MIRA INFORM REPORT

Report Date :

09.05.2014

IDENTIFICATION DETAILS

Name :	GAIL GAS LIMITED
Registered Office :	16, Bhikaiji Cama Place, R. K. Puram, New Delhi – 110066
Country :	India
Financials (as on) :	31.03.2013 [PROFIT & LOSS ACCOUNT]
Date of Incorporation :	27.05.2008
Com. Reg. No.:	55-178614
Capital Investment / Paid-up Capital :	Rs.1679.500 Millions
CIN No.: [Company Identification No.]	U40200DL2008GOI178614
PAN No.: [Permanent Account No.]	AADCG1763C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the business of Supplying Piped Natural Gas (PNG) to Domestic and Commercial Sectors and Compressed Natural Gas (CNG) to the Transport Sector in Areas Authorized to them by Petroleum and Natural Gas Regulatory Board (PNGRB).
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

A (62)

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 9100000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of “GAIL INDIA LIMITED”. It is a well-established company having fine track record. The Rating Takes Into consideration sound financial risk profile and fair profitability achieved by the company from its operation. Further rating also takes into consideration managerial and financial support that company receives from its parent company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. In view of strong holding support, the company can be considered good for normal business dealings at usual trade terms and conditions. NOTE: Balance sheet for the year 2013 is not made available from government department.

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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Proposed Bond Issue=AA
Rating Explanation	High degree of safety and very low credit risk.
Date	25.04.2014

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.

INFORMATION DENIED

Management Non Co-operative (91-11-26172580)

LOCATIONS

Registered Office :	16, Bhikaiji Cama Place, R. K. Puram, New Delhi – 110066, India
Tel. No.:	91-11-26172580
Fax No.:	Not Available
E-Mail :	gailgas@gail.co.in gailgashelpline@gail.co.in preetiaggarwal@gail.co.in
Website :	www.gail.co.in
Corporate Office :	A-1, Sector-2, Noida, Uttar Pradesh, India
Tel. No.:	91-120-2532266
Site Offices :	Located at: · Meerut · Dewas · Sonepat · Kota · Agra · Vadodara · Kochi · Bangalore

DIRECTORS

AS ON 20.09.2013

Name :

Mr. Bhuwan Chandra Tripathi

Designation :

Director

Date of Birth/Age :

12.01.1960

Date of Appointment :

27.05.2008

DIN No.:

01657366

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L40200DL1984GOI018976	GAIL (INDIA) LIMITED	Managing director	01/08/2009	06/07/2007	-	Active	NO
2	U23201TR1990SGC003451	TRIPURA NATURAL GAS CO LTD	Nominee director	05/02/2008	05/02/2008	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	08/08/2008	08/08/2008	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	01/02/2009	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	03/07/2009	27/05/2013	Active	NO
10	U11101AS2007GOI008290	Brahmaputra Cracker and Polymer Limited	Director	09/09/2009	01/08/2009	-	Active	NO

Name :

Mr. Prabhat Singh

Designation :

Director

Date of Birth/Age :

03.11.1956

Date of Appointment :

06.09.2011

DIN No.:

03006541

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L40200DL1984GOI018976	GAIL (INDIA) LIMITED	Whole-time director	22/09/2010	24/02/2010	-	Active	NO
2	U40107MP2006PLC018684	AAVANTIKA GAS LIMITED	Nominee director	23/09/2010	30/03/2010	30/12/2010	Active	NO
3	U40105DL2005PTC138458	RATNAGIRI GAS AND POWER PRIVATE LIMITED	Director	24/09/2010	20/04/2010	-	Active	NO
4	U40200DL2008GOI178614	GAIL GAS LIMITED	Director	06/09/2011	11/10/2010	-	Active	NO

Name :

Mr. Premesh Kumar Jain

Designation :

Director

Date of Birth/Age :

15.04.1955

Date of Appointment :

27.05.2008

DIN No.:

02145534

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U40200DL2008GOI178614	GAIL GAS LIMITED	Director	27/05/2008	27/05/2008	Active	NO
2	L40200DL1984GOI018976	GAIL (INDIA) LIMITED	Whole-time director	07/09/2011	01/03/2011	Active	NO
3	U11101AS2007GOI008290	Brahmaputra Cracker and Polymer Limited	Director	29/07/2011	07/03/2011	Active	NO

Name :

Mr. Ashutosh Karnatak

Designation :

Director

Date of Birth/Age :

07.06.1960

Date of Appointment :

09.09.2010

DIN No.:

