MIRA INFORM REPORT

Report No. :	303901
Report Date :	22.01.2015

IDENTIFICATION DETAILS

Name :	GAIL (INDIA) LIMITED
Registered Office :	16, Bhikaji Cama Place, R. K. Puram, Ring Road, New Delhi – 110 066
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	16.08.1984
Com. Reg. No.:	55-018976
Capital Investment / Paid-up Capital :	Rs.12684.800 Millions
CIN No.: [Company Identification No.]	L40200DL1984GOI018976
TAN No.: [Tax Deduction & Collection Account No.]	DELG00179E
PAN No.: [Permanent Account No.]	AAACG1209J
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Processor and Distributors of Natural Gas.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Aa (73)

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 77000000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established and reputed company of Government of India having excellent track record. It has been awarded a Maharatna Status. There appears increase in the sales turnover during 2014. Financial position of the company appears to be sound. Liquidity position is strong. Trade relations are fair. Business is active. Payment terms are regular and as per commitments. The company can be considered good for business dealings 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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long Term Rating = AAA
Rating Explanation	Highest degree of safety and carry lowest credit risk.
Date	17.10.2014

Rating Agency Name	ICRA
Rating	Short Term Rating = A1+
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	17.10.2014

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 31-03-2014.

INFORMATION DECLINED BY

Name :	Mr. Subir
Designation :	Chief Executive Officer
Contact No.:	91-11-26172580
Date :	17.01.2015

LOCATIONS

Registered Office / Corporate Office :	16, Bhikaji Cama Place, R. K. Puram, Ring Road, New Delhi – 110 066, India
Tel. No.:	91-11-26182955 / 26172580
Fax No.:	91-11-26185941
E-Mail :	info@gail.nic.in vivek@gail.co.in hrm@gail.co.in nknagpal@gail.co.in
Website :	http://www.gail.nic.in http://www.gailonline.com
Factory :	· U P Petrochemical Complex, Pata, P.O. Pata – 206 241, District Auraiya, Uttar Pradesh, India · LPG Recovery Plant, Usar, P.O. Malyan – 402 203 Taluka Alibagh District Raigad, Maharashtra, India · LPG Recovery Plant, Vijaipur, GAIL Complex Vijaipur – 473 112, District Guna, Madhya Pradesh, India · LPG Recovery Plant, Vaghodia, GIDC Industrial Estate Vaghodia – 391 760 District Baroda, Gujarat, India · LPG Recovery Project, Gandhar, Village Rozantankaria, Taluka AMOD District Bharuch – 392 140, Gujarat, India
Zonal Office:	Located at: · Delhi · Chandigarh · Jaipur · Mumbai · Bhopal · Hyderabad · Bangalore · Kochi · Chennai · Kolkata · Lucknow

DIRECTORS

As on 31.03.2014

Name :	Mr. B.C. Tripathi
Designation :	Chairman and Managing Director
DIN No.:	01657366
Name :	Mr. Prabhat Singh
Designation :	Director (Marketing)
DIN No.:	03006541
Name :	Mr. S. Venkatraman
Designation :	Director (Business Development)
DIN No.:	03039646
Name :	Mr. P. K. Jain
Designation :	Director (Finance)
DIN No.:	02145534
Name :	Mr. M. Ravindran
Designation :	Director (Human Resources)
DIN No.:	02309551
Name :	Dr. Ashuotsh Karnatak
Designation :	Director (Projects) (w.e.f. 01.03.2014)
DIN No.:	03267102
Name :	Mr. Rajive Kumar
Designation :	Director
DIN No.:	06620110
Name :	Mrs. Shyamala Gopinath
Designation :	Director
DIN No.:	02362921
Name :	Dr. A. K. Khandelwal
Designation :	Director
DIN No.:	00005619
Name :	Mr. R.D. Goyal
Designation :	Director (Projects) (upto 28.02.2014)
Name :	Mr. Arun Agarwal
Designation :	Director (upto 23.02.2014)
Name :	Mr. P. K. Singh
Designation :	Director
DIN No.:	03266262

KEY EXECUTIVES

Name :	Mr. Subir
Designation :	Chief Executive Officer
Name :	Mr. N.K. Nagpal
Designation :	Company Secretary
Audit Committee:	Shyamala Gopinath- Chairperson Prabhat Singh Dr. A K Khandelwal
Business Development and Marketing Committee:	Shyamala Gopinath- Chairperson Prabhat Singh S. Venkatraman P. K. Jain Dr. A.K. Khandelwal
Corporate Social Responsibility Committee:	B.C. Tripathi- Chairman M. Ravindran Shyamala Gopinath Dr. A. K. Khandelwal
Empowered Contracts and Procurement Committee:	CMD and all the Functional Directors. CMD is the Chairman of the Committee
Empowered Committee (Natural Gas, LNG and Polymers):	B.C. Tripathi – Chairman Prabhat Singh S. Venkatraman P. K. Jain
Finance Committee:	Shyamala Gopinath – Chairperson P. K. Jain Dr. A. K. Khandelwal
H.R. Committee:	B.C. Tripathi – Chairman All the Functional Directors Dr. A K Khandelwal
Project Appraisal Committee:	B.C. Tripathi – Chairman P. K. Jain Concerned Functional Director
Nomination and Remuneration Committee:	Dr. A K Khandelwal – Chairman Rajive Kumar Shyamala Gopinath
Stakeholders Relationship Committee:	Shyamala Gopinath – Chairperson Prabhat Singh M. Ravindran
Stakeholders' Grievance Redressal Committee:	Dr. A K Khandelwal - Chairperson Concerned Functional Director not involved w.r.t. subject disputes
Sustainable Development Committee:	S Venkatraman – Chairman Prabhat Singh P. K. Jain M. Ravindran Dr. Ashutosh Karnatak

