safety Incident/Number *Including in the contract workforce
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GUJARAT GAS LIMITED 87 Describe the measures taken by the entity to ensure a safe and healthy workplace. GGL has established its Occupational Health and Safety management system with reference to ISO standard 45001:2018. Key aspects of its Health & Safety Management focusing towards ensuring safe & healthy workplace are: Risk Management System: OH&S Risk register have been established identifying & mitigating risks related to all safety critical activities carried out at GGL. Risk and Impact Register maintained by GGL • Provides information regarding the hazards and environment impacts associated with activities / facilities • Provides the basis for significance and prioritization for control of risk and impacts • Forms the basis for an action plan • Defines the controls to manage the health and safety risks and environment aspects The established risk and impact registers are periodically reviewed and updated for addition or deletion of hazards and environment impacts & effectiveness of the control measures. Safety Engineering studies such as HAZOP study, Quantitative Risk Assessment Tools involving Third party subject matter experts & latest software for identifying & Quantifying the probable risks related to any GGL installation/facility – CNG, CGS, Pipeline etc. and implementing mitigation measures recommended as a result of these studies to ensure safe work place for GGL employees & public. Work Permit System: GGL has established and maintains Work permit system to ensure all works potentially hazardous to people, environment, or asset are controlled and conducted safely. GGL Lifesavers: GGL has identified 10 Lifesaver areas which are safety critical areas / inherently hazardous processes which have a potential to lead to loss of life situations if safe working practices are not followed. Lifesaver rules are defined to be followed while performing activities in GGL Lifesaver areas. GGL Lifesavers areas are listed below: • Safe Systems of Work • Gas Escape Handling • Excavation, Manual boring, & Horizontal Directional Drilling (HDD) • Working at Height • Confined Space Entry • Lifting Operation • Electrical • Driving • Compressed Natural Gas (CNG) Handling • Liquefied Natural Gas (LNG) Handling Providing Personal Protective Equipment: GGL provides PPE kit with all relevant safety gear to all its site going employees and staff and also mandates its contractors to ensure availability of adequate & appropriate PPEs for their staff to protect the site personnel from injury Internal Audit: The organization has established a procedure for QHSE management systems audit to be carried out by trained internal auditors independent of the functions/area being audited in order to determine whether or not the QHSE management system has been properly implemented and maintained. Incident Investigation & Corrective Actions: GGL has established, implemented and is maintaining a process to record, investigate and analyze nonconformities and incidents and to take actions to mitigate risks and undertake corrective and preventive actions for avoiding re-occurrence of such incidents in future. Asset Integrity: GGL assets have been designed, constructed, commissioned and are operated and maintained, such that the risks to personnel are reduced to As Low As Reasonably Practicable (ALARP). GGL operations are driven by the goal of zero injuries, with the aim to ensure that every employee working for and on behalf of the Company returns home safely at the end of each working day. To adhere to the QHSE standards, GGL always ensures training and safety awareness campaigns for employees, associates and contractors and PNG/CNG customers. 12. 2024-2025 th 13 ANNUAL REPORT Number of Complaints on the following made by employees and workers:13. Working Conditions Health & Safety FY 2023-24 RemarksPending resolution at the end of year Filed during the yearRemarks FY 2024-25 Pending resolution at the end of year Filed during the year No such complaints for working conditions and health and safety were received.
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GUJARAT GAS LIMITED 88 Assessments for the year:14. Health and safety practices Working Conditions % of your plants and offices that were assessed (by entity or statutory authorities or third parties) • In order to ensure and monitor site safety compliances, GGL management (middle & senior) regularly conducts HSE tours at Sites to assess the safety compliance and coach site team in terms of safety requirements and understand any concerns related to site safety. More than 2,100 HSE Tours have been conducted at GGL in FY 2024-25. • In order to ensure and monitor site safety compliances, GGL engineers regularly conducts Lifesaver-Workplace Inspections (WPI) at Sites. The Lifesaver score is tracked for each geographical region. More than 16,300 Work place inspections have been done in FY 2024-25. GGL has successfully conducted compliance audits & applicable recertification audits with respect to below listed PNGRB regulations through Petroleum and Natural Gas Regulatory Board (PNGRB) empaneled Third Party Inspection Agency (TPIA) for Geographical Areas. • T4S & IMS Certification Audits: Successfully completed for 1 Natural gas pipeline (Hazira Ankleshwar pipeline) and Fourteen (14) Geographical Areas in line with PNGRB Technical Standards and Specifications including Safety Standards (T4S), regulations & PNGRB Integrity Management System (IMS), regulations in FY 2024-25. - Palghar district & Thane Rural GA - Amritsar GA - Valsad GA - Dadra & Nagar Haveli GA - Surendranagar GA - Gandhinagar GA - Bhavnagar GA - Jamnagar GA - Navsari GA - Surat, Ankleshwar and Bharuch (SAB) GA - Hazira GA - Rajkot (including Morbi) GA - Nadiad GA - Dahej GA • Periodic ERDMP Re-Certification Audits: Successfully completed for One (1) Geographical Area (GA) – Dahod GA in line with PNGRB Codes of Practices for Emergency Response and Disaster Management Plan, regulations in FY 2024-25. GGL QHSE integrated management system was audited by Third party M/s Bureau Veritas FY 2024-25 with respect to respective ISO standards. Post successful audit GGL was recertified for following standards : 1. Quality Management System standard ISO 9001:2015 2. Environmental Management System Standard ISO 14001:2015 3. Occupational Health & Safety Management System Standard ISO 45001:2018 2024-2025 th 13 ANNUAL REPORT Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant risks / concerns arising from assessments of health & safety practices and working conditions. All major incidents at GGL are investigated through an internal independent enquiry/investigation committee comprising of a Senior experienced Team leader and Technical Manager of that particular domain along with experienced HSE professional. The investigation report is established and also submitted to regulatory body, PNGRB along with compliance actions. Corrective actions as identified in these investigation reports are implemented to prevent re-occurrence of such incidents. Any significant risk arising from assessment of health & safety practices and working conditions are also captured in risk registers such as occupational health & safety risk register and may also be included in business risk register. All mitigation/assurance activities identified during investigation are implemented through existing or new controls. e.g. 1. External Training on Emergency Response & Disaster Management Plan (ERDMP) & clarity on roles and responsibilities for all employees and contractor staff involved in Emergency 2. Utility Co-ordination meeting with District Authority involving officials from government and private utilities sensitizing them about hazards associated with damage to gas pipelines. 15.
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GUJARAT GAS LIMITED 89 3. Reviewed and strengthened existing safety training modules and carrying out refresher Technical Competency & Safety Training on CGD O&M for contractual staff and own employees. 4. Comprehensive review of mock drills plan for inclusion of all possible different scenarios 5. The procedure for emergency response and handling technical complaints was reviewed and revised to include an escalation matrix with timeline especially for gas escape/probable ingress whenever gas concentration is observed above LEL and O&M team is unable to identify & resolve the same. 6. Awareness done for CNG fillers to recognize any abnormalities, during and after refueling and take appropriate action. 7. Refresher training to Patrolmen and O&M team to improve risk perception 8. Carry out awareness of Third-party machine operators to improve their awareness about gas network, risk associated with damage to gas pipeline network and importance of prior intimation to GGL for any excavation on / nearby gas network 9. Refresher training session to be conducted for GGL O&M and contractor staff to enhance their risk perception and awareness on • Possibilities of gas escape on network converting to gas-ingress case inside nearby premises and leading to fire/explosion • Procedure for emergency response and handling technical complaints (MAI-P-19) • Escalation matrix in case of gas ingress/escape complaints • Risk based decision regarding isolation of affected network through upstream valve regardless of customer supply disruption, in case of delay in pin-pointing of leakage spot Investigation report along with corrective actions compliances are reviewed by GGL Risk Management Committee and Board of Directors during quarterly review and suggest actions to ensure preventing reoccurrence of such incidents in future. Leadership Indicators 1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees (Y/N) (B) Workers (Y/N). (A) Employees: Yes - Employees are covered under Life insurance and Compensatory package in the event of his/her death. (B) Workers: Yes – Permanent workers are covered under Life insurance and Compensatory package in the event of his/her death. For ‘Other than permanent workers’, Contractors as per the terms & conditions of the contract are required to adhere with the statutory compliance as per the applicable rules. i.e., Covered through Employees State Insurance (ESI) Act, Employees Compensation Act and EDLI (Employees Deposit Linked Insurance scheme) 2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by the value chain partners. GGL has mechanisms and systems, which encourage the compliance of statutory dues by value chain partners. The Company via its general terms and conditions of the tender documents encourage that statutory dues including Provident Fund, Income Tax, Sales Tax, Goods and Service Tax and other statutory dues have generally been regularly deposited by the Company to the appropriate authorities. 3. Provide the number of employees / workers having suffered high consequence work-related injury / ill-health / fatalities (as reported in Q11 of Essential Indicators above), who have been are rehabilitated and placed in suitable employment or whose family members have been placed in suitable employment: There is no case noted where employee/permanent worker have suffered high consequence work related injury / ill-health in FY 2024-25 and FY 2023-24. 2024-2025 th 13 ANNUAL REPORT *For FY 23-24, Affected workers are among ‘other than permanent workers’ who are hired by GGL contractors / service providers. GGL ensures that affected workers / their family members receive compensation as per the statutory provisions *For FY 24-25, There were no cases of high consequence work-related injury or fatality requiring rehabilitation/ suitable employment. 4. Does the entity provide transition assistance programs to facilitate continued employability and the management of career endings resulting from retirement or termination of employment? (Yes/ No) - No, presently there are no transition assistance programs to facilitate continued employability and management of career endings resulting from retirement or termination of employment. Employees Nil Nil Nil Nil Workers Nil 2* Nil Nil* No. of employees/workers that are rehabilitated and placed in suitable employment or whose family members have been placed in suitable employment FY 2023-24FY 2024-25 Total no. of affected employees/ workers FY 2023-24FY 2024-25
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GUJARAT GAS LIMITED 90 5. Details on assessment of value chain partners: GGL has established SOP on Contractor Performance Assessment with an objective to monitor the performance of Contractors / Service providers in terms of compliance with all applicable GGL policies, processes, standards, procedures, guidelines and other Contractual obligations related to Project/task delivery & HSE. Contractor’s/Service provider’s performance data are captured on a monthly basis as per CPAR (Contractor Performance Assessment Report) format. • Business Performance – 70% Weightage • Contract Management & Other Key indicator – 10% Weightage • Quality Control – 5% Weightage • HSE & Lifesaver Compliance – 15% Weightage 6. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from assessments of health and safety practices and working conditions of value chain partners. Not Applicable, as there were no significant risks / concerns arising from assessments of health and safety practices and working conditions of Company’s value chain partners. Health and safety practices 100% Contractors Working Conditions 100% Contractors % of value chain partners (by value of business done with such partners) that were assessed PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders According to this principle organizations must consider the expectations of all parties involved in their business, both internal & external. In particular the affected vulnerable group & Communities. It has become necessary for GGL to continue collecting and disclosing both quantitative and qualitative indicators to demonstrate transparency and effective communication with all its stakeholders, and to address sustainability issues that are critical to its business's operations. GGL is continuously engaging with its stakeholders in order to mitigate concerns of any of the stakeholders. 2024-2025 th 13 ANNUAL REPORT Stakeholder Group Community Whether identified as Vulnerable & Marginalized Group (Yes/No) No Channels of communication (Email, SMS, Newspaper, Pamphlets, Advertisement, Community Meetings, Notice Board, Website, Other) • Society meetings • Social & Safety Awareness programs (Street Plays) • Canopy Marketing • Door to Door Marketing • Display tricycle • Social Media Campaigns • Marketing & Safety Awareness As and when required Frequency of engagement (Annually/ Half yearly/ Quarterly / others – please specify) Purpose and scope of engagement including key topics and concerns raised during such engagement Essential Indicators Describe the processes for identifying key stakeholder groups of the entity. According to GGL, any individual or group who can influence or are impacted by its business and operations are considered key stakeholders. GGL has developed mechanisms to map both its internal and external stakeholders as part of the sustainability reporting process. List of stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group. 1. 2.
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GUJARAT GAS LIMITED 91 Shareholders/ Investors Suppliers & Contractors Employees Regulatory Bodies No No No No • Annual reports • Individual communications to shareholders • Annual general meeting • Newspaper advertisement • Postal Ballot Notice • SMS • Emails • Website • Quarterly Earning Calls • Investor Presentation • N-procure website / GEM portal • GGL website • Prebid Meetings • Kick-off Meetings • Contracts • E-mails • Letters • Circulars • HSE & technical competency trainings • HSE Awareness Programs • Grievance redressal mechanism • Monthly Contractors Performance Assessment meetings • E-mails • Circulars • Intranet • Grievance redressal mechanisms • HSE & technical competency trainings • Safety Awareness Programs • Health, Safety & Security Advisories • Performance Management System • Regulatory Portals • Emails • Open house • Letter Communications • Meetings • Conclaves • GGL Website • Compliance reports – Incidents & Audits • Financial Results • Business Growth and Profitability • Matters pertaining to investor servicing • Statutory Communications as per applicable SEBI Laws • Performance Highlights • Scope of Work/Supply • Quality Health safety & environment requirements • Tender Terms & Conditions • Performance review • Learning and development • Employee wellbeing • Quarterly financial Performance & major developments • Health safety & environment measures • Performance KPIs and review • Industry related Suggestions/Concerns • Business plans • Incident report & Investigation Report • Audit compliance status • Advocacy on Public Policy & Regulatory Framework • Target based Progress & Compliances Review Annual as well as need basis As and when required As and when required As and when required 2024-2025 th 13 ANNUAL REPORT Customers No • GGL Website • GGL Mobile application • SMS • Whatsapp • One to one Phone calls • One on one meeting/awareness • Pamphlets • Safety Awareness Campaign • Customer Satisfaction survey (Door to Door survey) • Social Media Campaigns • Product Quality, Health and Safety awareness • Operational concerns • Billing matters • Customer satisfaction surveys As and when required
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GUJARAT GAS LIMITED 92 Leadership Indicators 1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social topics or if consultation is delegated, how is feedback from such consultations provided to the Board. GGL recognizes the importance of active interaction with its stakeholders in meeting their needs and increasing stakeholder confidence. The Company's management interacts with key stakeholders within regular intervals. In these meetings, Sustainability related concerns or issues including economic, environmental, and social topics are discussed, and stakeholders are made aware of sustainability concerns. In the coming years, the Company plans to further enhance its focus on engagement around sustainability related matters in these meetings. GGL conducts Annual General meeting open for all its shareholders to participate and is open to receive consultation/concerns on economic, environmental & social aspects related to GGL business. The Company also convenes quarterly calls after Board Meetings to address queries of Investors/Analysts at large. 2. Whether stakeholder consultation is used to support the identification and management of environmental, and social topics (Yes / No). If so, provide details of instances as to how the inputs received from stakeholders on these topics were incorporated into policies and activities of the entity. As part of the materiality assessment process, GGL investigates environmental, social and governance related issues that are crucial for the company's success. The company’s management has identified material topics based on its experience and industry practice. 3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/ marginalized stakeholder groups. The concerns of vulnerable/ marginalized stakeholders’ groups are mainly addressed over various parameters such as education, empowerment, health, infrastructure, conservation, etc. GGL has taken Business & CSR initiatives for identified disadvantaged, vulnerable and marginalized stakeholders, some of which are mentioned below. 1. For Women in rural areas • Supplying Natural Gas as health & Environment friendly Fuel to Villages: GGL has supported the government initiative to provide natural gas supply in rural areas because the burning of wood and coal causes gas emissions, which have a negative impact on the health of all those coming into contact with those emissions, especially women who use it to cook food, and causing adverse health conditions such as lung cancer, asthma, and others. Under this initiative, GGL has gone the extra mile with providing Piped Natural Gas in rural areas in its operational Geographical areas and has covered more than 1,000 villages successfully. • Access to cost effective farm mechanization to the small & marginal women farmers: Provide farm mechanization at a reasonable rate and also to generate livelihood - Procurement of tools and equipment based on contextual need and demands. Exposure and Training of finalized SHGs. Set up of 6 CHC Units in Subir, Nizar and Kukurmunda. • Increase income of women farmers and provision of quality feed for cattle through establishment of cattle feed unit : Machinery has been installed in Subir, Nizar and Kukurmunda for establishment of cattle feed unit. Order placed for procurement of machinery at Garbada and Ghoghamba • Increase income of women by developing value chain and processing unit for millet and other bakery related food items - Location identification for the units and training done for members at Subir, Nizar and Santalpur. 2 no. Millet based processing units(primary & value addition) set up in Naswadi, Kolamba • Micro Enterprise Development : Total 171 women enterprises started till March 2025 along with 79 who have been selected after completion of training in Subir, Nazar and Kukurmunda. 200 Women have been provided material support in Garbada and Nandod. 2. For Youth in rural areas • Jobs to Local youth for CNG station: GGL has identified various locations across its operational areas for establishing CNG/LCNG stations. Development & Operations of these stations require local youth manpower. Therefore, this business activity helped the local youth by providing employment opportunities. • Industry responsive skill development to needy and unemployed youth: GGL has imparted trainings to around 500 candidates through M/s Aspire Disruptive Skill (ADS) Foundation. 68 candidates have already been placed in oil & gas & other sectors. ADS will continue to engage with companies to understand their needs & facilitate hiring of trained candidates • Support construction of a new building for Kanya Ashram Shala for tribal girls : Construction of new school building has completed • Development/upgradation of approx.625 Anganwadis across Gujarat : Construction of Pilot Anganwadis has been completed at three different locations of Gujarat viz. Karai, Dahod and Dediayapada. Khat Mahurat/Inauguration was done in the august presence of Honourable Chief Minister of Gujarat in January 2025 for 607 Anganwadis to be constructed and developed across Gujarat. Call out has been issued for 201 Anganwadis in 8 districts of Gujarat 3. For other vulnerable • Mangalam Canteen : Create sustainable livelihood and income generation through promotion of traditional food products & culinary skill of women – One canteen has started in Varahi village, Santalpur Taluka with footfall of approx. 30 people having lunch. Canteen location finalised in Subir, Nizar and Kukurmunda. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 93 PRINCIPLE 5: Businesses should respect and promote human rights The core belief of this principle is based on the idea that every human being has inherent rights that cannot be compromised in any way for the benefit of business. According to the UN Guiding Principles on Business and Human Rights, businesses are also held accountable for any violations of human rights and must take reasonable measures to prevent such violations from occurring as a result of their operations. GGL social responsibility initiatives are focused on providing decent working conditions in all our offices, sites, and other locations where the company operates, as well as ensuring the protection of all our stakeholders' human rights. GGL is committed towards continuous improvement and has begun taking steps to effectively incorporate human rights into its business operations. Essential Indicators Permanent 800 697 87.1% 833 26 3.12% Other than Permanent 58 42 72.4% 30 0 0.00% Total Employee 858 739 86.1% 863 26 3.01% Permanent 95 4 4.2% 109 1 0.92% Other than Permanent 12508 0 0% 13447 0 0.00% Total Workers 12603 4 0.00% 13556 1 0.00% FY 2023-24 % (D / C) Employees and workers who have been provided training on Human rights issues and policy(ies) of the entity, in the following format: Employees Workers 1. No. of employees / workers covered (D)Total (C)% (B/A) FY 2024-25 No. of employees / workers covered (B)Total (A)Category 2024-2025 th 13 ANNUAL REPORT Details of minimum wages paid to employees and workers, in the following format: All wages are at par and more than applicable minimum wages. 2. Employees Workers Permanent 800 - - 800 100% 833 - - 833 100% Male 750 - - 750 100% 782 - - 782 100% Female 50 - - 50 100% 51 - - 51 100% Other than 58 - - 58 100% 30 - - 30 100% permanent Male 53 - - 53 100% 30 - - 30 100% Female 5 - - 5 100% 0 - - 0 0.00% Permanent Male Female Other than permanent Male Female No. (B) % (B / A) No. (C) % (C / A) No. (E) % (E / D) No. (F) % (F / D) FY 2023-24 More than Minimum Wage Equal to Minimum WageTotal (D)More than Minimum Wage FY 2024-25 Equal to Minimum WageTotal (A)Category 95 91 4 12508 - - - 12508 - - - 100% 95 91 4 0 100% 100% 100% 0.00% 109 103 6 13447 - - - 13447 - - - 100% 109 103 6 0 100% 100% 100% 0.00% Not reported as Other than permanent workers are hired by GGL Contractors on need basis for business operations
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GUJARAT GAS LIMITED 94 Details of remuneration/salary/wages, in the following format: a. Median remuneration / wages: *Non-executive members of the Board are paid sitting fees and out of pocket expenses for attending the meetings of the Board / Committee. Sitting fees of government directors is deposited in government treasury. ** Remuneration of CS is disclosed. *** Worker disclosures only include Permanent Workers and does not include ‘Other Than Permanent Workers’ hired by GGL contractors 3. Board of Directors (BoD)* 6 10,05,000 2 2,02,500 Key Managerial Personnel** 1 66,83,417 0 NA Employees other than BoD and KMP 803 12,39,228 55 14,39,148 Workers*** 91 10,44,204 4 11,32,236 Female Median remuneration/ salary/ wages of respective categoryNumberMedian remuneration/ salary/ wages of respective category Male Number Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused or contributed to by the business? (Yes/No) Yes, in line with the Human rights policy, Grievance redressal committee is responsible for addressing human rights impacts, issues and grievances caused or contributed to by the business. 4. FY 2024-25 FY 2023-24 Gross wages paid to females as % of total wages 6.62% 6.35% b. Gross wages paid to females as % of total wages paid by the entity, in the following format: 2024-2025 th 13 ANNUAL REPORT Number of Complaints on the following made by employees and workers:6. Sexual Harassment 0 0 - 0 0 - Discrimination at workplace 0 0 - 0 0 - Child Labour 0 0 - 0 0 - Forced Labour/Involuntary Labour 0 0 - 0 0 - Wages 0 0 - 0 0 - Other human rights related issues 0 0 - 0 0 - FY 2023-24 RemarksPending resolution at the end of year Filed during the yearRemarks FY 2024-25 Pending resolution at the end of year Filed during the year Describe the internal mechanisms in place to redress grievances related to human rights issues. GGL has policy on Human Rights which make the mechanism open and approachable for dealing with and resolving any human rights-related issues. GGL is dedicated to creating a pleasant environment where complaints are promptly and fairly resolved. The goal is to promote a workplace free of such complaints. Any grievances/ complaints are rightly communicated, and steps are taken to address the same. The Company's Human rights policy and Code of Conduct aid in resolving complaints regarding any violations of human rights. Any violation of human rights is not tolerated at GGL. 5. Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, in the following format: 7. FY 2024-25 FY 2023-24 Total Complaints reported under Sexual Harassment on of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH) 0 0 Complaints on POSH as a % of female employees / workers 0.00% 0.00% Complaints on POSH upheld 0 0 Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases. GGL strives to avert harassment and discrimination in the workplace. It has a system and policy for resolving complaints and grievances. The Human Rights and Anti - Harassment Policies are designed to shield the complainant from unfavourable outcomes in discrimination and harassment situations. GGL is dedicated to creating a pleasant environment where complaints are promptly and fairly resolved. This policy's goal is to promote a workplace free of complaints while also assisting the Company's concerned employees in enhancing their performance and productivity. Any grievances/ complaints are rightly communicated, and steps are taken to address the same. There is stepwise mechanism in place for redressal of grievances mentioned under the human right policy. 8.
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GUJARAT GAS LIMITED 95 We have implemented an anti - harassment policy at work in accordance with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 (the "Act") and Rules issued thereunder. GGL has outlined the processes for filing a complaint and the processes that are followed thereafter. GGL has established an Internal Investigation committee and Enquiry committee to investigate concerns raised by the complainants. To disclose actual or suspected frauds and violations of the company's code of conduct, ethical behavior, and vigil mechanism policy, a whistleblower may do so in a number of different ways. The Whistleblower Policy outlines a detailed procedure for making disclosures, responding to concerns, and investigating fraudulent activity. Additionally, it provides adequate protection to employees who disclose such fraudulent activities or unethical conduct. Link of Policies: https://www.gujaratgas.com/corporate-governance/brsrpolicies/ 2024-2025 th 13 ANNUAL REPORT Assessments for the year:10. Child labour 100% Forced/involuntary labor 100% Sexual harassment 100% Discrimination at workplace 100% Wages 100% Others – please specify - % of plants and offices that were assessed (by entity or statutory authorities or third parties) Do human rights requirements form part of your business agreements and contracts? (Yes/No) – Yes, GGL encourages through the General Terms & Conditions of the contract that its vendors are complying with Laws and regulations and ethical business practices. 9. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 10 above. Not applicable since there were no significant risks / concerns arising from the human rights assessments. GGL has an internal system to carry out audits with respect to Labour Laws and compliance with Human Rights requirements. 11. GGL internally monitors compliance for all relevant laws and policies pertaining to these issues in all its plants & offices. GGL has implemented mechanisms by the way of relevant policies and committees to avoid instances of human rights violations. Leadership Indicators Sexual Harassment 100% Discrimination at workplace 100% Child Labour 100% Forced Labour/Involuntary Labour 100% Wages 100% Others – please specify NA % of value chain partners (by value of business done with such partners) that were assessed 5. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 4 above. We experienced zero instances of human rights violations by our value chain partners, including but not limited to sexual harassment, workplace discrimination, child labor, forced labor, involuntary labor, wages, and other human rights related issues, accordingly no such corrective action is required to be undertaken. 1. Details of a business process being modified / introduced as a result of addressing human rights grievances/complaints. No business processes were required to be modified / introduced as a result of addressing human rights grievances/complaints considering there were no human rights grievances/complaints raised. 2. Details of the scope and coverage of any Human rights due-diligence conducted. The Company follows strict adherence to all labor laws and human rights policies. No specific due diligence exercise is conducted by the Company. 3. Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of Persons with Disabilities Act, 2016? Yes, GGL has wheelchair facilities available at GGL corporate office & other owned offices. 4. Details on assessment of value chain partners:
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GUJARAT GAS LIMITED 96 PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment The principle urges organisations to explore and identify the potential environmental impacts arising out of their business operations and supply chain activities carried out in order to deliver, and to address them with adequate mitigating measures. It also encourages organisations to find alternative ways of operating by causing fewer impacts to the environment that may cause less harm to the environment. GGL has increased its efforts, attention and taking actions to preserve the environment. GGL has its HSE and QHSE policy to reflect the company's commitment towards the environment and to people through adherence to policy guidelines & complying with Laws & regulations. The goal of these policies is to ensure that everyone in the organization is aware of the company's environmental responsibilities. It deals with managing biodiversity, water and waste, efficient utilization of resources, energy and emissions management, and climate change. Essential Indicators From renewable sources Total electricity consumption (A) 0 2.71 Total fuel consumption (B) 0 0 Energy consumption through other sources (C) 0 0 Total energy consumed from renewable sources (A+B+C) 0 2.71 From non-renewable sources Total electricity consumption (D) 583,816.19 524,565.80 Total fuel consumption (E) 70,113.42 63,575.57 Energy consumption through other sources (F) 0 0 Total energy consumption (D+E+F) 653,929.61 588,141.37 Total energy consumed (A+B+C+D+E+F) 653,929.61 588,144.08 Energy intensity per rupee of turnover 38.05 GJ / INR crore 36.10 GJ / INR crore (Total energy consumed/ Revenue from operations) Energy intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) (Total energy consumed / Revenue from operations adjusted for PPP) 786.16 GJ / USD crore 737.48 GJ / USD crore Energy intensity in terms of physical output 186.42 GJ/MMSCM 172.12 GJ/MMSCM Gas sales Gas sales Energy intensity (optional) – the relevant metric may be selected NA NA by the entity FY 2023-24 Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format: (In Giga Joules) 1. FY 2024-25Parameter Increase in energy consumption is due to increase in number of plants / CNG sales during FY 2024-25 compared to FY 2023-24. *PPP conversion factor, GDP (National currency per international dollar) (Ref: International Monetary Fund website, www.imf.org) is as below • Conversion factor for FY 2024-25: 20.66 • Conversion factor for FY 2023-24: 20.43 Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency. Reasonable assurance has been carried out by M/s CNK & Associates LLP on the data reported in Principle-6, Essential indicator-1 2024-2025 th 13 ANNUAL REPORT 2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any. Not Applicable, as GGL does not have any recognized sites/facilities as a Designated Consumer (DC) under Perform, Achieve & Trade scheme.
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GUJARAT GAS LIMITED 97 Water withdrawal by source (in kilolitres) (i) Surface water - - (ii) Groundwater 66470.6 68840.6 (iii) Third party water 15878.9 21034.5 (iv) Seawater / desalinated water - - (v) Others - - Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v) 82,349.5 89,875.1 Total volume of water consumption (in kilolitres) 82,349.5 89,875.1 Water intensity per rupee of turnover (Water consumed / Revenue from operations) 4.79 KL / INR Crore 5.52 KL / INR Crore Water intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP)* (Total water consumption / Revenue from operations adjusted for PPP) 99.00 KL / USD Crore 112.70 KL / USD Crore Water intensity in terms of physical output 23.48 KL/MMSCM 26.30 KL/MMSCM gas sales gas sales Water intensity (optional) – the relevant metric may be selected NA NA by the entity FY 2023-24 Provide the following details related to water discharged: *PPP conversion factor, GDP (National currency per international dollar) (Ref: International Monetary Fund website, www.imf.org) is as below • Conversion factor for FY 2024-25: 20.66 • Conversion factor for FY 2023-24: 20.43 Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency. Reasonable assurance has been carried out by M/s CNK & Associates LLP on the data reported in Principle-6, Essential indicator-3. Provide details of the following disclosures related to water, in the following format: (in Kilolitres) 4. 3. FY 2024-25Parameter Water discharge by destination and level of treatment (in kilolitres) FY 2023-24FY 2024-25Parameter (i) To surface water - No treatment - With treatment – please specify level of treatment (ii) To Groundwater - No treatment - With treatment – please specify level of treatment (iii) To Seawater - No treatment - With treatment – please specify level of treatment (iv) Sent to third-parties - No treatment - With treatment – please specify level of treatment (v) Others - No treatment - With treatment – please specify level of treatment Total water discharged (in kilolitres) Considering that water is not used in the processes, nor it is discharged as industrial effluent as a result of the process. GGL Offices, & plants only discharge residential wastewater, which is disposed through the municipal or district sewer system, soak pit, or re-used in gardening. No treatment is necessary for such a kind of water discharge. However, the Company is in the process of setting up a mechanism to derive the quantity of residential wastewater discharge by destination. Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency. No such independent assessment/evaluation/assurance is carried out by an external agency. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 94 Nox ppm Less than 50 ppm in each case Less than 50 ppm in each case (DG set) (DG set) Sox ppm Less than 100 ppm in each case Less than 100 ppm in each case (DG set) (DG set) Particulate matter (PM) mg/Nm3 Less than 150 mg/Nm3 in Less than 150 mg/Nm3 in each each case (DG set) case (DG set) Persistent organic pollutants (POP) ppm Nil Nil Volatile organic compounds (VOC) ppm Nil Nil Hazardous air pollutants (HAP) ppm Nil Nil Others – please specify ppm The primary sources of air pollution are monitored through authorised agencies with laboratory certified by NABL as per the guidelines of the Central or respective State Pollution Control Boards. Total Scope 1 emissions (Break-up of the GHG into CO , CH , N O, HFCs, PFCs, SF , NF , if available)2 4 2 6 3 Total Scope 2 emissions (Break-up of the GHG into CO , CH , N O, HFCs, PFCs, SF , NF , if available)2 4 2 6 3 Total Scope 1 and Scope 2 emissions per rupee of turnover (Total Scope 1 and Scope 2 GHG emissions / Revenue from operations) Total Scope 1 and Scope 2 emission intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP)* (Total Scope 1 and Scope 2 GHG emissions / Revenue from operations adjusted for PPP) Total Scope 1 and Scope 2 emission intensity in terms of physical output Total Scope 1 and Scope 2 emission intensity (optional) – the relevant metric may be selected by the entity FY 2023-24 FY 2023-24 Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and implementation. Considering that water is not used in the processes, nor it is discharged as industrial effluent as a result of the process, GGL does not have a Zero Liquid Discharge system. GGL Offices, City Gas Station & Compressed Natural Gas Stations only produce residential wastewater, which is disposed through the municipal or district sewer system, a soak pit, or re-used in gardening. No treatment is necessary for such a kind of water discharge. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format: Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency. Flue Gas emission is monitored for each equipment such as DG set as per Pollution Control Board norms. Environmental monitoring have been done by service providers – M/s ABC Techno Labs India Private Limited and M/s Ecoearth Technologies labs and M/s Gujarat Energy Research Management Institute authorized by Central / State Pollution Control Board /Ministry of Environment, Forest and Climate Change. For Scope 1: Source of emission factors are referred from GHG protocol. For Scope 2: Emission factor for grid electricity is referred from Central Electricity Authority (CO Baseline database for Indian 2 power sector - Version 20.0, December 2024) Weighted Average Emission Factor for Grid electricity (RES): 0.727 *PPP conversion factor, GDP (National currency per international dollar) (Ref: International Monetary Fund website, www.imf.org) is as below • Conversion factor for FY 2024-25: 20.66 • Conversion factor for FY 2023-24: 20.43 5. 6. FY 2024-25 FY 2024-25 Units Units Parameter Parameter Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following format: 7. Metric tonnes of CO equivalent2 Metric tonnes of CO equivalent2 Metric tonnes of CO equivalent 2 per crore rupees of turnover 4088.7 MT 117,937.1 MT 7.10 MT / INR crore 146.70 MT / USD crore 34.79 MT / MMSCM gas sales NA 3,595.2 MT 104,330.3 MT 6.62 MT / INR crore 135.33 MT / USD crore 31.58 MT / MMSCM gas sales NA 98 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 99 Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency. Reasonable assurance has been carried out by M/s CNK & Associates LLP on the data reported in Principle-6, Essential indicator-7. 8. Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details. Reduction of Natural Gas emission in Operational & Maintenance Activities: GGL strives to lower the emissions of natural gas from its operations, either as part of a planned release or because of an unplanned leakage. The majority of these emissions are the result of unintentional releases brought on by third-party network damage, but certain emissions are the result of network failure itself. A smaller portion of these emissions are also the result of planned releases, which often occur during preventive maintenance or network / equipment commissioning activities. 1. GGL carries out various educational programs, utility coordination meetings, and campaigns such as dial before dig (detailed below) for third parties working in the same area as GGL with an aim to reduce these emissions. 2. Leak detection program including Lock pressure Test / leak detection survey to identify small leaks in network on a quarterly basis 3. Installation of Open Path leak detection and alarm system at all GGL CGS and Zero point Filtering, metering & Odorization stations (Tap-off stations) to identify and minimize leakages 4. Installation of Gas detectors at District Regulating station to identify and minimize leakages 5. Prompt emergency response to reported damage cases for fast isolation of the damaged section. 6. Isolation valves at regulator-defined distances to reduce emissions after isolation. 7. Effective patrolling of GGL pipeline network daily to prevent damages during third party excavation 8. Preventive maintenance plan and adherence to the same to reduce breakdown instances 9. An efficient commissioning procedure to reduce natural gas emissions, among other things. GGL tracks Natural Gas emissions per 10,000 scm of gas purchased cumulatively on a monthly basis in comparison to the previous fiscal year. Green Hydrogen Blending in PNG Network: GGL along with M/s NTPC had commissioned in 2023 India’s first Green H blending (5%) and further increased to 8% in 2 PNG distribution network at Kawas, Hazira and is successfully running. Hydrogen blended in Natural Gas is supporting de-carbonization since green hydrogen is not a GHG and hence volume of Methane replaced by hydrogen directly reduces GHG emission. This pilot project supplies blended gas to domestic & commercial connections of NTPC township. The project is also supporting to verify the feasibility assumptions and impact related to hydrogen blending such as safety, asset health/integrity, blending homogeneity, combustion and odorization etc. in PNG network. Solar Group Captive Project: GGL has planned to install around 15 MW of Solar Group Captive project to use the generated electricity for the Company Owned CNG stations in phase #1. An open tender was published and we have received good response from the bidders. This project is expected to bring estimated reduction in Scope-2 CO emission since Solar energy is environmental friendly power 2 generation and don’t produce greenhouse gases or emit carbon emissions during electricity generation. Upgradation of Daughter to Online Stations: GGL in this FY has upgraded 20 Daughter & Daughter Booster CNG stations into Online stations which will now be supplied gas through pipeline and therefore ultimately reducing 30 Mobile Cascade Vehicles & related fuel consumption, earlier required for transportation of gas from Mother CNG stations to these stations and also reducing electricity consumption to 4000 units per day ultimately leading to energy conservation. Set-up of small scale LCNG Station: New LCNG station has been set up and commissioned at Nalasopara, Thane GA. The station has daily average CNG Sales of around 23000 Kg/Day, and therefore has helped to reduce CNG MCV transportation trips. Commissioning this LCNG station has reduced around 63,000 Kms per month of truck/trailer movement and fuel consumption to achieve this sales volume compared to CNG Booster Stations which would otherwise be fed by Boisar Mother CNG Station. Use of light weight composite cylinders: Instead of steel cascade cylinder (3000/4500WLC capacity), GGL is using light weight composite cylinder (Type-III) (8800WLC/6600WLC – 353 nos.) for transportation of higher volume CNG from mother to daughter stations. Due to introduction of high volume MEGC cascade per station MCV vehicle requirement has reduced from 2.2 to 1.8. Switching to less polluting fuel: GGL through various outsourced agencies are running around 815 CNG Mobile Cascade Vehicle (MCV) for transporting CNG from Mother CNG stations to Daughter / Daughter booster CNG stations. All MCVs are now being run on CNG as fuel instead of Diesel hence reducing GHG. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 100 Provide details related to waste management by the entity, in the following format: 9. Total Waste generated (in metric tonnes) Plastic waste (A) 37.9 10.1 E Waste (B) 1.1 1.4 Bio medical waste (C) 0.0 0.0 Construction and Demolition Waste (D) 0.0 0.0 Battery Waste (E) 30.9 2.9 Radio-active waste (F) 0.0 0.0 Hazardous waste. - Used Oil 137.5 136.6 Non-hazardous waste generated (Glass, Metal, Paper, etc. (H) 388.6 260.1 (Break-up by composition i.e. by materials relevant to the sector) Total (A to H) (MT) 596.00 411.10 Waste intensity per rupee of turnover 0.035 MT / INR crore 0.025 MT / INR crore (Total waste generated / Revenue from operations) Waste intensity per rupee of turnover adjusted for 0.72 MT / USD crore 0.52 MT / USD crore Purchasing Power Parity (PPP)* (Total waste generated / Revenue from operations adjusted for PPP) Waste intensity in terms of physical output 0.17 MT / MMSCM 0.12 MT / MMSCM gas sales gas sales Waste intensity (optional) – the relevant metric may be selected NA NA by the entity FY 2023-24FY 2024-25Parameter *PPP conversion factor, GDP (National currency per international dollar) (Ref: International Monetary Fund website, www.imf.org) is as below • Conversion factor for FY 2024-25: 20.66 • Conversion factor for FY 2023-24: 20.43 For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations (in metric tonnes) Category of waste (i) Recycled 80.59 91.63 (ii) Re-used - - (iii) Other recovery operations - - Total 80.59 91.63 FY 2023-24FY 2024-25Parameter 2024-2025 th 13 ANNUAL REPORT Promoting Natural Gas as Cleaner Environment Friendly fuel PNG: GGL's business is the distribution of natural gas as a cleaner, more environmentally friendly fuel for domestic, industrial, and commercial use. GGL supplies natural gas to industries via its pipeline infrastructure as a cleaner alternative fuel to polluting fuels such as coal. GGL by virtue of its Natural Gas sales to industrial consumers reduces the burning of approximately 13499 Metric Tons of coal per day in FY 2024-25. CNG: GGL is influencing automobile users in its operational areas to use compressed Natural Gas as a clean automotive fuel through various campaigns. With the goal of promoting CNG, F-DODO scheme was also launched for developing CNG station infrastructure through Public-Private Partnership model (PPP) to provide potent solution to green mobility challenge. GGL has made it a priority to expand CNG transportation and dispensing infrastructure and facilities. In FY 2024-25,17 new CNG stations have been commissioned across GGL operational areas, and 49 stations have been upgraded to increase capacity. CNG is a popular alternative fuel because of its clean burning characteristics and low carbon emission in air. Natural gas helps to reduce the environmental impact of vehicular emissions caused by the use of other polluting fuels such as petrol and diesel. GGL by virtue of its CNG sales reduces the consumption of approximately 3029 Kilolitres of petrol per day in FY 2024-25. GGL recognizes and understands the various global challenges and risks related to environmental degradation and climate change as a responsible organization. Building awareness about these challenges and risks among employees and the community is an effective way to address them.
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GUJARAT GAS LIMITED 101 1 Dadra & Nagar Haveli GA 2 Thane & Palghar GA 3 Thane & Palghar GA Natural Gas distribution network by MDPE pipeline by GGL at UT of DNH - Environmental Clearance-reg.; File No.: J-11011/7/2019-IA- II(I), Issued by GOI-MEF&CC Natural Gas Distribution pipeline Network with associated facilities from Ambadi Naka at Bhiwadi Taluka, Thane District to Village Virar, Taluka Vasai, District Palghar of Maharashtra State (i.e. called Virar Spur Line) including Spur lines at Nala Sopara, Vasai, Kharpada, Sativali covering total length approx. 58.345 km with Diameters 6”/8”/12" - EC No. EC22A027MH171444 Dated 29.07.2022 Dahanu Taluka Pipeline Network: For total length 60 Kms (Steel Pipeline: Length:45.77 kms & 8"/12" Dia; MDPE Pipeline: Length 14.228 Kms with 125 MM, 90MM, 63 MM dia) with associated facilities - EC No. EC22A027MH117775 Dated: 21.06.2022 Yes Yes Yes Whether the conditions of environmental approval / clearance are being complied with? (Y/N) If no, the reasons thereof and corrective action taken, if any. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices adopted to manage such wastes. GGL is solely involved in services of distribution of Natural Gas through its network of pipelines designated as PNG and in compressed form for use in the transport sector designated as CNG. These operations generally do not have significant waste generation. However, GGL has established, implemented, and maintained a system of proper Waste Management: • to avoid, reduce or control (separately or in combination) the creation or discharge of any type of waste in order to reduce adverse environmental impacts • to reuse, refurbishing, recycle and dispose the waste • to segregate and handle the waste from generation to disposal stage effectively to comply with legal & statutory requirements • to protect the environment Waste generated in the form of used batteries, electronic waste, used oil from equipment such as compressors at GGL are sent to pollution control board approved vendors for either recycling or environment friendly disposal. All the emissions and waste generated by GGL are within the permissible limits of CPCB/SPCB. 10. Type of operationsSr.No. Location of operations/offices If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental approvals / clearances are required, please specify details in the following format: 11. For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes) Category of waste (i) Incineration - - (ii) Landfilling - - (iii) Other disposal operations 319.39 320.42 Total 319.39 320.42 FY 2023-24FY 2024-25Parameter Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency. Reasonable assurance has been carried out by M/s CNK & Associates LLP on the data reported in Principle-6, Essential indicator-9. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 102 12. Environmental Impact Assessment, Environmental Management Plan, Risk Assessment & Disaster Management Plan for Natural Gas Distribution pipeline network in UT of Dadra & Nagar Haveli i.e.: 1. Dapada-Khanvel connectivity-13.65 kms 2. Khanvel- Kherdi connectivity - 7.29 kms 3. Surangi-Kherdi connectivity- 5.8 kms Environmental Impact Assessment, Environmental Management Plan, Risk Assessment & Disaster Management Plan for Natural Gas Distribution Pipeline Network with associated facilities from Ambadi Naka at Bhiwadi Taluka, Thane District to Village Virar, Taluka Vasai, District Palghar of Maharashtra State (i.e., called Virar Spur Line) including Spur lines at Nala Sopara, Vasai, Kharpada, Sativali covering total length approx. 58.345 km with Diameters 6”/8”/12” Environmental Impact Assessment, Environmental Management Plan, Risk Assessment & Disaster Management Plan for Dahanu Taluka Pipeline Network: For total length 60 Kms (Steel Pipeline: Length:45.77 kms & 8"/12" Diameters; Medium- density polyethylene (MDPE) Pipeline: Length 14.228 Kms with 125 MM, 90MM, 63 MM diameter) with associated facilities 2006 2006 2006 Yes Yes Yes EIA carried out in Aug 2019 (Project under progress during current year) EIA carried out in Aug 2019 (Project under progress during current year) EIA carried out in Oct 2020 (Project under progress during current year) Yes, Public hearing was held Yes, Public hearing was held Yes, Public hearing was held Not Available Not Available Not Available Results communicated in public domain (Yes/No) Relevant Web link Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current financial year: Date Whether conducted by independent external agency (Yes/No) Name and brief details of project EIA Notification No. 13. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and rules thereunder (Y/N). If not, provide details of all such non-compliances, in the following format: Yes, GGL is compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act. There are no such incidences of non-compliances with such Laws & Regulations reported during the current year. Corrective action taken, if any Any fines / penalties / action taken by regulatory agencies such as pollution control boards or by courts Provide details of the non-compliance Specify the law / regulation / guidelines which was not complied with Sr.No. 2024-2025 th 13 ANNUAL REPORT Environmental Impact Assessment, Environmental Management Plan, Risk Assessment & Disaster Management Plan for Natural Gas Distribution pipeline network with associated facilities in UT of Dadra & Nagar Haveli for Kharadpada to Jhaveri Flexo, Vasona Char Rastha to Khanvel HP Petroleum Khanvel, Sili Fatak to Randhe Road Umarkiu, IMP Power Sayli & Siddhant Ispat, Jackson Industry to Athola and Dabur Industry Connectivity covering total length approx. 40.495 km with Diameters 6”/8” steel 125mm PE 2006 YesEIA is in progress In progress Not Available
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GUJARAT GAS LIMITED 103 Water withdrawal by source (in kilolitres) (i) Surface water (ii) Groundwater (iii) Third party water (iv) Seawater / desalinated water (v) Others Total volume of water withdrawal (in kilolitres) Total volume of water consumption (in kilolitres) Water intensity per rupee of turnover (Water consumed / turnover) Water intensity (optional) – the relevant metric may be selected by the entity i) Into Surface water - No treatment - With treatment – please specify level of treatment (ii) Into Groundwater - No treatment - With treatment – please specify level of treatment (iii) Into Seawater - No treatment - With treatment – please specify level of treatment (iv) Sent to third-parties - No treatment - With treatment – please specify level of treatment (v) Others - No treatment - With treatment – please specify level of treatment Total water discharged (in kilolitres) Considering that water is not used in the processes, nor it is discharged as industrial effluent as a result of the process, GGL does not have a Zero Liquid Discharge system. GGL Offices, City Gas Station & Compressed Natural Gas Stations only produce residential wastewater, which is disposed through the municipal or district sewer system, a soak pit, or gardening. No treatment is necessary for such a kind of water discharge. FY 2023-24FY 2024-25Parameter Leadership Indicators Water withdrawal, consumption and discharge in areas of water stress (in kilolitres): For each facility / plant located in areas of water stress, provide the following information: (i) Name of the area: • Corporate office of Gandhinagar • Offices, CNG & CGS stations of Dadra & Nagar Haveli (DNH), Gandhinagar, Kutch, Jalore, Sirohi, Ujjain, Dewas, Indore, Ratlam, Jhabua, Banswara, Dungarpur, Amritsar, Bathinda, Hoshiarpur, Gurdaspur, Sirsa, Fatehabad, Mansa, Ferozepur, Faridkot, Sri Muktsar Sahib. • Warehouses in Silvasa, Gandhinagar, Amritsar, Bathinda, Sirsa, Ratlam, Sirohi. (ii) Nature of operations: Corporate office, Site offices, CNG & CGD stations & Warehousing Operations (iii) Water withdrawal, consumption and discharge in the following format: (in kilolitres) 1. - 13,594.2 1095.8 - - 14,689.9 14,689.9 0.85 KL / INR crore - - 11,986.5 963.4 - - 12,949.9 12,949.9 0.78 KL / INR crore - Water discharge by destination and level of treatment (in kilolitres) Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency. No such independent assessment/evaluation/assurance is carried out by an external agency. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 104 Total Scope 3 emissions Metric tonnes 20224.4 19848.4 (Break-up of the GHG into CO , CH , N O, HFCs, PFCs, SF , NF , if available) 2 4 2 6 3 Total Scope 3 emissions per rupee of turnover Metric tonnes per 1.18 MT / INR crore 1.22 MT / INR crore Crore rupees of turnover Total Scope 3 emission intensity (optional) – NA NA the relevant metric may be selected by the entity FY 2023-24 Please provide details of total Scope 3 emissions & its intensity, in the following format: 2. FY 2024-25UnitsParameter With respect to the ecologically sensitive areas reported at Question 11 of Essential Indicators above, provide details of significant direct & indirect impact of the entity on biodiversity in such areas along-with prevention and remediation activities. Environmental Impact Assessment, Environmental Management Plan, Risk Assessment & Disaster Management Plan for Natural Gas Distribution pipeline network in UT of Dadra & Nagar Haveli, Virar Pipeline & Dahanu pipeline networks: There are no direct or indirect biological impacts of high significance rating related to GGL project, however direct or indirect biological impacts of moderate significance along with their prevention and remediation actions are explained below: 1. Removal of vegetation along the pipeline ROU 2. Removal of orchards along the Pipeline ROU Prevention & Remediation activities related to Environmental Impact Proposed pipeline will be laid along the existing road RoW under Public Works Department authority and will not pass through any dense forest area which is conducive for the existence of significant wildlife in such an area. As far as possible, minimum numbers of trees will be cut while laying pipeline. Removing vegetation outside ROU will be strictly prohibited. 10 times the number of trees for every tree cut planted as per guidelines the Ministry of Environment & Forests. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource efficiency, or reduce impact due to emissions / effluent discharge / waste generated, please provide details of the same as well as outcome of such initiatives, as per the following format: For Scope 3: Source of emission factors are referred from GHG protocol. Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency. No such independent assessment/evaluation/assurance is carried out by an external agency. 3. 4. Initiative undertaken 1. Plantation of Trees & Saplings as part of Work Environment Day/Week celebration 2. Promote digitalization As part of the celebration plan more than 3800 sapling/trees were planted across locations by GGL in FY 2024-25 In 2024-25, GGL along with GIPL have developed following automated module • QR based Attendance system implemented for GGL and contract employees which has eliminate the Biometric device dependencies and ease the attendance data collection form new offices. This has also helped to GGL for online tracking of contractor employee attendance. • Online OMS system implemented with quarterly KPI review and yearly employee performance assessment. • SPOT Bill application implemented with additional feature like OCR based meter reading. • Digitalize the process for empanelment of Vendors for Contractors Sapling / tree plantation benefitting environment The Digitalization of processes ia aimed to increase efficiency of employees, improve customer experience, enhance agility, minimize revenue loss. Details of the initiative (Web-link, if any, may be provided along-with summary) Outcome of the initiative Sr.No. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 105 3. Hydrogen Blending with Natural Gas for CGD: 4. Bio-gas injection into CNG system 5. Focus on upgradation of Daughter / Daughter Booster CNG Stations to Online GGL conducted assessments & tests on testing riser w.r.t. 15% H blending (without exposing the 2 customers to increased blending). The tests included Homogeneity Test of Blended gas, Burner behavior Test, Odor concentration Test etc. Results were satisfactory with no areas of concern. Quantitative risk assessment (desktop study) was done for PNG pipeline network with upto 15% H blending to understand the risks 2 involved due to higher blending levels for which the results were found within ALARP (As Low As Reasonably Practicable) levels. Material testing were also done for various network assets to establish any deteriorating effects on network health due to blended hydrogen exposure. All test results were satisfactory and same was also presented to industry regulator with proposal to increase blending%. GGL has kick-started the operation of off-taking supply of Biogas from Bio-gas suppliers into GGL PNG/CNG system at three new locations - Indore (UDI GA), Gurdaspur (H&G GA), Hoshiarpur (H&G GA) in this Financial year, taking the total tally of bio-gas off-take to seven. GGL has upgraded 20 Daughter & Daughter Booster CNG stations into Online stations which will now be supplied gas through pipeline instead of Mobile Cascade Vehicle (MCV) This pilot project also provides learnings to the industry and act as case model for future projects of H blending in PNG2 Hydrogen is not a greenhouse gas (GHG), nor does it produce GHGs when burned, making it a potential substitute for reducing the carbon intensity or pollution of some energy or fuel applications. Since Bio Gas is produced in the agricultural / food waste transformation process developed indigenously, this contributes to waste management and reduction of soil, air pollution & also provides boost to entrepreneurship, rural economy while supporting national commitment by reducing country’s dependency on imported fuel. Upgradation of these CNG stations has reduced movement of MCVs earlier required for transportation of gas from Mother CNG stations to these stations ultimately leading to energy conservation & reduction in environmental emissions 6. Solar Group Captive Project GGL has planned to install around 15 MW of Solar Group Captive project to use the generated electricity for the Company Owned CNG stations in phase #1. An open tender was published and we have received good response from the bidders. This project is expected to bring estimated reduction in Scope-2 Co emission by 2.1 lakh 2 tons per year. 2024-2025 th 13 ANNUAL REPORT Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link. In accordance with the PNGRB ERDMP regulations, 2010, amended in 2020, GGL has created ERDMP documents for each of its operational geographic areas, which cover scenarios where undesirable events can be foreseen or suspected. This is carried out to make GGL ready to respond appropriately to any unforeseen and unintentional accidents. The PNGRB empaneled Third Party Agency has audited and certified these documents, and GGL’s Board of Directors has duly approved them. GGL carries out testing of effectiveness of ERDMP through mock-drills covering various types of anticipated emergency scenarios. Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation or adaptation measures have been taken by the entity in this regard GGL is engaged in “Natural Gas” distribution to Domestic, Commercial, Industrial and Transport Consumers. Natural Gas being inherently a cleaner fuel is an environment friendly fuel. GGL products do not have any major adverse environmental impacts, however GGL has identified and assessed Environmental aspects related to each of its significant business activities / processes – pipeline construction, maintenance, natural gas compression etc. Further, GGL has taken adequate mitigation measures to minimize residual risks to as low as reasonably practicable or acceptable levels. 5. 6.
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GUJARAT GAS LIMITED 106 PRINCIPLE 7: Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent Essential Indicators This principle guides that it is the organisation’s duty to be transparent & responsible while being engaged in advocacy of any public policy. Being a government company GGL takes part in public policy advocacy, and it ensures that its policy advocacy positions promote fair competition, business growth and respect for human rights. a. Number of affiliations with trade and industry chambers/ associations. In FY 2024-25, GGL was part of 2 National trade and industry chambers/ associations which are given below. b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such a body) the entity is a member of/ affiliated to. Provide details of corrective action taken or underway on any issues related to anti-competitive conduct by the entity, based on adverse orders from regulatory authorities. 1. 2. 1. Association of CGD entities (ACE) National 2. Confederation of Indian Industry (CII). National Name of the trade and industry chambers/ associations Brief of the case Reach of trade and industry chambers/ associations (State/National) Corrective action taken Sr.No. Name of authority There have been no incidents of anti-competitive conduct, accordingly there are no issues that required corrective actions. Leadership Indicators 1. Provide details of public policy positions advocated by the entity 2024-2025 th 13 ANNUAL REPORT 1 High Level Expert Committee to recommend a way forward to ensure comprehensive consumer protection framework Email No As and when required NA Public policy advocatedSr.No. Method resorted for such advocacy Whether information available in public domain? Frequency of Review by Board (Annually/ Half yearly/ Quarterly / Others – please specify) Web Link, if available 2 High Level Committee on Vision 2040- Natural Gas infrastructure in India Email/ Meeting No As and when required NA 3 Round table discussion on adopting High Efficiency Domestic PNG Stoves Conference Yes As and when required https://pngrb.gov.in/pdf/press -note/PressRelease2024062 8.pdf Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental impacts. GGL has established SOP on Contractor Performance Assessment. The objective is to assess the performance of Contractors / Service providers in terms of compliance with all applicable GGL policies, processes, standards, procedures, guidelines, and other Contractual obligations related to Health, Safety & Environment which includes key aspects of the environmental impact created during work allotted to them. Contractor’s/Service provider’s performance data are captured on a monthly basis 7. How many Green Credits have been generated or procured: a. By the listed entity- Gujarat gas Limited - Nil b. By the top ten (in terms of value of purchases and sales, respectively) value chain partners – • Top value chain partner on Purchase side - Gujarat State Petroleum Corporation Limited - Nil 8.
