Directors Report of Indraprastha Gas Ltd.
Mar 31, 2023
Your Directors have pleasure in presenting the Twenty-fourth Annual Report and the Company''s audited financial statements for the Financial Year ended March 31,2023
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During the year, the Company recorded sales as under: |
Figures in Million Standard Cubic Meters (mmscm) |
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|
Product |
For the Year 31 March 2023 |
For the Year 31 March 2022 |
% Change (YoY) |
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Compressed Natural Gas (CNG) |
2208.92 |
1846.83 |
19.61 |
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Piped Natural Gas (PNG) |
743.04 |
703.97 |
5.55 |
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Total |
2951.96 |
2550.80 |
15.73 |
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Average Sales / per day (mmscmd) |
8.09 |
6.99 |
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Financial Results |
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The Company''s financial performance for the year ended March 31,2023 is summarised below: |
(in crores) |
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|
Items |
« |
For the Year 31 March 2023 |
For the Year 31 March 2022 |
|
Net Sales & Other Income |
14,407.76 |
7925.00 |
|
|
Profit before Depreciation & Tax |
2,291.10 |
2082.94 |
|
|
Depreciation |
363.36 |
317.06 |
|
|
Profit before tax |
1927.74 |
1765.88 |
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Provision for tax |
482.72 |
450.93 |
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|
Profit after tax |
1445.02 |
1314.95 |
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Other comprehensive income |
0.39 |
1.35 |
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Total comprehensive income |
1445.41 |
1316.30 |
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Retained Earnings - opening balance |
6492.65 |
5428.35 |
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Add : Profit for the period |
1445.02 |
1314.95 |
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Profit available for appropriations |
7937.67 |
6743.30 |
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Appropriations: |
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Dividends |
1295.00 |
252.00 |
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Corporate dividend tax |
- |
- |
|
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Transferred to general reserve |
- |
- |
|
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Other comprehensive income recognised directly in retained earnings |
0.39 |
1.35 |
|
|
Retained Earnings - closing balance |
6643.06 |
6492.65 |
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During the year, the gross turnover of the Company has increased from Rs. 8442.83 Crores in FY 2021-22 to Rs. 15542.67 Crores in FY 2022-23 showing an increase of 84.09%.
The Profit After Tax (PAT) increased by 9.89% from Rs. 1314.95 Crores in FY 2021-22 to Rs. 1445.02 Crores in FY 2022-23.
The Company has prepared the Consolidated Financial Statements also which includes the Company''s share of profit in its Associates combined on an equity method in accordance with Ind AS 28 - "Investment in Associates and Joint Ventures". The consolidated PAT during FY 2022-23 is Rs. 1639.65 Crores against Rs. 1502.27 Crores in the previous year.
The Board of Directors has not recommended final dividend for FY 2022-23 as during the financial year, the Company has declared two interim dividends of ''210 crores (''3 per share) & ''700 crores (''10 per share) in the months of January & March, respectively.
The Company has Dividend Distribution Policy in terms of the requirement of SEBI (Listing Obligations Disclosure Requirements) Regulations, 2015. The Policy is available on the website of the Company under the web-link: https://www. iglonline.net/uploads/files/Dividend-Distribution-Policy.pdf
Compressed Natural Gas Business
During the year, your Company augmented CNG infrastructure in its Geographical Areas. The Company achieved a new milestone by setting up 792th CNG station in FY 2022-23. In FY 22-23, 81 new CNG stations were commissioned and capacity enhancement/upgradation was done at 26 numbers CNG stations, the highest ever in a financial year. With these achievements, the Company has achieved total compression capacity of 97 lacs kgs per day and is catering to around 17 Lacs vehicles.
The Company provides prepaid card facility for its CNG customers in order to promote digital payments. Till now more than 175000 prepaid cards are under circulation
catering to approx. 1.9 lacs vehicles. Company has taken more initiatives in Digital Payments at CNG stations for the benefit of customers, wherein UPI payment can be made at CNG stations through wallet payments mode. The Company has also tied up with Bhim UPI for enabling UPI payments collection from all modes of payment. The combined effort towards digital payment collection has helped in a growth of 25% in digital payment collection this year vis-a-vis last year.
Company has conducted joint promotion activities with Maruti, Bajaj, Mahindra, Ford and Hyundai at the CNG stations. Due to constant interactions with the car manufacturers, they have launched company fitted CNG variants, which are becoming popular among the customers and thus boosting the sales of CNG.
The Company has conducted pilot project in FY 22-23 with one of the aggregator to integrate our CNG dispensers with the POS machines through which customers are getting automated receipt after refuelling. This has increased the customer convenience at large.
PNG - Domestic Connections
PNG continued to be focus area of the Company during FY 2021-22. The Company provided more than 3.10 Lacs new connections during the year 2022-23. In order to create the PNG awareness further amongst target customers, a successful campaign was run during the year.
Your Company increased its steel pipeline network from 1,571 kms in FY 2021-22 to 1,868 kms in FY 2022-23 and its MDPE network from 17,240 kms in FY 2021-22 to 20,632 kms in FY 2022-23.
especially targeting urban villages/ rural areas, women''s meet, display of IGL promotional boards with QR codes across residential societies, bulk messaging to potential customers, circulation of advertisement banners & messages on RWA WhatsApp group, promoting registration through IGL website & call- centres and launching of customer-centric attractive registration schemes to motivate customers to opt PNG.
While continuing with its mission to enhance customer experience, Your Company achieved significant milestones by leveraging technology and embracing digital innovations. OTP and e-POD based bill delivery has been implemented for secure and efficient communication. The bilingual new PNG bill form caters to diverse language preferences, ensuring effective communication with the customers. Your company surpassed the milestone of 1 million electronic bill delivery subscribers, demonstrating the commitment to embracing modern platforms. Online payments reached an impressive 97% adoption rate, highlighting the convenience and ease of Company''s digital payment options. Furthermore, selfbilling option was promoted through digital awareness camps, empowering customers to generate accurate bills at their convenience. These accomplishments exemplify your company''s dedication to leveraging technology and customer-centric solutions, driving an exceptional experience for the valued customers.
The Company had total 23.70 Lakh connections in Delhi & other geographical areas as on March 31,2023.
PNG - Commercial & Industrial
During the year, your Company continued its thrust on the Commercial & Industrial segment which is one of the
potential growth areas in the upcoming years. Your Company achieved sales volume of 292 MMSCM in Industrial Segment in FY 2022-23. In Commercial segment your company achieved a growth of around 30% in sales volume i.e. from 50.81 MMSCM in FY 2021-22 to 72.25 MMSCM in FY 202223. In terms of number of customers, the industrial customer base increased from 3358 in March 2022 to 3,913 in March, 2023 and commercial customer base increased from 4357 in March, 2022 to 5,108 in March 2023.
In Delhi, Delhi Pollution Control Committee (DPCC) has banned all other industrial fuels except PNG and has advised all industrial customers (wherever PNG is available) to switchover to PNG. The Commission for Air Quality Management (CAQM) has also directed switching over of DG sets to PNG and Dual fuel (PNG Diesel) mode in Delhi and NCR. Your Company has efficiently co-ordinated to implement the mandate given by DPCC and the CAQM by facilitating industrial customers for smooth switchover to PNG supply. In this regard, your Company has been able to convert all polluting industries located in NCT of Delhi to PNG supply. In order to curb down air-pollution levels and to increase natural gas volumes, your Company has targeted diesel genset segment, wherein PNG is replacing usage of diesel in gensets. IGL''s PNG network is widely available among various Industrial & Commercial clusters of Delhi and NCR towns of Ghaziabad, Gautam Budh Nagar,Hapur, Muzaffarnagar, Gurugram, Rewari & Karnal. Your Company is working with a focused approach to further expand/ strengthen pipeline network by providing last mile connectivity to the Industrial & Commercial establishments in existing areas where pipeline grid is available and expand pipeline network to cater to other industrial areas.
In industrial & commercial segment 2110 new registrations were completed during the FY 2022-23 and pipeline laying was started in new areas like Hapur in Uttar Pradesh, Mahipalpur, & Paharganj in Delhi. Your Company is also expanding its network to new Geographical Areas (GAs) like Muzzaffarnagar, Meerut & Shamli, Kanpur (other than area already authorized), Fatehpur & Hamirpur, Ajmer, Rajsamand & Pali,and Banda & Chitrakoot to cater the demand of Industrial & Commercial segment.
Your Company is also working in a collaborative and participatory approach with state Pollution Control Boards, so as to work out an action plan to convert all industrial and commercial units to PNG (wherever IGL''s PNG network is available). To further expand its footprint, your Company has been able to execute Gas Sale Agreements (GSA) with Industrial & Commercial Customers in Karnal, Gurugram, Rewari & Ajmer Geographical Areas (GAs) and also started supplying PNG which would facilitate increase in consumption of Natural Gas (NG) volumes.
Central U. P. Gas Limited (CUGL)
CUGL is engaged in City Gas Distribution in the cities of Kanpur, Bareilly, Jhansi and Unnao in Uttar Pradesh. Your Company holds 50% of the paid-up equity share capital of CUGL.
CUGL achieved a gross turnover of Rs. 746.71 Crores and Profit After Tax of Rs. 85.36 Crores for the financial year ended March 31,2023.
Maharashtra Natural Gas Limited (MNGL)
MNGL is in City Gas Distribution business in Pune, Pimpri, Chinchwad, Chakan, Talegaon and Hinjewadi, Nasik GA (Nasik, Dhule & part of Valsad), Sindhudurg GA in the state of Maharashtra and Ramanagara GA in the state of Karnataka. Your Company holds 50% of paid-up equity share capital of MNGL.
MNGL achieved a gross turnover of Rs. 2700.19 Crores and Profit After Tax of Rs. 421.91 Crores for the financial year ended March 31, 2023.
The statement containing the salient features of the financial statements of Company''s Associates pursuant to the first proviso to sub-section (3) of Section 129, is appended as Annexure 1 to this Report.
In line with Company''s mission and vision, your Company has been working on various new strategic and business opportunities to secure its position in dynamic and competitive environment and is looking for organic as well as inorganic growth as part of its corporate strategy. Further, in line with government''s mission to achieve net zero, your company has been working on various projects aiming to reduce carbon emissions.
EV Infrastructure & EV landscape:
As per Company''s diversification strategy, your company is looking forward to setup EV Charging facilities at various sites (including IGL CNG Stations); your company has already commissioned 4 fixed EV Charging stations in NCT of Delhi which are operational. More number of fixed EV Chargers
for various vehicle segments are under installation at several sites in Delhi.
Your Company has already rolled out its battery swapping facility for 2 Wheeler segment in collaboration with leading EV OEM under the name "Energy Cafe". 2 Nos. of Battery swapping facilities have been installed and commissioned. It is planned to commission more battery swapping facilities in near future.
Besides above, in order to explore the investment opportunities in EV value chain viz. EV Charging Infrastructure, EV - 2W/3W manufacturing, EV Components, Battery Manufacturing/Assembling Manufacturing of EV Chargers etc., your company is in discussion with reputed parties for possible collaborations.
Apart from above, your Company has tied-up with United Nations Development Programme (UNDP) for setting up EV chargers at IGL CNG stations.
Your Company has also been appointed as a Nodal agency by Delhi Government to develop EV Charging infrastructure in two districts of Delhi and Govt. Lands are being allocated to IGL for setting up of EV charging stations.
Renewable Space:
Your Company is also exploring usage of renewable energy source in place of conventional grid power, which will be a step towards carbon emission reduction and net zero.
In addition, IGL has installed and commissioned rooftop solar power plant of 500 KW at one of the Gaushalas in Delhi and on similar lines few more rooftop solar power facilities of up to total 5 MW would be installed at suitable identified sites in Delhi. IGL has also installed a 21 KW solar power plant at IGL Bhawan rooftop. Your company is also exploring investment opportunities in renewable energy projects like solar power generation plants.
Long-Haul Transportation:
Your Company is actively exploring conversion of Long Haul Transport from pollutant fuel (Diesel) to cleaner fuel (CNG) of various State Transport Undertaking (STU''s) towards conversion of their vehicles on CNG. A diesel bus of Rajasthan State Road Transport Corporation (RSRTC) has been converted on CNG as Proof of Concept. IGL is also in discussion with possible stakeholders like private owners of tractors, CNG kit retro-fitters, CNG Kit manufacturers for conversion of Diesel tractors onto CNG. With the recent easing of CNG prices, it is envisaged that this activity of conversion will pick up pace.
Green Hydrogen:
Your Company is also exploring the possibilities of putting up Green Hydrogen generation plant for blending with natural gas for which a detailed feasibility study has been carried out by a leading consultant and a detailed assessment of green hydrogen project is being carried out with subject matter experts (SME). A pilot project on production of Green Hydrogen and blending of hydrogen in IGL gas network is planned at Dasna, Ghaziabad. Your Company has entered into an MOU with ACME Group to jointly explore the potential business opportunities of green hydrogen. The companies will work jointly to promote the adoption by customers and create demand for green hydrogen in the Country.
LNG/LCNG:
To develop LNG/LCNG eco system, your company has setup one LNG/LCNG station at Ajmer and commercial operations have also started. In addition, 5 more locations on Golden Quadrilateral (GQ) Highway are being identified towards setting up of LNG/LCNG stations.
DIMTS has added 242 new CNG buses in FY 22-23 in their fleet which helps to increase CNG sales of the Company.
Maruti Suzuki, Hundai, Tata Motors & Toyota introduced new variants of CNG vehicle in FY 22-23 which has increased the CNG sales from private passenger vehicles and it expected to grow further in coming Financial Years.
Compressed Biogas (CBG):
Your Company is actively participating under SATAT (Sustainable Alternative towards Affordable Transportation) initiative of MoPNG & issued Letter of Intent(s) to facilitate waste management and promote use of Bio-Gas. The Company is pleased to mention that CBG offtake has been started from 3 Nos. of the CBG plants during last fiscal year under SATAT & CBG-CGD synchronization scheme. The company is also working on opening of new avenues by setting up of its own Compressed Biogas Plants under GOBAR-DHAN scheme & Waste to Energy initiatives of the government. Project activities for establishing of a 100
Tonnes Per Day, Waste to Energy plant has been initiated at one of the sites in Delhi under MoU with MCD.
Allied equipment manufacturing:
As, CGD sector is fast emerging and number of players are setting up CGD network in various parts of the country, there would be a good demand of CGD related equipment. Hence, as part of backward integration, IGL is exploring to setup manufacturing units of allied equipment. Manufacturing facilities for other equipment like compressors, type 4 cylinders etc. are also being explored keeping in view the sectoral as well as captive demand.
IGL has entered into an MOU with Bharat Heavy Electricals Limited (BHEL) for exploring setting up of manufacturing facility of Type IV light weight cylinders for CNG &/or Hydrogen use.
Joint Venture
Indraprastha Gas Limited (IGL) and Genesis Gas Solutions Private Limited (Genesis) have entered into Joint Venture Agreement to set up Integrated Smart Meter Manufacturing Plant with Capital Expenditure of Rs. 1100 millions. Joint Venture between IGL and Genesis have equity participation from both the partners in the ratio of 51:49, respectively. Initially, the Smart Meter Manufacturing Plant shall have installed capacity to manufacture 1 Million Meters annually, and is planned to be operational by April 2024.
A Joint Venture Company between IGL and Genesis named as IGL Genesis Technologies Limited has been incorporated on June 15, 2023.
Acquisition and Investment in other companies:
Your Company is actively considering acquisition of other CGD companies as and when any such opportunity is there in the market.
Your Company also intends to invest in budding Start-Ups to give a boost to the Government''s Start-Up India flagship initiative and to derive long term benefits.
In order to have substantial footprints outside the core business, many other avenues like ethanol production facility, Green third party logistics, acquisition of Project Management Consultant Company, etc. are also being explored.
Your Company has already laid a robust and advanced technology foundation to keep pace with the business needs amid continuous expansion in geographical areas and a growing customer base. The technology foundation based on SAP ERP as a business application and supported by a plethora of various employees and customer-centric portals, continue to support the mission and vision of IGL along with ensuring operational efficiency and customer delight.
