Adani Gas Ltd, along with its peers, GAIL India Ltd.

& Royal Dutch Shell, use Historical Cost Concept

for accounting of their fixed assets. The following is an excerpt from the Notes of Adani Gas Ltd:
“Property, Plant and Equipment are stated at cost of acquisition or construction less accumulated
depreciation and impairment losses and net of taxes (Cen vat and VAT credit wherever applicable)”

As far as depreciation of fixed assets is concerned, Adani and GAIL use Straight Line method of
Depreciation. As per the Notes of Adani Ltd, “Depreciation is provided using straight-line method as
specified in Schedule l to the Companies Act, 2013. Estimated useful life of assets are determined
based on technical parameters / assessments. Depreciation on assets acquired /disposed off during
the year is provided on pro-rata basis with references to the date of addition/disposal.”