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2014

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government / State Government(s)	711733651	57.04
Sub Total	711733651	57.04
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	711733651	57.04
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	20413072	1.64
Financial Institutions / Banks	20341037	1.63
Central Government / State Government(s)	91888984	7.36
Insurance Companies	123622949	9.91
Foreign Institutional Investors	250848075	20.10
Sub Total	507114117	40.64
(2) Non-Institutions
Bodies Corporate	6475611	0.52
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	19294986	1.55
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1043546	0.08
Any Others (Specify)	2114421	0.17
Trust & Foundation	1321073	0.11
Non Resident Indians	793348	0.06
Sub Total	28928564	2.32
Total Public shareholding (B)	536042681	42.96
Total (A)+(B)	1247776332	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	20701068	0.00
Sub Total	20701068	0.00
Total (A)+(B)+(C)	1268477400	0.00

BUSINESS DETAILS

Line of Business :

Processor and Distributors of Natural Gas.

Products :

ITC Code	Product Description
27112100	Natural Gas
27111900	LPG
390120	Polyethelene
2711200	Propane

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

Information declined by the management.

Bankers :

· State Bank of India, Corporate Accounts Group, Branch Jawahar Vyapar Bhavan, 11th and 12th Floors, Tolstoy Marg, New Delhi – 110 001, India

· ICICI Bank Limited, 9A, Phelps Building, Connaught Place, New Delhi - 110 001, India

· HDFC Bank Limited, 1st Floor, Kailash Building, 26, Kasturba Gandhi Marg, New Delhi - 110 001, India

Facilities :

Secured Loan	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long-term Borrowings
BONDS Bonds Series – I (6.10% Secured Non-convertible redeemable Bonds -Series - I are redeemable in 5 equal installment commencing from the end of the 8th year upto the end of the 12th year from the deemed date of allotment August 22, 2003.) (Bonds are secured on pari pasu basis, by charge on freehold non agricultural land at village Tandalja, Vadodra together with the entire building constructed thereon both present and future and whole of plant and machinery , spares, tools and accessories and other movables of the company pertaining to its projects at LPG Vaghodia Plant, Hazira Plant, Grep Vaghodia Plant, Gandhar Plant and Vadodara plant both present and future and whether installed or not and lying or in store)	1000.000	2000.000
Bonds 2010 Series – I (8.80% Secured Non-convertible redeemable Bonds 2010 -Series - I are redeemable in 4 equal installment commencing from the end of the 7th year upto the end of the 10th year from the deemed date of allotment December 13, 2010 with a call option at the end of the 7th year).(Bonds are secured on pari pasu basis, by charge on freehold non agricultural land at village Tandalja, Vadodra together with the entire building constructed thereon both present and future and whole of plant and machinery , spares, tools and accessories and other movables of the company pertaining to its projects at Vijaipur Dadri Pipeline Projects excluding compressor stations at Vijaipur both present and future and whether installed or not and lying or in store)	5000.000	5000.000
Bond series 2012 (9.14% Secured Non-convertible redeemable Bonds 2012 -Series - I are redeemable in 4 equal installment commencing from the end of the 5th year upto the end of the 8th year from the deemed date of allotment June 11, 2012 with a call option at the end of the 5th year). (Bonds are secured on pari pasu basis, by charge on freehold non agricultural land at village Tandalja, Vadodra together with the entire building constructed thereon both present and future and whole of plant and machinery, spares, tools and accessories and other movables of the company pertaining to its projects at Vijaipur Dadri Pipeline Projects excluding compressor stations at Vijaipur both present and future and whether installed or not and lying or in store)	7500.000	7500.000
(b) TERM LOANS
From Banks : Loan from HDFC Bank (Secured by way of first pari-passu charge on all the movable fixed assets, including whole pipeline, spur lines, plant and machinery, spares, equipments, tools and accessories and other movables both present and future, whether now lying loose or in cases or which are now lying or stored in or whether in the course of transit or on high seas, of the Dahej - Vijaypur Phase-II Pipeline project of the Borrower) excluding the plant and Machinery of compressor station at Jhabua and Vijaipur ) Repayable within a period of 12 years from the date of first disbursement by equal half yearly instalments starting 6 months after the completion of 2 years moratorium period from 05.05.2013.	9000.000	6750.000
From Other Parties : Oil Industry Development Board (Secured by way of first charge on whole pipeline, spur lines, plant and machinery, spares, equipments, tools and accessories and other movables both present and Future, whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shall hereinafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about the Borrower's project of Chainsa-Jhajjar-Hissar Pipeline including spur lines or wherever else the same may be or be held by any party to the order or disposition of the borrower or in the course of transit or on high seas or on order or delivery, howsoever or wheresoever in the possion of borrwer and either by way of substitution or addition). Repayable in four equal instalments after expiary of moratorium of one year from the date of disbursement. Loan disbursed in installment from July 2009 to March 2011 with rate of interest from 6.74% to 8.31% p.a. depending on date of disbursement.	1210.000	3585.000
Oil Industry Development Board Oil Industry Development Board (Secured by way of first charge on whole pipeline, spur lines, plant and machinery, spares, equipments, tools and accessories and other movables both present and Future, whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shall hereinafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about the Borrower’s project of Dadri– Bawana--Nangal Pipeline including spur lines or wherever else the same may be or be held by any party to the order or disposition of the borrower or in the course of transit or on high seas or on order or delivery, howsoever or wheresoever in the possession of borrower and either by way of substitution or addition) Repayable in four equal instalments after expiary of moratorium of one year from the date of disbursement. Loan disbursed in installment from July 2011 to March 2013 with rate of interest from 8.50% to 8.98% p.a. depending on date of disbursement.	12050.000	9962.500
Oil Industry Development Board (Secured by way of first charge on whole pipeline, spur lines, plant and machinery, spares, equipments, tools and accessories and other movables both present and Future, whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shall hereinafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about the Borrower’s project of Dahej Vijaipur Pipeline-II including spur lines or wherever else the same may be or be held by any party to the order or disposition of the borrower or in the course of transit or on high seas or on order or delivery, howsoever or wheresoever in the possession of borrower and either by way of substitution or addition) Repayable in four equal instalments after expiary of moratorium of one year from the date of disbursement. Loan disbursed in installment from Nov 2013 to March 2014 with rate of interest from 8.94% to 9.27% p.a. depending on date of disbursement.	4750.000	0.000
Total	40510.000	34797.500

