1. Material Accounting Policies

1.1 Property, Plant and Equipment (PPE)

a) In the case of commissioned assets where final payment
to the Contractors is pending, capitalization is made on
provisional basis, including provisional liability subject to
necessary adjustment in cost and depreciation in the year
of settlement.

b) Stores & Spares which meet the definition of PPE i.e. when
the company intended to use for a period exceeding 12
months.

c) Expenditure on major inspection and major overhauls of
PPE is capitalized, when it meets the recognition criteria of
PPE.

d) Technical know-how / license fee relating to plants /
facilities and specific software that are integral part of the
related hardware are capitalized as part of the underlying
asset.

e) Projects having Corporate Environment Responsibility (CER)
Obligation in respect of environmental expenses which
are directly attributable to projects are recognized as part
of the underlying asset on approval of the project by the
Government Agency.

f) Enabling assets such as roads, bridges, electric transmission
lines etc. which meets the recognition criteria of PPE are
capitalized as part of the underlying asset if the Company
can't restrict others from using the enabling assets. If the
Company can restrict others from using the enabling assets
then the enabling assets are capitalized separately.

g) On transition to Ind AS, the Company has elected to
continue with the carrying value of all of its PPE recognized
as at 01.04.2015 measured as per previous GAAP and use
that carrying value as deemed cost of the PPE.

1.2 Intangible Assets

(a) Right of Use (ROU) acquired for laying of pipelines,
Software, Licenses etc. which meets the recognition criteria
of an intangible asset are capitalized as Intangible Assets.

(b) Expenditure incurred in research phase is charged to
Statement of Profit and Loss and that in development
phase, unless it is of capital nature, is also charged to
Statement of Profit and Loss.

(c) On transition to Ind AS, the Company has elected to
continue with the carrying value of all of its intangible
assets recognized as at 01.04.2015 measured as per
previous GAAP and use that carrying value as deemed cost
of the intangible assets.

1.3 Capital Work in Progress

a) Crop compensation is accounted for under Capital Work-in¬
Progress on the basis of actual payments/estimated liability,
as and when work commences where ROU acquired for
laying of pipelines.

b) The capital work in progress includes Construction Stores
including Material in Transit/ Equipment / Services, etc.
received at site for use in the projects.

c) All revenue expenses incurred during Construction
Period, which are exclusively attributable to acquisition /
construction of the asset, are capitalized.

d) Capital Stores are valued at weighted average cost.

Further, Specific provision is made for likely diminution in
value, wherever required.

1.4 Exploration and Development Costs

a) The Company follows Successful Efforts Method for

accounting of Oil & Gas exploration and production

activities carried out through incorporate or unincorporated
Joint Ventures in the nature of Production Sharing
Contracts (PSC) and Revenue Sharing Contracts (RSC) with
respective host governments and various body corporates
for exploration, development and production activities,
which includes exploration and evaluation costs as follows:

(i) Geological and Geophysical (G&G) costs including
seismic surveys, surface lease rentals etc. for
exploration and appraisal purposes are recognized as
revenue expenditure in the year in which these are
incurred.

(ii) Cost of exploratory/ appraisal wells are carried as
Capital Work in Progress - Intangible Assets under
development/ Capital work in progress. Such
exploratory wells in progress are capitalized in the
year in which the Producing Property is created. Such
costs are written off in the year when determined to
be dry / abandoned.

(iii) Cost of all "exploratory wells in progress" is debited
to Statement of Profits and Loss except of those
wells for which there are reasonable indications of
sufficient quantity of reserves and the enterprise is
making sufficient progress assessing the reserves and
the economic and operating viability of the project.

b) Capitalization of Producing Properties

Producing Properties are capitalized as "completed wells /
producing wells" when the wells in the area / field are ready
to commence commercial production on establishment of
proved developed oil and gas reserves.

Cost of Producing Properties includes cost of successful
exploratory wells, development wells, initial depreciation
of support equipments & facilities and estimated future
abandonment cost.

c) Depletion of Producing Properties

Producing Properties are depleted using the "Unit of
Production Method (UOP)". The depletion or unit of
production charged for all the capitalized cost is calculated
in the ratio of production during the year to the proved
developed reserves at the year end.

d) Production cost of Producing Properties
Company's share of production costs as indicated by
Operator consists of pre well head and post well head
expenses including depreciation and applicable operating
cost of support equipment and facilities.

e) Accounting for joint operations

In relation to its interests in joint operations entered through
Production Sharing Contracts (PSC) and Revenue Sharing
Contracts, the company recognizes its proportionate share
in assets, liabilities, revenue from the sale of the output,
expenses of the joint operation entity, in the standalone
financial statements.

1.5 Foreign Currency Transactions

a) Transactions in foreign currency are initially accounted at
the spot exchange rate prevailing on the transaction date.

b) Monetary items (such as Cash, Receivables, Loans, Payables,
etc.) denominated in foreign currencies, outstanding at
the reporting date, are translated at spot exchange rates
prevailing on that date.

c) Non-monetary items (such as Equity Investments, Property
plant and equipment, Intangible assets etc.), denominated
in foreign currencies are accounted at the exchange rate
prevailing on the date of transaction(s) other than those
measured at fair value.

d) Any gains or loss arising on account of exchange difference
either on settlement or on translation is accounted in the
foreign exchange fluctuation/ finance cost in the statement
of profit and loss.

e) Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date
when the fair value is determined. The gain or loss arising
on translation of non-monetary items is recognized in line
with the gain or loss of the item arising on determination
of fair value of such item, either in other comprehensive
income or the Statement of Profit and Loss as the case
maybe.

