Annual Report 2021-22

GOA NATURAL GAS PRIVATE LIMITED

ANNUAL REPORT
2021-22

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 Annual Report 2021-22

INDEX

S. NO. CONTENTS PAGE NO.

1. CHAIRMAN’S MESSAGE 03

2. DIRECTORS REPORT 06

3. BALANCE SHEET 14

4. STATEMENT OF PROFIT AND LOSS 16

5. CASH FLOW STATEMENT 18

6. STATEMENT OF CHANGES IN EQUITY 20

7. SIGNIFICANT ACCOUNTING POLICY 22

8. NOTES ON ACCOUNTS 37

9. INDEPENDENT AUDITORS REPORT 45

10. COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF 56

INDIA

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 Annual Report 2021-22

MESSAGE FROM CHAIRMAN

Dear Shareholders,

On this day of 5th Annual General Meeting of Goa Natural Gas Private Limited, I extend you all a
very warm welcome. I take this opportunity to share with the performance review of the company
for the Financial Year 2021-22. By focusing on its distinctive areas of strength and synergising the
resources, your company was able to respond quickly to the challenges and opportunities and
take the company to new heights.

Globally, there is an increasing thrust of developing cleaner energy and obviously the `spotlight is
on usage of Natural Gas. With Natural Gas being the preferred fuel of the future, the City Gas
Distribution sector is poised for an exponential growth. The Government of India had launched
#Gas4India campaign, where it focuses to aspires to increase the share of natural gas in the
country's primary energy basket from current level of 6.5% to 15% by 2030. Presently, there are
303 Geographical Areas authorized by PNGRB in 27 States and UTs covering approximately 70%
of the Country’s geographical area and 80% of its population. In the last two CGD bidding rounds,
i.e., 11th and 11A, 65 plus 4 Geographical Areas were authorized for development of CGD Network.
We have also been witnessed to the declaration of the CGD sector as a public utility sector by the
Government of India, thereby emphasizing its value and need. In line with the vision and mission
of the Government to create a gas-based economy, your Company is developing a CGD network
in North Goa and Ponda GA. This network will provide uninterrupted gas supply to Industrial,
Commercial, Transport and Household in various talukas in North Goa and Ponda.

It is my pleasure to share that your company is preparing itself to contribute significantly towards
the CGD development in the country.

In the financial year that went by the Company has performed better than the previous year and
was able to complete its MWP Target of 9588 PNG Domestic Connections and 650 Inch Km of
Pipeline (MDPE & Steel) on 3rd November, 2021. Further, on the physical front, registered sales of
8.34 MMSCM recorded during the year 2021-22 as against 0.32 MMSCM in the previous year. On
the financial front the Company has achieved the total turnover of Rs. 36 Crores as against Rs. 4
Crores in the previous year and this is the first time since its inception that the Company has
achieved the profitable figure of Rs. 20.06 Lakhs. Further, you would be glad to know that your
Company has added around 3901 DPNG Connections, 10 Commercial, 6 Industrial and 1 CNG
Station in the FY 2021-22 and we are looking forward to commence operations from around Four
(4) more CNG stations in the up-coming year out of which two (2) CNG Stations are in advance
stage of commissioning. The Company has also laid total 43 Inch Km of Pipeline (Steel & MDPE)
during the FY 2021-22. With respect to industrial supply, your Company has successfully laid and
commissioned steel pipeline network in the industrial hub of Usgaon and has signed the GSA with
10 Customers that includes big names like MRF Industries Limited, Standard Epoxy (Pidilite),
Glenmark Pharmaceuticals Limited, CNK Polymers Products Pvt. Ltd., Medispray, CG Adhesive,
Mandovi Distilleries and Super India Pvt. Ltd. Further, the Company has also signed 12 GSA with
Commercial Customers.

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 Annual Report 2021-22

The COVID-19 pandemic second wave has definitely impacted the progress of the industry in
general leading to delay in project execution worldwide and your Company is no exception.
However, we at GNGPL are confident of making the lost time. We are very positive for the long-
term growth projections for the CGD sector coupled with the robust future growth plans of the
Company and has hired the consultant which has experience of over 45 years at the forefront of
management, engineering and development consultancy in India to prepare the 15 years business
plan of the Company. We are set on the right direction with long-term goals in place. Therefore,
the short-term/ mid-term crisis may not be considered as a deterrent or a setback in the growth
plans of the Company.

On behalf of the Board of Directors and Team GNGPL, I would like to thank all the internal and
external stakeholders for their contribution in the growth story of the Company. I also extend
gratitude to parent companies Bharat Petroleum Corporation Limited & GAIL Gas Limited and the
Central and State Governments and the nodal Ministry for nurturing GNGPL.

Thanking You

Shri Sanjeev Agrawal

CHAIRMAN

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 Annual Report 2021-22

BOARD OF DIRECTORS

Shri Sanjeev Agrawal Shri. Raman Chadha

Chairman & Nominee Director (BPCL) Nominee Director (GAIL Gas Ltd)

Shri. Rahul Tandon Smt. Nalini Malhotra

Nominee Director (BPCL) Nominee Director (GAIL Gas Ltd)

KEY MANAGERIAL PERSONNEL

MR. MOHD ZAFAR KHAN MR. NILAY VAKIL MS. RAVINA JAIN

CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER COMPANY SECRETARY

______________________________________________________________________________________
Registered Office Bankers Statutory Auditors
Rajan Villa, Plot 3, Journalist Colony State Bank of India Suhas Mannur & Co.
Porvorim, Goa North-403521, Indusind Bank Limited Chartered Accountants
ICICI Bank Limited

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 Annual Report 2021-22

DIRECTORS’ REPORT

To,

The Members
Goa Natural Gas Private Limited

Your Directors take pleasure in presenting the 5th (Fifth) Annual Report together with Audited
Financial Statements of your Company for the year ended March 31, 2022.

1. FINANCIAL RESULTS:

The financial performance of the Company during the Financial Year 2021-22 is as follows:
Amount in Thousand
Particulars 1st April, 2021 - 1st April, 2020 -
31st March, 2022 31st March, 2021
Total Income 3,62,220.62 43,042.86
Total Expenditure exclusive of depreciation 3,39,201.66 62,150.88
Depreciation 21,058.03 10,397.80
Total Expenditure inclusive of depreciation 3,60,259.69 72,548.68
Profit/(Loss) before exceptional items 1,960.94 -29,505.83
Exceptional items - Loss on account of fire 1,370.62 19,074.82
Profit/(Loss) before tax 3,331.56 -10,431.01
Current tax - -
Deferred Tax 1,325.30 1,585.14
Profit/Loss after tax 2,006.26 -8,845.87
Transfer to Reserve - -
Balance Carried over to Balance Sheet 2,006.26 -8,845.87
Reserves and Surplus (excluding revaluation reserve) -44,653.23 -46,659.48

2. BUSINESS PLAN

Despite the partial lockdown due to 2nd wave of Covid-19 pandemic in the FY 2021-22, the Company
has successfully commissioned 1 CNG Station, 3901 PNG Domestic Connections, 10 Commercial
Customers and 6 Industrial Customers. Further, the GNGPL has laid pipeline to connect Ponda from
Usgaon, thereby connecting major Industrial Hub in Usgaon including one prominent customer M/s
MRF Limited. In addition to that, the total gas sold during the FY 2021-22 is 8.05 MMSCM as
compared 0.32 MMSCM in the year 2020-21 to all the segments. Further, the Company has laid total
steel pipeline network of 6.4354 km and MDPE pipeline network of 5.7110 km during the FY 2021-
22. Also, during the FY 2021-22 the GNGPL has signed 12 GSA with Commercial Customers and 10

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 Annual Report 2021-22

with Industrial Customers including some prominent names such as M/s Standard Epoxy (Pidilite),
M/s Glenmark Pharmaceuticals Limited, M/s MRF Limited and M/s CNK Polymers Products Pvt. Ltd.

Achievements and challenges faced by the Company

The pandemic definitely slowed down the progress in accessing and approaching various industries
and especially households. This has impacted the targets planned for the domestic connections.
Despite the challenges faced due to pandemic, the GNGPL was able to achieve MWP target of 9588
PNG Domestic connections and 650 Inch Km of Pipeline (MDPE & Steel) on 3rd November, 2021 i.e.
before the deadline.

Also, the steel pipeline has been gasified to one of our biggest industrial customer M/s MRF Limited
and by the next financial year GNGPL is projected to supply 40000 SCMD gas to MRF.

During the FY 2021-22, the Company has gained profit of Rs. 20.06 Lakhs against loss of Rs. 88.45
Lakhs in the previous year. Further, the Company is also working on commissioning of 2 CNG
Stations which is on the advance stage of commissioning.

3. MEETINGS OF THE BOARD

During the Financial Year 2021-22, total of 6 (six) meetings were held the details of which are
summarised below:

S No. Date of Meeting Mode of Meeting No. of Directors Present

1. 27th April, 2021 Video-conference 3
2. 24th May, 2021 Video-conference 3
3. 16th July, 2021 Video-conference 4
4. 25th August, 2021 Physical 4
5. 21st December, 2021 Physical 4
6. 28th March, 2022 Physical 4

The regulations and rules for the recording of the proceedings of the meeting through video-
conference were adhered to.

The details of the number of meetings attended by each of the Director is as follows:

S No. Name Total no. of Board Meetings No. of Board Meeting

held during the Year attended during the Year
1. Mr. M.V. Ravi Someswarudu 2 2
2. Mr. P. Sudhahar 6 6
3. Mr. Vijay Tilak 2 2
4. Mr. Vivek Wathodkar 6 4
5. Mr. Sukhmal Kumar Jain 4 4
6 Mr. Supriya Halder 4 4

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4. DIVIDEND

With a view to conserve resources for future business operations of the Company, your Directors
do not recommend any dividend for the financial year 2021-22.
5. TRANSFER TO RESERVES

During the financial year under review, the net profit of Rs. 20.06 Lakhs has been transferred to
reserves of the Company.

6. STATUTORY AUDITORS OF THE COMPANY

M/s Suhas Mannur & Co., Chartered Accountants, was appointed as the Statutory Auditor of the
Company for FY 2021-22 by the Comptroller & Auditor General of India (C&AG), under the
provision of Section 139(5) of the Companies Act, 2013. Further, C&AG is in the process of
appointment of Statutory Auditor for FY 2022-23.

The Auditor’s Report for the FY 2021-22 doesn’t contain any qualification, reservation or adverse
remark.

Further, C&AG in its report have decided not to conduct the supplementary audit of the financial
statements of the Company for the year ended on 31st March, 2022.

7. DISCLOSURE OF COMPOSITION OF AUDIT COMMITTEE AND PROVIDING VIGIL MECHANISM

The provisions of Section 177 (1) of the Companies Act, 2013 read with Rule 6 of the Companies
(Meetings of the Board and its Powers) Rules, 2014 is not applicable to the Company. However,
since the total loans from the banks exceed the threshold limit of Rs. 50 Crores provided under
Section 177 (9) of the Companies Act, 2013 read with Rule 7 the Companies (Meetings of the
Board and its Powers) Rules, 2014, the Company is required to establish a vigil mechanism.