Banking Relations :
Statutory Auditors :
Name :	· G.S. Mathur and Company Chartered Accountants, · M. L. Puri and Company Chartered Accountant, New Delhi
Cost Auditors :	· Rohit and Associates Cost Accountant, Vadodara · R. Nanabhoy and Company Cost Accountants, Mumbai · M. Goyal and Company Cost Accountant, Jaipur · Chandra Wadhwa and Company Cost Accountants, New Delhi · Dhananjay V. Joshi and Associates Cost Accountant, Pune · DGM and Associates Cost Accountants, Guwahati · Mani and Company Cost Accountants, Kolkata · K. L. Jaisingh and Company Cost Accountants, Noida
Memberships :	--
Collaborators :	--
Subsidiary Companies:	· GAIL Global (Singapore) Pte Limited Wangz Business Centre, # 44-01 Suntec Tower One, 7, Temasek Boulevard, Singapore – 038987 · Brahmaputra Cracker and Polymer Limited Hotel Brahmaputra Ashok, M.G. Road, Guwahati, Assam-781001 · GAIL Gas Limited 16, Bhikaiji Cama Place, R.K. Puram, New Delhi – 110066 GAIL Global (USA) Inc. 333 Clay Street, Suite 3300, Houston, Texas 77002, USA · GAIL Global (USA) LNG LLC 1675 South State Street, Suite - B, Dover Delaware - 19901, USA
Joint Venture Companies/Associates:	· Mahanagar Gas Limited · Indraprastha Gas Limited · Petronet LNG Limited · Bhagyanagar Gas Limited · Tripura Natural Gas Corporation Limited · Central UP Gas Limited · Green Gas Limited · Maharashtra Natural Gas Limited · Avantika Gas Limited · GAIL China Gas Global Energy Holding Limited. · ONGC Petro additions Limited (OPAL) · Gujrat State Energy Generation Limited · National Gas Company "Nat Gas" · Fayum Gas Company · China Gas Holdings Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000000	Equity Shares	Rs.10/- each	Rs. 20000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1268477400	Equity Shares	Rs.10/- each	Rs. 12684.800 Millions

Details of Shareholders holding more than 5% shares in the company

Particulars	No. of Shares	% Holding
Equity shares of Rs.10/- each fully Paid Up
President of India (Promoter)	711733651	56.11%
Life Insurance Corporation of India	95906319	7.56%

The Company has only one class of equity shares having a par value Rs.10/- per share. The holders of the equity shares are entitled to receive dividends as declared from time to time and are entitled to voting rights proportionate to their share holding at the shareholders meetings.

17725920 shares are held in the form of Global Depository Receipts.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	12684.800	12684.800	12684.800
(b) Reserves & Surplus	258038.500	229593.200	203573.500
(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)	270723.300	242278.000	216258.300
(3) Non-Current Liabilities
(a) long-term borrowings	95260.900	81407.800	48893.500
(b) Deferred tax liabilities (Net)	25663.700	23000.600	17686.400
(c) Other long term liabilities	7711.700	6650.700	2766.300
(d) long-term provisions	4040.400	3595.800	3377.700
Total Non-current Liabilities (3)	132676.700	114654.900	72723.900
(4) Current Liabilities
(a) Short term borrowings	0.000	2237.400	0.000
(b) Trade payables	39748.300	31037.600	25099.300
(c) Other current liabilities	40475.400	42081.200	36547.900
(d) Short-term provisions	14489.600	14352.800	10882.400
Total Current Liabilities (4)	94713.300	89709.000	72529.600
TOTAL	498113.300	446641.900	361511.800
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	207280.200	189875.500	155612.800
(ii) Intangible Assets	7486.100	7199.000	2963.400
(iii) Capital work-in-progress	97278.500	89778.200	79424.500
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	41030.000	36800.500	26719.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	25351.200	25914.900	31745.100
(e) Other Non-current assets	7184.100	6731.900	2721.100
Total Non-Current Assets	385610.100	356300.000	299185.900
(2) Current assets
(a) Current investments	0.000	389.500	95.900
(b) Inventories	22547.600	15353.300	14197.400
(c) Trade receivables	28119.900	25513.400	19044.800
(d) Cash and cash equivalents	26509.800	23579.400	9313.300
(e) Short-term loans and advances	35143.600	25558.600	19662.300
(f) Other current assets	182.300	147.700	12.200
Total Current Assets	112503.200	90541.900	62325.900
TOTAL	498113.300	446841.900	361511.800

