x

MIRA INFORM REPORT

Report Date :

16.02.2012

Tel. No.:

91-22-66785000

IDENTIFICATION DETAILS

Name :	MAHANAGAR GAS LIMITED
Registered Office :	MGL House, Block No. G-33, Bandra – Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	08.05.1995
Com. Reg. No.:	11-088133
Capital Investment / Paid-up Capital :	Rs.893.416 Millions
CIN No.: [Company Identification No.]	U40200MH1995PLC088133
Legal Form :	A Closely held public limited liability company
Line of Business :	Dealers and Distributors of Natural Gas
No. of Employees :	Not Divulged by Management

RATING & COMMENTS

MIRA’s Rating :

A (67)

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 36600000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a joint Venture Between GAIL (India) Limited, the BG Group (UK) and the Government of Maharasahtra. It is a well established company having fine track. Financial position of the company appears to be sound. Trade relations are fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business at usual trade terms and conditions.

NOTES : Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION DECLINED BY

Management Non Co operative

LOCATIONS

Registered Office :	MGL House, Block No. G-33, Bandra – Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-66785000 / 66952941
Fax No.:	91-22-26540092 / 66756491
E-Mail :	info@mahanagargas.com rsequeira@mahanagargas.com mkalgutkar@mahanagargas.com
Website :	http://www.mahanagargas.com
Corporate Office :	Pay & Accounts Office, Ground Floor, Near Family Court, Bandra – Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India
Tel. No.:	91-22-26591705 /26591708 / 26594555
Fax No.:	91-22-26592156
Project offices :	ANDHERI (WEST) Gala No. L/29, Laxmi Industrial Estate, New Link Road, Andheri (West), Mumbai – 400 053, Maharashtra, India Tel No.: 91-22-26350281 / 0278 Fax No.:91-22-26350281 KANDIVALI Row House No. 2, Shivalik Tower, Trishul Complex, Behind Zagdu Singh, Polytechnic, Thakur Complex, Near Asha Nagar, Kandivli (East), Mumbai – 400 101, Maharashtra, India Tel. No.: 91-22-28701258 / 1259 Fax No.: 91-22-28701260 CITIGATE STATION Opp. Anik BEST Depot, Sion, Mumbai 400022, Maharashtra, India Tel: 91-22-24045785 / 24031720 / 21 Fax: 91-22-24010080 CHAKALA G/13, Nahar And Seth Industrial Estate, Chakala, Andheri (East), Mumbai - 400 093. Maharashtra, India Tel: 91-22-28371849 / 28376506 Fax: 91-22-28371886 MIRA ROAD G-3 & 4, Ground Floor, Giriraj Tower, Saibaba Nagar, Mira Road (East), Maharashtra, India GRANT ROAD 1 & 2, Dhanshri Building, P. G. Solanki Marg, Near Minerva Cinema, Grant Road, Mumbai - 400 007. Maharashtra, India Tel : 91-22-23010081 Telefax : 91-22-23010072 MULUND Shop No. 10, Ground Floor, Arunodaya Shopping Complex, Arunodaya Nagar, Mulund (East), Mumbai - 400 081, Maharashtra, India Tel: 91-22-2591 0043 / 0359 Fax: 91-22-25910367 KALINA 158 Dani Corporate Park, Dani Mill Compound, Vidyanagari Marg, Kalina, Santacruz (East), Mumbai - 400 098, Maharashtra, India Tel : 91-22-26547200 Fax : 91-22-26547250 THANE 101 & 102, Landmark Arcade, Eastern Express Highway, Louis Wadi, Thane (West), Maharashtra, India VILE PARLE Avion Hotel, Nehru Road, Vile Parle (East), Mumbai - 400 057, Maharashtra, India Tel : 91-22-26136387/88/89/90 Fax : 91-22-26136391 ANDHERI (EAST) 712,Solitaire Corporate Park, Andheri-Ghatkopar Link Road, Chakala, Andheri (East), Mumbai – 400093, Maharashtra, India Tel : 91-22-28224840/4492 Fax : 91-22-28226269

DIRECTORS

As on 26.08.2011

Name :

Mr. Shadey Lal Raina

Designation :

Director

Address :

503, New Delhi Apartments, 7, Vasundhara Enclave, New Delhi-110 096, India

Date of Birth / Age :