Your Company has always appreciated the significance of effectively connecting with the customers for which there is no better way than having an updated, user-friendly and interactive website. IGL''s website was re-designed, redeveloped and enhanced with the latest web technology to render enriching user interface, optimized content and incorporating best practices and performance parameters.
Your Company has also focussed on upgrading other modes of customer interaction through IGL connect mobile app and customer portal to include new functionalities viz. improved user interface, digitalization of Gas sales agreement for Industrial and commercial customers, secure OTP-based user authentication etc. Various optimizations in CRM processes were also performed resulting 70% reduction in ticket-saving time to improve call centre Average Handling Time (AHT) etc
Your Company has also considered the upgradation of our Enterprise Content Management solution comprising of efficient business document storage and archival system, which has also enabled achieving generation and delivery of customer invoices at a record pace through various channels viz. email, SMS and WhatsApp.
The core infrastructure supporting the business applications was also upgraded and strengthened by the installation of the most advanced flash system-based Storage Area Network having very high throughput/performance and extremely low latency for enabling extremely fast reading and writing of data.
With an objective to achieve operational excellence and improve work efficiency, the existing Bill watch system and File tracking system were upgraded using open source technology and also integrated with SAP for enhanced track-ability, transparency and visibility of vendor invoices and file approval.
Your Company has been realizing the risk associated with the growing cyber security threats, which is currently the top concern of organizations globally. Various steps to enhance the security posture of your company have been taken including completion of the Vulnerability and Penetration Testing exercise, Cyber security Assessment, revamping of physical security in the data centre, Cyber security awareness training along with regular sharing of guidelines, updates, dos and don''ts on various communication channels.
Your Company realizes that the challenges of the future can be best met with competent and motivated human resources.
The Company is taking various HR initiatives to add value to its pool of human talent and integration of individual goals with that of Company. Company is reviewing HR and Employee related Policies /benefits for its employees to make them more competitive and aligned with industry practices.
Learning and Development of employees forms an integral part of the Company''s Policy towards accomplishing organizational goal. The continual imparting of training, both technical and non-technical, is necessary for the growth of employees. During the year, employees were provided with the best of trainings viz. Nayi Urja, Nayi Disha, Cathodic Protection, HSE, Management Development Program (MDPs) LNG/ EV / Hydrogen etc.
During the year, employees were encouraged to participate in various events like Cyclothon, IGL Cricket Tournament, Delhi Half Marathon, Preventive Health Check-ups etc. to take care of employee''s health & fitness.
The Company also inducted various young professionals at entry level to infuse talent in the professional arena. The comprehensive class room as well as on-site induction training has also been imparted to new GETs prior to their deployment. Your Company has maintained harmonious cordial and healthy relations among employees.
Your Company recognizes and appreciates the contribution of its employees in its growth path.
Health Safety and Environment (HSE)
Your Company emphasizes creating safety awareness among consumers by organizing safety awareness camps at PNG customer doorsteps and safety camps at CNG stations to sensitize CNG consumers. To educate the community and society at large, your company also broadcasts safety messages from time to time through FM radio, print media, digital media, and social media.
Safety is a line responsibility, so all employees of your organization are responsible and accountable for safety, health, and environmental protection. They demonstrate strict adherence to the HSE policy.
The Company has stressed the importance of implementing the Nine Life Saving Rules to further strengthen site safety requirements. It has been continually improving to create a healthy and safe working environment across all installations.
For all newly allocated geographical areas and for the NCT of Delhi & NCR Geographical Area, your company has had its Emergency Response and Disaster Management Plan (ERDMP) approved by a PNGRB-approved third-party inspection agency. Emergency response and preparedness are frequently assessed by conducting mock drills at regular intervals.
Being one of the largest and most matured CGD companies, your company has also participated in various conferences and workshops to make the new City Gas Distribution companies, especially the ones promoted by OMCs, aware about the challenges and best safety practices involved in the City gas distribution sector.
In recognition of its efforts towards Health, Safety, and Environment, your company was awarded the Safety Innovation Award from the prestigious Institute of Engineers (IOE) and the Certificate of Appreciation from the National Safety Council (NSC) in 2022.
Your Company is an ISO 45001:2018, ISO 9001:2015, ISO 14001:2015, and ISO 50001:2018 certified company. This demonstrates the highest level of structure and commitment from all levels of the organization to keep safety, quality, environment, and energy management systems as its top priority and value.
The company adheres to all legal and statutory requirements applicable to its business operations as a minimum standard and aspires to achieve recognized world-class performance.
Corporate Social Responsibility
Your Company is abundantly cognisant of its Corporate Social Responsibility (CSR) that explores ethical and social aspects of its action and impact that it would make on the society. For your company, CSR aims to contribute to societal goals by engaging in primary focus areas such as health, education, empowerment of women and underprivileged, skill development on which most of the CSR programmes were focussed during the FY 2022-23.
Your Company undertook flagship project "IGL Swastha Saarthi" wherein the preventive healthcare program was conducted for auto and taxi drivers in Delhi and NCR region involving medical check-up camps at various CNG stations. Your company also reached out to various communities and villages through healthcare CSR programmes like "Jan Aarogyam" and "Nayan Hans". Through "Project Roshni", IGL contributed towards preventive eye care and health checkup for students of government schools in Karnal district. In addition, healthcare initiatives for communities have been taken in various new geographical areas where IGL has started its operations. The company has also focused on empowerment of specially abled across its geographical areas of operation by providing them artificial limbs and special skills.
Considering the need to empower women, IGL contributed in imparting Self Defence training program for school girls and also providing them various skills to enhance employability. Your company has special focus on employment enhancing skill development programmes for underprivileged sections of the society, wherein skills relating to gas plumbing, fitter,
tailoring etc. were provided. In addition, your company has also been supporting meritorious students from underprivileged strata of society for specialized coaching for entrance examinations for engineering and civil services examinations.
The annual report on CSR activities in accordance with the Companies (Corporate Social Responsibility Policy) Rules, 2014, is appended as Annexure 2 to this report.
Directors Responsibility Statement
Pursuant to the provisions of Section 134 (5) of the Companies Act, 2013, your Directors hereby confirm that:
i. In the preparation of Annual Accounts for the financial year ended March 31, 2023, the applicable accounting standards have been followed;
ii. They have selected such accounting policies and applied them consistently except where otherwise stated in the Notes to Accounts and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period;
iii. They have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv. They have prepared the Annual Accounts for the Financial Year ended March 31,2023 on a going concern basis;
v. They have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and
vi. They had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
Shri R.K. Jain nominee of GAIL (India) Limited (GAIL) was appointed as Chairman of the Company w.e.f. January 14, 2023. Shri Kamal Kishore Chatiwal, nominee of GAIL, was appointed as Managing Director of the Company w.e.f. June 15, 2023, Shri N. Ramakrishnan, nominee of BPCL, was appointed as Director w.e.f. March 30, 2023 and Shri Shyam Agrawal was appointed as an Independent Director of the Company w.e.f. December 6, 2022. Shareholders of the Company have also approved the appointments through Postal Ballot of Shri N. Ramakrishnan & Shri Shyam Agrawal as Director and Independent Director of the Company, respectively.
Shri Arun Kumar Singh ceased as Chairman and Director of the Company w.e.f. October 23, 2022. Shri Sukhmal Jain was appointed as Chairman of the Company w.e.f. October 23, 2022 and ceased as Chairman w.e.f. January 14, 2023 and Director w.e.f. January 19, 2023. Shri Sanjay Kumar ceased to be Managing Director of the Company w.e.f. June 15, 2023.
The Board takes this opportunity to place on record its appreciation for valuable contribution made by Shri Arun Kumar Singh, Shri Sukhmal Jain and Shri Sanjay Kumar during their tenure as the Directors of the Company
The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as provided under section 149(6) of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, (hereinafter referred to as the "Listing Regulations").
The details of programmes for familiarization of Independent Directors with the Company are put up on the website of the Company, i.e., http://www.iglonline.net/7english/5000_ media/Investor_Relations/Familiarization-Programmes-for-Independent-Directors.pdf
The Nomination & Remuneration Committee considers various criteria such as Knowledge/skill required, experience, Minimum educational qualification, age, role in this company, gender, other requirements as per Companies Act, 2013 and SEBI LODR while recommending the name of the Independent Directors.
The Board of Directors carried out the evaluation of every Director, Committees of Board and the Board as a whole, based on the laid down criteria of performance evaluation.
In the opinion of the Board of Directors, independent directors have required integrity, expertise and experience.
As per the requirement of the Listing Regulations, a detailed Report on Corporate Governance and certificate regarding compliance of conditions of Corporate Governance are annexed as part of the Annual Report.
The Auditors'' Certificate on Corporate Governance for FY 2022-23 of M/s P.P. Agarwal & Co., Practicing Company Secretaries is self-explanatory and does not call for any further comments.
Business Responsibility and Sustainability Report
Detailed Report on Business Responsibility and Sustainability Report is annexed as part of the Annual Report.
During the financial year 2022-23, your Company has not accepted any deposit within the meaning of Sections 73 and 74 of the Companies Act, 2013 read together with the Companies (Acceptance of Deposits) Rules, 2014.
Particulars of Loans, Guarantees or Investments
During the financial year 2022-23, your Company has not granted loans nor given guarantee nor made any investments.
Amount which the Company proposes to carry to any Reserves, if any
For the financial year 2022-23, your Company has not transferred any amount to the general reserve of the Company.
Number of Meetings of the Board and Audit Committee
The details of the number of meetings of the Board and Audit Committee held during the financial year ended March 31, 2023 and composition of Audit Committee are given in Corporate Governance Report.
Policy on materiality of Related Party Transactions and on dealing with Related Party Transactions has been disclosed on the website of the Company at: - https://www.iglonline. net/uploads/files/Related_Party_Policy.pdf
Details of transactions with related parties are being disclosed separately in the Annual Report. As per Regulation 23 of Listing Regulations, prior approval of Shareholders has been taken for Material Related Party Transactions and subsequent material modifications, if any, for the Financial Year 2023-24.
Prevention of Sexual Harassment at Workplace
As per the requirement of The Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 and Rules made thereunder, your Company has constituted Internal Complaints Committee (ICC). During the FY 202223, no complaint with allegation of sexual harassment was received by the Company.
Risk Management and Internal Financial Control Adequacy
Your Company has Risk Management System in place including the Risk Policy & identification of the Risks which are reviewed periodically. The Company has also Risk Management Committee as per the requirement of the Listing Regulations.
Your Company has laid down a set of standards, processes and structure for internal financial control across the organization and ensures that the same are adequate and operating effectively.
The Company has a well-defined Vigilance framework which provides a platform to the employees, directors, vendors, suppliers and other stakeholders of the Company to come forward and raise their genuine concerns without any fear of retaliation and victimization. The Company has engaged an independent third party service provider for complaint management under the whistle-blower platform. The details of the Whistle Blower Policy are available on the website of the Company: www.iglonline.net. Besides Whistle Blower Policy, the Company has also framed Vigil Mechanism policy under which the stakeholders can lodge their complaint(s) to Chief Ethics & Vigilance Officer of the Company.
Your Company had appointed M/s Chandra Wadhwa & Co, New Delhi as Cost Auditors for the FY 2022-23.
As per Section 148 read with Companies (Audit & Auditors) Rules, 2014 and other applicable provisions, if any, of the Companies Act, 2013, the Board of Directors of your Company has re-appointed M/s Chandra Wadhwa & Co, New Delhi, Cost Accountants, as the Cost Auditors of the Company for the FY 2023-24. The remuneration proposed to be paid to the
Cost Auditors is subject to the ratification by the members at the ensuing Annual General Meeting of the Company.
Your Company is maintaining cost records as specified by the Central Government under Section 148 of the Companies Act, 2013.
Secretarial Auditors and Secretarial Audit Report
Pursuant to Section 204 of the Companies Act, 2013, your Company had appointed M/s P.P. Agarwal & Co., Practicing Company Secretaries, New Delhi, as its Secretarial Auditors to conduct the Secretarial Audit of the Company for the FY 2022-23. The Report of Secretarial Auditor for the FY 2022-23 is appended as Annexure 3 to this report.
Remarks referred to in the Secretarial Auditors'' Report for FY 2022-23 of M/s P.P. Agarwal & Co., Practicing Company Secretaries are self-explanatory and do not call for any further comments.
Disclosures Regarding Remuneration
Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) and 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is appended as Annexure 4 to this report.
The Annual Return of the Company as on March 31, 2023, in Form MGT 7, in accordance with the Section 92 (3) of the Companies Act, 2013 read with Companies (Management and Administration) Rules, 2014 is available on the website of the Company.
In exercise of powers conferred by Section 139 of the Companies Act, 2013, the Comptroller and Auditor General of India (CAG) has to appoint Statutory Auditors of the Company for the FY 2023-24.
The Notes on financial statements referred to in the Auditors'' Report for FY 2022-23 of M/s Datta Singla & Co., Chartered Accountants are self-explanatory and do not call for any further comments.
Review and Comments of CAG, on Standalone and Consolidated financial statements for the FY 2022-23 form part of financial statements of the Company.
Conservation of Energy and Technology Absorption, Foreign Exchange Earnings and Outgo
The information in accordance with the provisions of Section 134 (3) (m) of the Companies Act, 2013 read with Rule (8) of the Companies (Accounts) Rules, 2014 is appended as Annexure 5 to this report.
Your Directors express their gratitude to the Central Government, State Governments of NCT of Delhi, Uttar Pradesh, Haryana & Rajasthan, Ministry of Petroleum & Natural Gas, Petroleum and Natural Gas Regulatory Board
and Promoter Companies (GAIL & BPCL) for their continuous guidance & support throughout the year.
The Directors also acknowledge the support of all Statutory & Local Authorities, Bankers, Media, Station Operators & their employees, contractors, vendors and suppliers.
The Directors place on record their deep appreciation towards IGL''s valued customers for their continued patronage support and look forward to the continuance of this relationship in future also.
The Directors wish to express their gratitude to all the shareholders for their continued trust and support.
The Directors also sincerely acknowledge the contributions made by all the employees of IGL for their dedicated services to the Company.
For and on behalf of Board of Directors
Sd/- Sd/-
KAMAL KISHORE CHATIWAL PAWAN KUMAR
MANAGING DIRECTOR DIRECTOR (COMMERCIAL)
Place: New Delhi Date: August 22, 2023
Mar 31, 2022
Your Directors have pleasure in presenting the Twenty-third Annual Report and the Company''s audited financial statements for the Financial Year ended March 31,2022
During the year, the Company recorded sales as under:
|
Figures in Million Standard Cubic Meters (mmscm) |
|||
|
Product |
For the Year 31 March 2022 |
For the Year 31 March 2021 |
% Change(YoY) |
|
Compressed Natural Gas (CNG) |
1846.83 |
1357.00 |
36.10 |
|
Piped Natural Gas (PNG) |
703.97 |
586.74 |
19.98 |
|
Total |
2550.80 |
1943.74 |
31.23 |
|
Average Sales / per day (mmscmd) |
6.99 |
5.33 |
|
The Company''s financial performance for the year ended March 31,2022 is summarised below:
|
(Rs. in Crores) |
||
|
Items |
For the Year 31 March 2022 |
For the Year 31 March 2021 |
|
Net Sales & Other Income |
7925.00 |
5091.03 |
|
Profit before Depreciation & Tax |
2082.94 |
1621.88 |
|
Depreciation |
317.06 |
290.39 |
|
Profit before tax |
1765.88 |
1331.49 |
|
Provision for tax |
450.93 |
325.84 |
|
Profit after tax |
1314.95 |
1005.65 |
|
Other comprehensive income |
1.35 |
(0.16) |
|
Total comprehensive income |
1316.30 |
1005.49 |
|
Retained Earnings - opening balance |
5428.35 |
4618.86 |
|
Add : Profit for the period |
1314.95 |
1005.65 |
|
Profit available for appropriations Appropriations: |
6743.30 |
5624.51 |
|
Dividends |
252.00 |
196.00 |
|
Corporate dividend tax |
- |
- |
|
Transferred to general reserve |
- |
- |
|
Other comprehensive income recognised directly in retained earnings |
1.35 |
(0.16) |
|
Retained Earnings - closing balance |
6492.65 |
5428.35 |
During the year, the gross turnover of the Company has increased from Rs. 5408.91 Crores in FY 2020-21 to Rs. 8442.83 Crores in FY 2021-22 showing an increase of 56.09%.