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	575079.300	475226.900	404407.600
	Other Income	8985.200	7645.100	6483.800
	TOTAL (A)	584064.500	482872.000	410891.400
Less	EXPENSES
	Cost of Materials Consumed	48434.300	29686.800	24941.000
	Purchases of Stock-in-Trade	412344.200	333968.900	284404.600
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(6268.600)	(569.800)	(4977.500)
	Employees benefits expense	8477.300	7854.500	6,502.900
	Other expenses	45080.200	39594.300	37548.600
	Exceptional items	-3449.500
	TOTAL (B)	504617.900	410534.700	348419.600
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	79446.600	72337.300	62471.800
Less	FINANCIAL EXPENSES (D)	3661.900	1950.200	1164.600
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	75784.700	70387.100	61307.200
Less/ Add	DEPRECIATION/ AMORTISATION (F)	11761.500	9809.400	7,907.100
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	64023.200	60577.700	53400.100
Less	TAX (I)	20270.500	20355.700	16861.700
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	43752.700	40222.000	36538.400
Less	APPROPRIATIONS
	Interim dividend	5710.000	5070.000	3810.000
	Proposed final dividend	7480.000	7100.000	7230.000
	Corporate dividend tax	2240.000	2030.000	1790.000
	Net transfer to/from bond redemption reserve	(59.400)	(4.300)	(240.000)
	Transfer to CSR reserve	178.700	131.300	0.000
	Transfer to general reserve	4380.000	4020.000	3650.000
	Balance Carried to the B/S	23823.400	21875.000	20298.400
	EARNINGS IN FOREIGN CURRENCY
	Sales	1702.000	0.000	0.000
	Others (including tender fee)	398.100	320.200	88.500
	TOTAL EARNINGS	2100.100	320.200	88.500
	IMPORTS
	Raw Materials	66265.500	27,338.600	32,390.300
	Components and Stores parts	1498.900	1,530.400	1,779.700
	Capital Goods	4242.000	10,994.700	5,551.800
	TOTAL IMPORTS	72006.400	39863.700	39721.800
	Earnings / (Loss) Per Share (Rs.)	34.49	31.71	28.80

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	7.61	8.46	9.04
Operating Profit Margin (PBIDT/Sales)	(%)	13.81	15.22	15.45
Return on Total Assets (PBT/Total Assets}	(%)	17.79	18.91	20.91
Return on Investment (ROI) (PBT/Networth)		0.24	0.25	0.25
Debt Equity Ratio (Total Debt /Networth)		0.35	0.35	0.23
Current Ratio (Current Asset/Current Liability)		1.19	1.01	0.86

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	12684.800	12684.800	12684.800
Reserves & Surplus	203573.500	229593.200	258038.500
Net worth	216258.300	242278.000	270723.300
long-term borrowings	48893.500	81407.800	95260.900
Short term borrowings	0.000	2237.400	0.000
Total borrowings	48893.500	83645.200	95260.900
Debt/Equity ratio	0.226	0.345	0.352

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	404407.600	475226.900	575079.300
		17.512	21.012

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	404407.600	475226.900	575079.300
Profit	36538.400	40222.000	43752.700
	9.04%	8.46%	7.61%

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	Yes
10]	Designation of contact person	Yes
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	Yes
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

LITIGATION DETAILS

 IN THE HIGH COURT OF DELHI AT NEW DELHI

ARB.P. 621/2014

M/S PSL HOLDINGS LTD ... Petitioner

Through: Mr.Arun Kumar Varma, Ms.Sahiti Kachroo and Mr.Mayank Sapra,

 Advocates

  versus

 M/S GAIL INDIA LTD.... Respondent

Through:

CORAM:

  HON'BLE MS. JUSTICE DEEPA SHARMA

 O R D E R

08.12.2014 

  I.A.No.24508/2014 (for exemption)

Exemption is allowed subject to just exceptions.

Application is disposed of.

ARB.P. 621/2014

On the petitioner taking necessary steps and filing PF/RC within 10 days, issue notice to the respondent by ordinary process, registered A/D cover and through approved courier, returnable on 23.02.2015.

DEEPA SHARMA, J

DECEMBER 08, 2014

rb
 $ 5

YEAR UNDER RETROSPECT

During the year, the Company’s 1000 kms long Dabhol-Bengaluru Pipeline Project was awarded the coveted Platts Global Energy Awards 2013 as Premier Project in Large Construction Category.

The year 2013-14 has been a year of venturing into new businesses and expanding the scale of operations in an effort to be a global energy player. The Company entered into the elastomer business by approving the project for setting up 110 KTA capacity Poly Butadiene Rubber (PBR) Plant at a cost of Rs.25750.000 Millions at Dahej in a joint venture with ONGC.

Further, the Company and Shipping Corporation of India have entered into a MoU for cooperation in the LNG shipping business.

The Company has also signed an MoU with Paradip Port Trust Limited for setting up an LNG terminal at Paradip in Odisha.

On the Exploration and Production (EandP) front, gas production from A-1 and A-3 Blocks in Myanmar has started during the FY 2013-14. The total revenue from EandP business during FY 2013-14 was Rs.2440.000 Millions

SEGMENT PERFORMANCE

During the year, the segment wise business performance of the Company is as under:

Natural Gas Marketing

Natural gas continues to constitute the Company’s core business. During 2013-14, gas sales clocked 79.18 MMSCMD, compared to 81.44 MMSCMD in the previous financial year. Major supplies of natural gas include fuel to power plants, feedstock for gas-based fertilizer plants and LPG extraction. The Company holds around 67% market share in India’s gas marketing.

