MIRA INFORM REPORT

Report Date :

02.11.2007

IDENTIFICATION DETAILS

Name :	MAHANAGAR GAS LIMITED
Registered Office :	City Gate Filling Station, Opposite to Anik Bus Depot, Sion, Mumbai – 400 022, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	8^th May 1995
Com. Reg. No.:	88133
CIN No.: [Company Identification No.]	L40200MH1995PLC088133
Legal Form :	Closely held public limited liability company
Line of Business :	Dealers and Distributors of Natural Gas

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 10000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Available information indicates high financial responsibility of the company. Financial position is good. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings. It can be regarded as a promising business partner in a medium to long run.

LOCATIONS

Registered Office :	City Gate Filling Station, Opposite to Anik Bus Depot, Sion, Mumbai – 400 022, India
Tel. No.:	91-22-24045785/24012400
Fax No.:	91-22-24010080
E-Mail :	info@mahanagargas.com
Website :	http://www.mahanagargas.com
Corporate Office :	Pay & Accounts Buildings, Bandra – Kurla Complex, Bandra (East), Mumbai – 400 051
Tel. No.:	91-22-26591705/26591708
Project offices :	v G’ Block, Bandra – Kurla Complex, Bandra (East), Bandra Link Road, Mumbai – 400 051 EPABX: 91-22-26908072 – 75 v L29, Laxmi Industrial Estate, New Link Road, Andheri (West), Mumbai – 400 053 EPABX: 91-22-26350281 Fax No.:91-22-26350278 v Row House No. 2, Shivalaya, Shivashanti Building, Poisar, Thakur Complex, Kandivli (East), Mumbai – 400 101 Tel. No.: 91-22-26541707/26542647 v G – 13, Nahar & Sheth Industrial Estate, Chakala, Andheri (East), Mumbai – 400 099 EPABX: 91-22-28371749/28376490 Fax No.: 91-22-28371886 v J. N. Marshall Building, 5-11, Andheri – Kurla Road, Sakinaka, Mumbai – 400 072 Tel. No.: 91-22-28511259 Fax No.:91-22-28510239

DIRECTORS

Name :	Mr. C. R. Prasad
Designation :	Chairman
Name :	Mr. A. K. Purwaha
Designation :	Managing Director
Name :	Mr. Ajay Sondhi
Designation :	Director
Name :	Mr. Nigel Shaw
Designation :	Director
Name :	Mr. J. K. Jain
Designation :	Director
Name :	Mr. S. Niyogi
Designation :	Director
Name :	Mr. Peter Costello
Designation :	Director
Name :	Mr. Vishwas Dhumal
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Suresh Manglani
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Chittranjan I. Pua	10
Mr. Raghu Ramaraju	10
Mr. Munish P. Sharma	10
Mr. Deepak L. Adlakha	10
Mr. N. K. Nagpal	10
Mr. Ajay K. Garg	10
Mr. Jinendra Kumar Jain	10
Mr. Indra Narayan Jha	10
British Gas Asia Pacific Holdings Pte. Ltd. (Singapore)	44449960
Gas Authority of India Limited	44449960
Total	88900000

BUSINESS DETAILS

Line of Business :

Dealers and Distributors of Natural Gas

GENERAL INFORMATION

No. of Employees :	3400 (3000 temporary workers)
Bankers :	v United Bank of India v The Dhanalaxmi Bank Limited v Bank of India v ICICI Bank Limited v The Hong Kong & Shanghai Banking Corporation Limited

Banking Relations :	Good
Auditors :	M. P. Chitale & Company Chartered Accountants
Address :	Hamam Street, Ambalal Doshi Marg, Fort, Mumbai – 400 001
Tel. No.:	91-22-2651186/3916
Associates :	Gas Authority of India Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
13,00,00,000	Equity Shares	Rs. 10/- each	Rs. 1300.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8,93,40,000	Equity Shares	Rs. 10/- each	Rs. 893.400 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		893.400	893.400	893.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2961.400	1977.200	1209.600
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3854.800	2870.600	2103.000
LOAN FUNDS
1] Secured Loans		305.500	393.800	482.100
2] Unsecured Loans		110.000	357.900	728.500
TOTAL BORROWING		415.500	751.700	1210.600
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		4270.300	3622.300	3313.600
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4584.800	4360.400	3504.500
Capital work-in-progress		0.000	0.000	--
INVESTMENT		271.300	40.000	414.700
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	123.900	361.200	70.200
	Sundry Debtors	518.900	189.000	361.200
	Cash & Bank Balances	158.900	783.300	189.000
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	173.000	186.000	783.300
Total Current Assets		974.700	748.900	1403.700
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	1145.700	1218.500	1113.000
	Provisions	414.900	310.800	900.900
Total Current Liabilities		1560.600	1529.300	2013.900
Net Current Assets		[585.900]	[780.400]	(610.200)
MISCELLANEOUS EXPENSES		0.100	2.300	4.600
TOTAL		4270.300	3622.300	3313.600

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		5135.000	4247.700	3398.400
Other Income		74.800	56.000	56.300
Total Income		5209.800	4303.700	3454.700
Profit/(Loss) Before Tax		2059.200	1707.600	1269.900
Provision for Taxation
Profit/(Loss) After Tax		1391.700	1073.700	829.300
Expenditures :
	Stock Adjustment	[0.200]	0.000	0.000
	Raw Materials	1494.900	1201.900	917.600
	Power & Fuel Cost	251.500	205.800	154.700
	Other Manufacturing Expenses	257.600	202.800	144.600
	Employee Cost	109.900	103.500	91.400
	Selling and Administration Expenses	568.700	490.100	593.800
	Miscellaneous Expenses	149.400	142.600	105.600
	Interest & Financial Charges	47.400	49.600	61.300
	Depreciation	321.800	250.200	192.400
	Other Expenditure	0.000	0.000	0.000
Total Expenditure		3201.000	2646.500	2261.400

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt-Equity Ratio	0.17	0.39	0.63
Long Term Debt-Equity Ratio	0.17	0.39	0.63
Current Ratio	0.56	0.61	0.71
Fixed Assets	0.94	0.91	0.91
Inventory	49.04	54.56	86.36
Debtors	11.02	10.97	9.91
Interest Cover Ratio	44.44	35.43	21.72
Operating Profit Margin(%)	47.29	47.26	44.83
Profit Before Interest And Tax Margin(%)	41.02	41.37	39.17
Cash Profit Margin(%)	33.37	31.17	30.06
Adjusted Net Profit Margin(%)	27.10	25.28	24.40
Return On Capital Employed(%)	53.40	50.72	45.23
Return On Net Worth(%)	41.39	43.18	45.71

LOCAL AGENCY FURTHER INFORMATION

Financial Performance

: 
The Company has recorded an impressive financial performance consecutivelyfor the fifth year. The turnover has increased from Rs.2453 millions toRs.3395 millions, an increase of 38.44% and the Profit after Tax fromRs.539 millions to Rs.829 millions during the year under review. The tablebelow gives the financial performance of the year together with that of the previous year

: 
Infrastructure Growth

: 
 * Piped Natural Gas (PNG) : The Company has continued to place major thrusting expanding the PNG infrastructure in the city of Mumbai.Over 27,000additional Domestic consumers were connected on PNG during the year. Duringthe year under review, 26 Kms of Steel pipeline and 146 Kms of Polyethylenepipelines were laid to provide the benefit of convenience of PNG and CNG tomore and more number of consumers in the city of Mumbai. As on date, over2,58,000 Domestic, 1400 Commercial and 130 Small Industrial consumers haveregistered with the Company for supply of PNG, out of which the Companyhas already connected over 2103,000 Domestic, 600 Commercial and 45 SmallIndustrial consumers on PNG. Sale of PNG has increased to 4,71,445 SCM perday as on March 31, 2004 from 3,84,805 SCM per day on March 31, 2003, anincrease of 22.50%. 

