The Company has only one class of equity shares having par value of ' 10/- per share. The holders of the equity shares are entitled to receive dividends as declared from time to time and are entitled to voting rights proportionate to their shareholding at the shareholders meetings.

4.87,93,407 shares (Previous Year: 2,96,90,172) are held in the form of Global Depository Receipts

The Company has not issued any shares for a consideration other than cash in immediately preceding five years except 2,19,16,99,881 bonus shares issued during FY 2022-23, 2,25,50,70,933 bonus shares issued during FY 2019-20 and 56,37,67,733 bonus shares during FY 2017-18.

The Company bought back 5,69,85,463 fully paid up equity shares representing 1.28% of the paid-up share capital for an aggregate amount of ' 1,082.72 crore (excluding taxes) at ' 190 per equity share. The equity shares bought back were extinguished on 21^st June 2022. The Company bought back 6,97,56,641 fully paid up equity shares representing 1.55% of the paid-up share capital for an aggregate amount of ' 1,046.35 crore (excluding taxes) at ' 150 per equity share. The equity shares bought back were extinguished on 22^nd March 2021.

a Retained Earnings

The Retained Earnings represents accumulated earnings of the Company. Retained Earnings is a free reserve of the Company and is used for the purposes like issuing bonus shares, buy back of shares and other purposes (like declaring Dividend etc.) as per the approval of Board of Directors. It includes the re-measurement gain/(loss) on defined benefit plans which will not be re-classified to statement of profit and loss in subsequent periods.

B Bond Redemption Reserve

As per the Companies Act, 2013 a Bond Redemption Reserve is required to be created for all bonds/ debentures issued by the Company at a specified percentage. Further, MCA vide notification No. 574 (E) dated 16^th August 2019, creation of Bond Redemption Reserve is not required for listed companies. However, there is no clarity in the notification whether noncreation of Bond Redemption Reserve is applicable for bonds issued before notification date. Therefore, the Company has decided to continue creation of Bond Redemption Reserve as per conservative approach. This reserve is created out of appropriation of profits over the tenure of bonds and during the previous year the Company has fully repaid bonds. Accordingly, the Company has transferred back Bond Redemption Reserve to Retained earnings.

C Capital Redemption Reserve

As per the Companies Act 2013, Capital Redemption Reserve is created when the Company purchases its own shares out of free reserves or securities premium. A sum equal to the nominal value of the shares purchased is transferred to Capital Redemption Reserve. Utilization of this reserve is governed by the provisions of the Companies Act 2013

D Fair Value Gain/ (Loss) of Equity instruments

This reserve represents the cumulative effect of fair value fluctuations of investments made by the company in equity instruments of other entities. The cumulative gain or loss arising on such changes are recognised through Other Comprehensive Income (OCI) and accumulated under this reserve. This will not be re-classified to the statement of profit and loss in subsequent periods.

E Cash Flow Hedge Reserve

The Cash Flow Hedge Reserve represents the cumulative effective portion of gains/ (losses) arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. The cumulative gain/ (loss) arising on such changes are recognised through Other Comprehensive Income (OCI) and accumulated under this reserve. Such gains/ (losses) will be reclassified to statement of profit and loss in the period in which the hedged item occurs/ affects the statement of profit and loss..

29 Contingent Liabilities and Commitments:

i. Contingent Liabilities:

a. Claims against the Company not acknowledged as debts:

(i) Legal cases for claim of ' 2,118.27 crore (Previous Year: ' 2,270.77 crore) by Suppliers / Contractors etc. on account of Liquidated Damages / Price Reduction Schedule, Natural Gas Price Differential etc. and by Customers for Natural Gas Transmission Charges etc.

(ii) Income Tax Demands & Appeals of ' 0.40 crore (Previous Year ' 0.40 crore) is pending and disclosed as Contingent Liability as on 31^st March 2023.

** The Company has reviewed its Contingent Liability in respect of Show Cause Notices (SCNs) pending adjudication and the same has not been treated as obligation accordingly the previous year figures have been restated as under:

(iii) Disputed Indirect Tax Demands are as under:

# It includes the demand confirmed by customs authorities ' 934.01 crore (up to 31^st March 2023) (Previous Year: ' nil) including penalty and interest, on account of Special Additional Duty (SAD) and Custom Duty on differential quantity, while finalising provisionally assessed Bill of Entries in respect of import of LNG by Company during Sept'2017 to Mar'2022 at Dabhol Port, Ratnagiri. Considering the merits of the case, the Company is in process of filing an appeal before the Commissioner (Appeals) Pune. Further, based on the exemption notification no. 51/2017 dated 30.06.2017, clarification provided by Central Board of Indirect Taxes and Customs (CBIC) and practice being followed at other Custom Port i.e. Dahej & Hazira, the Company is confident of favorable outcome in the matter.