Transmission

Natural Gas

The Company owns and operates a network of about 11,000 kms of natural gas high pressure trunk pipeline with a pan-India capacity of around 206 MMSCMD of natural gas. Average gas transmission during the year was 96.22 MMSCMD, compared to 104.90 MMSCMD in the previous financial year mainly due to the decrease in gas from RIL’s KG D6 block.

LPG

The Company is the only company in India, which owns and operates exclusive pipelines for LPG transmission for third-party usage. The Company owns and operates two LPG pipeline transmission systems with a total length of 2038 kms. Out of this, 1415 km of pipeline network transports LPG from western to northern parts of India (Jamnagar – Loni LPG Pipeline) and the balance 623 kms of pipeline network transports LPG in the country’s southern part (Vizag-Secunderabad LPG Pipeline). The LPG transmission system has a capacity to transport up to 3.8 MMTPA of LPG. In 2013-14, the LPG transmission through put achieved was about 3.15 Million MT.

Petrochemicals

During 2013-14, the Company has produced 436 Thousand MT (TMT) of polymers and sold 445 TMT of polymers.

LPG and Other Liquid Hydrocarbon Production

The Company has seven LPG plants in the country for production of LPG and other liquid hydrocarbons. In 2013-14, the total liquid hydrocarbon production was 1307 TMT, which included 1030 TMT of LPG, 135 TMT of Propane, 22 TMT of Pentane and 120 TMT of Naphtha.

Exploration and Production (EandP)

The financial year 2013-14 has seen significant transformation of the EandP business of GAIL. The production of gas has started from overseas blocks A-1 and A-3, Myanmar.

The company has earned a revenue of Rs.2440.000 Millions from EandP activities through the sale of gas in A-1 and A-3 in Myanmar and crude oil in Cambay Onland block CB-ONN-2000/1 during the year 2013-14.

At present, GAIL has participating interest in 20 EandP blocks of which 18 blocks are in India and 2 in Myanmar.

GAIL is the Operator in three onland blocks viz. (i) RJ-ONN-2004/1 in Rajasthan basin awarded during NELP-VI bidding round, ii) CY-ONN- 2005/1 in Cauvery basin awarded during NELP-VII bidding round and (iii) CB-ONN-2010/11 in Cambay basin awarded during NELP-IX bidding round. GAIL is the non-operating partner in the remaining 17 blocks. In Rajasthan onland block, one well has been drilled during FY 2013-14 and future course of action is being charted. Drilling of wells is planned during the year 2014-15 in Cauvery onland block. In Cambay onland block, the acquisition of 131 KM2 3D seismic data has been initiated.

Declaration of Commerciality (DoC) for gas discovery has been submitted to the Government in Block MN-OSN-2000/2 (Mahanadi offshore Block, NELP-II) while DoC for gas discovery Kathalchari – 1 in Block AA-ONN-2002/1 (Tripura Onland Block, NELP-IV) has been recently approved by the Government.

MANAGEMENT DISCUSSION AND ANALYSIS

INDIA ENERGY SECTOR OVERVIEW

India is the fourth largest primary energy consumer, after China, USA and Russia. It accounts for more than 4.5% of the total global annual energy consumption. In India, 818 million people, or around two-thirds of the population, rely on traditional biomass – almost twice as many as in China, which is ranked second in world. As per India Energy Congress (IEC)-2013 on Securing Tomorrow’s Energy Today - Policy and Regulations, if India grows at the rate of 8% or more, higher than average demand for energy will persist.

The Indian economy over the period has seen an upward trend and despite the recent slowdown, the energy consumption has been rising. Coal is the mainstay of India’s energy sector and accounts for over 50% of primary commercial energy supply as well as the total power generated in the country, 73.8% of which comes from coal based thermal power stations. The next big share of energy portfolio in India is dominated by hydrocarbons and less than 10% of energy comes from other sources like hydro, renewables and nuclear. Natural gas accounts for roughly 8 % of the energy mix of India.

As per the International Energy Agency (IEA) - Energy Outlook, India will become the second-largest coal consumer – surpassing the United States – and the largest coal importer by 2025. Oil demand in India will reach more than 8mb/d (million barrels/day) in 2035, with road transport taking the largest share. Demand is expected to grow briskly in India to over 110 Billion Cubic Metre (BCM) of natural gas. Residential demand for liquefied petroleum gas (LPG) and kerosene will also account collectively for nearly 1 mb/d. Between 2020 and 2035, solar capacity will also increase rapidly in India by about 75 GW. After 2025, the focus of energy demand shall shift within developing Asia towards India and, to a lesser extent, towards Southeast Asia.

