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Gujarat State Petronet Ltd.

BSE: 532702 Sector: Others
NSE: GSPL ISIN Code: INE246F01010
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OPEN 306.85
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VOLUME 21702
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P/E 16.84
Mkt Cap.(Rs cr) 17,067
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OPEN 306.85
CLOSE 312.45
VOLUME 21702
52-Week high 383.00
52-Week low 191.00
P/E 16.84
Mkt Cap.(Rs cr) 17,067
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gujarat State Petronet Ltd. (GSPL) - Director Report

Company director report

To

The Members

Gujarat State Petronet Limited

The Directors take pleasure in presenting the 20th Annual Report and Audited Accountsof the Company for the year ended 31st March 2018.

FINANCIAL HIGHLIGHTS

Your Company has excelled in most of the performance parameters.

Major Highlights of the Company are summarized below:

(Rs. in Crore)
Particulars (Standalone Accounts) 2017-18 2016-17
Total Income 1405.21 1115.76
Employee Benefit Expenses 43.20 38.84
Other Expenses 140.75 100.41
Total Expenses 183.95 139.25
PBDITA 1221.26 976.51
Finance Cost 35.41 59.58
Depreciation & Amortisation 175.04 179.14
Profit Before Tax 1010.81 737.79
Tax including Deferred Tax 342.38 241.15
Profit After Tax 668.43 496.64
Appropriations Transfer to General Reserves NIL NIL

PERFORMANCE HIGHLIGHTS

• 100% Pipeline grid availability and “accident free” year ofoperations.

• Development of CGD networks in Geographical Area of Amritsar and Bhatinda iscommenced.

• It is expected that in FY 2018-19 PNGRB shall determine final tariffs of yourCompany's Pipeline Network.

• Total Income stood at ' 1405.21 Crore as compared to ' 1115.76 Crore and PBTwas ' 1010.81 Crore as compared to ' 737.79 Crore over Previous Year.

• The Company has acquired additional 28.40% equity stake in Gujarat Gas Limited(GGL) during the year resulting in to total equity stake of 54.17% of the Company in GGL.

CAPITAL

During the year the Board has approved allotment of 245860 Shares to the eligibleemployees under ESOP — 2010 Scheme of the Company upon exercise of Options by themconsequent to which the paid up Share Capital of the Company has increased to ' 563.83Crore.

DIVIDEND

As per the provisions of the Regulation 43 (A) of the Securities and Exchange Board ofIndia (Listing Obligations and Disclosure Requirements) Regulations 2015 (“ListingRegulations”) the Company adopted a Dividend Policy which is broadly based on thesame policy as has been followed by the Company since long. Keeping in view the variousfactors including the

fund requirements for expansion of projects and subsidiaries as mentioned in thePolicy the Board of Directors of the Company is pleased to recommend Dividend of ' 1.75(i.e. @ 17.5 %) per Equity Share of the face value of ' 10 each for the Financial Year2017-18 subject to the approval of Shareholders in the ensuing Annual General Meeting. Thetotal cash outflow on account of the proposed Dividend (including Dividend DistributionTax after considering the credit of Dividend receivable from Subsidiary companies) for theyear 2017-18 would be approx ' 112.82 Crore.

GAS GRID PROJECT

Government of Gujarat has always played a pro-active role in the development of theenergy value chain in the State. Gujarat is the first State to plan and execute aState-wide Gas Grid on an Open Access principle.

The pipeline grid has been designed as per the highest international standards withinbuilt flexibility to cater to varying loads.

The pipeline grid map of GSPL for Gujarat is enclosed herewith as Annexure - IX.

The map showing the Cross-Country Natural Gas Transmission Pipelines being implementedthrough special purpose vehicles is enclosed herewith as Annexure — X.

Projects Commissioned:

During the year under review the Company has successfully completed commissioning ofDabhan Thasara Pipeline and provided natural gas connectivity to various customer(s)(connectivity projects) namely Sanand GIDC ring network Dahej — PCPIR Dahej SEZ-IInetwork IRM Energy and Panchmahal Dairy.

The grid operations account for approx 2518 Kms as on 31st March 2018. Gas is flowingfrom Hazira / Dahej / Vapi to various industries and City Gas Distribution(“CGD”) Networks located in various Districts of Gujarat including SuratBharuch Narmada Baroda Anand Ahmedabad Dahod Gandhinagar Sabarkantha PanchamahalPatan Bhavnagar Mehsana Banaskantha Surendranagar Botad Rajkot Morbi JamnagarNavsari Kutch Kheda Valsad Amreli Gir & Somnath.