*It includes demand of differential Central Excise Duty confirmed by CESTAT, Delhi vide order dated 30th November 2018 of ' 2,889 crore (up to 31^st March 2023 is ' 3,391 crore) (Previous Year: ' 3,265.51 crore) including interest and penalty in the matter pertaining to classification of 'Naphtha' manufactured by the Company. The Company has filed an appeal before the Hon'ble Supreme Court against the order, which was admitted and a stay has been granted by the Hon'ble Supreme Court on compliance of the conditions of depositing a sum of ' 20 Crore and furnishing security to the extent of ' 132 Crore. The Company has obtained opinion from legal expert and according to them; the Company has a good case on merits as well as on limitation. The matter is pending before the Court.

"Maharashtra VAT Authority during the VAT Assessment for the FY 2018-19 in respect of GAIL, Mumbai, has confirmed the demand of ' 696 crore (Previous Year: ' nil) including penalty and interest by denying benefit of exemption notification issued by Govt. of Maharashtra on supply of NG to power generating company and VAT set-off against purchase of NG. Considering the merits of the case, GAIL has filed a rectification application before the Assessing Authority and based on favorable legal opinion obtained on the matter, the Company is confident of favorable outcome.

(iv) Miscellaneous claims of ' 14.01 crore (Previous Year: ' 47.02 crore) includes mainly arbitration cases filed by vendors for delayed payments and losses incurred by them etc.

(v) Some of the customers have submitted counter claims amounting to ' Nil (Previous Year: ' 12,184 crore) against Ship or Pay charges / Consequential Losses for not supplying Gas.

b. Corporate Guarantees for raising Loans:

The Company has issued Corporate Guarantees for ' 4,583.74 crore (Previous Year: ' 4,361.27 crore) on behalf of related parties for raising loan(s). The amount of loan(s) outstanding as on 31^st March 2023 against these Corporate Guarantees are ' 1,523.30 crore (Previous Year: ' 1,166.27 crore).

ii. Commitments:

a. Capital Commitments:

Estimated amount of contracts (Inclusive of Taxes & Net of Advances) remaining to be executed on Capital account as on 31^st March 2023 is ' 12,381.09 crore (Previous Year: ' 6,891.28 crore).

b. Lease Commitments:

The company has various lease contracts that have not yet

commenced as on 31^st March 2023. The future lease payments

for these non-cancellable lease contracts are as follows:

c. other Commitments:

(i) The Company has commitment of ' 4,357.27 crore (Previous Year: ' 4,559.88 crore) towards further investment and disbursement of loans in the Subsidiaries, Joint Ventures, Associates and Other Companies.

(ii) Commitments made by the Company towards the Minimum Work Programme in respect of Jointly Controlled Assets under various Production Sharing Contracts / Revenue Sharing Contracts in respect of E&P Joint Ventures is ' 114.93 crore (Previous Year ' 63.59 crore)

31 Claims by the Company not acknowledged as income / Asset:

I. In respect of certain customers towards Ship or Pay charges, matter being sub-judice / under dispute, the Company has been issuing claim letters, aggregate amount of which as on 31^st March 2023 is ' 1,747.05 crore (Previous Year: ' 1,758.25 crore). Income in respect of the same shall be recognized as and when the matter is finally decided.

II. Pending court cases in respect of certain customers for recovery towards invoices raised by the Company for use of APM gas for non-specified purposes by fertilizer companies pursuant to guidelines of Ministry of Petroleum & Natural Gas (MoPNG), the Company has issued claim letters amounting to ' 1,704.56 crore (Previous Year: ' 1,704.56 crore) on the basis of information provided by Fertilizer Industry Coordination Committee (FICC). The proceeds, if received, will be transferred to the Gas Pool.

III. During the current financial year one of the Company's Long term LNG Supplier disrupted LNG supplies due to geopolitical situation. The Company has been making multiple efforts on various levels to mitigate the situation. The Company is also pursuing its contractually available legal recourse for Specific Performance of its contractual obligations. Accordingly, the impact on the Company shall be assessed only after final outcome of the said legal recourse.