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GUJARAT GAS LIMITED 107 2024-2025 th 13 ANNUAL REPORT 9 Insurance Policy for CGD Sector Email/ Meeting Yes As and when required https://pngrb.gov.in/pdf/public -notice/20250102_GG.pdf https://pngrb.gov.in/pdf/public -notice/20250102_MOM.pdf 10 Amendment to CGD Authorization regulation pertaining to natural gas volume threshold to be supplied by the CGD entity Email/ Meeting Yes As and when required https://pngrb.gov.in/pdf/public -notice/MOM_20241106.pdf 11 HLEC committee on the issue related to promoting competition and level playing field in gas transmission and distribution businesses Email/ Meeting No As and when required NA 12 Amendment to Levy of Fees and Other Charges regulations Email/ Meeting Yes As and when required https://pngrb.gov.in/pdf/public -notice/20250224_GGL.pdf 13 PNGRB (T4S for CGD) Second Amendment Regulations, 2025 Email/ Meeting No As and when required NA 14 Declaration of 71 CGD Networks as Common Carrier or Contract Carrier Email/ Meeting No As and when required NA 15 PNGRB (Imbalance Management Services) Amendment Regulations, 2025 Email/ Meeting Yes As and when required https://pngrb.gov.in/pdf/public -notice/20250324_GujaratG as.pdf 16 Amendment to CGD Authorization regulation pertaining to inclusion of MDPE Inch- km in MWP target for pipeline Email/ Meeting No As and when required NA 17 Amendment to PNGRB (T4S and IMS for CGD & NGPL and ERDMP) First Amendment Regulations, 2025 Email/ Meeting No As and when required NA 18 Guidelines for Road Transportation of Hazardous Petroleum Products, LPG, Natural Gas etc. Email/ Meeting No As and when required NA 19 Inclusion of Insurance Surety Bond as Security Instrument along with other instruments of Bid and Performance security. Email/ Meeting Yes As and when required https://pngrb.gov.in/pdf/public -notice/20250417_Gujarat_G as.pdf 5 Industry Committee member for standardization of Consumer Satisfaction Survey (CSS) and empanelment of Third-Party Agency (TPA) Email/ Meeting No As and when required NA 6 Declaration of GGL’s CGD network in 19 GAs as common carrier or contract carrier. Email/ Meeting No As and when required NA 7 5G implementation in the Indian downstream oil & gas industry Email No As and when required NA 8 Implementation of Formats for Force Majeure and Restoration Period Claim for CGD Entities Email/ Meeting Yes As and when required https://pngrb.gov.in/pdf/public -notice/MOM_20241008.pdf 4 Appointment of State Level Coordinator (SLC) (PNGRB) for the State of Gujarat Email/ Meeting Yes As and when required https://pngrb.gov.in/pdf/SLCs_ 20241008.pdf
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GUJARAT GAS LIMITED 108 PRINCIPLE 8: Businesses should promote inclusive growth and equitable development Section 135 of The Companies Act, 2013, on corporate social responsibility which asks for a specific attention on disadvantaged, vulnerable, and marginalized populations, serves as the foundation for this Principle. GGL tries to address the imbalance generated by unequal distribution of economic resources in society. Essential Indicators Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current financial year. 1. 1. Social Economic Impact assessment has been carried out for projects in ecological and social sensitive areas under Environmental Impact Assessment, Environmental Management Plan, Risk Assessment & Disaster Management Plan for Natural Gas Distribution pipeline network in UT of Dadra & Nagar Haveli i.e.: i. Dapada-Khanvel connectivity- 13.65 kms ii. Khanvel- Kherdi connectivity - 7. 29 kms; iii. Surangi-Kherdi connectivity- 5.8 km 2. Natural Gas Distribution pipeline Network with associated facilities from Ambadi Naka at Bhiwadi Taluka, Thane District to Village Virar, Taluka Vasai, District Palghar of Maharashtra State (i.e. called Virar Spur Line) including Spur lines at Nala Sopara, Vasai, Kharpada, Sativali covering total length approx. 58.345 km with Diameters 6”/8”/12" 3. Dahanu Taluka Pipeline Network: For total length of 60 Kms (Steel Pipeline: Length:45.77 kms & 8"/12" Diameter; MDPE Pipeline: Length 14.228 Kms with 125 MM, 90MM, 63 MM diameter) with associated facilities. 4. Environmental Impact Assessment, Environmental Management Plan, Risk Assessment & Disaster Management Plan for Natural Gas Distribution pipeline network with associated facilities in UT of Dadra & Nagar Haveli for Kharadpada to Jhaveri Flexo, Vasona Char Rastha to Khanvel HP Petroleum Khanvel, Sili Fatak to Randhe Road Umarkiu, IMP Power Sayli & Siddhant Ispat, Jackson Industry to Athola and Dabur Industry Connectivity covering total length approx. 40.495 km with Diameters 6”/8” steel 125mm PE NA NA Yes No NA NA NA Yes No NA NA NA Yes No NA NA NA Yes Report under NA progress Name and brief details of project Relevant Web link Whether conducted by independent external agency (Yes / No) Results communicated in public domain (Yes/No) Date of notification SIA Notification No. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 109 Describe the mechanisms to receive and redress grievances of the community. Addressing the grievances of community stakeholders involves structured mechanism to ensure prompt, fair and effective resolution. As the company is dedicated to upholding its commitment to social responsibility, GGL has been engaged in various CSR initiatives benefiting the broad spectrum of areas like health and nutrition, education, women's empowerment, the development of vocational skills, environmental protection, hygiene etc. for the community. GGL ensures that its projects are regularly monitored, evaluated, and impact assessments are carried out as per regulatory requirements to foster a positive and productive environment. GGL also has in place Grievance Redressal Policy for customers & communities which defines well-established mechanism to receive, address and timely resolve community grievances. Grievances can be submitted through multiple channels such as company website, social media platforms, or through online government portals - CPGRAM/INGRAM. Upon receipt, grievances are acknowledged as per applicable Standard Operating Procedures and is tracked till closure. Percentage of input material (inputs to total inputs by value) sourced from suppliers: 3. 4. Directly sourced from MSMEs/ small producers 24% 54% Directly from within India 100% 100% FY 2024-25 FY 2023-24 Leadership Indicators Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments (Reference: Question 1 of Essential Indicators above): 1. Natural Gas Distribution pipeline network in UT of Dadra & Nagar Haveli i.e.: 1. Dapada-Khanvel connectivity - 13.65 kms; 2. Khanvel- Kherdi connectivity - 7. 29 kms; 3. Surangi-Kherdi connectivity- 5.8 kms The following are the direct or indirect social economic impacts of high and moderate significance, as well as the prevention and remediation actions: A. Economic implication of loss of seasonal crops & plantations along pipeline ROU B. Limited Human habitation effected since no major habitation to exist within 50m of the ROU. • Caution exercised to prevent disrupting existing infrastructure along the pipeline path, such as telephone and electricity cables, water pipes, etc. • Payment for compensation acquisition of land for laying the pipeline as per Petroleum & Minerals Pipeline Act, 1962 (Right of User in Land). Details of negative social impact identified Corrective Action taken Notes: • Percentage (%) of input materials considers only capital & other Material procurements and doesn’t include Gas purchases. • Neither any global Tenders/ RFQ published nor directly imported any materials. Job creation in smaller towns – Disclose wages paid to persons employed (including employees or workers** employed on a permanent or non-permanent / on contract basis) in the following locations, as % of total wage cost - 5. Rural 3.46% 3.80% Semi-urban 8.37% 8.04% Urban 18.23% 17.18% Metropolitan 69.95% 70.98% Location FY 2023-24 (Place categorized as per RBI Classification System - rural / semi-urban / urban / metropolitan) ** Above disclosure of wages does not include details pertaining to other than permanent workers hired by GGL contractors FY 2024-25 2024-2025 th 13 ANNUAL REPORT Not applicable, GGL does not have any projects that involve Rehabilitation and Resettlement (R&R). Name of Project for which R&R is ongoing StateSr.No. District No. of Project Affected Families (PAFs) % of PAFs covered by R&R Amounts paid to PAFs in the FY (In INR) Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your entity, in the following format: 2.
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GUJARAT GAS LIMITED 110 Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as identified by government bodies: (a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising marginalized /vulnerable groups? (Yes/No). GGL being a Government Company is required to follow transparent and competitive bidding process for selecting the vendors as per GGL Contracts & Procurement Policy. No preference can be given to any suppliers including the ones from marginalized /vulnerable groups. (b) From which marginalized /vulnerable groups do you procure? Not applicable, as GGL procures goods based on the vendor selection policy through tenders. (c) What percentage of total procurement (by value) does it constitute? Not Applicable, as stated in 3(a) and 3(b) above. 2. 3. 1 Gujarat Dahod ` 33,894/- StateSr.No. Aspirational District Amount Spent (in Rs) Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the current financial year), based on traditional knowledge: Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes wherein usage of traditional knowledge is involved. 1. Trademarks Owned No NA There were no such disputes in FY 2024-25. 4. 5. Intellectual Property based on traditional Knowledge Owned/ Acquired (Yes/No) Name of authority Sr.No. Benefit shared (Yes/ No) Brief of the case Basis of calculating benefit share Corrective action taken Dahanu Taluka Pipeline Network: For total length 60 Kms (Steel Pipeline: Length:45.77 kms & 8"/12" Dia; MDPE Pipeline: Length 14.228 Kms with 125 MM, 90MM, 63 MM dia) with associated facilities Direct or Indirect Social Economic impacts of high & moderate significance along with their prevention and remediation actions as below: 1. Economic implication of loss of seasonal crops and plantations along pipeline ROU 2. Limited Human habitation effected since no major habitation to exist within 50m of the ROU GGL will contribute a minimum of 1% of the proposed cost to the public’s socioeconomic development. These activities consist of: • Renovations to schools include the installation of solar lighting, RO water, and environment friendly LED bulbs, First aid facilities, Improvements to restroom amenities • Health checkup camps at 7 villages in Dahanu taluka of Palghar district (Estimated budget - 10 lacs) • Community plantation in the school campus and public places of villages (Estimated budget - 10 lacs) 2024-2025 th 13 ANNUAL REPORT Virar Spur Line including Spur lines at Nala Sopara, Vasai, Kharpada, Sativali covering total length approx. 58.345 km with Diameters 6”/8”/12" Direct or Indirect Social Economic impacts of high & moderate significance as well as their prevention and remediation actions as below: A. Economic implication of loss of seasonal crops & plantations which is close to pipeline ROU B. Limited Human habitation effected since no major habitation to exist within 50m of the ROU GGL will contribute a minimum of 1% of the estimated cost (Rs.65 lacs) to the public’s socioeconomic development. These activities consist of: • First aid facilities and firefighting equipment in village schools • Drinking water facilities at villages in project area • Providing toilets in villages - Swachh Bharat abhiyan • Health checkup camp in schools/ villages • Community plantation.
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GUJARAT GAS LIMITED 111 Details of beneficiaries of CSR Projects:6. 1 Gas supply (free) to crematoriums in GGL’s operational areas Society at large NA 2 Prime Minister Internship Scheme – ` 10,000/- 4 Interns 100% CSR ProjectSr.No. No. of persons benefited from CSR Projects % of beneficiaries from vulnerable and marginalized groups 3 Industry responsive skill development training - GGL has imparted industry responsive skill development to needy and unemployed youth through M/s Aspire Disruptive Skill (ADS) Foundation. 500 100% 4 Construction completed for new building for Kanya Ashram Shala at Vapi. 191+ 100% 5 Construction & Development of Anganwadis across Gujarat – Construction of Pilot Anganwadis completed at three different locations of Gujarat viz. Karai, Dahod and Dediayapada. Khat Mahurat was done in the august presence of Honourable Chief Minister of Gujarat in January 2025. Call out has been issued for 201 Anganwadis in 8 districts of Gujarat. Society at large 100% 6 Micro Enterprise Development - Encouraging rural women to start economical activities at small scale to change their socio-economic status by ensuring sustainable living, Total women enterprises started till March 2025 are 171 along with 79 who have been selected after completion of training in Subir, Nazar and Kukurmunda.. 200 Women have been provided material support in Garbada and Nandod 171+ 100% 7 Custom Hiring Centres (CHCs) - Provide access to cost effective farm mechanization to the small & marginal women farmers at a reasonable rate and also to generate livelihood. Set up of 6 CHC Units in Subir, Nizar and Kukurmunda. In Kawant and Naswadi training sessions were organized by SFT at the block level for CHC committee members from both CHCs. The training aimed to build the capacities of committee members by enhancing their understanding of the objectives, functioning, and implementation processes under the CHC initiative. Society at large 100% 2024-2025 th 13 ANNUAL REPORT 8 Cattle Feed Unit - Increase income of women farmers and provision of quality feed for cattle through establishment of cattle feed unit. Machinery has been installed in Subir, Nizar and Kukurmunda for establishment of cattle feed unit. Order placed for procurement of machinery at Garbada and Ghoghamba Society at large 100% 9 Millet Based Value Chain - Increase income of women by developing value chain and processing unit for millet and other bakery related food items - 2 no. Millet based processing units(primary & value addition) set up in Naswadi, Kolamba Society at large 100% 10 Mangalam Canteen - These Canteens create sustainable livelihood and income generation through promotion of traditional food products & culinary skill of women, One canteen has started in Varahi village, Santalpur Taluka with footfall of approx. 30 people having lunch. Canteen location finalised in Subir, Nizar and Kukurmunda Society at large 100%
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GUJARAT GAS LIMITED 112 Turnover of products and/ services as a percentage of turnover from all products/service that carry information about: Number of consumer complaints in respect of the following: 2. 3. Environmental and social parameters relevant to the product Safe and responsible usage Recycling and/or safe disposal 100% 100% Not applicable, considering the nature of the Company’s operations. As a percentage to total turnover Details of instances of product recalls on account of safety issues:4. Voluntary recalls Forced recalls GGL distributes gas through pipelines, accordingly product recall disclosure is not applicable. Number Reasons for recall Describe the mechanisms in place to receive and respond to consumer complaints and feedback. Gujarat Gas consumers (PNG and CNG) can use several communication modes to register their grievances or complaints and provide suggestions concerning services provided by GGL in the areas of its operations. Consumers are offered a multichannel experience for submitting complaints or sharing feedback such as Customer Care Centers, Centralized Customer Call Centers, walk-in centers at each geographical area, GGL website, GGL mobile application, e-mails, Government portals such as Integrated Grievance Redressal Mechanism (INGRAM), Centralized Public Grievance Redress and Monitoring System (CPGRAM), State Wide Attention on Grievances through Application of Technology (SWAGAT) and GGL Social Media handles (Twitter, Facebook etc.). The team responds and resolves the issue in accordance with the company's SOP(s), guidelines, and complaint resolution process to ensure that the consumers’ grievances are being resolved and their feedback or suggestions are being considered as appropriate. GGL has established Grievance Redressal Policy for Customer & Community which governs aspects of receiving & responding to Consumer complaints & feedback. PRINCIPLE 9: Businesses should engage with and provide value to their consumers in a responsible manner Essential Indicators This Principle relates to the concept that the primary objective of a business is to create wealth by delivering high-quality goods or providing services to the customer base and keeping them satisfied. GGL understands its responsibility to cater the needs of its customers by delivering its product & services in the best possible manner. GGL has a system in place for engaging with the customers for raising its concerns and providing feedbacks and suggestions. 1. 2024-2025 th 13 ANNUAL REPORT Data privacy - - Nil - - Nil Advertising - - Nil - - Nil Cyber-security - - Nil - - Nil Delivery of essential services - - Nil - - Nil Restrictive Trade Practices - - Nil - - Nil Unfair Trade Practices - - Nil - - Nil Other 2,17,432 7,219 1,82,160 9,935 (Consumer Complaints) FY 2023-24 Remarks Pending resolution at end of year Received during the year Remarks FY 2024-25 Pending resolution at end of year Received during the year Complaints include issues like delay in gas connection, improper billing, wrong meter reading etc. Complaints include issues like delay in gas connection, improper billing, wrong meter reading etc.
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GUJARAT GAS LIMITED 113 6. Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If available, provide a web-link of the policy. Yes, GGL has a policy on Information Security which is in accordance with our objective to establish and enhance our preparedness for cyber security and reducing our exposure to information security related risks. Link to policy: https://www.gujaratgas.com/corporate-governance/brsrpolicies/ Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential services; cyber security and data privacy of Customers; re-occurrence of instances of product recalls; penalty / action taken by regulatory authorities on safety of products / services. GGL has not encountered any instances related to Cyber security, Data privacy of consumer, product recalls, and penalty/action by regulatory authority on safety of Product. However GGL has faced instance of suspicious communication sent to public on GGL’s behalf and in anticipation of preventing GGL customers & general public from fraudulent scammers posing as GGL representative/platform, following corrective & preventive actions have been taken related to such issue: • Banners rotating on GGL website titled “Beware of Fraud” • Caution advertisement for public awareness on false representation of Gujarat Gas by scammers, in Print media • Tab for “Enquiry for CNG Station” with warnings “Please beware of any fake emails/calls/other communications, asking for payment purportedly on behalf of Gujarat Gas Limited for setting of franchisee CNG stations.” • Scrolling warning messages warning customers regarding o Not share confidential details like net banking or UPI ID, card PIN, CVV, OTP etc. to anyone, since GGL will not ask for such details o To not allow any unauthorized person for inspection of PNG installation or Rubber Tube / Stove. 5. Provide the following information relating to data breaches: a. Number of instances of data breaches No such security incidents (data theft) have been reported by users in FY 2024-25 that led to data breaches of any of the stakeholders. The Information Security & data privacy policy is robust. GGL takes data security risks and concerns into account at every stage of our business operations. b. Percentage of data breaches involving personally identifiable information of customers No such incidences of data breach have been reported by users which involved the disclosure of stakeholder information. GGL, manages customer personal data with utmost care and security. We also ensure that the data is processed only for the specific & legitimate business objectives. c. Impact, if any, of the data breaches Not applicable considering no data breaches reported Leadership Indicators 1. Channels / platforms where information on products and services of the entity can be accessed (provide web link, if available). GGLWebsite: , GGL Mobile App and GGL Social Media Platforms i.e. Facebook, Instagram, https://www.gujaratgas.com Twitter and LinkedIn. 2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or services. GGL educates Consumers on proper and safe PNG handling. Customer awareness is done continuously from first interaction with Direct Marketing Agent (DMA), registration, conversion and thereafter through awareness sessions, Welcome mail, SMS updates, radio spots, Customer Service/Fire & Safety Camps, leaflet distribution and digital marketing. To inform Consumers about safe and responsible usage GGL distributes pamphlets at CNG stations, including installation of banners and hoardings at such stations. GGL endeavors to inform prospective and existing consumers about safe usage of products that it delivers to consumers. A variety of safety awareness programs, campaigns, leaflet distribution and digital marketing activities are carried out. For Industrial units, guidelines are in place for safe installations within the customer premise and customers have to submit certificates from PNGRB approved vendors for safety. Emergency numbers are displayed at all the gas installations of all customers. During FY 2024-25, around 1135 direct safety awareness sessions were held by GGL staff members for existing and new consumers, villages, societies, schools, and the general public 3. Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services. Yes, GGL informs its end consumers in case of any supply disruption, through messages to the impacted consumers. 4. Does the entity display product information on the product over and above what is mandated as per local laws? (Yes/No/Not Applicable) If yes, provide details in brief. Did your entity carry out any survey with regard to consumer satisfaction relating to the major products / services of the entity, significant locations of operation of the entity or the entity as a whole? (Yes/No) Yes, GGL displays product information in accordance with Petroleum & Natural Gas Regulation Board guidelines. Additionally, during the Diwali festival, safety advisories are printed in all local newspapers. Every new GGL customer is made aware of product information and safety aspects related awareness. Yes GGL carries out customer satisfaction survey for GGL's operating territories. 7. 2024-2025 th 13 ANNUAL REPORT For, Gujarat Gas Limited st Date: 1 July, 2025 Milind Torawane, IAS Place: Gandhinagar Managing Director
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GUJARAT GAS LIMITED Independent Reasonable Assurance Report on Business Responsibility and Sustainability Report Core KPIs of Gujarat Gas Limited To the Board of Directors Gujarat Gas Limited Gandhinagar – 382009, Gujarat, India We have undertaken to perform a Reasonable Assurance engagement on the Business Responsibility and Sustainability Report [hereinafter "BRSR”] ‘Core Key Performance Indicators (KPIs)’ for Gujarat Gas Limited, in accordance with the criteria stated below. st This assurance pertains to the BRSR of the company for the financial year ended 31 March 2025. Criteria The criteria used by the Company to prepare the Identified Sustainability Information is as per the guidelines issued by Securities and Exchange Board of India (SEBI) in accordance with the circulars: th - SEBI/HO/CFD/PoD2/CIR/P/2023/120 dated 11 July 2023 th - SEBI/HO/CFD/CFD-SEC-2/P/CIR/2023/122 dated 12 July 2023 and clarifications issued for the same. This engagement was conducted by a multidisciplinary team including assurance practitioners, social, governance and environmental experts. Identified Sustainability Information st The identified Sustainability Information for the financial year ended 31 March 2025 is summarised below as per Appendix 1; The areas for which Reasonable assurance is undertaken are also given in Appendix 1 to the report and st Our Reasonable Assurance engagement was with respect to the year ended 31 March 2025 information only unless otherwise stated and we have not performed any procedures with respect to earlier periods or any other elements included in the BRSR and, therefore, do not express any conclusion thereon. Management's Responsibility The Company's management is responsible for selecting or establishing suitable criteria for preparing the Sustainability Information, considering applicable laws and regulations, if any, related to reporting on Sustainability Information, Identification of key aspects, engagement with stakeholders, content, preparation and presentation of the Identified Sustainability Information in accordance with the Criteria. This responsibility includes design, implementation and maintenance of internal control relevant to the preparation of BRSR and the measurement of Identified Sustainability Information, which is free from material misstatement, whether due to fraud or error. Inherent Limitations The absence of a significant body of established practice on which to draw to evaluate and measure non-financial information allows for different, but acceptable, measures and measurement techniques and can affect comparability between entities. Our independence and Quality Control We have maintained our independence and confirm that we have met the requirements of Code of Ethics issued by Institute of Chartered Accountants of India (ICAI) and have the required competencies and experience to conduct this assurance engagement and The firm applies Standard on Quality Control (SQC) 1, "Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements" issued by the ICAI and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards, and applicable legal and regulatory requirements. Our Responsibility Our responsibility is to express a Reasonable assurance conclusion, as applicable and given in the Appendix 1 to this report on the Identified Sustainability Information based on the procedures we have performed and evidence we have obtained; We conducted our engagement in accordance with the Standard on Sustainability Assurance Engagements (SSAE) 3000, Assurance Engagements on Sustainability Information, issued by the Institute of Chartered Accountants of India (ICAI), and which is broadly aligned with the principles of the International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other Than Audits or Reviews of Historical Financial Information, issued by the International Auditing and Assurance Standards Board (IAASB). These standards require that we plan and perform our engagement to obtain reasonable assurance about whether the Identified Sustainability Information has been prepared, in all material respects, in accordance with the applicable Reporting Criteria. A reasonable assurance engagement involves assessing the risks of material misstatement of the Identified Sustainability Information whether due to fraud or error, responding to the assessed risks as necessary in the circumstances; The procedures we performed were based on our professional judgment and included inquiries, observation of processes performed, inspection of documents, evaluating the appropriateness of quantification methods and reporting policies, analytical procedures and agreeing or reconciling with underlying records.114 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Basis of Opinion: Given the circumstances of the engagement, in performing the procedures listed above, we: • Obtained an understanding of the identified sustainability indicators and related disclosures; • Obtained an understanding of the assessment criteria and their suitability for the evaluation and / or measurements of the identified sustainability indicators; • Made enquiries of Company's Management, including those responsible for Sustainability, Environment, Social, Governance (ESG), and those with responsibility for managing the Company's BRSR; • Obtained an understanding and performed an evaluation of the design of the key systems, processes and controls for managing, recording and reporting on the Identified Sustainability Indicators; • Based on that understanding, the risks that the selected information may be materially misstated and determining the nature, timing and extent of further procedures; • Checked the consolidation for 906 national locations and 62 corporate offices under the reporting boundary (as mentioned in the BRSR) for ensuring the completeness of data being reported; • Based on above understanding and the risks that the identified sustainability indicators may be materially misstated, determined the nature, timing and extent of further procedures; • Performed substantive testing on a sample basis of the Identified Sustainability Indicators of the offices and national locations located in Gandhinagar, Surat and Rajkot to verify that data had been appropriately measured with underlying documents recorded, collated and reported; • Assessed records and performed testing including recalculation of sample data; • Reviewed records and performed testing including recalculation of sample data; • Assessed the level of adherence to the 'Guidance note for BRSR format' issued by Securities and Exchange Board of India (SEBI) followed by the Company in preparing the BRSR Core KPIs; • Assessed the BRSR Core KPIs for detecting, on a test basis, any major anomalies between the information reported in the BRSR on performance with respect to agreed indicators and relevant source data/information and • Obtained representations from Company's Management. Exclusions: Our assurance scope excludes the following and therefore we do not express a conclusion on the same: • To provide a Limited assurance conclusion • Operations of the Company other than those mentioned in the “Scope of Assurance”; • Aspects of the BRSR and the data/information (qualitative or quantitative) other than the Identified Sustainability Information; • Data and information outside the defined reporting period i.e., Financial Year 2024-25 and • The statements that describe expression of opinion, belief, aspiration, expectation, aim, or future intentions provided by the Company. Opinion on the Reasonable Assurance Based on the procedures we have performed and the evidence we have obtained, the Identified Sustainability Information for the st financial year ended 31 March 2025 (as stated under "Identified Sustainability Information") are prepared in all material respects, in accordance with the criteria. Restriction on use Our Reasonable Assurance Report and conclusion have been prepared and addressed to the Board of Directors of Gujarat Gas Limited at the request of the company solely, to assist company in reporting on Company's core KPIs sustainability performance and activities. Accordingly, we accept no liability to anyone other than the company. Our Deliverables should not be used for any other purpose or by any person other than the addresses of our Deliverables. The firm neither accepts nor assumes any duty of care or liability for any other purpose or to any other party to whom our Deliverables are shown or into whose hands it may come without our prior consent in writing. 115 2024-2025 th 13 ANNUAL REPORT For C N K & Associates LLP Chartered Accountants Firm Registration Number: 101961 W/W – 100036 Himanshu Kishnadwala Partnernd Date: 22 July, 2025 Membership Number: 037391 Place: Mumbai UDIN: 25037391BMLFVZ9879
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GUJARAT GAS LIMITED 116 2024-2025 th 13 ANNUAL REPORT 1 Type of Assurance Appendix 1: Name of IndicatorIndicator NumberSr No. Section C - Principle 6 - Q7 ReasonableProvide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the given format 2 Section C - Principle 6 - Q3 ReasonableProvide details of the following disclosures related to water withdrawal, in the given format 3 Section C - Principle 6 - Q4 ReasonableProvide the following details related to water discharged 4 Section C - Principle 6 - Ql ReasonableDetails of total energy consumption (in Joules or multiples) and energy intensity, in the given format 5 Section C - Principle 6 - Q9 ReasonableProvide details related to waste management by the entity, in the given format 6 Section C - Principle 3 - Q1c ReasonableSpending on measures towards well-being of employees and workers (including permanent and other than permanent) in the given format 7 Section C - Principle 3 - Q11 ReasonableDetails of safety related incidents, in the given format 8 Section C - Principle 5 - Q3b ReasonableGross wages paid to females as % of total wages paid by the entity, in the given format 9 Section C - Principle 5 - Q 7 ReasonableComplaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, in the given format 10 Section C - Principle 8 - Q4 ReasonablePercentage of input material (inputs to total inputs by value) sourced from suppliers 11 Section C - Principle 8 - Q 5 ReasonableJob creation in smaller towns - Disclose wages paid to persons employed (including employees or workers employed on a permanent or non- permanent / on contract basis) in the given locations, as % of total wage cost 12 Section C - Principle 9 - Q 7 ReasonableProvide the following information relating to data breaches: a. Number Of instances of data breaches b. Percentage of data breaches involving personally identifiable information of customers c. Impact, if any, of the data breaches 13 Section C - Principle 1 - Q 8 ReasonableNumber of days of accounts payables (Accounts Payable * 365) / cost of goods/services procured) in the given format. 14 Section C - Principle 1 - Q 9 ReasonableOpen-ness of business Provide details of concentration of purchases and sales with trading houses, dealers, and related parties along with loans and advances & investments, with related parties, in the given format.
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GUJARAT GAS LIMITED Standalone Financial Statements 117 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED REPORT OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF THE COMPANIES ACT, 2013 ON THE STANDALONE FINANCIAL STATEMENTS OF GUJARAT GAS LIMITED FOR THE ST YEAR ENDED 31 MARCH 2025. The preparation of standalone financial statements of Gujarat Gas Limited for the year ended 31 March 2025 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 (Act) is the responsibility of the Management of the Company. The Statutory Auditors appointed by the Comptroller and Auditor General of India under Section 139(5) of the Act are responsible for expressing opinion on the financial statements under Section 143 of the Act based on independent audit in accordance with the standards on auditing prescribed under Section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 19 May 2025. I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the standalone financial statements of Gujarat Gas Limited for the year ended 31 March 2025 under Section 143(6)(a) of the Act. This supplementary audit has been carried out independently without access to the working papers of the Statutory Auditors and is limited primarily to inquiries of the Statutory Auditors and Company personnel and a selective examination of some of the accounting records. On the basis of my supplementary audit nothing significant has come to my knowledge which would give rise to any comment upon or supplement to Statutory Auditors' report under Section 143(6)(b) of the Act. For and on behalf of the Comptroller and Auditor General of India (Bijit Kumar Mukherjee) Accountant General (Audit-II), Gujarat Place: Ahmedabad Date: 01-08-2025 118 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED INDEPENDENT AUDITOR’S REPORT ON STANDALONE FINANCIAL STATEMENTS To The Members of Gujarat Gas Limited Report on the Audit of the Standalone Financial Statements Opinion We have audited the accompanying Standalone Financial Statements of Gujarat Gas Limited (herein after referred to as “the st Company”), which comprise the Standalone Balance Sheet as at 31 March, 2025, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows for the year ended on that date, and notes to the Standalone Financial Statements, including a summary of the material accounting policies and other explanatory information (herein after referred to as “the Standalone Financial Statements”). In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 (hereinafter referred to as “the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended, (hereinafter referred to as “Ind AS”) and other accounting st principles generally accepted in India, of the state of affairs of the Company as at 31 March, 2025, and its profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date. Basis for Opinion We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing (hereinafter referred to as “SAs”) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (hereinafter referred to as “ICAI”) together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Financial Statements. Key Audit Matter Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Financial Statements of the current period. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report. 119 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED INDEPENDENT AUDITOR’S REPORT ON STANDALONE FINANCIAL STATEMENTS Sr. No. Key Audit Matter Auditor’s Response 2 Contingent Liabilities Contingent Liabilities are for ongoing litigations and claims with various authorities and third parties. These relate to direct tax, indirect tax, claims and legal proceedings. Contingent liabilities are considered as key audit matters as the amount involved is significant and it also involves significant management judgement to determine possible outcome and future cash outflows of these disputes. Principal audit procedures performed included the following: - Evaluated the design of internal control. - For evaluation of operative effectiveness of internal control: • Verified samples of gas sales invoices with relevant agreements executed with the customers, accuracy of pricing, consumption quantity, tax amount of invoices of major types of customers. • Site visit to understand flow of data. - Performed analytical procedures to verify number of bills generated during the year for each major type of customers as per their respective billing cycle. - On sample basis, verified: • Up-dation of Daily Consumption Quantity of gas of Industrial customers in the billing system. • Up-dation of prices of gas for all major types of customers in the billing system. • Sales invoices. - Verified subsequent realisation, on test check basis, of invoices generated for the month of March 2025. - Evaluated the appropriateness of accounting policies, related disclosure made and overall presentation in the Standalone Financial Statements in terms of Ind AS-115. Principal audit procedure performed included the following: st - Obtained details of disputed claims as on 31 March, 2025 from the management. - Discussed with the management about the significant judgment considered in determining possible outcome and future cash outflows of these disputes. - Verified relevant documents related to disputes. - Evaluated the appropriateness of accounting policies, related disclosure made and overall presentation in the Standalone Financial Statements in terms of Ind AS 37. 120 1 Revenue recognition The Company is in the business of distribution of natural gas. The Company has major types of customers such as industrial, commercial, non- commercial, domestic and CNG (including oil marketing companies). Revenue from sale of natural gas is considered as key audit matter as there is a risk of accuracy of recognition and measurement of gas sales in the Standalone Financial Statements considering following aspects: - Different pricing structure for different types of customers and frequency of price change. - Voluminous number of customers. - Capturing Gas Consumption data in billing. - Estimating unbilled revenue at the year-end. - Extensive use of SAP and other IT systems for managing the billing operation. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED INDEPENDENT AUDITOR’S REPORT ON STANDALONE FINANCIAL STATEMENTS Information Other than the Standalone Financial Statements and Auditor’s Report Thereon The Company’s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board’s Report including Annexures to Board’s Report, Business Responsibility and Sustainability Report, Corporate Governance and Shareholder’s Information, but does not include the Standalone Financial Statements and our auditor’s report thereon. Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements, or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. When we read the Final Annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions as per applicable laws and regulations. Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing the Standalone Financial Statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The Board of Directors are responsible for overseeing the Company’s financial reporting process. Auditor’s Responsibilities for the Audit of the Standalone Financial Statements Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(I) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls. 121 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED INDEPENDENT AUDITOR’S REPORT ON STANDALONE FINANCIAL STATEMENTS • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of standalone the financial statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation. Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on Other Legal and Regulatory Requirements 1. As required by Section 143(3) of the Act, based on our audit we report that: a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books. c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account. d) In our opinion, the aforesaid Standalone Financial Statements comply with the Ind AS specified under Section 133 of the Act. th e) As the company is a Government Company, in terms of notification no. G.S.R. 463(E) dated 5 June, 2015, issued by the Ministry of Corporate Affairs, the sub-section (2) of section 164 of the Act is not applicable to the company. f) With respect to the adequacy of internal financial control over financial reporting of the company and the operating effectiveness of such controls, refer to our separate Report in terms of sub-sections (3) of Section 143 of the Act in “Annexure-A’. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial control over financial reporting. g) As the company is a Government Company, in terms of notification no. G.S.R. 463(E) dated 5th June 2015, issued by the Ministry of Corporate Affairs, the sub-section (16) of section 197 of the Act is not applicable to the company. h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us: 122 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED INDEPENDENT AUDITOR’S REPORT ON STANDALONE FINANCIAL STATEMENTS i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements – Refer Note 43 to the standalone financial statements. ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses. iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company. iv. (a) The management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person or entity, including foreign entity ("Intermediaries”), which the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; (b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; (c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e) of the Companies (Audit and Auditors) Rules, 2014, as provided under (a) and (b) above, contain any material misstatement. v. (a) The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable. (b) The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable. vi. Based on our examination, which included test checks, the Company has used accounting software for maintaining its st books of account for the financial year ended 31 March, 2025 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of the audit trail feature being tampered with and the audit trail has been preserved by the company as per the statutory requirements for record retention. 2. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the “Annexure–B”, a statement on the matters specified in the paragraph 3 and 4 of the order. 3. In terms of section 143(5) of the Act, we give our report in “Annexure–C” by taking into consideration the information, explanations and written representations received from the management on the matters specified in the directions and sub directions issued under the aforesaid section by the Comptroller and Auditor General of India. 123 For Ashok Chhajed & Associates Chartered Accountants Firm Registration No. – 100641W Naresh Bahroo Place: Gandhinagar Partnerth Date: 19 May, 2025 Membership No. – 117743 UDIN : 25117743BMIGQC7594 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED INDEPENDENT AUDITOR’S REPORT ON STANDALONE FINANCIAL STATEMENTS ANNEXURE–A TO THE INDEPENDENT AUDITOR’S REPORT (Referred to in paragraph 1 (f) under ‘Report on Other Legal and Regulatory Requirements’ section of our Independent Auditors st Report of even date on the standalone financial statements for the year ended 31 March, 2025 to the members of Gujarat Gas Limited) Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”). st We have audited the internal financial controls over financial reporting of Gujarat Gas Limited (“the Company”) as of 31 March, 2025 in conjunction with our audit of the Standalone financial statements of the Company for the year ended on that date. Management’s Responsibility for Internal Financial Controls The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (“ICAI’). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act. Auditor’s Responsibility Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) issued by ICAI and the Standards on Auditing (SA), prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting. Meaning of Internal Financial Controls over Financial Reporting A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Standalone Financial Statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Standalone Financial Statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the Standalone Financial Statements. Inherent Limitations of Internal Financial Controls over Financial Reporting Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting st with reference to standalone financial statements were operating effectively as at 31 March, 2025, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. 124 For Ashok Chhajed & Associates Chartered Accountants Firm Registration No. – 100641W Naresh Bahroo Place: Gandhinagar Partnerth Date: 19 May, 2025 Membership No. – 117743 UDIN : 25117743BMIGQC7594 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED INDEPENDENT AUDITOR’S REPORT ON STANDALONE FINANCIAL STATEMENTS ANNEXURE-B TO THE INDEPENDENT AUDITOR'S REPORT (Referred to in paragraph 2 under "Report on Other Legal and Regulatory Requirements” section of our Independent Auditors Report st of even date on the standalone financial statements for the year ended 31 March, 2025 to the members of Gujarat Gas Limited) Report on the Companies (Auditor’ Report) Order, 2020, issued by the Central Government of India in terms of section 143 (11) of the Companies Act, 2013 (‘the Act’) of Gujarat Gas Limited (‘the Company’). To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state that (i) (a) A. The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment including right of use assets. B. The Company has maintained proper records showing full particulars of intangible assets. (b) As per information and explanations given to us and the records of the company examined by us, the Property, Plant and Equipment have been physically verified by the Management during the year to cover all the items, other than underground gas pipelines and connection equipments which are not physically verifiable, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies have been noticed on such physical verification. (c) According to the information and explanations given to us and on the basis of our examination of the records of the Company provided to us, we report that, the title in respect of self-constructed buildings and title deeds of all other immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee), disclosed in the financial statements are held in the name of the Company as at the balance sheet date except in respect of following immovable properties: 125 Description of properties Gross carrying value as at Balance Sheet date Held in name of Whether promoter, director or their relative or employee Period held Reason for not being held in name of Company Freehold Land at Hazira Freehold Land at Mora, Surat Freehold Land at Ichchhapur Hazira ` 15.88 crore ` 1/- ` 21.35 crore Government of Gujarat Government of Gujarat Erstwhile entity GSPC Gas Co. Ltd. Promoter Promoter NA Held since st 01 May, 1999 Held since th 05 April, 2002 Held since st 01 April, 2006 Disputed Disputed Transfer of name in favour of the Company is to be completed (d) The company has not revalued any of its Property, Plant and Equipment (including Right of Use assets) and intangible assets during the year. st (e) No proceedings have been initiated during the year or are pending against the Company as at 31 March, 2025 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder. (ii) (a) According to the information made available and based on the records examined by us, the inventories have been physically verified by the management at reasonable intervals except natural gas in pipelines / cascades / tanks which are not physically verifiable. In our opinion the coverage and procedure of such physical verification by the management is appropriate having regard to the size of the company and nature of its business. No material discrepancies were noticed on such physical verification. (b) The company has not been sanctioned working capital limits in excess of five crore rupees, in aggregate, at any point of time during the year, from any Bank / Financial Institution on the basis of security of current assets and hence reporting under clause 3(ii) (b) of the Order is not applicable. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED INDEPENDENT AUDITOR’S REPORT ON STANDALONE FINANCIAL STATEMENTS 126 (iii) In respect of investment made, guarantee or security provided and granted any loans or advances in nature of loans: During the year, the Company has not made any investments in any company, firm, Limited Liability Partnership or any other party. Based on our audit procedures and according to the information and explanation given to us, the Company has not, provided any guarantee or security or advances in the nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties. (a) During the year, the Company has granted unsecured loans to other parties (employees of the Company) in respect of which: (i) Based on the audit procedures carried out by us and as per the information and explanations given to us, the Company has not granted loans or advances and guarantees or security to subsidiaries, joint ventures and associates. (ii) During the year, aggregate amount of loan provided to employees is ` 1.68 crores and balance outstanding at the balance sheet date is ` 3.58 crores. (b) In our opinion, terms and conditions of loans given, during the year, prima facie, are not prejudicial to the interest of the Company. (c) In respect of loans granted by the Company, the schedule of repayment of principal and payment of interest, wherever applicable, have been stipulated and the repayments of principal amounts and receipts of interest have generally been regular as per stipulation. (d) In respect of loans granted by the Company, there is no overdue amount remaining outstanding as at the balance sheet date. (e) According to the information and explanations given to us, no loan granted by the Company which has fallen due during the year, has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties. (f) According to the information and explanations given to us, the Company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment during the year. Hence, reporting under clause 3(iii)(f) is not applicable. (iv) According to information and explanation given to us, company has not given any loan, investment, guarantee or security in connection with a loan during the year to any person covered under sections of Section 185 and 186 of Companies Act, 2013. Hence, reporting under clause 3(iv) of the Order does not apply to that extent. (v) According to the information and explanations given to us, the Company has not accepted any deposits from public in terms of section 73 to 76 or any other relevant provisions of Companies Act and rule made there under. Hence, reporting under clause 3(v) of the Order is not applicable. (vi) We have broadly reviewed the books of account maintained by the Company in respect of products (Natural Gas) pursuant to the rules made by the Central Government of India, where the maintenance of cost records has been prescribed under subsection (1) of Section 148 of the Act, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records with a view to determine whether they are accurate or complete. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues, including goods and service tax, value added tax, excise, provident fund, employee’s state insurance, income tax, and other material statutory dues, as applicable, to it during the year with appropriate authorities. As explained to us, the Company did not have any dues on account of duty of customs. In our opinion, no undisputed amounts payable in respect of statutory dues as applicable were in arrears / outstanding as at st 31 March, 2025 for a period of more than six months from the date they became payable. (b) According to the information and explanations given to us and as per our verification of records of the Company, the details of statutory dues referred to in sub clause (a) above which have not been deposited with the appropriate authorities as at st 31 March, 2025 on account of disputes or deposited under protest and the forum where the dispute is pending, are given below: 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED INDEPENDENT AUDITOR’S REPORT ON STANDALONE FINANCIAL STATEMENTS 127 (*) Figure in ` 0.00 denotes amount less than ` 50,000/-. Name of statute Nature of dues Period for which the amount relates Forum where the dispute is pending Gross disputed amount (` in crores) Amount deposited under protest / adjusted (` in crores) Amount not deposited (` in crores) Income Tax Act, 1961 Income Tax & Interest thereon Financial Year 2007–08 Assessing Officer 0.07 - 0.07 Income Tax Act, 1961 Income Tax & Interest thereon Financial Year 2011–12 Assessing Officer 0.00(*) - 0.00(*) Income Tax Act, 1961 Income Tax & Interest thereon Financial Year 2012–13 Assessing Officer 0.04 - 0.04 Wealth Tax Act, 1957 Wealth Tax Financial Year 2013–14 Assessing Officer 0.02 - 0.02 Income Tax Act, 1961 Income Tax & Interest thereon Financial Year 2014-15 Commissioner of Income Tax (Appeals) 0.18 - 0.18 Income Tax Act, 1961 Income Tax & Interest thereon Financial Year 2013-14 Commissioner of Income Tax (Appeals) 16.64 0.54 16.10 Income Tax Act, 1961 Income Tax & Interest thereon Financial Year 2010-11 Commissioner of Income Tax (Appeals) 0.06 - 0.06 Income Tax Act, 1961 Income Tax & Interest thereon Financial Year 2009-10 Commissioner of Income Tax (Appeals) 0.68 - 0.68 Income Tax Act, 1961 Income Tax & Interest thereon Financial Year 2008-09 Commissioner of Income Tax (Appeals) 0.52 - 0.52 Income Tax Act, 1961 Income Tax & Interest thereon (TDS Matters) Financial Year 2007-08, 2016- 17, 2017-18, 2023-24 & 2024-25 Assessing Officer 0.00(*) - 0.00(*) Central Excise Act, 1944 Service Tax and Duty of Excise Financial Years 2010–11 to 2014–15 The Customs, Excise and Service Tax Appellate Tribunal 11.86 4.14 7.72 Central Excise Act, 1944 Service Tax and Duty of Excise Financial Years 2009-10 to 2014-15 (up to Aug-2014) The Customs, Excise and Service Tax Appellate Tribunal 3.81 0.08 3.73 Central Excise Act, 1944 Service Tax and Duty of Excise Sept-2014 to th 14 May, 2015 The Customs, Excise and Service Tax Appellate Tribunal 0.98 - 0.98 Central Excise Act, 1944 Service Tax and Duty of Excise May’ 10 (2010- 11) to February-nd 2016 (up to 02 February, 2016) Excise and Service Tax commissioner 1.95 - 1.95 Finance Act, 1944 Service Tax and Duty of Excise Financial Years 2005-06 to 2012-13 The Customs, Excise and Service Tax Appellate Tribunal 37.65 13.00 24.65 Goods and service tax Act, 2017 Service Tax and Duty of Excise Financial Year 2017-18 Commissioner (Appeals) CGST and Central Excise 12.47 0.37 12.10 Goods and service tax Act, 2017 Service Tax and Duty of Excise Financial Year 2017-18 Commissioner (Appeals) CGST and Central Excise 2.81 0.07 2.74 Goods and service tax Act, 2017 Service Tax and Duty of Excise Financial Year 2017-18 Asst. Commissioner CGST and Central Excise 0.52 0.01 0.51 Goods and service tax Act, 2017 Goods and Service Tax Financial Year 2020-21 Commissioner of SGST 0.46 - 0.46 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED INDEPENDENT AUDITOR’S REPORT ON STANDALONE FINANCIAL STATEMENTS 128 (viii) (a) On our verification and based on the information made available to us, the Company does not have any transactions related to previously unrecorded income in the books of the account that have been surrendered or disclosed as income during the year in the tax assessments under Income Tax Act, 1961. (ix) (a) As per the information made available and based on our verification, the Company has not defaulted in repayment of loan or other borrowings and payment of interest thereon to any lender. (b) The Company has not been declared willful defaulter by any bank or financial institution or other lender. (c) The Company has not taken any term loan during the year and therefore, reporting under clause 3(ix)(c) of the Order is not applicable. (d) On an overall examination of the Standalone Financial Statements of the Company, funds raised on short-term basis have, prima facie, not been used during the year for long-term purposes by the Company. According to the information and explanation given to us, as Company is engaged in the business of supply of natural gas, being public utility, security deposits from the customers, though shown as current liability, the company does not consider the same as short-term funds. (e) On an overall examination of the Standalone Financial Statements of the Company, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its associate. (f) The Company has not raised any loans during the year on pledge of securities held in its subsidiary / associate and therefore reporting on clause3(ix)(f) of the Order is not applicable. (x) (a) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year. Therefore, paragraph 3 (x)(a) of the Order is not applicable. (b) During the year, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully or partly or optionally) and hence reporting under clause 3(x)(b) of the Order is not applicable. (xi) (a) According to the information and explanation provided to us and as represented by the Management and based on our examination of books and records of the Company, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year. (b) No report under sub-section 12 of section 143 of the Act has been filed in Form ADT – 4 as prescribed under rule 13 of the Companies (Audit and Auditors) Rules, 2014 with the Central Government of India, during the year and up to the date of this report. (c) As represented to us by the Management, there are no whistle blower complaints received by the Company during the year. (xii) The Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable. (xiii) In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 with respect to applicable transactions with the related parties and details of such transactions have been disclosed in the Standalone Financial Statements as required by the applicable accounting standards. (xiv) (a) In our opinion, the Company has adequate internal audit system commensurate with size and nature of its business. (b) We have considered, the internal audit reports for the year under audit, issued to the Company during the year till date, in determining the nature, timing and extent of our audit procedures. (xv) In our opinion and according to the information and explanations given to us, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable. (xvi) (a) As per the information and explanations given to us, in our opinion, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under clause 3(xvi)(a) and (b) of the Order is not applicable. The Company is not a Core Investment Company (CIC) as defined in the regulation made by the Reserve bank of India. Accordingly, reporting under paragraph (xvi) (c) of the Order is not applicable. (b) The group does not have any CIC as part of the group during the year and as on balance sheet date. Hence, reporting under clause 3(xvi)(d) of the Order is not applicable. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED INDEPENDENT AUDITOR’S REPORT ON STANDALONE FINANCIAL STATEMENTS 129 (xvii) The company has not incurred any cash losses during the financial year covered by our audit and immediately preceding financial year. (xviii) There has been no resignation of the statutory auditors of the Company during the year. (xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the Standalone Financial Statements and our knowledge of the Board of Directors and Management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due. (xx) a) There are no unspent amounts towards Corporate Social Responsibility (herein after referred as “CSR”) on other than ongoing projects requiring a transfer to a Fund specified in Schedule VII to the Companies Act in compliance with second proviso to sub-section (5) of Section 135 of the said Act. Accordingly, reporting under clause 3(xx)(a) of the Order is not applicable for the year. b) In respect of ongoing projects, the Company has transferred unspent CSR amount as at the end of the previous financial year and current financial year to a special account within a period of 30 days from the end of the said financial year and current financial year respectively in compliance with the provision of section 135(6) of the Act. For Ashok Chhajed & Associates Chartered Accountants Firm Registration No. – 100641W Naresh Bahroo Place: Gandhinagar Partner Date: May 19, 2025 Membership No. – 117743 UDIN : 25117743BMIGQC7594 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED INDEPENDENT AUDITOR’S REPORT ON STANDALONE FINANCIAL STATEMENTS ANNEXURE–C TO THE INDEPENDENT AUDITOR’S REPORT (Referred to in paragraph 3 under "Report on Other Legal and Regulatory Requirements” section of our Independent Auditors Report st of even date on the standalone financial statements for the year ended 31 March, 2025 to the members of Gujarat Gas Limited) Report on directions and sub directions issued by the Comptroller and Auditor General of India Based on the audit procedures performed and taking into consideration the information, explanations and written representations given to us by the management in the normal course of audit, we report to the best of our knowledge and belief that: 130 Sr. No. Impact on accounts and financial statements Auditor’s responseDirections / Sub-directions issued by Comptroller and Auditor General of India 1 Whether the company has system in place to process all the accounting transactions through IT system? If no, the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications, if any, may be stated 2 Whether there is any restructuring of an existing loan or cases of waiver / write off of debts / loans / interest etc. made by a lender to the company due to the company’s inability to repay the loan? If yes, the financial impact may be stated. Whether such cases are properly accounted for? (In case, lender is a Government company, then this direction is also applicable for statutory auditor of lender company). 3 Whether funds (grants/subsidy etc.) received / receivable for specific schemes from Central / State Government or its agencies were properly accounted for / utilized as per its term and conditions? List the cases of deviation. 4 Whether the Company’s pricing policy absorbs all fixed and variable cost of production and the overheads allocated at the time of fixation of price? 5 Whether the Company recovers commission for work executed on behalf of Government / other organizations that is properly recorded in the books of accounts? Whether the Company has an efficient system for billing and collection of revenue? The Company has system in place to process all the accounting transactions through IT System i.e. SAP. We have not come across any accounting transaction outside the SAP system. There are no cases of restructuring of any existing loan or any waiver of loan / debt / interest during the year. In our opinion and according to the information and explanations given to us, there are no cases of receipt of grants /subsidy from Central / State Government or its agencies. In our opinion and according to the information and explanations given to us, the Company has a pricing policy and the Company’s pricing policy is considering all fixed and variable cost of production / supply of natural gas and the overheads allocated at the time of fixation of price. The Company has not undertaken any work or project on behalf of Government / other organizations. However, for other business activities, the Company has SAP system in place for billing and accounting for collection of revenue. The Company has policy and procedure in place for effective monitoring of credit exposure and recovery of dues from its customers in respect of its sales activities. No impact Not Applicable Not Applicable No impact Not Applicable No impact Sub – directions – Service Sector Directions 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED INDEPENDENT AUDITOR’S REPORT ON STANDALONE FINANCIAL STATEMENTS 131 Sr. No. Impact on accounts and financial statements Auditor’s responseDirections / Sub-directions issued by Comptroller and Auditor General of India 6 Whether the Company regularly monitors timely receipt of subsidy from Government and it is properly recording them in its books? 7 Whether interest earned on parking of funds received for specific projects from Government was properly accounted for? 8 Whether the Company has entered into Memorandum of understanding with its Administrative Ministry, if so, whether the impact thereof has been properly dealt with in the financial statements? 9 Whether the company has an effective system for recovery of dues in respect of its sales activities and the dues outstanding and recoveries there against have been properly recorded in the books of accounts? 10 Whether the company has effective system for physical verification, valuation of stock, treatment of non-moving items and accounting the effect of shortage / excess noticed during physical verification? 