Projects under execution:

Your Directors are pleased to inform that the Company continues to develop additionalpipeline infrastructure in the State of Gujarat. The Company has also started layingAnjar-Mundra Pipeline connecting GSPC LNG Terminal at Mundra to GSPL's Gas Grid Network.Additionally the Company is also installing Gas Compressor Station at Gana which is underconstruction.

The Company is a co-developer in Dahej SEZ and is developing pipeline infrastructuretherein. Several customers have started receiving gas in Dahej SEZ through Company'snetwork with more getting connected on regular basis.

WIND POWER PROJECT

Your Company being committed to promote clean and green energy has set up Wind PowerProject of 52.5 MW in the areas of

Maliya Miyana Rajkot and Gorsar & Adodar Porbandar. During the year the Companyhas sold 105985160 KWH of electricity generated through Windmill.

FUTURE PLANS

The Company is working on future expansion projects based on the demand in variousregions around the gas grid. The Company is also gearing up its pipeline by developingconnectivity with new terminals that are being developed in Gujarat to ensure connectivitywith all sources in Gujarat. The Company is also authorised to develop the City GasDistribution (CGD) Network in the Geographical Area (GA) of Amritsar District (Punjab) andBhatinda GA (Punjab). Company has already started necessary activities in relation to thedevelopment of the CGD Network in both these GAs and gas supply is expected to becommenced in the coming Financial Year.

OPERATION & MAINTENANCE ACTIVITIES

The Company has transported 11511 MMSCM of gas during the Financial Year 2017 - 18(Previous year: 9071 MMSCM).

To safeguard pipeline assets and optimize utilization of the pipeline system theCompany is giving utmost importance to efficient operations and preventive maintenance.The Company is in the process of implementing Pipeline Integrity Management System in linewith PNGRB guidelines to safeguard the pipeline assets.

SUBSIDIARY ASSOCIATE & JOINT VENTURE COMPANIES

Subsidiary Companies:

Your Company has following three Subsidiary companies within the meaning of the Section2(87) of The Companies Act 2013:

1) GSPL India Gasnet Limited (GIGL) for development of Mehsana — Bhatinda (approx1670 Kms) and Bhatinda - Jammu - Srinagar (approx 740 Kms) Pipeline Projects;

2) GSPL India Transco Limited (GITL) for development of Mallavaram - Bhopal —Bhilwara — Vijaipur (approx. 1881 Kms) Pipeline Project.

3) Gujarat Gas Limited (GGL) - w.e.f. 28th March 2018 Gujarat Gas Limited is India'slargest city gas distribution player with presence spread across 22 Districts in the Stateof Gujarat and Union Territory of Dadra Nagar Haveli and Thane GA which includes PalgharDistrict of Maharashtra.

Associate Company:

As on 31st March 2018 your Company has one Associate Company viz. Sabarmati GasLimited.

To avoid duplication between the Directors' Report and Management Discussion andAnalysis Report the performance highlights/summary of the Subsidiary companies/JointVenture companies /Associate companies of GSPL is given in Management Discussion andAnalysis Report.

Accounts of Subsidiary Associate & Joint Venture companies:

Pursuant to notification dated 16th February 2015 of Ministry of Corporate Affairsnotifying the Companies (Indian

Accounting Standard) Rules 2015 the Company its Associate Subsidiary and JointVenture Companies have adopted Ind AS w.e.f. 1st April 2016.

Consequently though as per provision of Section 2 (87) (ii) of The Companies Act 2013GSPL India Gasnet Limited (GIGL) and GSPL India Transco Limited (GITL) fall within themeaning of Subsidiary Company as per guidance of Indian Accounting Standards [Ind AS]GIGL and GITL fall within the criteria of Joint Venture and accordingly they have beenconsidered as Joint Venture for the purpose of disclosures and compliances in relation tothe Financial Statements of the Company for the Financial Year 2017-18.

Pursuant to provisions of Section 129 (3) of the Companies Act 2013 read withCompanies (Accounts) Rules 2014 a separate statement in prescribed Form AOC - 1containing salient features of the financial statement of Subsidiary Associate &Joint Venture Companies is provided in the Annual Report.