26.05.1953

Date of Appointment :

26.03.2010

DIN :

02766927

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U11101AS2007GOI008290	BRAHMAPUTRA CRACKER AND POLYMER LIMITED	Director	9/9/2009	19/08/2009	-	Active	NO
2	U23201TR1990PLC003451	TRIPURA NATURAL GAS COMPANY LIMITED	Nominee director	19/08/2009	19/08/2009	11/10/2010	Active	NO
3	L40200DL1984GOI018976	GAIL (INDIA) LIMITED	Whole-time director	22/09/2010	19/08/2009	-	Active	NO
4	U40200MH1995PLC088133	MAHANAGAR GAS LIMITED	Director	27/08/2010	26/03/2010	-	Active	NO
5	U23209GJ2006PLC060282	ONGC PETRO ADDITIONS LIMITED	Director	21/09/2011	28/03/2011	-	Active	NO

Name :

Mr. Walter Alexander Fraser Simpson

Designation :

Director

Address :

Flat No.2801, Evita Apartment, Hiranandani Business Park, Powai, Mumbai-400 076, Maharashtra, India

Date of Birth / Age :

29.03.1963

Date of Appointment :

27.08.2010

DIN :

02756504

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U40109DL2005PTC181749	BG INDIA ENERGY SERVICES PRIVATE LIMITED	Director	30/06/2009	30/06/2009	-	Active	NO
2	U40101DL2004PTC174307	BG INDIA ENERGY SOLUTIONS PRIVATE LIMITED	Director	30/06/2009	30/06/2009	28/06/2010	Active	NO
3	U74999DL2000PTC175347	BG LNG REGAS INDIA PRIVATE LIMITED	Director	30/06/2009	30/06/2009	-	Active	NO
4	U40200DL1998PTC176478	BG INDIA ENERGY PRIVATE LIMITED	Director	30/06/2009	30/06/2009	-	Active	NO
5	L23203GJ1980PLC003623	GUJARAT GAS COMPANY LIMITED	Director	28/04/2011	22/07/2010	-	Active	NO
6	U40200MH1995PLC088133	MAHANAGAR GAS LIMITED	Director	27/08/2010	27/08/2010	-	Active	NO

Name :

Dr. Basudeb Sen

Designation :

Director

Address :

109, Rastraguru Avenue, Gurudham, Dum Dum, Kolkata - 700028, West Bengal, India

Date of Birth / Age :

16.06.1948

Date of Appointment :

21.03.2006

DIN :

00056861

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L16005WB1910PLC001985	ITC LIMITED	Director	27/08/2008	23/03/1995	-	Active	NO
2	L51496WB1996PLC079932	SOUTH ASIAN PETROCHEM LIMITED	Director	31/01/2003	31/01/2003	-	Amalgamated	NO
3	U65999WB1994PLC065722	SREI VENTURE CAPITAL LIMITED	Director	20/06/2003	20/06/2003	-	Active	NO
4	L51909WB1986PLC040098	GUJARAT NRE COKE LTD	Director	18/12/2003	18/12/2003	-	Active	NO
5	L70101WB1989PLC047465	SUMEDHA FISCAL SERVICES LIMITED	Director	28/12/2005	28/12/2005	-	Active	NO
6	U40200MH1995PLC088133	MAHANAGAR GAS LIMITED	Director	21/03/2006	21/03/2006	-	Active	NO
7	L27106WB1984PLC037519	JSW ISPAT STEEL LIMITED	Director	28/08/2008	30/06/2008	13/01/2011	Active	NO
8	L15492WB1916PLC002697	DHUNSERI PETROCHEM AND TEA LIMITED	Director	4/8/2011	3/7/2010	-	Active	NO
9	L27106WB1987PLC042756	HIMADRI CHEMICALS AND INDUSTRIES LIMITED	Director	28/09/2010	4/8/2010	-	Active	NO

Name :

Mr. Jainendar Kumar Jain

Designation :

Director

Address :

C – 018, Gail Emplyees Co-op Group HSG Society Limited, Plot No. GH – 9, Sector – 56, Gurgaon - 122003, Haryana, India

Date of Birth / Age :

21.10.1945

Date of Appointment :

02.01.2008

DIN :