03267102

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U40200DL2008GOI178614	GAIL GAS LIMITED	Director	09/09/2010	22/07/2010	Active	NO
2	L40200DL1984GOI018976	GAIL (INDIA) LIMITED	Additional director	01/03/2014	01/03/2014	Active	NO

Name :

Mr. Prafulla Kumar Gupta

Designation :

Director

Date of Birth/Age :

14.03.1961

Date of Appointment :

20.09.2013

DIN No.:

01237706

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U40200MH1995PLC088133	MAHANAGAR GAS LIMITED	Managing director	29/09/2009	29/09/2006	21/04/2010	Active	NO
2	U40200AP2003PLC041566	BHAGYANAGAR GAS LIMITED	Nominee director	08/08/2011	07/03/2011	25/02/2014	Active	NO
3	U40200DL2008GOI178614	GAIL GAS LIMITED	Director	20/09/2013	02/04/2013	-	Active	NO
4	U40105DL2005PTC138458	RATNAGIRI GAS AND POWER PRIVATE LIMITED	Director	21/03/2014	21/03/2014	-	Active	NO

Name :

Mr. Lajpat Rai Gupta

Designation :

Director

Date of Birth/Age :

05.11.1954

Date of Appointment :

20.09.2013

DIN No.:

06554633

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U40200DL2008GOI178614	GAIL GAS LIMITED	Director	20/09/2013	02/04/2013	Active	NO

Name :

Mr. Nikunj Kumar Srivastav

Designation :

Director

Date of Birth/Age :

15.01.1973

Date of Appointment :

20.09.2013

DIN No.:

02008508

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U60221MP2006SGC018805	BHOPAL CITY LINK LIMITED	Director	11/01/2008	11/01/2008	Active	NO
2	U17124MP2008PTC020601	CLC TEXTILE PARK PRIVATE LIMITED	Nominee director	28/08/2009	28/08/2009	Active	NO
3	U40200DL2008GOI178614	GAIL GAS LIMITED	Director	20/09/2013	26/06/2013	Active	NO
4	U11101AS2007GOI008290	Brahmaputra Cracker and Polymer Limited	Additional director	30/08/2013	30/08/2013	Active	NO

KEY EXECUTIVES

Name :	Ms. Preeti Aggarwal
Designation :	Secretary
Date of Birth/Age :	13.03.1978
Date of Appointment :	27.03.2009
PAN No.:	AANPG3779M

MAJOR SHAREHOLDERS

AS ON 20.09.2013

Names of Shareholders	No. of Shares
Sunil Prasad Sharma Jointly with Gail (India) Limited	1
Rattan Chand Arora Jointly with Gail (India) Limited	1
Sardar Singh Patel Jointly with Gail (India) Limited	1
Gail (India) Limited	254351265
Madan Mohan Mandal Jointly with Gail (India) Limited	1
Premesh Kumar Jian Jointly with Gail (India) Limited	1
Jitendra Wason Jointly with Gail (India) Limited	1

Equity Share Break up (Percentage of Total Equity)

AS ON 20.09.2013

Category	Percentage
Government Companies	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of Supplying Piped Natural Gas (PNG) to Domestic and Commercial Sectors and Compressed Natural Gas (CNG) to the Transport Sector in Areas Authorized to them by Petroleum and Natural Gas Regulatory Board (PNGRB).

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

Union Bank of India, Palika Bhavan, R.K. Puram, Moti Bagh Branch, New Delhi – 110066, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Term Loans from Banks (Secured against all assets of four Authorised cities of Dewas, Kota, Meerut and Sonepat Against total sanctioned amount of Rs.1420.000 Millions)	262.500	150.000
Term Loans from Others (Corporate Guarantee of Gail India Limited)	994.000	744.100
Total	1256.500	894.100

Banking Relations :	--
Financial Institution :	Oil Industry Development Board, 301, World Trade Centre, Babar Road, New Delhi – 110001, India
Auditors :
Name :	A.K.G and Associates Chartered Accountants
Address :	11 CSC, A Block DDA, Market Saraswati Vihar
PAN No.:	AACFA4827B
Joint venture :	Andhra Pradesh Gas Distribution Corporation Limited
Holding company :	Gail (India) Limited
Associate Company :	· Mahanagar Gas Limited · Indraprastha Gas Limited · Petronet LNG Limited · Bhagyanagar Gas Limited · Tripura Natural Gas Corporation Limited · Central UP Gas Limited · Green Gas Limited · Maharastra Natural Gas Limited · Ratnagiri Gas and Power Private Limited · Avantika Gas Limited · Shell Compressed Natural Gas · Gujurat State Electricity Generation Limited · National Gas Company Natural Gas · Fayum Gas Company · China Gas Holding Limited · GAIL China Gas Global Energy Holding Limited · ONGC Petro Additions Limited (OPAL)
Subsidiary company :	Kerala Gail Gas Limited
Fellow Subsidiary Company :	· Gail Global (Singapore) Pte Limited · Brahmaputra Cracker and Polymer Limited