Further the audited annual accounts and related information of GIGL GITL and GGL willbe made available to any Member upon request. The annual accounts of GIGL GITL and GGLwill also be kept open for inspection at the Registered Office of the Company and that ofthe respective companies. The same are also made available on the website of the Companyviz. www.gspcgroup.com .

CONSOLIDATED FINANCIAL STATEMENTS

In accordance with the Ind AS - 28 on Investment in Associates and Joint Ventures readwith Ind AS — 110 on Consolidated Financial Statements and Ind AS — 111 on JointArrangement the Audited Consolidated Financial Statements are provided in the AnnualReport.

HEALTH SAFETY AND ENVIRONMENT

The Company in order to fulfill its commitment towards Health Safety and Environmenthas taken active steps towards establishment of Safety Management Systems. Environment andsafety features have been integrated into design construction and O&M operations ofthe Company for ensuring utmost safety for the facilities local community and theenvironment. The same is also being reflected in the QHSE policy of the Company. TheCompany is expanding and managing its operations in a manner which is safe andenvironmentally sustainable.

For developing effectiveness of Safety Management Systems training of all employeesacross the Company is ensured through various training programs. The same is beingmonitored through internal audit teams and delegation of safety management up to the locallevel. Contractors' adherence to Company's QHSE policy is also assured through regularsite visits and external audits. Regular site visits ensure the enhancement of safetyculture which also facilitates safe commissioning of the new projects. The Company isproud to maintain its target of ‘zero accident' year with full commitment of itsemployees and management.

The Company is re-certified to Integrated Management Systems (ISO 9001:2015 ISO14001:2015 & OHSAS 18001:2007) with validity till 30th October 2020. Effectiveness ofthese certifications is being assured through planned audits of the system. Continuousimprovement is visible in various O&M systems. Preventive Maintenance schedules arebeing adhered

to with updating of records. Further Emergency Response and Disaster Management Plan(ERDMP) of GSPL was re-accredited by Disaster Management Institute Bhopal as per therequirement of ERDMP Regulations 2010 under PNGRB Act 2006. ERDMP is being reviewed andupdated regularly. All conditions of Accreditation are being adhered to. Effectiveness ofERDMP is verified through regular mock drills as per specified intervals as identified byrespective work bases.

DEPOSITS

During the year the Company has not accepted Deposits from the public falling withinthe ambit of Section 73 of the Companies Act 2013 read with the Companies (Acceptance ofDeposits) Rules 2014.

PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS

Pursuant to Section 186 (11) of the Companies Act 2013 loans made guarantees givenor securities provided or investment made by a company providing infrastructure facilitiesare exempted from compliance with Section 186 of the Companies Act 2013 except subSection (1). Accordingly your Company being engaged in the Gas Transportation business isexempted from aforesaid compliance. However the details of Loans Guarantees Securitiesand Investments covered under the provisions of Section 186 of the Companies Act 2013 aregiven in the notes to the Financial Statements.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES REFERRED TO IN SECTION188 (1) OF THE COMPANIES ACT 2013

All Related Party Transactions that were entered into during the Financial Year were onan arm's length basis and were in the ordinary course of business.

Prior omnibus approval of the Audit Committee is obtained on a yearly basis for thetransactions which are of a foreseeable and repetitive nature and further would beexecuted on arm's length basis and in the ordinary course of business. Further astatement giving details of all Transactions executed with Related Parties is placedbefore the Audit Committee on a quarterly basis for its approval/ ratification as the casemay be.

The Policy on Materiality of Related Party Transactions and Dealing with Related PartyTransactions as approved by the Board is uploaded on the Company's Website.

None of the Directors has any pecuniary relationships or transactions vis-a-vis theCompany.

The particulars of contracts or arrangements with Related Parties referred to inSection 188 (1) of the Companies Act 2013 as prescribed in Form AOC — 2 of theCompanies (Accounts) Rules 2014 is enclosed as Annexure - III to this Report.

CORPORATE SOCIAL RESPONSIBILITY

The Company has constituted a Corporate Social Responsibility (CSR) Committee inaccordance with Section 135 of the Companies Act 2013 read with Companies (CorporateSocial Responsibility Policy) Rules 2014. Pursuant to provisions of

Section 135 of the Companies Act 2013 the Company has also formulated a CorporateSocial Responsibility Policy which is available on the website of the Company at http://gspcgroup . com/gspl/csr.

