MIRA INFORM REPORT

Report Date :

10.09.2013

IDENTIFICATION DETAILS

Name :	INDRAPRASTHA GAS LIMITED
Registered Office :	IGL Bhawan, Plot No. 4, Community Centre, Sector 9, R K Puram, New Delhi - 110022
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	23.12.1998
Com. Reg. No.:	55-097614
Capital Investment / Paid-up Capital :	Rs. 1400.000 millions
CIN No.: [Company Identification No.]	L23201DL1998PLC097614
TAN No.: [Tax Deduction & Collection Account No.]	DELI02753C
PAN No.: [Permanent Account No.]	AAACI5076R
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	The Company is in the retail gas distribution business of supplying Compressed Natural Gas (CNG) and Piped Natural Gas (PNG).
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Aa (76)

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 59700000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track record. Sales and Profit of the company has increased in 2013. Fundamentals of the company appears to be strong and healthy. Rating also takes in consideration profitability and cash generation from operation. Trade relations are fair. Business is active. Payment terms are regular and as per commitment. The company can be considered for business dealing 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.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term Loan : “AAA”
Rating Explanation	Highest degree of safety and lowest credit risk.
Date	14.02.2013

Rating Agency Name	ICRA
Rating	Fund based short term limit : “A1+”
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	14.02.2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	IGL Bhawan, Plot No. 4, Community Centre, Sector 9, R K Puram, New Delhi – 110022, India
Tel. No. :	91-11-46074607
Fax No. :	91-11-26171860 / 26171863 / 26171921
E-Mail :	investors@igl.co.in customercare.cng@igl.co.in customercare.png@igl.co.in
Website :	www.iglonline.net

DIRECTORS

As on 31.03.2013

Name :	Mr. K. K. Gupta
Designation :	Chairman
Name :	Mr. Narendra Kumar
Designation :	Managing Director
Name :	Mr. Rajesh Chaturvedi
Designation :	Director (Commercial)
Name :	Mr. Rajeev Mathur
Designation :	Director
Name :	Mr. Puneet K. Goel
Designation :	Director
Name :	Mr. S.S. Rao
Designation :	Director
Name :	Prof. V. Ranganathan
Designation :	Director
Name :	Mr. Santosh Kumar
Designation :	Director

KEY EXECUTIVES

Name :	Mr. S.K. Jain
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2013

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	63000080	45.00
Sub Total	63000080	45.00
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	63000080	45.00
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	11320467	8.09
Financial Institutions / Banks	1490411	1.06
Central Government / State Government(s)	7000000	5.00
Insurance Companies	7996462	5.71
Foreign Institutional Investors	27079442	19.34
Sub Total	54886782	39.20
(2) Non-Institutions
Bodies Corporate	11299473	8.07
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	8800860	6.29
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	1341414	0.96
Any Others (Specify)	671551	0.48
Non Resident Indians	395660	0.28
Trusts	78230	0.06
Clearing Members	197661	0.14
Sub Total	22113298	15.80
Total Public shareholding (B)	77000080	55.00
Total (A)+(B)	140000160	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	140000160	100.00

BUSINESS DETAILS

Line of Business :

The Company is in the retail gas distribution business of supplying Compressed Natural Gas (CNG) and Piped Natural Gas (PNG).

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Allahabad Bank, 17, Parliament Street, New Delhi - 110001, India

· HDFC Bank Limited, kailash Building, 26, K. G. Marg, New Delhi - 110001, India

· Axis Bank Limited, Ravissance House, GF and FF, 1 Ring Road, Lajpat Nagriv, New Delhi - 110024, India

· ICICI Bank Limited

· IDBI Bank Limited

· State Bank of India

· Kotak Mahindra Bank Limited

· IndusInd Bank Limited

Facilities :

Secured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long term borrowing
Secured term loans from banks	3031.300	3375.000
Total	3031.300	3375.000

Banking Relations :	--
Statutory Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Cost Auditors :
Name :	Chandra Wadhwa and Company Cost Accountants
Promoter venturer:	· GAIL (India) Limited · Bharat Petroleum Corporation Limited