CAPITAL STRUCTURE

AS ON 20.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
300000000	Equity Shares	Rs.10/- each	Rs.3000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
254351265	Equity Shares	Rs.10/- each	Rs.2543.513 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
200000000	Equity Shares	Rs.10/- each	Rs.2000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
167950000	Equity Shares	Rs.10/- each	Rs.1679.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1,679.500	1,171.700
(b) Reserves & Surplus	55.400	(28.000)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	543.500	187.800
Total Shareholders’ Funds (1) + (2)	2,278.400	1,331.500
(3) Non-Current Liabilities
(a) long-term borrowings	1,256.500	894.100
(b) Deferred tax liabilities (Net)	5.800	0.000
(c) Other long term liabilities	230.000	37.800
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	1,492.300	931.900
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	265.100	17.800
(c) Other current liabilities	549.700	365.500
(d) Short-term provisions	22.600	0.000
Total Current Liabilities (4)	837.400	383.300
TOTAL	4,608.100	2,646.700
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1,992.900	521.400
(ii) Intangible Assets	38.600	42.200
(iii) Capital work-in-progress	1,682.800	1,709.700
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	50.300	0.000
(c) Deferred tax assets (net)	0.000	33.400
(d) Long-term Loan and Advances	32.400	29.900
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	3,797.000	2,336.600
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	51.600	28.900
(c) Trade receivables	327.500	27.800
(d) Cash and cash equivalents	191.800	169.600
(e) Short-term loans and advances	234.700	80.300
(f) Other current assets	5.500	3.500
Total Current Assets	811.100	310.100
TOTAL	4,608.100	2,646.700

NOTE: Balance sheet for the year 2013 is not made available from government department.

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	7,260.900	2,869.600	293.700
		Other Income	19.800	20.500	2.000
		TOTAL (A)	7,280.700	2,890.100	295.700
Less	EXPENSES
		Cost of Materials Consumed	6,454.500	2,511.600	231.200
		Other Expenses	329.400	179.800	76.000
		Prior Period Items	(1.600)	0.400	0.000
		TOTAL (B)	6,782.300	2,691.800	307.200
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		498.400	198.300	(11.500)
Less	FINANCIAL EXPENSES (D)		58.100	24.700	1.000
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		440.300	173.600	(12.500)
Less	DEPRECIATION/ AMORTISATION (F)		92.200	51.100	8.200
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		348.100	122.500	(20.700)
Less	TAX (H)		78.700	39.100	(31.800)
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		269.400	83.400	11.100
	Earnings Per Share (Rs.)		1.33	0.58	0.18

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	3.70	2.89	3.75
Net Profit Margin (PBT/Sales)	(%)	4.79	4.27	-7.05
Return on Total Assets (PBT/Total Assets}	(%)	NA	4.26	-2.29
Return on Investment (ROI) (PBT/Networth)		NA	0.05	-0.02
Debt Equity Ratio (Total Debt /Networth)		NA	0.55	0.67
Current Ratio (Current Asset/Current Liability)		NA	0.97	0.81

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012
	Rs. In Millions	Rs. In Millions
Share Capital	1171.700	1679.500
Reserves & Surplus	(28.000)	55.400
Net worth	1143.700	1734.900
long-term borrowings	894.100	1256.500
Short term borrowings	0.000	0.000
Total borrowings	894.100	1256.500
Debt/Equity ratio	0.782	0.724

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	293.700	2,869.600	7,260.900
		877.051	153.028

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	293.700	2,869.600	7,260.900
Profit	11.100	83.400	269.400
	3.78%	2.91%	3.71%

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	Yes
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

BUSINESS STRATEGY AND INITIATIVES:

Subject was incorporated with the objective of focused implementation of City Gas Distribution (CGD) projects in the country. Subject is serving the retail sector of Natural Gas (NG) business by supplying green and clean fuel i.e. CNG to the transport sector and PNG to domestic and commercial sector. It aims to be the leading company in India in implementing CGD Projects in a large number of cities. In achieving this objective, Subject will go ahead by implementing CGD Projects either independently or through the Joint Ventures to be formed with the State Governments and various other strategic players. Subject is committed to building on gas distribution network, providing safe and reliable operations and delivering excellence in the areas of operation. Subject is developing a culture of high performance to deliver continuous improvement to the customers, employees and shareholders. Subject is also committed to achieve the standards of service benchmarked to the best in the World whilst complying its regulatory obligations.