Your Company being committed in fulfilling its Corporate Social Responsibility has beenengaged in various social initiatives through its intervention in the areas of educationpromoting healthcare/ eradication of hunger poverty & malnutrition conservation ofnatural resources like water/energy etc. in accordance with the Corporate SocialResponsibility Policy of the Company.

The Annual Report on CSR activities as required under the Companies (Corporate SocialResponsibility Policy) Rules 2014 is enclosed herewith as Annexure - IV to this Report.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Since last Directors' Report Shri Anil Mukim IAS & Shri Sujit Gulati IAS ceasedto be Directors of the Company consequent to their resignation as Directors from the Boardof the Company.

Your Directors wish to place on record appreciation for the services rendered by ShriAnil Mukim IAS & Shri Sujit Gulati IAS as Directors of the Company.

Further Shri Manish Seth Chief Financial Officer of the Company has resigned from theCompany w.e.f. 8th August 2018.

Shri Arvind Agarwal IAS and Shri Raj Gopal IAS have been appointed as AdditionalDirectors to hold office till the ensuing Annual General Meeting. It is proposed toregularize their appointment in the 20th Annual General Meeting.

Pursuant to the provisions of Section 152 of the Companies Act 2013 Dr. T NatarajanIAS Joint Managing Director of the Company shall retire by rotation at the ensuing AnnualGeneral Meeting and being eligible offers himself for re-appointment as Director (withcontinuity in his position as Joint Managing Director) not liable to retire by rotationunless the constitution of the Board requires otherwise.

A brief resume of the Directors retiring by rotation/seeking appointment at the ensuingAnnual General Meeting nature of their expertise in specific functional areas and detailsregarding the companies in which they hold directorship membership/ chairmanship ofcommittees of the Board is annexed to the Notice.

Directors' Independence:

Pursuant to the provisions of Section 149 (6) of the Companies Act 2013 and SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 the IndependentDirectors of the Company have given confirmation/ declaration to the Board that they meetwith the criteria of Independence and are Independent in terms of Section 149 (6) of theCompanies Act 2013 and SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015.

Board Evaluation:

Pursuant to the provisions of the Companies Act 2013 and Regulation 25 of the SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 the IndependentDirectors have carried out an annual performance evaluation of Chairman Non-IndependentDirectors and the Board as a whole. Further the Board has carried out an annualperformance evaluation of its own performance the Directors individually as well as theevaluation of the working of the various Committees of Directors of the Company.

The performance evaluation of individual Directors was carried out based on the variousparameters after taking into consideration inputs received from the Directors and alsoparameters set out in the Policy for Evaluation of Performance of Directors Committees& Board such as active participation & contributions in the Meetings balance ofknowledge expertise and experience safeguarding the interest of the Company and itsStakeholders etc. The performance evaluation of the Board as a whole and variousCommittees of Directors of the Company was carried out considering various parameters suchas adequacy of the composition of the Board and its Committees discharge of key functionsand responsibilities prescribed under law corporate governance practice etc. and theoverall performance assessment was discussed in detail by the Board members.

Meetings:

The Board meets at regular intervals to discuss and decide on Company / business policyand strategy apart from other Board business. The Board / Committee Meetings arepre-scheduled and a tentative annual calendar of the Board and Committee Meetings iscirculated to the Directors in advance to facilitate them to plan their schedule and toensure meaningful participation in the Meetings. However in case of a special and urgentbusiness need the approval is taken by passing resolutions through circulation to theDirectors as permitted by law which are noted in the subsequent Board/CommitteeMeetings.

During the year six (6) Board Meetings were convened and held the details of whichare given in the Corporate Governance Report. The intervening gap between the Meetings waswithin the period prescribed under the Companies Act 2013 and Regulation 17 of the SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015.

AUDITORS

Statutory & C&AG Audit:

As your Company is a Government Company the Statutory Auditors are appointed by theComptroller & Auditor General of India (C&AG). Accordingly the C&AG hasappointed M/s V V Patel & Co. Chartered Accountants as Statutory Auditors of theCompany for the Financial Year 2017 - 18.

The C&AG has given NIL Comment Report on the Standalone and Consolidated FinancialStatements of the Company for the Financial Year 2017 - 18. The NIL Comment Report hasbeen provided before the Standalone & Consolidated Financial Statements respectively.