The vigil mechanism policy was accordingly approved by the Board in its 12th Board meeting held
on 26th May, 2020. The Company has further circulated the vigil mechanism policy to its
employees to ensure awareness and compliance of the policy.
8. PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE

The Company is committed to provide a safe and conductive work environment to its employees.
The Directors further state that during the year under review, there were no cases filed pursuant
to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013.

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9. CHANGES IN THE DIRECTOR

The details of Directors or KMPs appointed and resigned during the FY 2021-22 is summarised
below:
APPOINTMENTS

Name of the Director DESIGNATION Date of Appointment

Mr. Sukhmal Jain DIRECTOR 01-07-2021
Mr. Supriya Halder DIRECTOR 01-07-2021

RESIGNATIONS
Name of the Director DESIGNATION Date of Cessation
Mr. Asit Kumar Jana Director 07-07-2020
Mr. M.V. Ravi Someswarudu Director 30-06-2021
Mr. Vijay Tilak Director 30-06-2021

10. KEY MANAGERIAL PERSONNEL (KMP)

The following personnel have been designated as the Key Managerial Personnel of the Company
pursuant to Sections 2(51) and 203 of the Companies Act, 2013 read with the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014:

• Mr. Mohd Zafar Khan, Chief Executive Officer

• Mr. Nilay Umeshbhai Vakil, Chief Financial Officer
• Ms. Ravina Jain, Company Secretary

11. DECLARATION OF INDEPENDENT DIRECTORS

The provisions of Section 149 pertaining to the appointment of Independent Directors do not
apply to the Company.

12. CORPORATE GOVERNANCE

The organizational framework for corporate governance initiatives in India consists of the Ministry
of Corporate Affairs (MCA) and the Securities and Exchange Board of India (SEBI). SEBI monitors
and regulates corporate governance of listed companies in India through Clause 49 in line with
the requirements of provisions of Companies Act, 2021. This clause is incorporated in the listing
agreement of stock exchanges with companies and it is compulsory for listed companies to comply
with its provisions. Goa Natural Gas Private Limited being a private entity, the requirement for a
full-fledged policy on Corporate Governance is not applicable on the Company; however, the
Company believes that good corporate governance is critical in establishing a positive
organizational culture and it is evident by responsibility, accountability, consistency, fairness and

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transparency towards its stakeholders. There are no significant and material orders passed by the
Regulators /Courts or Tribunals impacting the going concern status and Company's operations in
future.

13. DIRECTORS’ RESPONSIBILITY STATEMENT PURSUANT TO SECTION 134 (3) (c) OF

COMPANIES ACT, 2013:

The Directors confirm that:

a. In the preparation of the annual accounts, the applicable accounting standards had been
followed along with proper explanation relating to material departures;

b. The Directors have selected such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a true and fair view
of the state of affairs of the Company at the end of the financial year and the profit and loss
of the Company for that period;

c. The Directors have taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of this Act for safeguarding the assets
of the Company and for preventing and detecting fraud and other irregularities;

d. The Directors have prepared the annual accounts on a going concern basis; and

e. Company being unlisted, sub clause (e) of section 134(5) is not applicable.

f. The Directors have devised proper systems to ensure compliance with the provisions of all
applicable laws and that such systems were adequate and operating effectively.

14. SECRETARIAL STANDARDS (SS)

The Company complies with the mandatory Secretarial Standards issued by the Institute of
Company Secretaries of India.

15. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF

THE COMPANIES ACT, 2013

There were no loans, guarantees or investments made by the Company under Section 186 of
the Companies Act, 2013, during the year under review and hence the said provision is not
applicable.
16. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES REFERRED TO
IN SUB-SECTION (1) OF THE SECTION 188 OF THE COMPANIES ACT, 2013:

There were no contracts or arrangements made by the Company under Section 188 of the
Companies Act, 2013 with related parties as defined under Section 2(76) of the said Act,
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 Annual Report 2021-22

during the year under review and hence the said provision of Section 188 is not applicable on
the Company.

17. COMPANY’S POLICY RELATING TO DIRECTORS’ APPOINTMENT, PAYMENT OF

REMUNERATION AND DISCHARGE OF THEIR DUTIES

The provisions of Section 178(1) relating to constitution of Nomination and Remuneration

Committee is not applicable on the Company and hence the Company has not devised any
policy relating to appointment of Directors, payment of managerial remuneration, Directors’
qualifications, positive attributes, independence of Directors and other related matters as
provided under Section 178(3) of the Companies Act, 2013.

18. CHANGES IN SHARES CAPITAL

The Company received equity infusions under Rights Issue from its Promoter Companies
during the financial year 2021-22, in the following manner:

13th April, 2021

Name of Allottees No. of Shares Amount Total (in Rs.)
Per Share
GAIL GAS LIMITED 36,20,000 10 3,62,00,000
BHARAT PETROLEUM CORPORATION LIMITED 36,20,000 10 3,62,00,000

TOTAL 72,40,000 7,24,00,000

19. STATEMENT BY THE DIRECTORS INDICATING THE MANNER IN WHICH FORMAL ANNUAL
EVALUATION IS MADE OF ITS OWN PERFORMANCE:

The provisions of Section 134(3) (p) of the Companies Act, 2013, a statement indicating the
manner in which formal annual evaluation has been made by the Board of its own
performance and that of its committees and individual directors is not applicable on the
Company.
20. FRAUD

No fraud has been reported by the auditors under sub section (12) of Section 143 of the
Companies Act, 2013.

21. EXTRACT OF ANNUAL RETURN

Pursuant to Sec 92(3) of Companies Act, 2013 read with Companies (Management and
Administration) Amendment Rules, 2020, every company shall place a copy of annual return

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on the website of the Company, if any, and the web-link of such annual return shall be
disclosed in the Board’s Report.

Link for Extract of Annual Report: https://www.goanaturalgas.com/annual-reports/

22. DETAILS RELATING TO DEPOSITS, COVERED UNDER CHAPTER V OF THE ACT

During the period, the Company has not accepted deposits from the public under Section 73
of the Companies Act, 2013.

23. MATERIAL CHANGES AND COMMITMENTS, IF ANY

The Covid-19 and the consequent lock down has impacted the overall project plans and the
operations of the Company as described as a part of the Business Plan (Point 2) above. Except
as mentioned herein, there are no material changes and commitments affecting the financial
position of the Company that have occurred between the end of the Current financial year
and the date of this Report.

24. CORPORATE SOCIAL RESPONSIBILITY

A company satisfying any of the following criteria during the immediately preceding financial
year is required to comply with CSR provisions specified under section 135(1) of the
Companies Act, 2013 read with the Companies (CSR Policy) Rules, 2014 made thereunder:

(i) net worth of rupees five hundred crore or more, or

(ii) turnover of rupees one thousand crore or more, or
(iii) net profit of rupees five crore or more
Since the Company does not fall under the above thresholds prescribed for constitution of
Corporate Social Responsibility Committee or adoption of Corporate Social Responsibility
Policy, the Company have not formulated any policy or a constituted any committee.
disclosure under Therefore the requirement of disclosure of CSR activities under this head is
not applicable. However, the Company always endeavours to contribute towards the growth
of the society.

25. CHANGE IN THE NATURE OF BUSINESS

The Company has not changed its nature of business during the year under review.

26. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES

The Company does not have any Subsidiary, Joint venture or Associate Company.

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27. DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE

TO THE FINANCIAL STATEMENTS

The Company has adopted adequate Internal Financial Control measures with reference to
Financial Statements. The Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls over
financial reporting operating effectively as at March 31, 2022.

28. ACKNOWLEDGEMENT

The Directors acknowledge with thanks the support and co-operation extended by the
shareholders and employees at all levels.

On behalf of Board of Directors

For M/s Goa Natural Gas Pvt Ltd

Rahul Tandon Nalini Malhotra

DIN: 09587598 DIN: 08734265
Nominee Director Nominee Director

Date: 30.08.2022 Date: 30.08.2022

Place: Mumbai Place: Delhi

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 Annual Report 2021-22

BALANCE SHEET AS AT 31ST MARCH 2022

(Rupees in ` 000)
Particulars Note Figures as at the Figures as at the
No. end of current end of previous
reporting period reporting period
ASSETS
(I) Non- Current Assets
(a) Property, Plant and Equipment 2 8,27,485.69 3,87,771.63
(b) Intangible Assets 2 109.15 5.04
(c) Capital Work-in-progress 2 7,38,269.71 8,94,365.34
(d) Financial Assets
(i) Loans 3 1,688.18 866.23
(e) Deferred Tax Assets (Net) 22 13,617.24 14,942.54
(f) Other Non-current Assets 4 33,248.04 59,238.52
Total Non Current Assets (A) 16,14,418.01 13,57,189.30

Current Assets
(a) Inventories 5 623.06 146.51
(b) Financial Assets
(i) Trade Receivables 6 21,725.32 13,517.26
(ii) Cash and Cash Equivalents 7 2,007.48 6,938.37
(iii) Other Financial Assets 8 265.46 268.07
(c) Other Current Non Financial Assets 9 12,836.50 24,191.47
Total Current Assets (B) 37,457.81 45,061.69

Total Assets (I + II) 16,51,875.83 14,02,250.98

EQUITY AND LIABILITIES

Equity
(a) Equity Share Capital 10 6,00,000.00 5,27,600.00
(b) Other Equity 11
(44,653.23) (46,659.48)
Total Equity (C) 5,55,346.77 4,80,940.52
Liabilities
Non- Current Liabilities
(a) Financial Liabilities
(i) Borrowings 12 8,44,782.28 8,15,861.82
(ii) Other Financial Liabilities
Total Non-Current Liabilities (D) 8,44,782.28 8,15,861.82

(II) Current Liabilities

(a) Financial Liabilities
(i) Trade Payables
(A) Total outstanding dues of micro
enterprises and small enterprises; and
(B) Total outstanding dues of creditors 13 10,354.09 7,278.38
other than micro enterprises and small ent.
(ii) Other financial Liabilities 14 1,96,647.46 62,684.55
(b) Provisions 15 44,745.23 35,485.71
Total Current Liabilities (E) 2,51,746.77 1,05,448.64
TOTAL Equity & Liabilities (I + II) 16,51,875.83 14,02,250.98

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Significant accounting policies 1

Notes on Accounts 2 to 23
The accompanying notes 1 to 23 are integral part of these financial statements

FOR & ON BEHALF OF THE BOARD OF DIRECTOR As per our report of even date attached

FOR SUHAS MANNUR & CO

Chartered Accountant
Firm Registration No 122428W

Nilay Vakil Mohd Zafar Khan Ravina Jain CA. SUHAS MANNUR
CFO CEO CS PARTNER
PAN-AJPPV6458H PAN-ADWPK1619E PAN-CZAPK3255Q Membership No. 111594
UDIN: 22111594AHXNOT9812