32 Pricing and Tariff:

I. With effect from 1^st April 2002, Liquefied Petroleum Gas (LPG) prices have been de-regulated and decided on the basis of import parity prices fixed by the Oil Marketing Companies. However, the pricing mechanism is provisional and is yet to be finalized by the Ministry of Petroleum and Natural Gas (MoPNG). Impact on pricing, if any, will be recognized as and when the matter is finalized.

II. Natural Gas Pipeline Tariff and Petroleum Products Pipeline Transportation Tariff are subject to various Regulations issued by Petroleum and Natural Gas Regulatory Board (PNGRB) from time to time. Impact on profits, if any, is being recognized consistently as and when the pipeline tariff is revised by orders of PNGRB.

III. The Company has filed appeal(s) before Appellate Tribunal (APTEL), against various moderations done by PNGRB in respect of Final Tariff Order(s) issued by PNGRB for Dadri-Bawana-Nangal Natural Gas Pipeline (DBNPL), Chhainsa-Jhajjar-Hissar Natural Gas Pipeline (CJHPL), Cauvery Basin, Kochi -Koottanad -Mangaluru-Bengaluru Pipeline (KKMBPL), Krishna Godavari Basin (KG Basin) and Dabhol-Bangalore Pipeline (DBPL) Networks. The same are pending for final adjudication.

IV. During the financial year 2015-16, the Company has filed a Writ Petition before Hon'ble Delhi High Court challenging the jurisdiction of PNGRB to fix transmission tariff for natural gas marketed to consumers. Hon'ble High Court has dismissed the aforesaid Writ Petition vide its Order dated 11^th April 2017. In this regard, the Company has filed a Review Petition before the Hon'ble Delhi High Court on 12^th May 2017 which has been admitted by the Hon'ble Court and is pending for final adjudication.

V. PNGRB vide Gazette Notification No. F. No. PNGRB RB/ COM/3-PPPL Tariff (1)/2012 Vol-IV (P-1018) dated 14^th December 2021, has extended the existing LPG Pipeline tariff determination regulations till 30^th September 2023.

33 On 19^th February 2014, PNGRB notified the Amended Affiliate Code of Conduct Regulations by insertion of Regulation 5A mandating that an entity engaged in both marketing and transportation of natural gas shall create a separate legal entity on or before 31^st March 2017 so that the activity of transportation of natural gas is carried on by such separate legal entity and the right of first use shall, however, be available to the affiliate of such separate legal entity. The Company has challenged the said PNGRB Regulation before Hon'ble Delhi High Court by way of a Writ Petition and the same is pending for final adjudication.

Pursuant to the notification of PNGRB (Determination of Natural Gas Pipeline Tariff) Amendment Regulations, 2022 dated 17.11.2022, and the subsequent submission of GAIL, PNGRB, vide Tariff Orders dated 22.03.2023 and 24.03.2023,

has determined Integrated Tariff (levelized and zonal apportionment) for GAIL's Integrated Natural Gas Pipeline (comprising Integrated HVJ, DUPL-DPPL, DBPL, DBNPL, CJHPL, JHBDPL, South Gujarat sub-network, Trombay and Uran-Thal-Usar sub-networks) with effect from 1^st April, 2023.

34 Pursuant to the notification of PNGRB (Determination of Natural Gas Pipeline Tariff) Second Amendment Regulations, 2020 dated 23.11.2020 and the amendments in the PNGRB (Determination of Natural Gas Pipeline Tariff) Regulations, 2008, PNGRB, vide Tariff Order dated 29^th March, 2023, has determined the 'Unified Tariff" for the National Gas Grid System (NGGS), which has come into force with effect from 1^st April, 2023. The NGGS comprises of twelve (12) inter-connected natural gas pipelines of nine (09) entities. Under the same, customers/shippers across the country and located on the NGGS shall be paying the same applicable zonal unified tariff for movement of gas from the Unified Entry Point upto the Unified Exit Point on the NGGS. However, Revenue Entitlement of GAIL would be as per its Approved Zonal Integrated Tariff and KG-Basin Tariff which are part of the NGGS.

ii. In the year 1990, Gujarat Industrial Development Corporation (GIDC) allotted Leasehold Land measuring 70.87 Hectares to the Company for 99 years for setting up of LPG Recovery in Vaghodia, Gujarat. The Lease Deed executed is for approx. 66.30 Hectares of Land, whereas the Government of Gujarat has not yet transferred the balance to GIDC.