Secretarial Auditors:

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 Directorsof the Company has appointed M/s Manoj Hurkat & Associates Practising CompanySecretaries to conduct the Secretarial Audit of the Company for the Financial Year 2017 -18.

The Report of Secretarial Auditor on Company's Secretarial Audit for the Financial Year2017 - 18 is enclosed herewith as Annexure - V to this Report.

Cost Auditors:

Your Company is required to get the Cost Audit carried out for “GasTransportation” business as well as “Generation of Electricity throughWindmill” business pursuant to Section 148 of the Companies Act 2013 read with theCompanies (Cost Records and Audit) Rules 2014. The Company is maintaining the CostAccounts and Records as specified by the Central Government under sub Section (1) ofSection 148 of the Companies Act 2013.

Accordingly your Company has got the Cost Audit carried out for the said business ofthe Company for the Financial Year 2017- 18 through the Cost Auditor M/s N D Birla &Co. The Cost Audit Report 2017-18 will be submitted to the Central Government in theprescribed format within stipulated time period.

Further your Directors has on the recommendation of the Audit Committee appointedM/s N D Birla & Co. Cost Accountants as Cost Auditor to audit the cost accounts ofthe Company for the Financial Year 2018-19 at a remuneration of ' 100000/- plusapplicable taxes and reimbursement of out of pocket expenses incurred by them during thecourse of Audit. As required under the Companies Act 2013 the remuneration payable tothe Cost Auditor is required to be placed before the Members in a General Meeting fortheir ratification. Accordingly a Resolution seeking Member's ratification for theremuneration payable to M/s N D Birla & Co. Cost Auditors for the Financial Year2018-19 is included in the Notice convening the Annual General Meeting.

AUDIT COMMITTEE

Audit Committee of Directors of the Company at its Meeting held on 21st May 2018approved the Annual Accounts for the Financial Year ended on 31st March 2018 andrecommended the same for approval of the Board.

RISK MANAGEMENT AND INTERNAL CONTROL SYSTEM

Risk Management:

The Company has a well-defined risk management framework. The Board of Directors of theCompany has adopted a Risk Management Policy.

Internal Control System:

The Company has a proper and adequate system of Internal Controls commensurate with itssize of operations and nature of business. These are routinely tested and certified byStatutory as well as Internal Auditors. Significant audit observations and follow upactions thereon are reported to the Audit Committee.

The details about the identification of elements of Risk and Internal Control Systemsare provided in detail in the Management Discussion & Analysis Report forming part ofthis Directors' Report.

VIGIL MECHANISM

The Company has established a Vigil Mechanism for Directors and Employees to reporttheir genuine concerns details of which have been given in the Corporate GovernanceReport forming part of this Directors' Report

DIRECTORS' RESPONSIBILITY STATEMENT

To the best of their knowledge and belief and according to the information andexplanations obtained by them your Directors make the following statements in terms ofSection 134(3) (c) of the Companies Act 2013:

a. that in the preparation of the Annual Financial Statements for the year ended 31stMarch 2018 the applicable accounting standards have been followed and no materialdepartures have been made from the same;

b. that accounting policies have been selected and applied consistently and judgmentand estimates have been made that are reasonable and prudent so as to give a true and fairview of the state of affairs of the Company as at 31st March 2018 and of the profit &loss of the Company for the year ended on that date;

c. that proper and sufficient care has been taken for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities;

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 financialcontrols were adequate and were operating effectively;

f. that systems to ensure compliance with the provisions of all applicable laws were inplace and were adequate and operating effectively.

MANAGEMENT DISCUSSION & ANALYSIS

This Annual Report contains a separate section (Annexure—I) on the ManagementDiscussion & Analysis which forms part of this Directors' Report.

CORPORATE GOVERNANCE

Corporate Governance denotes the framework for companies to conduct their business inan ethical and responsible manner. It is determined primarily by the approach that aCompany has towards its stakeholders as well as to the environment in which it operates.It stems from the belief and realization that corporate citizenship has a set ofresponsibilities which must be fulfilled for a Company to progress and succeed over thelong term.

The Company believes that good governance alone can deliver continuous good businessperformance. A Report on Corporate Governance as required under Regulation 34 of the SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 is incorporated as apart of this Directors' Report (Annexure — II). A Compliance Certificate by thePractising Company Secretary is also attached to this Directors' Report.

