INSTITUTE OF MANAGEMENT, NIRMA

UNIVERSITY

MBA-FT (2020-2022) FINANCIAL ACCOUNTING

AND REPORTING
ANNUAL REPORT ANALYSIS OF GAIL (INDIA)
LIMITED (2018-2019)
In partial fulfillment of the requirements of the FAR
course
SUBMITTED TO:
Prof. Tejas MODI
SUBMITTED BY:
Riya Goyal (201141)(SECTION-A)
 ACKNOWLEDGEMENT
I would begin by expressing my deepest gratitude and appreciation to
Institute of Management, Nirma University for providing an
opportunity of studying the subject of Advanced Course in financial
accounting and reporting as a part of my course. This subject has
enhanced my purview and understanding of accounting in
organizations and various other dynamics related to it. I consider
myself very fortunate for the same.
I am also very grateful to Prof. Tejas Modi for being the facilitator of
this course and for providing me with a platform to understand real-life
cases of big industries and known businesses which has helped me to
understand the aspects of financial accounting and reporting. I would
also like to thank them for their extensive guidance and support
throughout the making of this report. Their valuable insights based on
their rich experience have helped me to analyze the companies in a
successful manner.
ANALYSIS OF FINANCIAL REPORT OF GAIL(INDIA) LIMITED
2018-2019
1. What is the company’s business? Explain in about 50-60
words.

ANS.
GAIL stands for Gas Authority of India limited. It is a public sector
undertaking unit run by the government of India. The company aims at
energizing the Indian gas value chain and runs for the purpose of the of
distributing and marketing natural gas, gas sourcing & upstream,
petrochemicals and LPG etc.

2. What industry does the company belong to and what is the

company’s position in the industry?

ANS.
Industry Company Belongs To Energy
Company’s Position In industry Ranked as No. 86
3. What are its main products and services? Name some of the
company’s brands, if any.

ANS.
Product And Services
1. Natural gas.
2. Petrochemical.
3. Liquid hydrocarbons.
4. Liquefied petroleum
5. Gas transmission.
6. City gas distribution.
7. E&P
8. Electricity generation

Company’s brands
1. Aavantika Gas Limited.
2. Bhagyanagar Gas Limited.
3. Central U.P. Gas Limited.
4. GAIL China Gas Global Energy Holdings Limited.
5. Green Gas Limited.
6. Indraprastha Gas Limited.
7. Konkan LNG Pvt. Limited.
8. Mahanagar Gas Limited.
9. Maharashtra Natural Gas Limited.
10.ONGC Petro-additions Limited.
11.Petronet LNG Limited.
12.Ratnagiri Gas and Power Pvt. Limited.
13.Talcher Fertilizers Limited.
14.TAPI Pipeline Company Limited.
15.Tripura Natural Gas Company Limited.
16.Vadodara Gas Limited.
17.Bengal Gas Company Limited.
18.Ramagundam Fertilizers and Chemicals Limited.
19.Indradhanush Gas Grid Limited.
4. Who are the company’s Auditors and Company Secretary?
ANS.
Company’s Auditor
 Statutory Auditors M/s O P Bagla & Co. LLP, Chartered
Accountants, New Delhi and M/s
ASA Associates LLP, Chartered
Accountants, New Delhi
 Cost Auditors M/s Ramanath Iyer & Co., New
Delhi for Northern Region
M/s Bandyopadhyaya Bhaumik &
Co., Kolkata for Northern and
Eastern Region
M/s A C Dutta & Co., Kolkata for
Southern Region
M/s Musib& Company, Mumbai for
Western Region
M/s N.D Birla & Co., Ahmedabad
for Western Region
M/s Sanjay Gupta & Associates,
Central Region of New Delhi
 Secretarial Auditors M/s Agarwal S. & Associates
Company Secretary Shri Anil Kumar Jha

5. State the high and the low share prices of the company during
the F.Y. 2018-19.

ANS.
Highest Price Rs195.08
Lowest Price Rs158.88
6. Who are the Board of Directors of the Company and
members of the Audit Committee?