Company is pursuing the matter with GIDC and Government of Gujarat for regularization of the balance land. Company has maintained the stand that no further amount is payable in the absence of demand from GIDC. The Company is of the opinion that since the amount for allotted land has already been paid and there is no additional demand from GIDC, no liability / contingent liability exists on the Company.

V. For laying Natural Gas pipelines, Company acquires Right of Use (ROU) of Land for which advance is generally paid to Special Land Acquisition Officer (SLAO). The said Advance is being operated by the SLAO through a separate Bank account. However, in some cases, for KYC purposes, PAN number of the Company has been used. These Bank Accounts are solely under the control of the SLAO. Accordingly, these accounts are shown under deposits.

iV. The Company has entered into a perpetual land lease agreement with Delhi Development Authority (DDA) for its Corporate Office. The lease rent is payable half-yearly, which is under revision w.e.f. 1^st January 2018. DDA has not informed revised Lease Rent. Accordingly, the Company has deposited rent till 14^th July 2023 as per pre-revised lease agreement. The Company has also applied for conversion of title deed of the said land from Leasehold to Freehold for which confirmation from DDA is awaited.

ii. Gas Pool Money (Provisional) shown under "Other Financial Liabilities - Non-Current" amounting to ' 581.87 crore (Previous Year: ' 581.87 crore) with a corresponding debit thereof under Trade Receivable will be invested / paid as and when the said amount is received from the customers.

37 i. The Company is acting as a Pool Operator in terms of the decision of Government of India for pooling of Natural Gas for Urea Plants. The scheme envisages uniform cost of gas for urea production by settlement of difference in weighted average price of gas of each plant to the weighted average price for the industry. As on reporting date, the dues payable to Urea plants is ' 0 crore (Previous Year: ' 82.79 crore).

ii. The Company is acting as Pool Operator in terms of the decision of the Government of India for capacity utilization of the notified gas-based power plants. The Scheme, which was applicable till 31^st March 2017, envisaged support to the power

plants from the Power Sector Development Fund (PSDF) of the Government of India. The gas supplies were on provisional / estimated price basis, which were to be reconciled based on actual cost. Accordingly, current liabilities include a sum of ' 87.63 crore (Previous Year: ' 87.63 crore) on this account, as on 31^st March 2023 which is payable to the above said power plants and / or to the Government of India.

38 Ind AS 115 - Revenue from Contracts with customers:

Ind AS 115 establishes a five-step model to account for

revenue arising from contracts with customers and requires that revenue be recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.

Ind AS 115 requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, the standard requires extensive disclosures.

41 Disclosure under ind AS 19 onEmployee Benefits is given as below:

I. defined contribution Plans

a. employees' Superannuation Benefit Fund

During the year, the Company has contributed ' 107.34 crore (Previous Year: ' 108.10 crore) to Superannuation Benefit Fund (including National Pension System) and charged to Statement of Profit and Loss/ CWIP.

b. employee Pension Scheme (EPS-95)

During the year, the Company has contributed ' 5.03 crore (Previous Year: ' 5.23 crore) to EPS-95 and charged to Statement of Profit and Loss/ CWIP.

ii. defined Benefit Plans:

a. Provident Fund

During the year, the Company has contributed ' 89.75 crore (Previous Year: ' 76.66 crore) to Provident Fund Trust at predetermined fixed percentage of eligible employees' salary and charged to statement of profit

and loss/ CWIP. Further, the obligation of the Company is to make good shortfall, if any, in the fund assets based on the statutory rate of interest.

b. Gratuity

Each employee rendering continuous service of 5 years or more is entitled to receive gratuity amount based on completed tenure of service subject to maximum of ' 0.20 crore at the time of separation from the Company.

c. Post-Retirement Medical Scheme (PRMS)

PRMS provides medical coverage to retired employees and their eligible dependant family members. During the year, the Company contributed ' 38.52 crore (Previous Year: ' 16.87) to PRMS using projected unit credit method of actuarial valuation.

d. Terminal Benefits (TB)

At the time of superannuation, employees are entitled to settle at a place of their choice in India and they are eligible for Transfer Travelling Allowance from their last place of posting.

e. Relief Measures for Dependent Family Members of Deceased Employees

The Company provides various assistance to the dependent family members of the deceased employees for Education of Childrens, Medical Benefits and Residential Quarter Facilities in the event of death of an employee during the service.