Sukhmal Kumar Jain Vivek Vishwas Wathodkar

(Chairman & Director) Director
DIN-09206648 DIN-08486382

PLACE: Porvorim - Goa

DATE: 27.04.2022

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 Annual Report 2021-22

STATEMENT OF PROFIT & LOSS FOR THE PERIOD ENDED 31ST MAR, 2022
(Rupees in ` 000)
Particulars Note Figures for the Figures for the
No. current reporting previous
period reporting period

I. Revenue from operations 16 3,61,650.79 43,034.32

II. Other Income 16A 569.83 8.54
III. Total Income (I+II) 3,62,220.62 43,042.86

IV. Expenses
Purchase of Stock in trade 17 2,56,455.06 25,261.10
Change in Inventories of Stock in trade 18 (476.54) 130.88
Finance Costs 19 22,317.33 14,966.52
Depreciation Expense 2 21,058.03 10,397.80
Other Expenses 20 60,905.81 21,792.38
Total Expenses (IV) 3,60,259.69 72,548.68

V Profit/(Loss) before Exceptional Items and Tax 1,960.94 (29,505.83)

(III-IV)

VI Exceptional Items - -
Insurance Claim - 19,074.82
Period adjustments 23 1,370.62 -

VII Profit/Loss Before Tax (V-VI) 3,331.56 (10,431.01)

VIII Tax Expenses:

(1) Current Tax - -

(2) Deferred Tax 22 1,325.30 (1,585.14)

IX Profit / (Loss) for the period from Continuing 2,006.26 (8,845.87)

Operations (VII-VIII)

X Profit/(Loss) from Discontinued Operations - -

XI Tax Expense of Discontinued Operations - -

XII Profit / (Loss) from Discontinued Operations - -

(after tax) (X-XI)

XIII Profit/(Loss) for the year (IX+XII) 2,006.26 (8,845.87)

XIV Other Comprehensive Income

(A) (i) Items that will not be reclassified to - -

profit or loss
(ii) Income tax relating to items that will not be - -
reclassified to profit or loss

(B) (i) Items that will be reclassified to profit or - -

loss
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 Annual Report 2021-22

(ii) Income tax relating to the items that will be - -

reclassified to profit or loss

XV Total Comprehensive Income for the period 2,006.26 (8,845.87)

(XIII+XIV) (Comprising profit/(loss) and other
Comprehensive Income for the year)

XVI Earning per equity share

(1) Basic 21 0.03 (0.23)
(2) Diluted 21 0.03 (0.23)

Significant accounting policies 1

Notes on Accounts 2 to 23
The accompanying notes 1 to 23 are integral part of these financial statements

FOR & ON BEHALF OF THE BOARD OF DIRECTOR As per our report of even date attached

FOR SUHAS MANNUR & CO

Chartered Accountant
Firm Registration No 122428W

Nilay Vakil Mohd Zafar Khan Ravina Jain CA. SUHAS MANNUR
CFO CEO CS PARTNER
PAN-AJPPV6458H PAN-ADWPK1619E PAN-CZAPK3255Q Membership No. 111594
UDIN: 22111594AHXNOT9812

Sukhmal Kumar Jain Vivek Vishwas Wathodkar

(Chairman & Director) Director
DIN-09206648 DIN-08486382

PLACE: Porvorim - Goa

DATE: 27.04.2022

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 Annual Report 2021-22

CASH FLOW STATEMENT FOR THE YEAR ENDED 31st March 2022
(Rupees in ` 000)
Particulars Figures for the Figures for the
current reporting previous reporting
period period
(A) CASH FLOWS FROM OPERATING ACTIVITIES

Net Profit/Loss before tax 3,331.56 (10,431.01)

Adjustments For:-
Finance Cost 22,317.33 14,966.52
Interest Received - -
Depreciation & Amortisation Expenses 21,058.03 10,397.80
Operating Profit/Loss before Working Capital 46,706.91 14,933.32
Changes
Adjustments for changes in Working Capital:
Other Current Liabilities 1,87,504.81 51,556.92
Other Current Assets 2,672.98 (6,938.22)
Cash Flow Operations 2,36,884.70 59,552.02
Direct Taxes Paid (Net of Refunds) - -
Net Cash Generated/(Used In) from Operating 2,36,884.70 59,552.02
activities

(B) CASH FLOWS FROM INVESTING ACTIVITIES

Purchase Of Fixed Assets (4,60,941.88) (1,46,322.16)
Additions to Capital Work in Progress 1,14,744.82 (1,97,036.24)
Financial Assets-Loans (NC) 25,168.52 (22,332.68)
Interest Received - -
Net Cash Generated/(Used In) From Investing (3,21,028.53) (3,65,691.08)
Activities

(C) CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds From Capital 72,400.00 1,77,600.00
Proceeds from Long term borrowings 28,920.46 1,14,237.92
Other Financial Liabilities 209.81 9,956.94
Share Application Money pending Allotment
Finance Cost (22,317.33) (14,966.52)
Net Cash Generated/(Used In) From Financing 79,212.94 2,86,828.34
Activities
(A+B+C) Net Increase/Decrease In Cash & Cash Equivalents (4,930.89) (19,310.72)
Cash & Cash Equivalents at The Beginning Of The 6,938.37 26,249.08
Year
Cash & Cash Equivalents at The End Of The Year 2,007.48 6,938.37
Cash and bank balances as per balance sheet 2,007.48 6,938.37

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Significant accounting policies 1

Notes on Accounts 2 to 23
The accompanying notes 1 to 23 are integral part of these financial statements

FOR & ON BEHALF OF THE BOARD OF DIRECTOR As per our report of even date attached

FOR SUHAS MANNUR & CO

Chartered Accountant
Firm Registration No 122428W

Nilay Vakil Mohd Zafar Khan Ravina Jain CA. SUHAS MANNUR
CFO CEO CS PARTNER
PAN-AJPPV6458H PAN-ADWPK1619E PAN-CZAPK3255Q Membership No. 111594
UDIN: 22111594AHXNOT9812

Sukhmal Kumar Jain Vivek Vishwas Wathodkar

(Chairman & Director) Director
DIN-09206648 DIN-08486382

PLACE: Porvorim - Goa

DATE: 27.04.2022

19
 Annual Report 2021-22

STATEMENT OF CHANGES IN THE EQUITY FOR THE YEAR ENDING AS ON 31ST MARCH, 2022

A. Equity Share Capital (Rupees in ` 000)

Balance as at 31st March 2020 Changes in Equity Share Balance as at 31st Changes in Equity Balance as at 31st March
Capital during F.Y. 2020- March 2021 Share Capital 2022
21 during F. Y .2021-
22
3,50,000 1,77,600 5,27,600 72,400 6,00,000
B. Other Equity (Rupees in ` 000)

Shares Equity Debt Equity Other Mone

Applic Compo Instrume Instrum items of y
ation nent of nts ents other Receiv
Reserves and Surplus Total
Mone Compo through through compre ed
y und Other Other hensive agains
Pendi financia Compreh Compre income t
ng l Securitie Other ensive hensive share
allotm instrum s Reserve Income Income warra
ent ents Capital Retained nts
Premiu s
Reserve Earnings
m (Specify
Reserve Nature)
Balance of the - - - - - (37,813.61) - - - - (37,813.71)
beginning of the
reporting period as on
31st March, 2020
- - - - - - - - -
Total Comprehensive
Income during the (8,845.87) (8,845.87)
period from 1st April,
2020 to 31st March,
2021
Balance as on - - - - - (46,659.48) - - - - (46,659.48)
31st March, 2021
Changes in accounting - - - - - - - - -
policy or prior period
errors
Restated balance at - - - - - - - - -
the beginning of the
reporting period
Total - - - - - - - - -
Comprehensive (2,006.26) (2,006.26)
Income during the
reporting
Dividendsperiod - - - - - - - - -

Transfer to retained - - - - - - - - -
earnings
Any other change (to - - - - - - - - -
be specified)
Balance as on 31st
(44,653.23) (44,653.23)
March, 2021

20
 Annual Report 2021-22

Significant accounting policies 1

Notes on Accounts 2 to 23
The accompanying notes 1 to 23 are integral part of these financial statements

FOR & ON BEHALF OF THE BOARD OF DIRECTOR As per our report of even date attached

FOR SUHAS MANNUR & CO

Chartered Accountant
Firm Registration No 122428W

Nilay Vakil Mohd Zafar Khan Ravina Jain CA. SUHAS MANNUR
CFO CEO CS PARTNER
PAN-AJPPV6458H PAN-ADWPK1619E PAN-CZAPK3255Q Membership No. 111594
UDIN: 22111594AHXNOT9812

Sukhmal Kumar Jain Vivek Vishwas Wathodkar

(Chairman & Director) Director
DIN-09206648 DIN-08486382

PLACE: Porvorim - Goa

DATE: 27.04.2022

21
 Annual Report 2021-22

NOTE -1:- SIGNIFICANT ACCOUNTING POLICIES

1. Corporate information

Goa Natural Gas Private Limited (“GNGPL”) is a company domiciled in India with registered office
situated at Plot No. 33, Rajan Villa, Journalist Colony, Porvorim, GOA.
GNGPL is a Joint Venture Company of GAIL Gas Limited {A wholly owned subsidiary of Gail (India)
Limited} and Bharat Petroleum Corporation Limited. It was incorporated on 13th January, 2017 for
the smooth implementation of City Gas Distribution (CGD) projects based on the Joint Venture
Agreement of the Consortium. The Consortium, a Joint Venture Company namely M/s. Goa Natural
Gas Pvt. Ltd., has been authorized by Petroleum and Natural Gas Regulatory Board (PNGRB) for
implementing City Gas Distribution Network in the Geographical Area of Goa State.
The financial statements of the company for the year ended 31st March 2022 were authorized for
issue by Board of Directors (BOD) on 27th April 2022.
2. Basis of preparation
The Financial Statements are prepared in accordance with Indian Accounting Standards (Ind. AS)
notified under Section 133 of the Companies Act, 2013 (“Act”) read with Companies (Indian
Accounting Standards) Rules, 2015; and the other relevant provisions of the Act and Rules made
thereunder.

The financial statements have been prepared on a historical cost basis except for certain assets and
liabilities which have been measured at fair value or revalued amount. The fact is disclosed in the
relevant accounting policy.

The financial statements are presented in Indian Rupees (‘INR’) and the values are rounded off to the
nearest thousands, except otherwise indicated.
3. Significant Accounting Policies

3.1 Property, plant and equipment

(i) Tangible Assets

Property, plant and equipment are stated at original cost net of tax / duty credit availed, less
accumulated depreciation and accumulated impairment losses, if any. All costs relating to acquisition
of fixed assets till commissioning of such assets are capitalized.
When significant parts of property, plant and equipment are required to be replaced at intervals, the
Company derecognizes the replaced part, and recognizes the new part with its own associated useful
life and it is depreciated accordingly.