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
220,000,000	Equity Shares	Rs.10/- each	Rs. 2200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
140,000,160	Equity Shares	Rs.10/- each	Rs. 1400.000 Millions

The Company has one class of equity shares having a par value of Rs. 10 each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Reconciliation of the number of shares outstanding at the beginning and at the end of the year:

Particulars	As at 31.03.2013
	Number of shares	(Rs. In millions)
Equity shares:
Shares outstanding at the beginning of the year	140,000,160	1400.000
Shares issued during the year	--	--
Shares bought back during the year	--	--
Shares outstanding at the end of the year	140,000,160	1400.000

Details of shares held by each shareholder holding more than 5% shares:

Particulars	As at 31.03.2013
	Number of shares held	% holding
GAIL (India) Limited	31,500,000	22.50%
Bharat Petroleum Corporation Limited	31,500,080	22.50%
HDFC Standard Life Insurance Company Limited*	7,756,745	5.54%

* HDFC Standard Life Insurance Company Limited was not holding more than 5% shares as at 31.03.2012.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1400.000	1400.000	1400.000
(b) Reserves & Surplus	13529.900	10889.400	8638.600
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	14929.900	12289.400	10038.600
(3) Non-Current Liabilities
(a) long-term borrowings	3031.300	3375.000	2375.000
(b) Deferred tax liabilities (Net)	843.400	627.200	407.700
(c) Other long term liabilities	0.000	0.000	1168.000
(d) long-term provisions	80.400	54.100	43.600
Total Non-current Liabilities (3)	3955.100	4056.300	3994.300
(4) Current Liabilities
(a) Short term borrowings	459.800	515.200	443.400
(b) Trade payables	2115.200	1792.500	1425.700
(c) Other current liabilities	3916.300	3758.700	949.200
(d) Short-term provisions	903.900	815.500	815.100
Total Current Liabilities (4)	7395.200	6881.900	3633.400
TOTAL	26280.200	23227.600	17666.300
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	18422.600	15787.700	11581.400
(ii) Intangible Assets	50.700	8.200	13.100
(iii) Capital work-in-progress	2912.900	3751.300	3272.100
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	58.100	54.000	390.500
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	21444.300	19601.200	15257.100
(2) Current assets
(a) Current investments	1425.900	984.100	416.400
(b) Inventories	396.500	373.800	359.000
(c) Trade receivables	1788.600	1298.000	744.800
(d) Cash and cash equivalents	509.600	319.900	173.100
(e) Short-term loans and advances	596.200	556.100	574.900
(f) Other current assets	119.100	94.500	141.000
Total Current Assets	4835.900	3626.400	2409.200
TOTAL	26280.200	23227.600	17666.300

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	33669.900	25172.600	17461.100
		Other Income	129.000	80.800	74.400
		TOTAL (A)	33798.900	25253.400	17535.500
Less	EXPENSES
		Purchases of natural gas	21977.500	15401.000	9843.000
		Employee benefits expense	567.100	437.200	379.100
		Other expenses	3551.300	3012.800	2303.700
		Decrease/(Increase) in natural gas stock	(7.400)	(9.400)	(7.700)
		TOTAL (B)	26088.500	18841.600	12518.100
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		7710.400	6411.800	5017.400
Less	FINANCIAL EXPENSES (D)		561.900	478.800	131.600
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		7148.500	5933.000	4885.800
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1866.600	1432.100	1028.700
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		5281.900	4500.900	3857.100
Less	TAX (H)		1740.600	1436.600	1259.400
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		3541.300	3064.300	2597.700
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		9406.100	7461.700	5937.300
Less	APPROPRIATIONS
		Proposed dividend	770.000	700.000	700.000
		Corporate dividend tax	130.800	113.500	113.500
		Transferred to general reserve	354.100	306.400	259.800
	BALANCE CARRIED TO THE B/S		11692.500	9406.100	7461.700
	EARNINGS IN FOREIGN CURRENCY
		Sale of tender documents	0.100	0.000	0.100
	TOTAL EARNINGS		0.100	0.000	0.100
	IMPORTS
		Capital goods	216.600	683.000	1548.500
		Spares and components	48.900	49.900	81.700
	TOTAL IMPORTS		265.500	732.900	1630.200
	Earnings / (Loss) Per Share (Rs.)		25.29	21.89	18.55