The Profit After Tax (PAT) increased by 30.76% from Rs. 1005.65 Crores in FY 2020-21 to Rs. 1314.95 Crores in FY 2021-22.
The Company has prepared the Consolidated Financial Statements also which includes the Company''s share of profit in its Associates combined on an equity method in accordance with Ind AS 28 - "Investment in Associates and Joint Ventures". The consolidated PAT during FY 2021-22 is Rs. 1502.27 Crores against Rs. 1172.55 Crores in the previous year.
Your Directors are pleased to recommend the highest ever dividend of 275% (Rs. 5.50 per share). The proposed dividend would absorb Rs. 385 Crores.
The Company has Dividend Distribution Policy in terms of the requirement of SEBI (Listing Obligations Disclosure Requirements) Regulations, 2015. The Policy is available on the website of the Company under the web-link: https://www. iglonline.net/5000_media/Dividend-Distribution-Policy.pdf
Compressed Natural Gas Business
During the year, your Company augmented CNG infrastructure in its Geographical Areas. The Company achieved a new milestone by setting up 711th CNG station in FY 2021-22. In IGL history, highest number of CNG stations (105 numbers) was commissioned in FY 2021-22 and capacity enhancement/ upgradation was done at 25 numbers CNG stations, highest ever. With these achievements, the Company has achieved total compression capacity of 94 lacs kgs per day and is catering to 14.38 Lacs vehicles.
The Company provides prepaid card facility for its CNG customers in order to promote digital payments. Till now more than 165,000 prepaid cards are under circulation catering to approx. 1.8 lacs vehicles. Company has taken more initiatives in Digital Payments at CNG stations for the benefit of customers, wherein UPI payment can be made at CNG stations through wallet payments mode. The Company has also tied up with Bhim UPI for enabling UPI payments collection from all modes of payment. The combined effort towards digital payment collection has helped in a growth of 40% in digital payment collection this year vis-a-vis last year.
Company has conducted joint promotion activities with Maruti, Bajaj, Mahindra, Ford and Hyundai at the CNG stations. Due to constant interactions with the car manufacturers, they have launched company fitted CNG variants, which are becoming popular among the customers and thus boosting the sales of CNG.
The Company has started for the first time Mobile Refuelling Unit (MRU) for delivering CNG for the convenience of the customers.
The Company has taken new initiative by setting up CBG plants in Muzaffarnagar, Uttar Pradesh that will produce biogas by processing bio waste and fulfilling the energy needs.
Piped Natural Gas Business
PNG - Domestic Connections
PNG continued to be focus area of the Company during FY 2021-22. The Company provided more than 3.75 Lacs new connections which is the highest number of connections in a single financial year in the history provided by any CGD Company in the Country. In order to create the PNG awareness
further amongst target customers, a successful campaign was run during the year.
Your Company increased its steel pipeline network from 1,265 kms in FY 2020-21 to 1,571 kms in FY 2021-22 and its MDPE network from 15,262 kms in FY 2020-21 to 17,240 kms in FY 2021-22.
Your Company has taken many innovative initiatives like low cost promotional campaigns, promotions through e-rickshaw especially targeting urban villages/ rural areas, women''s meet, display of IGL promotional boards with QR codes across residential societies, bulk messaging to potential customers, circulation of advertisement banners & messages on RWA WhatsApp group, promoting registration through IGL website & call- centres and launching of customer-centric attractive registration schemes to motivate customers to opt PNG.
Your Company has futuristic customer centric approach and aims to be the best in the CGD sector. The year has witnessed launch of various digital initiatives which has also attributed to strengthen Customer Relationship Management. Special focus has been made to strengthen the meter reading, billing and bill delivery processes, which has led to the enhanced customer satisfaction. Path breaking self-billing option via IGL CONNECT mobile application has proven to be extremely useful and widely acknowledged in unprecedented pandemic situations like Covid-19. The Company also maintained safe & uninterrupted supply of gas during lockdown period.
The Company had total 20.60 Lakh connections in Delhi & other geographical areas as on March 31,2022.
PNG - Commercial & Industrial
During the year, your Company continued its thrust on the Commercial & Industrial segment which is one of the potential growth areas in the upcoming years. Your Company achieved a growth of around 20% in sales volume in Industrial Segment i.e. from 251.5 MMSCM in FY 20-21 to 301.02 MMSCM in FY 21-22. In Commercial segment your company achieved a growth of around 50% in sales volume i.e. from 33.54 MMSCM in FY 20-21 to 50.81 MMSCM in FY 2122. In terms of number of customers, the industrial customer base increased from 2,971 in March, 2021 to 3,358 in March, 2022 and commercial customer base increased from 3,716 in March, 2021 to 4,357 in March 2022.
In Delhi, Delhi Pollution Control Committee (DPCC) has banned all other industrial fuels except PNG and has advised all industrial customers (wherever PNG is available) to switchover to PNG. The Commission for Air Quality Management has also directed switching over of all industries in Delhi to PNG. Recently, the Commission has asked Uttar Pradesh, Haryana and Rajasthan to prepare a plan to shift industrial units to PNG. Your Company has efficiently coordinated to implement the mandate given by DPCC and the Commission for Air Quality Management by facilitating industrial customer for smooth switchover to PNG supply. In this regard, your Company has been able to convert all polluting industries located in NCT of Delhi to PNG Supply. In order to curb down air-pollution levels and to increase natural gas volumes, your Company has targeted diesel genset segment, wherein PNG would replace use of diesel
in gensets. IGL''s PNG network is widely available among various Industrial & Commercial clusters of Delhi and NCR towns of Ghaziabad, Gautam Budh Nagar, Muzaffarnagar, Gurugram, Rewari & Karnal. Your Company is working with a focused approach to further expand/ strengthen pipeline network by providing last mile connectivity to the Industrial & Commercial establishments in existing areas where pipeline grid is available and expand pipeline network to cater to other industrial areas.
In commercial segment 1220 new registrations were completed during the FY 2021-22 and pipeline laying was started in new areas like Connaught Place, Delhi Cantt., Mahipalpur. Your Company is also expanding its network to new Geographical Areas (GAs) like Muzzaffarnagar, Meerut & Shamli, Kanpur (other than area already authorized), Fatehpur & Hamirpur and Ajmer, Rajsamand & Pali to cater the demand of Industrial & Commercial segment.
Your Company is also working in a collaborative and participatory approach with state Pollution Control Boards, so as to work out an action plan to convert all industrial and commercial units to PNG (wherever IGL''s PNG network is available). To further expand its footprint, your Company has been able to execute Gas Sale Agreements (GSA) with Industrial Customers in Karnal, Gurugram, Rewari & Ajmer Geographical Areas (GAs) and also started supplying PNG which would facilitate increase in consumption of Natural Gas (NG) volumes. Your Company has also approached Yamuna Expressway Industrial Development Authority (YEIDA) and Noida International Airport Limited (NIAL) for augmentation of industrial & commercial segment sales volume.
Associate Companies Central U. P. Gas Limited (CUGL)
CUGL is engaged in City Gas Distribution in the cities of Kanpur, Bareilly, Jhansi and Unnao in Uttar Pradesh. Your Company holds 50% of the paid-up equity share capital of CUGL.
CUGL achieved a gross turnover of Rs. 509.57 Crores and Profit After Tax of Rs. 118.83 Crores for the financial year ended March 31,2022.
Maharashtra Natural Gas Limited (MNGL)
MNGL is in City Gas Distribution business in Pune, Pimpri, Chinchwad, Chakan, Talegaon and Hinjewadi, Nasik GA (Nasik, Dhule & part of Valsad), Sindhudurg GA in the state of Maharashtra and Ramanagara GA in the state of Karnataka. Your Company holds 50% of paid-up equity share capital of MNGL.
MNGL achieved a gross turnover of Rs. 1381.41 Crores and Profit After Tax of Rs. 332.62 Crores for the financial year ended March 31,2022.
The statement containing the salient features of the financial statements of Company''s Associates pursuant to the first proviso to sub-section (3) of Section 129, is appended as Annexure 1 to this Report.
In line with Company''s mission and vision, your Company has been working on various new strategic and business opportunities to secure its position in dynamic and competitive environment and is looking for organic as well as inorganic growth as part of its corporate strategy.
As, CGD sector is fast emerging and number of players are setting up CGD network in various parts of the country, there would be a good demand of CGD related equipments. Hence, as part of backward integration, IGL is exploring to setup manufacturing units of allied equipments like gas meters, compressors, type 4 cylinders etc. for meeting sectoral demand as well as captive demand.
Your Company is actively considering acquisition of other CGD companies as and when any such opportunity is there in the market.
The Company is also exploring usage of renewable energy source in place of grid power, which will be a step towards carbon emission reduction and net zero. A leading consultant has been hired to explore opportunities for equity participation in renewable energy projects. In addition, your Company has installed rooftop solar power plant of 500 KW at one of the Gaushalas in Delhi and on similar lines few more rooftop solar power facilities of upto total 5 MW would be installed at suitable identified sites in Delhi.
To promote inter-city public transport, your Company has successfully showcased use of Type IV cylinder long-haul
buses between Delhi and Dehradun. To take it further, IGL is actively exploring conversion of Long Haul Transport from pollutant fuel (Diesel) to cleaner fuel (CNG) of various State Transport Undertakings (STUs) towards conversion of their vehicles on CNG. In this regard, your Company is pleased to state that a diesel bus of Rajasthan State Road Transport Corporation (RSRTC) is converted on CNG, the said converted bus is operating successfully between Delhi-Jaipur route on a single fill.
DTC and DIMTS have added 300 and 850 new CNG buses respectively in their fleet which helps to increase CNG sales of the Company.
As per Company''s diversification strategy, IGL is looking forward to setup EV Charging facilities at various sites (including IGL CNG Stations), IGL has already installed and commissioned 4 fixed EV Charging stations in NCT of Delhi. IGL has also rolled out its battery swapping facility for 2 Wheeler and 3 Wheeler segment in collaboration with leading OEM - "M/s Kinetic Green Energy & Power Solution" under the name "Energy Cafe". Besides above, in order to explore the investment opportunities in EV value chain viz. battery manufacturing/ swapping, EVs manufacturing etc., your Company is in discussions with leading players in the field of EV landscape.
Your Company is also exploring the possibilities of putting up Green Hydrogen generation plant for blending with natural gas for which a detailed feasibility study has been carried out by a leading consultant and a detailed assessment of green hydrogen project is being carried out with subject matter experts.
In order to develop LNG/LCNG eco system, your Company has setup one LNG/LCNG station at Ajmer. In addition, five more locations on Golden Quadrilateral (GQ) Highway have been identified for setting up of LNG/LCNG stations.
The Company is actively participating under SATAT (Sustainable Alternative Towards Affordable Transportation) initiative of MoPNG and had issued Letter of Intent(s) to facilitate waste management and promote use of Bio-Gas. Your Company is pleased to mention that CBG offtake has been started from one of the CBG plants under SATAT & CBG-CGD synchronization scheme. IGL is also working on opening of new avenues by setting up of its own Compressed Biogas Plants under GOBAR-DHAN scheme & Waste to Energy initiatives of the government. In addition, Memorandum of Understanding (MoU) has been executed with Municipal Corporation of Delhi (MCD) towards setting up of Waste to Energy CBG plants in Delhi.
Your Company also intends to invest in budding Start-Ups to give a boost to the Government''s Start-Up India flagship
initiative and to derive long term benefits. In order to have substantial footprints outside the core business, many other avenues like ethanol production facility, Green third party logistics, production of Ammonia, acquisition of Project Management consultant company, etc. are being explored.
Your Company has continued strengthening the Information Technology platform with various initiatives under the vision of establishing a robust and advanced digital foundation supporting the rapid expansion of CNG and PNG customer base with focus on customer centricity. Your Company has already set up a plethora of applications catering the business requirement through enhancing employees work efficiency and customer delight.
The Company has moved forward in its journey towards digitalization of customer operations by implementing Digital Customer On-boarding through various mediums viz. web portal, IGL website etc. Your Company has developed a new web portal for Industrial & Commercial customers for digitalization of major stages & processes of customers on boarding including Expression of Interest (EOI), and other processes viz. lead creation, meter reading, billing, online payment etc. Customer creation, document upload, payment and security deposit functionalities have also been made available for both domestic and I&C customers on IGL corporate website and new "Field Mobility" app, which has been designed for automation of entire processes undertaken by field executives. This application has helped automation of feasibility check, replication of RFC and NG status to and from CRM application. Your Company has also added new and secure OTP based login feature for customers in customer portal which has also being extended to IGL website and field mobility app. Development for automation of refund process has also been extended on IGL connect mobile app.
The Company has also performed a major upgrade and migration of existing Enterprise Content management solution on new and robust hardware and software which has helped optimizing the customer invoice printing and sending process directly from archive server to multiple channels viz. sms, email, whatsapp etc. The pdf bills are now displayed directly from archive centre to customers on mobile app and other third party payment channels viz. Paytm etc.
Your Company has always appreciated the need to strengthen core infrastructure of IT landscape under Digital foundation initiatives wherein the WAN network connectivity between various IGL establishments, control rooms and site offices has now been transformed using SD WAN technology. This WAN technology helps in intelligently and securely directing
the traffic using a centralized controlling function powered by the latest software platform to ensure high availability, performance and control.
The Company has also strengthened the backup infrastructure for all the business applications using latest technology based appliance and software.
Your Company has equally emphasized the need to review and strengthen the cyber security posture of IGL amid rapid deployment of modern tools and technologies through implementation of latest and consolidated solution for end- point security, internet service with DDOS protection enablement and conducting Cyber Security Maturity Assessment along with VAPT exercise.
Our employees constitute the most valuable asset of the Company, and the backbone of the Organisation. The Company, being the leading employer amongst the CGD entities, is always committed to hiring and retaining the best talent. The Company has always put its people first and will continue to do so at all times.
In IGL, welfare and well-being of the employees is one of our prime concerns. The Company also continuously focus on improving HR practices and processes aimed at employee satisfaction through participation and engagement. During the year, various employee engagement programs were conducted, like Knowledge sharing sessions, saksham cyclothon, Vlog competition, Sports events, Yoga sessions etc.
The Company inducted various young professionals at entry level from top rated engineering colleges/ NITs through campus hiring
to infuse talent in the professional arena. The comprehensive class room as well as on-site induction training has also been imparted to new Graduate Engineer Trainees (GETs) at GAIL Training Institute (GTI), Noida.
During the FY 2021-22 under report, the Company had undertaken several initiatives to ensure the physical and mental well-being of its employees, taking into account the disruptions and uncertainties caused by the onslaught of COVID 19 pandemic. The Company maintained a congenial working environment by introducing, inter-alia, safe and flexible working conditions for the employees, which helped, encouraged and enabled them to contribute their best. It is also a matter of pride for the Company, and an index of job-satisfaction of the employees, that IGL''s attrition rate for the year was nominal.
IGL fosters a culture of continuous learning and personal development for its employees. With the objective of ensuring all-round development of the employees'' potentials, several initiatives were also taken, during the year, for promoting sports activities in the Company. Keeping in mind the challenging environment of today, when physical presence for trainings is not always possible due to multiple reasons, training programmes were undertaken in virtual mode without compromising on quality of the programs.
During the financial year, the Company also set up several new offices across new Geographical Areas (GAs) to ensure smooth and speedy operations and achievement of targets in a time bound manner.
To keep itself abreast with the changing industry practices, HR Policies are revisited and revised appropriately, from time to time. A salary benchmarking study is also underway with a view to designing an industry standard compensation structure for IGL employees. It is an endeavour of the Company to develop a positive Organizational culture and spread the same amongst all employees and stakeholders.
Health Safety and Environment (HSE)
Your Company give emphasis to create safety awareness amongst consumers by organising safety awareness camps at PNG customer doorstep, safety camps at CNG Stations for sensitising the CNG consumers. To educate community and society at large, your Company also broadcasts the safety messages on time to time basis through, FM radio, print media, digital media and social media.
Safety being a line responsibility, every employee of your organisation is responsible and accountable for Safety, Health and environmental protection thereby demonstrate strict adherence to the HSE Policy.
The Company has stressed upon the implementation of Nine Life Saving Rules to further strengthen the site safety requirements and has been continually improving to create a healthy and safe working environment across all the installations.
During the brief spell of Covid-19 pandemic in the beginning of Year 2022, your Company has ensured 24X7 uninterrupted gas supply to its customers by following Covid-19 prevention guidelines and hygiene standards to ensure safety of customers as well as employees.
For all newly allocated Geographical areas, your Company has got its Emergency Response and Disaster Management Plan (ERDMP) approved from PNGRB approved third party inspection agency in the FY 2021-22. The emergency response and preparedness is assessed frequently by conducting mock drills at regular intervals.
In recognising the efforts towards Health Safety and Environment, your company has been awarded with Safety Innovation Award from prestigious Institute of Engineers (IOE) and Certificate of Appreciation from National Safety Council (NSC) in FY 2021-22.
Your Company is an ISO 45001:2018, ISO 9001:2015, ISO 14001:2015 and ISO 50001:2018 certified company thereby demonstrating the highest level of commitment from all levels of organisation to keep the safety, quality, environment and energy management system its foremost priority and value.
The Company adheres to all legal and statutory requirements applicable to its business operations as a minimum standard and aspires to attain recognized world class performance.
Corporate Social Responsibility
Your Company is fully conscious of its Corporate Social Responsibility (CSR). For your Company, CSR is the responsibility of the organization that goes beyond its legal obligations and integrates social, environmental and ethical concerns into company''s business process.
Your Company has strategically aligned many of its CSR activities to create value for the society. Your Company had identified disaster management, health, education, empowerment of women & underprivileged and skill development as its major focus areas, on which most of the CSR programmes were focussed during the FY 2021-22.
As the situation caused by the COVID-19 turned very severe in the Nation during its second wave, being a socially responsible organization your company rose to the occasion and was at the forefront in contributing towards Nation''s fight against the pandemic. Your Company had set up Pressure Swing Adsorption (PSA) technology based Medical Oxygen Generation plants at 6 number of Hospitals. While 4 of these hospitals were in NCT of Delhi, 2 hospitals were in Uttar Pradesh. Your Company had also set up Cryogenic Liquid Medical Oxygen storage tanks at 2 Government Hospitals in NCT of Delhi. During the year, your company also contributed towards setting up of 2 number of Natural Gas run Cremation units at a Crematorium run by local municipal corporation. Your Company also contributed towards providing necessary relief material including meals to the needy people, oxygen concentrators, PPE kits, masks, Oxygen related infrastructure etc.
Apart from undertaking projects towards Covid-19 relief, your company also undertook several projects towards various other focus areas. Your company undertook a CSR project on providing artificial limbs & assistive devices to persons with disabilities in Pali, Karnal & Muzzaffarnagar. "Building Bonds through Gender Sensitization", has been a training programme for taxi, bus and auto drivers in Delhi, Noida & Gurugram aimed at making commute in public transport safer for the women. During FY 2021-22, your company extended this programme in district Rewari, Karnal
and Kaithal as well
Considering the ever growing demand for skilled manpower across sectors as a result of ''Make in India'' programme, your company undertook several CSR projects providing vocational skill development for unemployed & underprivileged youth, rural women in various fields. Your company has also been providing Gas plumbing training to the ITI students at IGL Gas Plumbing Training Centre. Your company has also been supporting meritorious students from under-privileged strata of society for specialized coaching for entrance examinations for medical, engineering and civil services examinations. Further, with an objective to promote sports, your company also contributed towards football training of underprivileged under 18 players.
The annual report on CSR activities in accordance with the Companies (Corporate Social Responsibility Policy) Rules, 2014, is appended as Annexure 2 to this report.
Directors Responsibility Statement
Pursuant to the provisions of Section 134 (5) of the Companies Act, 2013, your Directors hereby confirm that:
i. In the preparation of Annual Accounts for the financial year ended March 31, 2022, the applicable accounting standards have been followed;
ii. They have selected such accounting policies and applied them consistently except where otherwise stated in the Notes to Accounts and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period;
iii. They have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv. They have prepared the Annual Accounts for the Financial Year ended March 31,2022 on a going concern basis;
v. They have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and
vi. They had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
Shri Sanjay Kumar, nominee of Gail (India) Limited (GAIL), was appointed as Managing Director of the Company w.e.f. March 25, 2022 and Shri Pawan Kumar, nominee of Bharat Petroleum Corporation Limited (BPCL), was appointed as Director (Commercial) of the Company w.e.f. December 01, 2021. Shareholders of the Company have also approved through Postal Ballot appointment of Shri Sanjay Kumar as Managing Director of the Company and Shri Pawan Kumar as Director (Commercial) of the Company.
Shri A.K. Jana Ceased to be the Director of the Company w.e.f. March 25, 2022 and Shri Amit Garg ceased to be the Director of the Company w.e.f. December 01, 2021. Dr. A.K. Ambasht submitted his resignation and ceased as a Director of the Company w.e.f. July 01,2022.
The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as provided under section 149(6) of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, (hereinafter referred to as the "Listing Regulations").
The details of programmes for familiarization of Independent Directors with the Company are put up on the website of
the Company, i.e., http://www.iglonline.net/fenglish/5000_ media/Investor_Relations/Familiarization-Programmes-for-Independent-Directors.pdf
The Nomination & Remuneration Committee considers various criteria such as age, qualification, expertise, diversity in composition of Board and likely contribution to the Company while recommending the name of the Independent Directors.
The Board of Directors carried out the evaluation of every Director, Committees of Board and the Board as a whole, based on the laid down criteria of performance evaluation.
In the opinion of the Board of Directors, independent directors have required integrity, expertise and experience.
Corporate Governance
As per the requirement of the Listing Regulations, a detailed Report on Corporate Governance and certificate regarding compliance of conditions of Corporate Governance are annexed as part of the Annual Report.
The Auditors'' Certificate on Corporate Governance for FY 2021-22 of M/s P.P. Agarwal & Co., Practicing Company Secretaries is self-explanatory and does not call for any further comments.
Business Responsibility and Sustainability Report
Detailed Report on Business Responsibility and Sustainability Report is annexed as part of the Annual Report.
During the financial year 2021-22, your Company has not accepted any deposit within the meaning of Sections 73 and 74 of the Companies Act, 2013 read together with the Companies (Acceptance of Deposits) Rules, 2014.
Particulars of Loans, Guarantees or Investments
During the financial year 2021-22, your Company has not granted loans nor given guarantee nor made any investments.
Amount which the Company proposes to carry to any Reserves, if any
For the financial year 2021-22, your Company has not transferred any amount to the general reserve of the Company.
Number of Meetings of the Board and Audit Committee
The details of the number of meetings of the Board and Audit Committee held during the financial year ended March 31, 2022 and composition of Audit Committee are given in Corporate Governance Report.
Policy on materiality of Related Party Transactions and on dealing with Related Party Transactions has been disclosed on the website of the Company at: - https://www.iglonline. net/5000_media/Related%20Party%20Policy.pdf
Details of transactions with related parties are being disclosed separately in the Annual Report. One contract with GAIL during FY 2021-22 qualify as material transactions under Listing Regulations, the same is being placed for shareholders'' approval in the ensuing Annual General Meeting (AGM). As per amended Regulation 23 of Listing Regulations, prior approval of Shareholders has been taken in June 2022 for Material Related Party Transactions and subsequent material modifications, if any, for the Financial Year 2022-23.
Prevention of Sexual Harassment at Workplace
As per the requirement of The Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 and Rules made thereunder, your Company has constituted Internal Complaints Committee (ICC). During the FY 202122, no complaint with allegation of sexual harassment was received by the Company.
Risk Management and Internal Financial Control Adequacy
Your Company has Risk Management System in place including the Risk Policy & identification of the Risks which
are reviewed periodically. The Company has also Risk Management Committee as per the requirement of the Listing Regulations.
Your Company has laid down a set of standards, processes and structure for internal financial control across the organization and ensures that the same are adequate and operating effectively.
The Company has a well-defined Vigilance framework which provides a platform to the employees, directors, vendors, suppliers and other stakeholders of the Company to come forward and raise their genuine concerns without any fear of retaliation and victimization. The Company has engaged an independent third party service provider for complaint management under the whistle-blower platform. The details of the Whistle Blower Policy are available on the website of the Company: www.iglonline.net. Besides Whistle Blower Policy, the Company has also framed Vigil Mechanism policy under which the stakeholders can lodge their complaint(s) to Chief Ethics & Vigilance Officer of the Company.
Your Company had appointed M/s Chandra Wadhwa & Co, New Delhi as Cost Auditors for the FY 2021-22.
As per Section 148 read with Companies (Audit & Auditors) Rules, 2014 and other applicable provisions, if any, of the Companies Act, 2013, the Board of Directors of your Company has re-appointed M/s Chandra Wadhwa & Co, New Delhi, Cost Accountants, as the Cost Auditors of the Company for the FY 2022-23. The remuneration proposed to be paid to the
Cost Auditors is subject to the ratification by the members at the ensuing Annual General Meeting of the Company.
Your Company is maintaining cost records as specified by the Central Government under Section 148 of the Companies Act, 2013.
Secretarial Auditors and Secretarial Audit Report
Pursuant to Section 204 of the Companies Act, 2013, your Company had appointed M/s P.P. Agarwal & Co., Practicing Company Secretaries, New Delhi, as its Secretarial Auditors to conduct the Secretarial Audit of the Company for the FY 2021-22. The Report of Secretarial Auditor for the FY 2021-22 is appended as Annexure 3 to this report.
Remarks referred to in the Secretarial Auditors'' Report for FY 2021-22 of M/s P.P. Agarwal & Co., Practicing Company Secretaries are self-explanatory and do not call for any further comments.
Disclosures Regarding Remuneration
Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) and 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is appended as Annexure 4 to this report.
The Annual Return of the Company as on March 31, 2022, in Form MGT 7, in accordance with the Section 92 (3) of the Companies Act, 2013 read with Companies (Management and Administration) Rules, 2014 is available on the website of the Company.
In exercise of powers conferred by Section 139 of the Companies Act, 2013, the Comptroller and Auditor General of India (CAG) has to appoint Statutory Auditors of the Company for the FY 2022-23.
The Notes on financial statements referred to in the Auditors'' Report for FY 2021-22 of M/s Datta Singla & Co., Chartered Accountants are self-explanatory and do not call for any further comments.
Review and Comments of CAG, on Standalone and Consolidated financial statements for the FY 2021-22 form part of financial statements of the Company.
Conservation of Energy and Technology Absorption, Foreign Exchange Earnings and Outgo
The information in accordance with the provisions of Section 134 (3) (m) of the Companies Act, 2013 read with Rule (8) of the Companies (Accounts) Rules, 2014 is appended as Annexure 5 to this report.
Your Directors express their gratitude to the Central Government, State Governments of NCT of Delhi, Uttar Pradesh, Haryana & Rajasthan, Ministry of Petroleum &
Natural Gas, Petroleum and Natural Gas Regulatory Board and Promoter Companies (GAIL & BPCL) for their continuous guidance & support throughout the year.
The Directors also acknowledge the support of all Statutory & Local Authorities, Bankers, Media, Station Operators & their employees, contractors, vendors and suppliers.
The Directors place on record their deep appreciation towards IGL''s valued customers for their continued patronage support and look forward to the continuance of this relationship in future also.
The Directors wish to express their gratitude to all the shareholders for their continued trust and support.
The Directors also sincerely acknowledge the contributions made by all the employees of IGL for their dedicated services to the Company.
For and on behalf of Board of Directors
Sd/- Sd/-
Sanjay Kumar Pawan Kumar
Managing Director Director (Commercial)
Place: New Delhi Date August 24, 2022
Mar 31, 2021
Your Directors have pleasure in presenting the Twenty Second Annual Report and the Company''s audited financial statements for the Financial Year ended March 31,2021. The financial year 2020-21 witnessed lockdowns from time to time due to Covid-19 pandemic which affected overall operations of the Company. Despite challenges, the Company continued its operations and maintained uninterrupted gas supply to all its customers with safety.
During the year, the Company recorded sales as under:
|
Figures in Million Standard Cubic Meters (mmscm) |
|||
|
Product |
For the Year 31 March 2021 |
For the Year 31 March 2020 |
% Change(YoY) |
|
Compressed Natural Gas (CNG) |
1357.00 |
1737.80 |
- 21.91 |
|
Piped Natural Gas (PNG) |
586.74 |
619.05 |
- 5.22 |
|
Total |
1943.74 |
2356.85 |
- 17.53 |
|
Average Sales / per day (mmscmd) |
5.33 |
6.44 |
|
The Company''s financial performance for the year ended March 31,2021 is summarised below:
|
(Rs. in Crores) |
||
|
Items |
For the Year 31 March 2021 |
For the Year 31 March 2020 |
|
Net Sales & Other Income |
5091.03 |
6641.65 |
|
Profit before Depreciation & Tax |
1621.88 |
1667.90 |
|
Depreciation |
290.39 |
252.25 |
|
Profit before tax |
1331.49 |
1415.65 |
|
Provision for tax |
325.84 |
279.11 |
|
Profit after tax |
1005.65 |
1136.54 |
|
Other comprehensive income |
(0.16) |
(1.50) |
|
Total comprehensive income |
1005.49 |
1135.04 |
|
Retained Earnings - opening balance |
4618.86 |
3686.35 |
|
Add : Profit for the period |
1005.65 |
1136.54 |
|
Profit available for appropriations Appropriations: |
5624.51 |
4822.89 |
|
Dividends |
196.00 |
168.00 |
|
Corporate dividend tax |
- |
34.53 |
|
Transferred to general reserve |
- |
- |
|
Other comprehensive income recognised directly in retained earnings |
(0.16) |
(1.50) |
|
Retained Earnings - closing balance |
5428.35 |
4618.86 |
During the year, the gross turnover of the Company has decreased from Rs. 7131.29 Crores in FY 2019-20 to Rs. 5408.91 Crores in FY 2020-21 showing a decline of 24.15%.
The Profit After Tax (PAT) decreased by 11.52% from Rs. 1136.54 Crores in FY 2019-20 to Rs. 1005.65 Crores in FY 2020-21.
Covid -19 pandemic is the main reason for lower sales volume resulting in decrease in income and profit as compared to last Financial Year.
The Company has prepared the Consolidated Financial Statements also which includes the Company''s share of profit in its Associates combined on an equity method in accordance with Ind AS 28 - "Investment in Associates and Joint Ventures". The consolidated PAT during FY 2020-21 is Rs. 1172.55 Crores against Rs. 1248.99 Crores in the previous year.
Your Directors are pleased to recommend the highest ever dividend of 180% (Rs. 3.60 per share). The proposed dividend would absorb Rs. 252 Crores.
The Company has Dividend Distribution Policy in terms of the requirement of SEBI (Listing Obligations Disclosure Requirements) Regulations, 2015. The Policy is available on the website of the Company under the web-link: https://www. iglonline.net/5000_media/Dividend-Distribution-Policy.pdf
Compressed Natural Gas Business
During the year, your Company augmented CNG infrastructure in its Geographical Areas. The Company achieved a new milestone by setting up 612th CNG station
in FY 2020-21. The Company had compression capacity of 88 lacs kgs per day and was catering to 12.05 Lacs vehicles.
The Company provides prepaid card facility for its CNG customers in order to promote digital payments. Till now more than 155,000 prepaid cards are under circulation catering to approx. 1.7 lacs vehicles. Company has taken more initiatives in Digital Payments at CNG stations for the benefit of customers, wherein UPI payment can be made at CNG stations through wallet payments mode. The Company has also tied up with Bhim UPI for enabling UPI payments collection from all modes of payment. The combined effort towards digital payment collection has helped in a growth of 35% in digital payment collection this year vis-a-vis last year.
Company has conducted joint promotion activities with Maruti, Bajaj, Mahindra, Ford and Hyundai at the CNG stations. Due to constant interactions with the car manufacturers, they have launched Company fitted CNG variants, which are becoming very popular among the customers and thus boosting the sales of CNG.
The Company has started for the first time Mobile Refuelling Unit (MRU) for delivering CNG for the convenience of the customers.
Piped Natural Gas Business PNG - Domestic Connections
PNG continued to be focus area of the Company during FY 2020-21. The Company provided more than 3.10 Lacs new connections which is the highest number of connections in a single financial year in the history provided by any CGD
Company in the Country. In order to create the PNG awareness further amongst target customers, a successful campaign was run during the year.
Your Company increased its steel pipeline network from 1,150 kms in FY 2019-20 to 1,265 kms in FY 2020-21 and its MDPE network from 13,455 kms in FY 2019-20 to 15,262 kms in FY 2020-21.
Your Company has taken many innovative initiatives from digital marketing to door step-drive during this pandemic to motivate customers to opt PNG such as bulk messaging to potential customers, circulation of ad banners & messages on RWA WhatsApp group, promoting registration through IGL website & call- centres and launching of customer-centric attractive registration schemes.
Your Company has futuristic customer centric approach and aims to be the best in the CGD sector. The year has witnessed launch of various digital initiatives which has also attributed to strengthen Customer Relationship Management. Special focus has been made to strengthen the meter reading, billing and bill delivery processes, which has led to the enhanced customer satisfaction. Path breaking self-billing option via IGL CONNECT mobile application has proven to be extremely useful and widely acknowledged in unprecedented pandemic situations like Covid-19. The Company also maintained safe & uninterrupted supply of gas during lockdown period.
The Company had total 16.85 Lakh connections in Delhi & other geographical areas as on March 31,2021.
PNG - Commercial & Industrial
During the financial year, your Company continued its thrust on the Commercial & Industrial segment which is one of the potential growth areas in the coming years. Your Company achieved a growth of around 4.5% in sales volume in Industrial Segment & sales of 33.54 million scm in commercial segment during financial year 2020-2021. In terms of number of customers, the industrial customer base increased from 2,435 in March, 2020 to 2,971 in March, 2021 and commercial customer base increased from 3,143 in March, 2020 to 3,716 in March 2021.
In Delhi, Delhi Pollution Control Committee (DPCC) has banned all other industrial fuels except PNG and has advised all industrial customers (wherever PNG is available) to switchover to PNG. The Commission for Air Quality Management has also directed switching over of all industries in Delhi to PNG. Recently, the Commission has asked Uttar Pradesh, Haryana and Rajasthan to prepare a plan to shift industrial units to PNG. Your Company has efficiently coordinated to implement the mandate given by DPCC and the Commission for Air Quality Management by facilitating industrial customer for smooth switchover to PNG supply. In this regard, your Company has been able to convert all polluting industries located in NCT of Delhi on to PNG Supply. In order to curb down air-pollution levels and to increase natural gas volumes, your Company has targeted diesel genset segment, wherein PNG would replace use of diesel in gensets. IGL''s PNG network is widely available among various Industrial & Commercial clusters of Delhi and NCR towns of
Ghaziabad, Gautam Budh Nagar. Your Company is working with a focused approach to further expand/ strengthen pipeline network by providing last mile connectivity to the Industrial & Commercial establishments in existing areas where pipeline grid is available and expand pipeline network to cater to other industrial areas.
In commercial segment 1047 new registrations were completed during the FY 2020-21 and pipeline laying was started in new areas like Connaught Place, Delhi Cantt., Mahipalpur. Furthermore, your Company has installed more than 250 connections in Defence Establishments in Delhi Cantt. Area your Company is also expanding its network to new Geographical Areas (GAs) like Muzzaffarnagar, Meerut & Shamli, Kanpur (other than area already authorized), Fatehpur & Hamirpur and Ajmer, Rajsamand & Pali to cater the demand of Industrial & Commercial segment.
Your Company is also working in a collaborative and participatory approach with state Pollution Control Boards, so as to work out an action plan to convert all industrial and commercial units to PNG (wherever IGL''s PNG network is available). To further expand its footprint, your Company has been able to execute Gas Sale Agreements (GSA) with Industrial Customers in Karnal, Gurugram and Rewari Geographical Area (GA) and also started supplying PNG which would facilitate increase in consumption of Natural Gas (NG) volumes.
Associate Companies Central U. P. Gas Limited (CUGL)
CUGL is engaged in City Gas Distribution in the cities of Kanpur, Bareilly, Jhansi and Unnao in Uttar Pradesh. Your Company holds 50% of the paid-up equity share capital of CUGL.
CUGL achieved a gross turnover of Rs. 294.79 Crores and Profit After Tax of Rs. 78.62 Crores for the financial year ended March 31,2021.
Maharashtra Natural Gas Limited (MNGL)
MNGL is in City Gas Distribution business in Pune, Pimpri, Chinchwad, Chakan, Talegaon and Hinjewadi, Nasik GA (Nasik, Dhule & part of Valsad), Sindhudurg GA in the state of Maharashtra and Ramanagara GA in the state of Karnataka. Your Company holds 50% of paid-up equity share capital of MNGL.
MNGL achieved a gross turnover of Rs. 799.90 Crores and Profit After Tax of Rs. 172.98 Crores for the financial year ended March 31,2021.
The statement containing the salient features of the financial statements of Company''s Associates pursuant to the first proviso to sub-section (3) of Section 129, is appended as Annexure 1 to this Report.
Your Company has been looking for organic as well as inorganic growth as part of its corporate strategy.
Your Company is participating under SATAT (Sustainable Alternative towards Affordable Transportation) initiative of MoPNG & issued Letter of Intent(s) to facilitate waste management and promote use of Bio-Gas. Your Company is also working on opening of new avenues by setting up of its own Compressed Biogas Plants under Gobardhan scheme & Waste to Energy initiatives of the government.
The pilot project of running HCNG plant of IOCL in collaboration with IGL & DTC has been completed at Rajghat DTC depot, wherein 50 DIMTS buses were fuelled with HCNG. The findings and data related to improvements in vehicular emissions is being compiled by IOCL for submission to Supreme Court. IGL is also exploring the possibilities of putting up Green Hydrogen generation plant for blending with natural gas for which detailed technical study shall be conducted.
To promote inter-city public transport, IGL has successfully showcased use of Type IV cylinder long-haul buses between Delhi and Dehradun. To take it further, IGL is actively exploring conversion of Long Haul Transport from pollutant fuel (Diesel) to cleaner fuel (CNG) of various State Transport Undertakings (STU''s) and Private Transporters towards conversion of their vehicles on CNG.
As per diversification strategy, your Company is also looking forward to setup Electric Vehicles (EV) charging facilities at various sites (including IGL CNG Stations). IGL has already installed and commissioned two fixed EV Charging stations in NCT of Delhi. IGL plans to setup around 50 EV charging stations to cater two wheelers/ three wheelers by the end of this financial year.
Your Company is also looking forward for setting up of LNG/ LCNG stations on Golden Quadrilateral (GQ) Highway in it''s GAs.
The matter of taking over the entire CGD activities in Gurugram district from Haryana City Gas Distribution Ltd. is sub-judice in the Hon''ble Supreme court of India.
There are other growth drivers which shall contribute to the sales volume in all segments of the Company''s business.
It is expected that the price differential of CNG and liquid fuel will continue to drive the conversion of petrol-driven private vehicles to CNG mode. DTC and DIMTS have plans to add 1000 and 400 new CNG buses respectively in their fleet which would add to CNG sales of the Company. With the spread of CNG in new geographical areas, car manufacturers are coming out with new CNG variants cars.
In PNG domestic segment also, the Company is working aggressively to meet the target. Also, thrust will be given on bringing all services on a single digital platform for customers. All types of customer request will be entertained via mobile
application. Your Company is trying to make effective use of Artificial Intelligence to smoothen the process of customer interaction with IGL at various touchpoints.
The Company has achieved Minimum Work Programme (MWP) targets in its all geographical areas. In the coming years, it is expected that other State Pollution Control Boards mainly in NCR would also mandate use of PNG by Industrial Customers in line with DPCC. Recently, the Commission for Air Quality Management has asked the states of U.P., Haryana and Rajasthan to shift NCR industrial units to natural gas.
The Company has drawn strategy to diversify for future growth of the Company. The Company is also looking for expanding its operation through merger or acquisition of stakes in other companies in the country.
Your Company has been successful in fighting and overcoming all adversities and roadblocks brought by the global pandemic Covid-19 during this year through its strong technology foundation.
Your Company has enhanced and consolidated the hardware infrastructure hosting various critical business applications by migrating them to new and advanced servers equipped with higher processing capacity and reliability to support growing user base amid geographical expansion. Some of the applications have also been migrated to cloud for enhanced reliability and uninterrupted access to customers. Your Company has rolled out efficient collaboration platform through MS Teams and VPN for remote access of applications, facilitating online/virtual meetings.
Your Company has remained committed towards ensuring customer delight through continuous development towards improving customer experience in using the online services via mobile app and portal. The Company has been providing payment options through over 80 payment gateways. Online functionalities for Industrial and Commercial (I&C) customers have also been provided in existing customer portal and IGL website viz. customer on-boarding (new connection), online payments and complaints etc. I&C customers can also now submit meter reading via ''IGL Connect'' customer app. Mobile wallets based payment option for ease of making payment for I&C customers have also been added in customer app. Various enhancements have been made in existing customer portal viz. push notification facility regarding promotional offers, invoice generation, due date reminder etc. In order to provide secure login to customers, mobile OTP based validation mechanism has been introduced during signup process. A GPS based tracking mechanism has been provided through mobile app to track the meter readers in order to ensure traceability, tracking and improving efficiency of customer billing process.
Your Company has also successfully automated critical manual processes at IGL''s CNG stations by implementing DSA/DPR application, as a digital platform for daily sales and gas reconciliation, breakdown and shutdown reports etc.
Your Company values its human resources and is always committed in providing them an environment of learning and growth. Various welfare measures and employee oriented policies drive the human resources to deliver their best in achieving the organizational performance.
Your Company is taking care of its employees through different interventions. The Job description documentation exercise was also undertaken for unique & crucial positions across the organization level. The Company reviews from time to time compensation packages and other policies/facilities of its employees to make them more competitive and aligned with industry practices.
Learning and Development of employees form an integral part of the Company''s Policy towards accomplishing organizational goal. The continual imparting of training, both technical and nontechnical, is necessary for the growth of employees.
During the year, your Company inducted various young and senior level talented professionals to infuse knowledge, experience and talent in the professional sphere. The comprehensive Induction Training has also been imparted to new recruits.
During the year, despite Covid-19 pandemic, the employees were imparted with the best of trainings through virtual mode viz. Customer Delights, Customer Centricity, Building High Performance Team, other e-learning programmes etc.
During the year, employees were encouraged to participate in various sports events viz Cricket Matches, Delhi Half Marathon (online), Yoga Sessions etc. to take care of employees'' health & fitness. Online consultations with doctors, preventive sessions on Covid - 19, arrangements for Covid-19 (RT-PCR) Tests and post Covid Care Camps were also organized for employees during the pandemic. In addition to this facilitation has been made for essential requirement for Covid-19 like medicines, oxygen cylinders, plasma donation, blood donation, arrangement of foods etc.
Your Company has maintained a harmonious and cordial relation among its employees and appreciates the contribution of all employees in its growth path.
Health Safety and Environment (HSE)
Health Safety and Environment has always been on the top priority of your Company which extends to its customers and community around the various units and segments. Your Company is concerned with health of its workers, various stakeholders and community. Operating with compliance to all the applicable national and international codes of practice mobile training van. Vehicle kits testing camps are also organised free of cost for the CNG customers wherein safety awareness is created to encourage the customers for timely testing and maintenance of their vehicles including CNG kits and CNG cylinders. Further, safety messages are broadcasted through radio for the awareness of customers, stakeholders and community.
During the Covid-19 pandemic, your Company has ensured 24X7 uninterrupted gas supply to its customers by following Covid-19 prevention guidelines and hygiene standards to ensure safety of customers as well as employees. Customer service activities and departments of the Company remained functional throughout the lockdown period by making the use of digital platforms for meetings, reviews, awareness programs, trainings and customer services. To deal with any emergency, Emergency Control Centres (ECC) remained functional round the clock across Delhi & other geographical areas to respond promptly to any emergency. The emergency response and preparedness is assessed frequently by conducting mock drills regularly. In FY 2020-21, your Company has actively participated in off-site emergency mock drill at Dadri, Gautam Buddha Nagar (UP) in coordination with District authorities.
Your Company has been awarded with Safety Innovation Award by Institute of Engineers (IOE) and Certificate of Appreciation by National Safety Council (NSC) in FY 202021 for the contributions done in HSE field and creating new benchmarks.
and all the statutory guidelines with standardised procedures to create a safe workplace at various installations of your Company. Your Company is always encouraging the consumers and other stakeholders to use and promote natural gas which could be a major factor to control environmental pollution and to provide a greener habitat to future generations.
Your Company is committed to put constant efforts to train, educate the employees working for the Company to ensure safety at our operations. CNG and PNG customers are also covered in the training drives at their doorsteps through
Corporate Social Responsibility
Your Company is fully conscious of its Corporate Social Responsibility (CSR). In addition to carrying forward various CSR projects started in the earlier year, many new ones were also initiated in Covid-19 hit FY 2020-21.
Your Company has strategically aligned many of its CSR activities to create value for the society. Your Company has identified health, education, empowerment of women & underprivileged and skill development as its major focus areas, on which most of the CSR programmes are targeted.
Your Company realized its commitment to the underprivileged sections of the society which was severely hit by the lockdown at the beginning of financial year 2020-21. Your Company was at the forefront in contributing towards Nation''s fight against the pandemic Covid-19 in form of relief material such as food, dry ration, hand sanitizers, PPE Kits etc. to the needy people as well as frontline workers across Delhi & NCR. As one of the stakeholders of Road Safety Cell of Delhi Traffic Police, your Company has been actively supporting Road Safety Campaigns of Delhi Traffic Police.
"Building Bonds through Gender Sensitization", a key CSR project of your Company is a training programme for taxi, bus and auto drivers in Delhi, Noida & Gurugram aimed at making commute in public transport safe for the women. Special training as sewing machine operators has been provided to rural women & men from villages in Noida & Greater Noida to empower them to earn on their own.
Your Company has been supporting meritorious students from under-privileged strata of society for specialized coaching for engineering entrance examination, through a scheme run by an NGO for the last eleven years. This year, your Company has started supporting meritorious students from underprivileged sections of the society for preparation towards Civil Services Examination and Medical Entrance examination also.
Considering the ever growing demand for skilled manpower across sectors as a result of ''Make in India'' programme, your Company is contributing towards Skill Development programmes for unemployed youth, in the fields of gas plumbing and welding, by providing technical oriented quality training. A Gas Plumbing Training Centre set up by your Company in a government run ITI, has been running a special module for providing specialized skills to ITI students related to gas plumbing. Your Company has also been providing skill development training to several underprivileged youths to enhance employability in multiple fields such as gas plumbing, mobile phone hardware repair technician, CCTV installation technician, assistant beauty therapist, home appliances technicians, and automotive service technician & tailoring at Delhi, Ghaziabad and Rewari.
As a commitment to environment, your Company is funding the Reforestation of waste land near Barapullah Drain, Sarai Kale Khan, New Delhi by developing a Carbon Sink in collaboration with DDA and Office of Principal Scientific Advisor to Govt. of India.
The annual report on CSR activities in accordance with the Companies (Corporate Social Responsibility Policy) Rules, 2014, is appended as Annexure 2 to this report.