Property, plant and equipment are eliminated from financial statement, either on disposal or when
retired from active use. Losses arising in case retirement of property, plant and equipment and gains
or losses arising from disposal of property, plant and equipment are recognized in the statement of
profit and loss in the year of occurrence.

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 Annual Report 2021-22

Depreciation is provided, under the Straight-Line Method, pro rata to the period of use, based on
useful life specified in Schedule II to the Companies Act, 2013. The asset’s residual values, useful lives
and methods of depreciation/amortization are reviewed at each reporting period and adjusted
prospectively, if appropriate.
(ii) Capital Work in Progress

Capital work-in-progress includes cost of property, plant and equipment under installation / under
development as at the balance sheet date.
3.2 Impairment of assets

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

3.3 Inventories

Stock Inventory of the companies consist of natural gas stock. The inventory are measured at the
lower of cost and net realizable value. The cost of inventories is based on the first-in first-out
principle, and includes expenditure incurred in acquiring the inventories, production or conversion
costs and other costs incurred in bringing them to their existing location and condition. In the case
of manufactured inventories, cost includes an appropriate share of production overheads based on
normal operating capacity. The company calculates the natural gas inventory based on the volume
of gas available in the cascade and line pack on the regular frequency.

Stores & Spares which meet the definition of property plant and equipment and satisfy the
recognition criteria are capitalized as property, plant and equipment. Also, company conducts the
physical verifications of such stores and spares on regular frequency.

Net realizable value is determined based on estimated selling price, less further costs expected to be
incurred to completion and disposal.

Raw materials and finished products are valued at cost or net realizable value, whichever is lower.

Stock in process is valued at cost or net realizable value, whichever is lower. It is valued at cost where
the finished products in which these are to be incorporated are expected to be sold at or above cost.

Stock of gas in pipeline is valued at cost (FIFO) or net realizable value whichever is lower.

Stores and spares and other material for use in production of inventories are valued at weighted
average cost or net realizable value, whichever is lower. It is valued at weighted average cost where
the finished products in which they will be incorporated are expected to be sold at/or above cost.

Surplus/obsolete stores including capital stores and spares are valued at cost or net realizable value,
whichever is lower.

3.4 Foreign currency transactions

The Company’s financial statements are presented in INR, which is also the Company’s functional
currency.
23
 Annual Report 2021-22

Foreign currency transactions are recorded on initial recognition in the functional currency, using the
exchange rate at the date of the transaction.

At each balance sheet date, foreign currency monetary items (such as Cash, Receivables, Loans,
Payables, etc.) are reported using the closing exchange rate (BC selling rate for payable and TT buying
rate for receivable).

Exchange differences that arise on settlement of monetary items or on reporting at each balance
sheet date of the Company's monetary items at the closing rate are recognized as gain or loss in the
period in which they arise.

Non-monetary items (such as Investments, Fixed Assets, etc.) which are carried at historical cost
denominated in a foreign currency are reported using the exchange rate at the date of the
transaction.

3.5 Revenue and Other Income

Sales are recognized on transfer of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers. Sales include excise duty but exclude
value added tax. Any retrospective revision in prices is accounted for in the years of such revision.

Income in respect of MGO of Natural Gas and Interest on delayed realization from customers is not
provided. Receipts during the year on account of MGO and Interest on delayed realization are
adjusted on receipt basis.

The company has considered the threshold limit of Rs 1 lakhs for considering the
income/expenditure in aggregate pertaining to prior years (s) and above that threshold limit the
amount is disclosed as prior period adjustment.

3.6 Borrowing Costs

Borrowing costs that are attributable to the acquisition, construction, or production of a qualifying
asset are capitalized as a part of the cost of such asset till such time the asset is ready for its intended
use or sale, after netting off any income earned on temporary investment of such funds. A qualifying
asset is an asset that necessarily requires a substantial period of time (generally over twelve months)
to get ready for its intended use or sale.

All other borrowing costs are recognized as expense in the period in which they are incurred.
3.7 Leases
Lease arrangements where the risks and rewards incidental to ownership of an asset substantially
vest with the lessor are recognized as operating expenses. Lease rentals under operating expenses
are recognized in the statement of profit and loss on straight line basis unless the payments are
structured to increase in line with expected general inflation to compensate for the lessor's expected
inflationary cost increases.

As a Lessee, at the commencement date, corporation recognizes a right-of-use asset at cost and a
lease liability at present value of the lease payments that are not paid at commencement date. To
assess whether a contract conveys the right to control the use of an identified asset, the Company
assesses whether:

24
 Annual Report 2021-22

• The contract involves the use of an identified asset;

• The Company has right to obtain substantially all of the economic benefits from use of the asset
through the period of the lease and;
• The Company has the right to direct the use of the asset.

Right-of-use assets are measured at cost comprising the following:

• The amount of the initial measurement of lease liability
• Any lease payments made at or before the commencement date less any lease incentives
received
• Any initial direct costs; and
• An estimate of costs to be incurred by the lessee in dismantling and removing the underlying
asset or restoring the underlying asset or site on which it is located.

Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease
term on a straight-line basis.

Payments associated with short-term leases are recognized on a straight-line basis as an expense in
the statement of profit and loss. Short term leases are the leases with a lease term of 12 months or
less. Further, rental payments for the land where lease period is considered to be indefinite or
indeterminable, these are charged off to the statement of profit and loss.

3.8 Taxes
Current Income Tax

Current tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws
that have been enacted or substantively enacted by the balance sheet date.

Deferred Tax

Deferred tax is provided, using the balance sheet method, on all temporary differences at the balance
sheet date between the tax bases of assets and liabilities and their carrying amounts for financial
reporting purposes.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the
period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have
been enacted or substantively enacted at the balance sheet date.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and is adjusted to
the extent that it is no longer probable that sufficient taxable profit will be available to all ow
all or part of the asset to be recovered.
3.9 Provisions, Contingent liabilities, Contingent assets and Commitments General
Provisions are recognized 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.

Contingent liabilities exceeding Rs.5 Lakhs in each case are disclosed by way of notes to accounts.

25
 Annual Report 2021-22

Estimated amount of contracts remaining to be executed on capital account are disclosed in each
case above Rs.5 Lakhs.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance
sheet date.
3.10 Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current
classification.

An asset as current when it is:

• Expected to be realized or intended to sold or consumed in normal operating cycle
• Held primarily for the purpose of trading
• Expected to be realized within twelve months after the reporting period, or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:
• It is expected to be settled in normal operating cycle
• It is held primarily for the purpose of trading
• It is due to be settled within twelve months after the reporting period, or
• There is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting period

The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are
classified as non-current assets and liabilities.
3.11 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.

i) Financial assets

Classification
The Company classifies financial assets as subsequently measured at amortized cost, fair value
through other comprehensive income or fair value through statement of profit or loss on the basis
of its business model for managing the financial assets and the contractual cash flows characteristics
of the financial asset.

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition
of the financial asset.

Subsequent measurement

For purposes of subsequent measurement financial assets are classified in two broad categories:

26
 Annual Report 2021-22

a) Financial assets at amortized cost

Financial assets are measured at amortized cost when asset is held within a business model, whose
objective is to hold assets for collecting contractual cash flows and contractual terms of the asset
give rise on specified dates to cash flows that are solely payments of principal and interest. Such
financial assets are subsequently measured at amortized cost using the effective interest rate (EIR)
method. The losses arising from impairment are recognized in the Statement of profit and loss. This
category generally applies to trade and other receivables.

b) Financial assets at fair value

Where assets are measured at fair value, gains and losses are either recognized entirely in the
statement of profit and loss (i.e. fair value through profit or loss), or recognized in other
comprehensive income (i.e. fair value through other comprehensive income).

A financial asset that meets the following two conditions is measured at fair value through other
comprehensive income unless the asset is designated at fair value through profit or loss under the
fair value option:
• Business model test: The financial asset is held within a business model whose objective is
achieved by both collecting contractual cash flows and selling financial assets.
• Cash flow characteristics test: The contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.
All other financial asset is measured at fair value through profit or loss.

De-recognition

A financial asset is primarily derecognized when the rights to receive cash flows from the asset have
expired or the Company has transferred its rights to receive cash flows from the asset.

Impairment of financial assets

The Company assesses impairment based on expected credit losses (ECL) model for measurement
and recognition of impairment loss on the financial assets that are trade receivables or contract
revenue receivables and all lease receivables.
ii) Financial liabilities

All financial liabilities are initially recognized at fair value. The Company's financial liabilities include
trade and other payables, loans and borrowings including bank overdraft. Subsequent measurement
of financial liabilities depends on their classification as fair value through Profit and loss (FVTPL) or
at amortized cost.

All changes in fair value of financial liabilities classified as FVTPL is recognized in the Statement of
Profit and Loss. Amortized cost category is applicable to loans and borrowings, trade and other
payables. After initial recognition the financial liabilities are measured at amortized cost using the
EIR (Effective Interest Rate) method. Gains and losses are recognized in profit and loss when the
liabilities are derecognized as well as through the EIR amortization process. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees or cost that are

27
 Annual Report 2021-22

integral part on EIR. The EIR amortization is included as finance cost in the Statement of Profit and
Loss.

De-recognition
A financial liability is derecognized 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 de-recognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognized in the statement of
profit and loss.

iii) Off-setting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet
if there is a currently enforceable legal right to offset the recognized amounts and there is an
intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

3.12 Earnings per share

Basic earnings per share is calculated by dividing the profit from continuing operations and total
profit, both attributable to equity shareholders of the Company by the weighted average number of
equity shares outstanding during the period.

4. Significant accounting judgments, estimates and assumptions

The preparation of the Company’s financial statements requires management to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and
liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities at the date
of financial statements. Estimates and assumptions are continuously evaluated and are based on
management’s experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. Uncertainty about these assumptions and
estimates could result in outcomes that require a material adjustment to the carrying amount of
assets or liabilities affected in future periods.

In particular, the Company has identified the following areas where significant judgments, estimates
and assumptions are required. Further information on each of these areas and how they impact the
various accounting policies are described below and also in the relevant notes to the financial
statements. Changes in estimates are accounted for prospectively.

4.1 Judgments

In the process of applying the Company’s accounting policies, management has made the following
judgments, which have the most significant effect on the amounts recognized in the financial
statements:

4.2 Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to claims against the
Company, including legal, contractor, land access and other claims. By their nature, contingencies
will be resolved only when one or more uncertain future events occur or fail to occur. The assessment

28
 Annual Report 2021-22

of the existence, and potential quantum, of contingencies inherently involves the exercise of
significant judgment and the use of estimates regarding the outcome of future events.

