Annual Report - 2005-06 - GAIL (India)

24. In compliance of Accounting Standard 22 on “Accounting for taxes on Income” issued by
Institute of Chartered Accountants of India, the Company has provided Accumulated net
deferred tax liability in respect of timing difference as on 31st March, 2006. The item- wise
details of deferred tax liability as on 31.03.2006 are as under:
Deferred Tax Liability
(Rs. in Crores)
2005-06 2004-05
a) Depreciation 1408.89 1407.65
b) Differences between carrying assets in the 20.44 26.80
financial statements & Income tax
Less :- Deferred Tax Assets
a) Provision for Gratuity & Retirement Benefits 15.59 15.96
b) Provision for Doubtful Debts / Claims / Advances 57.12 61.14
c) Preliminary Expenses & others 15.13 71.90
Deferred Tax Liability (net)* 1341.49 1285.45
* It includes an amount of Rs.NIL ( Previous Year :Rs.1.77 Crores) (Deferred Tax Assets) which has
been netted of with Deferred Tax Liability.
25. In Compliance of Accounting Standard 27 on “Financial Reporting of Interests in Joint
Ventures” issued by Institute of Chartered Accountants of India, the required information is as
under :
Jointly controlled Operations:
The Company has participated in joint bidding under the Government of India New
Exploration Licensing Policy and had been allotted 12 Blocks for which the Company has
entered into Production Sharing Contract with Government of India along with other
partners for Exploration & Production of Oil and Gas. As per the Production Sharing Contract,
the Company has a minimum work program commitment of Rs.551.61 Crores (Previous
Year: Rs.137.18 Crores). The Company is acting as non-operator and would have to share in
Expense/Income/Assets/Liabilities based upon its percentage in production sharing contract.
The participating interest in the following twelve NELP - Blocks as on 31st March, 2006 is as
under:
Joint Venture under NELP Blocks
Participating Interest
In addition, the Company has farm-in as non – operator with minimum work program
commitment of Rs.41.80 Crores (Previous Year : Rs.11.24 Crores) in the following blocks:
Blocks
1) A-1,Myanmar 10%
2) CY-OS/2 25%
3) A-3, Myanmar 10%
Participating Interest
The Company’s share of assets and liabilities as at 31st March, 2006 and the Income and the
expenditure for the year in respect of joint operations project blocks has been incorporated in the
Company financial statements based upon unaudited statement of accounts submitted by the
operators as follows:
(Rs. in Crores)
2005-06 2004-05
Income - -
Expenses 101.28 37.79
Fixed Assets 1.42 1.05
Other Assets 139.95 45.25
Current Liabilities 76.67 33.53
Jointly controlled Entity:
GAIL (India) Limited share in assets, liabilities, income, expenses contingent liabilities and capital
commitments of jointly controlled entities as per Annexure - C
26. Un-audited financial statements of a Subsidiary Company – GAIL Global (Singapore) Pte. Ltd.
have been included in the consolidation in the absence of the audited financial statements.
The figures included in the consolidated financial statements relating to the un-audited
accounts of subsidiary Company are as under:
i. Total assets are Rs.92.03 Crores (PY Rs.88.85 Crores) and total liabilities of Rs.92.03 Crores
(PY Rs.88.85 Crores) and
ii.
Total revenues of Rs.5.84 Crores (PY Rs.4.66 Crores) and total expenditure of Rs.3.68 Crores
(PY Rs.2.39 Crores)
1) MN-OSN-97/3 15%
2) NEC-OSN-97/1 50%
3) MN-OSN-2000/2 20%
4) GS-DWN-2000/2 15%
5) MB-DWN-2000/2 15%
6) CB-ONN-2000/1 50%
7) MN-ONN-2000/1 20%
8) CY-ONN-2002/1 50%
9) AA-ONN-2002/1 80%
N.K.Nagpal R.K.Goel S.P. Rao Proshanto Banerjee As per our separate Report of even date
Secretary Director (Finance) Director (Projects) Chairman & Managing Director For M/s S. MANN & COMPANY
Chartered Accountants
10) AA-ONM-2003/2 35%
11) CB-ONM-2003/2 20%
12) AN-DWN-2003/2 15%
Subhash Mann
(Partner)
Place : New Delhi Membership No. 80500
Dated : April 28, 2006
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