11 The effectiveness of the system followed in recovery of dues in respect of sale activities may be examined and reported. In our opinion and according to the information and explanations given to us, there are no cases of receipt of subsidy from Government. According to the information and explanations given to us, we have not come across any cases of receipt of fund for any projects from Government. During the year, according to the information and explanations given to us, the Company has not entered into Memorandum of understanding with its Administrative Ministry. The Company has a policy and procedure for effective monitoring of credit exposure and recovery of dues from its customers in respect of its sales activities. In our opinion and according to the information and explanation given to us, the recoveries against the dues have been properly recorded in the books of accounts. In our opinion and according to the information and explanations given to us, the procedures and systems, in relation to physical verification of inventories, valuation of stock, treatment of non-moving items and accounting the effect of shortage / excess noticed during physical verification, are reasonable and adequate in relation to the size of the Company and the nature of its business. In our opinion and according to the information and explanations given to us, the Company has a policy and procedure for effective monitoring of credit exposure and recovery of dues from its customers in respect of its sales activities. There are no significant instances of its failure observed during the year under audit. st Allowance for bad and doubtful debts as on 31 March, 2025 is ` 24.99 Crore based on expected credit loss model. Not Applicable Not Applicable Not Applicable No impact Impact taken into account in the financial statements Impact taken into account in the financial statements Sub – Directions – Trading For Ashok Chhajed & Associates Chartered Accountants Firm Registration No. – 100641W Naresh Bahroo Place: Gandhinagar Partnerth Date: 19 May, 2025 Membership No. – 117743 UDIN : 25117743BMIGQC7594 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED ST STANDALONE BALANCE SHEET AS AT 31 MARCH, 2025 (` in Crores) Particulars Note As at As atst st No. 31 March, 2025 31 March, 2024 I. ASSETS 1 Non-Current Assets (a) Property, plant and equipment 3.1 7,272.02 6,971.87 (b) Capital work in progress 3.2 823.81 899.56 (c) Investment property 4 12.06 1.30 (d) Intangible assets 5.1 539.09 537.37 (e) Intangible assets under development 5.2 15.10 18.44 (f) Right-of-use assets 5.3 384.37 252.24 (g) Financial assets (i) Investment in associates 6 0.03 0.03 (ii) Investments 7 135.60 135.04 (iii) Loans 8 1.32 2.22 (iv) Other financial assets 9 99.42 104.47 (h) Other non-current assets 10 367.11 507.00 Total Non-Current Assets 9,649.93 9,429.54 2 Current Assets (a) Inventories 11 61.86 58.67 (b) Financial Assets (i) Investments - - (ii) Trade receivables 12 1,023.97 1,029.84 (iii) Cash and cash equivalents 13 326.86 915.98 (iv) Bank balances other than (iii) above 14 32.54 10.14 (v) Loans 15 2.25 2.99 (vi) Other financial assets 16 1,298.64 12.83 (c) Other current assets 17 219.07 198.36 Total Current Assets 2,965.19 2,228.81 TOTAL ASSETS 12,615.12 11,658.35 II. EQUITY AND LIABILITIES 1 Equity (a) Equity share capital 18 137.68 137.68 (b) Other Equity 19 8,315.97 7,551.58 Total Equity 8,453.65 7,689.26 2 Liabilities Non-Current Liabilities (a) Financial Liabilities (i) Borrowings 20 - - (ii) Lease Liabilities 21 115.16 117.77 (b) Provisions 22 47.11 52.58 (c) Deferred tax liabilities (Net) 23 958.88 910.75 (d) Other non-current liabilities 24 75.99 73.05 Total Non-Current Liabilities 1,197.14 1,154.15 Current Liabilities (a) Financial Liabilities (i) Borrowings 25 - - (ii) Lease Liabilities 21 34.82 32.49 (iii) Trade payables 26 Total outstanding dues of micro enterprises and small enterprises 65.18 51.17 Total outstanding dues of creditors other than micro enterprises 654.76 649.04 and small enterprises (iv) Other financial liabilities 27 1,987.17 1,908.19 (b) Other current liabilities 28 167.07 140.59 (c) Provisions 29 27.92 26.83 (d) Current Tax Liabilities (Net) 30 27.41 6.63 Total Current Liabilities 2,964.33 2,814.94 Total Liabilities 4,161.47 3,969.09 TOTAL EQUITY AND LIABILITIES 12,615.12 11,658.35 See accompanying notes to the financial statements (1-59) As per our report attached For and on behalf of Board of Directors of Gujarat Gas Limited For Ashok Chhajed & Associates Chartered Accountants ICAI Firm Reg. No. – 100641W Pankaj Joshi, IAS Milind Torawane, IAS Balwant Singh, IAS (Retd.) Chairman Managing Director Director Naresh Bahroo DIN - 01532892 DIN - 03632394 DIN- 00023872 Partner M. No. : 117743 Rajesh Sivadasan Sandeep Dave Chief Financial Officer Company Secretary Place : Gandhinagar Place : Gandhinagar th th Date : 19 May, 2025 Date : 19 May, 2025 132 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED ST STANDALONE STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH, 2025 (` in Crores) Particulars Note For the year ended For the year ended st st No. 31 March, 2025 31 March, 2024 Income I. Revenue from Operations 31 17,184.97 16,292.97 II. Other income 32 209.97 107.75 III. Total Income (I+II) 17,394.94 16,400.72 IV. Expenses Cost of materials consumed / Purchase of stock in trade 33 13,219.87 12,555.40 Changes in inventories of natural gas 34 (3.89) 0.25 Employee Benefits Expenses 35 189.30 198.88 Finance Costs 36 32.49 29.31 Depreciation and Amortization Expenses 37 510.64 474.30 Excise Duty 698.02 602.78 Other Expenses 38 1,201.91 1,059.28 Total Expenses (IV) 15,848.34 14,920.20 V. Profit Before Exceptional Items and Tax(III-IV) 1,546.60 1,480.52 VI. Exceptional Items (Income) / Expense 39 - (55.69) VII. Profit Before Tax (V-VI) 1,546.60 1,536.21 VIII. Tax expense: 40 Current Tax 352.60 331.50 Deferred Tax 48.49 61.94 Total Tax Expense (VIII) 401.09 393.44 IX. Profit for the period(VII-VIII) 1,145.51 1,142.77 X. Other comprehensive income 41 (i) Items that will not be reclassified to profit or loss 8.15 11.38 (ii) Income tax related to items that will not be reclassified 0.36 (2.72) to profit or loss Total other comprehensive income (X) 8.51 8.66 XI. Total comprehensive income for the period(IX+X) 1,154.02 1,151.43 Earnings per equity share of Face Value of ` 2 each 42 Basic 16.64 16.60 Diluted 16.64 16.60 See accompanying notes to the financial statements (1-59) 133 As per our report attached For and on behalf of Board of Directors of Gujarat Gas Limited For Ashok Chhajed & Associates Chartered Accountants ICAI Firm Reg. No. – 100641W Pankaj Joshi, IAS Milind Torawane, IAS Balwant Singh, IAS (Retd.) Chairman Managing Director Director Naresh Bahroo DIN - 01532892 DIN - 03632394 DIN- 00023872 Partner M. No. : 117743 Rajesh Sivadasan Sandeep Dave Chief Financial Officer Company Secretary Place : Gandhinagar Place : Gandhinagar th th Date : 19 May, 2025 Date : 19 May, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED (` in Crores) Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 A. CASH FLOW FROM OPERATING ACTIVITIES Net Profit Before Tax 1,546.60 1,536.21 Adjustments for: Depreciation and Amortization Expenses 510.64 474.30 Loss on sale / write-off of Fixed Assets including provisions (net) 8.94 2.91 Profit on sale as scrap (0.88) (0.98) Provision for loss on diminution in value of Inventory 6.11 0.09 Profit on Lease termination / modification / reassessment (net) - (0.02) Bad Debts Written Off 1.23 - Provision for Doubtful Trade Receivables / Advances / Deposits 29.45 4.83 Profit from sale of investment - (0.06) Finance Costs 32.49 29.31 Provision/liability no longer required written back (27.27) (4.84) Dividend Income (1.68) (1.64) Interest Income (142.64) (63.26) Operating Profit before Working Capital Changes 1,962.99 1,976.85 Adjustments for changes in Working Capital (Increase)/Decrease in Trade Receivables 0.94 (10.24) (Increase)/Decrease in Other - Non Current Assets (4.06) (57.77) (Increase)/Decrease in Other financial assets-Non-current 9.29 (2.70) (Increase)/Decrease in Loans and Advances-Current 0.74 0.85 (Increase)/Decrease in Other Current Assets (17.02) 3.82 (Increase)/Decrease in Other financial assets-Current (3.01) (2.97) (Increase)/Decrease in Inventories (4.84) 2.51 (Increase)/Decrease in Loan and advances-Non current 0.90 0.52 Changes in Assets (17.06) (65.98) Increase/(Decrease) in Trade Payables 33.26 (14.77) Increase/(Decrease) in Other financial liabilities-Current 93.85 46.30 Increase/(Decrease) in Other current liabilities 33.12 6.43 Increase/(Decrease) in Other Non current Liabilities 2.94 1.97 Increase/(Decrease) in Short-term provisions 13.77 8.37 Increase/(Decrease) in Long-term provisions (5.47) (2.42) Changes in Liabilities 171.47 45.88 Cash Generated from Operations 2,117.40 1,956.75 Income tax paid (Net of refund) (311.54) (322.71) Net Cash from/(used in) Operating Activities 1,805.86 1,634.04 B. CASH FLOW FROM INVESTING ACTIVITIES Payments for Property, plant and equipments/Intangible assets (751.73) (837.14) including capital work in progress and capital advances Payment for Purchase of investments - (100.00) Proceeds from sale of Investments - 0.06 Other Bank balances in Earmark funds (net) (22.40) (3.86) Investment in Fixed Deposits with banks and financial institutions (net) (1,261.65) - Interest received 111.92 60.56 Proceeds from sale of Property, plant and equipments 0.93 0.09 Dividend received 1.68 1.64 Net Cash from/(used in) Investing Activities (1,921.25) (878.65) ST STANDALONE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH, 2025 134 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED (` in Crores) Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 C. CASH FLOW FROM FINANCING ACTIVITIES Payments of lease liabilities (54.75) (29.30) Interest Paid (including interest on lease liability) (29.91) (27.32) Dividend Paid (including tax thereon) (389.07) (457.49) Net Cash from/(used in) Financing Activities (473.73) (514.11) NET INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C) (589.12) 241.28 Cash and Cash Equivalents at the beginning of the year 915.98 674.70 Cash and Cash Equivalents at the end of the year 326.86 915.98 Details of Closing Cash and Cash Equivalents and reconciliation with Balance sheet: (A) Cash and Cash Equivalents ( Refer note 13) Cash in hand 3.90 2.73 Balances with Banks 86.83 117.52 Balances in Fixed / Liquid Deposits 236.13 795.73 (B) Balances in Bank Overdraft / Cash Credit (Refer note 25) - - Total (A+B) 326.86 915.98 Notes to Statement of Cash Flows: (i) The above Statement of Cash Flows has been prepared under the “Indirect Method” as set out in the Indian Accounting Standard IND AS-7 on Statement of Cash Flows. (ii) Purchase of Property, plant and equipments and other Intangible assets are stated inclusive of movements of capital work in progress, assets under development and capital advances. (iii) Interest received is classified as investing cash flows and considered and presented as ‘cash flows from investing activities’ to the extent, it represents time value of money. (iv) Cash and cash equivalents comprise cash & bank balance and deposits with banks and financial institutions. The Company considers all highly liquid investments with original maturities of three months or less and that are readily convertible to known amounts of cash to be cash equivalents. (v) Refer note 50 for Reconciliation of lease liabilities under Financing Activities. (vi) Previous year figures have been regrouped and reclassified wherever considered necessary to conform to the current year's figures. ST STANDALONE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH, 2025 135 As per our report attached For and on behalf of Board of Directors of Gujarat Gas Limited For Ashok Chhajed & Associates Chartered Accountants ICAI Firm Reg. No. – 100641W Pankaj Joshi, IAS Milind Torawane, IAS Balwant Singh, IAS (Retd.) Chairman Managing Director Director Naresh Bahroo DIN - 01532892 DIN - 03632394 DIN- 00023872 Partner M. No. : 117743 Rajesh Sivadasan Sandeep Dave Chief Financial Officer Company Secretary Place : Gandhinagar Place : Gandhinagar th th Date : 19 May, 2025 Date : 19 May, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED (B) Other equity (` in Crores) Particulars st st As at 31 March, 2025 As at 31 March, 2024 Balance at the beginning of the reporting period 137.68 137.68 Changes in equity share capital due to prior period errors - - Restated balance at the beginning of the reporting period 137.68 137.68 Changes in equity share capital during the year - - Balance at the end of the reporting period 137.68 137.68 (A) Equity Share Capital ( in Crores)` ** Capital Reserve is created on account of Business combination transaction Note (i): The "Amalgamation and Arrangement Reserve" created pursuant to scheme of amalgamation and arrangement is treated as free th reserve based on the judgment of Honourable Gujarat High Court dated 18 April, 2015 read with relevant other court decisions. Note (ii): The Company has elected to recognise changes in the fair value of investments in equity securities in other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve (Equity Instruments through OCI). Note (iii): Accumulated balance of Remeasurements of post-employment benefit obligation, Gain/(Loss) net of tax, recognised in retained earnings is ` 3.40 crores (Previous year ` (2.28) crores). Note (iv): Nature and purpose of each reserve is disclosed under note no. 19 -'Other equity'. Particulars Reserves & Surplus Items of Other Comprehensive Income Total Other Equity st Balance at 1 April, 2024 879.59 (23.98) 2.72 6,791.02 (97.78) 7,551.58 Changes in accounting policy / prior period errors - - - - - - Restated balance at the beginning of the reporting period (a) 879.59 (23.98) 2.72 6,791.02 (97.78) 7,551.58 Profit for the period - - - 1,145.51 - 1,145.51 Other comprehensive income for the period - - - - 2.83 2.83 Items of OCI recognised directly in retained earnings: Remeasurements of post-employment benefit - - - 5.68 - 5.68 obligation, net of tax Total comprehensive income for the period (b) - - - 1,151.19 2.83 1,154.02 Dividend (c) - - - (389.63) - (389.63) st Balance at 31 March, 2025 (a+b+c) 879.59 (23.98) 2.72 7,552.58 (94.95) 8,315.97 st Balance at 1 April, 2023 879.59 (23.98) 2.72 6,101.00 (101.41) 6,857.93 Changes in accounting policy / prior period errors - - - - - - Restated balance at the beginning of the reporting period (d) 879.59 (23.98) 2.72 6,101.00 (101.41) 6,857.93 Profit for the year - - - 1,142.77 - 1,142.77 Other comprehensive income for the year - - - - 3.63 3.63 Items of OCI recognised directly in retained earnings: Remeasurements of post-employment benefit obligation, - - - 5.03 - 5.03 net of tax Total comprehensive income for the year (e) - - - 1,147.80 3.63 1,151.43 Dividend (f) - - - (457.78) - (457.78) st Balance at 31 March, 2024 (d+e+f) 879.59 (23.98) 2.72 6,791.02 (97.78) 7,551.58 STANDALONE STATEMENT OF CHANGES IN EQUITY (SOCIE) ST FOR THE YEAR ENDED 31 MARCH, 2025 136 Amalgamation & Arrangement Reserve General Reserve Capital Reserve ** Retained Earnings Equity Instruments through OCI Attributable to the equity holders of the Company As per our report attached For and on behalf of Board of Directors of Gujarat Gas Limited For Ashok Chhajed & Associates Chartered Accountants ICAI Firm Reg. No. – 100641W Pankaj Joshi, IAS Milind Torawane, IAS Balwant Singh, IAS (Retd.) Chairman Managing Director Director Naresh Bahroo DIN - 01532892 DIN - 03632394 DIN- 00023872 Partner M. No. : 117743 Rajesh Sivadasan Sandeep Dave Chief Financial Officer Company Secretary Place : Gandhinagar Place : Gandhinagar th th Date : 19 May, 2025 Date : 19 May, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Note 1 – Corporate Information 1. Corporate Information a) Gujarat Gas Limited (GGL or "Company") (CIN : L40200GJ2012SGC069118) formerly known as GSPC Distribution Networks Limited (GDNL) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. GGL is a Government Company under section 2(45) of Companies Act 2013. Its shares are listed on Bombay Stock Exchange and National Stock Exchange in India. The registered office is located at Gujarat Gas CNG Station, Sector 5/C, Gandhinagar -382006. The Company is engaged in Natural Gas Business in India. Natural gas business involves distribution of gas from sources of supply to centres of demand and to the end customers. The scheme of amalgamation and arrangement was sanctioned by the Hon’ble Gujarat High Court at Ahmedabad vide its th order dated 30 March, 2015 between the following transferor companies - 1. GSPC Gas Company Limited (GSPC Gas) 2. Gujarat Gas Company Limited (GGCL) 3. Gujarat Gas Financial Services Limited (GFSL) 4. Gujarat Gas Trading Company Limited (GTCL) (Collectively called Transferor Companies) with Gujarat Gas Limited (formerly known as GSPC Distribution Networks Limited-GDNL) (the transferee) under the st Scheme of Amalgamation and Arrangement with an appointed date of 1 April, 2013. Subsequently, the company's name th has been changed from GSPC Distribution Networks Limited to Gujarat Gas Limited (GGL) with effect from 15 May, 2015. b) Authorization of financial statements The Standalone Financial Statements were approved and authorized for issue in accordance with a resolution passed in th meeting of Board of the Directors held on 19 May, 2025. c) Functional and Presentation Currency The financial statements are presented in Indian rupee ` (INR), which is the functional and presentation currency of the Company. Note 2 - Material Accounting Policies This note provides a list of the material accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated. Basis of Preparation (i) Statement of Compliance with Ind AS The standalone financial statements has been prepared in accordance and comply in all material aspects with Indian Accounting Standards (Ind AS) notified and applicable under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act and read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended and Companies (Indian Accounting Standards) Amendment Rules, 2016 and relevant amendment rules issued thereafter. Accordingly, the Company has prepared these Standalone Financial Statements which comprise the Standalone Balance st st Sheet as at 31 March, 2025, the Standalone Statement of Profit and Loss for the year ended 31 March, 2025, the st Standalone Statement of Cash Flows for the year ended 31 March, 2025 and the Standalone Statement of Changes in Equity for the year ended as on that date, and material accounting policies and other explanatory information (together hereinafter referred to as ‘Standalone Financial Statements’ or ‘financial statements’). All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. (ii) Historical cost convention The financial statements are prepared as a going concern on accrual basis of accounting under historical cost convention, except for the following: • certain financial instruments measured at fair value; • defined benefit plans - plan assets measured at fair value; and 137 st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Use of estimates and judgements The presentation of the financial statements are in conformity with the Ind AS which requires the management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on management's evaluation of relevant facts and circumstances as on the date of financial statements. The actual outcome may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements. Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes: Note 3.1 & 5.1: Useful lives of property, plant and equipment and intangible assets Note 12: Recognition and measurement of unbilled gas sales revenue Note 26, 27,28 & 29: Recognition and measurement of other provisions Note 40: Current/deferred tax expense (Including estimates for Uncertain tax treatments) Note 43 : Contingent liabilities and assets Note 45: Expected credit loss for receivables Note 45: Fair valuation of unlisted securities Note 47: Measurement of defined benefit obligations Note 5.3 & 50: Definition of Lease, lease term and discount rate (a) Property, Plant and Equipment Property plant and equipment are stated at their cost of acquisition / construction less depreciation and impairment, if any. The cost comprises of the purchase price and any attributable cost for bringing the asset to its working condition for its intended use; like freight, duties, taxes and other incidental expenses, net of CENVAT or Goods and service tax (GST) credit. The Company capitalises to project assets all the cost directly attributable and ascertainable, to completing the project. These costs include expenditure of pipelines, plant and machinery, cost of laying of pipeline, cost of survey, commissioning and testing charge, detailed engineering and interest on borrowings attributable to acquisition of such assets. The gas distribution networks are treated as commissioned when supply of gas commences to the customer(s). Considering the voluminous data and materiality involved, the Pipeline Network project assets and connection equipment project assets are capitalized at the end of the month in which the assets are commissioned and completed. Subsequent expenditures, including replacement costs where applicable, incurred for an item Property plant and equipment are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is de-recognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. Component accounting of assets: If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. The Company has identified, reviewed, tested and determined the componentisation of the significant assets. Assets installed at customer premises, including meters and regulators where applicable, are recognised as property plant and equipment if they meet the definition provided under Ind AS-16 subject to materiality as determined by the management and followed consistently. Any item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is charged to revenue in the income statement when the asset is derecognised. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset. On transition to Ind AS, the Company had elected to carry forward the previous GAAP net carrying value of all its property, plant st and equipment recognized as at 1 April, 2015 as the deemed cost.138 st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Capital work in Progress: Capital Work in Progress includes expenditure incurred on assets, which are yet to be commissioned and capital inventory, which comprises stock of capital items/construction materials at respective city gas network. All the directly identifiable and ascertainable expenditure, incidental and related to construction incurred during the period of construction on a project, till it is commissioned, are kept as Capital work in progress (CWIP) and disclosed under ‘Capital work- in-progress’ and after commissioning the same is transferred / allocated to the respective category of property, plant and equipment. Further, advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date are classified as capital advances under other non- current assets. (b) Investment Properties Investment properties comprises of free hold or lease hold land and building that are held for rental yield and/or capital appreciation. Investment property is measured initially at its cost, including related transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalised to the asset's carrying amount only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed as and when incurred. When part of an investment property is replaced, the carrying amount of the replaced part is derecognised. On transition to Ind AS, the Company had elected to carry forward the previous GAAP net carrying value of all its investment st property recognized as at 1 April, 2015 as the deemed cost. (c) Intangible assets Intangible assets are stated at cost less accumulated amortization and impairment. Intangible Assets includes amount paid towards obtaining the Right of Use (ROU) of land and Right of Way (ROW) permissions for laying the gas pipeline network and cost of developing software for internal use. The Company capitalises software as Intangible Asset where it is expected to provide future enduring economic benefits. Cost associated with maintaining software programmes are recognised as expenses as and when incurred. Any item of intangible assets is derecognised upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the intangible asset (calculated as the difference between the net disposal proceeds and the carrying amount of the intangible asset) is charged to revenue in the income statement when the intangible asset is derecognised. On transition to Ind AS, the Company had elected to carry forward the previous GAAP net carrying value of all its intangible st assets recognized as at 1 April, 2015 as the deemed cost. (d) Depreciation and amortisation methods, estimated useful lives and residual values Depreciation is calculated to systematically allocate the cost of property, plant and equipment, intangible asset and investment property net of the estimated residual values over the estimated useful life. Freehold land is not depreciated. Depreciation is computed using Straight Line Method (SLM) over the useful lives of the assets as specified in Schedule II to the Companies Act, 2013, read with the following notes: i. The Schedule specifies useful life of Pipelines as 30 years for those used in exploration, production and refining of oil and gas. The Company has considered the useful life of 30 years for the pipelines used in city gas distribution business. ii. City gas stations, skids, pressure regulating stations, meters and regulators are estimated to have useful life of 18 years based on technical assessment made by technical expert and management. iii. Cost of mobile phones, are expensed off in the year of purchase. iv. Temporary building structures are estimated to have useful life of 1 year. The management believes that these useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used. The useful lives are reviewed by the management at each financial year end and revised, if appropriate. In case of a revision, the unamortised depreciable amount (remaining net value of assets) is charged over the revised remaining useful lives. Based on management estimate, residual value of 5% is considered for respective tangible assets except for the Pipeline Network assets which are shown as the Plant and Equipment at Note No. 3.1 - Property, Plant and Equipment where the residual value is considered to be NIL as the said assets technically and commercially not feasible to extract from underground.139 st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED The residual values, useful lives and methods of depreciation of property, plant and equipment (PPE) are reviewed at the end of each financial year and adjusted prospectively if appropriate. Component accounting of assets: If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment and accordingly depreciated at the useful lives specified as above. Depreciation on items of property, plant and equipment acquired / disposed off during the year is provided on pro-rata basis with reference to the date of addition / disposal. Investment properties, if any, are depreciated based on the useful life on a Straight Line basis prescribed in Schedule II to the Companies Act, 2013. Intangible assets are amortized over their individual estimated useful lives on a Straight Line basis, commencing from the year in which the same are available to the company for its intended use. The useful lives as estimated by the management for the intangible assets are as follows: I. Right of Way (ROW) Permissions 30 Years (Considered more than 10 years as inextricably linked and dependent on the useful life of pipeline networks as referred above for which the Right of Way has been obtained). II. Software 6 Years No amortisation is charged on Right of Use (RoU) of land being perpetual in nature. The same is tested for impairment based on principles of Ind AS-36. The Company has constructed / installed CNG stations' buildings and machineries, on land taken on lease from various lessor under lease deed for periods ranging from 35 years to 99 years. However, assets constructed / installed on such land have been depreciated at useful lives as referred above. Capital assets /facilities installed at the customers’ premises on the land of the customers/CNG franchisee whose ownership is not with the company have been depreciated at the useful lives specified as above. (e) Impairment of non-financial assets In accordance with Ind AS-36 on “Impairment of Assets” at the balance sheet date, non-financial assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets, is considered as a cash generating unit. If any such indication exists, an estimate of the recoverable amount of the asset/cash generating unit is made. Assets whose carrying value exceeds their recoverable amount are written down to the recoverable amount. Recoverable amount is higher of an asset’s or cash generating unit’s net selling price and its value in use. Assessment is also done at each Balance Sheet date as to whether there is any indication that an impairment loss recognized for an asset in prior accounting periods may no longer exist or may have decreased. Impairment losses of continuing operations, including impairment on inventories, are recognised in the statement of profit and loss, except for properties previously revalued with the revaluation surplus taken to Other Comprehensive Income (OCI). For such properties, the impairment is recognised in OCI up to the amount of any previous revaluation surplus. (f) Revenue recognition i) Revenue from operation Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of discounts and rebates, if any, as part of the contract in the normal course of the Company's activities. Income is recognized in the income statement when the control of the goods or services has been transferred. The amount recognised as revenue is stated inclusive of excise duty and exclusive of sales tax /value added tax (VAT) and Goods and service tax (GST). Revenue from sale of Natural Gas is recognized at the point in time when control is transferred to the customer, generally on delivery of the gas on metered/assessed measurements facility. Sales are billed bi-monthly cycle for domestic customers, monthly/fortnightly cycle for commercial and non-commercial customers and fortnightly / 10 days cycle basis for industrial customers. 140 st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Revenue from sale of Compressed Natural Gas (CNG) is recognized at the point in time when control is transferred to the customer, generally on delivery of the gas to consumers from retail outlets and is billed weekly / fortnightly cycle in case of OMC customers. Revenue recognised towards supply of natural gas already occurred for the period from the end of the last billing date to the Balance Sheet date has been reflected under “Trade receivables ”(which refer as unbilled revenue) which is calculated based on customer wise previous average consumption. Gas transmission income is recognized over the period in which the related volumes of gas are delivered to the customers. Commitments (take or pay charges) income from customers for gas sales and gas transmission is recognized on accrual basis in the period to which it relates to. In case of industrial customers, non-refundable charges for initial or additional gas connection collected from the customers is deferred over the period of contract with respective customers and in case of domestic & commercial customers is deferred over the useful life of the asset. Revenue of yearly fees income is recognised on accrual basis over the period, on time proportion basis, considering the terms of the underlying contract with customers. For Domestic customers, as the amount for yearly fees is collected post completion of the year, unbilled yearly fees is calculated on time proportionate basis from the due date to the Balance Sheet date and the same is disclosed under “Trade receivables” (which refer as unbilled revenue). For Commercial/Non- Commercial customers, Yearly fees is billed in advance to the customers calculated based on time proportionate basis is deferred over such period and the same is disclosed under Other current liabilities as “Deferred revenue”. ii) Other income Revenue in respect of interest/ late payment charges on delayed realizations from customers and cheque bounce charges, if any, is recognized on grounds of prudence and on the basis of certainty of collection. Liquidated damages, if any are recognized at the time of recording the purchase of materials in books of accounts and the matter is considered settled by the management. Interest income is recognized on time proportion basis taking into account the amount outstanding and the rate applicable. Interest income is recognised using effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through expected life of the financial asset to the gross carrying amount of the financial asset. When calculating the effective interest rate, the company estimates the expected cash flows by considering all the contractual terms of the financial instrument but does not consider the expected credit losses. Dividend income is recognised, when the right to receive the dividend is established by the reporting date. Investment property rental income is recognised as revenue on accrual basis as per the terms of the underlying contract. Other operating income and misc. income are accounted on accrual basis as and when the right to receive arises. (g) Leases The Company’s leased asset classes primarily consist of leases for land, buildings, plant & machinery equipment’s, vehicles, way leave charges and hooking up charges. Under Ind AS-116, the Company assesses whether a contract contains a lease, at the inception of the contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether - the contract involves the use of identified asset; - the Company has substantially all of the economic benefits from the use of the asset through the period of lease; and - the Company has right to direct the use of the asset. The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS-116. Identification of a lease requires significant judgment. The Company uses significant judgement in assessing the lease term (including anticipated renewals/termination options) and the applicable discount rate. Company as a lessee The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.141 st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Certain lease arrangement includes the options to extend or terminate the lease before the end of the lease term. The right-of- use assets and lease liabilities includes these options when it is reasonably certain that the option will be exercised. The right-of-use asset is subsequently amortized using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics. Lease payments included in the measurement of the lease liability comprises of fixed payments, including in-substance fixed payments, amounts expected to be payable under a residual value guarantee and the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of- use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. Modifications to a lease agreement beyond the original terms and conditions are generally accounted for as a re-measurement of the lease liability with a corresponding adjustment to the ROU asset. Any gain or loss on modification is recognized in the Statement of Profit & Loss. However, the modifications that increase the scope of the lease by adding the right to use one or more underlying assets at a price commensurate with the stand-alone selling price are accounted for as a separate new lease. In case of lease modifications, discounting rates used for measurement of lease liability and ROU assets is also suitably adjusted. Lease liability and ROU lease asset have been separately presented in the Balance Sheet and lease payments have been classified as cash flows from financing activities. Short-term leases, low-value assets and others: The Company has elected not to recognise right-of-use assets and lease liabilities for short term leases that have a lease term of less than or equal to 12 months with no purchase option and assets with low value leases. The lease payments associated with leases assets that have lease period of 12 months or less, remaining lease period of 12 months or less as on transition date, rental charges of low value assets, component of taxes of ROU lease charges, non- lease component viz. manpower, fuel cost, repair and maintenance is recognised as an expense in the Statement of Profit and Loss over the lease term. The related cash flows are classified as operating activities. As a lessor Finance lease Leases for which the Company is a lessor is classified as finance or operating leases. When the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. All assets given on finance lease are shown as receivables at an amount equal to net investment in the lease. Principal component of the lease receipts is adjusted against outstanding receivables and interest income is accounted by applying the interest rate implicit in the lease to the net investment. Operating lease Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the term of the relevant lease. In case of modification of contractual terms, the same is accounted as a new lease, considering any prepaid or accrued lease payments relating to the original lease as part of the lease payments for the new lease. 142 st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED (h) Financial Instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial Asset Initial Recognition A financial asset or a financial liability is recognised in the balance sheet only when, the Company becomes party to the contractual provisions of the instrument. Initial Measurement At initial recognition, the Company measures a financial asset or financial liability at its fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability, except trade receivables that do not contain a significant financing component, are measured at transaction price. Subsequent Measurement For purpose of subsequent measurement, financial assets are classified into: • Financial assets measured at amortised cost; • Financial assets measured at fair value through profit or loss (FVTPL); and • Financial assets measured at fair value through other comprehensive income (FVTOCI). The Company classifies its financial assets in the above mentioned categories based on: • The Company’s business model for managing the financial assets, and • The contractual cash flows characteristics of the financial asset. A financial assets is measured at amortised cost if both of the following conditions are met: • The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and • The contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding. Financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss. A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met: • The financial asset is held within a business model whose objective is achieved by both collecting the contractual cash flows and selling financial assets and • The assets contractual cash flows represent SPPI. A financial asset is measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income. In addition, the Company is elected to designate a financial asset, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ‘accounting mismatch’). Equity Investments: All equity investments in scope of Ind AS-109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the Company has made an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument by- instrument basis. The classification is made on initial recognition and is irrevocable. If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to statement of profit and loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity. Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Profit and Loss. 143 st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED De-recognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Company's balance sheet) when: 1. The contractual rights to the cash flows from the financial asset have expired, or 2. The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either i) The Company has transferred substantially all the risks and rewards of the asset, or ii) The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company’s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay. Embedded foreign currency derivative Embedded foreign currency derivatives are not separated from the host contract if they are closely related. Such embedded derivatives are closely related to the host contract, if the host contract is not leveraged, does not contain any option feature and requires payments in one of the following currencies: • the functional currency of any substantial party to that contract, • the currency in which the price of the related good or service that is acquired or delivered is routinely denominated in commercial transactions around the world, • a currency that is commonly used in contracts to purchase or sell non-financial items in the economic environment in which the transaction takes place (i.e. relatively liquid and stable currency). Foreign currency embedded derivatives which do not meet the above criteria are separated and the derivative is accounted for at fair value through profit and loss. The Company currently does not have any such derivatives which are not closely related. Impairment of Financial Assets The Company assesses impairment based on expected credit loss (ECL) model to the following: • Financial assets measured at amortised cost • Financial assets measured at fair value through other comprehensive income Expected credit losses are measured through a loss allowance at an amount equal to: • The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or • Full time expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument). The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables or contract revenue receivables. Under the simplified approach, the Company is not required to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs together with appropriate management estimates for credit loss at each reporting date, right from its initial recognition. The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivable and is adjusted for forward looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the statement of profit and loss. This amount is reflected under the head ‘other expenses’ in the statement of Profit and Loss. The balance sheet presentation for various financial instruments is described below:144 st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED • Financial assets measured as at amortised cost and contractual revenue receivables - ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the company does not reduce impairment allowance from the gross carrying amount. • Financial assets measured at FVTOCI - Since financial assets are already reflected at fair value, impairment allowance is not further reduced from its value. Rather, ECL amount is presented as accumulated impairment amount in the OCI. For assessing increase in credit risk and impairment loss, the Company combines financial instruments on the basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enable significant increases in credit risk to be identified on a timely basis. The Company does not have any purchased or originated credit-impaired (POCI) financial assets, i.e., financial assets which are credit impaired on purchase/ origination. Financial Liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss for loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, and financial liabilities measured at amortised value as appropriate. All financial liabilities are recognised initially at fair value and, in case of loans and borrowings and payables, net of directly attributable transaction costs. The Company’s financial liabilities include trade and other payables, loan and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments. Subsequent measurement • Financial liabilities measured at amortised cost • Financial liabilities subsequently measured at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. Gains or losses on liabilities held for trading are recognised in the profit or loss. Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS-109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to Profit and Loss. However, the Company is transferred the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The Company has not designated any financial liability as at fair value through profit and loss. Financial guarantee contracts Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS-109 and the amount recognised less cumulative amortisation. Loan and borrowings After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate (EIR) method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss. Trade and other payables These amounts represent liability for goods and services provided to the Company prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. Lease liabilities The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Subsequently, the lease liability is measured at amortised cost using the effective interest rate method.145 st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Derecognition A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss. (i) Inventories Inventory of Gas (including inventory in pipeline and CNG cascades) is valued at lower of cost and net realizable value. Cost is determined on weighted average cost method. Volume of gas in cascades and pipeline are estimated on volumetric basis. Stores, spares and consumables are valued at lower of cost and net realizable value. Cost is determined on moving weighted average basis (net off provision for diminution in value, if any). Inventories of Project materials (capital Inventory) are valued at cost on moving weighted average basis (net off provision for diminution in value, if any). (j) Investment in associate The Company accounts for the investment in associate at cost. (k) Offsetting financial instruments Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the group or the counterparty. (l) Fair Value Measurement The Company measures certain financial instruments at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability, or • In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as under, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities. • Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. • Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. The Company's management determines the policies and procedures for both recurring fair value measurement, such as unquoted financial assets measured at fair value, and for non-recurring measurement, such as assets held for distribution in discontinued operations. The management comprises of the Managing Director and Chief Financial Officer. External valuers are involved for valuation of significant assets, such as unquoted financial assets. Involvement of external valuers is decided upon annually and approval by the management. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. Valuers are normally rotated every three years. The management decides, after discussions with the Company's external valuers, which valuation techniques and inputs to use for each case.146 st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED At each reporting date, the management analyses the movements in the values of assets and liabilities which are required to be re-measured or re-assessed as per the Company’s accounting policies. For this analysis, the management verifies the major inputs applied in the latest valuation by agreeing the information in the valuation. The management, in conjunction with the Company's external valuers, also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable. For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above. This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes. (Refer note 45) 1. Disclosures for valuation methods, significant estimates and assumptions. 2. Quantitative disclosures of fair value measurement hierarchy. 3. Investment in unquoted equity shares. 4. Financial instruments (including those carried at amortised cost). (m) Employee Benefits Employees Benefits are provided in the books as per Ind AS -19 on “Employee Benefits” in the following manner: A. Post-employment benefit plans I. Defined Contribution Plan Contribution towards provident fund for eligible employees are accrued in accordance with applicable statutes and deposited with the regulatory provident fund authorities (Government administered provident fund scheme). The Company does not carry any other obligation apart from the monthly contribution. The Company contributes under the National Pension System scheme for eligible employees at a rate specified in the rules of the scheme and deposited with concerned agency/authority. The Company’s contribution is recognised as an expenses in the statement of Profit and Loss during the period in which the employee renders the related service. II. Defined benefit plan The company provides for gratuity, a defined benefit plan covering eligible employees in accordance with the Payment of Gratuity Act, 1972, through an approved Gratuity Fund. The Gratuity Fund is separately administered through a Trust/Scheme. Contributions in respect of gratuity are made to the approved Gratuity Fund. The Company's liability is actuarially determined by qualified actuary (using the Projected Unit Credit method) at the end of each year and is recognized in the Balance sheet as reduced by the fair value of Gratuity Fund. Actuarial losses/ gains are recognized in the Statement of Other Comprehensive Income in the year in which they arise. III. Long term employee benefits The liability in respect of accrued leave benefits which are expected to be availed or en-cashed beyond 12 months from the end of the year, is treated as long term employee benefits. The Company's liability for leave benefits are actuarially determined by qualified actuary at balance sheet date by using the Projected Unit Credit method. Actuarial losses/ gains are recognized in the Statement of Profit and Loss in the year in which they arise. B. Other Long Term Service benefits - Long Service Award (LSA) : On completion of specified period of service with the company, employees are rewarded with Cash Reward of different amount based on the duration of service completed. The Company's liability is actuarially determined by qualified actuary at balance sheet date at the present value of the amount payable for the same. Actuarial losses/ gains are recognized in the Statement of profit and loss in the year in which they arise. C. Short term employee benefits The undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered by employees is recognized during the period when the employee renders the services. Short term employee benefits includes salary and wages, bonus, incentive, ex-gratia, death compensation and also includes accrued leave benefits, which are expected to be availed or en-cashed within 12 months from the end of the year.147 st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED (n) Taxation Income tax expenses comprises current tax (i.e. amount of tax for the period determined in accordance with the Income Tax Law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period). Income tax expenses are recognised in statement of profit or loss except tax expenses related to items recognised directly in reserves (including statement of other comprehensive income) which are recognised with the underlying items. Income Taxes The income tax expense or credit for the period is the tax payable on the current period's taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period i.e. as per the provisions of the Income Tax Act, 1961, as amended from time to time. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation including amount expected to be paid / recovered for uncertain tax positions. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting advance tax paid and income tax provision arising in the same tax jurisdiction for relevant tax paying units and where the Company is able to and intends to settle the asset and liability on a net basis. Deferred Taxes Deferred tax is provided in full on temporary difference arising between the tax bases of the assets and liabilities and their carrying amounts in financial statements at the reporting date. Deferred tax are recognised in respect of deductible temporary differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods., the carry forward of unused tax losses and the carry forward of unused tax credits. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax assets are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries, branches and associates and interest in joint arrangements where it is not probable that the differences will reverse in the foreseeable future and taxable profit will not be available against which the temporary differences can be utilised. Deferred tax liabilities are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries, branches and associates and interest in joint arrangements where it is probable that the differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the Company has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Company measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty. 148 st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED (o) Provisions, Contingent Liabilities and Contingent Assets Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provision for contractual obligation is disclosed based on management's assessment of the probable outcome with reference to the available information supplemented by experience of similar transactions. When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement. Provision in respect of loss contingencies relating to claims, litigation, assessment, fines, penalties etc. are recognised when it is probable that a liability has been incurred and the amount can be estimated reliably. Provisions are not recognised for future operating losses. Provisions for restructuring are recognised by the Company when it has developed a detailed formal plan for restructuring and has raised a valid expectation that the Company will carry out the restructuring by starting to implement the plan or announcing its main features to those affected by it. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Provisions are measured at management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period and are not discounted to present value. The estimates of outcome and financial effect are determined by the judgment of the management, supplemented by experience of similar transactions and, in some cases, reports from independent experts. The measurement of provision for restructuring includes only direct expenditures arising from the restructuring, which are both necessarily entailed by the restructuring and not associated with the ongoing activities of the Company. Contingent liability is disclosed in the case of: 1. A present obligation arising from the past events, when it is not probable that an outflow of resources will be required to settle the obligation; 2. A present obligation arising from the past events, when no reliable estimate is possible; 3. A possible obligation arising from the past events, unless the probability of outflow of resources is remote. Contingent liabilities are not provided for and if material, are disclosed by way of notes to financial statements. A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. Contingent assets are not recognised in financial statements since this may result in the recognition of income that may never be realised. However, Contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs. A contingent asset is disclosed by way of notes to financial statements, where an inflow of economic benefits is probable. Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date. (p) Exceptional Items Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the Company is such that its disclosure improves the understanding of the performance of the Company, such income or expense is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the financial statements. (q) Prior Period Adjustments and Pre-paid Expenses. Income / expenditure in aggregate pertaining to prior year(s) above the threshold limit are corrected retrospectively. Prepaid expenses up to threshold limit in each case, are charged to revenue as and when incurred. (r) Rounding off All amounts disclosed / presented in Indian Rupees (INR) in the financial statements and notes have been rounded off to the nearest two decimals of Crores as per the requirements of Schedule III, unless otherwise stated. (s) Recent accounting pronouncements Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies st (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31 March, 2025, MCA has notified Ind AS- 117 Insurance Contracts and amendments to Ind AS-116 – Leases, relating to sale and leaseback transactions, applicable to the st Company w.e.f. 1 April, 2024. The Company has reviewed the new pronouncements and based on its evaluation has determined that it does not have any significant impact in its financial statements. 149 st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 150 Note 3.1.1 - Impairment of Assets : There is no impairment of any assets in terms of Ind AS-36 on “Impairment of Assets”. Based on the review, the management is of the opinion that there are no impairment indicators that necessitate any adjustments to the carrying value of PPE. Note 3.1.2 - The company has not carried out revaluation of PPE. st Note 3.1.3 - The company has elected to measure all its PPE at the previous GAAP carrying amount i.e. March 31, 2015 as its deemed cost on the date of transition to Ind AS i.e. 1 April, 2015. Note 3.1.4 - Refer to note 43 for disclosure of contractual commitments for the acquisition of property, plant and equipment. Note 3.1.5 - There is no restriction on the title of property, plant and equipments. Note 3.1.6 - "Other adjustment" in current financial year 2024-25 includes change in classification from freehold land and building to Investment Property ` 8.84 crores and ` 2.61 crores respectively. (Refer Note 4) st Notes to Standalone financial statements for the year ended on 31 March, 2025 Note 3.1 PROPERTY, PLANT AND EQUIPMENT (PPE) st Property, Plant and Equipment (PPE) as at 31 March 202 ( in rores), 5 ` C Freehold Land 368.05 1.17 - (8.84) 360.38 - - - - - 360.38 368.05 Buildings 247.85 6.35 0.83 (2.61) 250.76 42.86 4.79 0.03 (0.63) 46.99 203.77 204.99 Plant and Equipments 9,386.20 743.54 6.33 (5.98) 10,117.43 3,008.65 427.14 4.85 (0.88) 3,430.06 6,687.37 6,377.55 Furniture and Fixture 21.55 2.07 0.37 - 23.25 15.34 1.16 1.13 - 15.37 7.88 6.21 Computer Equipment 51.01 1.51 0.07 - 52.45 41.33 3.34 0.06 - 44.61 7.84 9.68 Office Equipments 23.99 2.09 0.79 - 25.29 19.40 1.49 (0.06) - 20.95 4.34 4.59 Vehicles 8.32 - 4.01 - 4.31 7.52 0.11 3.76 - 3.87 0.44 0.80 Books and Periodicals 0.10 - - - 0.10 0.10 - - - 0.10 - - Total PPE 10,107.07 756.73 12.40 (17.43) 10,833.97 3,135.20 438.03 9.77 (1.51) 3,561.95 7,272.02 6,971.87 Gross Block Particulars Depreciation and Amortization st As at 31 March, 2024 st As at 31 March, 2025 st As at 31 March, 2025 Other Adjustments For the year st As at 1 April, 2024 st As at 31 March, 2025 Other Adjustments Disposal/ Adjustment Addition Disposal/ Adjustment Net Block Property, Plant and Equipment (PPE) as at 31st March, 2024 ( in Crores)` st As at 1 April, 2024 Freehold Land 366.24 1.81 - - 368.05 - - - - - 368.05 366.24 Buildings 231.63 16.22 - - 247.85 37.49 5.37 - - 42.86 204.99 194.14 Plant and Equipments 8,629.31 764.24 7.35 - 9,386.20 2,613.91 400.37 5.63 - 3,008.65 6,377.55 6,015.40 Furniture and Fixture 20.93 0.74 0.12 - 21.55 14.17 1.27 0.10 - 15.34 6.21 6.76 Computer Equipment 50.35 1.02 0.36 - 51.01 37.09 4.75 0.51 - 41.33 9.68 13.26 Office Equipments 22.87 1.36 0.24 - 23.99 18.00 1.44 0.04 - 19.40 4.59 4.87 Vehicles 8.62 - 0.30 - 8.32 7.47 0.33 0.28 - 7.52 0.80 1.15 Books and Periodicals 0.10 - - - 0.10 0.10 - - - 0.10 - - Total PPE 9,330.05 785.39 8.37 - 10,107.07 2,728.23 413.53 6.56 - 3,135.20 6,971.87 6,601.82 Gross Block Particulars Depreciation and Amortization st As at 31 March, 2023 st As at 31 March, 2024 st As at 31 March, 2024 Other Adjustments For the year st As at 1 April, 2023 st As at 31 March, 2024 Other Adjustments Disposal/ Adjustment Addition Disposal/ Adjustment Net Block st As at 1 April 2023 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 151 st Notes to Standalone financial statements for the year ended on 31 March, 2025 Note 3.1 PROPERTY, PLANT AND EQUIPMENT (PPE) (Continued...) Note 3.1.7 - "Other adjustment" in current financial year 2024-25 includes change in classification from Plant and Equipment to ROU (Lease)Assets- Hooking up charges ` 5.10 crores(net). (Refer Note 5.3.3) Note 3.1.8 - Details of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favor of the lessee) whose title deeds are not held in the name of the Company. Title Deeds of Immovable Properties: Property, Plant & Equipment - Freehold Land Land-Survey No. 306-A-/1 paiki 3, Post-Hazira, Taluka Choryasi, District-Surat (13,057 Sq. Mtrs) Land-Survey No. 150 Mora village District-Surat (13,557 Sq. Mtrs) Survey No. 896 and 913/2 Vil Ichchhapur Hazira 6,559 Sq. Mtrs ` 15.88 crores ` 1/-. ` 21.35/- crores ` 15.88 crores ` 1/-. ` 21.35/- crores Government of Gujarat Government of Gujarat Promoter Promoter 01-05-1999 05-04-2002 01-04-2006 The legal dispute between the Government and Hazira Apbal Ganotiya Sahakari Mandali Ltd.(seller) regarding transfer or sale of land to private parties (including GGL) without necessary permission and breached the condition of utilization of land and in one of the order issued by Deputy Collector Choryasi Prant Surat dated th 7 August, 2009 clearly states that there is no breach of condition in case of GGL and land owners as Government has given permission to allocate land to Gujarat Gas subject to necessary payment of premium etc. Land belongs to the Government and allotted under Navi sharat to private parties (seller) from whom GGL brought the land and later on land was made khalsa on 18.04.2002. In April 2010, Mamlatdar Office Choryasi had given revised letter to submit consent for making the 2.5 times premium of the value to regularize the land to Gujarat Gas that may be decided by the District Valuation Committee. Current year :- Transfer of name in favour of the Company is to be completed (Previous year :- Transfer of name in favour of the Company is to be completed) Yes Yes No Relevant line item in the Balance sheet Disputed ? Reason for not being held in the name of the CompanyWhether title deed holder is a promoter, director or relative of promoter director or employee of promoter/ director Title deeds held in the name of Gross carrying value as on st 31 March, 2024 Gross carrying value as on st 31 March, 2025 Description of item of property Property held since which date Current year: Erstwhile entity (Previous year: Erstwhile entity) Current year : Erstwhile entity GSPC Gas Co. Ltd, (Previous year: Erstwhile entity GSPC Gas Co. Ltd) 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Note 3.2 CAPITAL WORK IN PROGRESS ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Capital Inventory 341.80 371.75 Capital Work-in-Progress (project under construction) 482.01 527.81 Total 823.81 899.56 Note 3.2.1 Ageing Schedulest As on 31 March, 2025: ( in Crores)` st As on 31 March, 2024: ( in Crores)` Projects in Progress 637.18 158.98 52.07 49.57 897.80 Projects temporarily suspended 0.05 0.72 0.50 0.49 1.76 Total 637.23 159.70 52.57 50.06 899.56 The Company is engaged in the business of City Gas Distribution (CGD) in India which involves distribution of gas from sources of supply to the end user customers. The CGD project is designed considering demand, supply and future requirements based on the facilities envisaged for CGD network in authorised areas for 25 years on the basis of authorization from Petroleum and Natural Gas Regulatory Board (PNGRB) to lay, build, operate or expand city or local natural gas distribution network. On the basis of demand projections, the CGD network is planned. Project execution plans are modulated on the basis of continuous ongoing expansion and all the projects are executed and expanded on ongoing basis as per rolling annual plan. Hence, it is considered that there is no project whose completion is overdue or has exceeded its cost compared to its original plan. 152 Capital work in progress Less than 1 Year 1-2 Years 2-3 Years Amount in CWIP for a period of More than 3 Years Total Projects in Progress 565.90 134.15 55.51 67.79 823.35 Projects temporarily suspended 0.03 0.01 0.01 0.41 0.46 Total 565.94 134.16 55.52 68.19 823.81 Capital work in progress Less than 1 Year 1-2 Years 2-3 Years Amount in CWIP for a period of More than 3 Years Total st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 153 st Notes to Standalone financial statements for the year ended on 31 March, 2025 st st st st st st As at 1 Addition / Disposal As at 31 As at 1 For the Disposal Other As at 31 As at 31 As at 31 April, 2024 Adjustment* March, 2025 April, 2024 Year Adjustment* March, 2025 March, 2025 March, 2024 Freehold land 1.30 8.84 - 10.14 - - - - - 10.14 1.30 Building - 2.61 - 2.61 - 0.06 - 0.63 0.69 1.92 - Total Investment Property 1.30 11.45 - 12.75 - 0.06 - 0.63 0.69 12.06 1.30 Gross Block Particulars Amortization Net Block * Refer Note 3.1.6 for assets reclassed from Property, Plant and Equipment (PPE) to Investment property during the current year. st Investment Property as at 31 March, 2024 ( in Crores) ` st Investment Property as at 31 March, 2025 ( in Crores)` Note 4. INVESTMENT PROPERTY st st st st st st As at 1 Addition / Disposal As at 31 As at 1 For the Disposal Other As at 31 As at 31 As at 31 April, 2023 Adjustment March, 2024 April, 2023 Year Adjustment March, 2024 March, 2024 March, 2023 Freehold land 1.30 - - 1.30 - - - - - 1.30 1.30 Building - - - - - - - - - - - Total Investment Property 1.30 - - 1.30 - - - - - 1.30 1.30 Gross Block Particulars Amortization Net Block During the current financial year 2024-25, the Company has received ` 0.58 crores for rental income from tenant towards previous year. Note 4.2 Contractual Obligations The Company has no contractual obligations to purchase, construct or develop investment property or for its repair, maintenance or enhancements. Note 4.3 Leasing Arrangements The investment properties are leased to tenants under long term operating leases with rentals payable monthly / annually as per the terms agreed / the agreement. Note 4.4 Fair Value ` ( in Crores) Particulars For the year ended For the year endedst st 31 March 2025 31 March 2024 Rental Income 1.31 - Direct operating expenses for the property that generated rental income - - Net Income 1.31 - Particulars As at 31st As at 31st March 2025 March 2024 Investment Properties Freehold land 22.70 9.00 Building 1.85 - Total 24.54 9.00 Estimation of Fair Value The fair value of investment property is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The Company obtains independent valuations for its investment properties once in every three to five years interval. Note 4.5 There is no restriction on the title and realisability of investment property or remittance of income and proceeds of disposals. Note 4.6 The title deeds of all the immovable properties(s) (which are included under the head ‘investment properties’) are held in the name of the company. Note 4.1 Amount recognised in profit and loss for investment properties ( in Crores)` 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 154 st Notes to Standalone financial statements for the year ended on 31 March, 2025 Note 5.1.1 Right of Way (ROW) Permissions: The useful lives of Right of Way (ROW) Permissions as estimated by the management for the amortization is 30 years. The useful lives of ROW Permission are inextricably linked with the pipeline networks being laid, which corresponds with the useful life of 30 years of Plant and Machinery - Pipelines network for which the Right of Way (ROW) Permission has been obtained. The Useful life of 30 years of the Right of Way (ROW) Permissions is dependent on the useful life of Plant and Machinery - Pipelines i.e. Pipeline network of the company. Note 5.1.2 Right of Use (ROU): The company acquires the ‘Right of Use’ (hereinafter referred to as ‘ROU’) for the purpose of laying and maintenance of the underground pipeline and vests in the company and the company has the right to use the same in the manner for which it has been acquired. The acquisition of ROU is governed by the legal process as per the Act, the company has paid the compensation /consideration of the ROU -land determined by the competent authority under the Act and any person authorised by the company, have unrestricted right of entry and lay pipeline or do any other act necessary for the purpose of laying of pipeline. The company has disclosed the cost incurred for acquisition of ROU as ‘Right of Use’ in the Intangible Asset schedule. Since the ROU does not have a defined life, it is perpetual in nature. Accordingly based on requirements of Ind AS 38 – Intangible Assets, the same is tested for impairment and not amortised. Note 5.1.3 Impairment of Assets : There is no impairment of any assets in terms of Ind AS - 36 on “Impairment of Assets”. Based on the review, the management is of the opinion that there are no impairment indicators that necessitate any adjustments to the carrying value of intangible assets. Note 5.1.4 Refer to note 43 for disclosure of contractual commitments for the acquisition of intangible assets. Note 5.1.5 The company has not carried out revaluation of Intangible assets. st Note 5.1.6 The company has elected to measure all its Intangible assets at the previous GAAP carrying amount i.e. 31 March, 2015 as its deemed cost on the date of transition to Ind AS i.e. April 01, 2015. Note 5.1.7 There is no restriction on the title of intangible assets. Note 5.1.8 "Other adjustment" in current financial year 2024-25 includes change of classification from ROW Permissions to ROU Assets (Lease) ` 30.29 Crores(net). ( Refer Note 5.3.3) st Intangible assets as at 31 March, 2024 ( in Crores) ` st Intangible assets as at 31 March, 2025 ( in Crores)` Note 5.1 INTANGIBLE ASSETS st st st st st st As at 1 Addition Disposal / Other As at 31 As at 1 For the Disposal / Other As at 31 As at 31 As at 31 April, 2024 Adjustment Adjustment March, 2025 April, 2024 Year Adjustment Adjustment March, 2025 March, 2025 March, 2024 ROW Permissions 611.42 56.07 0.43 (37.41) 629.65 110.42 19.99 0.04 (7.12) 123.25 506.40 501.00 ROU 14.55 - - - 14.55 - - - - - 14.55 14.55 Software and other Intangibles 119.98 2.97 - - 122.95 98.16 6.65 - - 104.81 18.14 21.82 Total Intangible Assets 745.95 59.04 0.43 (37.41) 767.15 208.58 26.64 0.04 (7.12) 228.06 539.09 537.37 Gross Block Particulars Amortization Net Block st st st st st st As at 1 Addition Disposal / Other As at 31 As at 1 For the Disposal / Other As at 31 As at 31 As at 31 April, 2023 Adjustment Adjustment March, 2024 April, 2023 Year Adjustment Adjustment March, 2024 March, 2024 March, 2023 ROW Permissions 527.12 84.30 - - 611.42 91.70 18.72 - - 110.42 501.00 435.42 ROU 14.55 - - - 14.55 - - - - - 14.55 14.55 Software and other Intangibles 115.73 4.27 0.02 - 119.98 89.54 8.64 0.02 - 98.16 21.82 26.19 Total Intangible Assets 657.40 88.57 0.02 - 745.95 181.24 27.36 0.02 - 208.58 537.37 476.16 Gross Block Particulars Amortization Net Block 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 155 st Notes to Standalone financial statements for the year ended on 31 March, 2025 Note 5.2.1 Ageing Schedulest As on 31 March, 2025: ( in Crores)` st As on 31 March, 2024: ( in Crores)` Figures INR 0.00 denotes amount less than INR 50,000/-. The Company is engaged in the business of City Gas Distribution (CGD) in India which involves distribution of gas from sources of supply to the end user customers. The CGD project is designed considering demand, supply and future requirements based on the facilities envisaged for CGD network in authorised