4.3 Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year, are described below. The Company based its
assumptions and estimates on parameters available when the financial statements were prepared.
Existing circumstances and assumptions about future developments, however, may change due to
market change or circumstances arising beyond the control of the Company. Such changes are
reflected in the assumptions when they occur.

4.4 Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot
be measured based on quoted prices in active markets, their fair value is measured using valuation
techniques including the DCF model. The inputs to these models are taken from observable markets
where possible, but where this is not feasible, a degree of judgment is required in establishing fair
values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility.
Changes in assumptions about these factors could affect the reported fair value of financial
instruments.

4.5 Impairment of financial assets

The impairment provisions for financial assets are based on 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 Company’s past history, existing market conditions
as well as forward looking estimates at the end of each reporting period.

FOR & ON BEHALF OF THE BOARD OF DIRECTOR As per our report of even date
attached
FOR SUHAS MANNUR & CO
Chartered Accountant
Firm Registration No 122428W

Nilay Vakil Mohd Zafar Khan Ravina Jain CA. SUHAS MANNUR
CFO CEO CS PARTNER
PAN-AJPPV6458H PAN-ADWPK1619E PAN-CZAPK3255Q Membership No. 111594
UDIN: 22111594AHXNOT9812

Sukhmal Kumar Jain Vivek Vishwas Wathodkar

(Chairman & Director
Director)
DIN-09206648 DIN-08486382

Place: Goa
Date: 27.04.2022

29
 Note-2

PROPERTY ,PLANT AND EQUIPMENT AND INTANGIBLE ASSETS (Rupees in ` 000)

Gross Block Depreciaton Impairment of Assets Net Block

Addition/ Deduction Deduction/ As on

As on
Particulars As on 1st Apr, Adjustment /Adjustment As on 31st Mar, As on 1st Adjustment As on 31st For the 31st As on 31st Mar, As on 1st Apr,
For the period 1st Apr,
2021 during the during the 2022 Apr, 2021 during the Mar, 2022 period Mar, 2022 2021
2021
period period period 2022

Property, Plant & Equipment

Plant & Machinery 3,98,484.96 4,59,129.82 - 8,57,614.78 12,688.68 20,415.50 33,104.18 - - - 8,24,510.60 3,85,796.28
Furniture and Fixtures 1,108.49 12.45 - 1,120.93 295.69 106.04 401.73 - 65.67 - 653.53 812.79
Office Equipment 814.33 268.25 - 1,082.58 144.66 174.86 319.53 - - - 763.05 669.67
Computer 1,026.87 437.70 - 1,464.57 533.98 315.57 849.54 - - - 615.03 492.89
ROU Assets 976.13 976.13 - 32.64 32.64 943.48 -
SUB TOTAL (A) 4,01,434.64 4,60,824.35 - 8,62,258.99 13,663.02 21,044.61 - 34,707.63 - 65.67 - 8,27,485.69 3,87,771.63

Intangible Assets
Software 100.84 117.53 - 218.36 95.79 13.42 - 109.21 - - - 109.15 5.04

SUB TOTAL (B) 100.84 117.53 - 218.36 95.79 13.42 - 109.21 - - - 109.15 5.04

Capital Work-in-progress 8,94,365.34 3,02,840.48 4,58,807.68 7,38,398.15 - - - - - 128.44 - 7,38,269.71 8,94,365.34

SUB TOTAL (C) 8,94,365.34 3,02,840.48 4,58,807.68 7,38,398.15 - - - - - - - 7,38,269.71 8,94,365.34

Total [A + B + C ] (Current Year) 12,95,900.82 7,63,782.36 4,58,807.68 16,00,875.50 13,758.81 21,058.03 - 34,816.84 - 65.67 - 15,65,864.55 12,82,142.01

30
Annual Report 2021-22
 Annual Report 2021-22

Note-3 NON CURRENT ASSETS - FINANCIAL ASSETS - LOANS

(Rupees in ` 000)
Particulars As at 31-03-2022 As at 31-03-2021
Security Deposit
- Unsecured, Considered Good 1,688.18 866.23

Total 1,688.18 866.23

Note-4 OTHER NON CURRENT ASSETS

(Rupees in ` 000)
Particulars As at 31-03-2022 As at 31-03-2021
Advance for Land 4,728.29 4,728.29
Other Advances 4,882.32 5,670.10
Prepaid Expenses 23,637.43 48,840.13

Total 33,248.04 59,238.52

Note-5 INVENTORIES
(Rupees in ` 000)
Particulars As at 31-03-2022 As at 31-03-2021

Stock in Trade:
Natural Gas 623.06 146.51

Total 623.06 146.51

Note-6 TRADE RECEIVABLES

(Rupees in ` 000)
Particulars As at 31-03-2022 As at 31-03-2021

Unsecured considered good

Receivable from Others 20,017.83 13,166.31
Receivable from Related parties 1,707.49 350.95
Total Receivables 21,725.32 13,517.26
Total 21,725.32 13,517.26

No trade or other receivable are due from directors or other officers of the company either severally or jointly
with any other person. Nor any trade receivable are due from firms or private companies respectively in which
any director is a partner, a director or a member.

Note-7 CASH AND CASH EQUIVALENTS

(Rupees in ` 000)
Particulars As at 31-03-2022 As at 31-03-2021

Balances with Banks

Current Accounts 2,007.48 6,938.37

Total 2,007.48 6,938.37

31
 Annual Report 2021-22

Note-8 OTHER FINANCIAL ASSETS

(Rupees in ` 000)
Particulars As at 31-03-2022 As at 31-03-2021

Advance to employees 27.28 18.33

Others 238.18 249.75

Total 265.46 268.07

Note-9 OTHER CURRENT NON-FINANCIAL ASSETS

(Rupees in ` 000)
Particulars As at 31-03-2022 As at 31-03-2021

Prepaid Expenses 6,386.79 24,100.32

Other Advances 5,615.02 -
Income tax / TDS / TCS 834.68 91.15

Total 12,836.50 24,191.47

Note-10 EQUITY SHARE CAPITAL

(a) Equity
(Rupees in ` 000)
PARTICULARS As at 31-03-2022 As at 31-03-2021
Authorised Share capital
60000000 Equity Shares of Rs. 10/- each 6,00,000 6,00,000
(Previous Year 60000000 Equity Shares of Rs. 10/- each)

Issued, Subscribed & Fully paid -up Share capital

60000000 Equity Shares of Rs. 10/- each 6,00,000 5,27,600
(Previous Year 52760000 Equity Shares of Rs.10/- each)
Total 6,00,000 5,27,600

Particulars As at 31-03-2022 As at 31-03-2021

Number (Rupees in ` 000) Number (Rupees in ` 000)
Shares outstanding at the 5,27,60,000 5,27,600 3,50,00,000 3,50,000
beginning of the year
(+) Shares Issued During the year 72,40,000 72,400 1,77,600
1,77,60,000
(-) Shares bought back during the - - - -
year
Shares outstanding at the end of 6,00,00,000 6,00,000 5,27,600
the year 5,27,60,000

32
 Annual Report 2021-22

(b) Details of shares held by the shareholders holding more than 5% shares at the end
Name of the Shareholder As at 31-03-2022 As at 31-03-2021
No. of Shares % of Holding No. of Shares % of Holding
Equity Shares
Bharat Petroleum Corporation 3,00,00,000 50% 2,63,80,000 50%
Limited
GAIL Gas Limited 3,00,00,000 50% 2,63,80,000 50%

Note-11 OTHER EQUITY

(Rupees in ` 000)
PARTICULARS As at 31-03-2022 As at 31-03-2021
A. Share Application Money Pending Allotment
Opening Balance - -
Additions during the current quarter - -
Allotment during the quarter - -
Closing Balance - -
B. Retained Earnings:
Opening Balance (46,659.48) (37,813.61)
Add: Current Year Profit / (Loss) 2,006.26 (8,845.87)
Total (44,653.23) (46,659.48)

Note-12 BORROWINGS
(Rupees in ` 000)
PARTICULARS As at 31-03-2022 As at 31-03-2021
Non-Current Borrowings
Secured Term Loan
- State Bank of India 8,44,782.28 8,15,861.82
The Loan is secured by a first ranking charge on the fixed assets and current assets of the Company. The Loan
will be repayable over a period of 10 years starting from Jan 2022 and ending in Oct 2031. The rate of interest
applicable shall be floating link to 1-year MCLR of SBI plus a spread of 0.1%; rate of interest from 01/04/2021
was 7.10% with monthly rest. Outstanding balance include moratorium interest of Rs.2,96,47,923/-
TOTAL 8,44,782.28 8,15,861.82

Note-13 Trade Payables

(Rupees in ` 000)
PARTICULARS As at 31-03-2022 As at 31-03-2021
Trade Payable to Related Party 10,354.09 7,278.38
TOTAL 10,354.09 7,278.38

Note-14 OTHER FINANCIAL LIABILITIES

(Rupees in ` 000)
PARTICULARS As at 31-03-2022 As at 31-03-2021
Deposits 876.23 415.06
Payments to Related parties 60,004.53 5,833.24
Capital Creditors 41,416.49 37,829.27
Other Liabilities 63,759.40 2,710.39

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 Annual Report 2021-22

Statutory Dues (Duties & Taxes) 7,720.32 2,784.53

Deposits 22,870.49 13,112.06
TOTAL 1,96,647.46 62,684.55

Note-15 PROVISIONS
(Rupees in ` 000)
PARTICULARS As at 31-03-2022 As at 31-03-2021
Capital Work in progress
-Provision 44,692.82 35,369.91
Total (A) 44,692.82 35,369.91
Provisional Liabilities
-Statutory Audit Fee - 70.80
-Expenses 52.41 45.00
Total (B) 52.41 115.80
Grand Total 44,745.23 35,485.71

Note-16 REVENUE FROM OPERATIONS

(Rupees in ` 000)
PARTICULARS As at 31-03-2022 As at 31-03-2021
(1) Sale of Products
Sale of Gas, compression 3,60,203.40 41,751.80

(2) Other Operating Revenue

Application Fee - Domestic Connections 1,447.39 1,282.52
Total 3,61,650.79 43,034.32

Note-16A OTHER INCOME

(Rupees in ` 000)
PARTICULARS As at 31-03-2022 As at 31-03-2021
Other Income 569.83 8.54
Total 569.83 8.54

Note-17 PURCHASE OF GAS

(Rupees in ` 000)
Particulars As at 31-03-2022 As at 31-03-2021
Purchase of Gas 2,19,365.14 21,430.18
Direct Expenses 37,089.93 3,830.92
Total 2,56,455.06 25,261.10

Note-18 Change in Inventories of Finished Goods, Stock-in-Trade and Work-in-Progress

(Rupees in ` 000)
PARTICULARS As at 31-03-2022 As at 31-03-2021
Inventories as at March 31,2022
Finished Goods 623.06 146.51
623.06 146.51
Inventories as at March 31,2021
Finished Goods 146.51 277.39
146.51 277.39
Total -476.54 130.88