iii. Other Long Term Benefit Plans:

a. earned leave Benefit (El)

Earned Leave is accrued 30 days per year. Earned Leave is encashable in the multiple of 5 any no of times in a year while in service, subject to keeping a minimum balance of 15 days in the respective employee's account. Encashment on retirement or superannuation is limited to 300 days.

b. Half Pay Leave (HPL)

HPL is accrued 20 days per year. The encashment of unavailed HPL is allowed as per approved Company rules at the time of Superannuation.

c Long Service Award (LSA)

As per approved policy of the Company, on completion of specified period of service with the company and also at the time of retirement, employees are rewarded monetarily based on the duration of service completed.

(i) The Company is a Non-operating partner in E&P blocks for which reserves are disclosed.

(ii) The initial oil and gas reserve assessment was made through an expert third party agency / internal expert assessment by respective operators of E&P blocks. The year-end oil reserves are estimated based on information obtained from operators / on the basis of depletion during the year. Re-assessment of oil and gas reserves carried out by the respective Operator as and when there is new significant data or discovery of hydrocarbon in the respective block.

(iii) E&P blocks are assessed individually for impairment.

iii The Company's share of balance cost recovery is ' 426.19 crore (Previous Year ' 352.36 crore) to be recovered from future revenues from

E&P blocks having proved reserves as per production sharing contracts

46 Accounting Standards - Impairment of Assets - Ind AS-36:

In compliance of Ind AS-36, Impairment of Assets, the Company carried out assessments of impairment in respect of assets of GAIL Tel,

and Right of Use (RoU) for Pipelines as on 31^st March 2023:

i. The Company reversed impairment loss of ' 4.26 crore against earlier provisions (Previous Year reversal of impairment loss ' 0.83 crore) in respect of assets of GAIL Tel.

ii. The Company accounted impairment loss of ' 0.72 crore (Previous Year reversal of impairment loss ' 0.87 crore) in respect of Plant and Machinery

iii. The Company conducted impairment study of RoUs for Pipelines in compliance to the provisions of Ind AS 36. There is no impairment loss found in respect of RoUs.

47 In compliance of Ind AS 109 on Impairment of Financial Assets/ Expected Credit Loss (ECL) on Financial Guarantees, the Company has

carried out an assessment in respect of its following investments/ Financial Guarantees as on 31^st March 2023:

i. During the year, based on fair valuation of investment in Tapi Pipeline Company Limited, the Company has made a provision for impairment of ' 55.38 crore (Previous Year: ' Nil). The Carrying Value of Company's investment in Tapi Pipeline Company Limited as on 31^st March 2023 is ' nil (Previous Year: ' 55.38 crore).

ii. During the year, based on the fair valuation of GAIL Global USA Inc. (GGUI), the Company has provided for Expected Credit Loss of '46.62 crore (Previous Year: ' 169.58 crore) against Corporate Guarantee provided by the company on behalf of GGUI.

51 Interest free advance has been given to M/s. Petronet LNG Ltd. (PLL) for booking of regasification capacity to the tune of ' 561.80 crore during FY 2014-15 & FY 2015-16 in two equal tranches. The said advance is to be adjusted within 15 years against regasification invoices of PLL. Out of above advance, PLL has adjusted ' 38.2 crore during the year (Previous Year: ' 38.2 crore). Balance amount of ' 324.63 crore during the year (Previous Year: ' 362.83 crore) has been accounted as advance in Note No 12 and 12A.

52 In some cases, the Company has received intimation from Micro and Small Enterprises regarding their status under "The Micro, Small and Medium Enterprises Development Act, 2006". As per practice, the payment to all suppliers has been made within 7 -10 days of receipt of valid invoice.

53 Cabinet Committee on Economic Affairs (CCEA), Government of India in its meeting held on 21^st September 2016 approved 40% capital grant of estimated capital cost of ' 12,940 crore i.e. ' 5,176 crore to the Company for execution of Jagdishpur Haldia Bokaro Dhamra Pipeline Project (JHBDPL).

The Company has received ' 4,926.29 crore (Previous year ' 4,926.29 crore) towards Capital Grant till 31^st March 2023. During the year, the Company has amortised the capital grant amounting ' 100.67 crore (Previous Year: ' 68.8 crore) based on the useful life of the asset capitalized.