UNSECURED LOAN

Unsecured Loan	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long-term Borrowings
TERM LOANS From Banks :
Bank of Tokyo Mitsubishi UFJ Limited. (1/3 rd repayment at the end of the 4th, 5th and 6th year from the last date of drawl i.e Dec 2015, Dec 2016 and Dec 2017) Loan carries floating rate of interest linked to 6 Months LIBOR plus spread.	6061.000	5499.000
Bank of Tokyo Mitsubishi UFJ Limited (Bullet repayment at the end of the 5th year from the last date of 'drawl i.e Aug'2016. Loan carries floating rate of interest linked to 6 Months LIBOR. plus spread)	9091.500	8248.500
Mizuho Corporate Bank (1/3 rd repayment at the end of the 4th, 5th and 6th year from the last date of drawl i.e Jan 2016, Jan 2017 and Jan 2018) Loan carries floating rate of interest linked to 6 Months LIBOR plus spread).	6061.000	5499.000
Sumitomo Mitsui Banking Corporations (1/3 rd repayment at the end of the 4th, 5th and 6th year from the last date of drawl i.e Feb 2016, Feb 2017 and Feb 2018) Loan carries floating rate of interest linked to 6 Months LIBOR plus spread).	6061.000	5499.000
Japan bank for International Co-operation(JBIC) Repayable in 20 half yearly equal Instalments starting from June'2013	2453.500	1893.400
Sumitomo Bank (1/2 repayment at the end of the 5th and 6th year from the last date of drawl i.e Nov 2017, Nov 2018) Loan carries floating rate of interest linked to 6 Months LIBOR plus spread).	18183.000	16497.000
Society General (Repayment in 20 half yearly equal Instalments starting from 22^nd October 2012)	3379.000	3474.400
KFW Germany ( Siemens Facility) (Repayment in 20 half yearly equal Instalments starting from March 2014)	2675.400	0.000
KFW Germany ( Coperion Facility) (Repayment in 14 half yearly equal Instalments starting from October 2014)	785.500	0.000
Short-term borrowings
Loan from Royal Bank of Scotland (RBS) (repayment at the end of 6 month from date of first drwal ie 14.06.2013) Loan carries floating rate of interest linked to 3 Months EURIBOR plus spread	0.000	2237.400
Total	54750.900	48847.700

CONTINGENT LIABILITY AS ON 31.03.2014

(a). Claims against the Company not acknowledged as debts:

Rs.75966.100 Millions (Previous Year: 59684.900 Millions), which mainly include:-

(i) Legal cases for claim of Rs.8407.400 Millions (Previous Year: Rs.8072.300 Millions) by trade payable on account of Liquidated Damages/Price Reduction Schedule and Natural Gas price differential etc. and by customers for Natural gas transmission charges etc.

(ii) Income tax assessments up to the Assessment Year 2011-12 have been completed and a demand (net of provision) of Rs.13371.500 Millions relating to the Assessment Years 1996-97 to 2011-12 (Previous Year: Rs.12902.500 Millions relating to the Assessment Years 1996-97 to 2010-11) raised by the Department on account of certain disallowances / additions has been disputed by the company as it has been advised that the demand is likely to be deleted or may be reduced substantially by the appellate Authorities. The company has filed the appeal with the appropriate appellate authorities against all the assessment years. However, to avoid coercive action by the Department, Rs.12981.400 Millions (Previous Year: Rs.12216.700 Millions) has already been paid pending decision by the appellate authorities. Further, Department has also filed appeals amounting to Rs.1003.200 Millions (including interest) (Previous Year: Rs.933.700 Millions) before Income Tax Appellate Tribunal, Delhi against the relief granted by CIT (A) in favour of Company.

(iii) Rs.42383.600 Millions (Previous Year: Rs.31470.600 Millions) relating to disputed tax demand towards Custom Duty, Excise duty, Sales tax, Entry tax, Service Tax etc. (b) (i) The Company has issued Corporate Guarantee for Rs.15553.700 Millions (Previous Year: Rs.11007.400 Millions) on behalf of subsidiary companies for raising loan. (ii) Share in Contingent Liabilities of Joint Ventures based on their audited / unaudited Financial Statement: Rs.9804.900 Millions (Previous Year: 7288.700 Millions)

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10457703	22/10/2013	4,750,000,000.00	OIL INDUSTRY DEVELOPMENT BOARD	301, WORLD TRADE CENTER, BABAR ROAD, NEW DELHI, D ELHI - 110001, INDIA	B88582291
2	10406394	12/02/2013	1,750,000,000.00	OIL INDUSTRY DEVELOPMENT BOARD	301, WORLD TRADE CENTER, BABAR ROAD, NEW DELHI, D ELHI - 110001, INDIA	B68957372
3	10374616	30/08/2012	7,500,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG,, BA LLARD ESTATE,, MUMBAI, MAHARASHTRA - 400001, INDIA	B57295172
4	10369540	18/06/2012	9,500,000,000.00	OIL INDUSTRY DEVELOPMENT BOARD	301, WORLD TRADE CENTER, BABAR ROAD, NEW DELHI, D ELHI - 110001, INDIA	B45314325
5	10279675	25/03/2011	8,000,000,000.00	OIL INDUSTRY DEVELOPMENT BOARD	301, WORLD TRADE CENTER, BABAR ROAD, NEW DELHI, D ELHI - 110001, INDIA	B10414316
6	10271002	21/07/2011 *	5,000,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG,, BA LLARD ESTATE,, MUMBAI, MAHARASHTRA - 400001, INDIA	B16719494
7	10249942	15/07/2011 *	12,500,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W , MUMBAI, MAHARASHTRA - 400013, INDIA	B16748477
8	10167220	30/06/2009	7,000,000,000.00	OIL INDUSTRY DEVELOPMENT BOARD	301, WORLD TRADE CENTER, BABAR ROAD, NEW DELHI, D ELHI - 110001, INDIA	A66109562
9	80020522	22/06/2004	5,000,000,000.00	STATE BANK OF INDIA	PARLIAMENT STREET, NEW DELHI, DELHI - 110001, INDI A	-

* Date of charge modification

FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED ON 30.09.2014

(Rs. in millions)