areas for 25 years on the basis of authorization from Petroleum and Natural Gas Regulatory Board (PNGRB) to lay, build, operate or expand city or local natural gas distribution network. On the basis of demand projections, the CGD network is planned. Project execution plans are modulated on the basis of continuous ongoing expansion and all the projects are executed and expanded on ongoing basis as per rolling annual plan. Hence, it is considered that there is no project whose completion is overdue or has exceeded its cost compared to its original plan. Note 5.2. INTANGIBLE ASSETS UNDER DEVELOPMENT ( in Crores)` Particulars st st As at 31 March, 2025 As at 31 March, 2024 Right of Way (ROW) Permissions 14.97 17.53 Right of Use (ROU) - 0.00 Software 0.13 0.91 Total 15.10 18.44 Projects in Progress 4.71 2.46 1.38 6.28 14.83 Projects temporarily suspended 0.01 - 0.09 0.17 0.27 Total 4.72 2.46 1.47 6.45 15.10 Projects in Progress 6.11 3.48 3.28 5.03 17.90 Projects temporarily suspended - 0.09 0.02 0.43 0.54 Total 6.11 3.57 3.30 5.46 18.44 Intangible assets under development Intangible assets under development Less than 1 Year Less than 1 Year 1-2 Years 1-2 Years 2-3 Years 2-3 Years Amount for a period of Amount for a period of More than 3 Years More than 3 Years Total Total 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 156 Note 5.3 RIGHT-OF-USE ASSETS st Right-of-use assets (Leases) as at 31 March, 2025 ( in Crores)` Note 5.3.1 The company has not carried out revaluation of ROU lease. Note 5.3.2 The Company does not have any immovable property whose title deeds are not held in the name of the Company except those held under lease arrangements for which lease agreements are duly executed in the favour of the Company. st Note 5.3.3 Additions to Hooking up charges & Way Leave charges in current year includes ` 116.54 Crores & ` 7.03 Crores respectively reclassified on 1 April 2024 from prepaid expenses ` 88.18 Crores, Intangible assets ` 30.29 Crores and Property, Plant and Equipment (PPE) ` 5.10 crores. The effect of the same is not significant. Right-of-use assets (Leases) as at 31st March, 2024 ( in Crores)` Gross Block Particulars Amortization Net Block st st st st st st As at 1 Addition Disposal/ Other As at 31 As at 1 For the Disposal/ As at 31 As at 31 As at 31 April, 2024 Termination Adjustments/ March, 2025 April, 2024 Year Adjustment March, 2025 March, 2025 March, 2024 Adjustment Reassessment Land 165.38 2.26 2.55 - 165.09 21.19 5.51 2.55 24.15 140.94 144.19 Buildings 19.96 9.52 0.36 (0.02) 29.10 3.34 3.47 0.36 6.45 22.65 16.62 Plant and Equipments 31.31 10.66 - - 41.97 10.16 2.27 - 12.43 29.54 21.15 Vehicles 122.91 10.49 - (0.14) 133.26 52.63 24.34 - 76.97 56.29 70.28 Hooking up - 134.60 - - 134.60 - 7.08 - 7.08 127.52 - Way Leave - 10.67 1.72 - 8.95 - 3.24 1.72 1.52 7.43 - Total 339.56 178.20 4.63 (0.16) 512.97 87.32 45.91 4.63 128.60 384.37 252.24 st Notes to Standalone financial statements for the year ended on 31 March, 2025 Gross Block Particulars Amortization Net Block st st st st st st As at 1 Addition Disposal/ Other As at 31 As at 1 For the Disposal/ As at 31 As at 31 As at 31 April 2023 Termination Adjustments/ March 2024 April 2023 Year Adjustment March 2024 March 2024 March 2023 Adjustment Reassessment Land 164.02 2.13 0.70 (0.07) 165.38 16.63 5.15 0.59 21.19 144.19 147.39 Buildings 7.73 14.69 2.46 - 19.96 3.26 2.54 2.46 3.34 16.62 4.47 Plant and Equipments 31.31 - - - 31.31 8.07 2.09 - 10.16 21.15 23.24 Vehicles 113.69 11.97 1.84 (0.91) 122.91 30.40 23.63 1.40 52.63 70.28 83.29 Total 316.75 28.79 5.00 (0.98) 339.56 58.36 33.41 4.45 87.32 252.24 258.39 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 157 Note 6 NON-CURRENT FINANCIAL ASSETS : INVESTMENT IN ASSOCIATE ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Investments in equity shares carried at cost (fully paid) Unquoted Equity Shares 43,75,000 (Previous year: 43,75,000) Fully Paid up Equity Shares of 0.03 0.03 ` 10 each of Guj Info Petro Limited (Associate company) Total 0.03 0.03 Extent of Holding 49.94% 49.94% Place of business/ country of incorporation India India Description of method used to account for the investments (Cost or fair value) At Cost At Cost Other information:- (a) Aggregate amount of quoted investments and market value thereof; Nil Nil (b) Aggregate amount of unquoted investments; 0.03 0.03 (c) Aggregate amount of impairment in value of investments. Nil Nil Note 7 NON-CURRENT FINANCIAL ASSETS : INVESTMENTS (` in Crores) st st Particulars As at 31 As at 31 March, 2025 March, 2024 Investments in equity shares accounted through OCI (fully paid) Unquoted Equity Shares (a) 2,00,00,000 (Previous year: 2,00,00,000) Fully Paid Up Equity Shares of 35.20 35.04 ` 1 each of Gujarat State Petroleum Corporation Limited (b) 10,00,00,000 (Previous year: 10,00,00,000) Fully Paid Up Equity Shares of 100.40 100.00 ` 10 each of GSPC LNG Limited Total 135.60 135.04 st Notes to Standalone financial statements for the year ended 31 March, 2025 st st Particulars As at 31 As at 31 March, 2025 March, 2024 (a) Aggregate amount of quoted investments and market value thereof Nil Nil (b) Aggregate amount of unquoted investments 135.60 135.04 (c) Aggregate amount of impairment in value of investments Nil Nil Refer Note no. 45 for financial Instruments, fair value and measurements Note 8 NON-CURRENT FINANCIAL ASSETS : LOANS ( in Crores)` OTHER INFORMATION : ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Loan to Employees [Unsecured, considered good] 1.32 2.22 Total 1.32 2.22 Refer Note 45 for financial Instruments, fair value and measurements Refer Note 51 for Loans to Promoters, Directors, KMPs and Related parties 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 158 Note 9 NON-CURRENT FINANCIAL ASSETS : OTHERS ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Security Deposits (Refer Note 9.1) To Related Parties [Unsecured, considered good] 139.11 117.74 To Others [Unsecured, considered good] 63.87 75.33 To Others [Credit impaired] 7.33 9.27 210.31 202.34 Less: Allowance for bad and doubtful (7.33) (9.27) Less :Security Deposits adjustment for amortised cost (104.51) (88.97) Total Security Deposits 98.47 104.10 Receivable from employee [Unsecured, considered good] 0.95 0.37 Other Receivable [Considered Doubtful] 0.36 0.36 Less: Allowance for bad and doubtful (0.36) (0.36) Total 99.42 104.47 Note 9.1 The Company has given refundable security deposits in form of fixed bank deposits to various project authorities to be held in their name and custody. It will be refunded after satisfactory completion of work. The company has therefore shown these fixed bank deposits amounting 38.92 crores (Previous Year 49.28 crores) and interest accrued on such fixed bank deposits ` ` 9.72 crores (Previous Year 9.64 crores), till they are in custody with project authorities as “Security Deposits” under the Note- ` ` “Non- Current Financial Assets : Others” in the balance sheet. Refer Note 45 for financial Instruments, fair value and measurements Refer Note 48 for Related party balances st Notes to Standalone financial statements for the year ended 31 March, 2025 Refer Note 48 for Related party balances st *Refer Note 5.3.3 for reclassification of Hooking up charges & Way Leave charges on 1 April, 2024 from prepaid expenses to ROU Lease assets. Note 10 OTHER NON-CURRENT ASSETS ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Capital advances Capital advances [Unsecured, considered good] 72.14 111.21 Capital advances [Credit Impaired] 28.80 7.33 100.94 118.54 Less: Allowance for bad and doubtful (28.80) (7.33) Total 72.14 111.21 Advance payment of income tax - Non-current [Net of provisions] 18.54 40.54 (Refer Note 30) Prepaid Expenses* 39.03 129.85 Balances with Government authorities for Litigations 18.48 18.47 Balances with Government authorities - VAT credit refundable 214.68 205.12 Deferred employee benefit cost 4.17 1.74 Other non-current assets 0.07 0.07 Total 367.11 507.00 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Note 11 INVENTORIES ( in Crores)` Note 12 CURRENT FINANCIAL ASSETS : TRADE RECEIVABLES ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Natural Gas 20.55 16.67 Stores and spares 40.84 41.65 Deferred delivery-Natural Gas (Goods in transit) 0.47 0.35 Total 61.86 58.67 st st Particulars As at 31 As at 31 March, 2025 March, 2024 Trade Receivables Trade Receivables considered good - Secured 217.14 203.49 Trade Receivables considered good - Unsecured (Backed by Bank guarantee) 350.67 420.40 Trade Receivables considered good - Unsecured (Others) 306.14 266.79 Trade Receivables / Unbilled - credit impaired 24.99 21.29 Unbilled - Considered good 150.02 139.16 Total 1,048.96 1,051.13 Less: Allowance for bad and doubtful 24.99 21.29 Total 1,023.97 1,029.84 Refer Note 45 for financial Instruments, fair value and measurements Refer Note 48 for Related party balances 159 st Notes to Standalone financial statements for the year ended 31 March, 2025 Note 12.1 Trade Receivable ageing schedule:st As on 31 March, 2025: ( in Crores)` Particulars Outstanding for following period from due date of payment TotalMore than 3 years 2-3 years1-2 years6 months- 1 year Less than 6 months Not DueUnbilled (i) Undisputed Trade Receivables - - 708.37 134.95 6.24 7.05 4.47 0.87 861.95 Considered good (ii) Undisputed Trade Receivables - - - - - - - - - which have significant increase in credit risk (iii) Undisputed Trade Receivables - 0.25 1.00 3.98 2.79 3.61 1.32 1.11 14.06 Credit Impaired (iv) Disputed Trade Receivables - - 0.06 2.60 1.02 2.06 2.07 4.19 12.00 Considered Good (v) Disputed Trade Receivables - - - - - - - - - which have significant increase in credit risk (vi) Disputed Trade Receivables - - - 0.27 1.24 2.98 2.25 4.19 10.93 Credit Impaired (vii) Unbilled - Considered good 150.02 - - - - - - 150.02 Total 150.27 709.43 141.80 11.29 15.70 10.11 10.36 1,048.96 Less: Allowance for bad and doubtful (viii) Allowance for doubtful - (0.25) (1.00) (3.98) (2.79) (3.61) (1.32) (1.11) (14.06) Undisputed Trade receivables (ix) Allowance for doubtful - - - (0.27) (1.24) (2.98) (2.25) (4.19) (10.93) Disputed Trade receivables Net Trade Receivables 150.02 708.43 137.55 7.26 9.11 6.54 5.06 1,023.97 For Valuation - Refer note 2 (i) of Material Accounting Policies 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 160 st As on 31 March, 2024: ( in Crores)` Particulars Outstanding for following period from due date of payment TotalMore than 3 years 2-3 years1-2 years6 months- 1 year Less than 6 months Not DueUnbilled (i) Undisputed Trade Receivables - - 729.25 89.26 10.79 41.60 9.60 0.73 881.24 Considered good (ii) Undisputed Trade Receivables - - - - - - - - - which have significant increase in credit risk (iii) Undisputed Trade Receivables - 0.27 2.25 3.57 2.35 2.00 0.68 0.91 12.02 Credit Impaired (iv) Disputed Trade Receivables - - 0.04 1.71 0.95 2.06 1.03 3.64 9.44 Considered Good (v) Disputed Trade Receivables - - - - - - - - - which have significant increase in credit risk (vi) Disputed Trade Receivables - - 0.00 0.24 1.32 2.36 1.12 4.23 9.27 Credit Impaired (vii) Unbilled - Considered good 139.16 - - - - - - 139.16 Total 139.43 731.54 94.79 15.41 48.02 12.44 9.51 1,051.13 Less: Allowance for bad and doubtful (viii) Allowance for doubtful - (0.27) (2.25) (3.57) (2.35) (2.00) (0.68) (0.91) (12.02) Undisputed Trade receivables (ix) Allowance for doubtful - - (0.00) (0.24) (1.32) (2.36) (1.12) (4.23) (9.27) Disputed Trade receivables Net Trade Receivables 139.16 729.29 90.97 11.74 43.67 10.64 4.37 1,029.84 st Notes to Standalone financial statements for the year ended 31 March, 2025 Note 13 CURRENT FINANCIAL ASSETS : CASH AND CASH EQUIVALENTS ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 (a) Balance with banks Balance in bank account 86.83 117.52 (b) Balance with financial Institutions Deposits with original maturity of three months or less Intercorporate deposits/ Liquid deposits with Gujarat State Financial Services Ltd 236.13 795.73 (c) Cash on hand 3.90 2.73 Total 326.86 915.98 Refer Note 45 for financial Instruments, fair value and measurements Refer Note 48 for Related party balances Note 14 CURRENT FINANCIAL ASSETS : OTHER BANK BALANCES ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Earmarked balances in unclaimed dividend accounts (Refer Note 14.1) 2.20 1.64 Earmarked balances in CSR account 22.96 8.48 Margin money or security against borrowing, guarantees & other obligations 7.38 0.02 Total 32.54 10.14 Note 14.1 : The balances in dividend accounts are not available for use by the Company and the money remaining unpaid will be deposited in the Investor Education and Protection Fund after the expiry of 7 years from the date they became due for payment. No amount is due at the end of the period for credit to Investor Protection and Education fund. Refer Note 45 for financial Instruments, fair value and measurements Note 12.1 Trade Receivable ageing schedule: (Continued...) 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 161 st st Particulars As at 31 As at 31 March, 2025 March, 2024 Loans to employees [Unsecured, considered good] 2.25 2.99 Total 2.25 2.99 Figures INR 0.00 denotes amount less than INR 50,000/-. Refer Note 45 for financial Instruments, fair value and measurements Refer Note 51 for Loans to Promoters, Directors, KMPs and Related parties Note 16 CURRENT FINANCIAL ASSETS : OTHERS ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Deposits with Financial Institutions - Gujarat State Financial Services Ltd. 1,282.79 - Other Bank Deposits* 0.01 - Unbilled Receivables-Other Income 0.89 - Insurance claim receivable 0.19 0.03 Staff - Employee Advance 0.13 0.11 Receivable from employees 0.37 0.21 Other receivables [Unsecured, considered good]:- From Related parties 0.41 0.18 From Others (Mainly collection agencies, Franchisees) 13.85 12.30 Total 1,298.64 12.83 * Includes Margin money or security against borrowings & guarantees ` 0.01 crores (Previous year Nil) Refer Note 45 for financial Instruments, fair value and measurements Refer Note 48 for Related party balances Note 15 CURRENT FINANCIAL ASSETS : LOANS ( in Crores)` st Notes to Standalone financial statements for the year ended 31 March, 2025 Note 17 CURRENT ASSETS : OTHERS ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Advances for expenses To Related parties [Unsecured, considered good] 3.79 0.13 To Others [Unsecured, considered good] 19.49 12.20 Advances for expenses[Credit Impaired] 4.30 0.02 27.58 12.35 Less: Allowance for bad and doubtful (4.30) (0.02) Total 23.28 12.33 Prepaid Expenses* 20.92 28.02 Prepaid Expenses-CSR 0.19 0.80 Income tax assets - Current - (Refundable) (Refer Note 30) 4.76 - Indirect Tax credit receivable (Excise, VAT, GST etc.) 23.55 24.18 Balances with Government authorities - VAT credit refundable 144.56 131.85 Deferred employee benefit cost 1.81 1.18 Total 219.07 198.36 Refer Note 45 for financial Instruments, fair value and measurements Refer Note 48 for Related party balances st *Refer Note 5.3.3 for reclassification of Hooking up charges & Way Leave charges on 1 April, 2024 from prepaid expenses to ROU Lease assets. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 162 No. of shares Amount No. of shares Amount Shares outstanding at the beginning of the period 68,83,90,125 137.68 68,83,90,125 137.68 Add: Shares issued during the period - - - - Less: Changes during the period - - - - Shares outstanding at the end of the period 68,83,90,125 137.68 68,83,90,125 137.68 st st Particulars As at 31 March, 2025 As at 31 March, 2024 Equity Shares of Equity Shares of ` 2 each fully paid ` 2 each fully paid Note 18.3 Terms/ rights attached to equity shares The company has only one class of equity shares having a face value of 2 per share (previous year 2 each). Each holder of equity ` ` shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive residual assets of the company. The distribution will be in proportion to the number of equity shares held by the shareholders. Note 18.4 Share holding by prescribed entities Out of Equity shares issued by the company, shares held by its holding company and their subsidiaries and associates are as under: Note 18.2 Reconciliation of shares outstanding at the beginning and at the end of the reporting period ( in Crores)` st Notes to Standalone financial statements for the year ended 31 March, 2025 No. of Equity Amount No. of Equity Amount Shares of Shares of ` 2 each ` 2 each fully paid fully paid (i) Gujarat State Petronet Limited 37,28,73,995 74.57 37,28,73,995 74.57 (current year :- Holding Company and previous year :- Holding Company) (ii) Gujarat State Energy Generation Limited 13,32,235 0.27 13,32,235 0.27 (current year :- Subsidiary of Ultimate Holding Company and previous year :- Associate of Ultimate Holding Company) st st Share Holder (Nature of Relationship) As at 31 March, 2025 As at 31 March, 2024 Note 18.5 Shareholders holding more than 5 % of total share capital No. of % of No. of % of Shares held Holding Shares held Holding Equity Shares of ` 2 each Equity Shares of ` 2 each fully paid fully paid Gujarat State Petronet Limited 37,28,73,995 54.17% 37,28,73,995 54.17% Gujarat State Fertilizers and Chemicals Limited 4,69,14,475 6.82% 4,69,14,475 6.82% Government of Gujarat 4,49,77,310 6.53% 4,49,77,310 6.53% Life Insurance Corporation of India 4,17,15,184 6.06% 4,17,90,184 6.07% st st Name of Shareholder As at 31 March, 2025 As at 31 March, 2024 Note 18 SHARE CAPITAL Note 18.1 Authorised, issued, subscribed, fully paid up share capital ( in Crores)` No. of shares Amount No. of shares Amount Authorised Equity Shares of 2 each 8,67,55,00,000 1,735.10 8,67,55,00,000 1,735.10 ` 7.5% Redeemable preference Shares of 10 each 1,70,00,000 17.00 1,70,00,000 17.00 ` Preference shares of 10 each 50,00,000 5.00 50,00,000 5.00 ` Issued, Subscribed and Paid up Equity Shares of 2 each (fully paid-up) 68,83,90,125 137.68 68,83,90,125 137.68 ` Total 68,83,90,125 137.68 68,83,90,125 137.68 st st Particulars As at 31 March, 2025 As at 31 March, 2024 2024-2025 th 13 ANNUAL REPORT ( in Crores)`
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GUJARAT GAS LIMITED 163 Note 18.7 Details of Bought back of shares, Bonus Shares and Shares issue without payment being received in Cash: The company has not bought back any equity shares, has not allotted any shares as fully paid up pursuant to contracts without payment being received in cash and has not allotted bonus shares during the period of five years immediately preceding the date of balance sheet. Further, there are no shares which are reserved for issue under options and contracts or commitments for the sale of shares or disinvestment. Note 18.8 Proposed Dividend: th The Board of Directors, in its meeting on 19 May, 2025, have proposed a final dividend of ` 5.82 per equity share (Face value of ` 2/- st each) for the financial year ended on 31 March, 2025. The proposal is subject to the approval of shareholders at the Annual General Meeting and, if approved, would result in a cash outflow of ` 400.64 crores.th The Board of Directors, in its meeting on 6 May, 2024, had proposed a final dividend of ` 5.66 per equity share (Face value of ` 2/- st each) for the financial year ended on 31 March,2024.The proposal was approved by shareholders at the Annual General Meeting and this resulted in a cash outflow of ` 389.63 crores. Dividend Recognition: The Company recognises a liability for dividends to equity holders of the Company when the dividend is authorised. As per the corporate laws in India, a dividend is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in other equity. st Notes to Standalone financial statements for the year ended 31 March, 2025 Note-19 OTHER EQUITY ( in Crores)` Particulars As at As atst st 31 March, 2025 31 March, 2024 (A) Reserves & Surplus General Reserve Opening Balance 2.72 2.72 Add/Less : Adjustment during the year - - Closing Balance 2.72 2.72 Amalgamation and arrangement Reserve Opening Balance 879.59 879.59 Add/Less : Adjustment during the year - - Closing Balance 879.59 879.59 Capital Reserve Opening Balance (23.98) (23.98) Add/Less : Adjustment during the year - - Closing Balance (23.98) (23.98) Retained Earnings Opening balance 6,791.02 6,101.00 Add: Profit during the year 1,145.51 1,142.77 Remeasurement of post employment benefit obligation (net of tax) 5.68 5.03 Total 7,942.21 7,248.80 Less : Appropriations Dividend (389.63) (457.78) Closing Balance 7,552.58 6,791.02 Total (A) 8,410.91 7,649.35 (B) Equity instrument through OCI Opening Balance (97.78) (101.41) Add/Less : Change in fair value of equity instrument (net of tax) 2.83 3.63 Closing Balance (B) (94.95) (97.78) Total other equity (A+B) 8,315.97 7,551.58 Note 18.6 Disclosures of Shareholding of Promoters - Shares held by the Promoters: Gujarat State Petroleum Corporation Limited Equity - - - - - Gujarat State Petronet Limited Equity 37,28,73,995 54.17% 37,28,73,995 54.17% 0.00% Government of Gujarat Equity 4,49,77,310 6.53% 4,49,77,310 6.53% 0.00% Gujarat State Energy Generation Limited Equity 13,32,235 0.19% 13,32,235 0.19% 0.00% Total 41,91,83,540 60.89% 41,91,83,540 60.89% Promoter name st As at 31 March, 2025 st As at 31 March, 2024Class of Shares No. of Shares No. of Shares % of total shares % of total shares % Change during the year th The Board of Directors, in its meeting on 6 May, 2024, had proposed a final dividend of ` 5.66 per equity share (Face value of st ` 2/- each) for the financial year ended on 31 March, 2024.The proposal was approved by shareholders at the Annual General Meeting and this resulted in a cash outflow of ` 389.63 crores. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 164 Nature and purpose of reserves : General reserve The general reserve is used from time to time to transfer profits from retained earnings for appropriation purpose. As the general reserve is created by transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit and loss. Amalgamation and Arrangement Reserve The "Amalgamation and Arrangement Reserve", created pursuant to scheme of amalgamation and arrangement, is treated as th free reserve based on the judgment of Honourable Gujarat High Court dated 18 April, 2015 read with relevant other court decisions. Retained Earnings Retained earnings represents surplus / accumulated earnings of the company available for distribution to shareholders. Capital Reserve Capital Reserve not available for distribution of dividend and expected to remain invested permanently. Negative capital reserve represents difference between the consideration and carrying amount of net assets/liabilities acquired as per business transfer agreement for transactions among entities under common control. Equity instrument through OCI The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the Equity instrument through OCI reserve within equity. st Notes to Standalone financial statements for the year ended 31 March, 2025 Note 20 NON-CURRENT FINANCIAL LIABILITIES: BORROWINGS ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Term loans - From Banks - - - From Others - - Total - - Note 21 LEASE LIABILITIES ( in Crores)` Non-Current Current Non-Current Current Lease Liabilities (Refer note 50) 115.16 34.82 117.77 32.49 Total 115.16 34.82 117.77 32.49 st st Particulars As at 31 March, 2025 As at 31 March, 2024 Note 22 NON-CURRENT PROVISIONS ( in Crores)` Note 23 DEFERRED TAX LIABILITIES (Net) ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Provision for employee benefits (Refer note 47) Provision for Long service benefits 1.20 1.07 Provision for leave encashment 45.91 51.51 Total 47.11 52.58 st st Particulars As at 31 As at 31 March, 2025 March, 2024 A. Deferred tax Liabilities Tax effect of items constituting : Property, plant and equipment, Intangible assets, Investment property & 1,014.32 960.80 ROU Lease assets Investments 4.95 7.22 Total - A 1,019.27 968.02 B. Deferred tax asset Tax effect of items constituting : Employee benefits 12.19 13.64 Provisions 20.12 17.56 Other items* 28.08 26.07 Total - B 60.39 57.27 Deferred tax Liabilities (Net) (A-B) 958.88 910.75 *Other items includes effects of Leases (IND AS-116), Deferred revenue (IND AS-115), financial instruments measurement etc. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED (a) Deferred tax balances and movement for FY 2024-25 ( in Crores)` Deferred tax Liabilities - Tax effect of items constituting - Property, plant and equipment, 960.80 - 53.52 - - 1,014.32 Intangible assets, Investment property & ROU Lease assets Investments 7.22 - - (2.27) - 4.95 Total 968.02 - 53.52 (2.27) - 1,019.27 Deferred tax asset- Tax effect of items constituting - Employee benefits 13.64 - 0.46 (1.91) - 12.19 Provisions 17.56 - 2.56 - - 20.12 Other items 26.07 - 2.01 - - 28.08 Total 57.27 - 5.03 (1.91) - 60.39 Net deferred tax Liabilities 910.75 - 48.49 (0.36) - 958.88 165 Particulars As at Recognised in profit or loss Recognised Other As at st st 1 April, Restatement Others in OCI Adjustments 31 March, 2024 2025 st Notes to Standalone financial statements for the year ended 31 March, 2025 (b) Deferred tax balances and movement for FY 2023-24 ( in Crores)` Particulars At as Recognised in profit or loss Recognised Other As at st st 1 April, Restatement Others in OCI Adjustments/ 31 March, 2023 Capital Reserve 2024 Deferred tax Liabilities - Tax effect of items constituting - Property, plant and equipment, 909.08 - 51.72 - - 960.80 Intangible assets, Investment property & ROU Lease assets Investments 6.19 - - 1.03 - 7.22 Total 915.27 - 51.72 1.03 - 968.02 Deferred tax asset - Tax effect of items constituting - Employee benefits 14.26 - 1.07 (1.69) - 13.64 Provisions 30.57 - (13.01) - - 17.56 Other items 24.34 - 1.73 - - 26.07 Total 69.17 - (10.21) (1.69) - 57.27 Net deferred tax Liabilities 846.10 - 61.94 2.72 - 910.75 Notes: The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority. Significant management judgment is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income by each jurisdiction in which the relevant entity operates and the period over which deferred income tax assets will be recovered. Note 23 DEFERRED TAX LIABILITIES (Net) (Continued...) Note 24 OTHER NON-CURRENT LIABILITIES ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Deferred Revenue ( Refer Note 49) 75.99 73.05 Total 75.99 73.05 Particulars As at Expiry date As at Expiry date st st 31 March, 2025 31 March, 2024 Expire Nil NA Nil NA Never Expire Nil NA Nil NA (c) Tax losses carried forward 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Note 25 CURRENT FINANCIAL LIABILITIES : BORROWINGS ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Loans Repayable on demand -From Banks - - Total - - The Company does not have any defaults in repayment of loans and interest as at the reporting date. The Company has obtained unsecured working capital Overdraft facilities wherein submission of the quarterly returns/ statements of current assets is not applicable. Refer Note 45 for financial Instruments, fair value and measurements. 166 st Notes to Standalone financial statements for the year ended 31 March, 2025 Note 26 CURRENT FINANCIAL LIABILITIES : TRADE PAYABLES ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 A. Total outstanding dues of micro enterprises and small enterprises - Trade payables others (Refer Note 44) 35.32 26.50 Unbilled dues 29.86 24.67 Total (A) 65.18 51.17 B. Total outstanding dues of creditors other than micro enterprises and small enterprises:- Trade payables - Gas Purchase / Transmission 410.51 438.42 Trade payables - Others 81.29 81.97 Unbilled dues 162.96 128.65 Total (B) 654.76 649.04 Total (A+B) 719.94 700.21 Refer Note 45 for financial Instruments, fair value and measurements Refer Note 48 for Related party balances Note 26.1 Trade Payable ageing schedule: st As on 31 March, 2025: ( in Crores)` st As on 31 March, 2024: ( in Crores)` Particulars Outstanding for following period from due date of payment TotalMore than 3 years 2-3 years1-2 yearsLess than 1 Year Not DueUnbilled (i) MSME 29.86 35.06 - - - - 64.92 (ii) Others 162.96 461.84 23.10 2.82 1.04 0.40 652.16 (iii) Disputed dues - MSME - 0.26 - - - - 0.26 (iv) Disputed dues -Others - 0.54 0.13 0.03 0.03 1.87 2.60 Total 192.82 497.70 23.23 2.85 1.07 2.27 719.94 Particulars Outstanding for following period from due date of payment TotalMore than 3 years 2-3 years1-2 yearsLess than 1 Year Not DueUnbilled (i) MSME 24.67 26.50 - - - - 51.17 (ii) Others 128.65 485.44 28.40 1.40 0.33 0.24 644.46 (iii) Disputed dues - MSME - - - - - - - (iv) Disputed dues -Others - 3.52 0.41 0.06 0.50 0.09 4.58 Total 153.32 515.46 28.81 1.46 0.83 0.33 700.21 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 167 Refer Note 45 for financial Instruments, fair value and measurements Refer Note 48 for Related party balances Note 27 CURRENT FINANCIAL LIABILITIES : OTHERS ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Capital creditors and other payables (Including retentions):- - Total outstanding dues of micro enterprises and small enterprises (Refer note 44) 150.28 142.18 - Total outstanding other than dues of micro enterprises and small enterprises 76.52 102.62 226.80 244.80 Security Deposits from customers (Including accrued interest) 1,574.97 1,469.64 Security Deposit from customers towards MGO 131.46 130.74 Security Deposit from collection centres 4.57 5.07 Security Deposits from Suppliers and others 43.10 53.78 Unclaimed dividend (Refer Note 27.1) 2.20 1.64 Other current financial liabilities 4.07 2.52 Total 1,987.17 1,908.19 st Notes to Standalone financial statements for the year ended 31 March, 2025 Note 27.1 The balance with the bank for unpaid dividend is not available for use by the Company and the money remaining unpaid will be deposited in Investor Education and Protection Fund u/s 124(5) of Companies Act, 2013 after the expiry of seven years from the date of declaration of dividend. No amount is due at the end of the period for credit to Investors education and protection fund. Note 28 CURRENT LIABILITIES : OTHERS ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Provision for employee benefits (Refer note 47) Provision for gratuity 0.69 2.48 Provision for leave encashment 1.55 1.89 Provision for bonus & incentives 18.71 22.17 Provision for other employee benefits 0.14 0.07 Other Provisions 6.83 0.22 Total 27.92 26.83 st st Particulars As at 31 As at 31 March, 2025 March, 2024 Advances from customer 65.97 64.96 Deferred Revenue (Refer Note 49) 12.10 11.84 Statutory dues payable (Includes Excise duty, VAT, GST, TDS, PF etc.) 36.18 27.08 Liability for unspent CSR expenses (Refer note 54) 52.73 36.59 Other Current Liabilities 0.09 0.12 Total 167.07 140.59 Note 29 CURRENT PROVISIONS ( in Crores)` Note 30 CURRENT TAX LIABILITIES (NET) ( in Crores)` INCOME TAX ASSETS AND LIABILITIES (NET) Details of Income tax assets and income tax liabilities ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Current income tax liabilities (Net of advance tax, TDS and TCS) 27.41 6.63 Total 27.41 6.63 st st Particulars As at 31 As at 31 March, 2025 March, 2024 (a) Advance payment of income tax - Non-current [Net of provisions] (Refer Note 10) 18.54 40.54 (b) Advance payment of income tax - Current - (Refundable) (Refer Note 17) 4.76 - (c) Current income tax liabilities (Refer Note 30) 27.41 6.63 Net Asset (a+b-c) (4.11) 33.91 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 168 Movement in income tax asset/(liability) ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Net current income tax asset/(liability) at the beginning of the period 33.91 42.70 Movement during the year on account of : Income tax paid for the year 319.56 318.46 Provision for Income tax for the year (Refer Note 40(a)) (346.97) (325.09) Prior year tax paid /refund adjusted with tax / other items 12.38 (2.16) Income tax refund received (22.99) - Net current income tax asset/(liability) at the end of the period (4.11) 33.91 st Notes to Standalone financial statements for the year ended 31 March, 2025 Note 31 REVENUE FROM OPERATIONS ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Sale of Product (Including excise duty) Natural Gas 17,079.52 16,199.63 Other operating revenue Gas transmission / Compression Income (Including excise duty) 13.94 9.02 Yearly fees Income 29.55 28.16 Take or Pay Income 29.43 24.47 Connection, Service and Fitting Income 27.72 26.74 Other Operating Income 4.81 4.95 105.45 93.34 Total 17,184.97 16,292.97 Note 32 OTHER INCOME ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Interest Income From Deposits with Banks/Financial Institutions* 97.02 43.85 From Customers on delayed payments 14.89 17.27 From Other financial assets at amortised cost (EIR) 2.10 1.67 Others (including interest on tax refunds Current year 27.98 crores, 28.63 0.47 ` Previous year 0.06 crores)** ` Total 142.64 63.26 Dividend on Investments 1.68 1.64 Late payment charges 15.58 12.28 Net gain on Foreign Currency Transactions (Refer Note 38.3) - 0.05 Provisions / liabilities no longer required written back 27.27 4.84 Profit on Lease termination / modification / reassessment (net) - 0.02 Profit on sale as scrap 0.88 0.98 Net gain on Sale of Investments - 0.06 Other Non-Operating Income 21.92 24.62 Total 209.97 107.75 *Includes interest Income on Security deposits in form of fixed/ liquid deposits with banks/ financial institutions **Includes interest income on deposits, staff advances and employee loans Figures INR 0.00 denotes amount less than INR 50,000/-. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 169 Note 33 COST OF MATERIALS CONSUMED / PURCHASE OF STOCK IN TRADE ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Natural Gas - Purchase 12,558.14 11,917.95 Gas Transportation Charges 661.86 634.91 Change in Deferred delivery of natural gas (GIT):- Add :- Opening balance 0.35 2.89 Less:- Closing balance 0.47 0.35 Net Change in Deferred delivery of natural gas (GIT) (0.13) 2.54 Total 13,219.87 12,555.40 st Notes to Standalone financial statements for the year ended 31 March 2025 Note 34 CHANGES IN INVENTORIES OF NATURAL GAS ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Changes in inventories of finished goods, stock in trade and work in progress - Natural Gas Inventory at the beginning of the year 16.67 16.92 Less: Inventory at the end of the year 20.55 16.67 Total (3.89) 0.25 Note 35 EMPLOYEE BENEFIT EXPENSE ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Salaries and Wages 154.95 159.99 Contribution to Provident and Other Funds- Gratuity (Refer note 47) 21.13 21.72 Leave Encashment & Other benefits 1.06 4.28 Staff Welfare Expenses 12.16 12.89 Total 189.30 198.88 Note 36 FINANCE COSTS ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Interest on Borrowings 0.03 0.21 Interest on Security Deposits & Others 20.90 18.15 Interest expenses on lease liability (Refer note 50) 10.15 10.47 Interest on Income Tax 1.41 0.48 Total 32.49 29.31 Note 37 DEPRECIATION AND AMORTISATION EXPENSE ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Depreciation of property, plant and equipment (Refer note 3.1) 438.03 413.53 Amortisation of intangible assets (Refer note 5.1) 26.64 27.36 Amortisation of Right-of-use (ROU) assets (Refer note 5.3) 45.91 33.41 Depreciation of Investment Property (Refer note 4) 0.06 - Total 510.64 474.30 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 170 Note 38 OTHER EXPENSES (` in Crores) Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Consumption of Stores & Spares Parts 18.89 17.31 Power and Fuel 218.81 189.58 Repairs and Maintenance: - Buildings 2.93 1.28 - Plant and Machinery 362.04 316.07 - Others 19.64 16.28 Gas Compression charges 14.55 12.32 Lease Charges-Others (Refer Note 38.1) 34.28 39.73 LCV/HCV Hiring, Operating and Maintenance Charges (Refer Note 38.1) 80.58 75.66 Franchisee Commission and Other Facility charges 145.72 115.65 Agency & Contract Staff Expenses 37.31 35.72 Legal, Professional & Consultancy Charges 31.54 23.13 ROW Running Charges 73.96 79.08 Loss on sale / write-off of Fixed Assets including provisions (net) 8.94 2.91 Bank Charges 19.31 24.21 Billing and Collection Expenses 13.52 13.74 Vehicles Hiring / Running Expenses 12.15 12.42 Office Expenses 11.01 9.48 Postage, Courier and communication Expenses 3.79 5.29 Allowance for Doubtful Trade Receivables/Advances/Deposits(net) 29.45 4.83 Bad Debt written off 1.23 - Advertisement & Business Promotion Expenses 4.65 6.90 Insurance Premium Expenses 4.86 6.79 Rates, Taxes and Duties 2.71 2.00 Travelling and Conveyance 1.65 1.29 Stationery and Printing Expenses 1.95 2.21 Corporate Social Responsibility Expenses (Refer Note no. 54) 35.46 36.58 Payment to Auditors (Refer Note 38.2) 0.35 0.35 Provision for Diminution in value of Inventory 6.11 0.09 Miscellaneous Expenses 4.50 8.38 Net loss on foreign currency transaction (Refer Note 38.3) 0.02 - Total 1,201.91 1,059.28 Note 38.1 Leases charges-Others includes rental charges of all assets that have lease period of 12 month or less, rental charges of low value assets, variable lease payments and component of taxes of ROU lease charges. LCV/HCV Hiring, Operating and Maintenance Charges includes non lease component viz. manpower, fuel cost, repair and maintenance and rental charges of LCV/HCV lease assets that have lease period of 12 month or less. (Refer note 50). Note 38.2 Payment to Auditors ( in Crores)` Figures INR 0.00 denotes amount less than INR 50,000/-. Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 For fees as auditors 0.35 0.35 For Out of pocket expenses - - For Other services 0.11 0.00 Total 0.46 0.35 st Notes to Standalone financial statements for the year ended 31 March, 2025 Figures INR 0.00 denotes amount less than INR 50,000/-. Note 38.3 Net (gain) or loss on foreign currency transaction ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Loss on foreign currency transaction 0.02 - Gain on foreign currency transaction - 0.05 Net (gain) or loss on foreign currency transaction 0.02 (0.05) 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 171 Note 39 EXCEPTIONAL ITEMS ( in Crores)` Exceptional income in previous year pertains to write-back of provisions made in earlier periods for trade margin on sale of CNG, following the settlement of matter with the Oil Marketing Companies. Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Exceptional item (Income) / Expense - (55.69) Total - (55.69) Note 40 TAX EXPENSE (a) Amounts recognised in statement of profit and loss ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Income Tax Expenses Current Tax (a) Current income tax 346.97 325.09 (b) Short/(Excess) provision of income tax in respect of previous years 5.63 6.41 Total (A) 352.60 331.50 Deferred tax Deferred tax expense / (Income)- net (a) In respect of current year, Origination and reversal of temporary 54.70 68.35 differences (b) Short/(Excess) provision of income tax in respect of previous years (6.21) (6.41) Total (B) 48.49 61.94 Tax expense for the year ( A+B) 401.09 393.44 (b) Reconciliation of effective tax rate and tax expense with accounting profit ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Profit before tax 1,546.60 1,536.21 Tax using the Company’s domestic tax rate (Current year 25.17% and 389.25 386.63 Previous Year 25.17%) Tax effect on account of: Expenses not deductible or disallowances for tax purposes - CSR, 8.86 8.92 Interest u/s. 234B / 234C, Deduction u/s 80M etc. Other items 0.35 0.35 Impact of Long Term Capital Gain on Land 3.22 (2.46) Impact of (Excess)/Short provisions of earlier year taxes (0.58) - Total 401.09 393.44 st Notes to Standalone financial statements for the year ended 31 March, 2025 Note 41 STATEMENT OF OTHER COMPREHENSIVE INCOME ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Items that will not be reclassified to profit or loss I. Equity Instruments through Other Comprehensive Income Fair value of unquoted investments - gain / (expense) 0.56 4.66 Tax impact on unquoted investments- gain / (expense) 2.27 (1.03) II. Remeasurement gains/ (losses) on defined employee benefit plans Actuarial gains 7.59 6.72 Tax impact on actuarial gains (1.91) (1.69) Total of Items that will not be reclassified to profit or loss 8.15 11.38 Total Tax impact 0.36 (2.72) Total 8.51 8.66 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 172 Note 42 EARNING PER SHARE (EPS) EARNINGS PER EQUITY SHARE- FACE VALUE OF ` 2 EACH The following reflects the income and share data used in the basic and diluted EPS computations: Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Profit for the year (Profit attributable to equity shareholders) ( in Crores) 1,145.51 1,142.77 ` Weighted average number of ordinary equity shares for Basic EPS (in Nos.) 68,83,90,125 68,83,90,125 Weighted average number of ordinary equity shares for Diluted EPS (in Nos.) 68,83,90,125 68,83,90,125 Face Value of equity share ( ) 2.00 2.00 ` Basic EPS ( ) 16.64 16.60 ` Diluted EPS ( ) 16.64 16.60 ` Note:- Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares. The Company does not have any outstanding dilutive potential equity shares. Consequently, the basic and diluted earnings per share of the Company remain the same. st Notes to Standalone financial statements for the year ended 31 March, 2025 Note 43 CONTINGENT LIABILITIES & CONTINGENT ASSETS (A) CONTINGENT LIABILITIES ( in Crores)` st st Contingent liabilities As at 31 As at 31 (to the extent not provided for) March, 2025 March, 2024 Contingent Liabilities (a) Contingent Liabilities - Statutory claims ( Refer Note 43.1) Disputed statutory dues in respect of which Appeals are filed against / by the Company : (i) Excise Duty 18.60 18.28 (ii) Income Tax 22.61 11.03 (iii) Service Tax 37.66 37.66 (iv) GST 16.26 15.13 Total 95.13 82.10 (b) Claims / Litigations against the company not acknowledged as debt 482.99 483.77 (Refer Note 43.2) Total 578.12 565.87 The Company has reviewed all its pending claims, litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The company does not expect the outcome of these claims, litigations and proceedings to have a materially adverse effect on its financial position. Note 43.1 Disputed statutory dues in respect of which Appeals are filed against / by company The Company is contesting the demands and the management including its advisors believe that its position is likely to be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the company's financial position and results of operations. Note 43.2 Claims / Litigations against the company not acknowledged as debt includes the following major matters: (i) UPL Limited (UPL) a customer of erstwhile Gujarat Gas Company Limited (GGCL) (now known as Gujarat Gas Limited) had filed a complaint before Petroleum and Natural Gas Regulatory Board (PNGRB) against erstwhile GGCL alleging charging of tariff illegally under the City Gas Network Distribution Agreement entered into between the parties and filed claim of approx. ` 76.98 Crores. The matter was decided against the company by PNGRB vide its Order dated 20.10.2014. The company had preferred an appeal at Appellate Tribunal for Electricity (APTEL) against the aforementioned PNGRB Order. APTEL has delivered final judgement on 10.03.2021 in favour of the Company by setting aside the aforementioned PNGRB Order, and has recorded that invocation of HAPI tariff by PNGRB for the negotiated arrangement between the parties was not only against the letter and spirit of regulations defining tariff zone but also tantamount to rewriting of contract. UPL has preferred an appeal before the Hon’ble Supreme Court of India against the order of APTEL dated 10.03.2021. Presently, the matter is pending before Hon’ble Supreme Court of India. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 173 (ii) One of the gas suppliers of the Company has submitted claims of ` 212.27 crores (P. Y. ` 212.27 crores), for use of allocated gas for other than specified purpose, related to FY 2013-14 to FY 2021-22 and no claim is received from supplier for FY 2022-23, FY 2023-24 and FY 2024-25. The company has refuted this erroneous claim and also there is no contractual provision of the agreement executed with GGL that allows such claim. The management is of the firm view that the company is not liable to pay any such claim. The company has already taken up the matter with concerned party to withdraw the claim. (iii) The company has initiated an arbitration proceeding against one of the franchisees claiming compensation for loss of revenue. While replying to the claim, the said franchisee has also filed a counter claim of ` 177.14 crores (P.Y. ` 177.14 crores) against the company claiming compensation for various losses. The company has filed necessary rejoinder to the counter claim strongly refuting the same mainly on the grounds that the counter claims are wrong and without merits and as are not flowing from the same agreement under which the arbitral tribunal has been constituted. Currently arbitral proceedings of this matter is pending before the sole arbitrator. Note 43.3 The following demands / Litigations / matters are not included in above (i) Erstwhile Gujarat Gas Company Limited and Erstwhile GSPC Gas Company Limited (Now collectively known as Gujarat Gas Limited “GGL”) had signed Gas supply agreement with Gujarat State Petroleum Corporation Limited (GSPCL) for purchase of Re-gasified liquified natural gas (RLNG). As per the provision of said agreement, GGL has to pay interconnectivity charges to GSPCL for the supply and purchase of RLNG at Delivery point which is charged to GSPCL by their supplier i.e. PLL Off takers (GAIL India, BPCL, IOCL). PNGRB had vide its order dated 13.09.2011 and the majority members of PNGRB (three member panel of Board) had vide its order dated 10.10.2011 held that GAIL had adopted Restrictive Trade Practices by blocking off direct connectivity to GSPCL and further, directed Respondents (PLL Off takers -GAIL India, BPCL, IOCL) to immediately give direct connectivity to GSPCL at Dahej Terminal. The PLL Offtakers (GAIL) filed appeals against the said PNGRB orders before the Appellate Tribunal for Electricity (APTEL). On 23.02.2012 APTEL had issued an interim order for shifting the Delivery Point from GAIL-GSPL Delivery Point to GSPL-PLL Delivery Point. On 18.12.2013 APTEL issued its judgment and required GSPCL to pay the amount of the difference between ` 8.74/MMBTU (exclusive of Service Tax) – earlier connectivity charges and ` 19.83/MMBTU (Exclusive of Service Tax) – th th HVJ/DVPL Zone-1 tariff to GAIL for the period from 20 November, 2008 to 29 February, 2012. GSPCL had filed an appeal against the APTEL’s above referred judgment before Hon’ble Supreme Court of India (GSPCL vs. GAIL & Others, Civil Appeal No. 2473-2476 of 2014) and the Hon’ble Supreme Court of India had passed the Interim Order on th 28 February, 2014. The Court has stated that the ends of justice would be met if as a matter of interim arrangement, the appellant is directed to pay interconnectivity charges at the rate of ` 12.00 per MMBTU (exclusive of Taxes). The Company has already provided and paid interconnectivity charges at the rate of ` 12.00 per MMBTU (exclusive of Taxes). GGL has not received any bill / demand note for the amount over and above ` 12.00 per MMBTU from supplier till date. As the final liability would only be determined post the final order of the court, quantification of any amount as contingent liability in the interim is inappropriate due to the uncertainty involved and hence the same is not mentioned / disclosed in the financial statement. th (ii) The Company deposited ` 464.78 crores on 12 June, 2013 into the escrow account ("named BG Asia Pacific Holdings Pte. Limited GSPC Distribution Networks Limited Escrow Account") opened with Citibank N.A., acting as the escrow agent, pursuant to the escrow agreement executed between the BG Asia Pacific Holdings Pte. Limited (the Seller), Gujarat Gas Limited (Formerly known as GSPC Distribution Networks Limited) (the Purchaser) and Citibank N.A. The Payment of said amount into Escrow Account was to be utilized to meet future tax withholding liability (if any) based on outcome of the applications to the Authority for Advance Rulings or otherwise to be remitted to BG Asia Pacific Holdings Pte. Limited (the Seller) directly. The Company has received the ruling from the Hon’ble Authority for Advance Ruling (“AAR”), vide consolidated ruling order th dated 25 February, 2021 wherein the Hon’ble AAR has held that the transaction Price is not subject to any tax withholding in India and the Purchaser is not required to withhold tax since the capital gains is not subject to tax in India in view of Article 13(4) of the India Singapore Tax Treaty under India Singapore Double Tax Avoidance Agreement in the hands of the Seller. Pursuant to the ruling of the Hon’ble AAR and as per the terms of the Escrow Agreement, amount of ` 464.78 crores kept in Escrow th Account had been remitted to the BG Singapore on 7 April, 2021. In the financial year 2021-22, Commissioner of Income Tax (International Taxation) – 3 (CIT), has filed Civil Misc. Writ Petition against BG Singapore, challenging the AAR Ruling before the Hon’ble High Court of Uttarakhand at Nainital on 22.09.2021. CIT has also filed Impleadment /Amendment Application in Civil Misc. Writ Petition before the Hon’ble High Court of Uttarakhand at Nainital on 08.01.2022 for amendment of cause title of the petition and added Commissioner of Income Tax (IT & TP), Ahmedabad as Petitioner No. 2 and GGL as Respondent No. 2. Currently, the Impleadment /Amendment Application is in process for admission with Hon’ble High Court of Uttarakhand. st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 174 As per Share purchase agreement, the Seller had agreed to indemnify, defend and hold harmless the Purchaser from and against th any Tax claim notice receives on or prior to the expiry of 10 years from the Closing date (i.e. up to 11 June, 2023) in respect of Seller’s sale of shares to the Purchaser. Company. Currently, the Impleadment /Amendment Application for challenging the AAR Ruling is in process for admission with Hon’ble High Court of Uttarakhand. In view of this, there is remote possibility of any outflow in this matter and hence, the same has not been considered as Contingent Liability. (iii) Two entities, who have been authorized by the Petroleum and Natural Gas Regulatory Board (PNGRB), have filed complaints against the Company before the PNGRB for claiming compensation with respect to the unauthorized development / operations of CGD infrastructure activities carried out by the Company in their authorised area. The Company has also filed a complaint against one of the entities before the PNGRB for unauthorized development / operations of CGD infrastructure in area authorised to the Company. Further, the Company has raised objections to the maintainability of the such complaints, which are yet to be determined by the PNGRB. The quantification of any liability is not ascertainable at this stage. However, the Company is hopeful of arriving at amicable resolution of the subject issues. (B) CONTINGENT ASSETS (i) The Company has raised claim of ` 43.08 crores (Previous year ` 43.08 crores) for net credit of natural gas pipeline tariff as per PNGRB Order with one of the suppliers and supplier is disputing company’s claim and indicating for adjusting the partial claim of ` 30.72 crores (Previous year ` 30.72 crores) out of total claim ` 43.08 crores (Previous year ` 43.08 crores) against disputed liability for use of allocated gas other than specified purpose, against demand in earlier year (Refer Point 43.2-(ii) above). (ii) The Company has filed an appeal before the Appellate Tribunal for Electricity (APTEL) against the PNGRB order related to the matter held that the Gas Swapping Arrangement Guidelines of PNGRB is applied erroneously. APTEL has issued the order in favour of GGL. The said supplier has filed appeal at Hon’ble Supreme Court of India against the order of APTEL. Presently, the matter is pending in Hon’ble Supreme Court of India. Currently, GGL is paying ` 19.83 per mmbtu or tariff determined as transmission charges for domestic gas being purchased and delivered by GAIL at one of the delivery points . If verdict is in favour of GGL, GGL will get refund of ` 413.71 crores (Previous year ` 305.82 crores) from December 2013 till March 2025 and the company shall be required to pass on the benefit to its customers as per relevant order of the Court. (iii) The Company is having other certain claims, litigations and proceedings which are pursuing through legal processes. The management believe that probable outcome in all such claims, litigations and proceedings are uncertain. Hence, the disclosure of such claims, litigations and proceedings is not required in the financial statements. st Notes to Standalone financial statements for the year ended 31 March, 2025 (C) COMMITMENTS ` ( in Crores) st st Sr Commitments (to the extent not provided for) As at 31 As at 31 No. March, 2025 March, 2024 1 Estimated amount of contracts remaining to be executed on capital account 734.54 925.41 and not provided for 2 Estimated amount of contracts remaining to be executed on revenue account 1,360.03 1,345.00 and not provided for Total 2,094.57 2,270.42 Other commitments (i) All term contracts for purchase of natural gas with suppliers, has contractual volume off take obligation of “Take or Pay” (ToP) as specified in individual contracts. Quantification of ToP amount is dependent on various factors like actual purchase quantity, gas purchase prices of respective contract etc. As these factors are not predictable, ToP commitment amount is not quantifiable. (ii) The Company has been granted authorization for laying, building, operating and expanding CGD network in the total 27 geographical area under the Petroleum and Natural Gas Regulatory Board (Authorizing entities to lay, build, operate or expand city or local Natural Gas Distribution Networks) Regulation 2008, against which Company is required to complete Minimum Work Programme (MWP) target for development of CGD network under the terms of authorisation awarded by Petroleum and Natural Gas Regulatory Board (PNGRB). For this purpose, the Company had submitted performance bank guarantees (issued by banks on behalf of the Company) amounting to ` 5986.43 crores (previous year ` 6528.83 crores) to the Petroleum and Natural Gas Regulatory Board. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Note 44 DISCLOSURE AS REQUIRED BY THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 The disclosure pursuant to the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED Act) for dues to micro enterprises and small enterprises is as under: ( in Crores)` st st Sr. Particulars As at 31 As at 31 No. March, 2025 March, 2024 1 The principal amount outstanding as at the end of accounting year. a) Trade payable b) Capital creditors 2 Principal amount due and remaining unpaid as at the end of accounting year. 3 Interest paid by the company in terms of section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), along with the amount of the payment made to the supplier beyond the appointed day during accounting year. 4 Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the Micro, Small and Medium Enterprises Development Act, 2006. 5 Interest accrued and remaining unpaid at the end of accounting year (Refer Note below). 6 Further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance as a deductible expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006. 65.18 51.17 150.28 142.18 - - - - - - - - - - 175 Note: No interest has been paid by the Company to the enterprises covered under Micro, Small and Medium Enterprises Development Act, 2006 according to the terms agreed with the enterprises. The above information regarding micro and small enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company. Note 45 FINANCIAL INSTRUMENTS (FAIR VALUE MEASUREMENTS) AND FINANCIAL RISK MANAGEMENT The Company has various financial assets and liabilities. The disclosures regarding the classification, fair value hierarchy, markets risk, credit risks and liquidity risks are as follows: A. ACCOUNTING CLASSIFICATION AND FAIR VALUES st 31 March, 2025 FVTPL FVTOCI Amortised Total Level 1 - Level -2 Level 3 - Total Cost Quoted Significant Significant price in observable unobservable active inputs inputs markets Financial assets Investments - 135.60 - 135.60 - - 135.60 135.60 Financial assets measured at amortised cost Loans (Non-current) - - 1.32 1.32 - - - - Loans (Current) - - 2.25 2.25 - - - - Other financial assets(Non-current) - - 99.42 99.42 - - - - Other financial assets (Current) - - 1,298.64 1,298.64 - - - - Trade receivables - - 1,023.97 1,023.97 - - - - Cash and cash equivalents - - 326.86 326.86 - - - - Other bank balances - - 32.54 32.54 - - - - Total - 135.60 2,785.00 2,920.60 - - 135.60 135.60 Financial liabilities measured at amortised cost Non-current borrowings - - - - - - - - Current borrowings - - - - - - - - Non-current-Lease Liabilities - - 115.16 115.16 - - - - Current -Lease Liabilities - - 34.82 34.82 - - - - Non-current financial liabilities- - - - - - - - - Others Trade payables - - 719.94 719.94 - - - - Other financial liabilities - - 1,987.17 1,987.17 - - - - Total - - 2,857.09 2,857.09 - - - - Carrying Amount Fair Value# ( in Crores)` st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Fair Value Hierarchy of Financial Assets and Liabilities : Investment in equity accounted investee i.e. Guj Info Petro Limited (GIPL) carried at cost. # Fair value of financial assets and liabilities which are measured at amortised cost is not materially different from the carrying value (i.e. amortised cost). Accordingly, the fair value has not been disclosed separately. Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities included in level 3. B. MEASUREMENT OF FAIR VALUES i) Valuation techniques and significant unobservable inputs The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the significant unobservable inputs used. 176 st 31 March, 2024 FVTPL FVTOCI Amortised Total Level 1 - Level -2 Level 3 - Total Cost Quoted Significant Significant price in observable unobservable active inputs inputs markets Financial assets Investments - 135.04 - 135.04 - - 135.04 135.04 Financial assets measured at amortised cost Loans (Non-current) - - 2.22 2.22 - - - - Loans (Current) - - 2.99 2.99 - - - - Other financial assets - - 104.47 104.47 - - - - (Non-current) Other financial assets (Current) - - 12.83 12.83 - - - - Trade receivables - - 1,029.84 1,029.84 - - - - Cash and cash equivalents - - 915.98 915.98 - - - - Other bank balances - - 10.14 10.14 - - - - Total - 135.04 2,078.47 2,213.51 - - 135.04 135.04 Financial liabilities measured at amortised cost Non-current borrowings - - - - - - - - Current borrowings - - - - - - - - Non-current-Lease Liabilities - - 117.77 117.77 - - - - Current -Lease Liabilities - - 32.49 32.49 - - - - Non-current financial liabilities- - - - - - - - - Others Trade payables - - 700.21 700.21 - - - - Other financial liabilities - - 1,908.19 1,908.19 - - - - Total - - 2,758.66 2,758.66 - - - - Carrying Amount Fair Value# ( in Crores)` Note 45 FINANCIAL INSTRUMENTS (FAIR VALUE MEASUREMENTS) AND FINANCIAL RISK MANAGEMENT (Continued...) st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED st Notes to Standalone financial statements for the year ended 31 March, 2025 Valuation technique Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement Market comparison technique: The valuation model is based on three approaches : 1. Market approach : This approach uses information generated by market transactions of the Company being valued or the transactions of comparable companies. The following market- linked information may be used for determining valuation under this approach. - Quoted price of the company being valued, - Past transaction value of the company being valued, - Listed comparable companies' trading multiples like price to earning ratio, enterprise value to earning before interest, tax, depreciation and amortisation, enterprise value to sales etc. - Transactions multiples for investment / M & A transaction of comparable companies. The valuation arrived at based on the market approach reflects the current value of the Company perceived in the active market. However, as the valuation arrived at using market multiples is based on the past/current transaction or traded values of comparable companies/businesses, it may not reflect the possible changes in future trend of cash flows being generated by a business. 2. Income approach - The income approach reflects present value of future cash flows. For valuing a business, the discounted cash flow (DCF) methodology is used under this approach. This methodology works on the premise that the value of a business is measured in terms of future cash flow streams, discounted to the present time at an appropriate discount rate. This method is used to determine the present value of business on a going concern assumption. The DCF technique recognizes the time value of money. The value of the firm is arrived at by estimating the Free Cash Flow to Firm (FCFF) and discounting the same at the Weighted Average Cost of Capital (WACC). FCFF is estimated by forecasting free cash flows available to the firm (which are derived on the basis of the likely future earnings of the company). 3. Cost approach - The cost approach essentially estimates the cost of replacing the tangible assets of the business. The replacement cost takes into account the market value of various assets or the expenditure required to create the infrastructure exactly similar to that of a company being valued. Comparable unobservable entity has been taken as a base for the valuation of unquoted equity shares and its management's own assumptions for arriving at a fair value such as projected cash flows used to value a business etc. As stated, highest priority is given to unadjusted quoted price of listed entities and lowest priority to non- market linked inputs such as future cash flows used in income approach. The estimated fair value would increase (decrease) if: There is a change in pricing multiple owing to change in earnings of the entity. Considering the diverse asset and investment base of the Company with differing risk/ return profiles, a sum of the parts approach has been adopted for the valuation. Under this method, the value of each distinct business/ asset/ investment has been arrived at separately and total value estimate for the Company presented as the sum of all its business / investments /assets. ii) Transfers between Levels 1 and 2 There have been no transfers between Level 1 and Level 2 during the reporting periods. Note 45 FINANCIAL INSTRUMENTS (FAIR VALUE MEASUREMENTS) AND FINANCIAL RISK MANAGEMENT (continued.....) Financial instruments measured at fair value - FVTOCI in unquoted equity shares 177 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED st Notes to Standalone financial statements for the year ended 31 March, 2025 iii) Level 3 fair values st st Movements in the values of unquoted equity instruments for the period ended 31 March, 2025 and 31 March, 2024 is as below: ` ( in Crores) Particulars Amount st As at 1 April, 2023 30.38 Acquisitions/ (disposals) 100.00 Gains/ (losses) recognised in other comprehensive income 4.66 Gains/ (losses) recognised in statement of profit or loss - st Closing Balance as at 31 March, 2024 135.04 Acquisitions/ (disposals) - Gains/ (losses) recognised in other comprehensive income 0.56 Gains/ (losses) recognised in statement of profit or loss - st Closing Balance as at 31 March, 2025 135.60 st Equity Instrument:- Fair value of investment in GSPC equity shares as on 31 March 2025 is based on Market approach, Income st approach and cost approach and investment in GSPC LNG equity shares as on 31 March 2025 is based on Income approach. Transfer out of Level 3 st There were no movement in level 3 in either directions during the year ended 31 March 2025. Ind AS 101 allows an entity to designate certain investments in equity instruments as fair valued through the OCI on the basis of the facts and circumstances at the transition date to Ind AS. The Company has elected to apply this exemption for its investment in equity shares. Sensitivity analysis st Based on the valuation report for investments in unquoted shares, the sensitivity as on 31 March 2025 is provided below. ( in Crores)` Significant observable inputs OCI 10% Increase 10% Decrease Equity securities in unquoted investments measured through OCI (i) GSPC Impact of variation in fluctuation in the market prices of subsidiary companies /Gas marketing business of investee company st As on 31 March, 2025 3.08 (3.08)st As on 31 March, 2024 3.18 (3.18) (ii) GSPC LNG Impact of variation in movement in base valuation of the entity st As on 31 March, 2025 10.00 (10.00)st As on 31 March, 2024 10.00 (10.00) C. FINANCIAL RISK MANAGEMENT The Company has exposure to the following risks arising from financial instruments: Ÿ Credit risk ; Ÿ Liquidity risk ; and Ÿ Market risk i. Risk management framework The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company has a well-defined Risk Management framework for reviewing the major risks and has adopted a Business Risk Management Policy which also takes care of all the financial risks. Further, pursuant to the requirement of Regulation 21 of SEBI (Listing obligation and disclosure Requirements) Regulation, 2015, the company has constituted a Risk Management Committee inter-alia to monitor the Risk Management Plan of the Company. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. ii. Credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's trade receivables from customers and security deposits.The Company’s maximum exposure to credit risk is limited to the carrying amount of financial assets recognized at reporting date. 178 Note 45 FINANCIAL INSTRUMENTS (FAIR VALUE MEASUREMENTS) AND FINANCIAL RISK MANAGEMENT (continued.....) 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Details of the credit risk specific to the company have been enumerated below: (a) Trade and other receivables The Company's exposure to credit Risk is the exposure that Company has on account of goods sold or services rendered to a contractual counterparty or counterparties, whether with collateral or otherwise for which the contracted consideration is yet to be received. The Company's customer base are Industrial, Commercial-Non Commercial, Domestic and CNG. The Commercial and Marketing department has established a credit policy for each category of customer viz. industrial, domestic, commercial, non-commercial and CNG. The Company raises the invoice for quantities sold based on periodicity as per the agreement. Sales are subject to security deposit and/or bank guarantee clauses to ensure that in the event of non-payment the company's receivables are secured. In case of short/non receipt of security deposit/or bank guarantee, the Company is exposed to credit risk to that extent. For sales to domestic customers for household purposes like cooking, geyser application, etc., invoices are raised periodically. Security deposits along with connection deposits are taken for mitigation of potential credit risk arising in the event of non- payment of invoices. Company is exposed to credit risk beyond the value of deposits. CNG sales made through operators of the CNG stations owned by the Company and CNG Franchises outlet are exposed to credit risk as amounts so collected is deposited/transferred in company bank account on next working day. Bank Guarantee / Security Deposit is taken to mitigate the credit risk. In case of short/non receipt of security deposit/or bank guarantee, the Company is exposed to credit risk to that extent. For CNG sales made through Oil Marketing Companies (OMCs), the Company raises the invoice for quantities sold based on periodicity as per the agreement. The OMCs are well established companies, where no significant credit risk is anticipated. The Company provides for allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables. All trade receivables are reviewed and assessed for default on regular basis. Our historical experience of collecting receivables, supported by the level of default, is that credit risk is low. Credit risk is considered high when the counter party fails to make contractual payment within 180 days of when they fall due. The risk is determined by considering the business environment in which the company operates and other macro economic factors. Assets are written off when there are no reasonable expectation of recovery such as debtor declaring bankruptcy or failing to engage in a repayment plan with the Company. Where receivables have been written off the company continues to engage in enforcement activity to attempt to recover the receivables. where recoveries are made, these are recognised in the statement of profit and loss. The maximum exposure to credit risk for trade and other receivables by geographic region was as follows: ( in Crores)` Particulars Carrying amount st st 31 March, 2025 31 March, 2024 India 1,048.96 1,051.13 Other regions - - Total 1,048.96 1,051.13 Expected credit loss for Trade receivables under Simplified Approach ( in Crores)` Particulars Carrying amount st st 31 March, 2025 31 March, 2024 Neither past due nor impaired 859.70 870.97 Past due 1–180 days 141.80 94.79 Past due 181–365 days 11.29 15.41 Past due 366 to 1095 days 25.81 60.47 Greater than 1095 days 10.36 9.51 1,048.96 1,051.13 Less: Expected credit losses (Allowance for bad and doubtful) 24.99 21.29 Carrying amount of Trade Receivable (net of impairment) 1,023.97 1,029.84 In addition to the historical pattern of credit loss, the Company has considered the likelihood of increased credit risk and consequential defaults considering emerging economic situations. The assessment is based on management estimates considering the nature of receivables and the market conditions. 