ANS.
Board Of Directors
Whole Time Directors  Shri B C Tripathi ,Chairman and
Managing Director
 Dr. Ashutosh Karnatak, Director
(Projects)
 Shri P K Gupta, Director (Human
Resources)
 Shri Gajendra Singh, Director
(Marketing)
 Shri Manoj Jain, Director (Business
Development)
 Shri A K Tiwari, Director (Finance) and
CFO
Independent Directors  Shri S.K. Srivastava
 Shri Anupam Kulshreshtha
 Shri Sanjay Tandon
 Shri Dinkar Prakash Srivastava
 Dr. Anup K Pujari
 Shri Jayanto Narayan Choudhury
 Dr. Rahul Mukherjee
 Smt Banto Devi Kataria
Government nominee  Shri Ashutosh jindal
directors  Shri Ashish Chatterjee

Audit Committee
 Shri Anupam Kulshreshtha
 Shri S.K.Srivastava
 Shri Sanjay Tandon
 Shri Gajendra Singh
7. What is the turnover of the company for the current year and
the previous year? How much is the change in turnover
compared to the previous year?

ANS.
Sales Turnover (2017-2018) Rs.53690 Crore
Sales Turnover (2018-2019) Rs.74808 Crore

Percentage Change
Rs.74808crore/Rs.53690crore*100
= 39% Increase

8. What is the profit before tax (PBT) for the current year and
the previous year? Compute the change in PBT compared to
the previous year?

ANS.
Profit before tax (2017-2018) Rs.6958 Crore
Profit before tax (2018-2019) Rs.9085 Crore
Percentage Change
Rs.9085crore/Rs.6958crore*100
=31% Increase

9. What is the profit after tax (PAT) for the current year and
the previous year? Compute the change in PAT compared to
the Profit after tax (PAT) to the previous year?

ANS.
Profit after tax (2017-2018) Rs.4618 Crore
Profit after tax (2018-2019) Rs.6026 Crore

Percentage Change
Rs.6026crore/Rs.4618crore
=30% Increase
10. How much dividend company has distributed during the
current year? How much dividend company had distributed
in the previous year? Compute the change in dividend
compared to the previous year?

ANS.
Dividend Distributed (2017-2018) Rs.1294
Dividend Distributed (2018-2019) Rs.1409
Change
Rs.1409crore-Rs.1294crore
=Rs.115crore Increase

11. Briefly state the significant information available in

public domain (such as newspapers, magazines) about the
company since April 1, 2020 till date, if any. The information
must be supported by reference of a newspaper or a
magazine.

ANS.

1. GAIL India Quarter1 results are reduction in profits by 56% to Rs.654

crore, revenue also shows downfall graph by 34%.

2. GAIL transports around 70 per cent of all gas shipped in the country

through its network of 12,426-km network of natural gas trunk

pipelines.

3. Natural gas prices showing third time reduction in rates in one year.

Prices were cut by 26 per cent to $2.39 per mmBtu (million British

thermal unit) in April.

EXTRA INFORMATION
1. Consolidating excellence in green energy –
• There was Launch of commencement of work of Talcher Fertilizers
Limited (TFL) in 2016.
• Ranchi CGD project inaugurated in 2016.
• Patna CGD Project inaugurated in 2016.
2. Sustainability Initiatives-
 Total solar and wind power capacity of GAIL is 128MW.
 Recycling water pipeline network was enhanced at GAIL Vijaipu
leading to saving of 3, 00,000 litres per day of water.
 100 Projects were taken under Sustainable Development worth
Rs.40Crore Annual Plan FY 18-19.

References-
1. https://energy.economictimes.indiatimes.com/news/oil-
and-gas/gail-india-looks-at-petrochemicals-renewables-for-
growth/77842770
2. https://energy.economictimes.indiatimes.com/news/oil-
and-gas/natural-gas-prices-may-be-cut-to-decade-low-of-1-
9-dent-ongc-revenues/77582409
3. https://www.businesstoday.in/current/corporate/gail-india-
q1-results-profit-falls-56-to-rs-654-crore-revenue-dips-
34/story/412868.html
4. https://economictimes.indiatimes.com/industry/energy/oil-
gas/7-indian-firms-among-top-250-global-energy-
companies/articleshow/2368815.cms
5. https://gailonline.com/pdf/InvestorsZone/AnnualReports/A
nnual%20Report%202018-19%20.pdf
6. https://www.NSEIndia.com/GAIL