MIRA INFORM REPORT

Report Date :

11.05.2012

IDENTIFICATION DETAILS

Name :	GUJARAT STATE PETROLEUM CORPORATION LIMITED
Registered Office :	GSPC Bhavan, Behind Udyog Bhavan, Sector-11, Gandhinagar-382011, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.01.1979
Com. Reg. No.:	04-003281
Capital Investment / Paid-up Capital :	Rs.2234.363 Millions
CIN No.: [Company Identification No.]	U23209GJ1979SGC003281
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Exploration of Gas and Oil.
No. of Employees :	10000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (72)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 160000000
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 correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions. It can be regarded as a promising business partner in a medium to long – run.

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 :	GSPC Bhavan, Behind Udyog Bhavan, Sector-11, Gandhinagar-382011, Gujarat, India
Tel. No.:	91-79-55701532 / 28501001 / 55701005/ 66701001
Fax No.:	91-79-23236375 / 55701331
E-Mail :	gspc@gujaratpetro.com sandeepdave@gspc.in info@gspc.in
Website :	http://www.gujaratpetro.com
Corporate Office 1:	GSPC, Transit House/ Office, Near Light House, Village Hazira, District Surat, Gujarat, India
Tel. No.:	91-261-2870311/ 2870314
Fax No.:	91-261-2870668
Corporate Office 2:	Synergy Station, CNG Filling Station, Near ONGC Cross Road, Ichhapore, Surat, Hasira Road, Surat, Gujarat, India
Tel. No.:	91-261-2841510/ 2841504

DIRECTORS

As on 29.09.2011

Name :	Achalkumar Kishor Chand Joti, IAS
Designation :	Chairman
Address :	Government Bunglow No. 26, Dafnala, Sahibaug, Ahmedabad, Gujarat, India
Date of Birth/Age :	23.01.1953
Date of Appointment :	08.03.2010
Din No.:	01468434
Name :	Mr. Tapan Ray, IAS
Designation :	Managing Director
Address :	K-16, Sector 20, Gandhinagar, Gujarat, India
Date of Birth/Age :	09.09.1957
Date of Appointment :	26.12.2006
Din No.:	00728682
Name :	Mr. Urjit Ravindra Patel
Designation :	Director
Address :	B-1, Harbour Heights, Flats 3 F, NA, Sawant Road, Collaba, Mumbai, Maharashtra, India
Date of Birth/Age :	28.10.1963
Date of Appointment :	26.12.2006
Din No.:	00175210
Name :	Mr. Kuniyil Kailashnathan, IAS
Designation :	Director
Address :	Principal Secretary to Hon’ble CM, Block No. 1, Fifth Floor, Sachivalaya, Gandhinagar, Gujarat, India
Date of Birth/Age :	25.05.1953
Date of Appointment :	26.12.2006
Din No.:	00587901
Name :	Mr. Jagatheesa Dharmakkan Pandian, IAS
Designation :	Director
Address :	KH-214, Sector 19, Gandhinagar-382019, Gujarat, India
Date of Birth/Age :	11.05.1955
Date of Appointment :	30.10.2001
Din No.:	00015443
Name :	Mr. M.M. Shrivastava, IAS
Designation :	Director
Address :	K-503, Sector 20, Gandhinagar, Gujarat, India
Date of Birth/Age :	23.07.1952
Date of Appointment :	20.12.2008
Din No.:	02190050
Name :	Mr. Tirumalachetty Harinarayana
Designation :	Director
Address :	P. No. 125, Suryanagar, RR District, Uppal-500039, Andhra Pradesh, India
Date of Birth/Age :	10.06.1954
Date of Appointment :	21.12.2009
Din No.:	02902872
Name :	Mr. Narasimhan Ravichandran
Designation :	Director
Address :	Director’s Bunglow, IIM Indore Campus, Prabandh Shikhar, Rau-Pithampura Road, Indore-453331, Madhya Pradesh, India
Date of Birth/Age :	24.09.1953
Date of Appointment :	21.12.2009
Din No.:	02065298
Name :	Mr. Yogesh Behari Sinha
Designation :	Director
Address :	707, Skytech Magadh, GH-7, Sector 3, Vaishali, Ghaziabad-201010, Uttar Pradesh, India
Date of Birth/Age :	25.04.1946
Date of Appointment :	21.12.2009
Din No.:	02902722
Name :	Mr. Suresh Mathur
Designation :	Director
Address :	F-41, Green Park, New Delhi, India
Date of Birth/Age :	25.07.1940
Date of Appointment :	26.12.2006
Din No.:	00075227