54 Financial Risk Management:

The company is exposed to a number of financial risks arising from natural business exposures as well as its use of financial instruments. This includes risks relating to commodity prices, foreign currency exchange, interest rates, credit and liquidity.

i. Market Risk

Market risk is a risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of interest rate risk, foreign currency risk, equity price risk and commodity price risk. Financial instruments affected by market risk includes Loans, Borrowings, Deposits and Derivative Instruments.

(a) interest Rate Risk

Interest rate risk is a risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the longterm domestic rupee term loans with floating interest rates. The Company manages its interest rate risk according to its Board approved Foreign Currency and Interest Rate Risk Management Policy. Market interest rate risk is mitigated by hedging through appropriate derivatives products such as interest rate swaps & full currency swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount.

interest Rate Sensitivity

With all other variables held constant, the following table demonstrates the sensitivity to a reasonably possible change in interest rates on floating rate portion of forex loans and borrowings outstanding as on 31^st March 2023, after considering the impact of swap contracts. .

b) Foreign Currency Risk

Foreign currency risk is a risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company transacts business in local currency and foreign currency, primarily US Dollars. Company has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore, exposed to foreign exchange risk. As per its Board approved policy, Company may mitigate its foreign currency risk through plain vanilla derivative products such as foreign exchange option contracts, swap contracts and forward contracts for hedging such risks. These foreign exchange contracts, carried at fair value, may have varying maturities depending upon the underlying contract requirement and risk management strategy of the Company.

Foreign Currency Sensitivity

The following table demonstrates the sensitivity in the USD, EURO, and other currencies to the functional currency of the Company, with all other variables held constant. The impact on the Company's profit before tax is due to changes in the fair value of monetary assets and liabilities including foreign currency derivatives.

c) Commodity Price Risk

The Company imports LNG for marketing and its internal consumption on an on-going basis and is not exposed to the price risk to the extent it has contracted with customers in India and overseas on back to back basis. However, the Company is exposed to the price risk on the volume which is not contracted on back to back basis. As most of the LNG purchase and sales contracts are based on natural gas or crude based index, such price risk arises out of the volatility in these indices. In order to mitigate this index linked price risk, the Company has been taking appropriate derivative products in line with the Board approved 'Natural Gas Price Risk Management Policy'.

d) Equity Price Risk

The Company's investment in listed and unlisted equity instruments are subject to market price risk arising from uncertainties about future values of these investments. The Company manages the equity price risk through review of investments on a regular basis. The Company's Board of Directors reviews and approves all the equity investment decisions of the Company.

At the reporting date, the exposure to unlisted equity investments at fair value was ' 280.78 crore (Previous Year: ' 233.42 crore).

At the reporting date, the exposure to listed equity investments at fair value was ' 4662.74 crore (Previous Year: ' 5058.89 crore). A variation of ( /-) 10% in share price of equity investments listed on the stock exchange could have an impact of approximately ( /-) ' 466.27 crore (Previous Year ' 505.89 crore) on the OCI and equity investments of the Company. These changes would not have an effect on profit or loss.

ii. Liquidity Risk

Liquidity risk is a risk that suitable sources of funding for Company's business activities may not be available. The Company's objective is to maintain optimum level of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It also maintains adequate sources to finance its short term and long term fund requirements such as overdraft facility and long term borrowing through domestic and international market.

iii. Credit Risk

Credit risk is a risk that a customer or ship party to a financial instrument may fail to perform or pay the due amounts causing financial loss to the Company. It is considered as a part of the risk-reward balance of doing business and is considered on entering into any business contract to the extent to which the arrangement exposes the Company to credit risk. It may arises from Cash and Cash Equivalents, Derivative Financial Instruments, deposits with financial institutions and mainly from credit exposures to customers relating to outstanding receivables. Credit exposure also exists in relation to guarantees issued by the Company. Each segment is responsible for its own credit risk management and reporting.

The Company has issued Corporate Guarantees on behalf of its group companies, refer note no. 50 (II) for details.

Trade Receivables

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and controls relating to customer credit risk management. Outstanding receivables from customers are regularly monitored. An impairment analysis is performed at each reporting date on an individual basis for major clients.

Financial instruments and Cash Deposits

Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance with approved limits of its empanelled banks, for the purpose of investment of surplus funds and foreign exchange transactions. Foreign exchange transaction and investments of surplus funds are made only with empanelled Banks and Liquid & Overnight Mutual Funds. Credit limits of all Banks are reviewed by the Management on regular basis.

iV. Capital Management

Capital includes issued capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders, or issue new shares. No changes were made in the objectives, policies or processes during the reporting year.