00066452

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L24231UP1936PLC000740	SIMBHAOLI SUGARS LIMITED	Nominee director	28/11/2005	28/11/2005	6/5/2008	Active	NO
2	L35911HR1965PLC004485	JAMNA AUTO INDUSTRIES LIMITED	Nominee director	28/04/2006	28/04/2006	6/1/2012	Active	NO
3	L26939KL1963PLC002039	ENGLISH INDIAN CLAYS LTD	Director	8/9/2009	26/05/2006	-	Active	NO
4	U40200MH1995PLC088133	MAHANAGAR GAS LIMITED	Director	30/09/2008	2/1/2008	-	Active	NO
5	L40200GJ1998SGC035188	GUJARAT STATE PETRONET LIMITED	Director	21/09/2010	12/3/2010	-	Active	NO

Name :

Mr. Vipin Chandra Chittoda

Designation :

Managing Director

Address :

A-104, B-9/1, Sector 62, GB Nagar, Noida-201 307, Uttar Pradesh, India

Date of Birth / Age :

18.09.1954

Date of Appointment :

22.04.2010

DIN :

03053349

Name :

Mr. William Allan Perrin

Designation :

Whole-time Director

Address :

Flat No. 12S, Samshiba Apartments, Nargis Dutt Road, Bandra West, Mumbai – 400050, Maharashtra India

Date of Birth / Age :

15.11.1950

Date of Appointment :

07.12.2007

DIN :

01945487

Name :

Mr. Martha Grace Desmond

Designation :

Director

Address :

Flat No.2201, Evita Apartment, Hiranandani Business Park, Powai, Mumbai-400 076, Maharashtra, India

Date of Birth / Age :

01.06.1970

Date of Appointment :

28.05.2011

DIN :

03545605

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U40200MH1995PLC088133	MAHANAGAR GAS LIMITED	Director	26/08/2011	28/05/2011	Active	NO
2	L23203GJ1980PLC003623	GUJARAT GAS COMPANY LIMITED	Additional director	3/11/2011	3/11/2011	Active	NO

Name :

Mr. Santosh Kumar Bajpai

Designation :

Director

Address :

E-24, Sector – 55, Gautam Buddha Nagar, Noida – 201301, Uttar Pradesh, India

Date of Birth / Age :

01.07.1949

Date of Appointment :

21.07.2011

DIN :

00239324

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L40200DL1984GOI018976	GAIL (INDIA) LIMITED	Whole-time director	3/9/2007	1/11/2006	30/06/2009	Active	NO
2	U23201UP2005PLC030834	GREEN GAS LIMITED	Director	30/11/2006	30/11/2006	7/4/2008	Active	NO
3	U40200UP2005PLC029538	CENTRAL U.P. GAS LIMITED	Director	30/11/2006	30/11/2006	11/1/2008	Active	NO
4	U40100GJ1998SGC035212	GUJARAT STATE ENERGY GENERATION LIMITED	Nominee director	30/12/2006	30/12/2006	23/12/2009	Active	NO
5	U45400UP2009PLC036815	SAUMYA DSM INFRATECH LIMITED	Director	30/09/2011	15/07/2011	-	Active	NO
6	U40200MH1995PLC088133	MAHANAGAR GAS LIMITED	Director	26/08/2011	21/07/2011	-	Active	NO

Name :

Mr. Arun Balakrishnan

Designation :

Director

Address :

Flat No. : TNC – 122, Trinity Towers, DLF Phase 5, Gurgaon – 122009, Haryana, India

Date of Birth / Age :

25.07.1950

Date of Appointment :

21.07.2011

DIN :