 * Compressed Natural Gas (CNG) : The Company has given significantimportance to the expansion of the CNG distribution network at anaccelerated pace across the city of Mumbai. The vehicle population plyingon CNG has significantly increased during the year and as of now, thenumber of vehicles powered on CNG are over 1,36,000 compared to 70,000 onMarch 31, 2003. The current year also witnessed the conversion of tempos,trucks, private buses, LCV to CNG. 

The Company has augmented the infrastructure to meet the increased demandand to provide better customer satisfaction. During the year, 29 additionaloutlets were opened taking the total number of CNG outlets to 75 as onMarch 31, 2004. In addition to the above, compression capacity of 8 outletshas been augmented during the year. As of now, 87 CNG outlets aresuccessfully catering the requirement of CNG in the city of Mumbai. 

 In addition to opening of new CNG outlets, the Company has, during theyear, also focused on the enhancement of Compression Capacity and number ofDispensing Points. As on March 31, 2004, the Compression Capacity andDispensing Points have been increased to the level of 7,61,400 Kgs / dayand 352 Points from 3,92,000 Kgs / day and 192 Points respectively, anincrease of 94% in compression capacity. Sale of CNG has increased to6,15,300 Kgs per day as on March 31, 2004 from 3,57,990 Kgs per day as onMarch 31, 2003, an increase of 72%. 

Overall Growth : 

The Company has consistently recorded an all round superior growth duringthe year 2003-04. Average Gas sales volume increased from 6,28,564 SCM perday in 2002-03 to 8,75,105 SCM per day in 2003-04, an increase of 39%. TheGas Sales for the month of August 2004 has further increased to 11,55,000SCM/day. 

 ISO 9002 and 14001 Accreditation : 

The Company has joined the family of few selected companies who haveacquired accreditation of ISO-14001 in respect of 'Environment ManagementSystem' by successfully achieving the accreditation from M/s Det NorskeVeritas (DNV), Netherlands, in November 2003. Similarly, the Company, during the year, upgraded Quality Management System ISO - 9002 : 1994 toISO - 9001 : 2000 in respect of O & M of Piped Natural Gas and CompressedNatural Gas from M/s. DNV Netherlands. 

Management Analysis

* Industry Structure 

The natural gas industry is typically segmented into the Exploration andProduction (E&P), Transmission and Distribution sectors. E & P companiesexplore for gas, develop the gas fields and then produce and supply gas toTransmission companies, which transport this gas to downstream distributioncompanies and a few large end consumers through their high pressurepipeline transmission network. Distribution companies like MGL have anextensive low and medium pressure pipeline network that feeds small retailconsumers, few small industries and commercial establishments. Distributioncompanies also compress this gas at a high pressure for supply in the formof CNG to the transport sector. 

The company is the largest gas distribution company in India by customerbase. Till the last year, the company has been executing the project forsupply of PNG to Domestic, small Commercial and Industrial consumers andCNG to vehicles within the city of Mumbai. From this year onwards, apartfrom growing its business in Mumbai, the company is expanding itsoperations into areas adjoining Mumbai. 

 * Developments 

As Members are aware that Government of India is in the process offormulating a Petroleum Regulatory Board Bill. The basic objective of thisBill is to provide for a 'Regulatory Mechanism' for the Petroleum andNatural Gas sectors. The Company is keeping a close watch on thedevelopments in this regard to assess the impact of the likely regulationon the business of the Company to take timely measures so as to sustain thebusiness performance. 

Keeping in view the Report of Vijayaraghavan Committee constituted byMinistry of Petroleum and Natural Gas in the year 2002, the Company, duringthe year under review, has provided certain reliefs to its Domestic andIndustrial consumers to further enhance their savings. 

The Members are aware that Government of Maharashtra has granted interestfree deferral facility for a period of 13 years effective from April 1996till March 2009 to the Company on the sale of Natural Gas. However, inMarch 2002, Sales Tax Authorities initiated the recovery action for paymentof Sales Tax Liabilities effective from April 01, 2001. The representationmade by the Company to the Government of Maharashtra for continuation ofthe deferral facility for its original envisaged period of 13 years isunder consideration and is being pursued. 