55 Accounting Classifications and Fair Value Measurements:

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly

level 3: technique which use inputs that have a significant effect on the recorded fair value that are not based on observable market data. As at 31^st march, 2023, the Company held the following financial instruments carried at fair value on the statement of financial position:

i) The carrying cost of Interest bearing Loans & Borrowings is approximately equal to their Fair Market Value.

ii) The carrying amount of trade receivables, cash and cash equivalents, other bank balance, others receivables, trade payables, interest accrued and due, other payables and other financial liabilities are considered to be same as their fair value due to their short term nature.

iii) With respect to loans, the fair value was calculated based on cash flows discounted using the current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.

As at 31^st March, 2022 the Company held the following financial instruments carried at fair value on the statement of financial position:

i) The carrying cost of Interest-bearing loans & borrowings is approximately equal to their Fair Market Value.

ii) The carrying amount of trade receivables, cash and cash equivalents, other bank balance, others receivables, trade payables, interest accrued and due, other payables and other financial liabilities are considered to be same as their fair value due to their short term nature.

iii) With respect to loans, the fair value was calculated based on cash flows discounted using the current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

56 Hedging Activities and Derivatives:

Derivatives not designated as Hedging instruments:

The Company uses forward currency contracts, interest rate swaps, cross currency interest rate swaps, commodity swap contracts to hedge its foreign currency risks, interest rate risks and commodity price risks. Derivative contracts not designated by management as hedging instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value on each reporting date. Such contracts are entered into for periods consistent with exposure of the underlying transactions.

Derivatives designated as Hedging instruments:

Cash Flow Hedges

The Company enters into hedging instruments in accordance with policies as approved by the Board of Directors with written principles which is consistent with the risk management strategy of the Company. Company has decided to apply hedge accounting for certain derivative contracts that meets the qualifying criteria of hedging relationship entered into post October 01, 2017.

Foreign currency Risk

Foreign exchange forward contracts are designated as hedging instruments in cash flow hedges of firm commitment of capital purchases in USD and existing borrowings e.g. USD / Japanese Yen etc. commodity Price Risk

The Company purchases and sells natural gas / liquefied petroleum gas on an ongoing basis as its operating activities. The significant volatility in natural gas / liquefied petroleum gas prices over the years has led to Company's decision to enter into hedging instruments through swap transactions including basis swaps. These contracts are designated as hedging instruments in cash flow hedges of forecasted sales and purchases of natural gas / liquefied petroleum gas.

The table below shows the position of hedging instruments and hedged items (underlying) as at the balance sheet date.

58 Confirmation of Assets & Liabilities:

i. Some balances of trade and other receivables, trade and other payables are subject to confirmation / reconciliation. Adjustment, if any, will be accounted for on confirmation / reconciliation of the same, which will not have a material impact.

ii. In the opinion of management, the value of assets, other than fixed assets and non-current investments, on realization in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.

63 Wilful Defaulter:

The Company has not been declared as a wilful defaulter by any bank or financial institution or any other lender as on 31^st March 2023 and 31^st March 2022.

64 Benami Property:

The Company is not holding any Benami Property as on 31^st March 2023 and 31^st March 2022. Further, no proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

65 Borrowings Secured against current Assets:

During the financial year ended 31^st March 2023, the Company has not availed any borrowings from banks or financial institutions against security of current assets. Accordingly no quarterly return/statements of current assets filled by the Company with Banks or Financial Institutions.

66 Registration of charges or satisfaction with Registrar of companies (Roc):

During the financial year 2022-23, charge amounting to ' 3,400 crore was created in favour of Bank of India. The charges were created/ satisfied within statutory timelines and no charge creation or satisfaction is pending.

68 The Company is charging depreciation on Natural Gas/ LPG Transmission pipelines considering useful life 30 years and residual value 5%. During the year the Company has sought an opinion of the EAC of ICAI on the Residual value of Natural Gas/ LPG Transmission pipelines vide letter no. GAIL/ND/F&A/CO/EAC Opinion/2022-23/1 dated 25^th November 2022 for which opinion is awaited.

69 Previous Year's figures have been regrouped / reclassified, wherever necessary to correspond with the current year's classification / disclosure. Major items regrouped / reclassified are as under: