1. SOURCES OF FINANCE FOR OIL, GAS & PETROLEUM COMPANIESBY: M.HARISH-2B4-15 A.SAI KUMAR-2B4-1 SAI SARATH SRI SUDHA VARSHA SWAPNA

2. INTERNAL SOURCES OF FUNDS There are three sources of funding within your business profits, customers and suppliers. Profits Profit management and distribution is the first internal funding source. When a business makes a profit, the owners have two choices. They can either take the money out of the business or leave it in the business. Money taken out reduces the capital or equity of the business. However, if the owner chooses to leave the profits in the business, the capital increases and can be used to finance the expansion of the business. Even more important, in inflationary times, these retained profits canbe used to offset the increased replacement costs of both current and fixed assets. Profits are like the interest on a savings account. If you take the interest out of your savings account every year, the balance of the account will grow only if you add more money. However, if you leave the interest in the account, then it starts to compound and your account balance grows faster. As an internal source of finance, assets and liability management must also be carefully watched. If an item is stock is a slow mover, you may wish to sell it at a discount and stop ordering it. You might also consider selling some of your fixed assets in favor of a less costly alternative in order to generate cash. For example, it might be cheaper to reimburse your employees for the use of their personal cars rather than buy or lease vehicles for the business. For an example of liability management see details under the heading Suppliers Credit. Customers You can raise money from your customers by expediting your collections from them. If you can get money moving into your business faster, you will have more available for your needs. For instance, if your customers pay you quickly, you will have the cash necessary to take advantage of cash or quantity discounts. These discounts can reduce the cost of your merchandise and thereby increase your profits. You can increase customer collections in two ways. Firstly, you can encourage partial payments on long term projects where appropriate. Secondly, you can put an aggressive credit collection policy into effect. This should reduce the number of bad debts that you might acquire as well as encourage your customers to pay their debts quickly. Both of these methods will increase your cash-flow. 3. Suppliers credit This is an excellent source of low or no-cost money. Suppliers may be willing to extend interest free credit on purchases of goods or services to well established customers. This means that you may be able to order, obtain delivery, and sell an item before you have to pay for it. This is the same as an interest free loan. To keep this source available to you, however, it is essential that you build and safeguard your relationships with your suppliers carefully EXTERNAL SOURCES OF FUNDS Equity Equity is one of the two external funding sources available to you. Equity funds are those generated by the invested capital of a firm. The best source of start-up funds is equity and if you do not have the funds available personally, you should look to other sources such as partners, co members in a close corporation, or coshareholders in a private company. Of course, if you want to go it alone or cannot find willing investors, you may need to resort to borrowing (debt). Remember, however, that you will encourage financial backing from outsiders if you show that you are making an adequate financial contribution yourself. One of the causes of applications for finance being rejected is the failure by the owners of the business to make an adequate personal capital contribution. Your potential financial backer may regard this as lack of commitment. Borrowing (debt) The prospects of a small business depend almost entirely on the ability, energy and character of the person in charge. Whoever supplies the business with debt finance is in fact risking his capital on the accuracy of his judgment of the personal capacity of the owner of the business. Thus, however good the small business manager may be, only those who have had the opportunity to become closely acquainted with him are likely to have the necessary confidence to entrust him with their money. The amount of cash required by you is likely to be raised in direct proportion to your financiers willingness to invest based on his assessment of your training, experience, expertise, etc. Every Financier will have his own individual approach to the client, but if one takes the average bank Manager as an example, one thing is certain: the banker regards his relationship with his client as a Partnership and, like all good partners, he is trying to be as difficult as possible or to make the Maximum amount of money out of his customer. 4. The banker knows that success is dependent upon the success of his client and the building of along term relationship between the bank and the client and the building of a long term relationship between the bank and the client. With this in mind, the relationship with your banker should be one of complete honesty. Always keep your bank manager informed if things are going wrong, tell him; if things are going right, also tell him! In this way both parties will be better equipped to make progress into the future. SHORT TERM SOURCES OF DEBT FINANCE The most common forms are: Bank overdraft This is probably the most available and appropriate source of short-term borrowings. Subsequently to negotiation, the bank allows the borrower to overdraw his account up to a specified limit, which is reviewed on a regular basis, normally annually. This gives the entrepreneur the flexibility of altering his financing requirements from day to day according to his cash flow. With overdrafts, interest is calculated on the daily outstanding balance. This means that no interest is paid on any unutilized portion of the facility. Interest rates charged fluctuate with the prime rate and this facility is generally used for financing increases in working capital. However, it is also useful when bridging finance is required where a gap exists between a long-term debt and the long-term Source of finance becoming available. It is important to realize that bank overdrafts are repayable on demand. Factoring Factoring is a term referring to the raising of funds by the sale or assignment of book debts to a third person i.e. a factor. The sale is normally with recourse to the seller for uncollectable debts. It may include all or some of the debts sold. The system may require the debtor to pay direct to the factor or via the original creditor as an agent for the factor, and completes the transaction as agent of the factor. This latter method has the advantage of maintaining the confidentiality of the arrangement between the seller and the factoring house. Factoring is a very convenient method of financing shortages in working capital and is frequently an attractive proposition to a new business faced with a substantial growth in sales which need to be financed. However, one needs to ensure that gross income margins generated by these sales can satisfactory absorb the costs of the factoring procedure. An additional advantage of factoring accrues to the seller by the possible savings in staff and paperwork associated with maintaining accounts and monitoring 5. debtors. Furthermore, cash isreceived immediately and the seller is not obliged to include a discount for prompt payment. Mostbanks have factoring divisions. Shippers finance A shipper (or customer) is a financial institution which provides finance and a host of other services to its clients.Today, the functions of the confirming houses take the following basic forms: Providing working capital:The confirmer provides facilities to clients, to create additional working capital and enable the client to finance his stock and receivables. Sophisticated forms of finance are provided which can briefly be summarized into three broad Categories: An overseas purchase facility. A local purchase facility. The discounting of customers bills. Providing services:The confirmer attends to the physical handling of the goods and the documentation relative thereto, and provides specialized services in order to expedite receipt and reduce the cost of imports into South Africa. Providing backing, assistance and financial expertise:The confirmer backs and assists the client with the technical and credit expertise that the confirming houses management possesses, thereby increasing profitability and thus helping companies to grow from small to large organizations. MEDIUM-TERM SOURCES OF DEBT FINANCE In financial language, medium-term can be thought of as constituting a broad and ill-defined border between short-term and long-term. As a result, this type of finance has a variety of applications such as financing additional working capital, acquisition of fixed assets, etc. Medium-term loans A common form of finance is the medium-term loan which normally provides finance for up to five years and in accordance with a strict set of conditions outlined in a term loan letter of offer by the financial institution and accepted by the client. Generally the lender will require security for the loan and seek to entrench the safety of the loan by imposing certain restrictions on the borrower, such as maximum permissible equity to debt and working capital ratios, and limitations on the sale or pledge of assets and payment of dividends. 6. Term loans are normally tailored to meet the particular cash flow requirements of a business. They are used for the finance of both current assets and fixed assets. Installment sale Previously known as Hire Purchase, the most common application is to finance the acquisition of vehicles or equipment. In terms of the regulations in the Credit Agreements Act, a deposit is normally required and, depending on the acquisition, the period for payment is fixed. The goods purchased are registered in the owners name and are always taken as prime security for the debt. Leasing Leasing is a method of reducing capital funding requirements. Instead of acquiring finance to purchase fixed assets, the process is cut short by obtaining the use but not ownership of the required assets in return for a periodic lease payment. Leasing, based on the principle that income is earned from the use of an asset, not the ownership, provides the following advantages: Cash resources may be released for more profitable trading and for the provision of working capital. Maintenance costs are reduced to a minimum by immediate replacement with new equipment at the end of the lease period. Plant and equipment are financed over a period directly related to their productive capacity and useful life. Budgeting is simplified, as the monthly cash flows are known, as is the date when the equipment must be replaced. Rental payments are deducted in full for tax purposes. These payments are a charge against profits before tax, whereas Installment sale payments are paid out of income after tax.LONG-TERM SOURCES OF FINANCE Long-term debt finance Into this category building societies and insurance companies. Insurance company policy holders can, under certain conditions, borrow money against the surrender value of their policies and this may be one way of raising capital for the new venture of your choice. Building societies, on the other hand, may be open to entertaining your proposal for long-term loan against the security of your private residence. These funds could then be injected into your business. 7. Participation bonds Bond finance for up to 20 years can be arranged for the erection ofcommercial/industrial property or against commercial/industrial premises owned by you. No capital (i.e. interest only) is repaid for the first five years. Thereafter the loan is repaid in annual installments. For bond purposes the value of the property is based on its revenue-producing potential and not on the replacement or intrinsic value of the property. The long-term sources of finances can be raised from the following sources: Share capital or Equity Share. Preference shares. Retained earnings. Debentures/Bonds of different types. Loans from financial institutions. Loan from State Financial Corporation. Loans from commercial banks. Venture capital funding. Asset securitizationIMPORTANT ITEMS IN ALL OF THE OILCOMPANIES: Share capital: The amount of share capital a company reports on its balance sheet only accounts for the initial amount for which the original shareholders purchased the shares from the issuing company. Any price differences arising from price appreciation/depreciation as a result of transactions in the secondary market are not included. For example, suppose ABC Inc. raised $2 billion from its initial public offering. Over the next year, the total value of its shares increases to $5 billion. In this case, the value of the share capital is still only $2 billion because ABC Inc. had received only $2 billion from the sale of its securities to the investing public. Long-term Borrowings: Debentures: Debentures have no collateral. Bond buyers generally purchase debentures based on the belief that the bond issuer is unlikely to default on the repayment. An 8. example of a government debenture would be any government-issued Treasury bond (T-bond) or Treasury bill (T-bill). T-bonds and T-bills are generally considered risk free because governments, at worst, can print off more money or raise taxes to pay these type of debts. Non-convertible Debentures: Debentures are long-term financial instruments which acknowledge a debt obligation towards the issuer. Some debentures have a feature of convertibility into shares after a certain point of time at the discretion of the owner. The debentures which can't be converted into shares or equities are called non-convertible debentures (or NCDs). Description: Non-convertible debentures are used as tools to raise long-term funds by companies through a public issue. To compensate for this drawback of nonconvertibility, lenders are usually given a higher rate of return compared to convertible debentures. Besides, NCDs offer various other benefits to the owner such as high liquidity through stock market listing, tax exemptions at source and safety since they can be issued by companies which have a good credit rating as specified in the norms laid down by RBI for the issue of NCDs. In India, usually these have to be issued of a minimum maturity of 90 days. Loan from oil industry development board: The OID Board determines the terms and conditions governing the loans from time to time on the basis of national importance of the project(s) being undertaken by the Oil PSUs and also the current market scenario for determining the rates of interest on OIDB loans. An independent Project Appraisal Cell has been formed to determine the eligibility of OIDB loan assistance. The OID Board has constituted a Standing Committee for review of the interest rates on OIDB loans for different tenors after taking into account the interest rates prevailing in the market and giving its recommendations to the Board. The Committee meets once in every quarter to review the interest rates on 9. OIDB loans. The formulation for charging interest rates on OIDB loans is as follows : a) The month-end interest rates for Government Securities having different residual maturities as per the latest available RBI's monthly bulletin is taken as the benchmark rates for computing interest rates on OIDB loans for different tenures. b) 50% of the Corresponding month-end margins of AAA rated Bond on Government securities available in page INCORP (Quote AAA INBMK) is added to the benchmark rate.External commercial borrowing: An external commercial borrowing (ECB) is an instrument used in India to facilitate the access to foreign money by Indian corporations and PSUs (public sector undertakings). ECBs include commercial bank loans, buyers' credit, suppliers' credit, securitized instruments such as floating rate notes and fixed rate bonds etc., credit from official export credit agencies and commercial borrowings from the private sector window of multilateral financial Institutions such as International Finance Corporation (Washington), ADB, AFIC, CDC, etc. ECBs cannot be used for investment in stock market or speculation in real estate. The DEA (Department of Economic Affairs), Ministry of Finance, Government of India along with Reserve Bank of India, monitors and regulates ECB guidelines and policies. For infrastructure and greenfield projects, funding up to 50% (through ECB) is allowed. In telecom sector too, up to 50% funding through ECBs is allowed. Recently Government of India has increased limits on RBI to up to $40 billions and allowed borrowings in Chinese currency yuan. International bond: International bonds include eurobonds, foreign bonds and global bonds. A different type of international bond is the Brady bond, which is issued in U.S. currency. Brady bonds are issued in order to help developing countries better manage their international debt. International bonds are also private corporate bonds issued by companies in foreign countries, and many mutual funds in the United States hold these bonds. 10. Inter-corporate deposit: Inter-corporate deposits are deposits made by one company with another company, and usually carry a term of six months. The three types of intercorporate deposits are: three month deposits, six month deposits, and call deposits. Three month deposits are the most popular type of inter-corporate deposits. These deposits are generally considered by the borrowers to solve problems of short-term capital inadequacy. This type of short-term cash problem may develop due to various issues, including tax payment, excessive raw material import, breakdown in production, payment of dividends, delay in collection, and excessive expenditure of capital. The annual rate of interest given for three month deposits is 12%. Six month deposits are usually made with first class borrowers, and the term for such deposits is six months. Deferred tax liability: An account on a company's balance sheet that is a result of temporary differences between the company's accounting and tax carrying values, the anticipated and enacted income tax rate, and estimated taxes payable for the current year. This liability may or may not be realized during any given year, which makes the deferred status appropriate. Because there are differences between what a company can deduct for tax and accounting purposes, there will be a difference between a company's taxable income and income before tax. A deferred tax liability records the fact that the company will, in the future, pay more income tax because of a transaction that took place during the current period, such as an installment sale receivable. Other long term liabilities: Earnest money deposits: An earnest money deposit shows the seller that a buyer is serious about purchasing a property. When the transaction is finalized, the funds are put toward the buyer's down payment. If the deal falls through, the buyer may not be able to reclaim the deposit. Typically, if the seller terminates the deal, the earnest money will be returned to the buyer. When the buyer is responsible for retracting the offer, the seller will usually be awarded the money. 11. Long-term provisions: Contingent liability: A potential obligation that may be incurred depending on the outcome of a future event. A contingent liability is one where the outcome of an existing situation is uncertain, and this uncertainty will be resolved by a future event. A contingent liability is recorded in the books of accounts only if the contingency is probable and the amount of the liability can be estimated. Outstanding lawsuits and product warranties are common examples of contingent liabilities. For example, a company may be facing a lawsuit from a rival firm for patent infringement. If the company's legal department thinks that the rival firm has a strong case, and the company estimates that the damages payable if the rival firm wins the case are $2 million, it would book a contingent liability of this amount on its balance sheet. If, on the other hand, the company's legal department is of the opinion that the lawsuit is frivolous and very unlikely to be won by the rival company, no contingent liability would be necessary. Provision for employee benefits: Provision is made in the financial statements for all employee benefits, including on-costs. In relation to industry-based long service leave funds, the Groups liability, including obligations for funding shortfalls, is determined after deducting the fair value of dedicated assets of such funds. SHORT TERM BORROWINGS: Working capital loan: A loan whose purpose is to finance everyday operations of a company. A working capital loan is not used to buy long term assets or investments. Instead it's used to clear up accounts payable, wages, etc. 12. Term loan: A loan from a bank for a specific amount that has a specified repayment schedule and a floating interest rate. Term loans almost always mature between one and 10 years. For example many banks have term-loan programs that can offer small businesses the cash they need to operate from month to month. Often a small business will use the cash from a term loan to purchase fixed assets such as equipment used in its production process. Collateralized Borrowing and Lending Obligation: A money market instrument that represents an obligation between a borrower and a lender as to the terms and conditions of the loan. Collateralized borrowing and lending obligations (CBLOs) are used by those who have been phased out of or heavily restricted in the interbank call money market. CBLOs were developed by the Clearing Corporation of India (CCIL) and Reserve Bank of India (RBI). The details of the CBLO include an obligation for the borrower to repay the debt at a specified future date and an expectation of the lender to receive the money on that future date, and they have a charge on the security that is held by the CCIL. Foreign Currency Swap An agreement to make a currency exchange between two foreign parties. The agreement consists of swapping principal and interest payments on a loan made in one currency for principal and interest payments of a loan of equal value in another currency. The Federal Reserve System offered this type of swap to several developing countries in 2008. The World Bank first introduced currency swaps in 1981 in an effort to obtain German marks and Swiss francs. This type of swap can be done on loans with maturities as long as 10 years. They differ from interest rate swaps because they also involve principal. Commercial Paper An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities. 