00130241

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L23201MH1952GOI008858	HINDUSTAN PETROLEUM CORPORATION LIMITED	Director	25/01/2002	25/01/2002	31/07/2010	Active	NO
2	U45203MH1997PLC108251	PETRONET INDIA LIMITED	Director	23/06/2004	23/06/2004	27/07/2007	Active	NO
3	U23200MH1995PLC090671	HINDUSTAN COLAS LIMITED	Director	10/7/2007	3/4/2007	31/07/2010	Active	NO
4	U74899DL1998PLC096845	PRIZE PETROLEUM COMPANY LIMITED	Director	3/9/2007	3/4/2007	1/8/2010	Active	NO
5	U23201PB2000PLC024126	HPCL-MITTAL ENERGY LIMITED	Director	30/03/2011	3/4/2007	-	Active	NO
6	U11101AP1999PTC032851	SOUTH ASIA LPG COMPANY PRIVATE LIMITED	Director	20/04/2007	20/04/2007	8/4/2009	Active	NO
7	U74990PB2008PLC031715	HPCL-MITTAL SERVICES LIMITED	Director	28/02/2008	28/02/2008	-	Strike off	NO
8	U23200MH1996PLC102222	IOT INFRASTRUCTURE AND ENERGY SERVICES LIMITED	Director	21/09/2010	1/9/2010	-	Active	NO
9	U93090MH2006PLC165172	NCDEX SPOT EXCHANGE LIMITED	Director	16/06/2011	23/09/2010	-	Active	NO
10	U10100MH1975GOI018626	WESTERN COALFIELDS LIMITED	Director	24/02/2011	24/02/2011	-	Active	NO
11	L51909DL1963GOI004033	MMTC LIMITED	Director	16/07/2011	16/07/2011	-	Active	NO
12	U40200MH1995PLC088133	MAHANAGAR GAS LIMITED	Director	26/08/2011	21/07/2011	-	Active	NO
13	U15100MH1950GOI008187	INDIAN RARE EARTHS LIMITED	Director	23/09/2011	23/09/2011	-	Active	NO
14	L40200WB1935PLC008184	BOC India Limited	Additional director	18/10/2011	18/10/2011	-	Active	NO

Name :

Mr. Bhuwan Chandra Tripathi

Designation :

Director appointed in casual vacancy

Address :

Hosue No. A-2/27, 2^nd Floor, Safdarjung Enclave, New Delhi – 110029, National Capital Territory, India

Date of Birth / Age :

12.01.1960

Date of Appointment :

28.05.2011

DIN :

01657366

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L40200DL1984GOI018976	GAIL (INDIA) LIMITED	Managing director	1/8/2009	6/7/2007	-	Active	NO
2	U23201TR1990PLC003451	TRIPURA NATURAL GAS CO LIMITED	Nominee director	5/2/2008	5/2/2008	19/08/2009	Active	NO
3	U40200DL2008GOI178614	GAIL GAS LIMITED	Director	27/05/2008	27/05/2008	-	Active	NO
4	U23201UP2005PLC030834	GREEN GAS LIMITED	Director appointed in casual vacancy	8/8/2008	8/8/2008	16/04/2009	Active	NO
5	U40107MP2006PLC018684	AAVANTIKA GAS LIMITED	Nominee director	23/09/2008	27/08/2008	25/08/2009	Active	NO
6	U40200AP2003PLC041566	BHAGYANAGAR GAS LIMITED	Nominee director	15/10/2008	15/10/2008	19/08/2009	Active	NO
7	L23201DL1998PLC097614	INDRAPRASTHA GAS LIMITED	Director	29/07/2009	1/2/2009	21/10/2011	Active	NO
8	L74899DL1998PLC093073	PETRONET LNG LIMITED	Nominee director	25/06/2009	25/04/2009	-	Active	NO
9	U40200MH1995PLC088133	MAHANAGAR GAS LIMITED	Director appointed in casual vacancy	28/05/2011	3/7/2009	-	Active	NO
10	U11101AS2007GOI008290	BRAHMAPUTRA CRACKER AND POLYMER LIMITED	Director	9/9/2009	1/8/2009	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.08.2011

Names of Shareholders	No. of Shares
Chittranjan I. Dua	10
Raghu Ramaraju	10
Munish P. Sharma	10
Deepak L. Adlakha	10
N. K. Nagpal	10
BG Asia Pacific Holdings Private Limited (Singapore)	44449960
GAIL (India) Limited, India	44449960
Governor State of Maharashtra	441600
Raj Kumar Goel	10
M. Ravindran	10
R. C. Arora	10
Total	89341600

As on 26.08.2011

Equity Share Breakup Category	Percentage of Holding
Government (Central and State)	0.49
Foreign Holdings	49.75
Government Companies	49.75
Other top 50 shareholders	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Dealers and Distributors of Natural Gas

Products :

Item Code No. (ITC Code)	27112100
Product Description	Natural Gas

PRODUCTION STATUS [As on 31.03.2011]

Particulars	Unit	Actual Production
Natural Gas	Standard Cubic Meter	116181.77

GENERAL INFORMATION

No. of Employees :