QUARTERLY RESULTS

PARTICULARS	30.06.2013
Type	1^st Quarter
Net Sales	9027.000
Total Expenditure	7087.800
PBIDT (Excl OI)	1939.200
Other Income	38.100
Operating Profit	1977.300
Interest	128.000
Exceptional Items	0.000
PBDT	1849.300
Depreciation	531.500
Profit Before Tax	1317.800
Tax	442.000
Provisions and contingencies	0.000
Profit After Tax	875.800
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	875.800

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	10.48	12.13	14.81
Net Profit Margin (PBT/Sales)	(%)	15.69	17.88	22.09
Return on Total Assets (PBT/Total Assets}	(%)	22.60	23.11	26.79
Return on Investment (ROI) (PBT/Networth)		0.35	0.37	0.38
Debt Equity Ratio (Total Debt/Networth)		0.23	0.32	0.28
Current Ratio (Current Asset/Current Liability)		0.65	0.53	0.66

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	No
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 involved in	-----
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10375863	27/08/2012	2,000,000,000.00	ALLAHABAD BANK	17, PARLIAMENT STREET, NEW DELHI - 110001, INDIA	B57856767
2	10279907	25/03/2011	3,000,000,000.00	HDFC BANK LIMITED	KAILASH BUILDING, 26, K. G. MARG, NEW DELHI - 110001, INDIA	B10493062
3	10238597	06/09/2010	1,500,000,000.00	AXIS BANK LIMITED	RAVISSANCE HOUSE, GF AND FF, 1 RING ROAD, LAJPAT NAGRIV, NEW DELHI - 110024, INDIA	A94193000
4	10227376	22/06/2010	1,500,000,000.00	AXIS BANK LIMITED	RAVISSANCE HOUSE, GF AND FF, 1 RING ROAD, LAJPAT NAGRIV, NEW DELHI - 110024, INDIA	A88963343

UNSECURED LOANS

Particulars	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. In Millions)
Short term borrowing
Foreign currency loans-Buyers’ credit	459.800	515.200
Total	459.800	515.200

Note:

Short term borrowings

Period of foreign currency loans-Buyers Credit ranges from 318 days to 362 days.

COMPANY OVERVIEW

The Company was incorporated on December 23, 1998 under the Companies Act, 1956. The Company is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The Company is a joint venture between GAIL (India) Limited and Bharat Petroleum Corporation Limited. The Company’s business consists of sale of Natural Gas.

FINANCIAL REVIEW

The Company has been showing consistently good financial performance both in terms of turnover and rofitability. During the year, gross turnover of the Company increased by 33% from Rs. 27901.000 millions in year 2011-12 to Rs. 37240.600 millions in the year 2012-13. Profit after tax also went up by 16% from Rs. 3064.300 millions in 2011-12 to Rs. 3541.300 millions in 2012-13.

PERFORMANCE HIGHLIGHTS

COMPRESSED NATURAL GAS BUSINESS

During the year, the Company augmented its CNG distribution infrastructure by enhancing the capacity of existing stations and adding new stations. The number of stations went up from 308 in March 2012 to 324 in March 2013, which included 276 stations in Delhi and 48 stations in National Capital Region (NCR). The installed compression capacity went up from 59.56 Lakhs Kg/day in March 2012 to 63.82 Lakhs Kg/day in March 2013.

New concept of CNG Station was introduced where all equipments are installed at roof top of canopy due to which more dispensing area is available at forecourt level. One such CNG Station is now in operation at Nanglamachi, Ring Road, New Delhi.

Another first, a CNG integrated compressor package unit, where all compression, dispensing and storage is within an enclosure, has been introduced. This unit requires a very small area and can take CNG refueling to customer premises such as societies, malls, offices, schools, other institutions etc. When used at aforesaid premises, this can help in decongesting the existing CNG stations.