Sr. No.	Particular	Quarter Ended		Year Ended
		30.09.2014 (Unaudited)	30.06.2014 (Unaudited)	30.09.2014 (Audited)
1.	Income from Operations
	Net Sales	140631.800	133371.100	274002.900
	Other Operating Income	665.400	3512.200	1016.600
	Net Sales/Income from Operations	141297.200	133722.300	275019.500
2.	Expenditure
	Consumption of Raw Materials	13055.800	10555.400	23611.200
	Purchase of Stock In Trade	93819.300	106646.400	200465.700
	Change in Inventories of Finished Goods, Work-In-Progress and Stock In Trade	1157.700	(6041.300)	(4883.600)
	Employee Benefits Expenses	2326.400	2273.500	4599.900
	Depreciation and Amortization Expenses	2367.500	2336.500	4704.000
	Other Expenses	10715.700	9839.9000	20555.600
	f) Total	123442.400	125610.400	249052.800
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	17854.800	8111.900	25966.700
4.	Other Income	2888.100	1724.300	4612.400
5.	Profit Before Interest and Exceptional Items (3+4)	20742.900	9836.200	30579.100
6.	Interest / Finance	916.300	931.800	1848.100
7.	Profit After Interest but before Exceptional Items (5-6)	19826.600	8904.400	28731.000
8.	Exceptional Items	0.000	0.000	0.0000
9.	Profit from Ordinary Activities before Tax (7+8)	19826.600	8904.400	28731.000
10.	Tax Expense
	Current tax	5394.300	2421.300	7815.600
	Earlier tax	0.000	0.000	0.000
	Deferred tax	1403.3000	268.7000	1672.000
11.	Net Profit from Ordinary Activities after Tax (9-10)	13029.000	6214.400	19243.400
12.	Extraordinary Item (net of expense)	0.000	0.000	0.0000
13.	Net Profit for the period (11-12)	13029.0000	6214.400	19243.400
14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	12684.800	12684.800	12684.800
15.	Reserves Excluding Revaluation Reserve
16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
	a) Basic and diluted EPS before extraordinary items	10.27	4.90	15.17
	b) Basic and diluted EPS after extraordinary items	10.27	4.90	15.17
	Debt service coverage ratio			2.70
	Interest service coverage ratio			8.17
17.	Public Shareholding
	-Number of Shares	556743749	556743749	556743749
	- Percentage of Shareholding	43.89	43.89	43.89
18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	NIL	NIL	NIL
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	NIL	NIL	NIL
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	NIL	NIL	NIL
	b) Non Encumbered
	- Number of Shares	711733651	711733651	711733651
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100	100	100
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	56.11	56.11	56.11

Particulars	Quarter ended on 30.09.2014
Pending at the beginning of the quarter	Nil
Received during the quarter	5
Disposed of during the quarter	5
Remaining unresolved at the end of the quarter	Nil

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Millions)

Sl. No.	Particulars	Quarter Ended		Year Ended
		30.09.2014	30.06.2014	30.09.2014
		(Unaudited)	(Unaudited)	(Audited)
1	Segment Revenue
	Transmission Services
	Natural Gas	7668.800	6603.500	14272.300
	LPG	978.200	1114.100	2092.300
	Natural Gas Trading	118188.000	116690.900	234878.900
	Petrochemicals	12814.100	9926.600	22740.700
	LPG and Liquid Hydrocarbons	17037.400	12600.700	29638.100
	Other Segment	2000.100	1624.700	3624.800
	Total	158686.600	148560.500	307247.100
	Less : Inter Segment Revenue (Net of Excise)	18054.800	15189.400	33244.200
	Sales / Income from Operations	140631.8000	133371.100	274002.900
2	Segment Results
	Transmission Services
	Natural Gas	2620.100	2234.300	4854.400
	LPG	476.800	690.300	1167.100
	Natural Gas Trading	4517.700	(354.600)	4163.100
	Petrochemicals	1552.100	1249.100	2801.200
	LPG and Liquid Hydrocarbons	9010.700	4955.600	13966.300
	Other Segment	988.600	613.000	1601.600
	Total	19166.000	9387.700	28553.700
	Less :Interest	916.300	931.800	1848.100
	Less : Other Un-allocable Expenditure	1281.800	1225.500	2507.300
	Less : Other Un-allocable Income	(2858.700)	(1674.000)	(4532.700)
	Total Profit Before Tax	19826.600	8904.400	28731.000
3	Capital Employed
	Natural Gas Transmission / Trading	191876.800	203113.400	191876.800
	LPG Transmission	7294.200	7363.700	7294.200
	Petrochemicals	12216.500	12761.800	12216.500
	LPG and Liquid Hydrocarbons	16796.500	8044.000	16796.500
	Other Segment	15581.300	15557.500	15581.300
	Un-allocable	168852.300	157113.300	168852.300
	Total	412617.600	403953.700	412617.600

STATEMENT OF ASSETS AND LIABILITIES

(Rs. In Millions)

SOURCES OF FUNDS	30.09.2014
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	12684.800
(b) Reserves & Surplus	276628.500
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	289313.300
(3) Non-Current Liabilities
(a) long-term borrowings	88018.200
(b) Deferred tax liabilities (Net)	26959.700
(c) Other long term liabilities	7275.600
(d) long-term provisions	5030.900
Total Non-current Liabilities (3)	127284.400
(4) Current Liabilities
(a) Short term borrowings	0.000
(b) Trade payables	28342.500
(c) Other current liabilities	54300.200
(d) Short-term provisions	6045.300
Total Current Liabilities (4)	88688.000
TOTAL	505285.700
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets	315068.700
(b) Non-current Investments	41479.700
(c) Deferred tax assets (net)	0.000
(d) Long-term Loan and Advances	26323.300
(e) Other Non-current assets	7080.700
Total Non-Current Assets	389952.400
(2) Current assets
(a) Current investments	0.000
(b) Inventories	27805.600
(c) Trade receivables	33540.000
(d) Cash and cash equivalents	21511.900
(e) Short-term loans and advances	29998.300
(f) Other current assets	2477.500
Total Current Assets	115333.300
TOTAL	505285.700

Note:

The above financial results have been reviewed by the Audit Committee and approved by the Board of Directors at its meetings held on 31st October, 2014.