Subject has signed a Joint Venture Agreement with Vadodara Mahanagar Sewa Sadan (VMSS) for formation of Joint Venture Company (JVC) to carry forward the ongoing CNG business in city of Vadodara and augment the infrastructure to implement CGD project in the city. Subject has formed a Joint Venture Company Kerala GAIL Gas Limited with Kerala State Industrial Development Corporation (KSIDC) and has equity participation in Andhra Pradesh Gas Distribution Corporation Limited with Andhra Pradesh Gas Infrastructure Corporation Private Limited.

In first round of bidding process of Petroleum and Natural Gas Regulatory Board (PNGRB), Subject has been authorized to implement CGD projects in four cities, namely, Sonepat, Kota, Dewas and Meerut. Subject has already laid 215 Km steel pipeline and 370 Km MDPE pipeline in these cities. Subject is operating 1 CNG station each at Dewas, Kota, Meerut and Sonepat. Subject has also established CNG stations at Panvel, Vijaipur and three stations at Vadodara. Subject is supplying natural gas to 67 industrial units in Kota, Dewas, Sonepat and Meerut. Subject has also commenced gas supplies to 1891 domestic customers progressively. Subject has taken up investment for setting up infrastructure along the national highways for building Green Corridors. To encourage the conversion of vehicles on CNG and make CNG refueling available at highways, Subject has commissioned 2 CNG stations and 3 stations are scheduled to be commissioned in 2012 to 2013.

The marketing activities of Subject are progressing well. About 106 Industrial Customers, 38 Commercial and 15,000 domestic consumers have been tied up. In the current year, Subject intends to significantly increase the gas supplies to various consumer segments in the operational areas.

Effective from 16.11.2011, the holding Company, GAIL (India) Limited transferred the entire distribution network and business in the Agra and Firozabad area to GAIL Gas Ltd. As a consequence, Subject is now handling 347 customers in the region for daily sales amounting to more than 1.16 MMSCMD.

FUTURE OUTLOOK:

Subject operates in the energy sector which is a very vital component of the economy. Energy powers every productive activity in the economy, be it agriculture, infrastructure, manufacturing or services sector. The demand for energy is growing at a rate that is much higher than the growth rate of the economy. India's energy consumption is 6% of total world consumption indicating significant growth potential in the future.

The principal business of Subject is distribution of natural gas in the form of PNG and CNG which in itself is a cleaner fuel and helps in reducing the pollution levels as compared to other fossils fuels.

SUBSIDIARIES / JOINT VENTURES/ASSOCIATES:

Kerala GAIL Gas Limited

Kerala GAIL Gas Limited, a Joint Venture between GAIL Gas Limited and Kerala State Industrial Development Corporation was incorporated on 22nd November 2011 with an objective to promote city gas distribution activities throughout Kerala State. The company intends to supply environment friendly, economical and convenient fuel i.e. compressed natural gas (CNG) to vehicles and piped natural gas (PNG) to households, commercial establishments and industries.

Subject has an initial authorized share capital of Rs. 10 Crore. GAIL Gas Limited will hold 26 per cent equity in Subject while KSIDC will have 24 per cent. The balance 50 per cent equity has been kept for strategic partners, financial institutions and other private/public participants.

Andhra Pradesh Gas Distribution Corporation Limited (APGDC)

Andhra Pradesh Gas Distribution Corporation Ltd (APGDC) was incorporated on 10.01.2011 as a wholly owned subsidiary of APGIC to take up the activities for Gas Distribution in Andhra Pradesh. Subject signed a Share Holders Agreement (SHA) with Andhra Pradesh Gas Infrastructure Corporation Limited (APGIC) and Andhra Pradesh Gas Distribution Corporation Limited (APGDC) in September 2011 to pursue city gas distribution opportunities in the state. GAIL Gas and APGIC hold 25 per cent equity each in APGDC. The balance 50 per cent equity has been kept for strategic partners, financial institutions and other private/public participants

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10402171	14/01/2013	200,000,000.00	OIL INDUSTRY DEVELOPMENT BOARD	301, WORLD TRADE CENTRE, BABAR ROAD, NEW DELHI, DELHI - 110001, INDIA	B67770602
2	10235577	11/08/2010	1,420,000,000.00	UNION BANK OF INDIA	PALIKA BHAWAN, R.K. PURAM, MOTI BAGH BRANCH, NEW DELHI, DELHI - 110066, INDIA	A92799519

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Office Equipment

· Computer

· Vehicles

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 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.59.99
UK Pound	1	Rs.101.75
Euro	1	Rs.83.48

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	KRN
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		62

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.