As CNG facilities at OMCs Retail outlets contribute almost 22% of CNG retail business, the Company has entered into agreements for setting up of CNG facilities with all three Public Sector Oil Marketing Companies upto March 2015.

As route buses have gone off the road in FY 2012-2013, the Company has filled the vacuum created by exiting of route buses by executing an agreement with Delhi Integrated Multi Modal Transit System (DIMMTS) for setting up of CNG facilities for Cluster Buses at their depots for a period of ten years i.e. up to the year 2022.

The estimated number of vehicles running on CNG in Delhi and NCR as on March 31, 2013 was over 6,48,000 including 4,20,000 private vehicles.

PIPED NATURAL GAS BUSINESS

PNG - Domestic Connections

A major thrust has been given to the expansion of Piped Natural Gas (PNG) network in Delhi and NCR i.e. Gautam Budh Nagar (Noida, Greater Noida) and Ghaziabad.

The Company has increased its steel pipeline network from 575 kms in FY 2011-12 to 631 kms in FY 2012-13 and MDPE network from 6479 kms in FY 2011-12 to 7783 kms in FY 2012-13.

For PNG domestic connections, Delhi has been divided into 70 areas (each area is equivalent to MLA constituency). The pipeline network is already extended to 63 areas and work is in progress to extend the network to the remaining areas.

During the year, the Company provided 32,322 PNG connections in Delhi and 21,530 PNG connections in NCR and the total number of connections went up from 3,32,844 in March 2012 to 3,86,696 in March 2013. A total of 53,852 domestic PNG connections were added in Financial Year 2012-13.

The Company rolled out a major initiative to upgrade customer services by infusion of technology. You may be aware that in May 2011 customer portal was launched through which domestic PNG customers could register their complaints/service requests online and check the status of the same. The business process of customer acquisition was also integrated into customer portal from August, 2012 onwards. With this development prospective customers are now able to register their PNG connection requests online. The progress of their requests can be viewed online. On completion of process of confirmation of technical feasibility of PNG connection and after customer has made payment for PNG connection, customer can also track progress on customer portal. Further information pertaining to colonywise and city-wise schedule of registrations is made available on the customer portal prospectively. Now all the customer requests for PNG connections received at 24 Hour Customer are or from field marketing teams are also routed throughportal and action taken on such requests is updated on the portal. With these developments the business process of domestic PNG customer acquisition has been made more convenient for the customers. The Company received overwhelming response to this initiative from prospective customers as a large number of them registered their requests online from August 2012 onwards.

PNG – COMMERCIAL AND INDUSTRIAL

The Company has maintained its focus on the Industrial and Commercial segment as one of the potential growth

areas in the forthcoming years. With its concentrated efforts in the year 2012-13, the total number of commercial customers increased from 639 in March 2012 to 964 inMarch 2013 and industrial customers from 223 in March

2012 to 418 in March 2013.

The Company has expanded its pipeline network to some of the major industrial areas of Delhi and NCR i.e. Gautam Budh Nagar (Noida, Greater Noida) and Ghaziabad. Pipeline laying activities are underway in the remaining major industrial areas in NCR which have huge demand potential.

EQUITY PARTICIPATION IN CENT RAL U.P. GAS LIMITED

(CUGL)

As a first step for stepping outside the geographical boundaries of the NCR territory, the Company has recently acquired 50% of the paid-up equity share capital (3,00,00,000 equity shares of Rs. 10 each) of CUGL at a price of Rs. 23 per equity share aggregating to Rs. 69 crores from certain financial investor shareholders of CUGL. CUGL is engaged in City Gas Distribution in the cities of Kanpur and Bareilly in Uttar Pradesh.

FUTURE OUTLOOK

The Company has drawn out plans to further consolidate its presence in Delhi and NCR by investing over Rs. 4000.000 Millions during the financial year 2013-14.

In CNG segment, the fleet of Private Bus Cluster is expected to reach around 1000 buses by the end of 2013-14. The price differential of CNG versus alternate liquid fuel will continue to drive the conversion of petrol driven private vehicles into CNG mode. Introduction of more CNG variant models by car manufacturers will add to CNG sales.