13. Maturities on commercial paper rarely range any longer than 270 days. The debt is usually issued at a discount, reflecting prevailing market interest rates. Commercial paper is not usually backed by any form of collateral, so only firms with high-quality debt ratings will easily find buyers without having to offer a substantial discount (higher cost) for the debt issue. A major benefit of commercial paper is that it does not need to be registered with the Securities and Exchange Commission (SEC) as long as it matures before nine months (270 days), making it a very cost-effective means of financing. The proceeds from this type of financing can only be used on current assets (inventories) and are not allowed to be used on fixed assets, such as a new plant, without SEC involvement. Trade payables: A trade payable is an amount billed to a company by its suppliers for goods delivered to or services consumed by the company in the ordinary course of business. These billed amounts, if paid on credit, are entered in the accounts payable module of a company's accounting software, after which they appear in the accounts payable aging report until they are paid. Any amounts owed to suppliers that are immediately paid in cash are not considered to be trade payables, since they are no longer a liability. OTHER CURRENT LIABILITIES: Unclaimed dividend: Dividend declared at an annual general meeting is required to be paid within 30 days from the date of declaration of the said dividend. Companies are required to deposit the balance amount lying in the dividend account to an unclaimed dividend account within 37 days from the date of declaration. Any amount lying in the said account is termed as unclaimed dividend amount. Dividends not encashed or claimed, within seven years from the date of its transfer to the unclaimed dividend account, will, in terms of the provisions of section 205A of the Companies Act, 1956, be transferred to the Investor Education and Protection Fund (IEPF), established by the Central Government . In terms of the provisions of Section 205C of the Companies Act, 1956, no claim shall lie against the Corporation or the IEPF after the said transfer. 14. Sales tax: A tax imposed by the government at the point of sale on retail goods and services. It is collected by the retailer and passed on to the state. It is based on a percentage of the selling prices of the goods and services and set by the state. Excise tax: Excise taxes are considered an indirect form of taxation because the government does not directly apply the tax. An intermediary, either the producer or merchant, is charged and then must pay the tax to the government. These taxes can be categorized in two ways: - Ad Valorem: A fixed percentage is charged on a particular good. - Specific: A fixed dollar amount dependent upon the quantity purchased is charged. 2. Here are some examples of situations in which excises taxes are charged on transactions in retirement accounts: - A 6% excise tax applies to excess IRA contributions that are not corrected by the applicable deadline. - A 10% excise tax applies to distributions from an IRA, qualified plan or 403(b) accounts that occur before the participant reaches age 59.5. - A 50% excise tax applies to required minimum distribution amounts not withdrawn by the applicable deadline (referred to as an excess-accumulation penalty). Contractual obligation: the legal duty to take a specific course of action, as imposed by a commercial contract or a contract of employment Advance from customer: A liability account used to record an amount received from a customer before a service has been provided or before goods have been shipped. This account is referred to as a deferred revenue account and could be entitled Customer Deposits or Unearned Revenues. 15. Accrued Interest A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, but not yet paid or received. Accrued interest occurs as a result of the difference in timing of cash flows and the measurement of these cash flows.The interest that has accumulated on a bond since the last interest payment up to, but not including, the settlement date. For example, accrued interest receivable occurs when interest on an outstanding receivable has been earned by the company, but has not yet been received. A loan to a customer for goods sold would result in interest being charged on the loan. If the loan is extended on October 1 and the lending company's year ends on December 31, there will be two months of accrued interest receivable recorded as interest revenue in the company's financial statements for the year.2. Accrued interest is added to the contract price of a bond transaction. Accrued interest is that which has been earned since the last coupon payment. Because the bond hasn't expired or the next payment is not yet due, the owner of the bond hasn't officially received the money. If he or she sells the bond, accrued interest is added to the sale price. Customer deposits: Customer deposits refer to the money received by a company before providing the product or service to the customer. It is also known as unearned revenueor prepaid income. In a balance sheet, customer deposit appears on the liability side as current liabilities. 