179 Note 45 FINANCIAL INSTRUMENTS (FAIR VALUE MEASUREMENTS) AND FINANCIAL RISK MANAGEMENT (continued.....) st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Movement in Allowance for bad and doubtful Trade receivable ( in Crores)` st st Particulars 31 March, 2025 31 March, 2024 Opening Allowance for bad and doubtful Trade receivable 21.29 19.74 Add: Provision during the year 4.93 1.55 Less: Write off during the year 1.23 - Closing Allowance for bad and doubtful Trade receivable 24.99 21.29 The impairment provisions above are based on management judgment / assumptions about risk of default and expected loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the company's past history as well as forward looking estimates at the end of each reporting period. (b) Security deposits (Given) Company has given security deposit to various government authorities (like Municipal corporation, Nagarpalika, Grampanchayat, Road & building division and Irrigation department -of Govt. of Gujarat etc. ) for the permission related to work of executing / laying pipeline network in their premises / jurisdiction. Being government authorities, the Company has no major credit risk. Movement in Allowance for bad and doubtful Security deposits-Project authority ( in Crores)` st st Particulars 31 March, 2025 31 March, 2024 Opening Allowance for bad and doubtful Security deposits 9.27 10.43 Provision during the year 0.72 1.42 Recovery/Adjustment during the year (2.66) (2.58) Write off during the year - - Closing Allowance for bad and doubtful Security deposits 7.33 9.27 The impairment provisions for financial assets - Security Deposit as disclosed above are based on management judgment / assumptions about risk of performance default . The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the company's past history as well as forward looking estimates at the end of each reporting period. (c) Other financial assets The company maintains its Cash and cash equivalents, bank balances and deposits with financially strong banks and financial institutions having good reputation, good past track record and high quality credit rating and also reviews their credit- worthiness on an on-going basis. Investments are made in credit worthy companies / group companies. Loan and advances to employees are considered good in nature and hence the Company does not have exposure to any credit risk. All other financial assets are of low credit risk and considered good. iii. Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. Short term liquidity requirements comprises mainly of trade payables arising in the normal course of business and is managed primarily through internal accruals and/or short term borrowings. Long term liquidity requirement is assessed by the management on periodical basis and managed through internal accruals as well as from undrawn borrowing facilities. Note 45 FINANCIAL INSTRUMENTS (FAIR VALUE MEASUREMENTS) AND FINANCIAL RISK MANAGEMENT (continued.....) 180 st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Exposure to liquidity risk The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements. ( in Crores)` st 31 March, 2025 Total Less than 1-2 years 2-5 years More than 12 months 5 years Non-derivative financial liabilities Non-current borrowings - - - - - - Non-current-Lease Liabilities 115.16 174.31 - 34.75 61.93 77.63 Current Borrowings - - - - - - Lease Liabilities 34.82 43.14 43.14 - - - Trade and other payables 719.94 719.94 719.94 - - - Other current financial liabilities 1,987.17 1,987.17 1,987.17 - - - Total 2,857.09 2,924.56 2,750.25 34.75 61.93 77.63 Undiscounted Contractual cash flows - Other current financial liabilities include customer deposits which are considered repayable on demand. - The gross inflows/(outflows) disclosed in the above table represent the contractual undiscounted cash flows relating to non-derivative financial liabilities held for risk management purposes and which are not usually closed out before contractual maturity. iv. Market risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Financial instruments affected by market risk include loans and borrowings, deposits and FVTOCI investments. a) Currency risk The functional currency of the Company is Indian Rupee (`). The Company's transactions are majorly denominated in INR and the quantum of the foreign currency transactions being immaterial, the company is not exposed to currency risk on account of payables and receivables in foreign currency. The company does not have any exports. Import amount to 0.00 % (Previous Year 0.06 %) of total consumption of stores and spares, this is not perceived to be a major risk. ( in Crores)` st 31 March, 2024 Total Less than 1-2 years 2-5 years More than 12 months 5 years Non-derivative financial liabilities Non-current borrowings - - - - - - Non-current-Lease Liabilities 117.77 177.68 - 36.70 60.72 80.26 Current Borrowings - - - - - - Lease Liabilities 32.49 40.56 40.56 - - - Trade and other payables 700.21 700.21 700.21 - - - Other current financial liabilities 1,908.19 1,908.19 1,908.19 - - - Total 2,758.66 2,826.64 2,648.96 36.70 60.72 80.26 Undiscounted Contractual cash flows Note 45 FINANCIAL INSTRUMENTS (FAIR VALUE MEASUREMENTS) AND FINANCIAL RISK MANAGEMENT (continued.....) Carrying amount Carrying amount 181 st Notes to Standalone financial statements for the year ended 31 March, 2025 ( in Crores)` st st Particulars 31 March, 2025 31 March, 2024 Floating rate Expiring within one year (working capital, bank overdraft and other facilities) 1,212.51 1,462.92 Expiring beyond one year (working capital, bank overdraft and other facilities) - - Total 1,212.51 1,462.92 Financing arrangement The Company had access to the following undrawn borrowing facilities at the end of the reporting period: 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Sensitivity analysis Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of change in interest rates. The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss, and the Company does not have any designate derivatives (interest rate swaps) . Therefore, a change in interest rates at the reporting date would not affect profit or loss. c) Commodity Price Risk Risk arising on account of fluctuations in price of natural gas is mitigated by ability to pass on the fluctuations in prices to customers over period of time. The company monitors movements in the prices closely on regular basis. d) Equity Price Risk The Company do not have any investment in quoted equity shares hence not exposed to equity price risk. Note 46 CAPITAL MANAGEMENT Total equity as shown in the balance sheet includes equity share capital, general reserves and retained earnings. st There are no interest bearing loans and borrowings by the Company as on 31 March, 2025. The Company's objectives when managing capital is to Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders. The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure. The management monitors the return on capital as well as the level of dividends to shareholders. The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘adjusted equity’. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings, less cash and bank balances. Adjusted equity comprises all components of equity. The Company’s adjusted net debt to equity ratio is as follows: ( in Crores)` st st Particulars As at 31 March, 2025 As at 31 March, 2024 Long term borrowings* - - Total equity 8,453.65 7,689.26 Debt equity ratio - - Long term borrowings* - - Short term borrowings - - Interest bearing borrowings - - Less : Cash and bank balances 359.40 926.12 Adjusted net debt - - Adjusted net debt to adjusted equity ratio - - 182 st st *There are no interest bearing loans and borrowings by the Company as on 31 March, 2025 and 31 March, 2024. Note 45 FINANCIAL INSTRUMENTS (FAIR VALUE MEASUREMENTS) AND FINANCIAL RISK MANAGEMENT (continued.....) st Notes to Standalone financial statements for the year ended 31 March, 2025 b) Interest rate risk Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates. During the period, the Company does not have any long term borrowings at fixed rate and has not entered into interest rate swaps for its exposure to long term borrowings at floating rate. ( in Crores)` st st Term Loan 31 March, 2025 31 March, 2024 Non-current - Borrowings - - Current portion of Long term borrowings - - Total - - 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Note 47 DISCLOSURE OF EMPLOYEE BENEFITS The Company has implemented Ind AS-19 on “Employee Benefits”. (a) Contributions to Defined Contribution Plan, recognised as expense for the year are as under: (` in Crores) Sr. Particulars For the year ended For the year endedst st No. 31 March, 2025 31 March, 2024 (i) Provident Fund 10.35 10.71 (ii) National Pension Scheme 4.94 4.94 (b) Gratuity and Leave Encashment - Defined Benefit Plans (payable in future) Provision has been made for gratuity and leave encashment (earned leave) as per actuarial valuation. The principal assumptions used in actuarial valuation and necessary disclosures are as below: *The Company expects that total outstanding gratuity liability payable as on 31.03.2025 will be paid to the gratuity trust within next 12 months.183 ( in Crores)` Gratuity Leave Gratuity Leave Encashment Encashment A. Assumptions Discount rate 6.80% 6.80% 7.20% 7.20% Rate of return on plan assets 6.80% N.A. 7.20% N.A. Salary Escalation 9.25% 9.25% 10.00% 10.00% Withdrawal rate B. Change in Defined Benefit Obligations Liability at the beginning of the year 87.28 53.40 84.48 55.83 Transfer in/(out) obligation (0.13) - Current Service Cost 5.82 3.27 6.08 4.24 Interest Cost 6.13 3.78 6.19 4.12 Benefits Paid (5.59) (6.76) (3.96) (6.54) Actuarial (Gain) / loss due to experience adjustment (4.14) (4.27) (8.24) (6.22) Actuarial (Gain) / Loss due to change in financial estimate (3.08) (1.97) 2.73 1.98 Total Liability at the end of the year 86.29 47.46 87.28 53.40 C. Change in Fair Value of plan Assets Opening fair Value of plan assets 84.80 - 81.35 - Transfer in/(out) plan assets (0.13) - - - Expected return on plan assets 6.16 - 6.18 - Return on plan assets excluding amounts included in interest income 0.36 - 1.21 - Contributions by employer - - 0.01 - Benefits Paid (5.59) - (3.96) - Closing fair Value of plan assets 85.60 - 84.80 - D. Expenses Recognised in the Statement of Profit & Loss Current Service Cost 5.82 3.27 6.08 4.24 Interest Cost 6.13 3.78 6.19 4.12 Expected return on plan assets (6.16) - (6.18) - Actuarial (Gain) / Loss (7.59) (6.24) (6.72) (4.24) Expenses recognised in Statement of Profit & Loss 5.79 0.81 6.08 4.12 Expenses recognised in other comprehensive income (7.59) (6.72) E. Balance Sheet Reconciliation Opening Net Liability 2.48 53.40 3.13 55.83 Employee Benefit Expense 5.79 0.81 6.08 4.12 Amounts recognized in Other Comprehensive Income (7.59) - (6.72) - Contributions by employer - - (0.01) - Benefits Paid - (6.76) - (6.54) Closing Liability 0.69 47.46 2.48 53.40 F. Current/Non-Current Liability : Current* 0.69 1.55 2.48 1.89 Non-Current - 45.91 - 51.51 st 31 March, 2025 st 31 March, 2024Sr. Particulars No. st Notes to Standalone financial statements for the year ended 31 March, 2025 3% at younger age reducing to 1% at old age 3% at younger age reducing to 1% at old age 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED (c ) Amounts recognised in current year and previous four years ( in Crores)` st st st st st Sr. Particulars As at 31 As at 31 As at 31 As at 31 As at 31 March, 2025 March, 2024 March, 2023 March, 2022 March, 2021 A. Gratuity Present value of Defined Benefit Obligation 86.29 87.28 84.48 83.01 76.37 Fair value of Plan Assets 85.60 84.80 81.35 82.85 75.85 (Surplus) / Deficit in the plan 0.69 2.48 3.13 0.16 0.52 Actuarial (Gain) / Loss on Plan Obligation (7.22) (5.51) (5.15) (1.05) 1.18 Actuarial Gain / (Loss) on Plan Assets 0.36 1.21 (2.08) (0.29) 1.98 B. Earned Leave (Leave encashment) Present value of Defined Benefit Obligation 47.46 53.40 55.83 55.40 52.05 Actuarial (Gain) / Loss on Plan Obligation (6.24) (4.24) (3.18) (0.91) 2.93 C. Long Service Award Present value of Defined Benefit Obligation 1.34 1.14 1.05 1.00 0.97 Actuarial (Gain) / Loss on Plan Obligation - - - - - (d) Sensitivity analysis Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below. Gratuity Leave Encashment Gratuity Leave Encashment Discount rate (0.5% movement) 81.90 44.70 91.06 50.48 Salary growth rate (0.5% movement) 90.91 50.40 81.99 44.74 Withdrawal rate (W.R.) varied by 10 % 86.06 47.29 86.52 47.64 st As at 31 March, 2025 Particulars Increase Decrease ( in Crores)` Gratuity Leave Encashment Gratuity Leave Encashment Discount rate (0.5% movement) 82.80 50.15 92.16 56.96 Salary growth rate (0.5% movement) 91.99 56.85 82.91 50.22 Withdrawal rate (W.R.) varied by 10 % 86.99 53.16 87.56 53.65 st As at 31 March, 2024 Particulars Increase Decrease ( in Crores)` (e) Gratuity Benefits Plan: The benefit is governed by the Payment of Gratuity Act, 1972 (as amended). The Key features are as under: Features of the defined benefit plan Remarks Benefit offered 15 / 26 × Salary × Duration of Service Salary definition Basic Salary including Dearness Allowance (if any) Benefit ceiling No ceiling Vesting conditions 5 years of continuous service (Not applicable in case of death / disability) Benefit eligibility Upon Death or Resignation / Withdrawal or Retirement Retirement age 60 years (i) Entity’s responsibilities for the governance of the plan : Risk to the Plan Following are the risk to which the plan exposes the entity : : A Actuarial Risk: It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons: - Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected. - Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate. - Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.184 Note 47 DISCLOSURE OF EMPLOYEE BENEFITS (continued.....) st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 185 B Investment Risk: For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period. C Liquidity Risk: Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign / retire from the company there can be strain on the cash flows. D Market Risk: Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate / government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date. E Legislative Risk: Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation / regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective. (ii) The company has participated in Group Gratuity Scheme Plan with Life Insurance Corporation of India (LIC), HDFC Life Insurance Co. Ltd, SBI Life Insurance Co. Ltd. Aditya Birla Sun Life Insurance Co. Ltd. and Bajaj Allianz Life Insurance Company Ltd (collectively referred as Insurance Co.) through Gratuity Trust to meet its gratuity liability. The present value of the plan assets represents the balance available at the end of the year. The total value of plan assets is as certified by the various life insurance co. (a) Composition of the plan assets: - st st st Particulars As at 31 March, 2025 As at 31 March, 2024 As at31 March, 2023 Bank balance 0.00% 0.00% 0.00% Policy of insurance 100.00% 100.00% 100.00% Others 0.00% 0.00% 0.00% (b) The trustees of the plan have outsourced the investment management of the fund to an insurance company. The insurance company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the type of investments that can be held by the fund, it may not be possible to explicitly follow an asset-liability matching strategy to manage risk actively in a conventional fund. st (c) Expected benefit payments for gratuity as on 31 March, 2025 (Undiscounted). (f) Expected benefit payments as on 31st March, 2025 for Privilege Leave encashment benefits (Undiscounted). Particulars 1-3 years 4-5 years 6 years & Above Cash flow ( ` in crores) 16.71 16.63 170.59 Distribution ( in %) 8.20% 8.10% 83.70% Particulars 1-3 years 4-5 years 6 years & Above Cash flow (` in crores) 7.42 6.89 111.49 Distribution ( in %) 5.90% 5.40% 88.70% (g) Other Notes: (i) The expected rate of return on Plan Assets is determined considering several applicable factors, mainly the composition of Plan Assets held, assessed risks, historical results of return on Plan Assets and the Company’s policy for the Plan Assets management. (ii) The actuarial valuation takes into account the estimates of future salary increases, inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market. The management has relied on the overall actuarial valuation conducted by the actuary. (iii) The company has provided long service award benefits to its employees who completed 15/20/25 Years of employment with company. Long Service Awards are recognised as a liability based on actuarial valuation of the defined benefit obligation as at the balance sheet date. Accordingly, expenses of ` 0.25 crores (previous year ` 0.16 crores) has been charged to the Statement of Profit and Loss towards Long service awards. The Company has recognised Current Liability of ` 0.14 crores (Previous year ` 0.07 crores) and Non-current Liability of ` 1.20 crores (Previous year ` 1.07 crores) as at st 31 March, 2025 and Discount rate considered for current year is 6.80 % (previous year 7.20 %). Note 47 DISCLOSURE OF EMPLOYEE BENEFITS (continued.....) st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 186 (iv) The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come in to effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period when the Code becomes effective. (v) All assets and liabilities of ESOP Trust had been liquidated during previous year and ESOP trust has been wound up in September 2023. Note 48 RELATED PARTY TRANSACTIONS As per the Indian Accounting Standard-24 on “Related Party Disclosures”, list of parent & subsidiary of the Company are as follows. (a) Parent Entity Gujarat State Petroleum Corporation Limited (GSPC) - Ultimate Holding Company Gujarat State Petronet Limited (GSPL) - Holding Company (b) Subsidiary / Associate / Enterprise Controlled by the Company Guj Info Petro Limited- GIPL - Associate Gujarat Gas Limited Employees Group Gratuity Scheme - Enterprise controlled by the Company Gujarat Gas Limited Employee Stock Option Welfare Trust - Enterprise controlled by the Company (dissolved on th 30 September, 2023) st Related Party Transactions for the year ended 31 March, 2025 (` in Crores) Sr. Name of Related Party Relationship Nature of Transactions & Balances For the year For the yearst st No. ended 31 ended 31 March, 2025 March, 2024 1 Gujarat State Ultimate Holding Purchase of Natural Gas 10,996.65 10,784.91 Petroleum Corporation Company Rent Expense 0.00 0.00 Limited - GSPC Brokerage Services for NG Trading 1.83 1.18 Reimbursement of Expenses(Net) 2.02 0.71 Recharge of Salary - Expense 1.10 0.87 Balance at period end Amount Receivable/(Payable) (235.48) (290.47) Investment at Period end 35.20 35.04 Bank Guarantee by GGL to GSPC 852.03 715.04 Letter of Credit - by GGL to GSPC 199.09 507.01 2 Gujarat State Holding Company Gas Transmission Expense 394.73 474.28 Petronet Limited - GSPL Transportation settlement charges - 1.93 O&M Charges - Expense 0.92 0.35 Reimbursement of Expenses 0.05 0.01 Recharge of Salary - Expenses 0.27 0.04 Dividend Paid 211.05 247.96 Rent Expense 4.08 3.99 Right of Way Expense - Expenses 0.19 0.22 Gas connectivity (Hooking up) Expenses 0.49 - O&M Charges - Income 0.04 0.04 Rent - Income 0.03 0.03 Reimbursement of Expenses - Income 0.31 0.43 Recharge of Salary - Income 0.89 0.87 Income from Material sale 1.95 - Deposit Given - Paid / (Refund) (0.26) (0.11) Deposit Given - Paid / (Refund) [For Connectivity] 21.63 13.67 Balance at period end Amount Receivable/(Payable) (15.09) (21.37) Deposits Asset / (Liability) - Net [Other than Connectivity] 2.09 2.35 Deposit (For Connectivity) 86.63 64.99 Bank Guarantee - by GGL to GSPL 29.34 28.82 Note 47 DISCLOSURE OF EMPLOYEE BENEFITS (continued.....) st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 187 Sr. Name of Related Party Relationship Nature of Transactions & Balances For the year For the yearst st No. ended 31 ended 31 March, 2025 March, 2024 3 Sabarmati Gas Limited Associate of Gas Transportation Expense 0.83 0.80 - SGL Holding Company Compression Charges 4.93 3.67 Gas Transportation Charges - Income 0.48 0.44 Reimbursement of Expenses - Income 0.10 0.42 Balance at period end Amount Receivable/(Payable) (0.13) (0.14) Bank Guarantee - by GGL to SGL 0.20 0.20 4 Guj Info Petro Limited- Associate Web Development, Consultancy & Bandwidth Charges 0.00 0.02 GIPL Software Maintenance Expenses 1.13 0.71 Reimbursement of Expenses - Income 0.10 0.10 Dividend Received 1.68 1.64 Balance at period end Amount Receivable/(Payable) (0.09) (0.05) Investment at Period end 0.03 0.03 5 Gujarat State Energy Subsidiary of Dividend Paid 0.75 0.89 Generation Limited - Ultimate Holding Reimbursement of Expense Received 0.05 0.09 GSEG Company Balance at period end (w.e.f 18.10.2024) Amount Receivable/(Payable) - 0.08 Associate of Deposits Asset / (Liability) - Net (0.10) (0.10) Ultimate Holding Company (upto 17.10.2024) 6 GSPL India Gasnet Joint Venture of Rent Expenses 0.74 0.74 Limited - GIGL Holding Company Gas Transportation Expense 2.98 6.28 Transportation Settlement charges - 5.49 O&M Charges 1.15 0.89 Reimbursement of Expenses( Net) 0.00 0.00 Right of Way Expense - Exps - 0.06 Interest Paid - 0.00 Income from Material sale 0.09 - Deposit Given - Paid / (Refund) - 0.02 Balance at period end Amount Receivable/(Payable) (0.05) (0.79) Deposits Asset / (Liability) - Net [Other than Connectivity] 0.18 0.18 Deposit (For Connectivity) 50.15 50.15 Bank Guarantee - by GGL to GIGL 0.60 0.60 7 GSPL India Transco Joint Venture of Transportation Settlement charges 0.51 1.20 Limited - GITL Holding Company Reimbursement of Exps.-Income - 0.00 Balance at period end Amount Receivable/(Payable) 0.00 - 8 Social Welfare Trust Subsidiary of CSR Expense - 6.41 Ultimate Holding Company 9 GSPC Pipavav Power Subsidiary of Reimbursement of Expenses - Income 0.05 0.08 Company Ltd. Ultimate Holding Balance at the period end Company Amount Receivable/(Payable) 0.05 - 10 Gujarat Gas Limited Enterprise Amount Received from Trust - 0.00 Employee Stock controlled by the Option Welfare Trust company th (dissolved on 30 September, 2023) 11 Shri. Milind Torawane, IAS Key Managerial Sitting Fees- (Deposited in Govt. Treasury Account) Nil - - Managing Director Person Out of Pocket Expenses - Nil th (W.e.f 13 April, 2023) st Note 48 Related Party Transactions for the year ended 31 March, 2025 (Continued .....) (` in Crores) st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 188 st Note 48 Related Party Transactions for the year ended 31 March, 2025 (Continued .....) st Notes to Standalone financial statements for the year ended 31 March, 2025 Notes 1 The company deals on regular basis with entities (apart from Group Companies) directly or indirectly controlled by the State Government of Gujarat. Such entities are collectively referred as “Government related entities” and includes companies in which Government of Gujarat has majority shareholding, government authorities, agencies, affiliations and other organizations. Apart from transactions with its group companies, the Company has transactions with government related entities, including but not limited to the followings: - Sale and Purchase of Natural Gas - Investment, renewal & redemption of funds/deposits - Interest income from investments in deposits - Payment of Dividend - Rendering and Receiving Services - Payment of Rent - Use of Public Utilities Below are the details of significant transactions carried with Government Related Entities. In order to determine the level of significance of the transaction with Government Related Entities, threshold limits have been considered as prescribed in the definition of "Material Related Party Transaction" of GGL's "Policy on Materiality of Related Party Transactions and dealing with Related Party Transactions". (` in Crores) Name of Relationship Nature of Transactions For the Year ended For the Year ended st st Related Party & Balances 31 March, 2025 31 March, 2024 Gujarat State Government Interest received - Income 93.02 40.15 Financial Services Related Entity (including accrued Interest) Limited - GSFS Deposit - Placed/ Renewed 13,431.77 12,790.01 Deposit - Withdrawn / Redeemed 12,728.73 12,619.39 Balance at the period end Deposits Asset 1,518.93 795.73 (including accrued Interest) 2 The company sells natural gas to domestic, commercial, industrial and CNG consumers. The above related party transaction do not include the transactions of Gas sales to the related parties in ordinary course of business, as all such transactions are done at arm’s length basis. As per Para 11(c)(iii) of Ind AS-24 “Related Party Disclosures”, normal dealings of Company with related parties by virtue of public utilities are excluded from the purview of Related Party Disclosures. 3 In compliance to the provisions of Section 2(51) of Companies Act-2013, the following are the details of remuneration paid/payable to KMP. (` in Crores) Sr. Particulars For the year ended For the year ended st st No. 31 March, 2025 31 March, 2024 th 1. Shri. Nitesh Bhandari – Chief Financial Officer (upto 08 February, 2024) - 1.30 [Refer Note (I)] Short Term Benefits – NA (P.Y. ` 1.14 crores) Post-Employment Benefits – NA (P.Y. ` 0.16 crores) 2. Shri. Sandeep Dave – Company Secretary [Refer Note (i) & (ii)] 0.77 0.71 Short Term Benefits – ` 0.66 crores (Previous year ` 0.61 crores) Post-Employment Benefits – ` 0.11 crores (Previous year ` 0.10 crores ) Notes: (i) Remuneration does not include vehicle insurance, mediclaim insurance, life insurance, etc which are extended as per HR Policy. (ii) Remuneration paid to Shri. Sandeep Dave (Company Secretary) is based on the amount recharged by Gujarat State Petroleum Corporation Limited (GSPC). The remuneration reported do not included arrears paid of 0.01 crores for years prior to ` FY 2024-25. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 189 st Note 48 Related Party Transactions for the year ended 31 March, 2025 (Continued .....) st Notes to Standalone financial statements for the year ended 31 March, 2025 4 Details of Sitting Fees & Out of Pocket Expenses (in total) paid to Directors other than Managing Director Sr. Particulars For the year ended For the year ended st st No. 31 March, 2025 31 March, 2024 1. Shri Pankaj Joshi,IAS # ( w.e.f 07.02.2025) 0.00 - 2. Shri S. J. Haider, IAS # ( w.e.f 13.08.2024) 0.01 - 3. Dr. T. Natarajan, IAS # ( w.e.f 11.09.2024) 0.02 - 4. Shri Balwant Singh, IAS (Retd.) 0.04 0.04 5. Prof. Yogesh Singh 0.02 0.02 6. Shri Bhadresh Mehta 0.04 0.04 7. Dr. Rekha Jain 0.03 0.03 8. Shri Raj Kumar, IAS # (up to 31.01.2025) 0.01 0.01 9. Shri. J.P.Gupta, IAS # (up to 06.08.2024) 0.01 0.01 10. Smt. Mamta Verma,IAS # (up to 02.08.2024) 0.00 0.01 11. Smt. Mona Khandhar,IAS # (up to 09.08.2023) - 0.01 (` in Crores) # Sitting fees payable to directors are deposited in Government Treasury Account 5 All transactions with related parties were carried out in the ordinary course of business and at arms length. 6 All transactions amount disclosed above are inclusive of tax. 7 Bank Guarantees, Letter of Credits provided to related parties are for routine business activity such as Gas procurement, Transmission, Compression service etc. 8 Deposits given/ received (other than investment made in GSFS) to related parties are for routine business activity. 9 Figures INR 0.00 denotes amount less than INR 50,000/-. (` in Crores) Particulars For the year ended For the year ended st st 31 March, 2025 31 March, 2024 Revenue as per contracted price 17,184.97 16,292.97 Adjustments : Provision for revenue contract price - - Revenue from contract with customers 17,184.97 16,292.97 Note 49 RECEIVABLES, CONTRACT ASSETS AND CONTRACT LIABILITIES (WITH REFERENCE TO IND AS 115 - REVENUE FROM CONTRACTS WITH CUSTOMERS) Revenue recognised in the statement of profit and loss : Revenue from contracts with customers (refer note 31): Sale of Natural gas is the main activity of city gas distribution business and other operating income is incidental to sale of natural gas. Company sells and distributes natural gas in India. Sale of natural gas includes excise duty but excludes VAT and GST collected from the customers on behalf of the Government. All the revenue mentioned above are earned by transfer of goods or services at a point of time. Reconciliation of the amount of revenue recognised in the statement of Profit and Loss with the contracted price : 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 190 st Notes to Standalone financial statements for the year ended 31 March, 2025 st st Sr. Particulars As at 31 As at 31 No. March, 2025 March, 2024 (i) Receivables Trade receivables 873.95 890.68 Unbilled Revenue 150.02 139.16 Total Trade receivables 1,023.97 1,029.84 (ii) Current Financial Liabilities - Others (Contract liabilities) Security Deposits from customers (Including accrued interest) 1,574.97 1,469.64 Security Deposit from customers towards MGO 131.46 130.74 Total Current Financial Liabilities - Others (Contract Liabilities) 1,706.43 1,600.38 (iii) Contract liabilities (Current Liabilities - Others) Advance from customers 65.97 64.96 Total contract liabilities (Current Liabilities - Others) 65.97 64.96 (iv) Deferred Revenue* Non-Current 75.99 73.05 Current 12.10 11.84 Total Deferred Revenue 88.09 84.89 (v) Income recognised during the year out of opening balance of deferred revenue 11.64 11.83 The following table provides information about receivables, contract assets and contract liabilities from contract with customers: (` in Crores) * Deferred Revenue mainly includes connection, service and fitting income, yearly fees income etc. Contract asset is the right to consideration in exchange for goods or services transferred to the customer. Contract liability is the entity’s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer in advance. Contract assets (unbilled receivables) are transferred to receivables when the rights become unconditional and contract liabilities are recognised as and when the performance obligation is satisfied. Performance obligations -Connection, Service and Fitting Income Connection charges from customers deferred over the period when the performance obligation is satisfied: Industrial Customers: The performance obligations as per the contractual arrangement with the customer is to deliver gas over the tenure of the contract. Consequently, the connection charges is to be deferred over the contract period. Domestic Customer: The connection charges is to be deferred over the period of delivery of gas. It is reasonably expected by the Company that the gas is procured by the customer and supplied by the Company on a perpetual basis. Consequently the connection charges are to be deferred over the useful life of the connection facility (i.e. 18 years). Note 50 LEASES (Ind AS-116) st The Company has adopted Ind AS-116 ‘Leases', effective from 1 April, 2019, using modified retrospective approach. Note 50.1 The Company as a lessee The Company has taken various assets on lease primarily consist of leases for land, buildings, vehicles, Plant & machinery, Way leave charges and Hooking up charges. Under Ind AS-116, the Company recognises right-of-use assets and lease liabilities. The weighted average incremental borrowing rate of 8.59% p.a. has been applied to lease liabilities recognised in the balance sheet at the date of initial application. The likely weighted average incremental borrowing rate @ 7.75%-8.00 % p.a. has been applied to lease liabilities recognised in the balance sheet during the year. 50.1.1 The Company used a number of practical expedients summarised here below: 1) Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on the date of initial application. 2) Applied the exemption not to recognize right-of-use assets and liabilities for leases of low value assets. Note 49 RECEIVABLES, CONTRACT ASSETS AND CONTRACT LIABILITIES (Continued .....) 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 191 50.1.2 Nature of the lease transaction: Land Leases The Company has taken several plots of land on lease for setting up CNG, City Gas Station, CPRS/DPRS/DCS station and for site office purpose. The lease term mentioned in the agreements ranges from 11 months to 99 years. Lease agreements are renewable on mutually agreed terms and do not contain any non-cancellable period. In certain contacts, the Company is restricted from assigning and subletting the leased assets. Building Leases The Company has taken various office/warehouse buildings on lease with monthly and annual payment terms. The lease term mentioned in the agreements ranges from 11 months to 9 years. Most of the agreements are renewable on mutually agreed terms, some of them are having non - cancellable period whereas few agreements are silent on renewal. In certain contacts, the Company is restricted from assigning and subletting the leased assets. Other Leases The Company has also taken various commercial vehicles, CNG Cascade, booster compressor, way leave, hooking up facility (connectivity) and IT equipment etc. on lease. The lease term mentioned in the agreements ranges from 6 months to 25 years. Some portion of the lease rentals is based on usage of the equipment considered as variable lease payment. Lease rentals include lease and non lease component viz. manpower, fuel cost, repair and maintenance etc. and only hiring portion is considered for ROU accounting. 50.1.3 The following is the carrying amounts of Company's Right of use assets and the movement in lease liabilities during the year st ended 31 March, 2025. st Notes to Standalone financial statements for the year ended 31 March, 2025 (` in Crores) Gross Carrying Value Opening balance 339.56 316.75 Addition during the year 178.20 28.79 Other adjustment/ Reassessment (0.16) (0.98) Deduction during the year 4.63 5.00 Closing Balance (A) 512.97 339.56 Accumulated amortization Opening balance 87.32 58.36 Addition during the year 45.91 33.41 Other adjustment/ Reassessment - - Deduction during the year 4.63 4.45 Closing Balance (B) 128.60 87.32 Net Block (A-B) 384.37 252.24 * Refer note 5.3 A Lease Assets* FY 2024-25 FY 2023-24 Particulars Note 50 LEASES (Continued .....) Opening balance 150.26 152.32 Addition during the year 54.63 28.79 Adjustment on account of reassessment /modification/termination (0.16) (1.55) Add: Interest Expenses 10.15 10.47 Less: Payments (64.90) (39.77) Closing Balance 149.98 150.26 Current 34.82 32.49 Non-current 115.16 117.77 * Refer note 21 B Movement in Lease liability with Current/Non-current break up:- (` in Crores) Lease liabilities* FY 2024-25 FY 2023-24 Particulars 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 192 Note 50 LEASES (Continued .....) st Notes to Standalone financial statements for the year ended 31 March, 2025 st 50.1.5 The total Cash outflow for ROU assets is ` 54.75 crores ( Previous year ` 29.30 crores) for the year ended 31 March, 2025 (excluding interest). 50.1.6 Contractual maturity analysis of undiscounted lease liabilities is given below: Maturity Analysis of lease liabilities (undiscounted): ( in Crores)` st st Particulars As at 31 March, 2025 As at 31 March, 2024 Less than one year 43.14 40.56 One to two years 34.75 36.70 two to five years 61.93 60.72 More than five years 77.63 80.26 Total 217.45 218.24 1 Promoters - - - - 2 Directors - - - - 3 KMPs - - - - 4 Related Parties - - - - Total - - - - 50.2 The Company as a lessor The Company accounted for its leases in accordance with Ind AS-116. Note 51 ADDITIONAL REGULATORY INFORMATION DISCLOSURES Note 51.1 Loans and advances granted to specified person: (A) Loans / Advance in the nature of loan - Repayable on Demand: ( in Crores) ` Sr. No Type of Borrowers st As on 31 March, 2025 st As on 31 March, 2024 % of Total Loan and Advance in the Nature of Loan Amount Outstanding - Gross Carrying Amount Amount Outstanding - Gross Carrying Amount % of Total Loan and Advance in the Nature of Loan 50.1.4 Amounts recognized in profit or loss (` in Crores) Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Lease charges-Others* (Refer Note 38) 34.28 39.73 Interest expenses (Refer Note 36) 10.15 10.47 Depreciation charge for right-of-use assets (Refer Note 37) 45.91 33.41 *Leases charges-Others includes rental charges of all assets that have lease period of 12 months or less, remaining lease period of 12 months or less as on transition date, rental charges of low value assets, variable lease payments and component of taxes of ROU lease charges. 1 Promoters - - - - 2 Directors - - - - 3 KMPs - - - - 4 Related Parties - - - - Total - - - - (B) Loans / Advance in the nature of loan - without specifying any terms or period of repayment: ( in Crores)` Sr. No Type of Borrowers st As on 31 March, 2025 st As on 31 March, 2024 % of Total Loan and Advance in the Nature of Loan Amount Outstanding - Gross Carrying Amount Amount Outstanding - Gross Carrying Amount % of Total Loan and Advance in the Nature of Loan 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 193 Note 51 ADDITIONAL REGULATORY INFORMATION DISCLOSURES (Continued .....) st Notes to Standalone financial statements for the year ended 31 March, 2025 Figures INR 0.00 denotes amount less than INR 50,000/-. Note 51.3 Willful Defaulter The company is not declared as wilful defaulter by any bank or financial institution or other lender. Note 51.4 Utilisation of borrowed funds The company has used the borrowings from banks for the specific purpose for which it was taken. The company has not taken any borrowings from financial institution. Note 51.5 Registration of charges or satisfaction with Registrar of Companies (ROC) The company has registered charge and satisfaction with ROC within statutory time period. Note 51.6 Details of Benami Property held The company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder, hence no proceedings initiated or pending against the company under the said Act and Rules. Note 51.7 Utilisation of borrowed funds, share premium and other funds The Company has not given any advance or loan or invested funds from borrowed funds or share premium or any other sources with the understanding that intermediary would directly or indirectly lend or invest in other person or entities including foreign entities identified in any manner whatsoever by or on behalf of the company as ultimate beneficiaries or provide any guarantee or security or the like to on behalf of ultimate beneficiaries. The Company has not received any fund from any person or entities including foreign entity (funding parties) with the understanding that the Company would directly or indirectly lend or invest in other person or entity identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiary) or provided any guarantee or security or the like on behalf of the ultimate beneficiary. Note 51.8 Compliance with number of layers of companies As the company is a Government Company, in terms of section 2(45) of the Companies Act, compliance with number of layers of the companies as per section 2(87) of the Companies Act read with Companies (Restriction on number of Layers) Rules 2017, is not applicable. Note 52 ADDITIONAL DISCLOSURES Note 52.1 Details of Crypto Currency or Virtual Currency The company has not traded or invested in Crypto currency or Virtual Currency during the period. Note 52.2 Undisclosed Income There is no transaction, which has not been recorded in books of accounts, that has been surrendered or disclosed as income during the period in tax assessments under the Income Tax Act, 1961. st As on 31 March, 2025: 1 Investment in securities NA Nil NA 2 Receivables NA Nil NA 3 Payables NA Nil NA 4 Shares held by struck off Company Equity share capital 0.00 Shareholder 5 Other outstanding balances (to be specified) NA Nil NA st As on 31 March, 2024: 1 Investment in securities NA Nil NA 2 Receivables NA Nil NA 3 Payables NA Nil NA 4 Shares held by struck off Company NA Nil NA 5 Other outstanding balances (to be specified) NA Nil NA Note 51.2 Relationship with struck off companies: Based on the information available with the company, the required disclosures are given below: Sr. No Name of struck of companies Relationship with struck off company if any Balance Outstanding Nature of transaction 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 194 - - Decrease in ratio as increase in fair value of unquoted investments in current year is lower than previous year Due to Increase in working capital while annual turnover is at par with last year. - - - Sr. No 1 2 3 Particulars Current Ratio (times) Debt-Equity Ratio (times) Debt Service Coverage Ratio (times) Reason for significant variance(25% or more) Mainly due to increase in deposits with financial institutions in current financial year - - - Variance % FY 2023-24 FY 2024-25 2.10 1.64 28% - - - - - - 6.67% 7.01% -5% 14% 16% -9% 18% 20% -8% 2% 8% -78% 694.85 681.82 2% 15.01 14.40 4% 31.15 26.33 18% 11.05 18.78 -41% Denominator Current Liabilities (Excl. Customer deposits) Shareholder’s Equity Interest on borrowings + Principal Repayments (routine instalments) Numerator Current Assets Debt consists of borrowings Earning for Debt Service = Net Profit after taxes + Non-cash expenses/adjust ment + Interest - Lease payments Note 53 RATIO ANALYSIS Ratio Analysis for the financial year 2024-25 5 6 7 11 8 9 10 Return on Equity Ratio (%) Return on Capital employed (%) Return on investment (%)- unquoted Net capital turnover ratio Inventory turnover ratio Trade Receivables turnover ratio Trade payables turnover ratio Average Shareholder’s Equity Avg. Capital Employed=Tangible Net Worth + Total Debt + Deferred Tax Liability Average investment Working Capital Average Inventory (Natural Gas) Average Trade Receivable Average Trade Payables (Gas Purchase+ Transmission) Net Profits after taxes – Preference Dividend (if any) Profit before tax + Interest on borrowings Income generated from investments Revenue from operations Cost of goods sold or sales Net Credit Sales Net Credit Purchases (Gas purchase + Transmission) 4 Net profit ratio (%) Revenue from operations Net Profit after tax st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 195 Decrease in profit as compared to previous year Decrease in profit as compared to previous year Decrease in ratio due to new investments made during the current financial year Due to Increase in working capital while annual turnover is at par with last year. - - - Sr. No 1 2 3 Particulars Current Ratio (times) Debt-Equity Ratio (times) Debt Service Coverage Ratio (times) Reason for significant variance (25% or more) - - - - Variance % FY 2022-23 FY 2023-24 1.64 1.40 17% - - - - - - 7% 9% -20% 16% 24% -36% 20% 29% -32% 8% 30% -75% 681.82 781.48 -13% 14.40 16.29 -12% 26.33 32.88 -20% 18.78 30.35 -38% Denominator Current Liabilities (Excl. Customer deposits) Shareholder’s Equity Interest on borrowings + Principal Repayments (routine installments) Numerator Current Assets Debt consists of borrowings Earning for Debt Service = Net Profit after taxes + Non-cash expenses/adjust ment + Interest - Lease payments Note 53 RATIO ANALYSIS (Continued .....) Ratio Analysis for previous financial year 2023-24 5 6 7 11 8 9 10 Return on Equity Ratio (%) Return on Capital employed (%) Return on investment (%)- unquoted Net capital turnover ratio Inventory turnover ratio Trade Receivables turnover ratio Trade payables turnover ratio Average Shareholder’s Equity Avg. Capital Employed=Tangible Net Worth + Total Debt + Deferred Tax Liability Average investment Working Capital Average Inventory (Natural Gas) Average Trade Receivable Average Trade Payables (Gas Purchase+ Transmission) Net Profits after taxes – Preference Dividend (if any) Profit before tax + Interest on borrowings Income generated from investments Revenue from operations Cost of goods sold or sales Net Credit Sales Net Credit Purchases (Gas purchase + Transmission) 4 Net profit ratio (%) Revenue from operations Net Profit after tax st Notes to Standalone financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 196 Sr. No Particulars 1 Gross amount required to be spent by the company during 35.46 36.58 the year. Less:- Prepaid CSR Expenses ( excess spent) of earlier years 0.80 - brought forward and set off during the year Net amount required to be spent by the company 34.66 36.58 during the year. 2 Amount approved by the Board to be spent during the year 34.86 37.10 3 Amount of expenditure incurred on: (i) Construction/acquisition of any asset - - (ii) On purposes other than (I) above 6.46 8.99 4 The amount of shortfall at the end of the year out of the amount required to be spent by the Company during the period 28.40 28.11 5 The reason for above shortfalls (if any) 6 Amount transferred to unspent CSR Account related to 28.40 28.11 ongoing projects 7 The total of previous years’ shortfall amounts - - 8 Details of related party transactions in relation to - 6.41 CSR expenditure 9 Nature of CSR activities undertaken by the Company 10 Provision / Liability for unspent CSR Expenses: Opening Balance 36.59 16.35 Add: Provision created during the period 28.40 28.11 Less: Provision utilised during the period (12.26) (7.87) Closing Balance 52.73 36.59 11 Prepaid CSR Expenses (excess spent): Opening Balance 0.80 0.28 Add: Excess amount spent during the year 0.19 0.52 Less : Amount adjusted in current year (0.80) - Closing Balance ( Available for set off in succeeding years) 0.19 0.80 12 Total amount recognised in Statement of Profit and Loss 35.46 36.58 FY 2023-24FY 2024-25 Note 54 CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE As per Section 135 of the Companies Act, 2013, a company needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. A CSR committee has been formed by the company as per the Act. CSR expenditure contains the following: ( in Crores)` st Notes to Standalone financial statements for the year ended 31 March, 2025 Environment Sustainability, Community Development, Education, Training and R&D, Income Generation Activities in Aspirational Blocks Health Care, Environment Sustainability, Community Development, Education, Training and R&D Pertains to various ongoing project of education , Training. R&D, Environment Sustainability Pertains to various ongoing project of education , Training. R&D, Environment Sustainability & Health 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 197 Details of expenditure incurred for CSR activities : (` in Crores) Particular of Expenditure during the year FY 2024-25 FY 2023-24 1 Providing gas to Crematoriums (Environment / Community Development) 6.40 6.41 2 Muktidham Charitable Trust - contribution for Environment Sustainability and Ecological balance - 0.38 3 Kaushalya Skill University - contribution for establishing the industry 4.0 technology lab - 0.60 4 Aspire Disruptive Skill Foundation - Imparting industry responsive skill development to needy and unemployed youth - 0.76 5 Apang Manav Mandal - Purchase of bus for specially abled students - 0.31 6 Vapi Industries Association - Construction of a new building for Kanya Ashram Shala - 0.24 7 Blind People's Association, India - Providing artificial limbs to persons with disabilities - 0.15 8 Impact Assessment study for CSR Projects 0.06 0.14 9 Prime Minister's internship scheme (Education & Training) 0.00 - Total 6.46 8.99 Sr. No Note 54 CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE (Continued .....) Figures INR 0.00 denotes amount less than INR 50,000/-. Details of amount spent for CSR activities for earlier year ongoing project : (` in Crores) Particular of Expenditure during the year FY 2024-25 FY 2023-24 1 Imparting industry responsive skill development to needy and unemployed youth (Training) 0.77 - 2 Construction of a new building for Kanya Ashram Shala (Education) 0.72 - 3 Income Generation Activities in Aspirational Blocks - GLPC 2.55 - (Micro enterprise development, Customer hiring center, cattle feed unit, Mangalam Canteen, Millet based value chain etc) -Income generation 4 Construction & Development of Anganwadis in various districts of Gujarat (Education) 6.95 - 5 PNG connection and gas geysers for two shelter homes (Environment) 0.02 - 6 Providing gas to Crematoriums (Environment / Community Development) 1.09 7 Upgradation of Patient Care Tertiary Care & heart lung transplant program - - 6.30 UNMICRC (Preventive Healthcare) 8 Research on green hydrogen - GERMI (Research & Development) 0.10 1.02 9 Research on biogas - GERMI (Research & Development) 0.06 0.55 Total 12.26 7.87 Sr. No st Notes to Standalone financial statements for the year ended 31 March, 2025 Note 55 SEGMENT REPORTING The Company primarily operates in the segment of Natural Gas Business. Natural gas business involves distribution of gas from sources of supply to centres of demand and to the end customers. The Managing Director of the Company allocate resources and assess the performance of the Company, thus is the Chief Operating Decision Maker (CODM). The CODM monitors the operating results of the business as a one, hence no separate segment needs to be disclosed. Information about products and service: The Company is in a single line of business of Sale of Natural Gas. Information about geographical areas: 1. The Company does not have geographical distribution of revenue outside India and hence segmentwise disclosure is not applicable to the Company. 2. None of the Company's assets are located outside India hence segmentwise disclosure is not applicable to the Company. Information about major customers: None of the customer account for more than 10% of the total revenue of the Company. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 198 Note 56 RECLASSIFICATION OF COMPARATIVE FIGURES Certain reclassifications have been made to the comparative period's financial statements to: - enhance comparability and ensure consistency with the current year’s financial statements; and - ensure compliance with the Guidance Note on Division II - Ind AS Schedule III to the Companies Act, 2013. The Company believes that such presentation is more relevant for understanding of the Company’s performance. However, this does not have any impact on the profit, equity and cash flow statement for the comparative period. Note 57 EVENTS OCCURRING AFTER THE BALANCE SHEET DATE Adjusting events (that provides evidence of condition that existed at the balance sheet date) occurring after the balance sheet date are recognized in the financial statements. Material non adjusting events (that are inductive of conditions that arose subsequent to the balance sheet date) occurring after the balance sheet date that represents material change and commitment affecting the financial position are disclosed in the Board’s Report. Further, the shareholders of the Company have the power to amend the financial statements after the same has been authorized for issue by Board of Directors as per the provisions of the Companies Act, 2013. The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval of the financial statements to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. As on date of approval of these financial statements, there are no subsequent events to be recognized or reported that are not already disclosed. Note 58 SCHEME OF AMALGAMATION AND ARRANGEMENT th The Board of Directors of the Company at its meeting held on 30 August, 2024, have approved a Composite Scheme of Amalgamation and Arrangement among Gujarat State Petroleum Corporation Limited (GSPC /Transferor Company), Gujarat State Petronet Limited (GSPL /Transferor Company), GSPC Energy Limited (GEL /Transferor Company), Gujarat Gas Limited (GGL/Transferee Company & Demerged Company) and GSPL Transmission Limited (GTL /Resulting Company) and their respective Shareholders under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 and rules made thereunder (“Scheme”). The Scheme, inter alia, provides for - st 1. amalgamation of GSPC, GSPL and GEL with GGL with appointed date as 1 April, 2024; 2. post the amalgamation, demerger of “Gas Transmission Business Undertaking” into GTL with appointed date as st 1 April, 2025 and 3. various other matters consequential or otherwise integrally connected therewith. The Scheme is, inter alia, subject to sanction of the Ministry of Corporate Affairs (MCA) and receipt of necessary approvals from statutory and regulatory authorities. Note 59 PREVIOUS YEAR FIGURES Previous period figures have been re-grouped / re-classified wherever necessary, to conform to current period’s presentation. The Accompanying Notes (1-59) are an integral part of the financial Statements. st Notes to Standalone financial statements for the year ended 31 March, 2025 As per our report attached For and on behalf of Board of Directors of Gujarat Gas Limited For Ashok Chhajed & Associates Chartered Accountants ICAI Firm Reg. No. – 100641W Pankaj Joshi, IAS Milind Torawane, IAS Balwant Singh, IAS (Retd.) Chairman Managing Director Director Naresh Bahroo DIN - 01532892 DIN - 03632394 DIN- 00023872 Partner M. No. : 117743 Rajesh Sivadasan Sandeep Dave Chief Financial Officer Company Secretary Place : Gandhinagar Place : Gandhinagar th th Date : 19 May, 2025 Date : 19 May, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Consolidated Financial Statements 199 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED REPORT OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) READ WITH SECTION 129(4) OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED FINANCIAL STATEMENTS OF ST GUJARAT GAS LIMITED FOR THE YEAR ENDED 31 MARCH 2025. The preparation of consolidated financial statements of Gujarat Gas Limited for the year ended 31 March 2025 in accordance with the financial reporting framework prescribed under the Companies Act, 2013(Act) is the responsibility of the management of the company. The statutory auditors appointed by the Comptroller and Auditor General of India under section 139(5) read with section 129(4) of the Act are responsible for expressing opinion on the financial statements under section 143 read with section 129(4) of the Act based on independent audit in accordance with the standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 19 May 2025. I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the consolidated financial statements of Gujarat Gas Limited for the year ended 31 March 2025 under section 143(6)(a) read with section 129(4) of the Act. We conducted a supplementary audit of the financial statements of Gujarat Gas Limited and Guj Info Petro Limited for the year ended on that date. Further, Section 139(5) and 143(6)(b) of the Act are not applicable to Gujarat Gas Limited Employees Welfare Stock Option Trust being private entity, neither for appointment of their Statutory Auditor nor for conduct of supplementary audit. Accordingly, Comptroller and Auditor General of India has neither appointed the Statutory Auditors nor conducted the supplementary audit of this Company. This supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records. On the basis of my supplementary audit nothing significant has come to my knowledge which would give rise to any comment upon or supplement to Statutory Auditors' report under Section 143(6)(b) of the Act. For and on behalf of the Comptroller and Auditor General of India (Bijit Kumar Mukherjee) Accountant General (Audit-II), Gujarat Place: Ahmedabad Date: 01-08-2025 200 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED INDEPENDENT AUDITOR’S REPORT ON CONSOLIDATED FINANCIAL STATEMENT To The Members of Gujarat Gas Limited Report on the Audit of the Consolidated Financial Statements Opinion We have audited the accompanying Consolidated Financial Statements of Gujarat Gas Limited (hereinafter referred to as “the st “Company”) and its associate company Guj Info Petro Limited, which comprise the Consolidated Balance Sheet as at 31 March, 2025, and the Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Consolidated Statement of Changes in Equity and the Consolidated Statement of Cash Flows for the year ended on that date, and notes to the Consolidated Financial Statements, including a summary of the material accounting policies and other explanatory information (hereinafter referred to as “the Consolidated Financial Statements”). In our opinion and to the best of our information and according to the explanations given to us, the aforesaid consolidated financial statements give the information required by the Companies Act, 2013 (hereinafter referred to as “the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (hereinafter referred to as “Ind AS”) and other st accounting principles generally accepted in India, of their consolidated state of affairs of the Company as at 31 March, 2025, of the consolidated profit and total comprehensive income, consolidated changes in equity and its consolidated cash flows for the year ended on that date. Basis for Opinion We conducted our audit of the consolidated financial statements in accordance with the Standards on Auditing (hereinafter referred to as “SAs”) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company and its associate in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (hereinafter referred to as “ICAI”) together with the ethical requirements that are relevant to our audit of the consolidated financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements. Key Audit Matter Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report. 201 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED INDEPENDENT AUDITOR’S REPORT ON CONSOLIDATED FINANCIAL STATEMENT Sr. No. Key Audit Matter 1 Revenue recognition The Company is in the business of distribution of natural gas. The Holding Company has major types of customers such as industrial, commercial, non-commercial, domestic and CNG (including oil marketing companies). Revenue from sale of natural gas is considered as key audit matter as there is a risk of accuracy of recognition and measurement of gas sales in the Consolidated Financial Statements considering following aspects: • Different pricing structure for different types of customers and frequency of price change • Voluminous number of customers • Capturing Gas Consumption data in billing • Estimating unbilled revenue at the year-end • Extensive use of SAP and other IT systems for managing the billing operation 2 Contingent Liabilities Contingent Liabilities are for ongoing litigations and claims with various authorities and third parties. These relate to direct tax, indirect tax, claims and legal proceedings. Contingent liabilities are considered as key audit matters as the amount involved is significant and it also involves significant management judgement to determine possible outcome and future cash outflows of these disputes. Auditor’s Response Principal audit procedures performed included the following: - Evaluated the design of internal control. - For evaluation of operative effectiveness of internal control: • Verified samples of gas sales invoices with relevant agreements executed with the customers, accuracy of pricing, consumption quantity, tax amount of invoices of major types of customers. • Site visit to understand flow of data. - Performed analytical procedures to verify number of bills generated during the year for each major type of customers as per their respective billing cycle. - On sample basis, verified: • Up-dation of Daily Consumption Quantity of gas of Industrial customers in the billing system. • Up-dation of prices of gas for all major types of customers in the billing system. • Sales invoices. - Verified subsequent realisation, on test check basis, of invoices generated for the month of March 2025. - Evaluated the appropriateness of accounting policies, related disclosure made and overall presentation in the Standalone Financial Statements in terms of Ind AS-115. Principal audit procedure performed included the following: st - Obtained details of disputed claims as on 31 March, 2025 from the management. - Discussed with the management about the significant judgment considered in determining possible outcome and future cash outflows of these disputes. - Verified relevant documents related to disputes. - Evaluated the appropriateness of accounting policies, related disclosure made and overall presentation in the Standalone Financial Statements in terms of Ind AS-37. 202 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED INDEPENDENT AUDITOR’S REPORT ON CONSOLIDATED FINANCIAL STATEMENT 203 Information Other than the Consolidated Financial Statements and Auditor’s Report Thereon The Company’s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board’s Report including Annexures to Board’s Report, Business Responsibility Report, Corporate Governance and Shareholder’s Information, but does not include the consolidated financial statements and our auditor’s report thereon. Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information consider whether the other information is materially inconsistent with the consolidated financial statements, or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. When we read the Final Annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions as per applicable laws and regulations. Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance, consolidated total comprehensive income, consolidated changes in equity and consolidated cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. The respective Board of Directors of the Company and its associate are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error which have been used for the purpose of the preparation of the consolidated financial statements by the Directors of the Company, as aforesaid. In preparing the consolidated financial statements, the respective Board of Directors of the Company and its associate are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the their respective entities or to cease operations, or has no realistic alternative but to do so. The respective Board of Directors of the Company and its associate are responsible for overseeing the financial reporting of the Company and its associate. Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(I) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED INDEPENDENT AUDITOR’S REPORT ON CONSOLIDATED FINANCIAL STATEMENT • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Obtain sufficient appropriate audit evidence regarding the financial information of the Company and its associate to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of such entity included in the consolidated financial statements of which we are the independent auditors. For the other entity included in the consolidated financial statements, which have been audited by other auditor, such other auditor remains responsible for the direction, supervision and performance of the audit carried out by them. We remain solely responsible for our audit opinion. Materiality is the magnitude of misstatements in the consolidated financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the consolidated financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the consolidated financial statements. We communicate with those charged with governance of the Company regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Other Matter The Consolidated financial statements include the Company’s share of net profit after tax of ` 4.49 crore and total comprehensive st income of ` 4.44 crore for the year ended 31 March, 2025 as considered in the consolidated financial statements, in respect of one associate company, whose financial statements have not been audited by us. These financial statements have been audited by other auditors whose report has been furnished to us by the Management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of the associate and our report in terms of sub-sections (3) of Section 143 of the Act, in so far as it relates to the aforesaid associate, is based solely on the report of the other auditor. Our opinion on the consolidated financial statements and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matters with respect to our reliance on the work done and the report of the other auditors. Report on Other Legal and Regulatory Requirements 1. As required by Section 143(3) of the Act, based on our audit we report that: a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated financial statements. b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books. c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including Other Comprehensive Income, the Consolidated Statement of Changes in Equity and the Consolidated Statement of Cash Flows dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements. d) In our opinion, the aforesaid consolidated financial statements comply with the Ind AS specified under Section 133 of the Act. e) As both the Company and its Associate Company are Government Companies, in terms of notification no. G.S.R 463 (E) th dated 05 June, 2015, issued by Ministry of Corporate Affairs, the sub-section (2) of section 164 of the Act is not applicable. 204 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED INDEPENDENT AUDITOR’S REPORT ON CONSOLIDATED FINANCIAL STATEMENT f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and its associate and the operating effectiveness of such controls, refer to our separate Report in terms of sub-sections (3) of Section 143 of the Act in “Annexure – A”. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls over financial reporting. g) As both the Company and its Associate Company are Government Companies, in terms of notification no. G.S.R 463 (E) th dated 05 June, 2015, issued by Ministry of Corporate Affairs, the sub-section (16) of section 197 of the Act is not applicable. h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us: i. The Company has disclosed the impact of pending litigations on its financial position of the Company and its associate in its consolidated financial statements – Refer Note 43 to the consolidated financial statements. ii. The Company and its associate did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses. iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company and its associate. iv. (a) The Managements of the Company has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. (b) The Managements of the Company has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. (c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances performed by us on the Company nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e) of the Companies (Audit and Auditors) Rules, 2014, as provided under (a) and (b) above, contain any material misstatement. v. (a) The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable. (b) The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable. vi. Based on our examination, which included test checks and that performed by the respective auditors of the associate which is a company incorporated in India whose financial statements have been audited under the Act, the Company and its associate have used accounting software for maintaining its books of account for the financial year ended st 31 March 2025 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we and respective auditors of the above referred associate did not come across any instance of the audit trail feature being tampered with and the audit trail has been preserved by the Company and above referred associate as per the statutory requirements for record retention. 2. With respect to the matters specified in paragraphs 3(xxi) and 4 of the Companies (Auditor’s Report) Order, 2020 (the “Order”/ “CARO”) issued by the Central Government in terms of Section 143(11) of the Act, to be included in the Auditor’s report, according to the information and explanations given to us, and based on the CARO report issued by other auditor of associate included in the consolidated financial statements of the Company, to which reporting under CARO is applicable, we report that there are no qualifications or adverse remarks in this CARO report. 205 2024-2025 th 13 ANNUAL REPORT For Ashok Chhajed & Associates Chartered Accountants Firm Registration No. – 100641W Naresh Bahroo Partner Place: Gandhinagar Membership No. – 117743th Date: 19 May, 2025 UDIN : 25117743BMIGQD8539
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GUJARAT GAS LIMITED INDEPENDENT AUDITOR’S REPORT ON CONSOLIDATED FINANCIAL STATEMENT ANNEXURE–A TO THE INDEPENDENT AUDITOR’S REPORT (Referred to in paragraph 1 (f) under ‘Report on Other Legal and Regulatory Requirements’ section of our Independent Auditors st Report of even date on the consolidated financial statements for the year ended 31 March, 2025 to the members of Gujarat Gas Limited) Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”) st In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended 31 March, 2025, we have audited the internal financial controls over the financial reporting with reference to consolidated financial statements of Gujarat Gas Limited (“the Company”) and its associate, Guj Info Petro Limited which is company incorporated in India, as of that date. Management's Responsibility for Internal Financial Controls The Respective Board of Directors of the Company and its associate, which is company incorporated in India, are responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the these companies considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (“ICAI’). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act. Auditor's Responsibility Our responsibility is to express an opinion on the Company’s internal financial controls with reference to consolidated financial statement based on our audit and based on the audit conducted by other auditors in respect of the associate company. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) issued by ICAI and the Standards on Auditing (SA), prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to consolidated financial statements was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to consolidated financial statements and their operating effectiveness. Our audit of internal financial controls with reference to consolidated financial statements included obtaining an understanding of internal financial controls with reference to consolidated financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls with reference to consolidated financial statements. 206 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED INDEPENDENT AUDITOR’S REPORT ON CONSOLIDATED FINANCIAL STATEMENT Meaning of Internal Financial Controls with reference to consolidated financial statements A company’s internal financial control with reference to consolidated financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control with reference to consolidated financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Inherent Limitations of Internal Financial Controls with reference to consolidated financial statements Because of the inherent limitations of internal financial controls with reference to consolidated financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to consolidated financial statements to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion In our opinion, to the best of our information and according to the explanations given to us, the Company and its associate, which is company incorporated in India, have, in all material respects, an adequate internal financial controls system with reference to consolidated financial statements and such internal financial controls with reference to consolidated financial statements were st operating effectively as at 31 March, 2025, based on the internal control over financial reporting criteria established by these Companies considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. 207 2024-2025 th 13 ANNUAL REPORT For Ashok Chhajed & Associates Chartered Accountants Firm Registration No. – 100641W Naresh Bahroo Partner Place: Gandhinagar Membership No. – 117743th Date: 19 May, 2025 UDIN : 25117743BMIGQD8539