Directors Responsibility Statement
Pursuant to the provisions of Section 134 (5) of the Companies Act, 2013, your Directors hereby confirm that:
i. In the preparation of Annual Accounts for the financial year ended March 31, 2021, the applicable accounting standards have been followed;
ii. they have selected such accounting policies and applied them consistently except where otherwise stated in the Notes to Accounts and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period;
iii. They have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv. They have prepared the Annual Accounts for the Financial Year ended March 31, 2021 on a going concern basis;
v. They have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and
vi. They had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
Shri Arun Kumar Singh, nominee of Bharat Petroleum Corporation Limited (BPCL), was appointed as the Chairman of the Company w.e.f. January 14, 2021 and Shri P. K. Gupta ceased to be a Director of the Company w.e.f. January 14, 2021.
Shri R. K. Jain, nominee of Gail (India) Limited (GAIL), was appointed as an Additional Director of the Company in place of Shri R. P. Natekar w.e.f. January 14, 2021.
Shri Ashish Kundra, nominee of Govt. of NCT of Delhi, was appointed as an Additional Director of the Company in place of Smt. Manisha Saxena w.e.f. March 26, 2021.
In terms of Section 152 of the Companies Act, 2013, Shri A. K. Jana, Managing Director of the Company, is liable to retire by rotation at the ensuing Annual General Meeting and being eligible has offered himself for re-appointment.
The Board takes this opportunity to place on record its appreciation for valuable contribution made by Shri P. K. Gupta, Shri R. P. Natekar and Smt. Manisha Saxena during their tenure as the Directors of the Company.
The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as provided under section 149(6) of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, (hereinafter referred to as the "Listing Regulations").
The details of programmes for familiarization of Independent Directors with the Company are put up on the website of the Company, i.e., http://www.iglonline.net/7english/5000_ media/Investor_Relations/Familiarization-Programmes-for-Independent-Directors.pdf
The Nomination & Remuneration Committee considers various criteria such as age, qualification, expertise, diversity in composition of Board and likely contribution to the Company while recommending the name of the Independent Directors.
The Board of Directors carried out the evaluation of every Director, Committees of Board and the Board as a whole, based on the laid down criteria of performance evaluation.
In the opinion of the Board of Directors, independent directors have required integrity, expertise and experience.
As per the requirement of the Listing Regulations, a detailed Report on Corporate Governance and certificate regarding compliance of conditions of Corporate Governance are annexed as part of the Annual Report.
The Auditors'' Certificate on Corporate Governance for FY 2020-21 of M/s V. K. Sharma & Co., Practicing Company Secretaries is self-explanatory and does not call for any further comments.
Business Responsibility Report
As per the requirement of the Listing Regulations, a detailed Report on Business Responsibility is annexed as part of the Annual Report.
During the financial year 2020-21, your Company has not accepted any deposit within the meaning of Sections 73 and 74 of the Companies Act, 2013 read together with the Companies (Acceptance of Deposits) Rules, 2014.
Particulars of Loans, Guarantees or Investments
During the financial year 2020-21, your Company has not granted loans nor given guarantee nor made any investments.
Amount which the Company proposes to carry to any Reserves, if any
For the financial year 2020-21, your Company has not transferred any amount to the general reserve of the Company.
Number of Meetings of the Board and Audit Committee
The details of the number of meetings of the Board and Audit Committee held during the financial year ended March 31, 2021 and composition of Audit Committee are given in Corporate Governance Report.
Related Party Transactions
Policy on materiality of Related Party Transactions and on dealing with Related Party Transactions has been disclosed on the website of the Company at: - https://www.iglonline.net/ english/5000_media/About_us/Related-Party-Policy.pdf
Details of transactions with related parties are being disclosed separately in the Annual Report. One contract with GAIL qualify as material transactions under Listing Regulations, the same is being placed for shareholders'' approval in the ensuing Annual General Meeting (AGM).
Prevention of Sexual Harassment at Workplace
As per the requirement of The Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 and Rules made thereunder, your Company has constituted Internal Complaints Committee (ICC). During the FY 2020-21, no complaint with allegation of sexual harassment was received by the Company.
Risk Management and Internal Financial Control Adequacy
Your Company has Risk Management System in place including the Risk Policy & identification of the Risks which are reviewed periodically. The Company has also Risk Management Committee as per the requirement of the Listing Regulations.
Your Company has laid down a set of standards, processes and structure for internal financial control across the organization and ensures that the same are adequate and operating effectively.
The Company has a well-defined Vigilance framework which provides a platform to the employees, directors, vendors, suppliers and other stakeholders of the Company to come forward and raise their genuine concerns without any fear of retaliation and victimization. The Company has engaged an independent third party service provider for complaint management under the whistle-blower platform. The details of the Whistle Blower Policy are available on the website of the Company: www.iglonline.net. Besides Whistle Blower Policy, the Company has also framed Vigil Mechanism policy under which the stakeholders can lodge their complaint(s) to Chief Ethics Officer of the Company.
Your Company had appointed M/s Ramanath Iyer & Co, New Delhi as Cost Auditors for the FY 2020-21.
As per Section 148 read with Companies (Audit & Auditors) Rules, 2014 and other applicable provisions, if any, of the Companies Act, 2013, the Board of Directors of your Company has appointed M/s Chandra Wadhwa & Co, New Delhi, Cost Accountants, as the Cost Auditors of the Company for the FY 2021-22. The remuneration proposed to be paid to the Cost Auditors is subject to the ratification by the members at the ensuing Annual General Meeting of the Company.
Your Company is maintaining cost records as specified by the Central Government under Section 148 of the Companies Act, 2013.
Secretarial Auditors and Secretarial Audit Report
Pursuant to Section 204 of the Companies Act, 2013, your Company had appointed M/s V. K. Sharma & Co., Practicing Company Secretaries, Noida, as its Secretarial Auditors to conduct the Secretarial Audit of the Company for the FY 2020-21. The Report of Secretarial Auditor for the FY 2020-21 is appended as Annexure 3 to this report.
Remarks referred to in the Secretarial Auditors'' Report for FY 2020-21 of M/s V. K. Sharma & Co., Practicing Company Secretaries are self-explanatory and do not call for any further comments.
Disclosures Regarding Remuneration
Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) and 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is appended as Annexure 4 to this report.
The Annual Return of the Company as on March 31, 2021, in Form MGT 7, in accordance with the Section 92 (3) of the Companies Act, 2013 read with Companies (Management and Administration) Rules, 2014 is available on the website of the Company.
In exercise of powers conferred by Section 139 of the Companies Act, 2013, the Comptroller and Auditor General of India (CAG) has to appoint Statutory Auditors of the Company for the FY 2021-22.
The Notes on financial statements referred to in the Auditors'' Report for FY 2020-21 of M/s Datta Singla & Co., Chartered Accountants are self-explanatory and do not call for any further comments.
Review and Comments of CAG, on Standalone and Consolidated financial statements for the FY 2020-21 form part of financial statements of the Company.
Conservation of Energy and Technology Absorption, Foreign Exchange Earnings and Outgo
The information in accordance with the provisions of Section 134 (3) (m) of the Companies Act, 2013 read with Rule (8) of the Companies (Accounts) Rules, 2014 is appended as Annexure 5 to this report.
Your Directors express their gratitude to the Central Government, State Governments of NCT of Delhi, Uttar Pradesh, Haryana & Rajasthan, Ministry of Petroleum & Natural Gas, Petroleum and Natural Gas Regulatory Board and Promoter Companies (GAIL & BPCL) for their continuous guidance & support throughout the year.
The Directors also acknowledge the support of all Statutory & Local Authorities, Bankers, Media, Station Operators & their employees, contractors, vendors and suppliers.
The Directors place on record their deep appreciation towards IGL''s valued customers for their continued patronage support and look forward to the continuance of this relationship in future also.
The Directors wish to express their gratitude to all the shareholders for their continued trust and support.
The Directors also sincerely acknowledge the contributions made by all the employees of IGL for their dedicated services to the Company.
For and on behalf of Board of Directors
Sd/- Sd/-
A. K. Jana Amit Garg
Managing Director Director (Commercial)
Place: New Delhi Date : August 26, 2021
Mar 31, 2018
To
The Members
The Directors have pleasure in presenting the Nineteenth Annual Report and the Companyâs audited financial statements for the Financial Year ended March 31, 2018.
Physical Performance
During the year, the Company recorded sales as under:
Figures in Million Standard Cubic Meters (mmscm)
|
Product |
For the Year 31 March 2018 |
For the Year 31 March 2017 |
% Growth (YoY) |
|
Compressed Natural Gas (CNG) |
1412.66 |
1268.42 |
11 |
|
Piped Natural Gas (PNG) |
478.51 |
406.09 |
18 |
|
Total |
1891.17 |
1674.51 |
13 |
|
Average Sales / per day (mmscmd) |
5.18 |
4.59 |
Financial Results
The Companyâs financial performance for the year ended March 31, 2018 is summarised below:
(Rs. in Crores)
|
Items |
For the Year 31 March 2018 |
For the Year 31 March 2017 |
|
Net Sales & Other Income |
4694.27 |
3880.00 |
|
Profit before Depreciation & Tax |
1213.78 |
1027.76 |
|
Depreciation |
181.29 |
167.07 |
|
Profit before tax |
1032.49 |
860.69 |
|
Provision for tax |
361.72 |
289.62 |
|
Profit after tax |
670.77 |
571.07 |
|
Other comprehensive income |
(0.18) |
(0.86) |
|
Total comprehensive income |
670.59 |
570.21 |
|
Retained Earnings - opening balance |
2483.06 |
2072.93 |
|
Add : Profit for the period |
670.77 |
571.07 |
|
Profit available for appropriations |
3153.83 |
2644.00 |
|
Appropriations: |
||
|
Dividends including Interim Dividend |
70.00 |
133.00 |
|
Corporate dividend tax |
14.25 |
27.08 |
|
Transferred to general reserve |
- |
- |
|
Other comprehensive income recognised directly in retained earnings |
(0.18) |
(0.86) |
|
Retained Earnings - closing balance |
3069.40 |
2483.06 |
Financial Review
During the year, the gross turnover of the Company increased from Rs. 4205.43 Crores in 2016-17 to Rs. 5052.53 Crores in 2017-18 showing an increase of 20.14%.
The Profit After Tax (PAT) increased by 17.46% from Rs. 571.07 Crores in 2016-17 to Rs. 670.77 Crores in 2017-18.
The Company has prepared the Consolidated Financial Statements also which includes the Companyâs share of profit in its Associates combined on an equity method in accordance with IndAS 28 - âInvestment in Associates and Joint Venturesâ. The consolidated PAT during FY 2017-18 is Rs. 721.72 Crores against Rs. 606.34 Crores in the previous year.
Dividend
Your Directors are pleased to recommend a dividend of 100% (Rs. 2.00 per share). The proposed dividend, including corporate dividend tax, would absorb Rs. 168.78 Crores.
The Company has Dividend Distribution Policy in terms of the requirement of SEBI (Listing Obligations Disclosure Requirements) Regulations, 2015. The Policy is available on the website of the Company under the weblink: http://www. iglonline.net//5000_media/Dividend-Distribution-Policy.pdf.
Performance Highlights Compressed Natural Gas Business
During the year, your Company showed growth in CNG business in double digit i.e.11% besides augmenting its CNG infrastructure in Delhi and NCR. The Company had 446 CNG stations and total compression capacity of 75.61 Lacs Kg/day as on March 31, 2018.
The Company was catering to 10.3 Lakhs vehicles including 7.1 Lakhs private cars in Delhi & NCR.
The Company has started setting up of CNG stations under Dealer Owned Dealer Operated (DODO) model considering the constraint of land availability from government land owning agencies. This would facilitate increase in number of CNG stations to provide comfortable fueling experience to its customers.
During the financial year 2017-18, the Company introduced for the first time prepaid card for its CNG customers in order to promote digital payments. Till now more than 50,000 cards are under circulation catering to 65,000 vehicles. The Company has tied up with taxi aggregator companies like Meru, Burdy cab, Yorker cab, etc. to further promote the pre-paid cards.
Company has conducted joint promotion activities with Tata and Eicher at the CNG stations. Due to constant follow up with the truck manufacturers, they have launched company fitted CNG variants, which are becoming very popular among the customers and thus boosting the sales of CNG.
Piped Natural Gas Business
PNG - Domestic Connections
PNG had been the focus area of the Company during FY 2017-18. Total 1.5 Lacs new connections were provided which is the highest number of new connections in a single financial year in the history of the Company. The increase in the number of connections was achieved with aggressive multimedia marketing and publicity drive.
Your Company increased its steel pipeline network from 778 kms in FY 2016-17 to 919 kms in FY 2017-18 and its MDPE network from 9,940 kms to 10,754 kms in FY 2017-18.
The Company is tapping all sources like multimedia marketing, publicity and offering of various schemes to increase the penetration level in the existing areas, where PNG infrastructure is already available.
Company is also making concerted efforts to reach areas which are left out or considered non-technically feasible earlier. During the year, your Company started supply of domestic PNG for the first time in Defence Area of Delhi.
Your Company has customer centric approach and believes in providing best quality services to its customers. During the year, the Company strengthened its Customer Relationship Management (CRM) and other IT applications to provide better services to its customers.
Mobile App âIGL Connectâ has been upgraded to enhance customer services. Recently, concept of spot billing has been added for the convenience of the customers.
The Company had total 8.92 Lacs connections in Delhi & NCR as on March 31, 2018.
PNG - Commercial & Industrial
During the year, your Company continued its thrust on the Commercial & Industrial segment which is one of the potential growth areas in the coming years. Despite stiff competition from alternate fuels, your Company achieved a growth of around 20% in sales volume in Industrial Segment & around 8% in Commercial Segment during financial year 2017-18. In terms of number of customers, the Industrial customer base increased from 962 in March 2017 to 1,224 in March, 2018 and Commercial customer base increased from 1,908 in March 2017 to 2,205 in March, 2018.
In Delhi, Delhi Pollution Control Committee (DPCC) has banned all other industrial fuels except PNG and has advised all Industrial customers (wherever PNG is available) to switchover to PNG. Similarly, with the ban of Furnace Oil (FO) and Petcoke in NCR by Honâble Supreme Court, PNG is emerging as the key energy source for Commercial & Industrial users, offering immense opportunities for growth.
Your Company has already expanded its pipeline network to most of the major industrial areas of Delhi & NCR i.e. Gautam Budh Nagar (Noida, Greater Noida), Ghaziabad & Rewari. Pipeline laying activities are underway in the remaining industrial areas in Delhi & NCR. Endeavors are being made to realize full market potential by tapping gas volumes from Commercial & Industrial customers.
Associate Companies Central U.P. Gas Limited (CUGL)
CUGL is engaged in City Gas Distribution in the cities of Kanpur, Bareilly, Jhansi and Unnao in Uttar Pradesh. Your Company holds 50% of the paid-up equity share capital of CUGL.
CUGL achieved a gross turnover of Rs. 268.61 Crores and Profit After Tax of Rs. 46.10 Crores for the financial year ended March 31, 2018.
Maharashtra Natural Gas Limited (MNGL)
MNGL is in City Gas Distribution business in Pune, Pimpri, Chinchwad, Chakan, Talegaon and Hinjewadi in the State of Maharashtra. Your Company holds 50% of paid-up equity share capital of MNGL.
MNGL achieved a gross turnover of Rs. 654.87 Crores and Profit After Tax of Rs. 97.69 Crores for the financial year ended March 31, 2018.
The statement containing the salient features of the financial statements of Companyâs Associates pursuant to the first proviso to sub-section (3) of Section 129, is appended as Annexure 1 to this Report.
Future Outlook
Your Company has been looking for organic as well as inorganic growth as part of its corporate strategy.
The Company has been expanding its business in existing areas of operations as well as entering into new geographical areas.
In the existing areas, there are growth drivers which shall increase the sales volume in all segments of Companyâs business.
It is expected that price differential of CNG and liquid fuel will continue to drive the conversion of petrol driven private vehicles to CNG mode.
In PNG segment also, the Company is working aggressively to meet the target given by MoPNG. In the coming years, Commercial & Industrial segment shall also get a boost in Delhi & NCR due to directions of judiciary and statutory authorities to replace Furnace Oil (FO) & Petcoke with Natural Gas as industrial fuel.