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 Annual Report 2021-22

Note-19 FINANCE COST

(Rupees in ` 000)
Particulars As at 31-03-2022 As at 31-03-2021
Bank Guarantee cost 28,631.02 16,319.67
Bank charges 8.64 49.93
Interest on Term Loan 58,520.96 60,623.21
87,160.63 76,992.80
Less: Transfer to Capital Work-in-Progress 64,843.30 62,026.28
Total 22,317.33 14,966.52

Note-20 OTHER EXPENSES

(Rupees in ` 000)
Particulars As at 31-03- As at 31-03- As at 31- As at 31-03-
2022 2022 03-2021 2021
Hooking Up Operating Charges 6,268.90 1,218.06
Operation & Maintenance Charges 23,024.62 14,736.02
Advertisement Expenses 203.56 75.37
Business Promotion 167.79 -
CAG & Internal Audit Expenses - 243.06
Meeting Expenses 419.04 23.77
Office Expenses 777.06 618.93
Office Rent 999.00 900.00
Printing & Stationery 112.16 128.92
Statutory Audit Fees 70.80 70.80
Travelling Expenses 66.68
-
Professional Fees 3,788.00 1,419.55
Management Service Cost 40,383.38 45,448.96
Other Expenses 35,094.42 37,118.43
Total A 1,11,375.41 1,02,001.88
Less: Management Service for employee (35,362.60) (45,448.96)
Cost Transferred to Capital Work-In-Progress
Less: Transfer To IEDC (Incidental
Expenditure During Construction)
Rent 4,120.40 4,183.56
Professional Fees 1,751.58 1,419.55
Other Project Expenses 9,235.00 (15,106.99) 29,157.43 (34,760.54)
Total (A+B+C) 60,905.81 21,792.38

Note-21 Earnings Per Share

(Rupees in ` 000)
Particulars As at 31-03-2022 As at 31-03-2021

Profit (Loss) attributable to equity share holders 2,006.26 (8,845.87)

Nominal value of equity share (in `) 10.00 10.00

Weighted Average No. of Shares outstanding at the end of the 5,97,61,319.00 3,88,12,967.00
year
Basic Earnings per share-Rupees 0.03 (0.23)
Diluted Earnings per share-Rupees 0.03 (0.23)

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 Annual Report 2021-22

Note-22 Deferred Tax Assets (Net)

(Rupees in ` 000)
Particulars As at 31-03-2022 As at 31-03-2021
Closing WDV as per IT Act 6,75,231.23 3,64,578.61
Closing WDV as per Co Act 8,26,717.04 3,87,776.67
1,51,485.81 23,198.06
DTL 39,386.31 5,799.52
Computation Of Taxable Income
Profit & Loss a Per Books 3,331.56 (10,431.01)
Add: Depreciation as per Companies Act 2013 21,025.38 10,378.64
Less: Depreciation As per Income Tax 1,08,605.27 11,801.96
Total (84,248.33) (11,854.33)
Add: Disallowed of preliminary Expenditure U/s 35D (2,022.70)

Profit & Loss as Per Income tax Act (84,248.33) (13,877.04)

Diff: Resulting in Asset (84,248.33) (13,877.04)
DTA (21,904.57) (3,469.26)

Preliminary Expenditure
Preliminary Expenditure for the next One year (2,022.70)
Diff: Resulting in Asset - (2,022.70)
DTA - (505.68)

Carried forward Losses till AY 21-22 as per ITR (1,19,611.49) (67,068.46)

Diff: Resulting in Asset (1,19,611.49) (67,068.46)
DTA (31,098.99) (16,767.12)

DTA (53,003.55) (20,742.05)

Net DTA (13,617.24) (14,942.54)

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 Annual Report 2021-22

NOTE 23:- NOTES ON ACCOUNTS

1. The Company “Goa Natural Gas Private Limited (GNGPL)” was incorporated on January 13,
2017 to develop the City Gas distribution network in the district of North Goa and Ponda.

2. The company is a joint venture of GAIL Gas Limited (a wholly owned subsidiary of GAIL (India)
Limited) and Bharat Petroleum Corporation Limited with equal share holding pattern. The
total authorized share capital of the company is Rs.60 Crore against which equity shares
capital worth Rs.60 Crore have been issued to promoter companies in the ratio of 1:1.

3. The company authorization for development of City Gas Distribution Network in the
Geographical Area of Goa State was granted by Petroleum and Natural Gas Regulatory Board
(PNGRB) to the then Consortium of GAIL Gas Limited and Bharat Petroleum Corporation
Limited in June, 2016. As per the regulation of PNGRB, Performance Bank Guarantee (PBG) of
Rs.1504 Crore issued by IndusInd Bank, New Delhi valid upto 07.06.2024 has been submitted
to PNGRB. The PBG has been issued by GAIL Gas Limited based on corporate guarantee of
M/s. BPCL and M/s. GAIL (India) Ltd. of equal amount of Rs. 752 Crores each. M/s GGL recover
the amount of PBG charges paid to the IndusInd bank from the GNGPL as the PBG is provided
on behalf of the GNGPL.

4. The employees on deputation from the promoter’s company working in the various
disciplines have been identified as working for (a) project activities and/or (b) operation
activities. Therefore, the employee cost pertaining to those employees engaged directly in
project activities, are directly charged to project activities. Whereas, employee cost
pertaining to those employees which have been engaged in both of the aforesaid activities,
are charged to project activities and operation activities on best judgement basis and
accounted for accordingly. For the FY 2021-22, total amount of Rs 3.54 Crores has been
allocated to Capital Work in progress.

5. During the FY 2021-22, both the promoter’s company BPCL and GGL has raised an invoice on
the GNGPL related to manpower deputed by the respective promoters company to the Joint
Venture. During the FY 2021-22, BPCL has raised total invoice of Rs 0.95 crores on account of
manpower expenses for recovering the various component like salary, other allowances,
communication allowance, transport allowance, leave encashment, gratuity, LFA etc.
Additionally, GNGPL has also made the provision of PRP for BPCL employees deputed at
GNGPL for Rs 0.17 crores. Similarly, GGL has raised total invoice of Rs 2.86 crores on GNGPL
on account of manpower expenses for recovering various components like salary, other
allowances, communication allowance, transport allowance, leave encashment, gratuity, LFA,
PRP etc. paid by the promoter company to its staff deputed at JV .

6. Expenses related to rent of warehouse, vehicle hire charges, contract manpower expense and
all other non-administrative expenses have been allocated to Incidental Expenditure during
Construction on the best judgement basis. The Incidental Expenditure during Construction
amounting to Rs. 4.36 Crores (Previous year Rs. 3.48 Crores) has been allocated to Capital
Work in Progress during the FY 2021-22.

7. Capital Work in Progress (CWIP) include asset under construction which are under different
stage of completion, capitalization will be done as soon as the assets are ready for use. CWIP
includes Rs. 11.94 (Previous Year Rs. 11.36 Crores) consisting of machineries/system and

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 Annual Report 2021-22

various types & sizes of pipes lying in own and hired warehouses of Goa Natural Gas Private
Limited (GNGPL) and not issued to the Contractors.

8. The Board of Directors of the Company in its 22nd Board Meeting held on 28th March 2022
have approved to write-off of two Fixed Assets items (Godrej 4 Door Book Case and
Aluminium partition sheet/framing gallery) and three capital inventory items (125 mm MDPE
pipes) having an original value of Rs 2,36,142.60 and with Written Down Value of Rs
1,94,111.00. The same has been written off in the FY 2021-22 as per the Board Approval.

9. Share Capital

a) The total authorized capital of the Company is Rs. 60.00 Crores against which Rs.60 Crores
has been issued as on balance sheet date. (Previous year Rs. 52.76 Crores)

b) The Company is a Joint Venture of GAIL Gas Limited (GGL) and Bharat Petroleum
Corporation Limited (BPCL) and the shares are issued to the promoter companies in equal
ratio as per the approval of the Board.

10. In terms of disclosure requirement as per Ind. – AS 23 on “Borrowing Costs”, total finance
cost on account of interest amounting to Rs. 5.85 Crores was incurred, out of which an
amount of Rs. 3.63 Crores was capitalised including amount allocated towards capital Work
in Progress during the period.

11. Capital Commitment Disclosure

The estimated amount of contracts over Rupees Five Lakhs amounting to Rs. 60.45 Crores
(Previous year Rs 58.91 Crores) is remaining to be executed on Capital Accounts and not
provided for.

12. The provisional liability of Rs. 4.47 Crores (Previous year Rs. 3.55 Crores) has been made in
the books of accounts as on 31st March, 2022 which will be settled as per actual bills.

13. Employee Benefits

All the employees posted at M/s Goa Natural Gas Private Limited (GNGPL) are on the rolls of
GAIL (India) Limited (100% Holding Company of M/s. GAIL Gas Limited) and Bharat Petroleum
Corporation Limited. The Employees’ benefits including salary are being prepared and
disbursed and recovered by the promoter companies. The disclosure requirement in terms of
Ind. AS 19 has not been considered as the same have been complied by the M/s. GAIL and
BPCL and necessary disclosure as per requirement is being made by them.

14. Disclosure under the Micro, Small and Medium Enterprises Development Act, 2008 (“MSMED
Act, 2006”)

Sl. No. Particulars 2021-22 2020-21

1 The principal amount and the interest due thereon Nil Nil
remaining unpaid to any supplier as at the end of each
accounting year
2 The amount of interest paid by the buyer in terms of Nil Nil
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 Annual Report 2021-22

section 16, along with the amounts of the payment

made to the supplier beyond the appointed day during
each accounting year.
3 The amount of interest due and payable for the period Nil Nil
of delay in making payment (which have been paid but
beyond the appointed day during the year) but
without adding the interest specified under this Act.
4 The amount of interest accrued and remaining unpaid Nil Nil
at the end of each accounting year; and
5 The amount of further interest remaining due and Nil Nil
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.

The above information regarding Micro, Small and Medium enterprises have been
determined to the extent such parties have been identified on the basis of information
available with the company.

15. Additional information pursuant to the provisions of paragraph 5(viii) of Part II of Schedule
III to the Companies Act, 2013 is not applicable.

16. Related Party Disclosure:

A. The entire Equity Share Capital of the Company is held by GAIL Gas Limited and Bharat
Petroleum Corporation Limited, being the promoter companies.