KEY EXECUTIVES

Name :	Mr. Sandeep Dave
Designation :	Company Secretary
Address :	Plot No. 666/2, Panchvati Park, Sector-23, Gandhinagar-382023, Gujarat, India
Date of Birth/Age :	13.02.1975
Date of Appointment :	01.11.2008
Pan No.:	AEHPD3040G

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
B.K. Patel and Governor of Gujarat, India	200
Gujarat Alkalies and Chemicals Limited, India	21543200
Gujarat Industrial Investment Corporation Limited, India	20555500
Gujarat Industrial Development Corporation, India	12345600
Gujarat Mineral Development Corporation Limited, India	26172800
Gujarat Narmada Valley Fertilizers Company Limited, India	21543200
Gujarat State Fertilizers Company Limited, India	23500000
Gujarat Gas Company Limited, India	2000000
Governor of Gujarat, India	2007220000
K.K. Patel and Governor of Gujarat, India	200
K.H. Chorera and Governor of Gujarat, India	200
P.M. Dodiya and Governor of Gujarat, India	200
Avantika Aulakh, IAS and Governor of Gujarat, India	200
N.B Dave and Governor of Gujarat, India	200
H.F. Gandharv and Governor of Gujarat, India	200
IDBI Bank Limited, India	18518500
Gujarat State Investment Limited, India	13580200
IFCI Limited, India	12345600
SBI, India	37037030

As on 29.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	0.91
Government [Central and State]	89.83
Government companies	6.22
Public financial companies	0.55
Nationalized or other banks	2.49
Total	100.00

BUSINESS DETAILS

Line of Business :

Exploration of Gas and Oil.

Products :

Product Description	Item Code
Crude Oil	27090000
Natural Gas	27112100
Wind Energy	26160000

GENERAL INFORMATION

No. of Employees :

10000 (Approximately)

Bankers :

• State Bank of India, Corporate Account Group Branch, 58, Shrimali Society, Navrangpura, Ahmedabad-380009, Gujarat, India
• Bank of India
• Bank of Baroda
• Canara Bank
• Corporation Bank
• Federal Bank
• IDBI Bank Limited
• Indian Bank
• Indian Overseas Bank
• Punjab National Bank
• State Bank of Bikaner and Jaipur
• State Bank of Mysore
• State Bank of Indore
• State Bank of Saurashtra
• State Bank of Travankore
• Union Bank
• Vijaya Bank

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loan	26952.300	14374.000
Fully convertible debentures	0.000	3000.000
Foreign currency loans	14511.300	14670.500
Total	41463.600	32044.500
Unsecured Loan
Rupee term loan banks	18353.200	14343.800
Rupee term loans others	11450.000	17450.000
Total	29803.200	31793.800

Banking Relations :	--
Financial Institution:	IDBI Trusteeship Service Limited, Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai-400001, Maharashtra, India
Auditors :
Name :	Talati and Talati Chartered Accountants
Address :	Ambica Chambers, Near Old High Court, Navrangpura, Ahmedabad, Gujarat, India
Pan No.:	AAAFT4520A
Associates/Subsidiaries :	· Gujarat State Petronet Limited [L40200GJ1998SGC035188] · GSPC Pipavav Power Company Limited [U40100GJ2006SGC047783] · GSPC LNG Limited [U23203GJ2007SGC050115] · Guj Info Petro Limited [U72900GJ2001PLC039162] · GSPC Gas Company Limited [U23100GJ1999SGC035573] · GSPC (JPDA) Limited [U23201GJ2006SGC049229] · Gujarat State Energy Generation Limited · Sabarmati Gas Company Limited

CAPITAL STRUCTURE

After 29.09.2011

Authorised Capital : Rs.3000.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.2296.091 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000000	Equity Shares	Re.1/- each	Rs.3000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2234363030	Equity Shares	Re.1/- each	Rs.2234.363 Millions

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		2234.400	2197.300	2112.200
2] Share Application Money		5000.000	0.000	0.000
3] Reserves & Surplus		34994.000	29387.500	20012.600
4] (Accumulated Losses)		0.0000	0.000	0.000
NETWORTH		42228.400	31584.800	22124.800
LOAN FUNDS
1] Secured Loans		41463.600	32044.500	28635.500
2] Unsecured Loans		29803.200	31793.800	20836.600
TOTAL BORROWING		71266.800	63838.300	49472.100
DEFERRED TAX LIABILITIES		613.500	640.800	459.200
TOTAL		114108.700	96063.900	72056.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7832.700	8727.400	5307.500
Capital work-in-progress		94346.000	76901.900	60561.600
INVESTMENT		4509.600	4235.400	4065.000
DEFERREX TAX ASSETS		0.000	0.000	0.700
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1528.600	32.400	18.000
	Sundry Debtors	3184.300	2244.600	1460.100
	Cash & Bank Balances	860.500	1037.800	8154.400
	Other Current Assets	8.900	6.800	5.600
	Loans & Advances	12393.700	11435.400	10982.600
Total Current Assets		17976.000	14757.000	20620.700
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6677.700	4759.900	9747.500
	Other Current Liabilities	3059.800	2951.700	7850.700
	Provisions	1058.400	906.700	901.200
Total Current Liabilities		10795.900	8618.300	18499.400
Net Current Assets		7180.100	6138.700	2121.300
MISCELLANEOUS EXPENSES		240.300	60.500	0.000
TOTAL		114108.700	96063.900	72056.100

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	47673.900	38685.500	54761.800
		Other Income	386.600	269.800	312.500
		TOTAL (A)	48060.500	38955.300	55074.300
Less	EXPENSES
		Consumption Materials Changes Inventories	40579.500	31116.700
		Manufacturing Service Cost	670.500	995.400
		Employee Related Expenses	85.000	75.100	47269.300
		Administrative Selling Other Expenses	971.200	925.800
		Prior Period Items	2.900	19.700
		TOTAL (B)	42309.100	33132.700	47269.300
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5751.400	5822.600	7805.000
Less	FINANCIAL EXPENSES (D)		416.600	271.400	74.300
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5334.800	5551.200	7730.700
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1301.500	1540.700	1423.000
	PROFIT BEFORE TAX (E-F) (G)		4033.300	4010.500	6307.700
Less	TAX (H)		803.800	834.000	2562.800
	PROFIT AFTER TAX (G-H) (I)		3229.500	3176.500	3744.900
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3234.500	3553.500	9066.400
Less	APPROPRIATIONS
		Transfer to General Reserve		3000.000	9000.000
		Dividend	3518.100	424.900	225.700
		Tax on Dividend		70.600	32.100
	BALANCE CARRIED TO THE B/S		2945.900	3234.500	3553.500
	Earnings Per Share (Rs.)		1.45	1.50	1.77

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.72	8.15	6.80
Net Profit Margin (PBT/Sales)	(%)	8.46	10.37	11.51
Return on Total Assets (PBT/Total Assets}	(%)	15.63	17.07	24.32
Return on Investment (ROI) (PBT/Networth)		0.10	0.13	0.28
Debt Equity Ratio (Total Liability/Networth)		1.94	2.29	3.07
Current Ratio (Current Asset/Current Liability)		1.67	1.71	1.11

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Creditors Due Others	6677.700	4759.900	9747.500

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	No
6) Line of Business•	Yes
7) Promoter’s background	Yes
8) No. of employees	Yes
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

RESULTS FROM OPERATIONS:

In spite of reduction in production from Hazira field and volatile gas market, the Company has managed to achieve profitability in the same range as previous year.

BUSINESS:

Energy has always been a key leading driver for sustainable development in any country. Energy consumption in India continues to grow consistent with the sustained economic growth. The Company along with its subsidiaries and affiliates has evolved strategically as “Integrated Energy Company” with remarkable presence across the entire energy value chain spanning wide range of oil and gas activities comprising oil and gas exploration, development and production, gas trading, gas transmission, gas distribution and power generation. The Company has played a proactive role in the development of entire gas value chain in the State of Gujarat through its initiative of participation in the midstream and downstream segments as well as gas based power generation and initiating activities for setting up of LNG Terminal.

With high level of managerial and technical competence, it is working relentlessly to realize the vision of developing Gujarat as a “Petro Capital of India”. The Company has emerged as a Global Player in the EandP Sector. The Company has grown from operatorship of small onshore fields in Gujarat, to an expansive oil and gas exploration across India and overseas within short period.

The Company has maintained an upward trend in all performance parameters.Major achievements and performance highlights are summarized below:

Upstream Business Activities

The Company has significant growth potential with a diversified portfolio of onshore and offshore blocks, both within India and internationally, along with combination of matured blocks and blocks under development and exploration. The Company holds participating interest in 64 onshore and offshore exploration and production blocks of which 53 blocks are located in India and 11 are located in Australia, Egypt, Indonesia and Yemen covering a total area of more than 257,810 square kilometers in India and abroad. The Company is operator in 9 blocks overseas and 10 blocks in India.

Technology plays an important role in E and P sector. The Company has inducted best in class technology in all spheres of its exploration, development and production activities. In addition, the Company has also entered into strategic service agreements with reputed service providers like Schlumberger, Halliburton, Baker Hughes, M I Overseas, B J Services, Weatherford, ITS, , Aban Offshore, Nabors, Precision Drilling, PetroTel Inc., Fugro, Blade energy , EIL, L and T, Punj Loyd etc. to have cutting edge in E and P operations.

The major achievement in upstream business activities are summarized below,

1) DDW Development Project

The Company is fully geared up and committed to proceed ahead with the successful execution and implementation of the Deen Dayal West Field Development Project which is hailed as the first offshore HPHT (High Pressure High Temperature) field development plan in India. The Company has achieved significant progress in development of DDW Field. Key milestones are summarized below,

• The KG-OSN-2001/3 offshore block was awarded to GSPC under a production sharing contract with Government of India in February, 2003. The Company since then drilled total of 17 exploratory/appraisal wells, some of these wells were drilled to 6000m depth, which are the deepest HPHT wells globally.

• The Company has carried out detailed G and G studies and deployed internationally renowned technical consultants i.e. Schlumberger, Fugro Robertson, Petrotel and Blade Energy. These technical studies have helped in developing better understanding about the geological system and development philosophy.

• The Company has successfully installed 6 legged Well Head Platform (WHP) and it is ready for drilling. The weight of WHP is 6000 MT and it has 3 Levels of Decks namely Sub cellar Deck, Cellar Deck and Main Deck.

• The Company has also awarded all other major contracts for DDW development including PLQP (Processing cum Living Quarter Platform) contract to M/s. L and T, Platform Rig contract to M/s Nabors, Submarine Pipeline contract to M/s. Punj Lloyd and development of Onshore Gas Terminal through M/s. EIL.

2) Other E and P block

• The company has made two oil and gas discoveries in Ank-40 and Ank-41 wells in onshore exploratory block of CB-ONN-2003/2. Both the discoveries have been declared as potentially commercial and currently evaluated for appraisal and development.

• The Company has entered into strategic alliance with Schlumberger for CB-ON/2 (Tarapur) Block. The objective of the alliance is to explore the possibility of enhancing production of oil through induction of new technology.

• Oilex, the operator for Cambay field (wherein the Company holds 55% participating interest) has re-established the presence of gas in the tight siltstone reservoirs of the Cambay field. First well based on the new technology of horizontal drilling followed by multi-stage hydraulic fracturing has been successfully drilled to a measured depth of 2740m with lateral section of 600m. The initial results of drilling and logging are encouraging. The well has been cased and is ready for hydraulic fracturing prior to testing.

• ONGC, operator of _ CB-ONN-2004/2 block (where in the Company hold 45% of participating interest) has discovered hydrocarbons in chhatral formation.

Midstream Business Activities:

1. Gas Trading

The Company has extended its valuable support as the aggregator of gas to various Independent Power Producers (IPPs), gas distribution companies, fertilizer plants and industrial units. The Company has viewed LNG as a critical source to meet the demand for gas. The Company is proud of being leading market maker of gas, for suppliers of gas (LNG Importers and domestic gas producers). The Company has also played a pivotal role in developing gas markets that too at market determined prices. The Company is today one of the leading gas marketing company in the country.

The major achievement in Gas trading business are summarized below,

• The Company has imported 12 LNG cargoes (7 at Dahej and 5 at Hazira) from global market including Egypt, Nigeria, Trinidad and Tobago and United States of America during the financial year 2010-11. The Company has also entered into short term LNG sales purchase contract with leading global companies during the year for supplies during Year 2011 and 2012. In its endeavor to source long term LNG, the Company has carried out negotiation with several Global LNG suppliers and has made progress during this year in this directions.