1.6 Borrowing Cost

Borrowing cost of the funds specifically borrowed for the
purpose of obtaining qualifying assets and eligible for
capitalization along with the cost of the assets, is capitalized
up to the date when the asset is ready for its intended use after
netting off any income earned on temporary investment of such
funds. Other borrowing costs are recognized as expense in the
year of incurrence.

1.7 Government Grants

Government Grants are not recognized until there is a
reasonable assurance that the Company will comply with
conditions attached to them and the grants will be received.
In case of depreciable assets, the cost of the assets is shown at
gross value and grant thereon is taken to deferred income which
is recognized as income in the Statement of Profit and Loss over
the useful life of the asset. Government Grants related to non¬
depreciable assets may also require the fulfillment of certain
obligations and would then be recognised in profit or loss over
the periods that bear the cost of meeting the obligations.

1.8 Inventories

a) Stock of Liquefied Natural Gas (LNG) and Natural Gas in
pipelines is valued at cost on First in First out (FIFO) basis or
net realizable value, whichever is lower.

b) Raw materials and finished goods are valued at weighted
average cost or net realizable value, whichever is lower.
Finished goods include excise duty and royalty wherever
applicable.

c) Stock in process is valued at weighted average cost or net
realisable value, whichever is lower. It is valued at weighted
average cost where the finished goods in which these are
to be incorporated are expected to be sold at or above the
weighted average cost.

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

e) Surplus / Obsolete Stores and Spares are valued at cost or
net realisable value, whichever is lower.

f) Surplus / Obsolete Capital Stores, other than held for use in
construction of a capital asset, are valued at lower of cost
or net realisable value.

g) Imported LNG in transit is valued at CIF value or net
realizable value whichever is lower.

h) Renewable Energy Certificates (RECs) are valued at cost
on First in First out (FIFO) basis or net realizable value,
whichever is lower.

1.9 Revenue recognition

The Company has applied the modified retrospective approach
on transition to Ind AS 115.

a) Revenue is recognized to depict the transfer of control
of promised goods or services to customers upon the

ii. Depreciation due to price adjustment in the original
cost of PPE is charged prospectively.

iii. In case of immovable assets constructed on leasehold
assets are depreciated over useful life as per schedule
II or lease period whichever is lower.

iv. The residual values, useful lives and methods of
depreciation of PPE are reviewed at each reporting
date and adjusted prospectively, if appropriate.
The depreciation/amortization for future periods is
revised if there are significant changes from previous
estimates.

v. Residual value of PPE is determined considering past
experience is between 0 to 5% of cost of PPE.

b) Intangible Assets

i. Right of use (ROU) acquired for laying of pipelines
having indefinite life (for which there is no foreseeable
limit to the period over which they are expected to
generate net cash flows given the fact that these
rights can be used even after the life of respective
pipelines) are not amortized, but are tested for
impairment annually.

ii. The cost of Intangible assets comprising software and
licences, etc. are amortised on Straight Line Method
(SLM) over a period of 5 years/actual useful life
whichever is lower from the date of capitalization.

iii. After impairment of assets, if any, depreciation is
provided on the revised carrying amount of the assets
over its remaining useful life.

c) Right of Use Assets (Leasehold assets)

Right of Use Assets are depreciated on Straight Line
Method over the lease term. If the ownership of the
leasehold assets transfers to the Company at the end of
the lease term then it is depreciated over its useful life of
the asset. Perpetual Right of Use Assets related to land are
not depreciated but tested for impairment loss, if any.

d) Capital assets facilities installed at the consumers'
premises

Capital assets facilities installed at the consumers' premises
on the land whose ownership is not with the company,
has been depreciated on SLM basis in accordance with the
useful life as specified in Schedule II of the Companies Act,
2013.

1.11 Employees Benefits

(a) All short-term employee benefits are accounted in the
accounting period in which the services have been incurred.

(b) The Company's contribution to the Provident Fund is
remitted to a separate trust established for this purpose
based on a fixed percentage of the eligible employee's

salary and debited to Statement of Profit and Loss /
CWIP. Further, the company makes provision as per
actuarial valuation towards any shortfall in fund assets to
meet statutory rate of interest in the future period, to be
compensated by the company to the Provident Fund Trust.

(c) Employee Benefits under Defined Benefit Plans in respect
of Post-Retirement Medical Scheme (PRMS), Gratuity,
Terminal Benefits and Relief measure for Dependent Family
members of deceased employees are provided using the
Projected Unit Credit method of actuarial valuation made
at the end of the year. Gratuity and PRMS are administered
through respective trusts.

(d) Employee Benefits under Other Long-Term Employee
Benefits, in respect of leave encashment, Financial
Assistance Scheme and long service awards are provided
using the Projected Unit Credit method of actuarial
valuation made at the end of the year.

(e) Re-measurement including actuarial gains and losses are
recognized in the balance sheet with a corresponding
debit or credit to retained earnings through Statement
of Profit and Loss or Other Comprehensive Income in the
year of occurrence, as the case may be. Re-measurements
are not reclassified to the Statement of Profit and Loss in
subsequent periods.

(f) The Company also operates a defined contribution scheme
for Pension benefits for its employees and the contribution
is remitted to a separate Trust/ National Pension System
(NPS).

1.12 Impairment of non-financial assets

The Carrying amount of cash generating unit are reviewed
at each reporting date. In case there is any indication of
impairment based on Internal / External factors, impairment loss
is recognized wherever the carrying amount of asset exceeds its
recoverable amount.