B. Related Parties:
Relation and name of the related parties are:-
1. Promoter Venture: GAIL Gas Limited (A wholly owned Subsidiary of GAIL (India)
Limited) and Bharat Petroleum Corporation Limited.
2. Associate Company: GAIL (India) Limited
3. Key Management Personnel:
i. Mr. Mohd Zafar Khan (CEO)
ii. Mr. Nilay Umeshbhai Vakil (CFO)
iii. Ms. Ravina Jain (CS)
a) Related Party Transactions with related parties:
(Rs. in Thousand)
Sl. No. Particulars Promoter Associate Key
Venture Company Management
Personnel
A GAIL Gas Limited Rs. 58,815 - -
(Previous Year
Rs. 40,509)
1 Reimbursement of Employee Rs. 28,645 - -
Remuneration (Previous Year
Rs. 24,288)

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 Annual Report 2021-22

2 Reimbursement of PBG Rs. 30,170

Commission, Training expenses, (Previous Year
Certification charges, etc. Rs. 16,221)

B Bharat Petroleum Corporation Rs. 26,842 - -

Limited (Previous Year
Rs. 13,536)
1 Reimbursement of Employee Rs. 9,581 - -
Remuneration (Previous Year
Rs. 8,377)
2 Supply of CNG at various RO’s of Rs. 17,261
BPCL (Previous Year
Rs. 5,159)

C GAIL (India) Limited Rs. 2,43,936

(Previous Year
Rs. 57,705)
1 Expenses on account of Hooking- Rs. 2,009
up of Shipper’s Facilities & Other (Previous Year
Expenses Rs. 33,590)
2 Natural Gas Purchases & Rs. 2,41,927
Transmission (Previous Year
Rs. 24,115)

D Management Contracts - Rs. 14,665

including deputation of (Previous Year
employees Rs. 13,418)
Reimbursement of Remuneration - Rs.14,665
to Key Management Personnel (Previous Year
Rs. 13,418)
E Closing Balance
GAIL Gas Limited Rs. 50,585
(Previous Year
Rs. 4,460)
Bharat Petroleum Corporation Rs. 9,419
Limited (Previous Year
Rs. 1,373)
Bharat Petroleum Corporation Rs. 1707
Limited (Trade Receivable) (Previous Year
Rs. 351)
GAIL (India) Limited Rs. 10,354
(Previous Year
Rs. 7,278)

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 Annual Report 2021-22

17. Earnings per Share:

Particulars Unit 2021-22 2020-21

Profit after Tax (Rs. in Thousand) 2006.26 (8,845.87)
Weighted Average No. of Equity Nos. 5,97,61,319 3,88,12,967
Shares
Nominal Value per Share Rs. 10.00 10.00
Earnings per Share Basic Rs. 0.03 (0.23)
Earnings per Share Diluted Rs. 0.03 (0.23)

18. “Income Taxes” The Company has created net deferred tax assets in respect of temporary
difference and unused carry forward of losses as on 31st March 2022 amounting to Rs. 1.36
Crores (Previous Year Rs 1.49 Crores). The item- wise details of deferred tax liability/asset
are as under:
(Rs. in Thousand)
Particulars 31.03.2022 31.03.2021
Opening Balance Deferred Tax Assets
14,942.54 13,357.40
/(Liabilities)
Deferred Tax assets/(Liabilities) arising on
(15,151.49) (13,694.79)
account of Fixed Assets
Deferred Tax assets/(Liabilities) arising on
account of unused carry forward of losses / 13,826.20 15,279.92
preliminary expenses

Closing Balance C/F 13,617.24 14,942.54

19. The details of amount paid/payable to auditor during the year:

(Rs. in Thousand)
Particulars 2021-22 2020-21
Statutory Audit Fees 70.8 70.8
Other services Nil Nil
Reimbursement of expenses Nil Nil
TOTAL 70.8 70.8

20. Contingent Liabilities

Claim against the company not acknowledge as Debt: NIL

Company has contingent Liabilities on account of Bank Guarantee/LC of Rs. 7.09 Crores from
IndusInd Bank, New Delhi as at 31st March 2022 (Previous year Rs. 7.99 Crores)

21. As per the Petroleum and Natural Gas Regulatory Board’s Authorisation, GNGPL is required
to achieve Minimum Work Programme (MWP) target of 650 Inch KM pipe laying and 9588
domestic Connection till the MWP period of June 2021 which was further extended due to
COVID-19 pandemic till 6th Nov 2021. However, GNGPL has achieved its MWP target of 650
Inch KM and 9588 domestic connection on 3rd Nov 2021 and had informed the same to
PNGRB vide its letter GNGPL/PNGRB/MWP/PBG/2021 dated 03.11.2021. Further, PNGRB
asked for some additional details in the specified format vide its
Letter PNGRB/Monitoring/1/CGD-6.07/(9)/2016 (P-754) dated 22.12.2021 in reply of which
GNGPL had provided the data vide its letter GNGPL/PNGRB/MWP/PBG/2022/20 on
18.01.2022. Thereafter, PNGRB had sought for some clarifications vide its letter
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 Annual Report 2021-22

PNGRB/Monitoring/1/CGD-6.07/(9)/2016 (P-754) dated 18.02.2022 and in reply to which

GNGPL is in process of collecting the details in the specified formats for providing its reply
to PNGRB.

22. Previous Year’s figures have been regrouped/ reclassified wherever necessary to
correspond with the current year’s classification/disclosure.

23. Additional information of Capex:

Particulars Amount
(Rs. in Thousand)
Addition in Property, Plant & Equipment 4,59,848.22
Change in CWIP (1,55,967.2)
Addition in Intangible Assets 117.53
Change in Intangible Assets under Development -
Addition in Investment Property -
Change in Capital Advances, if any -
TOTAL CAPEX 3,03,998.55

Capital expenditure for this purpose is computed considering the additions in Property, Plant
& Equipment; Intangible Assets, Investment property and movements during the year in
Construction Work in Progress (CWIP); Intangible Assets under Development (IAUD) & Capital
Advances.”

24. Erstwhile Ms. Bishakha Chakrobarty was resigned from the position of Company secretary of
the Company on 30th Sept 2021 and Ms. Ravina Jain was appointed as the Company Secretary
of the Company on 28.03.2022.

25. Prior Period Adjustment:

The company has carried out below mentioned prior period adjustment in FY 2021-22:

a) The Company has expensed out payment made of Rs 13,60,620.00 to PNGRB as interest
free refundable deposits in the FY 2018-19 & FY 2019-20. Based on the confirmation from
PNGRB in the FY 2021-22, the company has now recorded the same as deposit in the FY
2021-22.

26. Deposits from Customers:

The Company has classified the security deposits received from its Natural Gas Customers
as current liabilities and the figures are re-classified wherever necessary as the company has
immediate liability for the payment of the deposits to its customers on
termination/suspension of the connection.

27. Cash Profit/(Loss) Calculation:

Particulars FY 2021-22 Rs (‘000) FY 2020-21 Rs (‘000)

Net Profit/Loss After Taxes 2006.26 (8845.87)

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 Annual Report 2021-22

Adjustment: (Non-Cash Transaction)

Depreciation 21058.38 10397.80
Amortization of Assets
Impairment Loss
Deferred Tax Income 1325.30 (1585.14)
Other Non-cash adjustment
Cash Profit/(Loss) 24389.59 (33.21)

28. Immovable property(ies) not held in its own name

Description Gross Held in name Whether Period held Reasons for

of Property Carrying Of promoter, indicative not being in
Value director or range, where held of
their relative appropriate company
or employee
Land at 47.28 Lakhs Communinade NA NA Sale Deed
Madkai of Madkai Execution
(GNGPL under
CGS) process

29. Ground Rent & Leases

The company has made advance payment of ground rent to various government
bodies/authorities for right of way for laying pipeline infrastructure. Such payments for next
upcoming 12 months are considered under current assets and beyond 12 months are
considered under non-current assets in the balance sheet.

The company has also taken land for installation of DRS and running its office. The AS-116 is
not applicable on DRS site and office rental property of the company, as the leases are in
nature of short-term leases with a right to terminate with 1 one month notice.

During the FY 2021-22, the company has received the possession of one of the plot situated
in the Kundaim IDC on 30 years long term lease. As the company has received the possession
of the same, the company has considered the reporting of the same plot as per Ind. AS 116
by creating the ROU Asset of Rs 0.09 crores and ROU liabilities of Rs 0.02 from the FY 2021-
22. For the said plot, company has made the upfront payment of Rs 0.07 crores with an
annual lease payment of Rs 17,275 per annum.

30. Comparatives

Comparatives financial information (i.e. the amounts and other disclosures for the
preceding year presented above), is included as an integral part of the current year’s
financial statements, and is to be read in relation to the amounts and other disclosures
relating to the current year. Figures of the previous year have been regrouped / reclassified
wherever necessary to correspond to figures of the current year.

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 Annual Report 2021-22

31. Natural gas quantity sold by the company:

Sales Volume details (Fig in MMSCM)

31.03.2022 31.03.2021
Piped Natural Gas 7.03 0.14
Compressed Natural Gas 1.02 0.18
Total 8.05 0.32
Average Sales / per day (MMSCMD) 0.02 0.0009

FOR & ON BEHALF OF THE BOARD OF DIRECTOR As per our report of even date attached

FOR SUHAS MANNUR & CO

Chartered Accountant
Firm Registration No 122428W

Nilay Vakil Mohd Zafar Khan Ravina Jain CA. SUHAS MANNUR
CFO CEO CS PARTNER
PAN-AJPPV6458H PAN-ADWPK1619E PAN-CZAPK3255Q Membership No. 111594
UDIN: 22111594AHXNOT9812

Sukhmal Kumar Jain Vivek Vishwas Wathodkar

(Chairman & Director) Director
DIN-09206648 DIN-08486382

Place: Goa
Date: 27.04.2022

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 Annual Report 2021-22

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF GOA NATURAL GAS PRIVATE LIMITED

Report on the Financial Statements

Opinion

We have audited the accompanying financial statements of GOA NATURAL GAS PRIVATE LIMITED
(“the company”), which comprise the Balance Sheet as at 31st March 2022, the Statement of
Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us,
the aforesaid financial statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the accounting principles generally
accepted in India of the state of affairs of the Company as at 31 st March 2022, its Profit and loss
account and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under
section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are
further described in the Auditor’s Responsibilities for the Audit of the 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 together with the ethical requirements that are
relevant to our audit of the financial statements under the provisions of the Companies Act, 2013
and the Rules thereunder, and we have fulfilled our other ethicalresponsibilities in accordance
with these requirements and the Code of Ethics.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.

Information other than the Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors and Management is responsible for the preparation of theother
information. The other information comprises the information obtained at the date of this
auditor’s report, but does not include the financial statements and our auditor’s report thereon.

Our opinion on the 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 financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistentwith
the 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.

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 Annual Report 2021-22

Responsibility of Management and those charged with governance for theFinancial Statements

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the
Companies Act, 2013 (“the Act”) with respect to the preparation and presentation of thesefinancial
statements that give a true and fair view of the financial position, financialperformance and cash
flows of the Company in accordance with the accounting principles generally accepted in India,
including the Accounting Standards specified under Section 133 of the Act. This responsibility also
includes the maintenance of adequate accounting records in accordance with the provision of the
Act for safeguarding of the assets of the Company andfor preventing and detecting the 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 control,that were operating effectively for ensuring
the accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

In preparing the 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.