• The Company has entered into a long-term gas purchase agreement with IOCL to purchase 2.0 MMSCMD of gas imported by Petronet LNG Limited.

2. Gas Transmission

In the midstream section of the integrated value chain, GSPL the listed subsidiary of the Company has emerged as the leading player in the State of Gujarat which provides connectivity to major demand centers and supply sources in the State of Gujarat. GSPL owns and operates approximately 1874 kilometers of gas pipelines. GSPL has transported an average of 35.53 mmscmd of gas.

GSPL led consortium has won the bids to lay and operate three pipelines namely Mallavaram-Bhilwara Pipeline, Mehsana-Bhatinda Pipeline and Bhatinda –Jammu – Shrinagar Pipeline “totalling to approximately 4000 kms of length.

3. LNG terminal

The Company has incorporated GSPC LNG Limited for developing LNG Receiving, Storage and Regasification Terminal in the State of Gujarat with an initial capacity of 5 MMTPA to ensure energy security. The LNG terminal is designed to have two LNG storage tanks. FEED has been completed. The Company has executed the joint venture agreement with Adani for setting up LNG terminal in Gujarat.

Downstream Business activities

1. City Gas Distribution

In the downstream section of integrated value chain, GSPC Gas Company Limited (GSPC GAS) and Sabarmati Gas Limited (SGL) have scaled following milestones by developing pipeline infrastructure and supplying piped natural gas.

• GSPC Gas has customer base of 2,58,613 domestic customers, 1,213 industrial customers and 991 commercial establishments as well as 110 CNG stations in various areas in the State of Gujarat. The average daily gas sale from all the segments is approx. 3.8 MMSCMD.

• SGL has customer base of 49,779 domestic customers, 176 industrial customers and 245 commercial establishment as well as 19 CNG stations in three Districts of North Gujarat. The average daily gas sale from all the segments is approx 0.75 MMSCMD.

CGD business is growing very rapidly and CGD companies of GSPC Group are expected to grow by leaps and bounds in the years to come.

2. Power Generation:

GPPC (702 MW) the subsidiary of the Company along with GSEG (351 MW) the associate of the Company are scheduled to commission 1053 MW gas based power generation capacity by FY 2011. GPPC and GSEG have awarded EPC contracts for setting up gas based power generation plants. The new projects scheduled to commission during F.Y 2011-12 will increase the gas based power generation capacity from 156 MW to approx 1200 MW.

The Company has set up a 52.5 MW wind farm at Jakhau, Gujarat which was commissioned in July 2009. GSPL the subsidiary of the Company has taken steps to set up another 52.5 MW wind farm in the State of Gujarat.

Other Operations.

1) IT Infrastructure

The Company has promoted GIPL (Guj Info Petro Limited) for providing IT related services with specific focus on energy sector. GIPL is an IT arm of GSPC which has always remained in the vanguard of taking initiatives which transforms the lives of people in Gujarat. GIPL currently holds a category “A” internet service provider license from the Department of Telecom, Government of India for operations across India.

2) Gujarat Energy Research and Management Institute (GERMI)

GERMI is a registered society promoted by GSPC with a vision to establish it as a leading one stop institution for the entire gamut of educational, training and research requirements of the energy sector. This institute develops the talent pool for the oil and gas sector, conduct research and training in petroleum sector, assists in devising techno-economically feasible solutions for various problems encountered in exploration, drilling, production and transportation operations. GERMI has also established a centre of excellence in Energy with focus on oil and gas, solar and environmental research.

Management Discussion and Analysis

The global economic recession that began in 2008 and continued in 2009, seems to have been ended even though the pace of recovery has been uneven so far. The energy demand has improved globally during the financial year 2010-11. During the year the Global energy consumption has recorded 5% rise in 2010, the largest increase since 1973. (Source: BP Statistical Review of World Energy, June 2011). In 2010, India’s consumption of natural gas was 61.9 BCM as against 51.0 BCM in 2009. Thus, increase in gas consumption in India in 2010 was

21.5% as compared to 2009 (Source: BP Statistical Review of World Energy, June 2010). Further in 2010, India production of natural gas was 50.9 BCM as against 39.2 BCM in 2009. Thus increase in gas production in India in 2010 was 29.7% (Source: BP Statistical Review of World Energy, June 2010). As against the consumption of 61.9 BCM, India produced 50.9 BCM of natural gas in 2010 showing continued demand supply gap in the natural gas sector which is met through import of LNG.