The Company has aggressive plans to expand its pipeline infrastructure to increase the coverage and penetration of the network. Company has taken proactive steps to increase its presence in domestic PNG segment with growth and development of newer parts of Gautam Budh Nagar. Dialogue with builders and developers are going on with an objective to provide PNG facility in upcoming residential projects before new residential units are occupied. This approach will enable the Company to utilize assets better. It shall be the continuous endeavour to expand fast the customer base on both industrial and commercial and domestic fronts.

The pipeline expansion plans have been aligned with development of industrial belts in coming years in NCT of Delhi and NCR cities of Noida, Greater Noida and Ghaziabad. The Company has expanded its pipeline network to some of the new industrial clusters planned under redevelopment guidelines in NCT of Delhi and work is underway to expand the network in the remaining areas which will witness substantial improvement in their infrastructure and facilities. Endeavours will be made to realize full market potential by tapping gas volumes from industries, predominantly Small Scale Industries, which will come up during the redevelopment phase in notified clusters of NCT of Delhi. The Company also has plans to provide PNG supplies to upcoming industrial belts along Delhi Mumbai Railway Freight Corridor in Dadri Noida Ghaziabad Investment Zoneand part of Ludhiana Kolkata freight corridor which will pass through Ghaziabad District.

The Company alongwith Delhi Jal Board (DJB) had signed an MOU to set up a Pilot Project for production of

Compressed Natural Gas (CNG) out of Sewage Treatment Plant (STP) situated at Keshopur, Delhi. Detailed Feasibility Report (DFR) to assess techno-commercial feasibility of the project has been prepared and the same is now under third party evaluation.

MANAGEMENT DISCUSSION AND ANALYSIS

NATURE OF BUSINESS

The Company is in the retail gas distribution business of supplying Compressed Natural Gas (CNG) to transport sector and Piped Natural Gas (PNG) to Domestic, Industrial and Commercial sectors in Delhi and NCR.

CNG is a safe, economical and environment friendly fuel for transport sector. It is replacing traditional fossil fuels of petrol and diesel, as in running cost of the vehicles it is currently around 55% cheaper than petrol and approximately 17% cheaper than diesel.

PNG, the other fuel supplied by the Company is a safe, convenient, environment friendly and reliable fuel for domestic, commercial and industrial consumers. Its demand continues to grow with potential consumers in new areas eagerly awaiting the network to connect them.

NATURAL GAS SCENARIO IN INDIA

In the current scenario, India is emerging as a major LNG market and is likely to be one of the largest importer of LNG in future.

Natural Gas is the cleanest burning conventional fuel and it is an environmental friendly and an efficient source of energy which produces lower levels of greenhouse gas emissions than heavier hydrocarbon fuels such as coal and oil. The role of natural gas is of significant importance in the global gas markets. The last decades have seen a shift in the global energy fuel mix towards an increased role for natural gas.

In India also, the share of natural gas in total energy basket is increasing and the same is expected to grow at a fast pace in the coming years. Natural gas has assumed a larger role in power generation, manufacturing fertilizers, industrial applications, residential heating and in transport fuel as well. Major consumers of natural gas include power and fertilizer sectors, contributing around two-third of the total gas consumption.

Presently, there is a gap between demand and indigenous supply of gas, which is largely met through import of Liquefied Natural Gas (LNG). As far as domestic production is concerned, the supplies from KG basin have shown declining trend in last few years thereby restricting the availability of indigenous gas. In future, India’s natural gas supply mix is expected to be dominated by new domestic fields and LNG imports.

Shale gas is expected to contribute significantly to the world’s energy portfolio in the coming years. Major Indian players are looking for opportunities with respect to shale gas supplies from USA.

The Government on its part has taken various initiatives to assure uninterrupted supply of gas. Moreover, the new

liquefaction projects being planned in Russia, North America, east Africa, Australia are definitely focus areas for meeting India’s growing demand.

The growing demand of natural gas is constrained by a major challenge in terms of price acceptability of LNG by various sectors. The major challenge lies in structuring and tying up LNG which can meet the supplier’s expectation on one side and also meet customer’s price expectations on other side.