Your Company has got authorization for development of CGD network in the geographical area of Karnal district in Haryana through bidding process of PNGRB.
The Company was also permitted to start CGD activities in the earmarked areas of Gurugram district of Haryana by Honâble Supreme Court of India. However, the matter of authorization of cities of Gurugram and Faridabad is sub-judice in Honâble Supreme Court of India for final disposal.
Recently, the Company has received letter of intent from PNGRB for grant of authorization for development of CGD network in the Geographical Area of Meerut (except areas already authorized), Muzaffarnagar & ShamIi Districts.
The Company is also looking for expanding its operation through merger or acquisition of stakes in other CGD Companies in the country.
Your Company has also entered into various Memorandum of Understandings (MoUs) with various parties for setting up of LNG/LCNG stations, conversion of diesel gensets into gas gensets and providing charging facilities for electrical vehicles at CNG stations. All these initiatives would add to the future growth of the Company.
The Company has earmarked Rs. 700 Crores for FY 2018-19 for capital expenditure.
Corporate Strategy
In order to ensure sustainable long term growth for its stakeholders in the evolving challenging business environment, your Company has come out with its new Vision & Mission statements. The Company has already initiated activities to identify high growth areas outside the existing energy portfolio.
Your Company has also started a comprehensive exercise on cost reduction and profit maximization in the existing business. The potential areas have been identified and implementation of the same would be taken up in a phased manner.
Information Technology
Your Company remains committed towards building a stable ERP & IT infrastructure through enhancement of existing IT applications and adding new & advanced customer centric applications using latest technology.
The Company has revamped LAN infrastructure with latest equipments alongwith enabling wi-fi access and connecting existing 86 remote locations through high speed MPLS connectivity. This would ensure easy accessibility of software applications and facilitate convenient exchange of data and information.
As part of strengthening the core infrastructure, your Company has also migrated the existing centralized data storage (SAN) to latest technology of high speed flash based storage system to ensure faster data access with minimal fault, failures and latency with high reliability and performance.
Your Company holds a clear vision of leveraging the power of internet in this digital era and developed a âDigital Strategyâ to support release of various portal interfaces and apps for employees and customers. The Company has been continuously working to enhance the existing customer app - IGL connect with new features and to develop various employee centric apps to empower them in contributing to the Companyâs Vision and Mission.
The existing customer app - IGL Connect has been enriched with new Self Billing feature which as the name suggests, enables the customers to perform self-billing just by entering the current meter reading. Your Company continues to bring in new offers and options as part of customer delight initiatives including introduction of EMI options for security deposit, Refer & Earn scheme etc. in IGL connect app. Development for enabling âSpot billingâ functionality through meter reading app has also being successfully completed.
The customer portal has been enhanced with new functionalities including immediate realization of online payments and prepaid recharges. Integration with various online wallets has been completed as payment methods for convenience of customers. Customer can now even make payment of security deposit amount through digital mode.
Your Company has also initiated project to develop community app for IGL employees through which they can work collaboratively towards common objectives while utilizing various self-services conveniently. Steps have been taken to leverage cloud services for existing meter reading app and developing new meter reading app for domestic and commercial customers.
Human Resources
The Company values its human resources and is always committed in providing them an environment of learning and growth. Various welfare measures and employee oriented policies drive the human resources to deliver their best in achieving the organizational performance. The Company is taking care of its employees through different interventions viz. 360 Degree Appraisal Survey, Assessment Center for DGM & above level employees, Town Hall Meetings and Mentor-Mentee mechanism. The Company reviews from time to time compensation packages and other policies/ facilities of its employees to make them more competitive and aligned with best industry practices.
Learning and Development of employees forms an integral part of the Companyâs Policy towards accomplishing organizational goal. The continual imparting of training, both technical and non-technical, is necessary for the growth of employees. During the year, our employees were provided with the best of trainings viz. SAP functional module(s), Executive Diploma in Project Management (EDPM) training, etc. Outdoor team building exercises have also been introduced.
During the year, employees were encouraged to participate in various Cyclothan events, Delhi Half Marathon, Preventive Health Check-ups and Yoga/Stress Management Sessions to take care of employeeâs health & fitness.
During the year, the Company inducted various young talented professionals at entry level to infuse knowledge and talent in the professional sphere. The comprehensive Induction Training has also been imparted to new GETs. Your Company has maintained harmonious, cordial and healthy relations among its employees.
Your Company recognizes the contribution of its employees in its growth.
Health Safety and Environment (HSE)
Your Company has always accorded top most priority to Safety and has focused its continual efforts to maintain a good safety culture and to improve Fire & Safety standards in all aspects/ areas of operation of the organization as well as inculcating a habit of following safety as an integral part of the jobs executed by employees as well as contract workers at sites.
It is a matter of pride that your Company has crossed 131 Million Man Hours accident free till 31st March 2018. This is a milestone achievement resulted from continuous efforts of all the individuals working directly and indirectly for the Company. During FY 2017-18, your Company has been conferred Safety Innovation Award by Institute of Engineers and Certificate of Appreciation from National Safety Council to recognize the excellence in the field of Fire & Safety management.
Training is regularly imparted to the employees, contract staff at CNG stations, DTC drivers and consumers of CNG and PNG. To create safety awareness and to impart training to all category of consumers, a dedicated group of trainers with fully equipped training van is deployed which conducts safety clinics along with practical demonstration.
Safety inspections of CNG vehicles are also done periodically on random basis to check compliances of safety standards and to prevent unsafe conditions arising out of gas leakage from the CNG kits. For safety of CNG vehicles, free safety clinics are periodically organized where inspection of CNG kits and fittings are undertaken.
Emergency Control Centres (ECC) are established and Emergency Response Vehicles (ERV) are stationed at strategic locations across Delhi & NCR which are manned round the clock to respond fast to any gas leak or emergency situation. Three more Emergency Response Vehicles are also being procured for Noida, Greater Noida, Gurugram & Rewari. Mock drills are carried out regularly to check preparedness to control emergencies.
In line with Companyâs HSE policy, Safety Audits and other statutory compliances are done to ensure safety in all facets of IGLâs operations.
Corporate Social Responsibility
Your Company is fully conscious of its Corporate Social Responsibility (CSR). In addition to carrying forward various CSR projects started in the earlier year, many new ones were also initiated in FY 2017-18.
Your Company has strategically aligned many of its CSR activities to create value for the society. Your Company has identified health, education, empowerment of underprivileged and skill development as its major focus areas, on which most of the CSR programmes are targeted.
The Company realizes that good health of public transport drivers is paramount to ensure safety on the roads. Therefore, your Company is carrying forward âIGL Swasth Saarthiâ - a comprehensive health management programme for auto and taxi drivers in Delhi and NCR, wherein a series of comprehensive Health check-up camps and Non Communicable Diseases (NCD) camps are being organized at various CNG stations, through a leading hospital. Scaling this programme further, your Company also launched a web portal for this programme through which these drivers who have visited the health camps can see their health records at anytime. Further, a group accident insurance cover is being provided to all drivers of CNG run public transport in the region under âIGL Suraksha Yojnaâ.
Building Bonds through Gender Sensitization is one of the key CSR programme of your Company. It is a training programme for taxi, bus and auto drivers in Delhi & NCR thus making commuting in public transport safer for the women.
Your Company is also laying emphasis on initiatives aimed at empowerment of women especially young girls. This year also, self-defence training has been provided to girl students of government schools through an NGO. Special training on sewing machine operatorship has been provided to rural women in the region to empower them to earn on their own.
The Company has been supporting meritorious students from under-privileged strata of society for specialized coaching for engineering entrance examination, through a scheme run by an NGO for the last eight years. This year, 25 meritorious but underprivileged students were supported under this programme and all of them have been able to secure admission in reputed engineering colleges.
Considering the ever growing demand for skilled manpower across sectors as a result of âMake in Indiaâ programme, your Company is contributing towards Skill Development programmes for unemployed youth, in the fields of gas plumbing and welding, by providing technical oriented quality training. Your Company has set up a Gas Plumbing Training Centre in a government run ITI and is running a special module for students from government run ITIs to provide them specialised skills related to gas plumbing.
Your Company is also running another skill development programme for underprivileged youth in the fields of gas plumbing, repair of mobile phones & other home appliances, CCTV installation and beauty therapist through NGOs.
The Company is one of the stakeholders of Road Safety Cell of Delhi Traffic Police and actively supports all Road Safety Campaigns of Delhi Traffic Police.
The annual report on CSR activities in accordance with the Companies (Corporate Social Responsibility Policy) Rules, 2014, is appended as Annexure 2 to this report.
Your company has received following awards for its CSR activities:
1. Award in the Category of âCSR/ Environment Protection and Conservationâ at India Pride Awards 2017-18 organized by Dainik Bhaskar Group in New Delhi.
2. CSR Leadership Awards under the categories of Women Empowerment and Innovations in CSR practices during World CSR Day Congress in Mumbai.
3. Award for its Gender Sensitization programme at 4th CSR Impact Awards 2017 under the category of Women Empowerment in Gurugram.
4. CSR Community Initiative Awards 2018 for IGL Swasth Saarthi Programme and for Self Defence Training Programme at CSR Leadership Summit in New Delhi.
5. Award in the categories of âWomen Empowermentâ and âInnovations in CSR practicesâ at 8th Asiaâs Best CSR Practices Awards in Singapore.
6. Award in the field of Healthcare for IGL Swasth Saarthi Programme at National CSR Summit & Awards in New Delhi.
Directors Responsibility Statement
Pursuant to the provisions of Section 134 (5) of the Companies Act, 2013, your Directors hereby confirm that:
(i) In the preparation of Annual Accounts for the financial year ended March 31, 2018, the applicable accounting standards have been followed;
(ii) they have selected such accounting policies and applied them consistently except where otherwise stated in the Notes to Accounts and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period;
(iii) They have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(iv) They have prepared the Annual Accounts for the Financial Year ended March 31, 2018 on a going concern basis;
(v) They have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and
(vi) They had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
Directors
Shri S. S. Rao, Prof. V. Ranganathan and Shri Santosh Kumar Bajpai, ceased to be Directors of the Company w.e.f. September 12, 2017. Thereafter, they were re-appointed as Independent Directors for the second term from October 16, 2017 to October 15, 2018.
Shri Raghu Nayyar and Dr. Sudha Sharma were re-appointed as Additional and Independent Directors for the second term from March 20, 2018 to March 19, 2019. The proposal for re-appointment of Shri Raghu Nayyar and Dr. Sudha Sharma as Independent Directors of the Company is being placed before the shareholders for approval in the ensuing Annual General Meeting of the Company.
Shri Rajiv Sikka, nominee of Bharat Petroleum Corporation Limited (BPCL), was appointed as Director (Commercial) in place of Shri V. Nagarajan w.e.f. May 25, 2018.
Shri S. Bairagi, nominee of Gail (India) Limited (GAIL), was appointed as an Additional Director of the Company in place of Shri Manoj Jain w.e.f. July 6, 2018.
The Board takes this opportunity to place on record its appreciation for valuable contribution made by Shri V. Nagarajan and Shri Manoj Jain during their tenure as the Directors of the Company.
In terms of Section 152 of the Companies Act, 2013, Shri Ramesh Srinivasan, Chairman of the Company, is liable to retire by rotation at the ensuing Annual General Meeting and being eligible has offered himself for re-appointment.
The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as provided under section 149(6) of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, (hereinafter referred to as the âListing Regulationsâ).
The details of programmes for familiarization of Independent Directors with the Company are put up on the website of the Company:-
(http://www.iglonline.net//english/5000_media/Investor_Relations/Familiarization-Programmes-for-Independent- Directors.pdf).
The Nomination & Remuneration Committee considers various criteria such as age, qualification, expertise, diversity in composition of Board and likely contribution to the Company while recommending the name of the Independent Directors.
The Board of Directors carried out the evaluation of every Director, Committees of Board and the Board as a whole, based on the laid down criteria of performance evaluation.
Corporate Governance
As per the requirement of the Listing Regulations, a detailed Report on Corporate Governance and a certificate regarding compliance of conditions of Corporate Governance are annexed as part of the Annual Report.
Business Responsibility Report
As per the requirement of the Listing Regulations, a detailed Report on Business Responsibility is annexed as part of the Annual Report.
Deposits
During the financial year 2017-18, your Company has not accepted any deposit within the meaning of Sections 73 and 74 of the Companies Act, 2013 read together with the Companies (Acceptance of Deposits) Rules, 2014.
Particulars of Loans, Guarantees or Investments
During the year 2017-18, your Company has not granted loans nor given guarantee nor made any investments.
Amount Which the Company Proposes to Carry to any Reserves, if any
For the year 2017-18, your Company has not transferred any amount to the general reserve of the Company.
Number of Meetings of the Board and Audit Committee
The details of the number of meetings of the Board and Audit Committee held during the financial year ended March 31, 2018 and composition of Audit Committee are given in Corporate Governance Report.
Related Party Transactions
Policy on materiality of Related Party Transactions and on dealing with Related Party Transactions has been disclosed on the website of the Company at: - http://www.iglonline.net/ english/5000_media/About_us/Related-Party-Policy.pdf.
Details of transactions with related parties are being disclosed separately in the Annual Report. One contract with GAIL qualify as material transactions under Listing Regulations, the same is being placed for shareholdersâ approval in the ensuing Annual General Meeting (AGM).
Prevention of Sexual Harassment at Workplace
As per the requirement of The Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 and Rules made thereunder, your Company has constituted Internal Complaints Committee (ICC). During the financial year 2017-18, no complaint with allegation of sexual harassment was received by the Company.
Risk Management and Internal Financial Control Adequacy
Your Company has Risk Management System in place including the Risk Policy & identification of the Risks which are reviewed periodically.
Your Company has laid down a set of standards, processes and structure for internal financial control across the organization and ensures that the same are adequate and operating effectively.
Vigil Mechanism
The Company has a Whistle Blower Policy as part of the vigil mechanism, which provides a platform to the employees, directors, vendors and suppliers of the Company to come forward and raise their genuine concerns without any fear of retaliation and victimization. The Company has engaged an independent third party service provider to manage the operations of the whistle-blower hotline. The details of the Whistle Blower Policy are available on the website of the Company www.iglonline.net. Besides Whistle Blower Policy, the Company has also framed vigil mechanism under which the stakeholders can lodge their complaint(s) to Chief Ethics Officer of the Company.
Statutory Auditors
In exercise of powers conferred by Section 139 of the Companies Act, 2013, the Comptroller and Auditor General of India (CAG) vide its letter dated August 1, 2018 has appointed M/s Walker Chandiok & Co. LLP, Chartered Accountants as Statutory Auditors of the Company for the financial year 2018-19.
The Notes on financial statements referred to in the Auditorsâ Report for FY 2017-18 of M/s Walker Chandiok & Co, Chartered Accountants are self-explanatory and do not call for any further comments.
Review and Comments of CAG, on Standalone and Consolidated financial statements for the financial year 201718 form part of financial statements of the Company.
Cost Auditors
Your Company had appointed M/s Chandra Wadhwa & Co., New Delhi as Cost Auditors for the financial year 2017-18.
As per Section 148 read with Companies (Audit & Auditors) Rules, 2014 and other applicable provisions, if any, of the Companies Act, 2013, the Board of Directors of your Company has appointed M/s Ramanath Iyer & Co., New Delhi, Cost Accountants, as the Cost Auditors of the Company for the financial year 2018-19. The remuneration proposed to be paid to the Cost Auditors is subject to the ratification by the members at the ensuing Annual General Meeting of the Company.
Secretarial Auditors and Secretarial Audit Report
Pursuant to Section 204 of the Companies Act, 2013, your Company had appointed M/s V. K. Sharma & Co., Practicing Company Secretaries, Noida, as its Secretarial Auditors to conduct the Secretarial Audit of the Company for the financial year 2017-18. The Report of Secretarial Auditor for the financial year 2017-18 is appended as Annexure 3 to this report.