Those Board of Directors are also responsible for overseeing the company’s financial reporting
process.

Auditor’s Responsibility

Our objectives are to obtain reasonable assurance about whether the financial statements asa
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 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 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 control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the
Companies Act, 2013, 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.
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 Annual Report 2021-22

• 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 uncertaintyexists
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 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 financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.

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.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued bythe
Central Government of India in terms of sub-section (11) of section 143 of the Act, and on the basis
of such checks of books and records of company and on the basis of informationand explanation
given, we give in “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the
said Order
2. As required by the Comptroller and Auditor General of India vide directions issued under
Section 143(5) of the Act, on the basis of information, explanations, and written representations
received from the management, we give our report in “Annexure B” on the matters specified in
the aforementioned directions issued by the Comptroller and Auditor General of India
3. As required by section 143(3) of the Act, 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, and Cash Flow Statement dealt withby
this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014.
e) On the basis of written representations received from the directors, taken on record by the
Board of Directors, none of the directors are disqualified as on 31/03/2022, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of
the company and the operating effectiveness of such controls, refer to our separate report

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 Annual Report 2021-22

in‘Annexure-C’ and
g) With respect to other matters to be included in the Auditor’s Report in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best
ofour information and according to the explanations given to us:
i. The Company has no pending litigations which would impact on its financial position.

ii. The Company did not have any long-term contracts including derivatives contracts for which
there were any material foreseeable losses.
iii. There were no amounts which required to be transferred by the Company to the Investor
Education and Protection Fund.

For M/s Suhas Mannur & Co

Chartered Accountants
FRN-122428W

Partner
CA Suhas Mannur
M No 111594
Panaji-Goa
27/04/2022
UDIN: 22111594AHXNOT9812

48
 Annual Report 2021-22

ANNEXURE A TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE

Referred to in paragraph 1 under the heading “Report on Other Legal and Regulatory
Requirements” of our report of even date
1. (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of property, plant and equipment (‘PPE’).
(b) The PPE have been physically verified by the management during the year except related
to underground natural gas distribution system which as per management cannot be physically
verified, as informed to us the material discrepancies were suitably dealt with in the financial
statements. In our opinion, the frequency of verification of the PPE is reasonable having regardto
the size of the Company and the nature of its assets. For the underground natural gas
distribution system, the management has adequate controls in place to safeguard the physical
existence of the said distribution system
(c) The title deeds of all the immovable properties (which are included under the head
‘Property, plant and equipment’) are held in the name of the Company except for the following
properties:

Nature of Total Whether Gross block Net block Remarks

property numberof leasehold/ 31st March, 31st March,
cases freehold 2022 2022
Land at 1 Freehold 47.28 Lakhs 47.28 Lakhs Transfer of title
Madkaim pending.
(GNGPL City Execution of
Gas Station) Sale Deed in
progress.

(ii) The inventories of the Company comprise of natural gas and stores & spares parts. As
explained to us, having regard to the nature of the inventory of natural gas, the procedures
followed by the management for estimation of natural gas quantities which is based on volume
of pipelines and the volume of cascades containing the natural gas considering the standard
temperature and pressures, are reasonable and no material discrepancies were noticed on
such computation. Further, in our opinion, the management has conducted physical
verification of inventory of stores and spare parts at reasonable intervals during the year and
no material discrepancies between physical inventory and book records were noticed on
physical verification.
(iii) The Company has not granted any loan, secured or unsecured to companies, firms,
Limited Liability Partnerships (LLPs) or other parties covered in the register maintained under
Section 189 of the Act. Accordingly, the provisions of clauses 3(iii)(a), 3(iii)(b) and 3(iii)(c) of
the Order are not applicable.
(iv) In our opinion, the Company has complied with the provisions of Section 186 in respect
of investments. Further, in our opinion, the Company has not entered into any transaction
covered under Section 185 and Section 186 of the Act in respect of loans, guarantees and
security.
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 Annual Report 2021-22

(v) In our opinion, the Company has not accepted any deposits within the meaning of Sections
73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended).
Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) As per information & explanation given by the management, maintenance of cost records
as required under sub-section (1) of section 148 of the Companies Act, 2013 is not applicable
to the Company.
(vii) According to the information and explanations give to us and based on our examination
of the records, the Company is regular in depositing undisputed statutory dues including
provident fund, employees’ state insurance, income-tax, sales tax, service tax, duty of
customs, duty of excise, value added tax, cess and other material statutory dues, as
applicable, to the appropriate authorities. Further, no undisputed amounts payable in respect
thereof were outstanding at the year-end for a period of more than six months from the date
they become payable.
(viii) viii) The Company has not defaulted in repayment of loans or other borrowings or in the
payment of interest thereon to any lender during the year. Accordingly, the provisions of
clause 3(viii) of the Order are not applicable.
(ix) The Company did not raise moneys by way of initial public offer or further public offer
(including debt instruments). Accordingly, the provisions of clause 3(ix) of the Order are not
applicable.
(x) According to the information and explanations given to us, no fraud by the Company oron
the Company by its officers or employees has been noticed or reported during the period
covered by our audit.
(xi) In our opinion, being a private limited company the provisions of Section 197 and
accordingly clause (xi) of the order are not applicable to the company.
(xii) In our opinion, the Company is not a Nidhi Company. Accordingly, provisions of clause
3(xii) of the Order are not applicable.
(xiii) In our opinion all transactions with the related parties are in compliance with Sections
177 and 188 of Act, where applicable, and the requisite details have been disclosed in the
financial statements etc., as required by the applicable accounting standards.
(xiv) The company does not have an internal audit system. However as per requirement,
company is not required to have an internal audit system in place as on the date of this audit
report.
(xv) According to the information and explanations give to us and based on our examination
of the records, the Company has not made any preferential allotment or private placement of
shares or fully or partly convertible debentures during the year.
(xvi) According to the information and explanations give to us and based on our examination
of the records, the Company has not entered into any non-cash transactions with the directors
or persons connected with them covered under Section 192 of the Act.

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 Annual Report 2021-22

(xvii) The company had incurred a cash losses of Rs 33,210 during the immediate preceding
financial year 2020-21 and has a cash profit of Rs 2,43,89,590 in the financial year under audit
2021-22.
(xviii) According to the information and explanations give to us there has been no instance of
resignation of the statutory auditors that has occurred during the year.
(xix) According to the information and explanations give to us and based on our examination
of the records, no material uncertainty exists as on the date of the audit report that company
is 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.
(xx) According to the information and explanations give to us, the provisions to transfer
unspent amount to a Fund specified in Schedule VII to the Companies Act within a period of
six months of the expiry of the financial year in compliance with second proviso to sub-section
(5) of section 135 of the said Act is not applicable to the Company.

For M/s Suhas Mannur & Co

Chartered Accountants
FRN-122428W

Partner
CA Suhas Mannur
M No 111594
Panaji-Goa
27/04/2022
UDIN: 22111594AHXNOT9812

51
 Annual Report 2021-22

ANNEXURE-B

Independent Auditor’s Report as required by the Comptroller and Auditor General of India vide
directions issued under Section 143(5) of the Companies Act, 2013 (the ‘Act’)

Based on the audit procedures performed and taking into consideration the information,
explanations, examinations of records 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:
Sr. No Directions Response Impact on
financial
statement
1 Whether the Company has The Company has system in Not applicable
system in place to process all the place to process all the
accounting transactions through accounting transactions
the IT system? If yes, the through the IT system ie Tally
implications of processing of Accounting software. Further,
accounting transaction outside as per the information and
IT system on the integrity of the explanations given to us by
accounts alongwith the financial the management, there are
implications, if any, may be no accounting transactions
stated. that are processed outside
the ITsystem by the Company
which impact the integrity of
the accounts.
2 Whether there is any As per information and Not applicable
restructuring of an existing loan explanations given to us and
or cases of waiver/ write off of based on the examination of
debts/loans/interest etc. made records, there are no
by a lender to the Company due instances of
to the Company’s inability to restructuring/waiver/ write-
repay the loan? If yes, the off of debt/ loans/interest
financial impact may be stated. etc. of loan availed by the
Company during the year
Whether such cases areproperly under audit.
accounted for.

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 Annual Report 2021-22

3 Whether funds (grants/subsidy) As per information and Not Applicable

received/ receivable for specific explanations given to us and
schemes from Central/ State based on the examination of
Agencies were properly records, no funds are
accounted for/ utlilized as per received during the year
its terms and conditions? List ended 31st March, 2022 for
the case ofdeviation. specific schemes from the
Central/State Agencies.

For M/s Suhas Mannur & Co

Chartered Accountants
FRN-122428W

Partner
CA Suhas Mannur
Panaji-Goa
27/04/2022
UDIN: 22111594AHXNOT9812

53
 Annual Report 2021-22

ANNEXURE C TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE

Independent Auditor’s Report on the internal financial controls with reference to the
financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act,
2013 (the ‘Act’) as referred to in paragraph 3(f) to “report on other legal and regulatory
requirements”.

1. In conjunction with our audit of the financial statements of M/s Goa Natural Gas Private
Limited (the ‘Company’) as at and for the year ended 31st March 2022, we have audited the
internal financial controls with reference to financial statements of the Company as at that
date.
RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR
INTERNAL FINANCIAL CONTROLS
2. 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 (‘Guidance Note’) 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 the Company’s business,
including adherence to the 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 FOR THE AUDIT OF THE INTERNAL FINANCIAL CONTROLS WITH
REFERENCE TO FINANCIAL STATEMENTS
3. Our responsibility is to express an opinion on the Company’s internal financial controls with
reference to financial statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the ICAI prescribed under Section 143(10) of the Act,
to the extent applicable to an audit of internal financial controls with reference to financial
statements, and the Guidance Note issued by the ICAI. 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 financial statements were established and maintained and if such controls
operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls with reference to financial statements and their operating
effectiveness. Our audit of internal financial controls with reference to financial statements
includes obtaining an understanding of such internal financial controls, 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 judgement, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error.
5. 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
financial statements.

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 Annual Report 2021-22

MEANING OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS

6. A company’s internal financial controls with reference to 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 controls with reference to financial
statements include 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 authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorised
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 FINANCIAL
STATEMENTS
7. Because of the inherent limitations of internal financial controls with reference to 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, projectionsof
any evaluation of the internal financial controls with reference to financial statements to future
periods are subject to the risk that the internal financial controls with reference to financial
statements may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
OPINION
8. In our opinion, the Company has, in all material respects, adequate internal financial controls
with reference to financial statements and such controls were operating effectively as at 31st
March 2022, 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
issued by ICAI.

For M/s Suhas Mannur & Co

Chartered Accountants
FRN-122428W

Partner
CA Suhas Mannur
Panaji-Goa
27/04/2022
UDIN: 22111594AHXNOT98

55
Annual Report 2021-22

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