 * Future Outlook : 

As of now, the Company has created a backbone infrastructure fordistribution of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) inthe city of Mumbai. The PNG infrastructure set up by the Company has thepotential to cater over 5,50,000 households. 

The Company has made plans to continue the growth of PNG and CNGinfrastructure in the city of Mumbai as well as to expand the areas ofoperation beyond Greater Mumbai covering the areas of Mira Road, Bhoyander,Thane, Kalyan, Dombivili, Navi Mumbai and Belapur so as to avail thebenefit of allocation of 0.5 MMSCMD of gas by MOP&NG for expansion areas toDomestic and Transport consumers. The Company is in discussions withvarious potential natural gas and R-LNG suppliers to source gas to servethe Industrial and Commercial market segments in the areas adjoiningMumbai. The Company has planned to lay over 30 Kms of Steel pipeline in theexpansion areas during 2004-05. 

The Company also hopes to play a significant role as a Joint Venturepartner in implementing the Pune City Gas Distribution Project in the near future. 

Considering the increased demand and future potential, the Company willcontinue to place major thrust on the development of CNG infrastructure inthe city of Mumbai as well as in the expansion areas. The Company hopes toadd more CNG outlets during the year 2004-05 and open outlets in theexpansion areas as well. 

The Company will also be looking for opportunities to provide 'Value AddedServices' to the consumers. The Company is in the process of amendingobject clauses in the Memorandum of Association to cover provisions ofvarious value added services as its business activities. 

CORPORATE OVERVIEW

MGL so far

From a modest background of supplying gas to the suburbs of Mumbai, MGL has today become the leading consumer gas friendly company with a customer tally of 2.8 lakhs connected PNG users and around 868 small industrial & commercial customers. The MGL project, which started in 1995 from Chembur, has covered major parts of Mumbai through its distribution network i.e. from Dadar to Dahisar, Sion to Mulund, Thane & Mira Bhayander area. MGL recently launched Piped Natural Gas in South Mumbai to bring the convenience of Natural Gas to South Mumbaikars & expanding the pipeline network in Navi Mumbai.

Fulfilling the promise of a Clean Mumbai, MGL's CNG powers 48,572 taxis, 2183 cars , 117568 rickshaws and 376 buses across the city through its network of 120 CNG stations, thus contributing to more than 577 metric tonnes reduction of pollutants every day.

Future Outlook

MGL has made ambitious plans for CNG & PNG expansion in Mumbai, Thane & Navi Mumbai. The MGL has laid around 215 kms of steel pipeline and 2015 kms of polyethylene pipeline. Further, the plan includes setting up of more number of CNG outlets as well as enhancing CNG compression capacity and dispensing points to provide CNG to the vehicles with minimum possible dry run and waiting.

MGL has also started looking for opportunities to expand its area of operations in the areas adjoining Mumbai city as well as providing value added services to the consumers.

Dr UPENDRA DUTTA CHOUBEY, Chairman

Dr Choubey, aged 57 years, has done M.Sc (Chemistry) in the year 1971. He has also got Ph.D. in Hydrocarbon derived from coal and petroleum. Further, Dr Choubey has done MBA in Marketing in the year 1981 and Bachelor of Law from the University of Delhi in 1993.

Dr Choubey has got over 32 years of experience in Energy Sector particularly in Natural Gas and also in Fertilizers and Chemicals.

Presently, Dr Choubey is the Chairman & Managing Director of GAIL (India) Limited w.e.f. March 01, 2007. Dr. Choubey is also the Chairman of Tripura Natural Gas Company Limited, Brahmaputra Cracker & Polymer Limited and Indraprastha Gas Limited. Dr. Choubey is also the Director of Petronet LNG Limited.

Dr Choubey has authored a book titled ‘A Text Book on Natural Gas’.

Mr WILLIAM ADAMSON, Director

Mr William Adamson, Managing Director, BG India, has been the Chairman of the Company till May 27, 2007. Now, Mr Adamson is a Non Executive Director on the Board.