Not Divulged by the management

Bankers :

• United Bank of India
• The Dhanalaxmi Bank Limited
• Bank of India
• ICICI Bank Limited
• The Hong Kong and Shanghai Banking Corporation Limited
• Deutsche Bank, AG
• Axis Bank
• Punjab National Bank
• Indian Bank
• Oriental Bank of Commerce
• HDFC Bank Limited
• Kotak Mahindra Bank Limited
• HSBC Offshore Banking Unit Mauritius, 5^th Floor, Les Cascadees Building, Edith Cavell Street, Port Louls, Mauritius
• Industrial Development Bank of India, IDBI Tower, Cuffe Parade, Mumbai – 400005, Maharashtra, India

Facilities :

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Long Term Loan from others Deferred Sales Tax Loan (Repayable within one year Rs. nil, since paid Rs.1.546 millions as on 31.03.2011, previous year Rs. 0.545 million)	107.915	110.006
Total	107.915	110.006

Banking Relations :	-
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumabi-400 018, Maharasahtra, India
PAN :	AABFD7919A
Promoter Venturer:	Gail India Limited
Investing Company :	British Gas Asia Pecific Holdings Pte. Limited (BGAPHPL)

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
130,000,000	Equity Shares	Rs.10/- each	Rs.1300.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
89,341,600	Equity Shares	Rs.10/- each	Rs.893.416 millions

Of the above: 18131300 Shares have been allotted as fully paid up pursuant to a contract, without payments being received in cash.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		893.416	893.416	893.416
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8257.093	6905.375	5860.770
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		9150.509	7798.791	6754.186
LOAN FUNDS
1] Secured Loans		0.000	0.000	50.000
2] Unsecured Loans		107.915	110.006	110.006
TOTAL BORROWING		107.915	110.006	160.006
DEFERRED TAX LIABILITIES		583.418	572.763	544.883
TOTAL		9841.842	8481.560	7459.075
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6390.722	5208.452	4778.620
Capital work-in-progress		3020.883	2486.662	1800.431
INVESTMENT		1130.254	955.457	865.769
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	135.960	139.583	130.968
	Sundry Debtors	1213.300	939.567	819.931
	Cash & Bank Balances	341.768	393.995	393.018
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	592.716	604.597	473.738
Total Current Assets		2283.744	2077.742	1817.655
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	903.668	839.542	784.052
	Other Current Liabilities	1153.885	815.003	482.079
	Provisions	926.208	592.208	537.269
Total Current Liabilities		2983.761	2246.753	1803.400
Net Current Assets		(700.017)	(169.011)	14.255
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		9841.842	8481.560	7459.075

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	10514.314	7728.071	6385.921
		Sale of Traded Items	0.000	0.000	8.091
		Other Income	221.329	159.312	147.182
		TOTAL (A)	10735.643	7887.383	6541.194
Less	EXPENSES
		Consumption materials changes inventories	5330.552	3557.872
		Manufacturing service costs	803.210	812.661
		Employee related expenses	256.468	206.864	3911.948
		Administrative selling other expenses	456.865	374.842
		TOTAL (B)	6847.095	4952.239	3911.948
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3888.548	2935.144	2629.246
Less	FINANCIAL EXPENSES (D)		9.415	18.734	14.521
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3879.133	2916.410	2614.725
Less/ Add	DEPRECIATION/ AMORTISATION (F)		555.689	480.933	405.594
	PROFIT BEFORE TAX (E-F) (G)		3323.444	2435.477	2209.131
Less	TAX (H)		1068.361	817.880	739.047
	PROFIT AFTER TAX (G-H) (I)		2255.083	1617.597	1470.084
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5918.994	5036.888	4236.930
Less	APPROPRIATIONS
		Proposed Dividend		312.696	312.696
		Proposed One- Time Special Dividend	1129.365	178.683	134.012
		Corporate Dividend Tax		81.612	75.918
		Transfer to General Reserve		162.500	147.500
	BALANCE CARRIED TO THE B/S		7044.712	5918.994	5036.888
	Earnings Per Share (Rs.)		25.24	18.11	16.45