16. Customer deposits are usually created when the company wants the customer to deposit a certainpercentage of the price of the product or service to be deposited with them when the order is placed. The customer deposits are opened when a contract or an agreement is signed by the way company and the customer. This deposit may or may not be refundable depending upon the purpose of that deposit.Container deposit legislation Container-deposit legislation (CDL) is any law that requires collection of a monetary deposit on soft-drink, juice, milk, water, alcoholic-beverage, and/or other containers at the point of sale. When the container is returned to an authorized redemption center, or to the original seller in some jurisdictions, the deposit is partly or fully refunded to the redeemer (presumed to be the original purchaser). Capital reserve: A type of account on a municipality's or company's balance sheet that is reserved for long-term capital investment projects or any other large and anticipated expense(s) that will be incurred in the future. This type of reserve fund is set aside to ensure that the company or municipality has adequate funding to at least partially finance theproject. Contributions to the capital reserve account can be made from government subsidies, donated funds, or can be set aside from the firm's or municipality's regular revenue-generating operations. Once recorded on the reporting entity's balance sheet, these funds are only to be spent on the capital expenditure projects for which they were initially intended, excluding any unforeseen circumstances. 17. Debenture Redemption Reserve A provision that was added to the Indian Companies Act of 1956 during an amendment in the year 2000. The provision states that any Indian company that issues debentures must create a debenture redemption service to protect investors against the possibility of default by the company. Under the provision, debenture redemption reserves will be funded by company profits every year until debentures are to be redeemed. If a company does not create a reserve within 12 months of issuing the debentures, they will be required to pay 2% interest in penalty to the debenture holders. Only debentures that were issued after the amendment in 2000 are subject to the debenture redemption service. General reserve: Any retained earnings from a company's profits. General reserves can be divided into either specific, general or legal. Specific reserves can include a reassignment of dividends to shareholders; general reserves are saved to offset potential future losses; legal reserves can includemoney set aside for litigation or revaluation. 18. Essar Group was incorporated as a Public Limited Company under the Companies Act, 1956 in the year 1969, with the main objective to provide Development, Exploration, and Production and related Services in the oil & gas sector. Essar Oil Ltd. Subsidiary of Essar group was founded in 1992 Ravi Ruia, Chairman Lalit Gupta, MD,CEO PRODUCTS Petroleum Fuels Natural Gas and Other Petro Chemicals SOURCES OF FUNDS(all amounts in crores) 19. ONGC was formed in 1956 with the vision of great leaders to make our country energy-sufficient. Since then, the companyhas taken every step to fulfill this promise. Over the years, the company has discovered 6 of the 7 producing basins inIndia and added 6.4 billion tons of Oil and Gas reserves. Today, according to Platts Top 250 Global Energy Ranking, ONGC is the no. 1 E&P Company in the world. The company is ready to touch new horizons of growth by resolutely focusingon its Oil & Gas production capabilities. SOURCES OF FUNDS 20. Oil India Limited (OIL) is the second largest hydrocarbon exploration & production (E&P) Indian public sector Company and operational headquarters in Duliajan, Assam, India under the administrativecontrol of the Ministry of Petroleum and Natural Gasof the Government of India. However, Company's corporate office located in Noidain New-Delhi-NCR region.OIL is engaged in the business of exploration, development and production of crude oil and natural gas, transportation of crude oil and production of liquid petroleum gas. The story of Oil India Limited (OIL) traces and symbolizes the development and growth of the Indian petroleum industry. SOURCES OF FUNDS 21. Hindustan Petroleum Corporation Limited (HPCL) (BSE: 500104, NSE: HINDPETRO) is an Indian state-owned oiland natural gas company with its headquarters at Mumbai, Maharashtra and with Navratna status. HPCL has been ranked 260th in the Fortune Global 500 rankings of the world's biggest corporations (2013) and 4th among India's Companies for the year 2012.HPCL has about 20% marketing share in India among PSUs and a strong marketing infrastructure. The President of India owns 51.11%shares in HPCL. SOURCES OF FUNDS 22. Bharat Petroleum Corporation Limited (BPCL) is an Indian state controlled oil and gas company headquartered in Mumbai, Maharashtra. BPCL has been ranked 225th in the Fortune Global 500 rankings of the world's biggest corporations for the year 2012. Bharat Petroleum owns Mumbai Refinery and Kochi Refinerieswith a capacity of 12 and 9.5 million metric tones per year. CHAIRMAN AND MD: S. Varadarajan. SOURCES OF FUNDS 23. GAIL (India) Limited is the largest state-owned natural gas processing and distribution company headquartered in New Delhi, India. It has following business segments: Natural Gas, Liquid Hydrocarbon, Liquefied petroleum gas Transmission, Petrochemical, City Gas Distribution, Exploration and Production, GAILTEL and Electricity Generation. GAIL has been conferred with the Maharatna status on 1 Feb 2013, by the Government of India. Currently only six other Public Sector Enterprises (PSEs) enjoy this coveted status amongst all central CPSEs. SOURCES OF FUNDS