CITY GAS DISTRIBUTION IN INDIA

City Gas Distribution (CGD) is one of the growing sectors in the India energy pie and has been accorded a high priority status for allocating gas from domestic supplies. Safety and security concerns have been addressed effectively by CGD Companies, leading to increased consumer confidence and demand.

City Gas Distribution business in India is under the regulatory regime. In 2007, the Petroleum and Natural Gas Regulatory Board (PNGRB) was set up by an Act of Parliament, which apart from other responsibilities also has the mandate of rolling out CGD networks in various cities of the country. The Board has already outlined its vision of setting up of CGD networks in 300 cities of the country in synchronization with commissioning of the gas pipelines. There exists a huge potential for setting up of CGD networks in various cities across the country.

As per the estimates by the Planning Commission for 12th Five-Year Plan, the growth in gas demand in the CGD Sector has been projected very high. The growth may also be driven by possible judicial interventions dictating a switchover from other fuels (because of environmental concerns). The development of new cross country pipeline networks and the addition of LNG terminal capacity will also facilitate CGD growth.

The uninterrupted supply of natural gas at an affordable price will play a crucial role in growth of City Gas Distribution sector in the coming years. Presently, with the limited availability of indigenous gas, CGD Companies are more dependent upon imported gas. However, Government of India is taking various initiatives to give boost to the indigenous production and thereby to reduce the dependence on imported gas.

PERFORMANCE REVIEW - CNG AND PNG

Both CNG and PNG business have performed well during the year 2012-13. On an overall basis, sales volume has shown a growth of around 10% over the previous year.

During the year, CNG sales volume has increased to 1004.92 mmscm from 937.55 mmscm in the previous year and PNG sales volume has increased to 332.83 mmscm from 282.45 mmscm year showing a growth of 7.2% and 17.8% respectively.

The Company has a network of 324 stations for supply of CNG as on March 31, 2013. The estimated number of vehicles using CNG was around 6.5 lakhs in March 2013 and their back-end infrastructure, compression capacity and dispensing outlets are under continuous augmentation to meet the growing demand. The Company has provided PNG connections to 3.86 lakhs domestic and around 1380 commercial and industrial customers as on March 31, 2013.

CONTINGENT LIABILITIES:

(Rs. in millions)

(a) Income tax case

For Assessment Year 2007-08 the Income Tax Department has disallowed certain deduction claimed and raised a demand amounting to Rs. 8.900 millions (Previous Year Rs. Nil). The Company has filed an appeal against the demand which is pending with CIT (Appeal).

(b) Excise Case

The Company offered a discount to Delhi Tranport Corporation (DTC) in relation to facilities provided by DTC and towards bulk sale made to DTC. The Company received a show cause notice dated 5th June 2012 from the Directorate General of Central Excise Intelligence for not paying excise duty on the aforesaid discount amount from December’ 2008 to August’ 2010 and raised a demand of Rs. 24.200 millions. The Company has deposited Rs. 24.200 millions and has contested the demand with Customs and Central Excise Settlement Commission.

(c) Uttar Pradesh VAT Case

In respect of Assessment year 2009-10, Commercial Tax Department, Noida has raised a demand of Rs. 3.400 millions (Previous Year Rs. Nil). The Company has filed appeal against the demand which is pending with Additional Commissioner (Appeals), Commercial Tax, Noida.

(d) Bank guarantees

The Company’s total liability towards un-expired Bank Guarantees is Rs. 603.700 millions (Previous year Rs. 347.900 millions).

