ASSIGNMENT

OF
BANKING AND WORKING
CAPITAL
ON
FINANCIAL ACCOUNTS AND
WORKING CAPITAL
OF
GAIL

SUBMITTED TO :- SUBMITTED BY:-

MISS Avneet Kaur Sachin kumar bassi
Lecturer (LIM) 614240830
B B A (VI th)

LOVELY INSTITUTE OF MANAGEMEN T

CHERU (PHAGWARA)
GAIL (India) Limited, is India's flagship Natural Gas
company, integrating all aspects of the Natural Gas value
chain (including Exploration & Production, Processing,
Transmission, Distribution and Marketing) and its related
services. In a rapidly changing scenario, we are
spearheading the move to a new era of clean fuel
industrialisation, creating a quadrilateral of green energy
corridors that connect major consumption centres in India
with major gas fields, LNG terminals and other cross border
gas sourcing points. GAIL is also expanding its business to
become a player in the International Market.

Today, GAIL's Business Portfolio includes:

• 6,700 km of Natural Gas high pressure trunk pipeline

with a capacity to carry 148 MMSCMD of natural gas
across the country
• 7 LPG Gas Processing Units to produce 1.2 MMTPA of
LPG and other liquid hydrocarbons
• North India's only gas based integrated Petrochemical
complex at Pata with a capacity of producing 4,10,000
TPA of Ploymers
• 1,922 km of LPG Transmission pipeline network with a
capacity to transport 3.8 MMTPA of LPG
• 27 oil and gas Exploration blocks and 3 Coal Bed
Methane Blocks
• 13,000 km of OFC network offering highly dependable
bandwith for telecom service providers
• Joint venture companies in Delhi, Mumbai, Hyderabad,
Kanpur, Agra, Lucknow, Bhopal, Agartala and Pune, for
supplying Piped Natural Gas (PNG) to households and
commercial users, and Compressed Natural Gas (CNG)
to the transport sector
• Participating stake in the Dahej LNG Terminal and the
upcoming Kochi LNG Terminal in Kerala
• GAIL has been entrusted with the responsibility of
reviving the LNG terminal at Dabhol as well as sourcing
LNG
• Established presence in the CNG and City Gas sectors
in Egypt through equity participation in three Egyptian
companies: Fayum Gas Company SAE, Shell CNG SAE
and National Gas Company SAE.
• Stake in China Gas Holding to explore opportunities in
the CNG sector in mainland China
 • A wholly-owned subsidiary company GAIL Global
(Singapore) Pte Ltd in Singapore

Vision
Be the Leading Company in Natural Gas and Beyond, with
Global Focus, Committed to Customer Care, Value Creation
for all Stakeholders and Environmental Responsibility.

Mission
To accelerate and optimise the effective and economic use of
Natural Gas and its fractions to the benefit of national
economy.

5 year Snapshot
Key Financial Ratios
2001- 2002- 2003- 2004- 2005-
Particulars
02 03 04 05 06
PAT TO NET WORTH
22 26 25 23 23
(%)
ROCE (%) 26 33 32 28 30

DEBT EQUITY 0.45 0.32 0.29 0.23 0.19

EPS (Rs.) 14 19 22 23 27
MARKET
CAPITALIZATION
(as at the end of 64.44 63.42 180.29 179.19 269.13
the Financial Year)
(Rs. In Billion)
5 year Snapshot
Profit & Loss Account Summary

Particulars 2001- 2002- 2003- 2004- 2005-

02 03 04 05 06
Total 10499 11669 12228 13914 16832
Earnings
(Net of ED)
Total 7857 8322 8611 9961 12878
Expenditure
Gross 2641 3347 3616 3952 3954
Margin
(EBIDTA)
Depreciation 613 643 664 947 560
Interest 227 186 138 134 117
PBT 1802 2518 2814 2871 3277
Tax 616 879 945 917 967
PAT 1186 1639 1869 1954 2310
5 year Snapshot
Sources & Application of Funds

Sources of Funds
Particulars 2001-02 2002-03 2003-04 2004-05 2005-06
PAID-UP CAPITAL 845.65 845.65 845.65 845.65 845.65
RESERVES & 4489.79 5493.48 6599.50 7780.46 9127.64
SURPLUS
SECURED LOANS 397.63 163.95 1655.52 1600.00 1600.00
UNSECURED LOANS 2027.18 1883.17 477.96 397.40 316.56
DEFE. TAX 1090.74 1119.75 1227.58 1255.23 1299.70
LIABILITY (NET)
TOTAL 8850.99 9506.00 10806.21 11878.74 13189.55
Applications of Funds
GROSS BLOCK 10701.94 11048.71 13584.73 14222.35 14469.48
LESS : 4167.06 4786.61 5441.85 6376.47 6913.52
DEPRECIATION
NET FIXED ASSETS 6534.88 6262.10 8142.88 7845.88 7555.96
CWIP 425.70 688.14 814.47 309.08 615.59
INVESTMENTS 688.21 687.94 771.99 783.95 1443.35
NET CURRENT 1201.98 1867.71 1076.87 2939.83 3574.65
ASSETS
MISC.EXPENDITURE 0.22 0.11 - - -
TOTAL 8850.99 9506.00 10806.21 11878.74 13189.55

Analysis of the financial accounts

2001-02 2002-03 2003-04 2004-05 2005-06

NET CURRENT ASSETS
1201.98 1867.71 1076.87 2939.83 3574.65
LIABILITY (NET)
1090.74 1119.75 1227.58 1255.23 1299.70
We can say that the liability of the company had decreased as it ids
shown that of previous years because of its regularly profit gaining ,
goodwill increasing , the organization far better becoming than that of
its previous years . I would like to do the comment that the
organization becoming far more than ever before. Although the
liabilities of the company has increased but the amount of the current
assets increase in the company is also the thrice the times than the
liability approx . so it is becoming very good and strong organization n
now a days .

Factors affecting the working capital of the GAIL

1. nature of business : as the GAIL is considered and deal in
the gas corporation industry and the nature of the work is that
sometimes due to unwanted strikes the gail had to take working
capital.
2. production cycle : as the gas is natural resource made by
human being and the rate of the production depends upon the
usage of the gas , and if consumed the working capital is nore
required and vice versa in the same opposite case.
3. size of business : as the GAIL is the gas company and due
to which the size of the business is obviously the big , so due to
which the concinement for the production given to them is big
and hence the working capital is more .
4. rate of growth of the business ; as its current assets
are more than its current liabilities which shows that at how
much rate the company is increasing and it is also seen and
observed from its balance sheet that how much amount of the
working capita the company is utilizing .
 5. dividend policy ; as the company has the labours and the
debtrs to which they have to give the part of the bonous due to
which the working capital raised by the company is huge .

working capital policy being used

As the details about the working capital policy was not

given so according to my estimate the policy used by
the company I think is aggressive policy because the
current assets used by the company is more as
compared yto fixed assets and the liability of the
company is also less because of which it is of very
much menifit to the orgasisation to use its working
capital and due to which the working caoital is more .
 BIBLOGRAPHY

1. WWW.GOOGLE.COM/ GAIL's Business Portfolio

2. WWW.LIVE SEARCH.COM/ 5 year Financial Ratios

3. WWW.WIKIPEDIA.COM/ 5 year Snapshot/

Profit & Loss Account Summary

4. WWW.WIKIANSWERS.COM/ 5 year Snapshot/

Sources & Application of Funds