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	21.00	20.51	22.47
Net Profit Margin (PBT/Sales)	(%)	31.61	31.51	34.59
Return on Total Assets (PBT/Total Assets}	(%)	38.31	33.42	33.49
Return on Investment (ROI) (PBT/Networth)		0.36	0.31	0.33
Debt Equity Ratio (Total Liability/Networth)		0.34	0.30	0.29
Current Ratio (Current Asset/Current Liability)		0.76	0.92	1.01

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors*
-dues to micro and small enterprises	9.726	20.334	4.224
-dues to others	[A]893.942	819.208	779.828
Total	903.668	839.542	784.052

Note : [A] includes capital creditors Rs.199.255 millions, previous year 246.462 millions)

Financial Performance:

The Company surpassed the milestone of Rs.10000 millions turnover, registering an impressive growth of 36% over the previous year. The Profit after Tax has increased by 39% from Rs.1620 millions for the year 2009-10 to Rs.2250 millions for the year 2010-11.

The return on average capital employed was around 24% signifying judicious investments in infrastructure, control over costs and well managed pricing strategies. Fixed assets turn over ratio improved from 1.55 for the previous year to 1.81 times indicating better utilization of assets.

Finance :

The Company continued to have a healthy cash flow. The net worth of the Company as on March 31, 2011 is now Rs.9150 Millions as compared to Rs.7800 Millions as on March 31, 2010. The Company does not have any secured loans as on March 31, 2011. The Company has not accepted any fixed deposits from the public. For the year 2010-11, long term rating of the Company has been retained at LAAA by ICRA. This is a result of the financial soundness of the Company. Low debt equity ratio will enable the Company to raise debt finance for ambitious expansion plans to realize the valuable potential of new areas for which the PNGRB has granted authorization to the Company.

Future plan of action :

- Continuing Vendor Development (Regulators, Meters, PE pipes, etc)

- Further development of SCADA, SynerGEE systems

- PE 100 Technology

- PE Risers

- Automater Meter Reading (AMR) technology

- HCNG Project

- Development of new applications / products based on Natural Gas

Operations and Business Performance :

Mumbai is a densely populated and congested city. Building infrastructure in the city has always been a challenge for the Company. Further more, as compared to other utilities whose infrastructure is mostly already laid in the limited corridors available, City Gas Distribution has the "last move in" disadvantage in Mumbai. This involves laying extensive new infrastructure in narrow corridors already overcrowded by other utilities. The Company has successfully continued scaling up of the infrastructure during the year in its existing areas of Mumbai, Thane, Mira-Bhayander and Navi Mumbai. The Company is setting up distribution infrastructure in the expansion areas of Kalyan-Dombivali, Ambernath, Ulhasnagar and Taloja in its authorized geographical areas. Growth has been maintained despite encountering complexities due to development of other infrastructure by various authorities like construction of flyovers, metro and monorail, subways, and other problems like edge to edge concretization of roads, expansion and re-development of roads with availability of limited corridor, limited construction season of only six months for building the infrastructure due to monsoons and delay in statutory permissions from local authorities to build City Gas Distribution infrastructure. Growth achieved by the Company . In June 2011, the number of household consumers have reached to 5.20 lakhs and CNG vehicles to 2.20 Lakhs approximately. There are now 149 CNG outlets. Continuous additions to the number of domestic connections and vehicles converted to CNG have ensured that the Company retains its position as the largest City Gas Distribution Company in India in terms of consumer base. The average gas sales volume of the Company during the financial year 2010-11 has increased to 1,755,313 SCM per day representing a growth of about 6% over the previous year. The highest daily volume has reached a peak of 2,078,447 SCM per day during the year. During the year 2010-11, the Company made substantial investments in network expansion in its existing areas of operations and laying, building and developing CGD infrastructure in its authorized expansion areas. The projects undertaken during the year have progressed well. During the year, apart from domestic connections, the Company has also made progress in increasing gas supply to Commercial and Industrial consumers. The peak daily sale of CNG exceeded 11,02,400 Kgs per day during the year, registering a growth of more than 6.5% over the peak daily demand in the previous year. The growth in demand for CNG is expected to continue and the Company is preparing to seize this opportunity by significantly investing further in the CNG infrastructure in the city of Mumbai and expansion areas during 2011-12.