Mr William Adamson, aged 58 years, has responsibility for leading the management and development of BG Group’s business in India as Managing Director, BG India.

Mr Adamson began his career with BG Group, then named British Gas, in 1966, as a student engineer. He held various positions before moving into gas marketing. He was appointed Director of Customer Services, responsible for all aspects of delivery of service engineering in Great Britain, in 1993.

Three years later he took up the role of Managing Director, MetroGAS, BG Group’s natural gas distribution business in Argentina, listed on the Buenos Aires and New York Stock Exchanges. MetroGAS serves nearly 2 million customers through a pipeline network of 15,000 kilometers.

In 2002, Mr William Adamson became the Vice-President and General Manager of BG Group’s North West Europe Downstream business with responsibility for power generation; gas transmission and marketing; UK Liquefied Natural Gas (LNG); and development and commercialisation of domestic combined heat and power applications across the UK and North West Europe.

Mr William Adamson is a Chartered Engineer with an Honours degree in Gas Engineering from the University of Salford, UK. He has completed both a middle management course and an executive management programme in Durham University and Manchester Business School respectively. In 2000, he has been awarded the Order of the British Empire (OBE) for services to British commercial interests in Argentina.

Dr BAKUL DHOLAKIA, Director

Dr Bakul Dholakia has been appointed as an Independent Non-Executive Director.

Dr Dholakia, aged 59 years, is a Doctorate in Economics (Gold Medallist). Presently, he is the Director of Indian Institute of Management, Ahmedabad. He has over 38 years of professional experience out of which 32 years has been with IIM, Ahmedabad and remaining as the Reserve Bank of India Chair Professor at IIM, Ahmedabad. A Doctorate in Economics, Dr Dholakia is recognised as one of the eminent Professors the country has produced. He has been a Consultant to the World Bank and the Asian Development Bank besides advising various National and International organisations. He has authored numerous books in Business Economics, Corporate Strategy, Development Economics etc.

Dr Dholakia’s achievements in institution building have been nationally and internationally acclaimed. In 2007, Dr Dholakia was awarded Padma Shri by the Government of India in recognition of his distinguished service in the field of education.

Mr VINESH KUMAR JAIRATH, Director

Mr V.K. Jairath, aged 48 years, has done MA (Economics) and LLB. Mr Jairath joined Indian Administrative Services (Maharashtra Cadre) in 1982.

Prior to assuming the charge of Principal Secretary (Industries), Government of Maharashtra effective from April 16, 2007, Mr Jairath’s earlier assignments includes Secretary (Industries), Government of Maharashtra (from February 05, 2005 till April 15, 2007), M/s SICOM as Managing Director (from May 05, 2003 to February 04, 2005), Secretary to Governor of Maharashtra, Municipal Commissioner of Kolhapur, Director in the Ministry of Environment, Government of India and Municipal Commissioner of Aurangabad.

Mr VINAY BANSAL, IAS, Director

Mr Vinay Bansal has been appointed as an Independent Non-Executive Director.

Mr Vinay Bansal aged 62 years have had an illustrious career. He is an IAS, Maharashtra Cadre, 1969 batch. Mr. Bansal had occupied several positions of eminence both at the State and Central Level. As the Principal Secretary, Industry, a role which he undertook twice in his career he was involved in drafting and implementing the industrial policy of Maharashtra.

Mr Bansal has been the Chairman of MSEB. On promotion as Secretary in Government of India, Mr Bansal was appointed as Chairman, National Pharmaceutical Pricing Authority, a Regulatory Authority under the Department of Chemicals, which fixes and enforces prices of selected bulk drugs and medicines. Mr Vinay Bansal has been the Director on the Board of MGL for a short period in the past.

Mr Vinay Bansal has been a rank holder in First Division throughout academically.

Dr BASUDEB SEN, Director

Dr Basudeb Sen has been appointed as an Independent Non-Executive Director.