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE, 2013

PART I

(Rs. In millions)

Sr. No.	Particulars		Quarter ended 30.06.2013 (Unaudited)
1	Income from operations:
	(a)	Net sales/Income from operations (Net of Excise Duty)	9014.600
	(b)	Other operating income	12.400
	Total income from operations (net)		9027.000
2	Expenses:
	a.	Purchases of natural gas	5957.400
	b.	(Increase)/decrease in stock of natural gas	(02.700)
	c.	Employee benefits expense	146.800
	d.	Depreciation and amortisation expense	531.500
	e.	Other expenses	986.300
	Total expenses		7619.300
3	Profit from operations before other income and finance cost(1-2)		1407.700
4	Other income		38.100
5	Profit before finance costs (3+4)		1445.800
6	Finance costs		128.000
7	Profit before tax (5-6)		1317.800
8	Tax expense		442.000
9	Net profit after tax (7-8)		875.800
10	Paid-up equity share capital (Face value Rs. 10 each)		1400.000
11	Reserves excluding revaluation reserves
12	Basic and diluted earnings per share (in Rs.)		6.26
PART II
A	PARTICULARS OF SHAREHOLDING
1	Public shareholding
	a.	Number of shares	77,000,080
	b.	Percentage of shareholding	55%
2	Promoters and promoter group shareholding
	a.	Pledged/Encumbered
	Number of shares		-
		Percentage of shares (as a % of the total shareholding of	-
		promoter and promoter group)
		Percentage of shares (as a % of the total share capital of	-
		the Company)
	b.	Non-encumbered
	Number of shares		63,000,080
		Percentage of shares (as a % of the total shareholding of	100%
		promoter and promoter group)
		Percentage of shares (as a % of the total share capital of	45%
		the Company)

Particulars	Quarter ended 30.06.2013
B INVESTOR COMPLAINTS (Nos.)
Pending at the beginning of the quarter	Nil
Received during the quarter	8
Disposed of during the quarter	8
Remaining unresolved at the end of the quarter	Nil

NOTES TO UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE, 2013

1.The above results have been reviewed by the Audit Committee and were approved by the Board of Directors in their meeting held on 12^th August, 2013.

2.Petroleum and Natural Gas Regulatory Board (PNGRB) vide its order no. TO/03/2012 dated 9 April 2012 determined the per unit network tariff and compression charge for the City Gas Distribution (CGD) Network of the Company for Delhi, based on submission of data by the Company in May 2009 and certain assumptions taken by PNGRB in this regard. The tariffs determined by PNGRB are much lower than the rates submitted by the Company.

Further, PNGRB made the determined tariffs applicable with retrospective effect from 1 April, 2008. In its order PNGRB has stated that the modalities and time frame for refund of differential Network Tariff and Compression Charge would be decided subsequently.

The Company filed a writ petition on 10 April, 2012 against the order of PNGRB dated 9 April, 2012 before the Hon'ble Delhi High Court. The Hon'ble High Court of Delhi has passed the judgment in this case on 1 June, 2012 and has quashed the PNGRB order dated 9 April, 2012. PNGRB has filed special leave petition before the Hon'ble Supreme Court of India against the order dated 1 June, 2012 of Hon'ble Delhi High Court. Matter is still pending in the Hon'ble Supreme Court of India.

3.During the quarter, the Company has acquired 50% of the paid-up equity share capital (3,00,00,000 equity shares of Rs. 10/-each) of Central U.P. Gas Limited (CUGL) at a price of Rs. 23/- per equity share , aggregating to Rs. 69 crores, from certain financial investor shareholders of CUGL. CUGL is engaged in CGD in the cities of Kanpur and Bareilly in Uttar Pradesh.

4.The figures of the quarter ended 31 March, 2013, are the balancing figures between audited figures in respect of the full financial year and the reviewed published year to date figures upto 31 December,2012, being the date of the end of the third quarter of the financial year.

5.Since the Company operates in a single segment of Natural Gas Business, the disclosure requirements as per Accounting Standard 17 'Segment Reporting' are not applicable to the Company.

6.The statutory auditors have carried out a limited review of the financial results for the three months period ended 30 June, 2013

7.Previous period/year figures have been regrouped/ reclassified wherever necessary.

FIXED ASSETS

v Tangible assets:

· Leasehold land

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Data processing equipment

v Intangible assets:

· Computer software/license

CMT REPORT (Corruption, Money Laundering and 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 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.65.96
UK Pound	1	Rs.102.91
Euro	1	Rs.86.58

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE and 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	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		76

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 and 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.