Some of the important events / achievements during the year were :

(i) Day to day efficient gas sourcing, supply management, fund management and operations carried out by the Company led to reduction in overall costs and achievement of better profitability in spite of higher RLNG prices prevailing in the market.

ii) The Company has received highly commendable BG Group Chairman's award 2010 in the category of HSSE Effectiveness for vehicle tracking system.

(iii) The Company commissioned the PE line laid along with Steel in Navi Mumbai in April 2010 and 1st Domestic conversion done at Koparkhairne, Navi Mumbai.

(iv) The Company on July 06, 2010 commissioned 2nd City Gate Station (CGS) at Mahape. This CGS provides the Company direct connectivity with GAIL’s Dahej-Uran gas transmission pipeline (DUPL) and the National Gas Transmission System significantly enhancing security of its gas supplies.

(v) The new corporate website www.mahanagargas.com was launched by Chairman, MGL, in the month of August 2010.

(vi) The Company was accredited with LAAA rating in September 2010, the highest possible rating for Debt instrument by ICRA.

(vii) The Company achieved the milestone of 2.0 MMSCMD Gas throughputs on 31st December, 2010. The Company was recertified with OHSAS 18001:2007 and ISO 9001:2008.

(viii) The sponsorship of Natural Gas Vehicle (NGV) exhibition and Eco drive (Mumbai-Pune rally of CNG cars) provided a platform to MGL to communicate the present status of CNG availability and expansion plans, amongst various stakeholders such as vehicle OEMs, kit retrofitters, fleet owners and other CNG equipment manufacturers apart from general public. The Eco drive helped to demonstrate availability of wide range of CNG vehicles and possibility of CNG corridor between Mumbai and Pune, which is one of the busiest routes in India. Overall, these events brought in the momentum in CNG conversions in passenger car segment.

Development in Gas Supply Scenario :

The Company persuaded the Government of India (GOI) to increase its APM gas allocation for its priority segments (transport and domestic PNG) from 1.15 MMSCMD and 1.40 MMSCMD at 10.02 MMSCMD and 10.27 MMSCMD ex-Uran availability respectively to 2.0 MMSCMD on a firm no-cut basis. This firm allocation on a no-cut basis would significantly enhance the security of gas supply of the Company and would anchor growth in the domestic PNG and CNG segments for the next few years.

Development in Gas Pricing :

Government of India vide its letter dated November 24, 2010 increased the Non APM gas price for City Gas Distribution entities for Industrial and Commercial segment from US$ 4.75/MMBTU to US$ 5.25/MMBTU (NCV basis) with effect from July 01, 2010. Also, Spot RLNG prices increased substantially during the assessment year from about US$ 6/MMBTU to US$ 14/MMBTU. The company successfully maintained its absolute margins in the face of these increased gas costs by putting in place and implementing a comprehensive gas selling pricing policy.

Future Outlook :

In the next 5 years, MGL's sales volumes are expected to be more than double. The Company has ambitious expansion plans which inter alia include commissioning of 2 more city gate stations at Ambernath and Taloja shortly and interconnectivity of CGS at Wadala with DUPL network for security of supply. In the next five years, the Company has plans to increase its customers' base to over 10 lakh households covering a population of over 50 lakhs, operate over 340 CNG stations, expand the steel pipeline network to around 600 KM and PE pipeline network over 5500 KM. As regards investment for expanding its CGD infrastructure, the Company has plans for additional investment of Rs.25000 to Rs.30000 Millions in the next five years.

Health, Safety, Security and Environment (HSS and E) :