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GUJARAT GAS LIMITED ST CONSOLIDATED BALANCE SHEET AS AT 31 MARCH, 2025 (` in Crores) I. ASSETS 1 Non-Current Assets (a) Property, plant and equipment 3.1 7,272.02 6,971.87 (b) Capital work in progress 3.2 823.81 899.56 (c) Investment property 4 12.06 1.30 (d) Intangible assets 5.1 539.09 537.37 (e) Intangible assets under development 5.2 15.10 18.44 (f) Right-of-use assets 5.3 384.37 252.24 (g) Investment in equity accounted investee 6 36.02 33.25 (h) Financial assets (i) Investments 7 135.60 135.04 (ii) Loans 8 1.32 2.22 (iii) Other financial assets 9 99.42 104.47 (i) Other non-current assets 10 367.11 507.00 Total Non-Current Assets 9,685.92 9,462.76 2 Current Assets (a) Inventories 11 61.86 58.67 (b) Financial Assets (i) Investments - - (ii) Trade receivables 12 1,023.97 1,029.84 (iii) Cash and cash equivalents 13 326.86 915.98 (iv) Bank balances other than (iii) above 14 32.54 10.14 (v) Loans 15 2.25 2.99 (vi) Other financial assets 16 1,298.64 12.83 (c) Other current assets 17 219.07 198.36 Total Current Assets 2,965.19 2,228.81 TOTAL ASSETS 12,651.11 11,691.57 II. EQUITY AND LIABILITIES 1 Equity (a) Equity share capital 18 137.68 137.68 (b) Other Equity 19 8,351.96 7,584.80 Total Equity 8,489.64 7,722.48 2 Liabilities Non-Current Liabilities (a) Financial Liabilities (i) Borrowings 20 - - (ii) Lease Liabilities 21 115.16 117.77 (b) Provisions 22 47.11 52.58 (c) Deferred tax liabilities (Net) 23 958.88 910.75 (d) Other non-current liabilities 24 75.99 73.05 Total Non-Current Liabilities 1,197.14 1,154.15 Current Liabilities (a) Financial Liabilities (i) Borrowings 25 - - (ii) Lease Liabilities 21 34.82 32.49 (iii) Trade payables 26 Total outstanding dues of micro enterprises and small enterprises 65.18 51.17 Total outstanding dues of creditors other than micro enterprises 654.76 649.04 and small enterprises (iv) Other financial liabilities 27 1,987.17 1,908.19 (b) Other current liabilities 28 167.07 140.59 (c) Provisions 29 27.92 26.83 (d) Current Tax Liabilities (Net) 30 27.41 6.63 Total Current Liabilities 2,964.33 2,814.94 Total Liabilities 4,161.47 3,969.09 TOTAL EQUITY AND LIABILITIES 12,651.11 11,691.57 See accompanying notes to the financial statements (1-61) As atNote No.Particulars st 31 March, 2025 As atst 31 March, 2024 As per our report attached For Ashok Chhajed & Associates For and on behalf of Board of Directors of Gujarat Gas Limited Chartered Accountants Pankaj Joshi, IAS Milind Torawane, IAS Balwant Singh, IAS (Retd.) ICAI Firm Reg. No. – 100641W Chairman Managing Director Director Naresh Bahroo DIN - 01532892 DIN - 03632394 DIN- 00023872 Partner M. No. : 117743 Rajesh Sivadasan Sandeep Dave Chief Financial Officer C ompany Secretary Place : Gandhinagar Place : Gandhinagar th th Date : 19 May, 2025 Date : 19 May, 2025 208 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED ST CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH, 2025 (` in Crores) Particulars Note For the year ended For the year ended st st No 31 March, 2025 31 March, 2024 Income I. Revenue from Operations 31 17,184.97 16,292.97 II. Other income 32 208.29 106.11 III. Total Income (I+II) 17,393.26 16,399.08 IV. Expenses Cost of materials consumed / Purchase of stock in trade 33 13,219.87 12,555.40 Changes in inventories of natural gas 34 (3.89) 0.25 Employee Benefits Expenses 35 189.30 198.88 Finance Costs 36 32.49 29.31 Depreciation and Amortization Expenses 37 510.64 474.30 Excise Duty 698.02 602.78 Other Expenses 38 1,201.91 1,059.28 Total Expenses (IV) 15,848.34 14,920.20 V. Profit Before Exceptional Items and Tax (III-IV) 1,544.92 1,478.88 VI. Exceptional item (Income) / Expense 39 - (55.69) VII. Profit Before share of net profit of equity accounted 1,544.92 1,534.57 investee & Tax (V-VI) Add: Share of net profit of equity accounted investee 4.49 2.57 Profit Before Tax 1,549.41 1,537.14 VIII. Tax expense: 40 Current Tax 352.60 331.50 Deferred Tax 48.49 61.94 Total Tax Expense (VIII) 401.09 393.44 IX.Profit for the period (VII-VIII) 1,148.32 1,143.70 X. Other comprehensive income 41 A (i) Items that will not be reclassified to profit or loss 8.15 11.38 (ii) Income tax related to items that will not be 0.36 (2.72) reclassified to profit or loss - gain / (expense) B. Share of Other comprehensive income of equity (0.05) (0.05) accounted investee Total other comprehensive income (X) 8.46 8.61 XI. Total comprehensive income for the period (IX+X) 1,156.78 1,152.31 Earnings per equity share of Face Value of ` 2 each 42 Basic 16.68 16.61 Diluted 16.68 16.61 See accompanying notes to the financial statements (1-61) 209 2024-2025 th 13 ANNUAL REPORT As per our report attached For Ashok Chhajed & Associates For and on behalf of Board of Directors of Gujarat Gas Limited Chartered Accountants Pankaj Joshi, IAS Milind Torawane, IAS Balwant Singh, IAS (Retd.) ICAI Firm Reg. No. – 100641W Chairman Managing Director Director DIN - 01532892 DIN - 03632394 DIN- 00023872 Naresh Bahroo Rajesh Sivadasan Sandeep Dave Partner Chief Financial Officer Company Secretary M. No. : 117743 Place : Gandhinagar Place : Gandhinagar th th Date : 19 May, 2025 Date : 19 May, 2025
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GUJARAT GAS LIMITED (` in Crores) Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 A. CASH FLOW FROM OPERATING ACTIVITIES Net Profit Before Tax 1,549.41 1,537.14 Adjustments for: Depreciation and Amortization Expenses 510.64 474.30 Share of net profit of equity accounted investee (4.49) (2.57) Loss on sale / write-off of Fixed Assets including provisions (net) 8.94 2.91 Profit on sale as scrap (0.88) (0.98) Provision for loss on diminution in value of Inventory 6.11 0.09 Profit on Lease termination / modification / reassessment (net) - (0.02) Bad Debts Written Off 1.23 - Provision for Doubtful Trade Receivables / Advances / Deposits 29.45 4.83 Profit from sale of investment - (0.06) Finance Costs 32.49 29.31 Provision/liability no longer required written back (27.27) (4.84) Interest Income (142.64) (63.26) Operating Profit before Working Capital Changes 1,962.99 1,976.85 Adjustments for changes in Working Capital (Increase)/Decrease in Trade Receivables 0.94 (10.24) (Increase)/Decrease in Other - Non-Current Assets (4.06) (57.77) (Increase)/Decrease in Other financial assets-Non-current 9.29 (2.70) (Increase)/Decrease in Loans and Advances-Current 0.74 0.85 (Increase)/Decrease in Other Current Assets (17.02) 3.82 (Increase)/Decrease in Other financial assets-Current (3.01) (2.97) (Increase)/Decrease in Inventories (4.84) 2.51 (Increase)/Decrease in Loan and advances-Non-current 0.90 0.52 Changes in Assets (17.06) (65.98) Increase/(Decrease) in Trade Payables 33.26 (14.77) Increase/(Decrease) in Other financial liabilities-Current 93.85 46.30 Increase/(Decrease) in Other current liabilities 33.12 6.43 Increase/(Decrease) in Other Non-current Liabilities 2.94 1.97 Increase/(Decrease) in Short-term provisions 13.77 8.37 Increase/(Decrease) in Long-term provisions (5.47) (2.42) Changes in Liabilities 171.47 45.88 Cash Generated from Operations 2,117.40 1,956.75 Income tax paid (Net of refund) (311.54) (322.71) Net Cash from/(used in) Operating Activities 1,805.86 1,634.04 B. CASH FLOW FROM INVESTING ACTIVITIES Payments for Property, plant and equipments/Intangible assets (751.73) (837.14) including capital work in progress and capital advances Payment for Purchase of investments - (100.00) Proceeds from sale of Investments - 0.06 Other Bank balances in Earmark funds (net) (22.40) (3.86) Investment in Fixed Deposits with banks and financial institutions (net) (1,261.65) - Interest received 111.92 60.56 Proceeds from sale of Property, plant and equipments 0.93 0.09 Dividend received from equity accounted investee 1.68 1.64 Net Cash from/(used in) Investing Activities (1,921.25) (878.65) C. CASH FLOW FROM FINANCING ACTIVITIES Payments of lease liabilities (54.75) (29.30) Interest Paid (including interest on lease liability) (29.91) (27.32) Dividend Paid (including tax thereon) (389.07) (457.49) Net Cash from/(used in) Financing Activities (473.73) (514.11) NET INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C) (589.12) 241.28 Cash and Cash Equivalents at the beginning of the year 915.98 674.70 Cash and Cash Equivalents at the end of the year 326.86 915.98 Details of Closing Cash and Cash Equivalents and reconciliation with Balance sheet: (A) Cash and Cash Equivalents ( Refer note 13) Cash in hand 3.90 2.73 Balances with Banks 86.83 117.52 Balances in Fixed / Liquid Deposits 236.13 795.73 (B) Balances in Bank Overdraft / Cash Credit (Refer note 25) - - Total (A+B) 326.86 915.98 ST CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH, 2025 210 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Notes to Statement of Cash Flows : (i) The above Statement of Cash Flows has been prepared under the “Indirect Method” as set out in the Indian Accounting Standard IND AS-7 on Statement of Cash Flows. (ii) Purchase of Property, plant and equipments and other Intangible assets are stated inclusive of movements of capital work in progress, assets under development and capital advances. (iii) Interest received is classified as investing cash flows and considered and presented as ‘cash flows from investing activities’ to the extent, it represents time value of money. (iv) Cash and cash equivalents comprise cash & bank balance and deposits with banks and financial institutions. The Company considers all highly liquid investments with original maturities of three months or less and that are readily convertible to known amounts of cash to be cash equivalents. (v) Refer note 50 for Reconciliation of lease liabilities under Financing Activities. (vi) Previous year figures have been regrouped and reclassified wherever considered necessary to conform to the current year's figures. ST CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH, 2025 211 2024-2025 th 13 ANNUAL REPORT As per our report attached For Ashok Chhajed & Associates For and on behalf of Board of Directors of Gujarat Gas Limited Chartered Accountants Pankaj Joshi, IAS Milind Torawane, IAS Balwant Singh, IAS (Retd.) ICAI Firm Reg. No. – 100641W Chairman Managing Director Director DIN - 01532892 DIN - 03632394 DIN- 00023872 Naresh Bahroo Rajesh Sivadasan Sandeep Dave Partner Chief Financial Officer Company Secretary M. No. : 117743 Place : Gandhinagar Place : Gandhinagar th th Date : 19 May, 2025 Date : 19 May, 2025
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GUJARAT GAS LIMITED 212 ST CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (SOCIE) FOR THE YEAR ENDED 31 MARCH, 2025 st st Particulars As at 31 March, 2025 As at 31 March, 2024 Balance at the beginning of the reporting period 137.68 137.68 Changes in equity share capital due to prior period errors - - Restated balance at the beginning of the reporting period 137.68 137.68 Changes in equity share capital during the year - - Balance at the end of the reporting period 137.68 137.68 (A) Equity Share Capital ( in Crores)` ** Capital Reserve is created on account of Business combination transaction th Note (i): The "Amalgamation and Arrangement Reserve" created pursuant to scheme of amalgamation and arrangement is treated as free reserve based on the judgment of Honourable Gujarat High Court dated 18 April, 2015 read with relevant other court decisions. Note (ii): The Company has elected to recognise changes in the fair value of investments in equity securities in other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve (Equity Instruments through OCI). Note (iii): Accumulated balance of Remeasurements of post-employment benefit obligation, Gain/(Loss) net of tax, recognised in retained earnings is ` 3.05 crores (Previous year ` (2.58) crores). Note (iv): Nature and purpose of each reserve is disclosed under note no. 19 -'Other equity'. As per our report attached For Ashok Chhajed & Associates Chartered Accountants ICAI Firm Reg. No. – 100641W For and on behalf of Board of Directors of Gujarat Gas Limited Pankaj Joshi, IAS Milind Torawane, IAS Balwant Singh, IAS (Retd.) Rajesh Sivadasan Sandeep Dave Chairman Managing Director Director Chief Financial Officer Company Secretary DIN - 01532892 DIN - 03632394 DIN- 00023872 Place : Gandhinagar th Date : 19 May, 2025 Naresh Bahroo Partner M. No. : 117743 Place : Gandhinagarth Date : 19 May, 2025 Amalgamation Capital General Retained Equity & Arrangement Reserve Reserve Earnings Instruments Reserve ** through OCI st Balance at 1 April, 2024 879.59 (23.98) 2.72 6,824.24 (97.78) 7,584.80 Changes in accounting policy / prior period errors - - - - - - Restated balance at the beginning of the reporting period (a) 879.59 (23.98) 2.72 6,824.24 (97.78) 7,584.80 Profit for the period - - - 1,148.32 - 1,148.32 Other comprehensive income for the period - - - - 2.83 2.83 Items of OCI recognised directly in retained earnings: Remeasurements of post-employment benefit obligation, net of tax - - - 5.63 - 5.63 Total comprehensive income for the period (b) - - - 1,153.95 2.83 1,156.78 Dividend (c) - - - (389.63) - (389.63)st Balance at 31 March, 2025 (a+b+c) 879.59 (23.98) 2.72 7,588.56 (94.95) 8,351.96 st Balance at 1 April, 2023 879.59 (23.98) 2.72 6,133.35 (101.41) 6,890.27 Changes in accounting policy / prior period errors - - - - - - Restated balance at the beginning of the reporting period (d) 879.59 (23.98) 2.72 6,133.35 (101.41) 6,890.27 Profit for the year - - - 1,143.70 - 1,143.70 Other comprehensive income for the year - - - - 3.63 3.63 Items of OCI recognised directly in retained earnings: Remeasurements of post-employment benefit obligation, net of tax - - - 4.98 - 4.98 Total comprehensive income for the year (e) - - - 1,148.68 3.63 1,152.31 Dividend (f) - - - (457.78) - (457.78)st Balance at 31 March, 2024 (d+e+f) 879.59 (23.98) 2.72 6,824.24 (97.78) 7,584.80 (B) Other equity (` in Crores) Particulars Attributable to the equity holders of the Company Reserves & Surplus Items of Other Comprehensive Income Total Other Equity 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 213 Note 1 – Corporate Information 1. Corporate Information a) Gujarat Gas Limited (GGL or "Company") (CIN : L40200GJ2012SGC069118) formerly known as GSPC Distribution Networks Limited (GDNL) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. GGL is a Government Company under section 2(45) of Companies Act 2013. Its shares are listed on Bombay Stock Exchange and National Stock Exchange in India. The registered office is located at Gujarat Gas CNG Station, Sector 5/C, Gandhinagar -382006. The Company is engaged in Natural Gas Business in India. Natural gas business involves distribution of gas from sources of supply to centres of demand and to the end customers. The scheme of amalgamation and arrangement was sanctioned by the Hon’ble Gujarat High Court at Ahmedabad vide its th order dated 30 March, 2015 between the following transferor companies - 1. GSPC Gas Company Limited (GSPC Gas) 2. Gujarat Gas Company Limited (GGCL) 3. Gujarat Gas Financial Services Limited (GFSL) 4. Gujarat Gas Trading Company Limited (GTCL) (Collectively called Transferor Companies) with Gujarat Gas Limited (formerly known as GSPC Distribution Networks Limited-GDNL) (the transferee) under the st Scheme of Amalgamation and Arrangement with an appointed date of 1 April, 2013. Subsequently, the company's name th has been changed from GSPC Distribution Networks Limited to Gujarat Gas Limited (GGL) with effect from 15 May, 2015. b) Authorization of financial statements The Consolidated Financial Statements were approved and authorized for issue in accordance with a resolution passed in th meeting of Board of the Directors held on19 May, 2025. c) Functional and Presentation Currency The financial statements are presented in Indian rupee ` (INR), which is the functional and presentation currency of the Company. Note 2 - Material Accounting Policies This note provides a list of the material accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated. Basis of Preparation (I) Statement of Compliance with Ind AS The consolidated financial statements has been prepared in accordance and comply in all material aspects with Indian Accounting Standards (Ind AS) notified and applicable under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act and read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended and Companies (Indian Accounting Standards) Amendment Rules, 2016 and relevant amendment rules issued thereafter. Accordingly, the Company has prepared these Consolidated Financial Statements which comprise the Consolidated Balance st st Sheet as at 31 March, 2025, the Consolidated Statement of Profit and Loss for the year ended 31 March, 2025, the st Consolidated Statement of Cash Flows for the year ended 31 March, 2025 and the Consolidated Statement of Changes in Equity for the year ended as on that date, and material accounting policies and other explanatory information (together hereinafter referred to as ‘Consolidated Financial Statements’ or ‘financial statements’). All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. (ii) Historical cost convention The financial statements are prepared as a going concern on accrual basis of accounting under historical cost convention, except for the following: • certain financial instruments measured at fair value; • defined benefit plans - plan assets measured at fair value; and st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 214 The Company controlled the Gujarat Gas Limited Employees Welfare Stock Option Trust (ESOP Trust) as per the requirements of Ind AS-110 - Consolidated Financial Statements. Accordingly, the same had been consolidated as a 100 % th sole controlled entity upto 30 September, 2023. All assets and liabilities of ESOP Trust had been liquidated in the quarter th ended on 30 September, 2023 and ESOP trust had been wound up. Associates Investment in associate has been accounted for using Equity Method in accordance with Ind AS-28 - Investments in Associates and Joint Ventures. Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise the Company’s share of the post-acquisition profits or losses of the investee in profit and loss, and the Company’s share of other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognised as a reduction in the carrying amount of the investment. Any excess / short of the amount of Investment in an associate over the cost of acquisition at the date of Investment is considered as Capital Reserve and has been included in carrying amount of Investment and disclosed separately. The carrying amount of Investment is adjusted thereafter for the post acquisition changes in the Share of net Asset of associate. When the Company’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the Company does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity. Unrealised gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Company. st The financial statements of associates are prepared up to the same reporting date as that of the company i.e. 31 March, 2025 st for the current year, 31 March, 2024 for the comparative year. Use of estimates and judgements The presentation of the financial statements are in conformity with the Ind AS which requires the management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on management's evaluation of relevant facts and circumstances as on the date of financial statements. The actual outcome may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements. Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes: Note 3.1 & 5.1: Useful lives of property, plant and equipment and intangible assets Note 12: Recognition and measurement of unbilled gas sales revenue Note 26, 27,28 &29: Recognition and measurement of other provisions Note 40: Current/deferred tax expense (Including estimates for Uncertain tax treatments) Note 43 : Contingent liabilities and assets Note 45: Expected credit loss for receivables Note 45: Fair valuation of unlisted securities Note 47: Measurement of defined benefit obligations Note 5.3 & 50: Definition of Lease, lease term and discount rate Name of the Undertaking Guj Info Petro Limited (GIPL) Relationship Associate Country of Incorporation India Proportionate beneficial ownership interest/voting power 49.94% (iii) Principles of consolidation and equity accounting The consolidated Financial Statements of the Company represents consolidation of Company’s Financial Statements with Guj Info Petro Limited (GIPL), an associate company st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 215 (a) Property, Plant and Equipment Property plant and equipment are stated at their cost of acquisition / construction less depreciation and impairment, if any. The cost comprises of the purchase price and any attributable cost for bringing the asset to its working condition for its intended use; like freight, duties, taxes and other incidental expenses, net of CENVAT or Goods and service tax (GST) credit. The Company capitalises to project assets all the cost directly attributable and ascertainable, to completing the project. These costs include expenditure of pipelines, plant and machinery, cost of laying of pipeline, cost of survey, commissioning and testing charge, detailed engineering and interest on borrowings attributable to acquisition of such assets. The gas distribution networks are treated as commissioned when supply of gas commences to the customer(s). Considering the voluminous data and materiality involved, the Pipeline Network project assets and connection equipment project assets are capitalized at the end of the month in which the assets are commissioned and completed. Subsequent expenditures, including replacement costs where applicable, incurred for an item Property plant and equipment are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is de-recognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. Component accounting of assets: If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. The Company has identified, reviewed, tested and determined the componentisation of the significant assets. Assets installed at customer premises, including meters and regulators where applicable, are recognised as property plant and equipment if they meet the definition provided under Ind AS 16 subject to materiality as determined by the management and followed consistently. Any item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is charged to revenue in the income statement when the asset is derecognised. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset. On transition to Ind AS, the Company had elected to carry forward the previous GAAP net carrying value of all its property, plant st and equipment recognized as at 1 April, 2015 as the deemed cost. Capital work in Progress: Capital Work in Progress includes expenditure incurred on assets, which are yet to be commissioned and capital inventory, which comprises stock of capital items/construction materials at respective city gas network. All the directly identifiable and ascertainable expenditure, incidental and related to construction incurred during the period of construction on a project, till it is commissioned, are kept as Capital work in progress (CWIP)and disclosed under ‘Capital work- in-progress’ and after commissioning the same is transferred / allocated to the respective category of property, plant and equipment. Further, advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date are classified as capital advances under other non- current assets. (b) Investment Properties Investment properties comprises of free hold or lease hold land and building that are held for rental yield and/or capital appreciation. Investment property is measured initially at its cost, including related transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalised to the asset's carrying amount only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed as and when incurred. When part of an investment property is replaced, the carrying amount of the replaced part is derecognised. On transition to Ind AS, the Company had elected to carry forward the previous GAAP net carrying value of all its investment st property recognized as at 1 April, 2015 as the deemed cost. st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED (c) Intangible assets Intangible assets are stated at cost less accumulated amortization and impairment. Intangible Assets includes amount paid towards obtaining the Right of Use (ROU) of land and Right of Way (ROW) permissions for laying the gas pipeline network and cost of developing software for internal use. The Company capitalises software as Intangible Asset where it is expected to provide future enduring economic benefits. Cost associated with maintaining software programmes are recognised as expenses as and when incurred. Any item of intangible assets is derecognised upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the intangible asset (calculated as the difference between the net disposal proceeds and the carrying amount of the intangible asset) is charged to revenue in the income statement when the intangible asset is derecognised. On transition to Ind AS, the Company had elected to carry forward the previous GAAP net carrying value of all its intangible st assets recognized as at 1 April, 2015 as the deemed cost. (d) Depreciation and amortisation methods, estimated useful lives and residual values Depreciation is calculated to systematically allocate the cost of property, plant and equipment, intangible asset and investment property net of the estimated residual values over the estimated useful life. Freehold land is not depreciated. Depreciation is computed using Straight Line Method (SLM) over the useful lives of the assets as specified in Schedule II to the Companies Act, 2013, read with the following notes: i. The Schedule specifies useful life of Pipelines as 30 years for those used in exploration, production and refining of oil and gas. The Company has considered the useful life of 30 years for the pipelines used in city gas distribution business. ii. City gas stations, skids, pressure regulating stations, meters and regulators are estimated to have useful life of 18 years based on technical assessment made by technical expert and management. iii. Cost of mobile phones, are expensed off in the year of purchase. iv. Temporary building structures are estimated to have useful life of 1 year. The management believes that these useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used. The useful lives are reviewed by the management at each financial year end and revised, if appropriate. In case of a revision, the unamortised depreciable amount (remaining net value of assets) is charged over the revised remaining useful lives. Based on management estimate, residual value of 5% is considered for respective tangible assets except for the Pipeline Network assets which are shown as the Plant and Equipment at Note No. 3.1 - Property, Plant and Equipment where the residual value is considered to be NIL as the said assets technically and commercially not feasible to extract from underground. The residual values, useful lives and methods of depreciation of property, plant and equipment (PPE) are reviewed at the end of each financial year and adjusted prospectively if appropriate. Component accounting of assets: If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment and accordingly depreciated at the useful lives specified as above. Depreciation on items of property, plant and equipment acquired / disposed off during the year is provided on pro-rata basis with reference to the date of addition / disposal. Investment properties, if any, are depreciated based on the useful life on a Straight Line basis prescribed in Schedule II to the Companies Act, 2013. Intangible assets are amortized over their individual estimated useful lives on a Straight Line basis, commencing from the year in which the same are available to the company for its intended use. The useful lives as estimated by the management for the intangible assets are as follows: I. Right of Way (ROW) Permissions 30 Years (Considered more than 10 years as inextricably linked and dependent on the useful life of pipeline networks as referred above for which the Right of Way has been obtained). II. Software 6 Years No amortisation is charged on Right of Use (RoU) of land being perpetual in nature. The same is tested for impairment based on principles of Ind AS-36. 216 st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 217 The Company has constructed / installed CNG stations' buildings and machineries, on land taken on lease from various lessor under lease deed for periods ranging from 35 years to 99 years. However, assets constructed / installed on such land have been depreciated at useful lives as referred above. Capital assets /facilities installed at the customers’ premises on the land of the customers/CNG franchisee whose ownership is not with the company have been depreciated at the useful lives specified as above. (e) Impairment of non-financial assets In accordance with Ind AS-36 on “Impairment of Assets” at the balance sheet date, non-financial assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets, is considered as a cash generating unit. If any such indication exists, an estimate of the recoverable amount of the asset/cash generating unit is made. Assets whose carrying value exceeds their recoverable amount are written down to the recoverable amount. Recoverable amount is higher of an asset’s or cash generating unit’s net selling price and its value in use. Assessment is also done at each Balance Sheet date as to whether there is any indication that an impairment loss recognized for an asset in prior accounting periods may no longer exist or may have decreased. Impairment losses of continuing operations, including impairment on inventories, are recognised in the statement of profit and loss, except for properties previously revalued with the revaluation surplus taken to Other Comprehensive Income (OCI). For such properties, the impairment is recognised in OCI up to the amount of any previous revaluation surplus. (f) Revenue recognition i) Revenue from operation Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of discounts and rebates, if any, as part of the contract in the normal course of the Company's activities. Income is recognized in the income statement when the control of the goods or services has been transferred. The amount recognised as revenue is stated inclusive of excise duty and exclusive of sales tax /value added tax (VAT) and Goods and service tax (GST). Revenue from sale of Natural Gas is recognized at the point in time when control is transferred to the customer, generally on delivery of the gas on metered/assessed measurements facility. Sales are billed bi-monthly cycle for domestic customers, monthly/fortnightly cycle for commercial and non-commercial customers and fortnightly / 10 days cycle basis for industrial customers. Revenue from sale of Compressed Natural Gas (CNG) is recognized at the point in time when control is transferred to the customer, generally on delivery of the gas to consumers from retail outlets and is billed weekly / fortnightly cycle in case of OMC customers. Revenue recognised towards supply of natural gas already occurred for the period from the end of the last billing date to the Balance Sheet date has been reflected under “Trade receivables”(which refer as unbilled revenue) which is calculated based on customer wise previous average consumption. Gas transmission income is recognized over the period in which the related volumes of gas are delivered to the customers. Commitments (take or pay charges) income from customers for gas sales and gas transmission is recognized on accrual basis in the period to which it relates to. In case of industrial customers, non-refundable charges for initial or additional gas connection collected from the customers is deferred over the period of contract with respective customers and in case of domestic & commercial customers is deferred over the useful life of the asset. Revenue of yearly fees income is recognised on accrual basis over the period, on time proportion basis, considering the terms of the underlying contract with customers. For Domestic customers, as the amount for yearly fees is collected post completion of the year, unbilled yearly fees is calculated on time proportionate basis from the due date to the Balance Sheet date and the same is disclosed under “Trade receivables” (which refer as unbilled revenue).” For Commercial/Non- Commercial customers, Yearly fees is billed in advance to the customers calculated based on time proportionate basis is deferred over such period and the same is disclosed under Other current liabilities as “Deferred revenue”. st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 218 ii) Other income Revenue in respect of interest/ late payment charges on delayed realizations from customers and cheque bounce charges, if any, is recognized on grounds of prudence and on the basis of certainty of collection. Liquidated damages, if any are recognized at the time of recording the purchase of materials in books of accounts and the matter is considered settled by the management. Interest income is recognized on time proportion basis taking into account the amount outstanding and the rate applicable. Interest income is recognised using effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through expected life of the financial asset to the gross carrying amount of the financial asset. When calculating the effective interest rate, the company estimates the expected cash flows by considering all the contractual terms of the financial instrument but does not consider the expected credit losses. Dividend income is recognised, when the right to receive the dividend is established by the reporting date. Investment property rental income is recognised as revenue on accrual basis as per the terms of the underlying contract. Other operating income and misc. income are accounted on accrual basis as and when the right to receive arises. (g) Leases The Company’s leased asset classes primarily consist of leases for land, buildings, plant & machinery equipment’s, vehicles, way leave charges and hooking up charges. Under Ind AS-116, the Company assesses whether a contract contains a lease, at the inception of the contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether - the contract involves the use of identified asset; - the Company has substantially all of the economic benefits from the use of the asset through the period of lease; and - the Company has right to direct the use of the asset. The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS-116. Identification of a lease requires significant judgment. The Company uses significant judgement in assessing the lease term (including anticipated renewals/termination options) and the applicable discount rate. Company as a lessee The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. Certain lease arrangement includes the options to extend or terminate the lease before the end of the lease term. The right-of- use assets and lease liabilities includes these options when it is reasonably certain that the option will be exercised. The right-of-use asset is subsequently amortized using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics. Lease payments included in the measurement of the lease liability comprises of fixed payments, including in-substance fixed payments, amounts expected to be payable under a residual value guarantee and the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if Company changes its assessment of whether it will exercise a purchase, extension or termination option. st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 219 When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of- use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. Modifications to a lease agreement beyond the original terms and conditions are generally accounted for as a re-measurement of the lease liability with a corresponding adjustment to the ROU asset. Any gain or loss on modification is recognized in the Statement of Profit & Loss. However, the modifications that increase the scope of the lease by adding the right to use one or more underlying assets at a price commensurate with the stand-alone selling price are accounted for as a separate new lease. In case of lease modifications, discounting rates used for measurement of lease liability and ROU assets is also suitably adjusted. Lease liability and ROU lease asset have been separately presented in the Balance Sheet and lease payments have been classified as cash flows from financing activities. Short-term leases, low-value assets and others: The Company has elected not to recognise right-of-use assets and lease liabilities for short term leases that have a lease term of less than or equal to 12 months with no purchase option and assets with low value leases. The lease payments associated with leases assets that have lease period of 12 months or less, remaining lease period of 12 months or less as on transition date, rental charges of low value assets, component of taxes of ROU lease charges, non- lease component viz. manpower, fuel cost, repair and maintenance is recognised as an expense in the Statement of Profit and Loss over the lease term. The related cash flows are classified as operating activities. As a lessor Finance lease Leases for which the Company is a lessor is classified as finance or operating leases. When the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. All assets given on finance lease are shown as receivables at an amount equal to net investment in the lease. Principal component of the lease receipts is adjusted against outstanding receivables and interest income is accounted by applying the interest rate implicit in the lease to the net investment. Operating lease Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the term of the relevant lease. In case of modification of contractual terms, the same is accounted as a new lease, considering any prepaid or accrued lease payments relating to the original lease as part of the lease payments for the new lease. (h) Financial Instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial Asset Initial Recognition A financial asset or a financial liability is recognised in the balance sheet only when, the Company becomes party to the contractual provisions of the instrument. Initial Measurement At initial recognition, the Company measures a financial asset or financial liability at its fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability, except trade receivables that do not contain a significant financing component, are measured at transaction price. Subsequent Measurement For purpose of subsequent measurement, financial assets are classified into: • Financial assets measured at amortised cost; • Financial assets measured at fair value through profit or loss (FVTPL); and • Financial assets measured at fair value through other comprehensive income (FVTOCI). st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED The Company classifies its financial assets in the above mentioned categories based on: • The Company’s business model for managing the financial assets, and • The contractual cash flows characteristics of the financial asset. A financial assets is measured at amortised cost if both of the following conditions are met: • The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and • The contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding. Financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss. A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met: • The financial asset is held within a business model whose objective is achieved by both collecting the contractual cash flows and selling financial assets and • The assets contractual cash flows represent SPPI. A financial asset is measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income. In addition, the Company is elected to designate a financial asset, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ‘accounting mismatch’). Equity Investments: All equity investments in scope of Ind AS-109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the Company has made an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument by- instrument basis. The classification is made on initial recognition and is irrevocable. If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to statement of profit and loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity. Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Profit and Loss. De-recognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Company's balance sheet) when: 1. The contractual rights to the cash flows from the financial asset have expired, or 2. The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either i) The Company has transferred substantially all the risks and rewards of the asset, or ii) The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company’s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay. 220 st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 221 Embedded foreign currency derivative Embedded foreign currency derivatives are not separated from the host contract if they are closely related. Such embedded derivatives are closely related to the host contract, if the host contract is not leveraged, does not contain any option feature and requires payments in one of the following currencies: • the functional currency of any substantial party to that contract, • the currency in which the price of the related good or service that is acquired or delivered is routinely denominated in commercial transactions around the world, • a currency that is commonly used in contracts to purchase or sell non-financial items in the economic environment in which the transaction takes place (i.e. relatively liquid and stable currency). Foreign currency embedded derivatives which do not meet the above criteria are separated and the derivative is accounted for at fair value through profit and loss. The Company currently does not have any such derivatives which are not closely related. Impairment of Financial Assets The Company assesses impairment based on expected credit loss (ECL) model to the following: • Financial assets measured at amortised cost • Financial assets measured at fair value through other comprehensive income Expected credit losses are measured through a loss allowance at an amount equal to: • The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or • Full time expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument). The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables or contract revenue receivables. Under the simplified approach, the Company is not required to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs together with appropriate management estimates for credit loss at each reporting date, right from its initial recognition. The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivable and is adjusted for forward looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the statement of profit and loss. This amount is reflected under the head ‘other expenses’ in the statement of Profit and Loss. The balance sheet presentation for various financial instruments is described below: • Financial assets measured as at amortised cost and contractual revenue receivables - ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the company does not reduce impairment allowance from the gross carrying amount. • Financial assets measured at FVTOCI - Since financial assets are already reflected at fair value, impairment allowance is not further reduced from its value. Rather, ECL amount is presented as accumulated impairment amount in the OCI. For assessing increase in credit risk and impairment loss, the Company combines financial instruments on the basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enable significant increases in credit risk to be identified on a timely basis. The Company does not have any purchased or originated credit-impaired (POCI) financial assets, i.e., financial assets which are credit impaired on purchase/ origination. Financial Liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss for loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, and financial liabilities measured at amortised value as appropriate. All financial liabilities are recognised initially at fair value and, in case of loans and borrowings and payables, net of directly attributable transaction costs. The Company’s financial liabilities include trade and other payables, loan and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments. st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Subsequent measurement • Financial liabilities measured at amortised cost • Financial liabilities subsequently measured at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. Gains or losses on liabilities held for trading are recognised in the profit or loss. Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS-109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to Profit and Loss. However, the Company is transferred the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The Company has not designated any financial liability as at fair value through profit and loss. Financial guarantee contracts Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS-109 and the amount recognised less cumulative amortisation. Loan and borrowings After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate (EIR) method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss. Trade and other payables These amounts represent liability for goods and services provided to the Company prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. Lease liabilities The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Subsequently, the lease liability is measured at amortised cost using the effective interest rate method. Derecognition A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss. (i) Inventories Inventory of Gas (including inventory in pipeline and CNG cascades) is valued at lower of cost and net realizable value. Cost is determined on weighted average cost method. Volume of gas in cascades and pipeline are estimated on volumetric basis. Stores, spares and consumables are valued at lower of cost and net realizable value. Cost is determined on moving weighted average basis (net off provision for diminution in value, if any). Inventories of Project materials (capital Inventory) are valued at cost on moving weighted average basis (net off provision for diminution in value, if any). 222 st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 223 (j) Offsetting financial instruments Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty. (k) Fair Value Measurement The Company measures certain financial instruments at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability, or • In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as under, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities. • Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. • Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. The Company's management determines the policies and procedures for both recurring fair value measurement, such as unquoted financial assets measured at fair value, and for non-recurring measurement, such as assets held for distribution in discontinued operations. The management comprises of the Managing Director and Chief Financial Officer. External valuers are involved for valuation of significant assets, such as unquoted financial assets. Involvement of external valuers is decided upon annually and approval by the management. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. Valuers are normally rotated every three years. The management decides, after discussions with the Company's external valuers, which valuation techniques and inputs to use for each case. At each reporting date, the management analyses the movements in the values of assets and liabilities which are required to be re-measured or re-assessed as per the Company’s accounting policies. For this analysis, the management verifies the major inputs applied in the latest valuation by agreeing the information in the valuation. The management, in conjunction with the Company's external valuers, also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable. For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above. This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes. (Refer note 45) 1. Disclosures for valuation methods, significant estimates and assumptions. 2. Quantitative disclosures of fair value measurement hierarchy. 3. Investment in unquoted equity shares. 4. Financial instruments (including those carried at amortised cost). st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED (l) Employee Benefits Employees Benefits are provided in the books as per Ind AS -19 on “Employee Benefits” in the following manner: A. Post-employment benefit plans I. Defined Contribution Plan Contribution towards provident fund for eligible employees are accrued in accordance with applicable statutes and deposited with the regulatory provident fund authorities (Government administered provident fund scheme). The Company does not carry any other obligation apart from the monthly contribution. The Company contributes under the National Pension System scheme for eligible employees at a rate specified in the rules of the scheme and deposited with concerned agency/authority. The Company’s contribution is recognised as an expense in the statement of Profit and Loss during the period in which the employee renders the related service. II. Defined benefit plan The company provides for gratuity, a defined benefit plan covering eligible employees in accordance with the Payment of Gratuity Act, 1972, through an approved Gratuity Fund. The Gratuity Fund is separately administered through a Trust/Scheme. Contributions in respect of gratuity are made to the approved Gratuity Fund. The Company's liability is actuarially determined by qualified actuary (using the Projected Unit Credit method) at the end of each year and is recognized in the Balance sheet as reduced by the fair value of Gratuity Fund. Actuarial losses/ gains are recognized in the Statement of Other Comprehensive Income in the year in which they arise. III. Long term employee benefits The liability in respect of accrued leave benefits which are expected to be availed or en-cashed beyond 12 months from the end of the year, is treated as long term employee benefits. The Company's liability for leave benefits are actuarially determined by qualified actuary at balance sheet date by using the Projected Unit Credit method. Actuarial losses/ gains are recognized in the Statement of Profit and Loss in the year in which they arise. B. Other Long Term Service benefits - Long Service Award (LSA): On completion of specified period of service with the company, employees are rewarded with Cash Reward of different amount based on the duration of service completed. The Company's liability is actuarially determined by qualified actuary at balance sheet date at the present value of the amount payable for the same. Actuarial losses/ gains are recognized in the Statement of profit and loss in the year in which they arise. C. Short term employee benefits The undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered by employees is recognized during the period when the employee renders the services. Short term employee benefits includes salary and wages, bonus, incentive, ex-gratia, death compensation and also includes accrued leave benefits, which are expected to be availed or en-cashed within 12 months from the end of the year. (m) Taxation Income tax expenses comprises current tax (i.e. amount of tax for the period determined in accordance with the Income Tax Law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period). Income tax expenses are recognised in statement of profit or loss except tax expenses related to items recognised directly in reserves (including statement of other comprehensive income) which are recognised with the underlying items. Income Taxes The income tax expense or credit for the period is the tax payable on the current period's taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. 224 st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period i.e. as per the provisions of the Income Tax Act, 1961, as amended from time to time. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation including amount expected to be paid / recovered for uncertain tax positions. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting advance tax paid and income tax provision arising in the same tax jurisdiction for relevant tax paying units and where the Company is able to and intends to settle the asset and liability on a net basis. Deferred Taxes Deferred tax is provided in full on temporary difference arising between the tax bases of the assets and liabilities and their carrying amounts in financial statements at the reporting date. Deferred tax are recognised in respect of deductible temporary differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods., the carry forward of unused tax losses and the carry forward of unused tax credits. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax assets are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries, branches and associates and interest in joint arrangements where it is not probable that the differences will reverse in the foreseeable future and taxable profit will not be available against which the temporary differences can be utilised. Deferred tax liabilities are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries, branches and associates and interest in joint arrangements where it is probable that the differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the Company has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Company measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty. (n) Provisions, Contingent Liabilities and Contingent Assets Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provision for contractual obligation is disclosed based on management's assessment of the probable outcome with reference to the available information supplemented by experience of similar transactions. When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement. Provision in respect of loss contingencies relating to claims, litigation, assessment, fines, penalties etc. are recognised when it is probable that a liability has been incurred and the amount can be estimated reliably. 225 st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 226 Provisions are not recognised for future operating losses. Provisions for restructuring are recognised by the Company when it has developed a detailed formal plan for restructuring and has raised a valid expectation that the Company will carry out the restructuring by starting to implement the plan or announcing its main features to those affected by it. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Provisions are measured at management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period and are not discounted to present value. The estimates of outcome and financial effect are determined by the judgment of the management, supplemented by experience of similar transactions and, in some cases, reports from independent experts. The measurement of provision for restructuring includes only direct expenditures arising from the restructuring, which are both necessarily entailed by the restructuring and not associated with the ongoing activities of the Company. Contingent liability is disclosed in the case of: 1. A present obligation arising from the past events, when it is not probable that an outflow of resources will be required to settle the obligation; 2. A present obligation arising from the past events, when no reliable estimate is possible; 3. A possible obligation arising from the past events, unless the probability of outflow of resources is remote. Contingent liabilities are not provided for and if material, are disclosed by way of notes to financial statements. A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. Contingent assets are not recognised in financial statements since this may result in the recognition of income that may never be realised. However, Contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs. A contingent asset is disclosed by way of notes to financial statements, where an inflow of economic benefits is probable. Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date. (o) Exceptional Items Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the Company is such that its disclosure improves the understanding of the performance of the Company, such income or expense is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the financial statements. (p) Prior Period Adjustments and Pre-paid Expenses. Income / expenditure in aggregate pertaining to prior year(s) above the threshold limit are corrected retrospectively. Prepaid expenses up to threshold limit in each case, are charged to revenue as and when incurred. (q) Rounding off All amounts disclosed / presented in Indian Rupees (INR) in the financial statements and notes have been rounded off to the nearest two decimals of Crores as per the requirements of Schedule III, unless otherwise stated. (r) Recent accounting pronouncements Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies st (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31 March, 2025, MCA has notified Ind AS-117 Insurance Contracts and amendments to Ind AS-116 – Leases, relating to sale and leaseback transactions, applicable to st the Company w.e.f. 1 April, 2024. The Company has reviewed the new pronouncements and based on its evaluation has determined that it does not have any significant impact in its financial statements. st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 227 2024-2025 th 13 ANNUAL REPORT Note 3.1.1 - Impairment of Assets : There is no impairment of any assets in terms of Ind AS-36 on “Impairment of Assets”. Based on the review, the management is of the opinion that there are no impairment indicators that necessitate any adjustments to the carrying value of PPE. Note 3.1.2 - The company has not carried out revaluation of PPE. Note 3.1.3 - The company has elected to measure all its PPE at the previous GAAP carrying amount i.e. March 31, 2015 as its deemed cost on the date of transition to Ind AS st i.e. 1 April, 2015. Note 3.1.4 - Refer to note 43 for disclosure of contractual commitments for the acquisition of property, plant and equipment. Note 3.1.5 - There is no restriction on the title of property, plant and equipments. Note 3.1.6 - "Other adjustment" in current financial year 2024-25 includes change in classification from freehold land and building to Investment Property ` 8.84 Crores and ` 2.61 crores respectively. (Refer Note 4) Note 3.1.7 - "Other adjustment" in current financial year 2024-25 includes change in classification from Plant and Equipment to ROU (Lease)Assets- Hooking up charges ` 5.10 crores(net). (Refer Note 5.3.3) st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 3.1 PROPERTY, PLANT AND EQUIPMENT (PPE) st Property, Plant and Equipment (PPE) as at 31 March 202 ( in rores), 5 ` C Freehold Land 368.05 1.17 - (8.84) 360.38 - - - - - 360.38 368.05 Buildings 247.85 6.35 0.83 (2.61) 250.76 42.86 4.79 0.03 (0.63) 46.99 203.77 204.99 Plant and Equipments 9,386.20 743.54 6.33 (5.98) 10,117.43 3,008.65 427.14 4.85 (0.88) 3,430.06 6,687.37 6,377.55 Furniture and Fixture 21.55 2.07 0.37 - 23.25 15.34 1.16 1.13 - 15.37 7.88 6.21 Computer Equipment 51.01 1.51 0.07 - 52.45 41.33 3.34 0.06 - 44.61 7.84 9.68 Office Equipments 23.99 2.09 0.79 - 25.29 19.40 1.49 (0.06) - 20.95 4.34 4.59 Vehicles 8.32 - 4.01 - 4.31 7.52 0.11 3.76 - 3.87 0.44 0.80 Books and Periodicals 0.10 - - - 0.10 0.10 - - - 0.10 - - Total PPE 10,107.07 756.73 12.40 (17.43) 10,833.97 3,135.20 438.03 9.77 (1.51) 3,561.95 7,272.02 6,971.87 Gross Block Particulars Depreciation and Amortization st As at 31 March, 2024 st As at 31 March, 2025 st As at 31 March, 2025 Other Adjustments For the year st As at 1 April, 2024 st As at 31 March, 2025 Other Adjustments Disposal/ Adjustment Addition Disposal/ Adjustment Net Block st Property, Plant and Equipment (PPE) as at 31 March, 2024 ( in Crores)` st As at 1 April, 2024 Freehold Land 366.24 1.81 - - 368.05 - - - - - 368.05 366.24 Buildings 231.63 16.22 - - 247.85 37.49 5.37 - - 42.86 204.99 194.14 Plant and Equipments 8,629.31 764.24 7.35 - 9,386.20 2,613.91 400.37 5.63 - 3,008.65 6,377.55 6,015.40 Furniture and Fixture 20.93 0.74 0.12 - 21.55 14.17 1.27 0.10 - 15.34 6.21 6.76 Computer Equipment 50.35 1.02 0.36 - 51.01 37.09 4.75 0.51 - 41.33 9.68 13.26 Office Equipments 22.87 1.36 0.24 - 23.99 18.00 1.44 0.04 - 19.40 4.59 4.87 Vehicles 8.62 - 0.30 - 8.32 7.47 0.33 0.28 - 7.52 0.80 1.15 Books and Periodicals 0.10 - - - 0.10 0.10 - - - 0.10 - - Total PPE 9,330.05 785.39 8.37 - 10,107.07 2,728.23 413.53 6.56 - 3,135.20 6,971.87 6,601.82 Gross Block Particulars Depreciation and Amortization st As at 31 March, 2023 st As at 31 March, 2024 st As at 31 March, 2024 Other Adjustments For the year st As at 1 April, 2023 st As at 31 March, 2024 Other Adjustments Disposal/ Adjustment Addition Disposal/ Adjustment Net Block st As at 1 April, 2023
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GUJARAT GAS LIMITED 228 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Reason for not being held in the name of the Company Disputed?Property held since which date Title deeds held in the name of Gross carrying value as st on 31 March, 2024 Gross carrying value as st on 31 March, 2025 Description of item of property Relevant line item in the Balance sheet Property, Plant & Equipme nt - Freehold Land Land-Survey No. 306- A-/1 paiki 3, Post- Hazira, Taluka Choryasi, District-Surat (13,057 Sq. Mtrs) Land-Survey No. 150 Mora village District- Surat (13,557 Sq. Mtrs) Survey No. 896 and 913/2 Vil Ichchhapur Hazira 6,559 Sq. Mtrs ` 15.88 crores ` 1/-. ` 21.35/- crores ` 15.88 crores ` 1/-. ` 21.35/- crores Government of Gujarat Government of Gujarat Current year : Erstwhile entity GSPC Gas Co. Ltd, (Previous year: Erstwhile entity GSPC Gas Co. Ltd) Promoter Promoter Current year: Erstwhile entity (Previous year: Erstwhile entity) 01-05-1999 05-04-2002 01-04-2006 The legal dispute between the Government and Hazira Apbal Ganotiya Sahakari Mandali Ltd.(seller) regarding transfer or sale of land to private parties (including GGL) without necessary permission and breached the condition of utilization of land and in one of the order th issued by Deputy Collector Choryasi Prant Surat dated 7 August, 2009 clearly states that there is no breach of condition in case of GGL and land owners as Government has given permission to allocate land to Gujarat Gas subject to necessary payment of premium etc. Land belongs to the Government and allotted under Navi sharat to private parties (seller) from whom GGL brought the land and later on land was made khalsa on 18.04.2002. In April 2010, Mamlatdar Office Choryasi had given revised letter to submit consent for making the 2.5 times premium of the value to regularize the land to Gujarat Gas that may be decided by the District Valuation Committee. Current year :- Transfer of name in favour of the Company is to be completed (Previous year :- Transfer of name in favour of the Company is to be completed) Yes Yes No Whether title deed holder is a promoter, director or relative of promoter/ director or employee of promoter/director Note 3.1PROPERTY, PLANT AND EQUIPMENT (PPE) (continued…..) Note 3.1.8 - Details of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favor of the lessee) whose title deeds are not held in the name of the Company. Title Deeds of Immovable Properties: 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Note 3.2 CAPITAL WORK IN PROGRESS ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Capital Inventory 341.80 371.75 Capital Work-in-Progress (project under construction) 482.01 527.81 Total 823.81 899.56 The Company is engaged in the business of City Gas Distribution (CGD) in India which involves distribution of gas from sources of supply to the end user customers. The CGD project is designed considering demand, supply and future requirements based on the facilities envisaged for CGD network in authorised areas for 25 years on the basis of authorization from Petroleum and Natural Gas Regulatory Board (PNGRB) to lay, build, operate or expand city or local natural gas distribution network. On the basis of demand projections, the CGD network is planned. Project execution plans are modulated on the basis of continuous ongoing expansion and all the projects are executed and expanded on ongoing basis as per rolling annual plan. Hence, it is considered that there is no project whose completion is overdue or has exceeded its cost compared to its original plan. Note 3.2.1 Ageing Schedule st As on 31 March, 2025: ( in Crores)` st As on 31 March, 2024: ( in Crores)` st Notes to Consolidated financial statements for the year ended 31 March, 2025 229 Amount for a period of Capital work in progress Less than 1-2 Years 2-3 Years More than Total 1 Year 3 Years Projects in Progress 565.90 134.15 55.51 67.79 823.35 Projects temporarily suspended 0.03 0.01 0.01 0.41 0.46 Total 565.94 134.16 55.52 68.19 823.81 Amount for a period of Capital work in progress Less than 1-2 Years 2-3 Years More than Total 1 Year 3 Years Projects in Progress 637.18 158.98 52.07 49.57 897.80 Projects temporarily suspended 0.05 0.72 0.50 0.49 1.76 Total 637.23 159.70 52.57 50.06 899.56 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 230 2024-2025 th 13 ANNUAL REPORT st Notes to Consolidated financial statements for the year ended 31 March, 2025 st st st st st st As at 1 Addition / Disposal As at 31 As at 1 For the Disposal Other As at 31 As at 31 As at 31 April, 2024 Adjustment* March, 2025 April, 2024 Year Adjustment* March, 2025 March, 2025 March, 2024 Freehold land 1.30 8.84 - 10.14 - - - - - 10.14 1.30 Building - 2.61 - 2.61 - 0.06 - 0.63 0.69 1.92 - Total Investment Property 1.30 11.45 - 12.75 - 0.06 - 0.63 0.69 12.06 1.30 Gross Block Particulars Amortization Net Block * Refer Note 3.1.6 for assets reclassed from Property, Plant and Equipment (PPE) to Investment property during the current year. st Investment Property as at 31 March, 2024 ( in Crores) ` st Investment Property as at 31 March, 2025 ( in Crores)` Note 4. INVESTMENT PROPERTY st st st st st st As at 1 Addition / Disposal As at 31 As at 1 For the Disposal Other As at 31 As at 31 As at 31 April, 2023 Adjustment March, 2024 April, 2023 Year Adjustment March, 2024 March, 2024 March, 2023 Freehold land 1.30 - - 1.30 - - - - - 1.30 1.30 Building - - - - - - - - - - - Total Investment Property 1.30 - - 1.30 - - - - - 1.30 1.30 Gross Block Particulars Amortization Net Block During the current financial year 2024-25, the Company has received ` 0.58 Crores for rental income from tenant towards previous year. Note 4.2 Contractual Obligations The Company has no contractual obligations to purchase, construct or develop investment property or for its repair, maintenance or enhancements. Note 4.3 Leasing Arrangements The investment properties are leased to tenants under long term operating leases with rentals payable monthly / annually as per the terms agreed / the agreement. Note 4.4 Fair Value ` ( in Crores) Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Rental Income 1.31 - Direct operating expenses for the property that generated rental income - - Net Income 1.31 - st st Particulars As at 31 As at 31 March, 2025 March, 2024 Investment Properties Freehold land 22.70 9.00 Building 1.85 - Total 24.54 9.00 Estimation of Fair Value The fair value of investment property is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The Company obtains independent valuations for its investment properties once in every three to five years interval. Note 4.5 There is no restriction on the title and realisability of investment property or remittance of income and proceeds of disposals. Note 4.6 The title deeds of all the immovable properties(s) (which are included under the head ‘investment properties’) are held in the name of the company. Note 4.1 Amount recognised in profit and loss for investment properties ( in Crores)`