COMPLIANCE OF SECRETARIAL STANDARDS

The Company has complied with Secretarial Standards issued by the Institute of CompanySecretaries of India on Meetings of the Board of Directors (SS-1) and General Meetings(SS-2).

ANNUAL RETURN

The draft Annual Return of the Company for the Financial Year 2017-18 in the Form MGT— 7 is available on the website of the Company at http://gspcgroup.com/GSPL/annual-returns .

GSPL EMPLOYEES STOCK OPTION PLAN (“ESOP”)

GSPL Employees Stock Option Plan — 2010 (ESOP — 2010) was instituted asincentives to attract retain and reward the employees and to enable them to participatein the future growth and success of the Company.

Under the said ESOP - 2010 each such Option has conferred a right upon the employee toapply for one Equity Share of the Company.

Auditors of the Company have certified that the Scheme is being implemented inaccordance with the SEBI (Share Based Employee Benefits) Regulations 2014 and theresolution passed by the Members. The Certificate would be placed at the Annual GeneralMeeting for inspection by Members.

Statutory disclosure regarding ESOP — 2010 is enclosed at Annexure — VI .

Further the Disclosure regarding ESOP — 2010 pursuant to SEBI (Share BasedEmployee Benefits) Regulations 2014 has been made on the website of the Company athttp:// gspcgroup.com / GSPL/disclosures.aspx.

PARTICULARS OF EMPLOYEES

Your Company being a Government Company is exempted from disclosing the informationrequired pursuant to Section 197 of the Companies Act 2013 read with Rule 5 of theCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014 in respect ofthe employees of the Company pursuant to Ministry of Corporate Affairs Notification dated5 th June 2015.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION PROHIBITIONAND REDRESSAL) ACT 2013

Your Company has always believed that appropriate standard of conduct should bemaintained by the employees in their conduct and that there should be a safeindiscriminatory and harassment free (including sexual harassment) work environment forevery individual working in the Company. The Company has in place a Policy on Preventionof Sexual Harassment at workplace as a part of its Human Resource Policy. It aims atprevention of harassment of employees and lays down the guidelines for reporting andprevention of sexual harassment.

The Company has constituted an Internal Complaints Committee (ICC) as required underthe Act which is responsible for redressal of complaints related to sexual harassment.

During the year ended 31st March 2018 no complaint has been received by the ICCpertaining to sexual harassment.

CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION FOREIGN EXCHANGE EARNINGS AND OUTGO

Information required to be disclosed pursuant to provisions of the Companies Act 2013read with Rules thereto with respect to Conservation of Energy Technology Absorption andForeign Exchange Earnings & Outgo are furnished in Annexure - VIII to this Report.

BUSINESS RESPONSIBILITY REPORT

Your Company has always given the highest importance to the environment health andsafety. The same is also reflected in the business practices of the Company e.g. Companyhas implemented practices towards preservation of natural resources Green Gas emissionreduction lowering costs etc. over these years. The Company is also conscious of itsresponsibility towards its various stakeholders and is determined to increase itscontribution to the society to bring positive social impact.

The Business Responsibility Report in the prescribed format describing the initiativestaken by the Company from an environmental social and governance perspective among otherthings is enclosed as Annexure-VII to this Report

MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY

There have been no material changes and commitments if any affecting the financialposition of the Company which have occurred between the end of the Financial Year of theCompany to which the Financial Statements relate and the date of this Report.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

There are no significant material orders passed by the Regulators / Courts which wouldimpact the going concern status of the Company and its future operations during the year.

ACKNOWLEDGEMENTS

The Directors appreciate the continued support received from the valued customers andlook forward to this mutually supportive relationship in future.

The Directors place on record their deep appreciation to employees of the Company atall levels for their hard work dedication and commitment without whose contribution theexcellent performance of the Company would not have been possible.

The Directors are extremely grateful for all the support given by the Government ofGujarat at all levels. Their guidance encouragement and moral support have enabled theCompany to expand the pipeline network in a professional manner.

The Directors also wish to place on record the sincere thanks to PNGRB and otherregulatory authorities at Central and State level for the continuous support extended tothe Company.

The Directors place on record their sincere thanks to the Promoters Shareholders andLenders for their valuable support trust and confidence reposed in the Company.

For and on behalf of the Board of Directors

Dr. J N Singh IAS Dr. T Natarajan IAS
Managing Director Joint Managing Director

Date: 29th August 2018 Place: Gandhinagar

.