The Company is in the business of supplying piped and compressed Natural Gas that is environment friendly and safe. To facilitate this, the Company lays pipelines in the city of Mumbai and surrounding towns in Maharashtra as they strive to expand their business. Whilst doing this, the Company adheres to high safety and environmental standards as they believe that `Outstanding Business Performance requires Outstanding HSS and E Performance'. The Company complies with all legal and statutory requirements applicable to its operations as a minimum standard and aspires to attain recognised world class performance. The Strategic Management Group of the Company has produced and signed onto the MGL HSS and E Spirit Statement and Leadership Charter that details the commitment of the Senior Management of the Company to Health, Safety Security and Environment. In recognition of their efforts, the Company has received a prestigious BG Group Chairman's award for the year 2011 in the HSS and E Effectiveness category for the initiative they have undertaken on improving the behaviour of their vehicle drivers. In July 2010, the Company was audited for OHSAS 18001:2007 Certification from Dett Norske Veritas (DNV), a world renowned accreditation body. DNV were satisfied with their level of compliance to the standard with respect to HSS and E implementation. In Sept 2010, DNV also carried out an ISO 14001 audit for Environmental management System and confirmed a high level of compliance. The Company is committed to the health and safety of all its employees, the employees of the contractors and other people who may be affected by the Company's operations. The Company considers its contractors as business partners and expects them to adhere to the Company's HSS and E standards. The Company provides HSS and E training to its contractors' employees to perform their jobs safely. Regular site inspections for supporting site personnel to achieve high performance in safety and asset integrity are undertaken at worksites. The Company has identified and reviewed the high risk activities they undertake and developed a comprehensive system called "Lifesavers". This year, they added two more activities of Electrical and CNG operations to their Lifesavers. Compliance with Lifesavers is monitored for both quantitative and qualitative aspects and their performance is measured and monitored each month by the Company’s HSS and E Steering Committee. In their drive for continuous improvement in safety, the Company expects all employees and contractors to report near miss and hazards. All the reports are investigated and the lessons learnt are shared with all concerned. The Company also takes cognisance of the lessons learnt from other CGD companies across the world. The Company ensures that all personnel who are required to undertake work on the gas supply network are competent in both safety and technical aspects - Safety and Technical Competence (STC). The Company enforces "No STC training No Work" policy for all its operations. The Company has developed comprehensive Emergency Response Plans and Business Continuity Plan for handling any emergency incident and major crisis. The Company is also an active member of the local Mutual Aid Response Group together with other neighboring industries. The Company has contracted the services of a high caliber Provider of medical emergency response to respond to any emergency at their sites or at an employee's home. The company has installed a "Vehicle Tracking System (VTS)" on the operational vehicles used by the Company undertaking such duties as Emergency Response, delivery of CNG, etc. The system is on line and operates on GPS system. This system is available twenty four hours a day and facilitates tracking the location of the vehicles and keeping check for speed violations, harsh breaking and the journey taken

Contingent Liabilities : [As on 31.03.2011]

Claims against the Company not acknowledged as debts Rs. 804.585 Millions (previous year Rs. 815.573 Millions), includes:

i) Disputed demand for excise duty on trade margins paid to Oil marketing companies Rs. 677.713 Millions (previous year Rs. 561.481 Millions), on account of issues relating to availment of cenvat credit on certain equipments amounting to Rs. 27.242 Millions (previous year Rs. 26.306 Millions) and on account of other demands Rs. 1.476 Millions (previous year Rs. 1.294 Millions).

ii) Disputed demand for service tax relating to secondment charges Rs. 34.644 Millions (previous year Rs. 25.588 Millions) and input credit of service tax on pipeline laying services Rs.27.730 Millions (previous year Rs. Nil)

iii) Disputed demand for income tax on account of certain disallowances Rs. 3.298 Millions (previous year Rs. 9.609 Millions).

iv) Property tax disputed by the Company relating to issue of applicability of rateable value Rs. 1.008 Millions (previous year Rs. 4.816 Millions).

v) Estimate of incremental transportation charges payable on supply of natural gas for the period from 1st November, 2003 to 31st March, 2007 aggregating Rs. Nil (previous year Rs.115.166 Millions) computed on a basis which in the opinion of the Company is different from a subsisting contract and Lease Rent of City gate station land prior to incorporation which in the opinion of the Company is not payable is Rs. 14.400 Millions (previous year Rs.14.400 Millions).

vi) Amount claimed by contractor disputed by the Company Rs. 8.946 Millions (previous year Rs. 45.219 Millions).

vii) Third party claims due to disputes arising from supplies aggregating Rs. 6.618 Millions (previous year Rs. 6.733 Millions).

viii) Penalty for Municipal Corporation of Greater Mumbai deposits Rs. 1.510 Millions (previous year Rs.4.961 Millions).

Fixed Assets:

• Leasehold Land
• Buildings, Bunk houses
• Roads and Fences
• Electricals Installations
• Plant and Machinery
• Gas Distribution System
• Computers
• Office Equipments
• Communication Systems
• Furniture and Fixtures
• Motor Cars
• Software Expenditure

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.49.25
UK Pound	1	Rs.77.45
Euro	1	Rs.64.89

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		67

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	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
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.