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GUJARAT GAS LIMITED 231 2024-2025 th 13 ANNUAL REPORT st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 5.1.1. Right-of-Way (ROW) Permissions: The useful lives of Right-of-Way (ROW) Permissions as estimated by the management for the amortization is 30 years. The useful lives of ROW Permission are inextricably linked with the pipeline networks being laid, which corresponds with the useful life of 30 years of Plant and Machinery - Pipelines network for which the Right-of-Way (ROW) Permission has been obtained. The Useful life of 30 years of the Right-of-Way (ROW) Permissions is dependent on the useful life of Plant and Machinery - Pipelines i.e. Pipeline network of the company. Note 5.1.2 Right-of-Use (ROU): The company acquires the ‘Right-of-Use’ (hereinafter referred to as ‘ROU’) for the purpose of laying and maintenance of the underground pipeline and vests in the company and the company has the right-to-use the same in the manner for which it has been acquired. The acquisition of ROU is governed by the legal process as per the Act, the company has paid the compensation /consideration of the ROU -land determined by the competent authority under the Act and any person authorised by the company, have unrestricted right of entry and lay pipeline or do any other act necessary for the purpose of laying of pipeline. The company has disclosed the cost incurred for acquisition of ROU as ‘Right-of-use’ in the Intangible Asset schedule. Since the ROU does not have a defined life, it is perpetual in nature. Accordingly based on requirements of Ind AS-38 – Intangible Assets, the same is tested for impairment and not amortised. Note 5.1.3 Impairment of Assets: There is no impairment of any assets in terms of Ind AS-36 on “Impairment of Assets”. Based on the review, the management is of the opinion that there are no impairment indicators that necessitate any adjustments to the carrying value of intangible assets. Note 5.1.4 Refer to note 43 for disclosure of contractual commitments for the acquisition of intangible assets. Note 5.1.5 The company has not carried out revaluation of Intangible assets. sr Note 5.1.6 The company has elected to measure all its Intangible assets at the previous GAAP carrying amount i.e. 31 March, 2015 as its deemed cost on the date of transition to Ind AS st i.e. 1 April, 2015. Note 5.1.7 There is no restriction on the title of intangible assets. Note 5.1.8 "Other adjustment" in current financial year 2024-25 includes change of classification from ROW Permissions to ROU Assets (Lease) ` 30.29 crores(net). ( Refer Note 5.3.3) st Intangible assets as at 31 March, 2024 ( in Crores) ` st Intangible assets as at 31 March, 2025 ( in Crores)` Note 5.1 INTANGIBLE ASSETS st st st st st st As at 1 Addition Disposal / Other As at 31 As at 1 For the Disposal / Other As at 31 As at 31 As at 31 April, 2024 Adjustment Adjustment March, 2025 April, 2024 Year Adjustment Adjustment March, 2025 March, 2025 March, 2024 ROW Permissions 611.42 56.07 0.43 (37.41) 629.65 110.42 19.99 0.04 (7.12) 123.25 506.40 501.00 ROU 14.55 - - - 14.55 - - - - - 14.55 14.55 Software and other Intangibles 119.98 2.97 - - 122.95 98.16 6.65 - - 104.81 18.14 21.82 Total Intangible Assets 745.95 59.04 0.43 (37.41) 767.15 208.58 26.64 0.04 (7.12) 228.06 539.09 537.37 Gross Block Particulars Amortization Net Block st st st st st st As at 1 Addition Disposal / Other As at 31 As at 1 For the Disposal / Other As at 31 As at 31 As at 31 April, 2023 Adjustment Adjustment March, 2024 April, 2023 Year Adjustment Adjustment March, 2024 March, 2024 March, 2023 ROW Permissions 527.12 84.30 - 611.42 91.70 18.72 - - 110.42 501.00 435.42 ROU 14.55 - - - 14.55 - - - - - 14.55 14.55 Software and other Intangibles 115.73 4.27 0.02 - 119.98 89.54 8.64 0.02 - 98.16 21.82 26.19 Total Intangible Assets 657.40 88.57 0.02 - 745.95 181.24 27.36 0.02 - 208.58 537.37 476.16 Gross Block Particulars Amortization Net Block
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GUJARAT GAS LIMITED 232 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Projects in Progress 4.71 2.46 1.38 6.28 14.83 Projects temporarily suspended 0.01 - 0.09 0.17 0.27 Total 4.72 2.46 1.47 6.45 15.10 Projects in Progress 6.11 3.48 3.28 5.03 17.90 Projects temporarily suspended - 0.09 0.02 0.43 0.54 Total 6.11 3.57 3.30 5.46 18.44 Intangible assets under development Intangible assets under development Amount for a period of Amount for a period of Total Total More than 3 Years More than 3 Years 2-3 Years 2-3 Years 1-2 Years 1-2 Years Less than 1 Year Less than 1 Year Note 5.2 INTANGIBLE ASSETS UNDER DEVELOPMENT (` in Crores) st st Particulars As at 31 March, 2025 As at 31 March, 2024 Right-of-Way (ROW) Permissions 14.97 17.53 Right-of-Use (ROU) - 0.00 Software 0.13 0.91 Total 15.10 18.44 Note 5.2.1 Ageing Schedulest As on 31 March, 2025: ( in Crores) ` st As on 31 March, 2024: ( in Crores) ` Figures INR 0.00 denotes amount less than INR 50,000/-. The Company is engaged in the business of City Gas Distribution (CGD) in India which involves distribution of gas from sources of supply to the end user customers. The CGD project is designed considering demand, supply and future requirements based on the facilities envisaged for CGD network in authorised areas for 25 years on the basis of authorization from Petroleum and Natural Gas Regulatory Board (PNGRB) to lay, build, operate or expand city or local natural gas distribution network. On the basis of demand projections, the CGD network is planned. Project execution plans are modulated on the basis of continuous ongoing expansion and all the projects are executed and expanded on ongoing basis as per rolling annual plan. Hence, it is considered that there is no project whose completion is overdue or has exceeded its cost compared to its original plan. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 233 Note 5.3.1 - The company has not carried out revaluation of ROU lease. Note 5.3.2 - The Company does not have any immovable property whose title deeds are not held in the name of the Company except those held under lease arrangements for which lease agreements are duly executed in the favour of the Company. st Note 5.3.3 - Additions to Hooking up charges & Way Leave charges in current year includes ` 116.54 crores & ` 7.03 crores respectively reclassified on 1 April, 2024 from prepaid expenses ` 88.18 crores, Intangible assets ` 30.29 crores and Property, Plant and Equipment (PPE) ` 5.10 crores. The effect of the same is not significant. st Right-of-use assets (Leases) as at 31 March, 2024 ( in Crores) ` st As at 31 March, 2024 st As at 31 March, 2025 st As at 31 March, 2025 For the yearAdditionsst As at 1 April, 2024 st As at 1 April, 2024 st As at 31 March, 2025 Other Adjustments/ Reassessment Disposal/ Adjustment Disposal/ Termination Adjustment Land 165.38 2.26 2.55 - 165.09 21.19 5.51 2.55 24.15 140.94 144.19 Buildings 19.96 9.52 0.36 (0.02) 29.10 3.34 3.47 0.36 6.45 22.65 16.62 Plant and Equipments 31.31 10.66 - - 41.97 10.16 2.27 - 12.43 29.54 21.15 Vehicles 122.91 10.49 - (0.14) 133.26 52.63 24.34 - 76.97 56.29 70.28 Hooking up - 134.60 - - 134.60 - 7.08 - 7.08 127.52 - Way Leave - 10.67 1.72 - 8.95 - 3.24 1.72 1.52 7.43 - Total 339.56 178.20 4.63 (0.16) 512.97 87.32 45.91 4.63 128.60 384.37 252.24 Gross Block Particulars Amortization Net Block st Notes to Consolidated financial statements for the year ended 31 March, 2025 st Right-of-use assets (Leases) as at 31 March, 2025 (` in Crores) Note 5.3 RIGHT-OF-USE ASSETS st As at 31 March, 2023 st As at 31 March, 2024 st As at 31 March, 2024 For the yearAdditionsst As at 1 April, 2023 st As at 1 April, 2023 st As at 31 March, 2024 Other Adjustments/ Reassessment Disposal/ Adjustment Disposal/ Termination Adjustment Land 164.02 2.13 0.70 (0.07) 165.38 16.63 5.15 0.59 21.19 144.19 147.39 Buildings 7.73 14.69 2.46 - 19.96 3.26 2.54 2.46 3.34 16.62 4.47 Plant and Equipments 31.31 - - - 31.31 8.07 2.09 - 10.16 21.15 23.24 Vehicles 113.69 11.97 1.84 (0.91) 122.91 30.40 23.63 1.40 52.63 70.28 83.29 Total 316.75 28.79 5.00 (0.98) 339.56 58.36 33.41 4.45 87.32 252.24 258.39 Gross Block Particulars Amortization Net Block 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 234 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 6 NON-CURRENT FINANCIAL ASSETS : INVESTMENT IN EQUITY ACCOUNTED INVESTEE ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Investments in equity shares carried at cost (fully paid) Unquoted Equity Shares 43,75,000 (Previous year: 43,75,000) Fully Paid up Equity Shares of ` 10 each of 0.03 0.03 Guj Info Petro Limited (Associate company) Add: Share of profit 37.67 34.86 Less: Dividend received (1.68) (1.64) Total 36.02 33.25 Extent of Holding 49.94% 49.94% Place of business/ country of incorporation India India Description of method used to account for the investments At Cost At Cost (Cost or fair value) Other information:- (a) Aggregate amount of quoted investments and market value thereof Nil Nil (b) Aggregate amount of unquoted investments 36.02 33.25 (c) Aggregate amount of impairment in value of investments Nil Nil Note 7 NON-CURRENT FINANCIAL ASSETS : INVESTMENTS ( in Crores)` OTHER INFORMATION ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 st st Particulars As at 31 As at 31 March, 2025 March, 2024 Investments in equity shares accounted through OCI (fully paid) Unquoted Equity Shares (a) 2,00,00,000 (Previous year: 2,00,00,000) Fully Paid Up Equity Shares of 35.20 35.04 ` 1 each of Gujarat State Petroleum Corporation Limited (b) 10,00,00,000 (Previous year: 10,00,00,000) Fully Paid Up Equity Shares of 100.40 100.00 ` 10 each of GSPC LNG Limited Total 135.60 135.04 (a) Aggregate amount of quoted investments and market value thereof Nil Nil (b) Aggregate amount of unquoted investments 135.60 135.04 (c) Aggregate amount of impairment in value of investments Nil Nil Note 8 NON-CURRENT FINANCIAL ASSETS : LOANS ( in Crores)` Refer Note no. 45 for financial Instruments, fair value and measurements st st Particulars As at 31 As at 31 March, 2025 March, 2024 Loan to Employees [Unsecured, considered good] 1.32 2.22 Total 1.32 2.22 Refer Note 45 for financial Instruments, fair value and measurements Refer Note 51 for Loans to Promoters, Directors, KMPs and Related parties 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 235 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 11 INVENTORIES ( in Crores)` For Valuation- Refer note 2(i) of Material Accounting Policies st st Particulars As at 31 As at 31 March, 2025 March, 2024 Natural Gas 20.55 16.67 Stores and spares 40.84 41.65 Deferred delivery-Natural Gas (Goods in transit) 0.47 0.35 Total 61.86 58.67 Note 10 OTHER NON-CURRENT ASSETS ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Capital advances Capital advances [Unsecured, considered good] 72.14 111.21 Capital advances [Credit Impaired] 28.80 7.33 100.94 118.54 Less: Allowance for bad and doubtful (28.80) (7.33) Total 72.14 111.21 Advance payment of income tax - Non-current [Net of provisions] 18.54 40.54 (Refer Note 30) Prepaid Expenses* 39.03 129.85 Balances with Government authorities for Litigations 18.48 18.47 Balances with Government authorities - VAT credit refundable 214.68 205.12 Deferred employee benefit cost 4.17 1.74 Other non-current assets 0.07 0.07 Total 367.11 507.00 Refer Note 48 for Related party balances st *Refer Note 5.3.3 for reclassification of Hooking up charges & Way Leave charges on 1 April 2024 from prepaid expenses to ROU Lease assets. Note 9 NON- CURRENT FINANCIAL ASSETS : OTHERS ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Security Deposits (Refer Note 9.1) To Related Parties [Unsecured, considered good] 139.11 117.74 To Others [Unsecured, considered good] 63.87 75.33 To Others [Credit impaired] 7.33 9.27 210.31 202.34 Less: Allowance for bad and doubtful (7.33) (9.27) Less :Security Deposits adjustment for amortised cost (104.51) (88.97) Total Security Deposits 98.47 104.10 Receivable from employee [Unsecured, considered good] 0.95 0.37 Other Receivable [Considered Doubtful] 0.36 0.36 Less: Allowance for bad and doubtful (0.36) (0.36) Total 99.42 104.47 Note no. 9.1: The Company has given refundable security deposits in form of fixed bank deposits to various project authorities to be held in their name and custody. It will be refunded after satisfactory completion of work. The company has therefore shown these fixed bank deposits amounting ` 38.92 crores (Previous Year ` 49.28 crores) and interest accrued on such fixed bank deposits ` 9.72 crores (Previous Year ` 9.64 crores), till they are in custody with project authorities as “Security Deposits” under the Note- “Non- Current Financial Assets : Others” in the balance sheet. Refer Note 45 for financial Instruments, fair value and measurements Refer Note 48 for Related party balances 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 236 Note 12.1 Trade Receivable ageing schedule:st As on 31 March, 2025: ( in Crores)` Particulars Outstanding for following period from due date of payment TotalMore than 3 years 2-3 years1-2 years6 months- 1 year Less than 6 months Not DueUnbilled (i) Undisputed Trade Receivables - - 708.37 134.95 6.24 7.05 4.47 0.87 861.95 Considered good (ii) Undisputed Trade Receivables - - - - - - - - - which have significant increase in credit risk (iii) Undisputed Trade Receivables / 0.25 1.00 3.98 2.79 3.61 1.32 1.11 14.06 unbilled - Credit Impaired (iv) Disputed Trade Receivables - - 0.06 2.60 1.02 2.06 2.07 4.19 12.00 Considered Good (v) Disputed Trade Receivables - which - - - - - - - - have significant increase in credit risk (vi) Disputed Trade Receivables - - - 0.27 1.24 2.98 2.25 4.19 10.93 Credit Impaired (vii) Unbilled- Considered good 150.02 - - - - - - 150.02 Total 150.27 709.43 141.80 11.29 15.70 10.11 10.36 1,048.96 Less: Allowance for bad and doubtful (viii) Allowance for doubtful - (0.25) (1.00) (3.98) (2.79) (3.61) (1.32) (1.11) (14.06) Undisputed Trade receivables (ix) Allowance for doubtful - - - (0.27) (1.24) (2.98) (2.25) (4.19) (10.93) Disputed Trade receivables Net Trade Receivables 150.02 708.43 137.55 7.26 9.11 6.54 5.06 1,023.97 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 12 CURRENT FINANCIAL ASSETS : TRADE RECEIVABLES ( in Crores)` st s Particulars As at 31 As at 31 March, 2025 March, 2024 Trade Receivables Trade Receivables considered good - Secured 217.14 203.49 Trade Receivables considered good - Unsecured (Backed by Bank guarantee) 350.67 420.40 Trade Receivables considered good - Unsecured (Others) 306.14 266.79 Trade Receivables / Unbilled - credit impaired 24.99 21.29 Unbilled- Considered good 150.02 139.16 Total 1,048.96 1,051.13 Less: Allowance for bad and doubtful 24.99 21.29 Total 1,023.97 1,029.84 Refer Note 45 for financial Instruments, fair value and measurements Refer Note 48 for Related party balances 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 237 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Particulars Outstanding for following period from due date of payment TotalMore than 3 years 2-3 years1-2 years6 months- 1 year Less than 6 months Not DueUnbilled (i) Undisputed Trade Receivables - - 729.25 89.26 10.79 41.60 9.60 0.73 881.24 Considered good (ii) Undisputed Trade Receivables - - - - - - - - - which have significant increase in credit risk (iii) Undisputed Trade Receivables / 0.27 2.25 3.57 2.35 2.00 0.68 0.91 12.02 Unbilled - Credit Impaired (iv) Disputed Trade Receivables - - 0.04 1.71 0.95 2.06 1.03 3.64 9.44 Considered Good (v) Disputed Trade Receivables - which - - - - - - - - have significant increase in credit risk (vi) Disputed Trade Receivables - - 0.00 0.24 1.32 2.36 1.12 4.23 9.27 Credit Impaired (vii) Unbilled- Considered good 139.16 - - - - - - 139.16 Total 139.43 731.54 94.79 15.41 48.02 12.44 9.51 1,051.13 Less: Allowance for bad and doubtful (viii) Allowance for doubtful - (0.27) (2.25) (3.57) (2.35) (2.00) (0.68) (0.91) (12.02) Undisputed Trade receivables (ix) Allowance for doubtful - - (0.00) (0.24) (1.32) (2.36) (1.12) (4.23) (9.27) Disputed Trade receivables Net Trade Receivables 139.16 729.29 90.97 11.74 43.67 10.64 4.37 1,029.84 Note 12.1 Trade Receivable ageing schedule ( continued…..): st As on 31 March, 2024: ( in Crores)` Note 13 CURRENT FINANCIAL ASSETS : CASH AND CASH EQUIVALENTS ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 (a) Balance with banks Balance in bank account 86.83 117.52 (b) Balance with financial Institutions Deposits with original maturity of three months or less Intercorporate deposits/ Liquid deposits with Gujarat State Financial Services Ltd 236.13 795.73 (c) Cash on hand 3.90 2.73 Total 326.86 915.98 Note 14 CURRENT FINANCIAL ASSETS : OTHER BANK BALANCES ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Earmarked balances in unclaimed dividend accounts (Refer Note 14.1) 2.20 1.64 Earmarked balances in CSR account 22.96 8.48 Margin money or security against borrowings, guarantees & Other obligations 7.38 0.02 Total 32.54 10.14 Note 14.1 The balances in dividend accounts are not available for use by the Company and the money remaining unpaid will be deposited in the Investor Education and Protection Fund after the expiry of 7 years from the date they became due for payment. No amount is due at the end of the period for credit to Investor Protection and Education fund. Refer Note 45 for financial Instruments, fair value and measurements Refer Note 45 for financial Instruments, fair value and measurements Refer Note 48 for Related party balances 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 238 Figures INR 0.00 denotes amount less than INR 50,000/-. Refer Note 45 for financial Instruments, fair value and measurements Refer Note 51 for Loans to Promoters, Directors, KMPs and Related parties Note 16 CURRENT FINANCIAL ASSETS : OTHERS ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Deposits with Financial Institutions - Gujarat State Financial Services Ltd. 1,282.79 - Other Bank Deposits* 0.01 - Unbilled Receivables-Other Income 0.89 - Insurance claim receivable 0.19 0.03 Staff - Employee Advance 0.13 0.11 Receivable from employees 0.37 0.21 Other receivables [Unsecured, considered good]:- From Related parties 0.41 0.18 From Others (Mainly collection agencies, Franchisees) 13.85 12.30 Total 1,298.64 12.83 st Notes to Consolidated financial statements for the year ended 31 March, 2025 * Includes Margin money or security against borrowings & guarantees ` 0.01 crores (Previous year Nil) Refer Note 45 for financial Instruments, fair value and measurements Refer Note 48 for Related party balances Note 17 CURRENT ASSETS : OTHERS (` in Crores) Refer Note 45 for financial Instruments, fair value and measurements Refer Note 48 for Related party balances st *Refer Note 5.3.3 for reclassification of Hooking up charges & Way Leave charges on 1 April, 2024 from prepaid expenses to ROU Lease assets. st st Particulars As at 31 As at 31 March, 2025 March, 2024 Advances for expenses To Related parties [Unsecured, considered good] 3.79 0.13 To Others [Unsecured, considered good] 19.49 12.20 Advances for expenses[Credit Impaired] 4.30 0.02 27.58 12.35 Less: Allowance for bad and doubtful (4.30) (0.02) Total 23.28 12.33 Prepaid Expenses* 20.92 28.02 Prepaid Expenses-CSR 0.19 0.80 Income tax assets - Current - (Refundable) (Refer Note 30) 4.76 - Indirect Tax credit receivable (Excise, VAT, GST etc.) 23.55 24.18 Balances with Government authorities - VAT credit refundable 144.56 131.85 Deferred employee benefit cost 1.81 1.18 Total 219.07 198.36 Note 15 CURRENT FINANCIAL ASSETS : LOANS ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Loans to employees [Unsecured, considered good] 2.25 2.99 Total 2.25 2.99 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 239 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 18.3 Terms/ rights attached to equity shares The company has only one class of equity shares having a face value of ` 2 per share (previous year ` 2 each). Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive residual assets of the company. The distribution will be in proportion to the number of equity shares held by the shareholders. Note 18.4 Share holding by prescribed entities Out of Equity shares issued by the company, shares held by its holding company and their subsidiaries and associates are as under: ( in Crores) ` No. of Equity Amount No. of Equity Amount Shares of ` 2 Shares of ` 2 each fully paid each fully paid (i) Gujarat State Petronet Limited (current year - 37,28,73,995 74.57 37,28,73,995 74.57 Holding Company and previous year - Holding Company) (ii) Gujarat State Energy Generation Limited (current year - 13,32,235 0.27 13,32,235 0.27 Subsidiary of Ultimate Holding Company and previous year :- Associate of Ultimate Holding Company) st st Share Holder (Nature of Relationship) As at 31 March, 2025 As at 31 March, 2024 Note 18 SHARE CAPITAL Note 18.1: Authorised, issued, subscribed, fully paid up share capital ( in Crores) ` No. of Shares Amount No. of Shares Amount Authorised Equity Shares of `2 each 8,67,55,00,000 1,735.10 8,67,55,00,000 1,735.10 7.5% Redeemable preference Shares of ` 10 each 1,70,00,000 17.00 1,70,00,000 17.00 Preference shares of ` 10 each 50,00,000 5.00 50,00,000 5.00 Issued, Subscribed and Paid up Equity Shares of ` 2 each (fully paid-up) 68,83,90,125 137.68 68,83,90,125 137.68 Total 68,83,90,125 137.68 68,83,90,125 137.68 st st Particulars As at 31 March, 2025 As at 31 March, 2024 Note 18.2 Reconciliation of shares outstanding at the beginning and at the end of the reporting period ( in Crores) ` Equity Shares of ` 2 each Equity Shares of ` 2 each fully paid fully paid No. of Shares Amount No. of Shares Amount Shares outstanding at the beginning of the period 68,83,90,125 137.68 68,83,90,125 137.68 Add: Shares issued during the period - - - - Less: Changes during the period - - - - Shares outstanding at the end of the period 68,83,90,125 137.68 68,83,90,125 137.68 st st Particulars As at 31 March, 2025 As at 31 March, 2024 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 240 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 18.7 Details of Bought back of shares, Bonus Shares and Shares issue without payment being received in Cash: The company has not bought back any equity shares, has not allotted any shares as fully paid up pursuant to contracts without payment being received in cash and has not allotted bonus shares during the period of five years immediately preceding the date of balance sheet. Further, there are no shares which are reserved for issue under options and contracts or commitments for the sale of shares or disinvestment. Note 18.8 Proposed Dividend: th The Board of Directors, in its meeting on 19 May, 2025, have proposed a final dividend of ` 5.82 per equity share (Face value of st ` 2/- each) for the financial year ended on 31 March, 2025. The proposal is subject to the approval of shareholders at the Annual General Meeting and, if approved, would result in a cash outflow of ` 400.64 crores. th The Board of Directors, in its meeting on 6 May, 2024, had proposed a final dividend of ` 5.66 per equity share (Face value of ` 2/- st each) for the financial year ended on 31 March, 2024. The proposal was approved by shareholders at the Annual General Meeting and this resulted in a cash outflow of ` 389.63 crores. Dividend Recognition: The Company recognises a liability for dividends to equity holders of the Company when the dividend is authorised. As per the corporate laws in India, a dividend is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in other equity. Note 18.6 Disclosures of Shareholding of Promoters - Shares held by the Promoters: Gujarat State Petroleum Equity - - - - - Corporation Limited Gujarat State Petronet Limited Equity 37,28,73,995 54.17% 37,28,73,995 54.17% 0.00% Government of Gujarat Equity 4,49,77,310 6.53% 4,49,77,310 6.53% 0.00% Gujarat State Energy Equity 13,32,235 0.19% 13,32,235 0.19% 0.00% Generation Limited Total 41,91,83,540 60.89% 41,91,83,540 60.89% Promoter name Class of Shares % Change during the year st As at 31 March, 2025 No. of Shares % of total shares st As at 31 March, 2024 No. of Shares % of total shares Note 18.5 Shareholders holding more than 5 % of total share capital No. of Shares % of Holding No. of Shares % of Holding Equity Shares of ` 2 each Equity Shares of ` 2 each fully paid fully paid Gujarat State Petronet Limited 37,28,73,995 54.17% 37,28,73,995 54.17% Gujarat State Fertilizers and Chemicals Limited 4,69,14,475 6.82% 4,69,14,475 6.82% Government of Gujarat 4,49,77,310 6.53% 4,49,77,310 6.53% Life Insurance Corporation of India 4,17,15,184 6.06% 4,17,90,184 6.07% st st Name of Shareholder As at 31 March, 2025 As at 31 March, 2024 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 241 st Notes to Consolidated financial statements for the year ended 31 March, 2025 th The Board of Directors, in its meeting on 6 May, 2024, had proposed a final dividend of ` 5.66 per equity share (Face value of ` 2/- st each) for the financial year ended on 31 March, 2024.The proposal was approved by shareholders at the Annual General Meeting and this resulted in a cash outflow of ` 389.63 crores. Nature and purpose of reserves : General reserve The general reserve is used from time to time to transfer profits from retained earnings for appropriation purpose. As the general reserve is created by transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit and loss. Amalgamation and Arrangement Reserve The "Amalgamation and Arrangement Reserve", created pursuant to scheme of amalgamation and arrangement, is treated as free th reserve based on the judgment of Honourable Gujarat High Court dated 18 April 2015 read with relevant other court decisions. Retained Earnings Retained earnings represents surplus / accumulated earnings of the company available for distribution to shareholders. Capital Reserve Capital Reserve not available for distribution of dividend and expected to remain invested permanently. Negative capital reserve represents difference between the consideration and carrying amount of net assets/liabilities acquired as per business transfer agreement for transactions among entities under common control. Equity instrument through OCI The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the Equity instrument through OCI reserve within equity. Note-19 OTHER EQUITY ( in Crores)` Particulars As at As atst st 31 March, 2025 31 March, 2024 (A) Reserves & Surplus General Reserve Opening Balance 2.72 2.72 Add/Less : Adjustment during the year - - Closing Balance 2.72 2.72 Amalgamation and arrangement Reserve Opening Balance 879.59 879.59 Add/Less : Adjustment during the year - - Closing Balance 879.59 879.59 Capital Reserve Opening Balance (23.98) (23.98) Add/Less : Adjustment during the year - - Closing Balance (23.98) (23.98) Retained Earnings Opening balance 6,824.24 6,133.35 Add: Profit during the year 1,148.32 1,143.70 Remeasurement of post employment benefit obligation (net of tax) 5.63 4.98 Total 7,978.19 7,282.03 Less : Appropriations Distribution of ESOP trust fund - (0.00) Dividend (389.63) (457.78) Closing Balance 7,588.56 6,824.24 Total (A) 8,446.89 7,682.57 (B) Equity instrument through OCI Opening Balance (97.78) (101.41) Add/Less : Change in fair value of equity instrument (net of tax) 2.83 3.63 Closing Balance (B) (94.95) (97.78) Total other equity (A+B) 8,351.96 7,584.80 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 242 Note 22 NON-CURRENT PROVISIONS ( in Crores)` Note 23 DEFERRED TAX LIABILITIES (Net) ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Provision for employee benefits (Refer note 47) Provision for Long service benefits 1.20 1.07 Provision for leave encashment 45.91 51.51 Total 47.11 52.58 st st Particulars As at 31 As at 31 March, 2025 March, 2024 A. Deferred tax Liabilities Tax effect of items constituting : Property, plant and equipment, Intangible assets, 1,014.32 960.80 Investment property & ROU Lease assets Investments 4.95 7.22 Total - A 1,019.27 968.02 B. Deferred tax asset Tax effect of items constituting : Employee benefits 12.19 13.64 Provisions 20.12 17.56 Other items* 28.08 26.07 Total - B 60.39 57.27 Deferred tax Liabilities (Net) (A-B) 958.88 910.75 st Notes to Consolidated financial statements for the year ended 31 March, 2025 (a) Deferred tax balances and movement for FY 2024-25 ( in Crores)` As at st 1 April, 2024 Recognised in profit or loss Restatement Others Recognised in OCI Other Adjustments As at st 31 March, 2025 Particulars Deferred tax Liabilities - Tax effect of items constituting - Property, plant and equipment, 960.80 - 53.52 - - 1,014.32 Intangible assets, Investment property & ROU Lease assets Investments 7.22 - - (2.27) - 4.95 Total 968.02 - 53.52 (2.27) - 1,019.27 Deferred tax asset - Tax effect of items constituting - Employee benefits 13.64 - 0.46 (1.91) - 12.19 Provisions 17.56 - 2.56 - - 20.12 Other items 26.07 - 2.01 - - 28.08 Total 57.27 - 5.03 (1.91) - 60.39 Net deferred tax Liabilities 910.75 - 48.49 (0.36) - 958.88 *Other items includes effects of Leases (IND AS-116), Deferred revenue (IND AS115), financial instruments measurement etc. Note 21 LEASE LIABILITIES ( in Crores)` Non-Current Current Non-Current Current Lease Liabilities (Refer note 50) 115.16 34.82 117.77 32.49 Total 115.16 34.82 117.77 32.49 st st Particulars As at 31 March, 2025 As at 31 March, 2024 Note 20 NON-CURRENT FINANCIAL LIABILITIES: BORROWINGS ( in Crores)` Term loans - From Banks - - - From Others - - Total - - st st Particulars As at 31 March, 2025 As at 31 March, 2024 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 243 st Notes to Consolidated financial statements for the year ended 31 March, 2025 As at st 1 April, 2023 Recognised in profit or loss Restatement Others Recognised in OCI Other Adjustments As at st 31 March, 2024 Particulars Deferred tax Liabilities - Tax effect of items constituting - Property, plant and equipment, 909.08 - 51.72 - - 960.80 Intangible assets, Investment property & ROU Lease assets Investments 6.19 - - 1.03 - 7.22 Total 915.27 - 51.72 1.03 - 968.02 Deferred tax asset - Tax effect of items constituting - Employee benefits 14.26 - 1.07 (1.69) - 13.64 Provisions 30.57 - (13.01) - - 17.56 Other items 24.34 - 1.73 - - 26.07 Total 69.17 - (10.21) (1.69) - 57.27 Net deferred tax Liabilities 846.10 - 61.94 2.72 - 910.75 st st Particulars As at 31 March, 2025 Expiry date As at 31 March, 2024 Expiry date Expire Nil NA Nil NA Never Expire Nil NA Nil NA Notes: The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority. Significant management judgment is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income by each jurisdiction in which the relevant entity operates and the period over which deferred income tax assets will be recovered. (c) Tax losses carried forward Note 23 DEFERRED TAX LIABILITIES (Net)- Continued….. (b) Deferred tax balances and movement for FY 2023-24 ( in Crores)` Note 24 OTHERS NON-CURRENT LIABILITIES (` in Crores) Note 25 CURRENT FINANCIAL LIABILITIES : BORROWINGS (` in Crores) st st Particulars As at 31 As at 31 March, 2025 March, 2024 Deferred Revenue ( Refer Note 49) 75.99 73.05 Total 75.99 73.05 st st Particulars As at 31 As at 31 March, 2025 March, 2024 Loans Repayable on demand - From Banks - - Total - - The Company does not have any defaults in repayment of loans and interest as at the reporting date. The Company has obtained unsecured working capital Overdraft facilities wherein submission of the quarterly returns/ statements of current assets is not applicable. Refer Note 45 for financial Instruments, fair value and measurements 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 244 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 26 CURRENT FINANCIAL LIABILITIES : TRADE PAYABLES ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 A. Total outstanding dues of micro enterprises and small enterprises - Trade payables others (Refer Note 44) 35.32 26.50 Unbilled dues 29.86 24.67 Total (A) 65.18 51.17 B. Total outstanding dues of creditors other than micro enterprises and small enterprises:- Trade payables - Gas Purchase / Transmission 410.51 438.42 Trade payables - Others 81.29 81.97 Unbilled dues 162.96 128.65 Total (B) 654.76 649.04 Total (A+B) 719.94 700.21 Refer Note 45 for financial Instruments, fair value and measurements Refer Note 48 for Related party balances Particulars Unbilled (i) MSME 29.86 35.06 - - - - 64.92 (ii) Others 162.96 461.84 23.10 2.82 1.04 0.40 652.16 (iii) Disputed dues - MSME - 0.26 - - - - 0.26 (iv) Disputed dues -Others - 0.54 0.13 0.03 0.03 1.87 2.60 Total 192.82 497.70 23.23 2.85 1.07 2.27 719.94 Outstanding for following period from due date of payment Not Due Less than 1 Year 1-2 years 2-3 years More than 3 years Total Particulars Unbilled (i) MSME 24.67 26.50 - - - - 51.17 (ii) Others 128.65 485.44 28.40 1.40 0.33 0.24 644.46 (iii) Disputed dues - MSME - - - - - - - (iv) Disputed dues -Others - 3.52 0.41 0.06 0.50 0.09 4.58 Total 153.32 515.46 28.81 1.46 0.83 0.33 700.21 Outstanding for following period from due date of payment Not Due Less than 1 Year 1-2 years 2-3 years More than 3 years Total Note 26.1 - Trade Payable ageing schedule: st As on 31 March, 2025: ( in Crores)` st As on 31 March, 2024: ( in Crores)` 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 245 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 27 CURRENT FINANCIAL LIABILITIES : OTHERS (` in Crores) st st Particulars As at 31 As at 31 March, 2025 March, 2024 Capital creditors and other payables (Including retentions):- - Total outstanding dues of micro enterprises and small enterprises 150.28 142.18 (Refer note 44) - Total outstanding other than dues of micro enterprises and small enterprises 76.52 102.62 226.80 244.80 Security Deposits from customers (Including accrued interest) 1,574.97 1,469.64 Security Deposit from customers towards MGO 131.46 130.74 Security Deposit from collection centres 4.57 5.07 Security Deposits from Suppliers and others 43.10 53.78 Unclaimed dividend (Refer Note 27.1) 2.20 1.64 Other current financial liabilities 4.07 2.52 Total 1,987.17 1,908.19 Note 28 CURRENT LIABILITIES : OTHERS (` in Crores) Refer Note 45 for financial Instruments, fair value and measurements Refer Note 48 for Related party balances Note 27.1: The balance with the bank for unpaid dividend is not available for use by the Company and the money remaining unpaid will be deposited in Investor Education and Protection Fund u/s 124(5) of Companies Act, 2013 after the expiry of seven years from the date of declaration of dividend. No amount is due at the end of the period for credit to Investors education and protection fund. st st Particulars As at 31 As at 31 March, 2025 March, 2024 Advances from customer 65.97 64.96 Deferred Revenue (Refer Note 49) 12.10 11.84 Statutory dues payable (Includes Excise duty,VAT,GST,TDS,PF etc.) 36.18 27.08 Liability for unspent CSR expenses (Refer note 54) 52.73 36.59 Other Current Liabilities 0.09 0.12 Total 167.07 140.59 Note 30 CURRENT TAX LIABILITIES (NET) (` in Crores) st st Particulars As at 31 As at 31 March, 2025 March, 2024 Current income tax liabilities (Net of advance tax, TDS and TCS) 27.41 6.63 Total 27.41 6.63 st st Particulars As at 31 As at 31 March, 2025 March, 2024 (a) Advance payment of income tax - Non-current [Net of provisions] (Refer Note 10) 18.54 40.54 (b) Advance payment of income tax - Current - (Refundable) (Refer Note 17) 4.76 - (c) Current income tax liabilities (Refer Note 30) 27.41 6.63 Net Asset (a+b-c) (4.11) 33.91 INCOME TAX ASSETS AND LIABILITIES (NET) Details of Income tax assets and income tax liabilities (` in Crores) Note 29 CURRENT PROVISION (` in Crores) st st Particulars As at 31 As at 31 March, 2025 March, 2024 Provision for employee benefits (Refer note 47) Provision for gratuity 0.69 2.48 Provision for leave encashment 1.55 1.89 Provision for bonus & incentives 18.71 22.17 Provision for other employee benefits 0.14 0.07 Other Provisions 6.83 0.22 Total 27.92 26.83 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 246 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Movement in income tax asset/(liability) (` in Crores) st st Particulars As at 31 As at 31 March, 2025 March, 2024 Net current income tax asset/(liability) at the beginning of the period 33.91 42.71 Movement during the year on account of : Income tax paid for the year 319.56 318.46 Provision for Income tax for the year (Refer Note 40(a)) (346.97) (325.09) Prior year tax paid /refund adjusted with tax / other items 12.38 (2.17) Income tax refund received (22.99) - Net current income tax asset/(liability) at the end of the period (4.11) 33.91 Note 31 REVENUE FROM OPERATIONS ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Sale of Product (Including excise duty) Natural Gas 17,079.52 16,199.63 Other operating revenue Gas transmission / Compression Income (Including excise duty) 13.94 9.02 Yearly fees Income 29.55 28.16 Take or Pay Income 29.43 24.47 Connection, Service and Fitting Income 27.72 26.74 Other Operating Income 4.81 4.95 105.45 93.34 Total 17,184.97 16,292.97 Note 32 OTHER INCOME ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Interest Income From Deposits with Banks/Financial Institutions* 97.02 43.85 From Customers on delayed payments 14.89 17.27 From Other financial assets at amortised cost (EIR) 2.10 1.67 Others (including interest on tax refunds Current year ` 27.98 crores, 28.63 0.47 Previous year ` 0.06 crores )** Total 142.64 63.26 Dividend on Investments - - Late payment charges 15.58 12.28 Net gain on Foreign Currency Transactions (Refer Note 38.3) - 0.05 Provisions / liabilities no longer required written back 27.27 4.84 Profit on Lease termination / modification / reassessment (net) - 0.02 Profit on sale as scrap 0.88 0.98 Net gain on Sale of Investments - 0.06 Other Non-Operating Income 21.92 24.62 Total 208.29 106.11 *Includes interest Income on Security deposits in form of fixed/ liquid deposits with banks/ financial institutions **Includes interest income on deposits, staff advances and employee loans Figures INR 0.00 denotes amount less than INR 50,000/-. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 247 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 34 CHANGES IN INVENTORIES OF NATURAL GAS ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Changes in inventories of finished goods, stock in trade and work in progress - Natural Gas Inventory at the beginning of the year 16.67 16.92 Less: Inventory at the end of the year 20.55 16.67 Total (3.89) 0.25 Note 36 FINANCE COSTS ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Interest on Borrowings 0.03 0.21 Interest on Security Deposits & Others 20.90 18.15 Interest expenses on lease liability (Refer note 50) 10.15 10.47 Interest on Income Tax 1.41 0.48 Total 32.49 29.31 Note 35 EMPLOYEE BENEFIT EXPENSE ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Salaries and Wages 154.95 159.99 Contribution to Provident and Other Funds- Gratuity (Refer note 47) 21.13 21.72 Leave Encashment & Other benefits 1.06 4.28 Staff Welfare Expenses 12.16 12.89 Total 189.30 198.88 Note 37 DEPRECIATION AND AMORTISATION EXPENSE ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Depreciation of property, plant and equipment (Refer note 3.1) 438.03 413.53 Amortisation of intangible assets (Refer note 5.1) 26.64 27.36 Amortisation of Right-of-use (ROU) assets (Refer note 5.3) 45.91 33.41 Depreciation of Investment Property (Refer note 4) 0.06 - Total 510.64 474.30 Note 33 COST OF MATERIALS CONSUMED / PURCHASE OF STOCK IN TRADE ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Natural Gas - Purchase 12,558.14 11,917.95 Gas Transportation Charges 661.86 634.91 Change in Deferred delivery of natural gas (GIT):- Add :- Opening balance 0.35 2.89 Less:- Closing balance 0.47 0.35 Net Change in Deferred delivery of natural gas(GIT) (0.13) 2.54 Total 13,219.87 12,555.40 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 248 Note 38 OTHER EXPENSES ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Consumption of Stores & Spares Parts 18.89 17.31 Power and Fuel 218.81 189.58 Repairs and Maintenance: - Buildings 2.93 1.28 - Plant and Machinery 362.04 316.07 - Others 19.64 16.28 Gas Compression charges 14.55 12.32 Lease Charges-Others (Refer Note 38.1) 34.28 39.73 LCV/HCV Hiring, Operating and Maintenance Charges (Refer Note 38.1) 80.58 75.66 Franchisee Commission and Other Facility charges 145.72 115.65 Agency & Contract Staff Expenses 37.31 35.72 Legal, Professional & Consultancy Charges 31.54 23.13 ROW Running Charges 73.96 79.08 Loss on sale / write-off of Fixed Assets including provisions (net) 8.94 2.91 Bank Charges 19.31 24.21 Billing and Collection Expenses 13.52 13.74 Vehicles Hiring / Running Expenses 12.15 12.42 Office Expenses 11.01 9.48 Postage, Courier and communication Expenses 3.79 5.29 Allowance for Doubtful Trade Receivables/Advances/Deposits(net) 29.45 4.83 Bad Debt written off 1.23 - Advertisement & Business Promotion Expenses 4.65 6.90 Insurance Premium Expenses 4.86 6.79 Rates, Taxes and Duties 2.71 2.00 Travelling and Conveyance 1.65 1.29 Stationery and Printing Expenses 1.95 2.21 Corporate Social Responsibility Expenses (Refer Note no. 54) 35.46 36.58 Payment to Auditors (Refer Note 38.2) 0.35 0.35 Provision for Diminution in value of Inventory 6.11 0.09 Miscellaneous Expenses 4.50 8.38 Net loss on foreign currency transaction (Refer Note 38.3) 0.02 - Total 1,201.91 1,059.28 Note 38.2 Payment to Auditors ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 For fees as auditors 0.35 0.35 For Out of pocket expenses - - For Other services 0.11 0.00 Total 0.46 0.35 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 38.1 Leases charges-Others includes rental charges of all assets that have lease period of 12 months or less, rental charges of low value assets, variable lease payments and component of taxes of ROU lease charges. LCV/HCV Hiring, Operating and Maintenance Charges includes non lease component viz. manpower, fuel cost, repair and maintenance and rental charges of LCV/HCV lease assets that have lease period of 12 months or less. (Refer note 50). Figures INR 0.00 denotes amount less than INR 50,000/-. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Exceptional income in previous year pertains to write-back of provisions made in earlier periods for trade margin on sale of CNG, following the settlement of matter with the Oil Marketing Companies. 249 Note 39 EXCEPTIONAL ITEMS ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Exceptional item (Income) / Expense - (55.69) Total - (55.69) Note 40 TAX EXPENSE (a) Amounts recognised in statement of profit and loss ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Income Tax Expenses Current Tax (a) Current income tax 346.97 325.09 (b) Short/(Excess) provision of income tax in respect of previous years 5.63 6.41 Total (A) 352.60 331.50 Deferred tax Deferred tax expense / (Income)- net: (a) In respect of current year, Origination and reversal of temporary 54.70 68.35 differences (b) Short/(Excess) provision of deferred tax in respect of previous years (6.21) (6.41) Total (B) 48.49 61.94 Tax expense for the year ( A+B) 401.09 393.44 st Notes to Consolidated financial statements for the year ended 31 March, 2025 (b) Reconciliation of effective tax rate and tax expense with accounting profit ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Profit before tax 1,549.41 1,537.14 Tax using the Company’s domestic tax rate (Current year 25.17% and 389.96 386.87 Previous Year 25.17%) Tax effect on account of: Expenses not deductible or disallowances for tax purposes - CSR, 8.86 8.91 Interest u/s. 234B / 234C, Deduction u/s 80M etc. Other items 0.35 0.35 Impact of Long Term Capital Gain on Land 3.22 (2.46) Impact of tax on share of profit of subsidiary and associate (0.71) (0.23) Impact of (Excess)/Short provisions of earlier year taxes (0.58) - Total 401.09 393.44 2024-2025 th 13 ANNUAL REPORT Note 38.3 Net (gain) or loss on foreign currency transaction ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Loss on foreign currency transaction 0.02 - Gain on foreign currency transaction - 0.05 Net (gain) or loss on foreign currency transaction 0.02 (0.05) Figures INR 0.00 denotes amount less than INR 50,000/-.
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GUJARAT GAS LIMITED 250 Note 41 STATEMENT OF OTHER COMPREHENSIVE INCOME ( in Crores)` Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Items that will not be reclassified to profit or loss I. Equity Instruments through Other Comprehensive Income Fair value of unquoted investments - gain / (expense) 0.56 4.66 Tax impact on unquoted investments- gain / (expense) 2.27 (1.03) II. Remeasurement gains on defined employee benefit plans Actuarial gains 7.59 6.72 Tax impact on actuarial gains (1.91) (1.69) Share of Other comprehensive income of equity accounted investee (0.05) (0.05) Total of Items that will not be reclassified to profit or loss 8.10 11.33 Total Tax impact 0.36 (2.72) Total 8.46 8.61 Note 42 EARNINGS PER SHARE (EPS) EARNINGS PER EQUITY SHARE- FACE VALUE OF ` 2 EACH The following reflects the income and share data used in the basic and diluted EPS computations: Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Profit for the year (Profit attributable to equity shareholders) (` in Crores) 1,148.32 1,143.70 Weighted average number of ordinary equity shares for Basic EPS (in Nos.) 68,83,90,125 68,83,90,125 Weighted average number of ordinary equity shares for Diluted EPS (in Nos.) 68,83,90,125 68,83,90,125 Face Value of equity share (`) 2.00 2.00 Basic EPS (`) 16.68 16.61 Diluted EPS (`) 16.68 16.61 Note:- Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares. The Company does not have any outstanding dilutive potential equity shares. Consequently, the basic and diluted earnings per share of the Company remain the same. st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 43 CONTINGENT LIABILITIES & CONTINGENT ASSETS (A) CONTINGENT LIABILITIES ( in Crores)` st st Contingent liabilities (to the extent not provided for) As at 31 As at 31 March, 2025 March, 2024 Contingent Liabilities (a) Contingent Liabilities - Statutory claims ( Refer Note 43.1) Disputed statutory dues in respect of which Appeals are filed against / by the Company : (i) Excise Duty 18.60 18.28 (ii) Income Tax 22.61 11.03 (iii) Service Tax 37.66 37.66 (iv) GST 16.26 15.13 Total 95.13 82.10 (b) Claims / Litigations against the company not acknowledged as debt 482.99 483.77 (Refer Note 43.2) Total 578.12 565.87 2024-2025 th 13 ANNUAL REPORT The Group has reviewed all its pending claims, litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Group does not expect the outcome of these claims, litigations and proceedings to have a materially adverse effect on its financial position.
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GUJARAT GAS LIMITED 251 Note 43.1 Disputed statutory dues in respect of which Appeals are filed against / by company. The Group is contesting the demands and the management including its advisors believe that its position is likely to be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the company's financial position and results of operations. Note 43.2 Claims / Litigations against the company not acknowledged as debt includes the following major matters: (i) UPL Limited (UPL) a customer of erstwhile Gujarat Gas Company Limited (GGCL) (now known as Gujarat Gas Limited) had filed a complaint before Petroleum and Natural Gas Regulatory Board (PNGRB) against erstwhile GGCL alleging charging of tariff illegally under the City Gas Network Distribution Agreement entered into between the parties and filed claim of approx. ` 76.98 Crores. The matter was decided against the company by PNGRB vide its Order dated 20.10.2014. The company had preferred an appeal at Appellate Tribunal for Electricity (APTEL) against the aforementioned PNGRB Order. APTEL has delivered final judgement on 10.03.2021 in favour of the Company by setting aside the aforementioned PNGRB Order, and has recorded that invocation of HAPI tariff by PNGRB for the negotiated arrangement between the parties was not only against the letter and spirit of regulations defining tariff zone but also tantamount to rewriting of contract. UPL has preferred an appeal before the Hon’ble Supreme Court of India against the order of APTEL dated 10.03.2021. Presently, the matter is pending before Hon’ble Supreme Court of India. (ii) One of the gas suppliers of the Company has submitted claims of ` 212.27 crores (P. Y. ` 212.27 crores), for use of allocated gas for other than specified purpose, related to FY 2013-14 to FY 2021-22 and no claim is received from supplier for FY 2022-23, FY 2023-24 and FY 2024-25. The company has refuted this erroneous claim and also there is no contractual provision of the agreement executed with GGL that allows such claim. The management is of the firm view that the company is not liable to pay any such claim. The company has already taken up the matter with concerned party to withdraw the claim. (iii) The company has initiated an arbitration proceeding against one of the franchisees claiming compensation for loss of revenue. While replying to the claim, the said franchisee has also filed a counter claim of ` 177.14 crores (P.Y. ` 177.14 crores) against the company claiming compensation for various losses. The company has filed necessary rejoinder to the counter claim strongly refuting the same mainly on the grounds that the counter claims are wrong and without merits and as are not flowing from the same agreement under which the arbitral tribunal has been constituted. Currently arbitral proceedings of this matter is pending before the sole arbitrator. Note 43.3 The following demands / Litigations / matters are not included in above (i) Erstwhile Gujarat Gas Company Limited and Erstwhile GSPC Gas Company Limited (Now collectively known as Gujarat Gas Limited “GGL”) had signed Gas supply agreement with Gujarat State Petroleum Corporation Limited (GSPCL) for purchase of Re-gasified liquified natural gas (RLNG). As per the provision of said agreement, GGL has to pay interconnectivity charges to GSPCL for the supply and purchase of RLNG at Delivery point which is charged to GSPCL by their supplier i.e. PLL Off takers (GAIL India, BPCL, IOCL). PNGRB had vide its order dated 13.09.2011 and the majority members of PNGRB (three member panel of Board) had vide its order dated 10.10.2011 held that GAIL had adopted Restrictive Trade Practices by blocking off direct connectivity to GSPCL and further, directed Respondents (PLL Off takers - GAIL India, BPCL, IOCL) to immediately give direct connectivity to GSPCL at Dahej Terminal. The PLL Offtakers (GAIL) filed appeals against the said PNGRB orders before the Appellate Tribunal for Electricity (APTEL). On 23.02.2012 APTEL had issued an interim order for shifting the Delivery Point from GAIL-GSPL Delivery Point to GSPL-PLL Delivery Point. On 18.12.2013 APTEL issued its judgment and required GSPCL to pay the amount of the difference between ` 8.74/MMBTU (exclusive of Service Tax) – earlier connectivity charges and ` 19.83/MMBTU (Exclusive of Service Tax) – th th HVJ/DVPL Zone-1 tariff to GAIL for the period from 20 November, 2008 to 29 February, 2012. GSPCL had filed an appeal against the APTEL’s above referred judgment before Hon’ble Supreme Court of India (GSPCL vs. GAIL & Others, Civil Appeal No. 2473-2476 of 2014) and the Hon’ble Supreme Court of India had passed the Interim Order on th 28 February, 2014. The Court has stated that the ends of justice would be met if as a matter of interim arrangement, the appellant is directed to pay interconnectivity charges at the rate of ` 12.00 per MMBTU (exclusive of Taxes). The Company has already provided and paid interconnectivity charges at the rate of ` 12.00 per MMBTU (exclusive of Taxes). GGL has not received any bill / demand note for the amount over and above ` 12.00 per MMBTU from supplier till date. As the final liability would only be determined post the final order of the court, quantification of any amount as contingent liability in the interim is inappropriate due to the uncertainty involved and hence the same is not mentioned / disclosed in the financial statement. st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED st Notes to Consolidated financial statements for the year ended 31 March, 2025 252 th (ii) The Company deposited ` 464.78 crores on 12 June, 2013 into the escrow account ("named BG Asia Pacific Holdings Pte. Limited GSPC Distribution Networks Limited Escrow Account") opened with Citibank N.A., acting as the escrow agent, pursuant to the escrow agreement executed between the BG Asia Pacific Holdings Pte. Limited (the Seller), Gujarat Gas Limited (Formerly known as GSPC Distribution Networks Limited) (the Purchaser) and Citibank N.A. The Payment of said amount into Escrow Account was to be utilized to meet future tax withholding liability (if any) based on outcome of the applications to the Authority for Advance Rulings or otherwise to be remitted to BG Asia Pacific Holdings Pte. Limited (the Seller) directly. The Company has received the ruling from the Hon’ble Authority for Advance Ruling (“AAR”), vide consolidated ruling order th dated 25 February, 2021 wherein the Hon’ble AAR has held that the transaction Price is not subject to any tax withholding in India and the Purchaser is not required to withhold tax since the capital gains is not subject to tax in India in view of Article 13(4) of the India Singapore Tax Treaty under India Singapore Double Tax Avoidance Agreement in the hands of the Seller. Pursuant to the ruling of the Hon’ble AAR and as per the terms of the Escrow Agreement, amount of ` 464.78 crores kept in Escrow th Account had been remitted to the BG Singapore on 7 April, 2021. In the financial year 2021-22, Commissioner of Income Tax (International Taxation) – 3 (CIT), has filed Civil Misc. Writ Petition against BG Singapore, challenging the AAR Ruling before the Hon’ble High Court of Uttarakhand at Nainital on 22.09.2021. CIT has also filed Impleadment /Amendment Application in Civil Misc. Writ Petition before the Hon’ble High Court of Uttarakhand at Nainital on 08.01.2022 for amendment of cause title of the petition and added Commissioner of Income Tax (IT & TP), Ahmedabad as Petitioner No. 2 and GGL as Respondent No. 2. Currently, the Impleadment /Amendment Application is in process for admission with Hon’ble High Court of Uttarakhand. As per Share purchase agreement, the Seller had agreed to indemnify, defend and hold harmless the Purchaser from and against th any Tax claim notice receives on or prior to the expiry of 10 years from the Closing date (i.e. up to 11 June, 2023) in respect of Seller’s sale of shares to the Purchaser. Company. Currently, the Impleadment /Amendment Application for challenging the AAR Ruling is in process for admission with Hon’ble High Court of Uttarakhand. In view of this, there is remote possibility of any outflow in this matter and hence, the same has not been considered as Contingent Liability. (iii) Two entities, who have been authorized by the Petroleum and Natural Gas Regulatory Board (PNGRB), have filed complaints against the Company before the PNGRB for claiming compensation with respect to the unauthorized development / operations of CGD infrastructure activities carried out by the Company in their authorised area. The Company has also filed a complaint against one of the entities before the PNGRB for unauthorized development / operations of CGD infrastructure in area authorised to the Company. Further, the Company has raised objections to the maintainability of the such complaints, which are yet to be determined by the PNGRB. The quantification of any liability is not ascertainable at this stage. However, the Company is hopeful of arriving at amicable resolution of the subject issues. B) CONTINGENT ASSETS (i) The Company has raised claim of ` 43.08 crores (Previous year ` 43.08 crores) for net credit of natural gas pipeline tariff as per PNGRB Order with one of the suppliers and supplier is disputing company’s claim and indicating for adjusting the partial claim of ` 30.72 crores (Previous year ` 30.72 crores) out of total claim ` 43.08 crores (Previous year ` 43.08 crores) against disputed liability for use of allocated gas other than specified purpose, against demand in earlier year (Refer Point 43.2-(ii) above). (ii) The Company has filed an appeal before the Appellate Tribunal for Electricity (APTEL) against the PNGRB order related to the matter held that the Gas Swapping Arrangement Guidelines of PNGRB is applied erroneously. APTEL has issued the order in favour of GGL. The said supplier has filed appeal at Hon’ble Supreme Court of India against the order of APTEL. Presently, the matter is pending in Hon’ble Supreme Court of India. Currently, GGL is paying ` 19.83 per mmbtu or tariff determined as transmission charges for domestic gas being purchased and delivered by GAIL at one of the delivery points. If verdict is in favour of GGL, GGL will get refund of ` 413.71 crores (Previous year ` 305.82 crores) from December 2013 till March 2025 and the company shall be required to pass on the benefit to its customers as per relevant order of the Court. (iii) The Company is having other certain claims, litigations and proceedings which are pursuing through legal processes. The management believe that probable outcome in all such claims, litigations and proceedings are uncertain. Hence, the disclosure of such claims, litigations and proceedings is not required in the financial statements. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 253 Note 44 DISCLOSURE AS REQUIRED BY THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 The disclosure pursuant to the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED Act) for dues to micro enterprises and small enterprises is as under: ( in Crores)` st st Sr. Particulars As at 31 As at 31 No. March, 2025 March, 2024 1 2 3 4 5 6 The principal amount outstanding as at the end of accounting year. a) Trade payable b) Capital creditors Principal amount due and remaining unpaid as at the end of accounting year. Interest paid by the company in terms of section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), along with the amount of the payment made to the supplier beyond the appointed day during accounting year. Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the Micro, Small and Medium Enterprises Development Act, 2006. Interest accrued and remaining unpaid at the end of accounting year (Refer Note below). Further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance as a deductible expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006. 65.18 51.17 150.28 142.18 - - - - - - - - - - - - Note: No interest has been paid by the Company to the enterprises covered under Micro, Small and Medium Enterprises Development Act, 2006 according to the terms agreed with the enterprises. The above information regarding micro and small enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company Other commitments (i) All term contracts for purchase of natural gas with suppliers, has contractual volume off take obligation of “Take or Pay” (ToP) as specified in individual contracts. Quantification of ToP amount is dependent on various factors like actual purchase quantity, gas purchase prices of respective contract etc. As these factors are not predictable, ToP commitment amount is not quantifiable. (ii) The Company has been granted authorization for laying, building, operating and expanding CGD network in the total 27 geographical area under the Petroleum and Natural Gas Regulatory Board (Authorizing entities to lay, build, operate or expand city or local Natural Gas Distribution Networks) Regulation 2008, against which Company is required to complete Minimum Work Programme (MWP) target for development of CGD network under the terms of authorisation awarded by Petroleum and Natural Gas Regulatory Board (PNGRB). For this purpose, the Company had submitted performance bank guarantees (issued by banks on behalf of the Company) amounting to ` 5986.43 crores (previous year ` 6528.83 crores) to the Petroleum and Natural Gas Regulatory Board. (C) COMMITMENTS ` ( in Crores) st st Commitments (to the extent not provided for) As at 31 As at 31 March, 2025 March, 2024 1 Estimated amount of contracts remaining to be executed on capital 734.54 925.41 account and not provided for 2 Estimated amount of contracts remaining to be executed on revenue 1,360.03 1,345.00 account and not provided for Total 2,094.57 2,270.42 Sr. No. st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 254 st 31 March, 2025 FVTPL FVTOCI Amortised Total Level 1 - Level -2 Level 3 - Total Cost Quoted Significant Significant price in observable unobservable active inputs inputs markets Financial assets Investments - 135.60 - 135.60 - - 135.60 135.60 Financial assets measured at amortised cost Loans (Non-current) - - 1.32 1.32 - - - - Loans (Current) - - 2.25 2.25 - - - - Other financial assets - - 99.42 99.42 - - - - (Non-current) Other financial assets - - 1,298.64 1,298.64 - - - - (Current) Trade receivables - - 1,023.97 1,023.97 - - - - Cash and cash equivalents - - 326.86 326.86 - - - - Other bank balances - - 32.54 32.54 - - - - Total - 135.60 2,785.00 2,920.60 - - 135.60 135.60 Financial liabilities measured at amortised cost Non-current borrowings - - - - - - - - Current borrowings - - - - - - - - Non-current-Lease Liabilities - - 115.16 115.16 - - - - Current-Lease Liabilities - - 34.82 34.82 - - - - Non-current financial - - - - - - - - liabilities-Others Trade payables - - 719.94 719.94 - - - - Other financial liabilities - - 1,987.17 1,987.17 - - - - Total - - 2,857.09 2,857.09 - - - - A. ACCOUNTING CLASSIFICATION AND FAIR VALUES ( in Crores)` Carrying amount Fair value# Note 45 FINANCIAL INSTRUMENTS (FAIR VALUE MEASUREMENTS) AND FINANCIAL RISK MANAGEMENT The Company has various financial assets and liabilities. The disclosures regarding the classification, fair value hierarchy, markets risk, credit risks and liquidity risks are as follows: st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED st 31 March, 2024 FVTPL FVTOCI Amortised Total Level 1 - Level -2 Level 3 - Total Cost Quoted Significant Significant price in observable unobservable active inputs inputs markets Financial assets Investments - 135.04 - 135.04 - - 135.04 135.04 Financial assets measured at amortised cost Loans (Non-current) - - 2.22 2.22 - - - - Loans (Current) - - 2.99 2.99 - - - - Other financial assets - - 104.47 104.47 - - - - (Non-current) Other financial assets - - 12.83 12.83 - - - - (Current) Trade receivables - - 1,029.84 1,029.84 - - - - Cash and cash equivalents - - 915.98 915.98 - - - - Other bank balances - - 10.14 10.14 - - - - Total - 135.04 2,078.47 2,213.51 - - 135.04 135.04 Financial liabilities measured at amortised cost Non-current borrowings - - - - - - - - Current borrowings - - - - - - - - Non-current-Lease Liabilities - - 117.77 117.77 - - - - Current-Lease Liabilities 32.49 32.49 - - - - Non-current financial - - - - - - - - liabilities-Others Trade payables - - 700.21 700.21 - - - - Other financial liabilities - - 1,908.19 1,908.19 - - - - Total - - 2,758.66 2,758.66 - - - - Carrying amount Fair value 255 Note 45 Financial Instruments (fair Value Measurements) and Financial Risk Management ...(continued ) ( in Crores)` st Notes to Consolidated financial statements for the year ended 31 March, 2025 Fair Value Hierarchy of Financial Assets and Liabilities : # Fair value of financial assets and liabilities which are measured at amortised cost is not materially different from the carrying value (i.e. amortised cost). Accordingly, the fair value has not been disclosed separately. Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities included in level 3. 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED The estimated fair value would increase (decrease) if: There is a change in pricing multiple owing to change in earnings of the entity. Considering the diverse asset and investment base of the Company with differing risk/ return profiles, a sum of the parts approach has been adopted for the valuation. Under this method, the value of each distinct business/ asset/ investment has been arrived at separately and total value estimate for the Company presented as the sum of all its business / investments /assets. Comparable unobservable entity has been taken as a base for the valuation of unquoted equity shares and its management's own assumptions for arriving at a fair value such as projected cash flows used to value a business etc. As stated , highest priority is given to unadjusted quoted price of listed entities and lowest priority to non-market linked inputs such as future cash flows used in income approach. Market comparison technique: The valuation model is based on three approaches : 1. Market approach : This approach uses information generated by market transactions of the Company being valued or the transactions of comparable companies. The following market- linked information may be used for determining valuation under this approach. - Quoted price of the company being valued, - Past transaction value of the company being valued, - Listed comparable companies' trading multiples like price to earning ratio, enterprise value to earning before interest, tax, depreciation and amortisation, enterprise value to sales etc. - Transactions multiples for investment / M & A transaction of comparable companies. The valuation arrived at based on the market approach reflects the current value of the Company perceived in the active market. However, as the valuation arrived at using market multiples is based on the past/current transaction or traded values of comparable companies/businesses, it may not reflect the possible changes in future trend of cash flows being generated by a business. 2. Income approach - The income approach reflects present value of future cash flows. For valuing a business, the discounted cash flow (DCF) methodology is used under this approach. This methodology works on the premise that the value of a business is measured in terms of future cash flow streams, discounted to the present time at an appropriate discount rate. This method is used to determine the present value of business on a going concern assumption. The DCF technique recognizes the time value of money. The value of the firm is arrived at by estimating the Free Cash Flow to Firm (FCFF) and discounting the same at the Weighted Average Cost of Capital (WACC). FCFF is estimated by forecasting free cash flows available to the firm (which are derived on the basis of the likely future earnings of the company). 3. Cost approach - The cost approach essentially estimates the cost of replacing the tangible assets of the business. The replacement cost takes into account the market value of various assets or the expenditure required to create the infrastructure exactly similar to that of a company being valued. Significant unobservable inputsValuation technique Inter-relationship between significant unobservable inputs and fair value measurement 256 B. MEASUREMENT OF FAIR VALUES i) Valuation techniques and significant unobservable inputs The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the significant unobservable inputs used. Financial instruments measured at fair value - FVTOCI in unquoted equity shares st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 45 Financial Instruments (fair Value Measurements) and Financial Risk Management ...(continued ) 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 257 st Notes to Consolidated financial statements for the year ended 31 March, 2025 C. FINANCIAL RISK MANAGEMENT The Company has exposure to the following risks arising from financial instruments: - Credit risk ; - Liquidity risk ; and - Market risk i. Risk management framework The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company has a well-defined Risk Management framework for reviewing the major risks and has adopted a Business Risk Management Policy which also takes care of all the financial risks. Further, pursuant to the requirement of Regulation 21 of SEBI (Listing obligation and disclosure Requirements) Regulation, 2015, the company has constituted a Risk Management Committee inter - alia to monitor the Risk Management Plan of the Company. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. ii) Transfers between Levels 1 and 2 There have been no transfers between Level 1 and Level 2 during the reporting periods. iii) Level 3 fair values st Movements in the values of unquoted equity instruments for the year ended 31 March 2025 and for the year ended st 31 March 2024 is as below: (` in Crores) st Equity Instrument:- Fair value of investment in GSPC equity shares as on 31 March 2025 is based on Market approach, Income st approach and cost approach and investment in GSPC LNG equity shares as on 31 March 2025 is based on Income approach. Transfer out of Level 3 st There were no movement in level 3 in either directions during the year ended 31 March, 2025. Ind AS-101 allows an entity to designate certain investments in equity instruments as fair valued through the OCI on the basis of the facts and circumstances at the transition date to Ind AS. The Company has elected to apply this exemption for its investment in equity shares. Sensitivity analysis st Based on the valuation report for investments in unquoted shares, the sensitivity as on 31 March, 2025 is provided below. (` in Crores) Particulars Amount st As at 1 April, 2023 30.38 Acquisitions/ (disposals) 100.00 Gains/ (losses) recognised in other comprehensive income 4.66 Gains/ (losses) recognised in statement of profit or loss - st Closing Balance as at 31 March, 2024 135.04 Acquisitions/ (disposals) - Gains/ (losses) recognised in other comprehensive income 0.56 Gains/ (losses) recognised in statement of profit or loss - st Closing Balance as at 31 March, 2025 135.60 OCI 10% Increase 10% Decrease Equity securities in unquoted investments measured through OCI (i) GSPC Impact of variation in fluctuation in the market prices of subsidiary companies / Gas marketing business of investee companyst As on 31 March, 2025 3.08 (3.08)st As on 31 March, 2024 3.18 (3.18) (ii) GSPC LNG Impact of variation in movement in base valuation of the entityst As on 31 March, 2025 10.00 (10.00)st As on 31 March, 2024 10.00 (10.00) Significant observable inputs Note 45 Financial Instruments (fair Value Measurements) and Financial Risk Management ...