Further the proved gas reserves in India has increased form 1.1Trillion Cubic Meter in 2009 to 1.5 Trillion Cubic Meter in 2010 recording an increase in 30% as compared to 2009 (Source: BP Statistical Review of World Energy, June 2010). As far as the State of Gujarat is concerned, the Industrial Policy of Gujarat has always focused on development of Energy Sector. Gujarat has always remained committed to establish itself as the “Petro Capital” of India. Gujarat, by far, is the most developed gas market in the country. Currently, Gujarat alone accounts for approximately 40% of total gas demand in the Country.

In light of the overall economic scenario as stated above, the performance of the Company has been analyzed as follows:

Producing Assets

Oil and gas production volumes, which depend on the yield from their producing fields, have a significant impact on the Company’s results of operations. Currently, all of their producing fields are within the Cambay basin, where they hold participating interests in 15 producing fields. The Cambay basin is a maturing resource province with declining production levels, especially of gas. The volume of production from oil and gas fields generally declines as reserves are depleted due to production. The Company also intends to continue exploration activities in their existing exploration blocks to discover new oil and gas reserves for development. Discoveries of oil and gas in the Sanand-Miroli and Ankleshwar blocks are currently under appraisal and declaration of commerciality and applications for various FDP approvals are currently in process. They are currently exploring a total of approx 257,810 square kilometers. Their future production will be significantly dependent upon their success in finding and developing reserves in a timely and cost effective manner.

Assets Under Development

Their primary asset is their KG block in the KG basin off the east coast of Andhra Pradesh, India, which includes the Deen Dayal field. The Deen Dayal Field is a high temperature, high pressure (HTHP) tight and deep gas field with a complex structural/stratigraphic trap involving several separate fault blocks associated with rift geology. One fault block (DDW) has been approved for development, while several other discoveries require further appraisal and study before becoming part of a long term plan for developing the greater field. The development strategy for Deen Dayal West consists of a Well Head Platform (WHP) bridge-linked to a Processing and Living Quarter Platform (PLQP). The Company has appointed reputed project management consultants, to co-ordinate the overall construction and development work for DDW Development Project.

Their future production will be significantly dependent upon their success and timely execution of the FDP for DDW. Further, they also intend to drill additional appraisal wells within the Deen Dayal field in DDE, DDN and DDW Downthrown and, if successful, plan to achieve the declaration of commerciality for these fields, following which they will formulate FDPs for these fields.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	80006012
Corporate identity number of the company	U23209GJ1979SGC003281
Name of the company	GUJARAT STATE PETROLEUM CORPORATION LIMITED
Address of the registered office or of the principal place of business in India of the company	GSPC Bhavan, Behind Udyog Bhavan, Sector-11, Gandhinagar-382011, Gujarat, India
Type of charge	Book Debts Movable Property [not being pledge]
Particular of charge holder	State Bank of India, Corporate Account Group Branch, 58, Shrimali Society, Navrangpura, Ahmedabad-380009, Gujarat, India
Email	sushil.shah@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Joint Deed of Hypothecation executed on 27.09.2011
Date of instrument Creating the charge	27.09.2011
Amount secured by the charge	Rs.20000.000 Millions
Short particulars of the property charged	Pari Passu charge by way of assignment/hypothecation of future receivables of the company excluding those relating to Gujarat Gas Trading Company Limited'
Particulars of the present modification	The Credit facilities is now enhanced from Rs. 12000.000 Millions to Rs. 20000.000 Millions by execution of Joint Deed of Hypothecation of all present and future receivables of the Borrower under specified gas supply contracts on dated 27.09.2011.

FIXED ASSETS:

· Leasehold Land

· Freehold Land

· Building

· Office Equipments

· Computer Equipments

· Vehicles

· Furniture and Fixtures

· Plant and Machinery

· Intangibles (Software)

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 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.53.34
UK Pound	1	Rs.86.11
Euro	1	Rs.69.07

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	BSN

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	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.