Limited Review of the Financial Results has been carried out by the Statutory Auditors of the company.

The company provided NIL discount for the quarter ending 30th September, 2014 (Previous year corresponding quarter: Rs. 6986.800 Millions) as the company has not received orders from MOP and NG relating to sharing of under recoveries on LPG for the quarter. The provisional discount provided for the half year ended 30th September, 2014 is Rs. 5000.000 Millions (Previous year corresponding period: Rs. 13986.800 Millions).

Effective April 01, 2014, the Company has revised the useful life of fixed assets based on Schedule II to the Companies Act, 2013 for the purposes of providing depreciation on fixed assets. This resulted in increase in profit before tax to the extent of Rs. 693.700 Millions during the quarter ending 30th September, 2014 and Rs. 1387.400 Millions during the half year ended 30th September, 2014.

In accordance with the orders issued by PNGRB notifying "Provisional" initial unit natural gas pipeline tariff for various Pipeline network effective from 20.11.2008, the company has derecognized the revenue by an amount of Rs. 1928.400 Millions during the quarter ending 30th September, 2014 (Previous year corresponding quarter: Rs. NIL) and Rs. 4344.300 Millions during the half year ended 30th September, 2014 (Previous year corresponding period: ? NIL).

Previous period figures have been regrouped / reclassified, wherever required.

FIXED ASSETS

· Land: Freehold / Leasehold

· Building: Office/Others/ Residential

· Bunk Houses

· Plant and Machinery

· Railway Lines and Sidings

· Electrical Equipments

· Furniture, Fixtures and Other Equipments

· Transport Equipments

PRESS RELEASES

GAIL INDIA FALLS AFTER JEFFERIES DOWNGRADES CITING CRUDE OIL SLUMP

JANUARY 16, 2015

MUMBAI: Shares of GAIL have been under pressure for over past two months with sliding crude oil prices. The stock has fallen 26 per cent since beginning of November and with recent downgrades from foreign brokerages, the downward correction may continue for some more time.

Jefferies in its latest report on oil & gas sector has downgraded GAIL to 'Underperform' in the wake of sharp fall in crude oil prices. It sees risk/reward unfavorable for the gas sector as most upside seems to be priced in.

The brokerage has cut Brent price estimate to US$50 per barrel for 2015. Its estimates for FY15-18E are US$84/$55/$70/$80 per barrel against US$90/$75/$85/$93 per barrel previously.

According to the report, gas stocks have had a fairly good run in 2014 despite no significant changes in fundamentals (except in the case of IGL).

"The stocks are pricing in most of the possible positives in 2015 such as hike in transmission tariffs, resolution of Kochi pipeline issues and some increase in gas volumes. Gas pooling, if implemented, would be positive but not a game-changer," the report said.

"We have downgraded GAIL to Underperform as we believe the stock in not reflecting the adverse impact of lower crude prices on earnings," the report added.

Another brokerage CLSA cut GAIL's FY15/16/17 EPS estimate by 6/24/15 per cent as it lowered Brent price forecast to US$75/83 for FY16/17.

"Our new EPS estimates are 14-27 per cent below consensus signalling clear risk of downgrades. We estimate that current stock price is building in Brent of US$100/bbl. The stock is trading ~50 per cent above its historical average PE," the report said.

According to CLSA report, recovery in gas transmission volumes is unlikely in next two years and EPS risk from low crude price not priced in, valuations are unsustainable.

The brokerage has reiterated 'SELL' on the stock and lowered its price target to Rs 425 per share.

At 12:15 p.m.; the stock was at Rs 424.20, down 0.84 per cent, on the BSE. It touched a high of Rs 426.80 and a low of Rs 419.75 in trade today.

MAJOR FIRE AT A GAIL GAS PIPELINE; NO CASUALITIES

JANUARY 16, 2015

A major fire broke out at GAIL’s natural gas pipeline in South Delhi’s Satyaniketan area after it was perforated by civic construction contractors but there were no casualties reported.

The fire at the pipeline near Venkateshwara College in South Delhi has been brought under control, said B C Tripathi, Chairman and Managing Director of GAIL India Ltd, the state gas utility which owns the pipeline.

The pipeline supplies natural gas to consumers like Maruti Udyog. “There was some civic construction going on near the under-ground pipeline… There is metro construction work as well as flyover work going on in the area,” he said.

A drill unit perforated the pipeline, leading to a minor explosion, followed by fire. “Fire tenders were immediately rushed and gas supplies to the line stopped,” Tripathi, who was among the first to reach the spot, said.

The fire has been brought under control, he said adding there were no casualties. “A GAIL gas pipeline near Venketeshwara College caught fire at 9.30 AM due to leakage. 10 fire tenders were pressed into service and the flames were doused off,” a fire official said.

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.61.61
UK Pound	1	Rs.93.49
Euro	1	Rs.71.38

INFORMATION DETAILS

Information Gathered by :	PAT
Analysis Done by :	SUB
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILITY	1~10	8
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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		73

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.