(continued ) 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED ii. Credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's trade receivables from customers and security deposits.The Company’s maximum exposure to credit risk is limited to the carrying amount of financial assets recognized at reporting date. Details of the credit risk specific to the company have been enumerated below: (a) Trade and other receivables The Company's exposure to credit Risk is the exposure that Company has on account of goods sold or services rendered to a contractual counterparty or counterparties, whether with collateral or otherwise for which the contracted consideration is yet to be received. The Company's major customer base are Industrial, Commercial, Non Commercial, Domestic and CNG. The Commercial and Marketing department has established a credit policy for each category of customer viz. industrial, domestic, commercial, non-commercial and CNG. The Company raises the invoice for quantities sold based on periodicity as per the agreement. Sales are subject to security deposit and/or bank guarantee clauses to ensure that in the event of non-payment the company's receivables are secured. In case of short/non receipt of security deposit/or bank guarantee, the Company is exposed to credit risk to that extent. For sales to domestic customers for household purposes like cooking, geyser application, etc., invoices are raised periodically. Security deposits along with connection deposits are taken for mitigation of potential credit risk arising in the event of non- payment of invoices. Company is exposed to credit risk beyond the value of deposits. CNG sales made through operators of the CNG stations owned by the Company and CNG Franchises outlet are exposed to credit risk as amounts so collected is deposited/transferred in company bank account on next working day. Bank Guarantee / Security Deposit is taken to mitigate the credit risk. In case of short/non receipt of security deposit/or bank guarantee, the Company is exposed to credit risk to that extent. For CNG sales made through Oil Marketing Companies (OMCs), the Company raises the invoice for quantities sold based on periodicity as per the agreement. The OMCs are well established companies, where no significant credit risk is anticipated. The Company provides for allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables. All trade receivables are reviewed and assessed for default on regular basis. Our historical experience of collecting receivables, supported by the level of default, is that credit risk is low. Credit risk is considered high when the counter party fails to make contractual payment within 180 days of when they fall due. The risk is determined by considering the business environment in which the company operates and other macro economic factors. Assets are written off when there are no reasonable expectation of recovery such as debtor declaring bankruptcy or failing to engage in a repayment plan with the Company. Where receivables have been written off the company continues to engage in enforcement activity to attempt to recover the receivables. where recoveries are made, these are recognised in the statement of profit and loss. The maximum exposure to credit risk for trade and other receivables by geographic region was as follows: ( in Crores)` Carrying amount st st 31 March, 2025 31 March, 2024 India 1,048.96 1,051.13 Other regions - - Total 1,048.96 1,051.13 Expected credit loss for Trade receivables under Simplified Approach ( in Crores)` Carrying amount st st 31 March, 2025 31 March, 2024 Neither past due nor impaired 859.70 870.97 Past due 1–180 days 141.80 94.79 Past due 181 to 365 days 11.29 15.41 Past due 366 to 1095 days 25.81 60.47 Greater than 1095 days 10.36 9.51 1,048.96 1,051.13 Less: Expected credit losses (Allowance for bad and doubtful) 24.99 21.29 Carrying amount of Trade Receivable (net of impairment) 1,023.97 1,029.84 258 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Particulars Particulars Note 45 Financial Instruments (fair Value Measurements) and Financial Risk Management ...(continued ) 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED In addition to the historical pattern of credit loss, the Company has considered the likelihood of increased credit risk and consequential defaults considering emerging economic situations. The assessment is based on management estimates considering the nature of receivables and the market conditions. Movement in Allowance for bad and doubtful Trade receivable (` in Crores) The impairment provisions above are based on management judgment / assumptions about risk of default and expected loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the company's past history as well as forward looking estimates at the end of each reporting period. (b) Security deposits (given) Company has given security deposit to various government authorities (like Municipal corporation, Nagarpalika, Grampanchayat, Road & building division and Irrigation department -of Govt. of Gujarat etc. ) for the permission related to work of executing / laying pipeline network in their premises / jurisdiction. Being government authorities, the Company has no major credit risk. Movement in Allowance for bad and doubtful Security deposits-Project authority (` in Crores) The impairment provisions for financial assets - Security Deposit as disclosed above are based on management judgment / assumptions about risk of performance default . The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the company's past history as well as forward looking estimates at the end of each reporting period. (c) Other financial assets The company maintains its Cash and cash equivalents, bank balances and deposits with financially strong banks and financial institutions having good reputation, good past track record and high quality credit rating and also reviews their credit- worthiness on an on-going basis. Investments are made in credit worthy companies / group companies. Loan and advances to employees are considered good in nature and hence the Company does not have exposure to any credit risk. All other financial assets are of low credit risk and considered good. iii. Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. Short term liquidity requirements comprises mainly of trade payables arising in the normal course of business and is managed primarily through internal accruals and/or short term borrowings. Long term liquidity requirement is assessed by the management on periodical basis and managed through internal accruals as well as from undrawn borrowing facilities. Financing arrangement The Company had access to the following undrawn borrowing facilities at the end of the reporting period: (` in Crores) 259 st Notes to Consolidated financial statements for the year ended 31 March, 2025 st st Particulars 31 March, 2025 31 March, 2024 Opening Allowance for bad and doubtful Trade receivable 21.29 19.74 Add: Provision during the year 4.93 1.55 Less: Write off during the year 1.23 - Closing Allowance for bad and doubtful Trade receivable 24.99 21.29 st st Particulars 31 March, 2025 31 March, 2024 Opening Allowance for bad and doubtful Security deposits 9.27 10.43 Provision during the year 0.72 1.42 Recovery/Adjustment during the year (2.66) (2.58) Write off during the year - - Closing Allowance for bad and doubtful Security deposits 7.33 9.27 st st Particulars 31 March, 2025 31 March, 2024 Floating rate Expiring within one year (working capital, bank overdraft and other facilities) 1,212.51 1,462.92 Expiring beyond one year (working capital, bank overdraft and other facilities) - - Total 1,212.51 1,462.92 Note 45 Financial Instruments (fair Value Measurements) and Financial Risk Management ...(continued ) 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED Exposure to liquidity risk The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements. (` in Crores) - Other current financial liabilities include customer deposits which are considered repayable on demand. - The gross inflows/(outflows) disclosed in the above table represent the contractual undiscounted cash flows relating to non-derivative financial liabilities held for risk management purposes and which are not usually closed out before contractual maturity. iv. Market risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Financial instruments affected by market risk include loans and borrowings, deposits and FVTOCI investments. a) Currency risk The functional currency of the Company is Indian Rupee (`). The Company's transactions are majorly denominated in INR and the quantum of the foreign currency transactions being immaterial, the company is not exposed to currency risk on account of payables and receivables in foreign currency. The company does not have any exports. Import amount to 0.00 % (Previous Year 0.06 %) of total consumption of stores and spares, this is not perceived to be a major risk. b) Interest rate risk Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates. During the period, the Company does not have any long term borrowings at fixed rate and has not entered into interest rate swaps for its exposure to long term borrowings at floating rate. (` in Crores) (` in Crores) 260 st Notes to Consolidated financial statements for the year ended 31 March, 2025 st 31 March, 2025 st 31 March, 2024 Carrying amount Carrying amount Non-derivative financial liabilities Non-current borrowings - - - - - - Non-current-Lease Liabilities 115.16 174.31 - 34.75 61.93 77.63 Current Borrowings - - - - - - Lease Liabilities 34.82 43.14 43.14 - - - Trade and other payables 719.94 719.94 719.94 - - - Other current financial liabilities 1,987.17 1,987.17 1,987.17 - - - Total 2,857.09 2,924.56 2,750.25 34.75 61.93 77.63 Non-derivative financial liabilities Non-current borrowings - - - - - - Non-current-Lease Liabilities 117.77 177.68 - 36.70 60.72 80.26 Current Borrowings - - - - - - Lease Liabilities 32.49 40.56 40.56 - - - Trade and other payables 700.21 700.21 700.21 - - - Other current financial liabilities 1,908.19 1,908.19 1,908.19 - - - Total 2,758.66 2,826.64 2,648.96 36.70 60.72 80.26 Total Total Undiscounted Contractual cash flows Undiscounted Contractual cash flows Less than 12 months Less than 12 months 1-2 years 1-2 years 2-5 years 2-5 years More than 5 years More than 5 years st st Term loan As at 31 As at 31 March, 2025 March, 2024 Non-current - Borrowings - - Current portion of Long term borrowings - - Total - - Note 45 Financial Instruments (fair Value Measurements) and Financial Risk Management ...(continued ) 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED st st *There are no interest bearing loans and borrowings by the Company as on 31 March 2025 and 31 March 2024. The Company’s adjusted net debt to equity ratio is as follows. ( in Crores)` Long term borrowings* - - Total equity 8,489.64 7,722.48 Debt equity ratio - - Long term borrowings* - - Short term borrowings - - Interest bearing borrowings - - Less : Cash and bank balances 359.40 926.12 Adjusted net debt - - Adjusted net debt to adjusted equity ratio - - As atst 31 March, 2025 As atst 31 March, 2024 Particulars 261 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Sensitivity analysis Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of change in interest rates. The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss, and the Company does not have any designate derivatives (interest rate swaps). Therefore, a change in interest rates at the reporting date would not affect profit or loss. c) Commodity Price Risk Risk arising on account of fluctuations in price of natural gas is mitigated by ability to pass on the fluctuations in prices to customers over period of time. The company monitors movements in the prices closely on regular basis. d) Equity Price Risk The Company do not have any investment in quoted equity shares hence not exposed to equity price risk. Note 46 CAPITAL MANAGEMENT Total equity as shown in the balance sheet includes equity share capital, general reserves and retained earnings. st There are no interest bearing loans and borrowings by the Company as on 31 March 2025. The Company's objectives when managing capital is to Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders. The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure. The management monitors the return on capital as well as the level of dividends to shareholders. The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘adjusted equity’. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings, less cash and bank balances. Adjusted equity comprises all components of equity. Note 45 Financial Instruments (fair Value Measurements) and Financial Risk Management ...(continued ) Note 47 DISCLOSURE OF EMPLOYEE BENEFITS The Company has implemented Ind AS-19 on “Employee Benefits”. (a) Contributions to Defined Contribution Plan, recognised as expense for the year are as under: ( in Crores)` Sr. No. (i) Provident Fund 10.35 10.71 (ii) National Pension Scheme 4.94 4.94 Particulars 2024-2025 th 13 ANNUAL REPORT For the Year endedst 31 March, 2025 For the Year endedst 31 March, 2024
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GUJARAT GAS LIMITED *The Company expects that total outstanding gratuity liability payable as on 31.03.2025 will be paid to the gratuity trust within next 12 months. (b) Gratuity and Leave Encashment - Defined Benefit Plans (payable in future) Provision has been made for gratuity and leave encashment (earned leave) as per actuarial valuation. The principal assumptions used in actuarial valuation and necessary disclosures are as below: ` ( in Crores) Sr. Particulars No. Gratuity Leave Gratuity Leave Encashment Encashment A. Assumptions Discount rate 6.80% 6.80% 7.20% 7.20% Rate of return on plan assets 6.80% N.A. 7.20% N.A. Salary Escalation 9.25% 9.25% 10.00% 10.00% Withdrawal rate 3% at younger age reducing 3% at younger age reducing to 1% at old age to 1% at old age B. Change in Defined Benefit Obligations Liability at the beginning of the period 87.28 53.40 84.48 55.83 Transfer in/(out) obligation (0.13) - - - Current Service Cost 5.82 3.27 6.08 4.24 Interest Cost 6.13 3.78 6.19 4.12 Benefits Paid (5.59) (6.76) (3.96) (6.54) Actuarial (Gain) / Loss due to experience adjustment (4.14) (4.27) (8.24) (6.22) Actuarial (Gain) / Loss due to change in financial estimate (3.08) (1.97) 2.73 1.98 Total Liability at the end of the period 86.29 47.46 87.28 53.40 C. Change in Fair Value of plan Assets Opening fair Value of plan assets 84.80 - 81.35 - Transfer in/(out) plan assets (0.13) - - - Expected return on plan assets 6.16 - 6.18 - Return on plan assets excluding amounts included in interest income 0.36 - 1.21 - Contributions by employer - - 0.01 - Benefits Paid (5.59) - (3.96) - Closing fair Value of plan assets 85.60 - 84.80 - D. Expenses Recognised in the Statement of Profit & Loss Current Service Cost 5.82 3.27 6.08 4.24 Interest Cost 6.13 3.78 6.19 4.12 Expected return on plan assets (6.16) - (6.18) - Actuarial (Gain) / Loss (7.59) (6.24) (6.72) (4.24) Expenses recognised in Statement of Profit & Loss 5.79 0.81 6.08 4.12 Expenses recognised in other comprehensive income (7.59) (6.72) E. Balance Sheet Reconciliation Opening Net Liability 2.48 53.40 3.13 55.83 Employee Benefit Expense 5.79 0.81 6.08 4.12 Amounts recognized in Other Comprehensive Income (7.59) - (6.72) - Contributions by employer - - (0.01) - Benefits Paid - (6.76) - (6.54) Closing Liability 0.69 47.46 2.48 53.40 F. Current/Non-Current Liability : Current* 0.69 1.55 2.48 1.89 Non-Current - 45.91 - 51.51 262 st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT st 31 March, 2024st 31 March, 2025
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GUJARAT GAS LIMITED (c) Amounts recognised in current year and previous four years ( in Crores)` st st st st st Sr. Particulars As at 31 As at 31 As at 31 As at 31 As at 31 No. March, 2025 March, 2024 March, 2023 March, 2022 March, 2021 A. Gratuity Present value of Defined Benefit Obligation 86.29 87.28 84.48 83.01 76.37 Fair value of Plan Assets 85.60 84.80 81.35 82.85 75.85 (Surplus) / Deficit in the plan 0.69 2.48 3.13 0.16 0.52 Actuarial (Gain) / Loss on Plan Obligation (7.22) (5.51) (5.15) (1.05) 1.18 Actuarial Gain / (Loss) on Plan Assets 0.36 1.21 (2.08) (0.29) 1.98 B. Earned Leave (Leave encashment) Present value of Defined Benefit Obligation 47.46 53.40 55.83 55.40 52.05 Actuarial (Gain) / Loss on Plan Obligation (6.24) (4.24) (3.18) (0.91) 2.93 C. Long Service Award Present value of Defined Benefit Obligation 1.34 1.14 1.05 1.00 0.97 Actuarial (Gain) / Loss on Plan Obligation - - - - - Gratuity Leave Encashment Gratuity Leave Encashment Discount rate (0.5% movement) 81.90 44.70 91.06 50.48 Salary growth rate (0.5% movement) 90.91 50.40 81.99 44.74 Withdrawal rate (W.R.) varied by 10 % 86.06 47.29 86.52 47.64 Gratuity Leave Encashment Gratuity Leave Encashment Discount rate (0.5% movement) 82.80 50.15 92.16 56.96 Salary growth rate (0.5% movement) 91.99 56.85 82.91 50.22 Withdrawal rate (W.R.) varied by 10 % 86.99 53.16 87.56 53.65 st As at 31 March, 2025 st As at 31 March, 2024 Particulars Particulars Increase Increase Decrease Decrease (d) Sensitivity analysis Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below. (e) Gratuity Benefits Plan: The benefit is governed by the Payment of Gratuity Act, 1972 (as amended). The Key features are as under: Features of the defined benefit plan Remarks Benefit offered 15 / 26 × Salary × Duration of Service Salary definition Basic Salary including Dearness Allowance (if any) Benefit ceiling No ceiling Vesting conditions 5 years of continuous service (Not applicable in case of death / disability) Benefit eligibility Upon Death or Resignation / Withdrawal or Retirement Retirement age 60 years ( in Crores)` ( in Crores)` 263 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 47 DISCLOSURE OF EMPLOYEE BENEFITS ...(continued ) 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED (i) Entity’s responsibilities for the governance of the plan Risk to the Plan Following are the risk to which the plan exposes the entity : A. Actuarial Risk: It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons: - Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected. - Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate. - Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date. B. Investment Risk: For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period. C. Liquidity Risk: Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign / retire from the company there can be strain on the cash flows. D. Market Risk: Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate / government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date. E. Legislative Risk: Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation / regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective. (ii) The company has participated in Group Gratuity Scheme Plan with Life Insurance Corporation of India (LIC), HDFC Life Insurance Co. Ltd, SBI Life Insurance Co. Ltd. Aditya Birla Sun Life Insurance Co. Ltd. and Bajaj Allianz Life Insurance Company Ltd (collectively referred as Insurance Co.) through Gratuity Trust to meet its gratuity liability. The present value of the plan assets represents the balance available at the end of the year. The total value of plan assets is as certified by the various life insurance co. (a) Composition of the plan assets: st st st Particulars 31 March, 2025 31 March, 2024 31 March, 2023 Bank balance 0.00% 0.00% 0.00% Policy of insurance 100.00% 100.00% 100.00% Others 0.00% 0.00% 0.00% (b) The trustees of the plan have outsourced the investment management of the fund to an insurance company. The insurance company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the type of investments that can be held by the fund, it may not be possible to explicitly follow an asset-liability matching strategy to manage risk actively in a conventional fund. st (c) Expected benefit payments for gratuity as on 31 March, 2025. (Undiscounted) Particulars 1-3 years 4-5 years 6 years & Above Cash flow ( ` in Crores) 16.71 16.63 170.59 Distribution ( in %) 8.20% 8.10% 83.70% 264 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 47 DISCLOSURE OF EMPLOYEE BENEFITS ...(continued ) 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 265 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 47 DISCLOSURE OF EMPLOYEE BENEFITS ...(continued ) st (f) Expected benefit payments as on 31 March 2025 for Privilege Leave encashment benefits. (Undiscounted) (g) Other Notes: (i) The expected rate of return on Plan Assets is determined considering several applicable factors, mainly the composition of Plan Assets held, assessed risks, historical results of return on Plan Assets and the Company’s policy for the Plan Assets management. (ii) The actuarial valuation takes into account the estimates of future salary increases, inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market. The management has relied on the overall actuarial valuation conducted by the actuary. (iii) The company has provided long service award benefits to its employees who completed 15/20/25 Years of employment with company. Long Service Awards are recognised as a liability based on actuarial valuation of the defined benefit obligation as at the balance sheet date. Accordingly, expenses of ` 0.25 crores (previous year ` 0.16 crores) has been charged to the Statement of Profit and Loss towards Long service awards. The Company has recognised Current Liability of ` 0.14 crores (Previous year ` 0.07 crores) and Non- Current Liability of ` 1.20 crores (Previous year ` 1.07 crores) as at st 31 March, 2025 and Discount rate considered for current year is 6.80 % (previous year 7.20 %). (iv) The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come in to effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period when the Code becomes effective. (v) All assets and liabilities of ESOP Trust had been liquidated during previous year and ESOP trust has been wound up in September 2023. Note 48 RELATED PARTY TRANSACTIONS As per the Indian Accounting Standard-24 on “Related Party Disclosures”, list of parent & subsidiary of the Company are as follows. (a) Parent Entity Gujarat State Petroleum Corporation Limited (GSPC) - Ultimate Holding Company Gujarat State Petronet Limited (GSPL) - Holding Company (b) Subsidiary / Associate / Enterprise Controlled by the Company Guj Info Petro Limited- GIPL - Associate Gujarat Gas Limited Employees Group Gratuity Scheme - Enterprise controlled by the Company th Gujarat Gas Limited Employee Stock Option Welfare Trust - Enterprise controlled by the Company (dissolved on 30 September, 2023) Particulars 1-3 years 4-5 years 6 years & Above Cash flow (` in Crores) 7.42 6.89 111.49 Distribution ( in %) 5.90% 5.40% 88.70% 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 266 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 48 RELATED PARTY TRANSACTIONS (continued ) ... Sr. Name of Related Party Relationship Nature of Transactions & Balances For the year For the yearst st No. ended 31 ended 31 March, 2025 March, 2024 Purchase of Natural Gas Rent Expense Brokerage Services for NG Trading Reimbursement of Expenses(Net) Recharge of Salary - Expense Balance at period end Amount Receivable/(Payable) Investment at Period end Bank Guarantee by GGL to GSPC Letter of Credit - by GGL to GSPC Gas Transmission Expense Transportation settlement charges O&M Charges - Expense Reimbursement of Expenses Recharge of Salary - Expenses Dividend Paid Rent Expense Right of Way Expense - Expenses Gas connectivity (Hooking up) Expenses O&M Charges - Income Rent - Income Reimbursement of Expenses - Income Recharge of Salary - Income Income from Material sale Deposit Given - Paid / (Refund) [Other than Connectivity] Deposit Given - Paid / (Refund) [For Connectivity] Balance at the period end Amount Receivable/(Payable) Deposits Asset / (Liability) - Net [Other than Connectivity] Deposit (For Connectivity) Bank Guarantee - by GGL to GSPL Gas Transportation Expense Compression Charges Gas Transportation Charges - Income Reimbursement of Expenses - Income Balance at the period end Amount Receivable/(Payable) Bank Guarantee - by GGL to SGL Web Development, Consultancy & Bandwidth Charges Software Maintenance Expenses Reimbursement of Expenses - Income Dividend Received Balance at the period end Amount Receivable/(Payable) Investment at Period end Gujarat State Petroleum Corporation Limited - GSPC Ultimate Holding Company Gujarat State Petronet Limited - GSPL Holding Company 1 2 Sabarmati Gas Limited - SGL Associate of Holding Company 3 Guj Info Petro Limited- GIPL Associate4 10,996.65 0.00 1.83 2.02 1.10 (235.48) 35.20 852.03 199.09 394.73 - 0.92 0.05 0.27 211.05 4.08 0.19 0.49 0.04 0.03 0.31 0.89 1.95 (0.26) 21.63 (15.09) 2.09 86.63 29.34 0.83 4.93 0.48 0.10 (0.13) 0.20 0.00 1.13 0.10 1.68 (0.09) 0.03 10,784.91 0.00 1.18 0.71 0.87 (290.47) 35.04 715.04 507.01 474.28 1.93 0.35 0.01 0.04 247.96 3.99 0.22 - 0.04 0.03 0.43 0.87 - (0.11) 13.67 (21.37) 2.35 64.99 28.82 0.80 3.67 0.44 0.42 (0.14) 0.20 0.02 0.71 0.10 1.64 (0.05) 0.03 st Related Party Transactions for the Year ended 31 March, 2025 ( in Crores)` 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 267 st Notes to Consolidated financial statements for the year ended 31 March, 2025 ( in Crores)` Sr. Name of Related Party Relationship Nature of Transactions & Balances For the year For the yearst st No. ended 31 ended 31 March, 2025 March, 2024 Dividend Paid Reimbursement of Expense - Income Balance at the period end Amount Receivable/(Payable) Deposits Asset / (Liability) - Net Rent Expenses Gas Transportation Expense Transportation Settlement charges O&M Charges Reimbursement of Expenses( Net) Right of Way Expense - Exps Interest Paid Income from Material sale Deposit Given - Paid / (Refund) [Other than Connectivity] Balance at the Year end Amount Receivable/(Payable) Deposits Asset / (Liability) - Net [Other than Connectivity] Deposit (For Connectivity) Bank Guarantee - by GGL to GIGL Transportation Settlement charges Reimbursement of Exps.-Income Balance at the period end Amount Receivable/(Payable) CSR Expense Reimbursement of Expenses - Income Balance at the period end Amount Receivable/(Payable) Sitting Fees- (Deposited in Govt. Treasury Account) Nil Out of Pocket Expenses - Nil Gujarat State Energy Generation Limited - GSEG Subsidiary of Ultimate Holding Company (w.e.f 18.10.2024) Associate of Ultimate Holding Company (up to 17.10.2024) GSPL India Gasnet Limited - GIGL Joint Venture of Holding Company 5 6 0.75 0.05 - (0.10) 0.74 2.98 - 1.15 0.00 - - 0.09 - (0.05) 0.18 50.15 0.60 0.51 - 0.00 - 0.05 0.05 - 0.89 0.09 0.08 (0.10) 0.74 6.28 5.49 0.89 0.00 0.06 0.00 - 0.02 (0.79) 0.18 50.15 0.60 1.20 0.00 - 6.41 0.08 - - GSPL India Transco Limited Joint Venture of Holding Company 7 Social Welfare Trust Subsidiary of Ultimate Holding Company 8 GSPC Pipavav Power Company Ltd. Subsidiary of Ultimate Holding Company 9 Shri. Milind Torawane, IAS - Managing Director th (W.e.f 13 April, 2023) Key Managerial Person 10 st Note 48 Related Party Transactions for the Year ended 31 March, 2025 (Continued….) 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 268 st Notes to Consolidated financial statements for the year ended 31 March, 2025 st Note 48 Related Party Transactions for the Year ended 31 March, 2025 (Continued….) Notes 1 The company deals on regular basis with entities (apart from Group Companies) directly or indirectly controlled by the State Government of Gujarat. Such entities are collectively referred as “Government related entities” and includes companies in which Government of Gujarat has majority shareholding, government authorities, agencies, affiliations and other organizations. Apart from transactions with its group companies, the Company has transactions with government related entities, including but not limited to the followings: - Sale and Purchase of Natural Gas - Investment, renewal & redemption of funds/deposits - Interest income from investments in deposits - Payment of Dividend - Rendering and Receiving Services - Payment of Rent - Use of Public Utilities Below are the details of significant tranactions carried with Government Related Entities. In order to determine the level of significance of the transaction with Government Related Entities, threshold limits have been considered as prescribed in the defintion of "Material Related Party Transaction" of GGL's "Policy on Materiality of Related Party Transactions and dealing with Related Party Transactions". Name of Related Party Relationship Nature of Transactions & Balances For the Year st ended 31 March, 2025 Interest received - Income 93.02 40.15 (including accrued Interest) Deposit - Placed/ Renewed 13,431.77 12,790.01 Deposit - Withdrawn / Redemed 12,728.73 12,619.39 Balance at the period end Deposits Asset 1,518.93 795.73 (including accrued Interest) Gujarat State Financial Services Limited - GSFS Government Related Entity For the Year st ended 31 March 2024 ( in Crores)` 2024-2025 th 13 ANNUAL REPORT 2 The company sells natural gas to domestic, commercial, industrial and CNG consumers. The above related party transaction do not include the transactions of Gas sales to the related parties in ordinary course of business, as all such transactions are done at arm’s length basis. As per Para 11(c)(iii) of Ind AS-24 “Related Party Disclosures”, normal dealings of Company with related parties by virtue of public utilities are excluded from the purview of Related Party Disclosures. 3 In compliance to the provisions of Section 2(51) of Companies Act-2013, the following are the details of remuneration paid/payable to KMP. ( in Crores)` th Shri. Nitesh Bhandari – Chief Financial Officer (upto 08 February, 2024) [Refer Note (i)] - 1.30 Short Term Benefits – NA (P.Y. ` 1.14 crores) Post-Employment Benefits – NA (P.Y. ` 0.16 crores) Shri. Sandeep Dave – Company Secretary [Refer Note (i) & (ii)] 0.77 0.71 Short Term Benefits – ` 0.66 crores (Previous year ` 0.61 crores) Post-Employment Benefits – ` 0.11 crores (Previous year ` 0.10 crores ) For the Year st ended 31 March, 2025 For the Year st ended 31 March, 2024 Particulars
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GUJARAT GAS LIMITED 269 Notes: (i) Remuneration does not include vehicle insurance, mediclaim insurance, life insurance, etc which are extended as per HR Policy. (ii) Remuneration paid to Shri. Sandeep Dave (Company Secretary) is based on the amount recharged by Gujarat State Petroleum Corporation Limited (GSPC). The remuneration reported do not included arrears paid of 0.01 Crores for years ` prior to FY 2024-25. 4 Details of Sitting Fees & Out of Pocket Expenses (in total) paid to Directors other than Managing Director Sr. Particulars For the year ended For the year ended st st No. 31 March, 2025 31 March, 2024 1. Shri Pankaj Joshi,IAS # ( w.e.f 07.02.2025) 0.00 - 2. Shri S. J. Haider, IAS # ( w.e.f 13.08.2024) 0.01 - 3. Dr. T. Natarajan, IAS # ( w.e.f 11.09.2024) 0.02 - 4. Shri Balwant Singh, IAS (Retd.) 0.04 0.04 5. Prof. Yogesh Singh 0.02 0.02 6. Shri Bhadresh Mehta 0.04 0.04 7. Dr. Rekha Jain 0.03 0.03 8. Shri Raj Kumar, IAS # (up to 31.01.2025) 0.01 0.01 9. Shri. J.P.Gupta, IAS # (up to 06.08.2024) 0.01 0.01 10. Smt. Mamta Verma,IAS # (up to 02.08.2024) 0.00 0.01 11. Smt. Mona Khandhar,IAS # (up to 09.08.2023) - 0.01 ( in Crores)` st Note 48 Related Party Transactions for the Year ended 31 March, 2025 (Continued….) st Notes to Consolidated financial statements for the year ended 31 March, 2025 # Sitting fees payable to directors are deposited in Government Treasury Account 5 All transactions with related parties were carried out in the ordinary course of business and at arms length. 6 All transactions amount disclosed above are inclusive of tax. 7 Bank Guarantees, Letter of Credits provided to related parties are for routine business activity such as Gas procurement, Transmission, Compression service etc. 8 Deposits given/ received (other than investment made in GSFS) to related parties are for routine business activity. 9 Figures INR 0.00 denotes amount less than INR 50,000/-. Note 49 RECEIVABLES, CONTRACT ASSETS AND CONTRACT LIABILITIES (WITH REFERENCE TO IND AS-115 - REVENUE FROM CONTRACTS WITH CUSTOMERS) Revenue recognised in the statement of profit and loss : Revenue from contracts with customers (refer note 31): Sale of Natural gas is the main activity of city gas distribution business and other operating income is incidental to sale of natural gas. Company sells and distributes natural gas in India. Sale of natural gas includes excise duty but excludes VAT and GST collected from the customers on behalf of the Government. All the revenue mentioned above are earned by transfer of goods or services at a point of time. Reconciliation of the amount of revenue recognised in the statement of Profit and Loss with the contracted price ( in Crores)` 2024-2025 th 13 ANNUAL REPORT Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Revenue as per contracted price 17,184.97 16,292.97 Adjustments Provision for revenue contract price - - Revenue from contract with customers 17,184.97 16,292.97
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GUJARAT GAS LIMITED 270 * Deferred Revenue includes connection, service and fitting income , yearly fees income etc. Contract asset is the right to consideration in exchange for goods or services transferred to the customer. Contract liability is the entity’s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer in advance. Contract assets (unbilled receivables) are transferred to receivables when the rights become unconditional and contract liabilities are recognised as and when the performance obligation is satisfied. Performance obligations -Connection, Service and Fitting Income Connection charges from customers deferred over the period when the performance obligation is satisfied: Industrial Customers: The performance obligations as per the contractual arrangement with the customer is to deliver gas over the tenure of the contract. Consequently, the connection charges is to be deferred over the contract period. Domestic Customer: The connection charges is to be deferred over the period of delivery of gas. It is reasonably expected by the Company that the gas is procured by the customer and supplied by the Company on a perpetual basis. Consequently the connection charges are to be deferred over the useful life of the connection facility (i.e. 18 years). Note 50 LEASES (Ind AS 116) st The Company has adopted Ind AS-116 ‘Leases', effective from 1 April, 2019, using modified retrospective approach. 50.1 The Company as a lessee The Company has taken various assets on lease primarily consist of leases for land, buildings, vehicles, Plant & machinery, Way leave charges and Hooking up charges. Under Ind AS-116, the Company recognises right-of-use assets and lease liabilities. The weighted average incremental borrowing rate of 8.59% p.a. has been applied to lease liabilities recognised in the balance sheet at the date of initial application. The likely weighted average incremental borrowing rate @ 7.75%-8.00 % p.a. has been applied to lease liabilities recognised in the balance sheet during the period. 50.1.1 The Company used a number of practical expedients summarised here below: 1) Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on the date of initial application. 2) Applied the exemption not to recognize right-of-use assets and liabilities for leases of low value assets. The following table provides information about receivables, contract assets and contract liabilities from contract with customers: ( in Crores)` st st Sr. No. Particulars As at 31 March, 2025 As at 31 March, 2024 (i) Receivables Trade receivables 873.95 890.68 Unbilled Revenue 150.02 139.16 Total Trade receivables 1,023.97 1,029.84 (ii) Current Financial Liabilities - Others (Contract liabilities) Security Deposits from customers (Including accrued interest) 1,574.97 1,469.64 Security Deposit from customers towards MGO 131.46 130.74 Total Current Financial Liabilities - Others (Contract liabilities) 1,706.43 1,600.38 (iii) Contract liabilities (Current Liabilities - Others) Advance from customers 65.97 64.96 Total contract liabilities (Current Liabilities - Others) 65.97 64.96 (iv) Deferred Revenue* Non-Current 75.99 73.05 Current 12.10 11.84 Total Deferred Revenue 88.09 84.89 (v) Income recognised during the year out of opening balance 11.64 11.83 of deferred revenue st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 49 RECEIVABLES, CONTRACT ASSETS AND CONTRACT LIABILITIES (Continued….) 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 271 ( in Crores)` A Particulars Lease Assets* FY 2024-25 FY 2023-24 Gross Carrying Value Opening balance 339.56 316.75 Addition during the year 178.20 28.79 Other adjustment/ Reassessment (0.16) (0.98) Deduction during the year 4.63 5.00 Closing Balance (A) 512.97 339.56 Accumulated amortization Opening balance 87.32 58.36 Addition during the year 45.91 33.41 Other adjustment/ Reassessment - - Deduction during the year 4.63 4.45 Closing Balance (B) 128.60 87.32 Net Block ( A-B) 384.37 252.24 * Refer note 5.3 50.1.2 Nature of the lease transaction: Land Leases - The Company has taken several plots of land on lease for setting up CNG, City Gas Station, CPRS/DPRS/DCS station and for site office purpose. The lease term mentioned in the agreements ranges from 11 months to 99 years. Lease agreements are renewable on mutually agreed terms and do not contain any non-cancellable period. In certain contacts, the Company is restricted from assigning and subletting the leased assets. Building Leases - The Company has taken various office/warehouse buildings on lease with monthly and annual payment terms. The lease term mentioned in the agreements ranges from 11 months to 9 years. Most of the agreements are renewable on mutually agreed terms, some of them are having non-cancellable period whereas few agreements are silent on renewal. In certain contacts, the Company is restricted from assigning and subletting the leased assets. Other Leases The Company has also taken various commercial vehicles, CNG Cascade, booster compressor, way leave, hooking up facility (connectivity) and IT equipment etc. on lease. The lease term mentioned in the agreements ranges from 6 months to 25 years. Some portion of the lease rentals is based on usage of the equipment considered as variable lease payment. Lease rentals include lease and non lease component viz. manpower, fuel cost, repair and maintenance etc. and only hiring portion is considered for ROU accounting. 50.1.3 The following is the carrying amounts of Company's Right of use assets and the movement in lease liabilities during the year st ended 31 March, 2025. st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT Particulars Lease liabilities* FY 2024-25 FY 2023-24 Opening balance 150.26 152.32 Addition during the year 54.63 28.79 Adjustment on account of reassessment /modification/termination (0.16) (1.55) Add: Interest Expenses 10.15 10.47 Less: Payments (64.90) (39.77) Closing Balance 149.98 150.26 Current 34.82 32.49 Non-current 115.16 117.77 * Refer note 21 B. Movement in Lease liability with Current/Non current break up:- (` in Crores)
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GUJARAT GAS LIMITED 272 *Leases charges-Others includes rental charges of all assets that have lease period of 12 months or less, remaining lease period of 12 months or less as on transition date, rental charges of low value assets, variable lease payments and component of taxes of ROU lease charges. 50.1.4 Amounts recognized in profit or loss st 50.1.5 The total Cash outflow for ROU assets is ` 54.75 crores (Previous year ` 29.30 crores) for the year ended 31 March, 2025 (excluding interest). 50.1.6 Contractual maturity analysis of undiscounted lease liabilities is given below: ( in Crores)` st st Particulars As at 31 As at 31 March, 2025 March, 2024 Less than one year 43.14 40.56 One to two years 34.75 36.70 two to five years 61.93 60.72 More than five years 77.63 80.26 Total 217.45 218.24 Particulars For the year ended For the year endedst st 31 March, 2025 31 March, 2024 Lease charges-Others* (Refer Note 38) 34.28 39.73 Interest expenses (Refer Note 36) 10.15 10.47 Depreciation charge for right-of-use assets (Refer Note 37) 45.91 33.41 1 Promoters - - - - 2 Directors - - - - 3 KMPs - - - - 4 Related Parties - - - - Total - - - - Maturity Analysis of lease liabilities (undiscounted): (` in Crores) 50.2 The Company as a lessor The Company accounted for its leases in accordance with Ind AS-116. Note 51 ADDITIONAL REGULATORY INFORMATION DISCLOSURES Note 51.1 Loans and advances granted to specified person: (A) Loans / Advance in the nature of loan - Repayable on Demand: (` in Crores) Sr. No st As on 31 March, 2025 st As on 31 March, 2024 Type of Borrowers Amount Outstanding - Gross Carrying Amount % of Total Loan and Advance in the Nature of Loan Amount Outstanding - Gross Carrying Amount % of Total Loan and Advance in the Nature of Loan st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 50 LEASES ...(continued ) 2024-2025 th 13 ANNUAL REPORT 1 Promoters - - - - 2 Directors - - - - 3 KMPs - - - - 4 Related Parties - - - - Total - - - - (B) Loans / Advance in the nature of loan - without specifying any terms or period of repayment: (` in Crores) Sr. No st As on 31 March, 2025 st As on 31 March, 2024 Type of Borrowers Amount Outstanding - Gross Carrying Amount % of Total Loan and Advance in the Nature of Loan Amount Outstanding - Gross Carrying Amount % of Total Loan and Advance in the Nature of Loan
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GUJARAT GAS LIMITED 273 Note 51.2 Relationship with struck off companies: Based on the information available with the company, the required disclosures are given below: Figures INR 0.00 denotes amount less than INR 50,000/-. Note 51.3 Willful Defaulter The company is not declared as wilful defaulter by any bank or financial institution or other lender. Note 51.4 Utilisation of borrowed funds The company has used the borrowings from banks for the specific purpose for which it was taken. The company has not taken any borrowings from financial institution. Note 51.5 Registration of charges or satisfaction with Registrar of Companies (ROC) The company has registered charge and satisfaction with ROC within statutory time period. Note 51.6 Details of Benami Property held The company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder, hence no proceedings initiated or pending against the company under the said Act and Rules. Note 51.7 Utilisation of borrowed funds, share premium and other funds The Company has not given any advance or loan or invested funds from borrowed funds or share premium or any other sources with the understanding that intermediary would directly or indirectly lend or invest in other person or entities including foreign entities identified in any manner whatsoever by or on behalf of the company as ultimate beneficiaries or provide any guarantee or security or the like to on behalf of ultimate beneficiaries. The Company has not received any fund from any person or entities including foreign entity (funding parties) with the understanding that the Company would directly or indirectly lend or invest in other person or entity identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiary) or provided any guarantee or security or the like on behalf of the ultimate beneficiary. Note 51.8 Compliance with number of layers of companies As the company is a Government Company, in terms of section 2(45) of the Companies Act, compliance with number of layers of the companies as per section 2(87) of the Companies Act read with Companies (Restriction on number of Layers) Rules 2017, is not applicable. Note 52 ADDITIONAL DISCLOSURES Note 52.1 Details of Crypto Currency or Virtual Currency The company has not traded or invested in Crypto currency or Virtual Currency during the period. Note 52.2 Undisclosed Income There is no transaction, which has not been recorded in books of accounts, that has been surrendered or disclosed as income during the period in tax assessments under the Income Tax Act, 1961. st As on 31 March, 2025: 1 Investment in securities NA Nil NA 2 Receivables NA Nil NA 3 Payables NA Nil NA 4 Shares held by struck off Company Equity share capital 0.00 Shareholder 5 Other outstanding balances (to be specified) NA Nil NA st As on 31 March, 2024: 1 Investment in securities NA Nil NA 2 Receivables NA Nil NA 3 Payables NA Nil NA 4 Shares held by struck off Company NA Nil NA 5 Other outstanding balances (to be specified) NA Nil NA Sr. No Relationship with struck off company if any Balance Outstanding Nature of transactionName of Struck of Companies st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 51 ADDITIONAL REGULATORY INFORMATION DISCLOSURES ...(continued ) 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 274 Note 53 RATIO ANALYSIS Ratio Analysis for the Financial Year 2024-25 Sr. No Reason for significant variance (25% or more) Variance % FY 2023-24 FY 2024-25DenominatorNumeratorParticulars st Notes to Consolidated financial statements for the year ended 31 March, 2025 Current Liabilities (Excl. Customer deposits) Shareholder’s Equity Interest on borrowings + Principal Repayments (routine instalments) Revenue from operations Average Shareholder’s Equity Avg. Capital Employed=Tangible Net Worth + Total Debt + Deferred Tax Liability Average investment Average Inventory (Natural Gas) Average Trade Receivable Average Trade Payables (Gas Purchase+ Transmission) Working Capital 2.10 1.64 28% - - - - - - 6.68% 7.02% -5% 14% 16% -9% 18% 20% -8% 1% 5% -76% 694.85 681.82 2% 15.01 14.40 4% 31.15 26.33 18% 11.05 18.78 -41% Mainly due to increase in deposits with financial institutions in current financial year. - - - - - Decrease in ratio as increase in fair value of unquoted investments in current year is lower than previous year - - - Due to Increase in working capital while annual turnover is at par with last year. Current Ratio (times) Debt-Equity Ratio (times) Debt Service Coverage Ratio (times) Net profit ratio (%) Return on Equity Ratio (%) Return on Capital employed (%) Return on investment (%)- unquoted Inventory turnover ratio Trade Receivables turnover ratio Trade payables turnover ratio Net capital turnover ratio Current Assets Debt consists of borrowings Earning for Debt Service = Net Profit after taxes + Non- cash expenses/adjustment + Interest -Lease payments Net Profit after tax Net Profits after taxes – Preference Dividend (if any) Profit before tax + Interest on borrowings Income generated from investments Cost of goods sold or sales Net Credit Sales Net Credit Purchases (Gas purchase + Transmission) Revenue from operations 1 2 3 4 5 6 7 8 9 10 11 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 275 Note 53 RATIO ANALYSIS ( Continued…..) Ratio Analysis for Previous Financial Year 2023-24 Sr. No Reason for significant variance (25% or more) Variance % FY 2022-23 FY 2023-24DenominatorNumeratorParticulars st Notes to Consolidated financial statements for the year ended 31 March, 2025 Current Liabilities (Excl. Customer deposits) Shareholder’s Equity Interest on borrowings + Principal Repayments (routine instalments) Revenue from operations Average Shareholder’s Equity Avg. Capital Employed=Tangible Net Worth + Total Debt + Deferred Tax Liability Average investment Average Inventory (Natural Gas) Average Trade Receivable Average Trade Payables (Gas Purchase+ Transmission) Working Capital 1.64 1.40 17% - - - - - - 7% 9% -21% 16% 24% -36% 20% 29% -32% 5% 19% -71% 681.82 781.48 -13% 14.40 16.29 -12% 26.33 32.88 -20% 18.78 30.35 -38% - - - - Decrease in profit as compared to previous year Decrease in profit as compared to previous year Decrease in ratio due to new investments made during the current financial year - - - Due to Increase in working capital while annual turnover is at par with last year. Current Ratio (times) Debt-Equity Ratio (times) Debt Service Coverage Ratio (times) Net profit ratio (%) Return on Equity Ratio (%) Return on Capital employed (%) Return on investment (%)- unquoted Inventory turnover ratio Trade Receivables turnover ratio Trade payables turnover ratio Net capital turnover ratio Current Assets Debt consists of borrowings Earning for Debt Service = Net Profit after taxes + Non- cash expenses/adjustment + Interest -Lease payments Net Profit after tax Net Profits after taxes – Preference Dividend (if any) Profit before tax + Interest on borrowings Income generated from investments Cost of goods sold or sales Net Credit Sales Net Credit Purchases (Gas purchase + Transmission) Revenue from operations 1 2 3 4 5 6 7 8 9 10 11 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 276 Note 54 CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE As per Section 135 of the Companies Act, 2013, a company needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. A CSR committee has been formed by the company as per the Act. CSR expenditure contains the following: 1 Gross amount required to be spent by the 35.46 36.58 company during the year. Less:- Prepaid CSR Expenses (excess spent) of earlier 0.80 - years brought forward and set off during the year Net amount required to be spent by the company 34.66 36.58 during the year. 2 Amount approved by the Board to be spent during the year 34.86 37.10 3 Amount of expenditure incurred on: (i) Construction/acquisition of any asset - - (ii) On purposes other than (i) above 6.46 8.99 4 The amount of shortfall at the end of the year out of 28.40 28.11 the amount required to be spent by the Company during the period 5 The reason for above shortfalls (if any) Pertains to various ongoing Pertains to various ongoing project of education, Training. project of education, Training. R&D, Environment R&D, Environment Sustainability Sustainability & Health 6 Amount transferred to unspent CSR Account related 28.40 28.11 to ongoing projects 7 The total of previous years’ shortfall amounts - - 8 Details of related party transactions in relation to - 6.41 CSR expenditure 9 Nature of CSR activities undertaken by the Company Environment Sustainability, Health Care, Environment Community Development, Sustainability, Community Education, Training and R&D, Development, Education, Income Generation Activities Training and R&D in Aspirational Blocks 10 Provision / Liability for unspent CSR Expenses: Opening Balance 36.59 16.35 Add: Provision created during the period 28.40 28.11 Less: Provision utilised during the period (12.26) (7.87) Closing Balance 52.73 36.59 11 Prepaid CSR Expenses (excess spent): Opening Balance 0.80 0.28 Add: Excess amount spent during the year 0.19 0.52 Less : Amount adjusted in current year (0.80) - Closing Balance (Available for set off in 0.19 0.80 succeeding years) 12 Total amount recognised in Statement of 35.46 36.58 Profit and Loss Sr. No FY 2023-24FY 2024-25Particulars ( in Crores)` st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 277 Details of expenditure incurred for CSR activities : (` in Crores) 1 Providing gas to Crematoriums (Environment / Community Development) 6.40 6.41 2 Muktidham Charitable Trust - contribution for Environment Sustainability and - 0.38 Ecological balance 3 Kaushalya Skill University - contribution for establishing the industry - 0.60 4.0 technology lab 4 Aspire Disruptive Skill Foundation - Imparting industry responsive skill - 0.76 development to needy and unemployed youth 5 Apang Manav Mandal - Purchase of bus for specially abled students - 0.31 6 Vapi Industries Association - Construction of a new building for Kanya - 0.24 Ashram Shala 7 Blind People's Association, India - Providing artificial limbs to persons with - 0.15 disabilities 8 Impact Assessment study for CSR Projects 0.06 0.14 9 Prime Minister's internship scheme (Education & Training) 0.00 - Total 6.46 8.99 Sr. No FY 2023-24FY 2024-25Particular of Expenditure during the year st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 54 CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE ( Continued…..) Figures INR 0.00 denotes amount less than INR 50,000/-. Details of amount spent for CSR activities for earlier year ongoing project : (` in Crores) 1 Imparting industry responsive skill development to needy and unemployed 0.77 - youth (Training) 2 Construction of a new building for Kanya Ashram Shala (Education) 0.72 - 3 Income Generation Activities in Aspirational Blocks - GLPC (Micro enterprise 2.55 - development, Customer hiring center, cattle feed unit, Mangalam Canteen, Millet based value chain etc) -Income generaton 4 Construction & Development of Anganwadis in various districts of 6.95 - Gujarat (Education) 5 PNG connection and gas geysers for two shelter homes (Environment) 0.02 - 6 Providing gas to Crematoriums (Environment / Community Development) 1.09 - 7 Upgradation of Patient Care Tertiary Care & heart lung transplant program - 6.30 - UNMICRC (Preventive Healthcare) 8 Research on green hydrogen - GERMI (Research & Development) 0.10 1.02 9 Research on biogas - GERMI (Research & Development) 0.06 0.55 Total 12.26 7.87 Sr. No FY 2023-24FY 2024-25Particular of Expenditure during the year 2024-2025 th 13 ANNUAL REPORT
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GUJARAT GAS LIMITED 278 Carrying Amount s t 31 March, 2024 s t 31 March, 2025 % of ownership interest Place of business Relations hip Accounting methodName of Entity Guj Info Petro Limited (GIPL)* India 49.94% Associate Equity Method 36.02 33.25 Total equity accounted investments 36.02 33.25 Note 55 INTEREST IN OTHER ENTITIES a) Associates st Set out below is the associate of the Company as at 31 March, 2025 which, in the opinion of the directors, are material to the Company. The entity listed below has share capital consisting solely of equity shares, which are held directly by the Company. The country of incorporation or registration is also their principal place of business, and the proportion of ownership interest is the same as the proportion of voting rights held. * Unlisted entity - no quoted price available GIPL is primarily engaged in the marketing, selling value distribution of internet bandwidth and added services like web hosting, designing, development & maintenance of websites, IT consultancy services, software development, server co-location, mailing solutions, operation & maintenance of systems/networks, trading in hardware equipments, facility management services etc. to various organisations across Gujarat. Summarised financial information for associate The tables below provide summarised financial information for those associates that are material to the Company. The information disclosed reflects the amounts presented in the financial statements of the relevant associates and not the Company’s share of those amounts. They have been amended to reflect adjustments made by the entity when using the equity method, including fair value adjustments made at the time of acquisition and modifications for differences in accounting policies. st st Particulars As at 31 As at 31 March, 2025 March, 2024 Contingent liabilities - associates For direct tax - - Total commitments and contingent liabilities - - ( in Crores)` ( in Crores)` st Notes to Consolidated financial statements for the year ended 31 March, 2025 Commitments and contingent liabilities in respect of associates s t 31 March, 2024s t 31 March, 2025 Guj Info Petro Limited (GIPL) Non-current assets 5.24 5.11 Current Assets 82.07 76.81 Non-current liabilities 2.32 1.76 Current liabilities 12.89 13.58 Net Assets (Assets - Liabilities) 72.10 66.58 ( in Crores)` 2024-2025 th 13 ANNUAL REPORT s t 31 March, 2024s t 31 March, 2025 Guj Info Petro Limited (GIPL) Net assets 72.10 66.58 Company's Share in % 49.94% 49.94% Company's Share in INR 36.02 33.25 Carrying amount 36.02 33.25 Reconciliation to carrying amounts ( in Crores)` s t 31 March, 2024s t 31 March, 2025 Guj Info Petro Limited (GIPL) Revenue 50.22 32.63 Profit / (Loss) for the year 8.99 5.15 Other comprehensive income (0.10) (0.10) Total comprehensive income 8.89 5.05 Dividend received 1.68 1.64 Summarised statement of profit and loss ( in Crores)`
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GUJARAT GAS LIMITED 279 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 56 ADDITIONAL INFORMATION REQUIRED BY SCHEDULE III (` in Crores) As % of Amount As % of Amount As % of Amount As % of Amount consolid- consolid- other total ated net ated compreh compreh assets profit or -ensive -ensive Loss income income A The Company Gujarat Gas Limited st 31 March, 2025 99.58% 8,453.65 99.61% 1,143.83 100.59% 8.51 99.62% 1,152.34 st 31 March, 2024 99.57% 7,689.26 99.78% 1,141.13 100.58% 8.66 99.78% 1,149.79 B Subsidiaries/ 100% sole controlled entity (i) Indian Gujarat Gas Limited Employees Welfare Stock Option Trust st 31 March, 2025 NA NA NA NA NA NA NA NAst 31 March, 2024 NA NA 0.00% 0.00 - - 0.00% 0.00 (ii) Foreign - - - - - - - - Non-controlling interest in all subsidiaries - - - - - - - - C Associates (Investments as per the equity method) (I) Indian Guj Info Petro Limited (GIPL) st 31 March, 2025 0.42% 36.02 0.39% 4.49 -0.59% (0.05) 0.38% 4.44 st 31 March, 2024 0.43% 33.25 0.22% 2.57 -0.58% (0.05) 0.22% 2.52 (ii) Foreign - - - - - - - - D Joint Ventures (Investments as per the equity method) (i) Indian - - - - - - - - (ii) Foreign - - - - - - - - Total st 31 March, 2025 100% 8,489.67 100% 1,148.32 100% 8.46 100% 1,156.78st 31 March, 2024 100% 7,722.51 100% 1,143.70 100% 8.61 100% 1,152.31 Sr. no. Name of the entity in Consolidated Financial Statemetns Net assets (total assets minus total liabilities) Share in profit or (loss) Share in other comprehensive income Share in total comprehensive income 2024-2025 th 13 ANNUAL REPORT b) 100% sole controlled entity The Company controlled the Gujarat Gas Limited Employees Welfare Stock Option Trust (ESOP Trust) as per the requirements of Ind AS-110 - Consolidated Financial Statements. Accordingly, the same had been consolidated as a 100 % sole controlled entity th th upto 30 September, 2023. All assets and liabilities of ESOP Trust had been liquidated in the quarter ended on 30 September, 2023 and ESOP trust had been wound up. Note 55 INTEREST IN OTHER ENTITIES ( Continued…..) Note 57 SEGMENT REPORTING The Company primarily operates in the segment of Natural Gas Business. Natural gas business involves distribution of gas from sources of supply to centres of demand and to the end customers. The Managing Director of the Company allocate resources and assess the performance of the Company, thus is the Chief Operating Decision Maker (CODM). The CODM monitors the operating results of the business as a one, hence no separate segment needs to be disclosed. Information about products and service: The Company is in a single line of business of Sale of Natural Gas. Information about geographical areas: 1. The Company does not have geographical distribution of revenue outside India and hence segmentwise disclosure is not applicable to the Company. 2. None of the Company's assets are located outside India hence segmentwise disclosure is not applicable to the Company. Information about major customers: None of the customer account for more than 10% of the total revenue of the Company.
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GUJARAT GAS LIMITED 280 st Notes to Consolidated financial statements for the year ended 31 March, 2025 Note 58 RECLASSIFICATION OF COMPARATIVE FIGURES Certain reclassifications have been made to the comparative period's financial statements to: - enhance comparability and ensure consistency with the current year’s financial statements; and - ensure compliance with the Guidance Note on Division II - Ind AS Schedule III to the Companies Act, 2013. The Company believes that such presentation is more relevant for understanding of the Company’s performance. However, this does not have any impact on the profit, equity and cash flow statement for the comparative period. Note 59 EVENTS OCCURRING AFTER THE BALANCE SHEET DATE Adjusting events (that provides evidence of condition that existed at the balance sheet date) occurring after the balance sheet date are recognized in the financial statements. Material non adjusting events (that are inductive of conditions that arose subsequent to the balance sheet date) occurring after the balance sheet date that represents material change and commitment affecting the financial position are disclosed in the Board’s Report. Further, the shareholders of the Company have the power to amend the financial statements after the same has been authorized for issue by Board of Directors as per the provisions of the Companies Act, 2013. The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval of the financial statements to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. As on date of approval of these financial statements, there are no subsequent events to be recognized or reported that are not already disclosed. Note 60 SCHEME OF AMALGAMATION AND ARRANGEMENT th The Board of Directors of the Company at its meeting held on 30 August 2024, have approved a Composite Scheme of Amalgamation and Arrangement among Gujarat State Petroleum Corporation Limited (GSPC /Transferor Company), Gujarat State Petronet Limited (GSPL /Transferor Company), GSPC Energy Limited (GEL /Transferor Company), Gujarat Gas Limited (GGL/Transferee Company & Demerged Company) and GSPL Transmission Limited (GTL /Resulting Company) and their respective Shareholders under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 and rules made thereunder (Scheme). The Scheme, inter alia, provides for - st 1. amalgamation of GSPC, GSPL and GEL with GGL with appointed date as 1 April, 2024; st 2. post the amalgamation, demerger of “Gas Transmission Business Undertaking” into GTL with appointed date as 1 April, 2025 and 3. various other matters consequential or otherwise integrally connected therewith. The Scheme is, inter alia, subject to sanction of the Ministry of Corporate Affairs (MCA) and receipt of necessary approvals from statutory and regulatory authorities. Note 61 PREVIOUS YEAR FIGURES Previous period figures have been re-grouped / re-classified wherever necessary, to conform to current period’s presentation. The Accompanying Notes (1-61) are an integral part of the financial Statements. 2024-2025 th 13 ANNUAL REPORT As per our report attached For Ashok Chhajed & Associates For and on behalf of Board of Directors of Gujarat Gas Limited Chartered Accountants ICAI Firm Reg. No. – 100641W Naresh Bahroo Pankaj Joshi, IAS Milind Torawane, IAS Balwant Singh, IAS (Retd.) Partner Chairman Managing Director Director M. No. : 117743 DIN - 01532892 DIN - 03632394 DIN- 00023872 Rajesh Sivadasan Sandeep Dave Chief Financial Officer C ompany Secretary Place : Gandhinagar Place : Gandhinagar th th Date : 19 May, 2025 Date : 19 May, 2025
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GUJARAT GAS LIMITED 281 Guj Info Petro LimitedName of Associates 1. Latest audited Balance Sheet Date 31/03/2025 2. Shares of Associate held by the company on the year end 4,375,000 Amount of Investment in Associate 0.03 Extend of Holding % 49.94% 3. Description of how there is significant influence Through voting power 4. Reason why the associate is not consolidated NA 5. Networth attributable to Shareholding as per latest audited Balance Sheet As per Ind AS-28 equity method is followed 6. Profit / (Loss) for the year i. Considered in Consolidation 4.44 ii. Not Considered in Consolidation - Form - AOC 1 Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures (Pursuant to Section 129(3) of the Companies Act, 2013) Part "A": Subsidiaries Not Applicable Part "B": Associates ( in Crores)` st Notes to Consolidated financial statements for the year ended 31 March, 2025 2024-2025 th 13 ANNUAL REPORT For Ashok Chhajed & Associates For and on behalf of Board of Directors of Gujarat Gas Limited Chartered Accountants ICAI Firm Reg. No. – 100641W Naresh Bahroo Pankaj Joshi, IAS Milind Torawane, IAS Balwant Singh, IAS (Retd.) Partner Chairman Managing Director Director M. No. : 117743 DIN - 01532892 DIN - 03632394 DIN- 00023872 Rajesh Sivadasan Sandeep Dave Chief Financial Officer C ompany Secretary Place : Gandhinagar Place : Gandhinagar th th Date : 19 May, 2025 Date : 19 May, 2025
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Gujarat Gas Limited Registered Office: Gujarat Gas CNG Station, Sector 5/C, Gandhinagar - 382006, Gujarat Tel: +91-79-26737400 / 26737500 Website: www.gujaratgas.com, E-mail Id: Investors@gujaratgas.com CIN: L40200GJ2012SGC069118 Date: 30th August, 2025 Folio No/DPID & Client ID: Dear Shareholder, Sub: Notice of 13th Annual General Meeting of Gujarat Gas Limited and Annual Report for FY 2024 – 25 We are pleased to inform you that the 13th (Thirteenth) Annual General Meeting ( “AGM”) of Gujarat Gas Limited (“the Company”) is scheduled to be held on Thursday, 25 th September, 2025 at 3:00 P.M. through Video Conference (VC)/Other Audio -Visual Means (OAVM) to transact the businesses as set out in the Notice convening the AGM. In compliance with Regulation 36(1)(a) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI Listing Regulations’), electronic copies of the Notice of the AGM and Annual Report for FY 2024 - 25 are being sent to all the shareholders whose E-mail addresses are registered wit h the Company/ Depository Participant(s) (‘DP’)/ Registrar and Share Transfer Agent (‘RTA’). Further, Regulation 36(1)(b) of the SEBI Listing Regulations requires Company to send a lette r providing the web-link, including the exact path, where complete details of the Annual Report is available, to those Shareholder(s) who have not registered their E-mail address (es) with the Company/DP/R&TA. Based on records available with the Company a nd/or KFin Technologies Limited, R&TA , your E-mail address is not registered against your demat account/folio number. Accordingly, we are unable to send the copy of the Notice of AGM along with Annual Report for FY 2024 – 25 to you electronically. Hence, in accordance with Regulation 36(1)(b) of the SEBI Listing Regulations, this letter is being sent by the Company to inform you the web -link, including the exact path, where complete details of the Notice of AGM and 13th Annual Report for FY 2024 - 25 is available. Kindly refer below table for the required details: Web Link of Annual Report for FY 2024 - 25 Path of Annual Report for FY 2024 – 25 on Company’s website Notice: https://www.gujaratgas.com/investors/notice/ www.gujaratgas.com > Investors > Notice Annual Report: https://www.gujaratgas.com/investors/annual- reports/ www.gujaratgas.com > Investors > Disclosure under Regulation 46 of the LODR > Financial Information > Annual Report Key details for the AGM are as under: Sr. No.: 1
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Sr. No. Particulars Dates 1 Cut-off date for e-voting Thursday, 18th September, 2025 2 Commencement of e-voting 09:00 A.M. (IST) on Monday, 22nd September, 2025 3 End of e-voting 05:00 P.M. (IST) on Wednesday, 24th September, 2025 Further, in order to receive communications from the Company promptly, we request you to immediately register your E-mail address by following the below process: • in case shares are held in electronic form - with your Depository Participant; and • in case Members holding Shares in Physical Form who have not registered or updated their E- mail addresses/Mobile No./Electronic Bank Mandate and other KYC details are requested to submit requisite request forms along with supporting documents to Company’s Registrar & Share Transfer Agent i.e. KFin Technologies Limited either at its office at KFin Technologies Limited (Unit: Gujarat Gas Limited), Selenium Tower B, Plot No. 31 & 32, Gachibowli, Financial District, Nanakramguda, Serllingampally, Hyderabad, Telangana - 500032 or by E - mail with E -Sign to KFintech at einward.ris@kfintech.com. The format or various request forms are available on website of the Company at following path: https://www.gujaratgas.com/resources/downloads/investor-service-procedure-for- physical-shareholders-21-06-2024.pdf Additional Information to Shareholders: ❖ 100 Days Campaign- "Saksham Niveshak" initiative for KYC updations and shareholder engagement to prevent Transfer of Unpaid /Unclaimed dividends to IEPF: Pursuant to Ministry of Corporate Affairs (MCA) circular dated 16th July, 2025, the Company has started a 100 Days campaign "Saksham Niveshak" from 28th July, 2025 to 6th November, 2025 to reach out to the shareholders to update their KYC, bank mandates, Nominee and contact information. During this Campaign all the shareholders who have not claimed their Dividend for any Financial Years from 2017-18 to 2023 - 24 or have not updated their KYC or any issues related to unclaimed dividends may write to the Company's Registrar and Transfer Agent (RTA) to prevent their shares from being transferred to the Investor Education and Protection fund Authority (IEPFA). ❖ Special Window for Re-lodgment of Transfer Requests of Physical Shares: Pursuant to SEBI Circular No. SEBI/HO/MIRSD/MIRSD -PoD/P/CIRl2025/97 dated 2 nd July 2025; it is informed that a Special Window is open for a period of six months, from 7 th July, 2025 to 6th January, 2026 to facilitate re-lodgment of transfer requests of physical shares. This facility is available for Transfer Deeds lodged prior to 1 st April, 2019 and which were rejected or returned earlier by the Company due to deficiencies in documents. Kindly take advantage of this opportunity by furnishing the necessary documents to the Company's R&TA within the provided timeline. Thanking You, Your Faithfully, For Gujarat Gas Limited Sandeep Dave Company Secretary