Dr Sen, aged 59 years, has over 32 years of executive management experience in different areas of commercial, development and investment banking and portfolio management. He has served as Chairman and Managing Director of the Industrial Investment Bank of India Limited and Executive Director of the Unit Trust of India. In the last two decades, Dr Sen has served on various Committees set up by SEBI, RBI and domestic financial institutions and industry associations.

He is Director on the Boards of ITC Ltd, South Asian Petrochem Ltd, Gujarat NRE Coke Ltd, Sumedha Fiscal Services Ltd and SREI Venture Capital Limited, among others. He has earlier served on the Boards of several companies including CESC and L & T Ltd.

Dr Basudeb Sen is an M.A. in Economics from Calcutta University and a Ph.D. from Indian Statistical Institute, besides being an alumnus of the Harvard Business School, USA.

Mr R.K. GOEL, Director

Mr R.K. Goel, aged 56 years, is a graduate in Commerce and a Fellow Member of the Indian Institute of Chartered Accountants of India. Mr Goel brings with him an experience of over 30 years in the area of Financial Management by serving major Oil and Gas companies of India. Before joining GAIL, Mr R.K. Goel served for almost a decade in another Navratna Oil giant, Indian Oil Corporation Ltd.

Before taking over as Director (Finance) of GAIL (India) Limited in November 2005, Mr Goel was the Executive Director (Finance). He joined GAIL in July 1998.

Mr PRAFULLA KUMAR GUPTA, Managing Director

Mr Prafulla Kumar Gupta, aged 46 years, graduated in Mechanical Engineering in 1982. Mr Gupta has a rich experience of more than 24 years in Hydrocarbon Industry. He has worked in Indian Oil Corporation Limited and Oil and Natural Gas Corporation Limited.

Mr Prafulla Kumar Gupta, prior to his secondment to MGL, was a Zonal General Manager in GAIL, Mumbai. In GAIL, Mr. Gupta was associated with the construction, commissioning and operation and maintenance of India’s first cross-country HVJ gas pipeline. Thereafter, he contributed in commissioning and operation and maintenance of LPG extraction facility at Vijaipur. He was the In-charge of Corporate O&M Control Room at Delhi before moving to the arena of Corporate Governance by assisting Director (Projects) of GAIL where he handled

variety of proposals covering entire spectrum of the organization including Projects, O&M, Marketing, Business Development, Finance etc.

For the last more than 2 years, Mr. Gupta has been looking after GAIL's marketing activities in the fields of natural gas, petrochemicals, liquid hydrocarbons and bandwidth in entire Maharashtra and Goa.

Mr PHILIP DAVID CROFT, Technical Director

Mr Philip David Croft, aged 38 years, is a Chartered Mechanical Engineer and a Chartered Gas Engineer with 17 years experience in the Gas Industry of UK. Prior to joining MGL, was a Lead Area Engineering Manager at National Grid Transco, UK and was responsible for detailed Design and Construction of gas high pressure and storage assets across UK together with delivering projects for clients such as Network Rail, Highways Authorities and Property Developers. Additional responsibilities included Business Risk Management and accountability for 6 framework contracts involving 60 companies.

Mr SRIKANTH RAJASANKAR, Director

Mr Srikanth Rajasankar, aged 45 years, is CFO, BG India. He is a Chartered Accountant with more than 19 years post qualification in wide ranging areas such as Financing, Risk Management, Investor Relations, Governance Accounting and Controlling Functions in reputed Indian and Multinational Companies.

BUSINESS INFRASTRUCTURE

• Inbuilt safety Features has been implemented in Basic Steel Grid.
• Inbuilt Safety features has been implemented in MDPE gas Distribution network.
• District regulating station (DRS) : Device used to reduce the pressure from 19 bar to 4 bar.

• Service regulator (SR) :device used to reduce the pressure from 4 bar to 0.1 bar.

• Meter regulator: device used to reduce the pressure from 0.1 bar to 21 mbar and fitted in Customer premises.

• Metering & Regulating Station (MRS): Device used to reduce the pressure from 19 bar or 4 bar to required outlet pressure. It is located inside the industry premises.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.39.32
UK Pound	1	Rs. 81.82
Euro	1	Rs. 56.90

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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