Disclosures Regarding Remuneration
Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) and 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is appended as Annexure 4 to this report.
Extract of Annual Return
Extract of Annual Return of the Company is appended as Annexure 5 to this report.
Conservation of Energy and Technology Absorption, Foreign Exchange Earnings and Outgo
The information in accordance with the provisions of Section 134 (3) (m) of the Companies Act, 2013 read with Rule (8) (3) of the Companies (Accounts) Rules, 2014 is appended as Annexure 6 to this report.
Acknowledgements
Your Directors express their gratitude to the Ministry of Petroleum & Natural Gas, State Governments of NCT of Delhi, Uttar Pradesh & Haryana, Petroleum and Natural Gas Regulatory Board, and Promoter Companies (GAIL & BPCL) for their continuous guidance & support throughout the year.
Your Directors acknowledge wise counsel received from Statutory Auditors and CAG and are grateful for their support.
The Directors also acknowledge the support of all Statutory & Local Authorities, Bankers, Media, Station Operators & their employees, contractors, vendors and suppliers.
The Directors place on record their deep appreciation towards IGLâs valued customers for their continued patronage & support and look forward to the continuance of this relationship in future also.
The Directors wish to express their gratitude to all the shareholders for their continued trust and support.
The Directors also sincerely acknowledge the contributions made by all the employees of IGL for their dedicated services to the Company.
For and on behalf of Board of Directors
Sd/- Sd/-
Rajiv Sikka E. S. Ranganathan
Director (Commercial) Managing Director
Place : New Delhi
Date : August 10, 2018
Mar 31, 2017
To
The Members
The Directors have pleasure in presenting the Eighteenth Annual Report and the Companyâs audited financial statements for the financial year ended March 31, 2017.
Physical Performance
During the year, the Company recorded sales as under:
Figures in Million Standard Cubic Meters (mmscm)
|
Product |
For the Year 31 March 2017 |
For the Year 31 March 2016 |
% Growth (YoY) |
|
Compressed Natural Gas (CNG) |
1268.42 |
1123.00 |
13 |
|
Piped Natural Gas (PNG) |
406.09 |
342.05 |
19 |
|
Total |
1674.51 |
1465.05 |
14 |
|
Average Sales Per day (mmscmd) |
4.59 |
4.00 |
Financial Results
The Companyâs financial performance for the year ended March 31, 2017 is summarised below:
(Rs. in Crores)
|
Items |
For the Year 31 March 2017 |
For the Year 31 March 2016 |
|
Net Sales & Other Income |
3880.00 |
3715.68 |
|
Profit before Depreciation & Tax |
1027.76 |
794.71 |
|
Depreciation |
167.07 |
156.25 |
|
Profit before tax |
860.69 |
638.46 |
|
Provision for tax |
289.62 |
219.41 |
|
Profit after tax |
571.07 |
419.05 |
|
Other comprehensive income |
(0.86) |
(0.35) |
|
Total comprehensive income |
570.21 |
418.70 |
|
Retained Earnings - opening balance |
2072.93 |
1796.95 |
|
Add : Profit for the period |
571.07 |
419.05 |
|
Profit available for appropriations |
2644.00 |
2216.00 |
|
Appropriations: |
||
|
Dividends including Interim Dividend |
133.00 |
84.00 |
|
Corporate dividend tax |
27.08 |
17.10 |
|
Transferred to general reserve |
- |
41.62 |
|
Other comprehensive income recognised directly in retained earnings |
(0.86) |
(0.35) |
|
Retained Earnings - closing balance |
2483.06 |
2072.93 |
Financial Review
During the year, the gross turnover of the Company increased from Rs. 4052.14 Crores in 2015-16 to Rs. 4205.43 Crores in 2016-17. The increase of 3.8% in gross turnover, despite an increase of 14% in sales volume, is mainly on account of reduction in the selling price of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG)-domestic, which was reduced in line with the reduction in the APM prices of input gas which was passed on to the customers, by reducing the selling price of CNG and PNG-domestic. Further, the selling price of gas to industrial and commercial customers was reduced on account of reduction in the price of Term-RLNG during the year.
The Profit after tax (PAT) increased by 36.28% from Rs. 419.05 Crores in 2015-16 to Rs. 571.07 Crores in 2016-17.
The Company has prepared the Consolidated Financial Statements also which includes the Companyâs share of profit in its Associates combined on a equity method in accordance with Ind AS 28 - âInvestment in Associates and Joint Venturesâ. The Consolidated PAT during FY 2016-17 is Rs. 606.34 Crores against Rs. 457.88 Crores in the previous year.
Dividend
Your Directors are pleased to recommend a dividend of 50% (Rs. 5.00 per share) in addition to the interim dividend of 35% (Rs. 3.50 per share) paid during the FY 2016-17. The proposed dividend, including corporate dividend tax, would absorb Rs. 84.25 Crores. The outflow of interim dividend, including corporate dividend tax, was Rs. 58.98 Crores.
Performance Highlights Compressed Natural Gas Business
During the year, your Company further expanded its CNG infrastructure and commissioned 81 new CNG Stations (including 78 stations at retail outlets of Oil Marketing Companies) and thereby enhancing its installed compression capacity to 71 Lakhs kg/day in March 2017.
Your Company launched the pilot project to run two wheelers on Compressed Natural Gas (CNG), as part of its endeavour to curb pollution, thereby increasing the trust of customers in CNG as a âcleaner fuelâ.
Your Company has also taken an initiative to promote the use of CNG and attract customers during non-peak hours, by providing special incentive like discount on the selling price, during non-peak hours in the night time. The Company had total 421 CNG stations as on March 31, 2017 catering to over 9,75,000 vehicles including 5,78,000 private vehicles.
Piped Natural Gas Business
PNG - Domestic Connections
Your Company has increased its steel pipeline network from 707 kms in FY 2015-16 to 778 kms in FY 2016-17 and its MDPE network from 9443 kms in FY 2015-16 to 9940 kms in FY 2016-17.
During the year, your Company provided 60,867 PNG connections in Delhi and 45,021 PNG connections in the NCR and the total number of connections went up from 6,36,318 in March 2016 to 7,42,206 in March 2017. It is noteworthy that your Company provided 1,05,888 domestic PNG connections in Financial Year 2016-17 which is the best performance of the Company. The increase in customer base from networked areas / colonies was achieved with the help of aggressive multi-media marketing and publicity drive. The use of innovative street level marketing, combined with print and popular FM channels, enabled your Company to tap additional customers from areas which were considered saturated. An increased customer base demands an infusion of information technology for more efficient operations. The conventional methods of data storage and documentation are in the process of replacement with modern IT tools. Your Company has successfully completed the testing phase of field mobility technology to replace convenient method of paper documentation at the time of new connections and visit at customer premises for operation & maintenance activities. These modules have helped to infuse information technology in all its customer operations to bring better efficiency, by sharing real time information within IGL and with our customers.
Your Company has increased its focus on 24 X 7 customer care centre for customer query/complaints redressal and additional call centre has also started for reducing the waiting time. The grievances are being monitored through CRM system and efforts are made to provide the resolution within defined timelines.
To enhance payment collection mode, your Company has started accepting payments through various options like E-Wallets, NEFT, QR Codes, Debit Card / Credit Card, Net Banking etc. Collection of smart meter reading is carried out through customized mobile application wherein photograph of meter installed at customer location is captured for improving billing accuracy. Your Company is also in process of improving the existing smart meter reading application with enhanced features. Apart from this, your Company is in process of introducing unique concepts like spot billing, self-billing, AMR, prepaid meters etc. to enhance further customer satisfaction.
Mobile application âIGL CONNECTâ has been launched to enhance customer interface. The customer can download the app and can avail host of online facilities like change in profile, submit meter reading, view last invoices, make payments, lodge a request etc. The mobile application is being upgraded with new features.
PNG - Commercial & Industrial
PNG is gradually emerging as the key energy source for industrial and commercial users offering immense opportunities for growth. Your Company has plans to exploit significant demand potential for gas from industrial and commercial consumers in Delhi and NCR - Gautam Budh Nagar (Noida, Greater Noida) and Ghaziabad.
During the financial year 2016-17, your Company maintained its focus on the Industrial & Commercial segment as one of the potential growth areas in the forthcoming years. In spite of stiff competition from alternate fuels prices, like Furnace oil (FO)/ Diesel/ LPG, which have come down drastically due to lower crude prices, there was a growth of around 8% under industrial and around 6% under commercial segment in sales volume during financial year 2016-17. In terms of number of customers industrial customers increased from 821 in March, 2016 to 962 in March, 2017 and commercial customers increased from 1811 in March, 2016 to 1908 in March, 2017.
In addition, industrial and commercial segments in NCR towns of Noida, Greater Noida and Ghaziabad offer huge potential in the next few years, as PNG network is still being laid in few belts in these areas and many such units are still to be connected.
Your Company has already expanded its pipeline network to most of the major industrial areas of Delhi and the NCR i.e. Gautam Budh Nagar (Noida, Greater Noida) and Ghaziabad. Pipeline laying activities are underway in the remaining industrial areas in the NCR.
Associate Companies Central U.P. Gas Limited (CUGL)
CUGL is engaged in City Gas Distribution in the cities of Kanpur, Bareilly, Jhansi and Unnao in Uttar Pradesh. Your Company holds 50% of the paid-up equity share capital of CUGL.
CUGL achieved a gross turnover of Rs. 240.52 Crores and profit after tax of Rs. 48.37 Crores for the financial year ended March 31, 2017.
Maharashtra Natural Gas Limited (MNGL)
MNGL is in City Gas Distribution business in Pune, Pimpri, Chinchwad, Chakan, Talegaon and Hinjewadi in the State of Maharashtra. Your Company holds 50% of paid-up equity share capital of MNGL.
MNGL achieved a gross turnover of Rs. 531.16 Crores and profit after tax of Rs. 76.29 Crores for the financial year ended March 31, 2017.
The statement containing the salient features of the financial statement of Companyâs Associates pursuant to the first proviso to sub-section (3) of Section 129, is appended as Annexure 1 to this Report.
Future Outlook
The Company has been expanding its area of operations in new geographical areas.
During the financial year 2016-17, your Company got authorization through bidding process from PNGRB for development of CGD network in the geographical area of Rewari in Haryana. The Company has already started sale of gas in this area. The sales volume in this area would increase gradually with the rollout of increased infrastructure.
Recently, your Company has received permission, as of now from Director of Industries & Commerce, Haryana to lay CGD network in Gurugram in the area lying between west side of Sohna Road and National Highway-8 of Gurugram. The entry of your Company in Gurugram offers vast potential of business growth. However, the matter of authorization for cities of Gurugram and Faridabad is sub judice in Honâble Supreme Court of India for final disposal.
Your Company has also participated in the bidding process of PNGRB for the geographical areas of Karnal, Ambala & Kurukshetra District and Bulandshar (part district).
Besides new geographies, your Company has been expanding its infrastructure in existing areas to consolidate its position for increased sales volume growth.
Your Company has earmarked Rs. 600 Crores for the FY 2017-18 for capital expenditure.
During the year FY 2016-17, your Company entered into collaboration with a renowned market player in Iran to introduce retrofittment of CNG kit in the 2-wheelers segment. The Company has completed the pilot project of installation of CNG kit in 2-wheelers successfully. Your Company has plans to carry forward this project further in a phased manner.
It is also expected that in order to further strengthen the Public Transport system in Delhi, the Government of NCT of Delhi has an aggressive plan to introduce additional buses, which would add volume to sales growth.
It is also expected, that the price differential of CNG versus alternate liquid fuel will continue to drive the conversion of petrol driven private vehicles to CNG mode. The introduction of more CNG variant models by car manufacturers would further add to CNG volumes.
MoP&NG has given target of 3 lacs connections to the Company for FY 2017-18. The Company is working aggressively to meet the target. The Company has targeted defence areas to provide PNG Connections which would provide good number of PNG connections and help in achieving targets.
Your Company has innovative plans to expand its PNG customer base as a part of mission of expanding PNG launched by the Ministry of Petroleum & Natural Gas, Government of India. Expanding PNG connectivity into newly constructed housing units in Gautam Budh Nagar by builders / government will be given priority to register ambitious growth. Though there has been a slack in demand for new residential units, which is a cause for concern in the short term, it is expected that FY 2017 -18 will witness some surge in demand from prospective buyers of properties. This demand recovery will enable your Company to push for aggressive targets for PNG connections in new residential projects. New high volume industrial & commercial customers will continue to be the target for achieving higher growth by your Company.
The landscape of CGD sector particularly in Delhi and NCR is changing quite rapidly in a dynamic environment with evolving regulatory regime and rising customerâs expectations. There has been a growing concern on the pollution levels in Delhi and NCR in the past months due to which various landmark judgments have been made by Judiciary & Statutory Authorities. Various Statutory Authorities like Environment Pollution Control Authority (EPCA), Centre for Science & Environment (CSE), Delhi Pollution Control Committee (DPCC) & Uttar Pradesh Pollution Control Board (UPPCB) are working in a synchronized manner to curb the air pollution levels further in Delhi and NCR, wherein one such proposed initiative is to ban use of Furnace Oil (FO) and Petcoke by industries in Delhi and NCR.
In this regard, your Company has made plans to take advantage of the recent opportunities under industrial segment in NCT of Delhi which can witness improvement in PNG volumes. Endeavours will be made to realize full market potential by tapping gas volumes from industries, which will come up after notification to ban use of Furnace Oil (FO) and Petcoke in NCT of Delhi and NCR.
Corporate Strategy
The Company has initiated a comprehensive internal exercise to analyse evolving business environment and technological changes that can affect future business of your Company. Various options for growth and diversification are being considered to ensure sustained long term growth for its stakeholders. It will be a continuing exercise under its Corporate Strategy Department.
Information Technology
Your Company being leader amongst major CGD companies in India is committed to establish the latest technology driven IT landscape to render world class customer centric applications and facilitate âease of doing businessâ.
Your Company has launched âIGL Connectâ, a user-friendly and feature-rich mobile app, for CNG and PNG users with simplicity of design, user interface and security. The app enables PNG customers to view billing and payment history, lodge complaints, track status of service request and complaints, share feedback, update mobile and phone number, submit meter reading and make online payments etc. Facility of âINSTAPAYMENTâ option is also available on IGL website as an option of online payment. PNG customers can now upload their documents online which has provided convenience to them for applying new connection. For the convenience of CNG customers, the app also includes details of CNG testing centres, Kit suppliers and useful information about CNG vehicle care, benefits of using CNG and âsavings calculatorâ etc. CNG customers can also search for CNG stations on the map or in a particular area using this app.
In order to facilitate customers visiting the walk-in-centres and to efficiently render services to them, your Company has developed âQueue Management Systemâ through which customers shall be issued system generated tokens for assigning free counter as per the service selected by the customer. The system data may be later used for analytics for categorization of issues and resolution time taken against them. Your Company has introduced various schemes and discount offers for the benefit of PNG billing customers which are mapped in ERP system viz. EMI option on security deposit amount for new connection request, Rs. 100 discount on first bill for e-bill subscription etc.
Besides, your Company is continuously evolving and innovating upon optimizing the billing process in ERP system through working on self-billing option which shall be soon available to PNG customers. Your Company has also extended its existing SAP ERP and other customer centric applications viz. CRM etc. for enabling business in newly acquired âRewariâ area in Haryana. You Company has already aligned its systems and processes to adapt and ready for GST regime wherein all the necessary changes have been incorporated in the ERP landscape.
Your Company is also committed towards ensuring convenience to employees and optimization of daily operations through applications like âFile tracking systemâ for ensuring timely processing of approval documents, âBill watch systemâ to keep track of vendor invoices etc. Many other employee related apps have been planned for helping them to perform their regular task efficiently and conveniently.
Human Resources
The Company realizes that the challenges of the future can be best met with competent and motivated human resources. Your Company is taking various HR initiatives to add value to its pool of human talent and integration of individual goals with that of Company. The Company reviews from time to time compensation packages and other policies/facilities of its employees to make them more competitive and aligned with industry practices.
Learning and development of employees forms an integral part of the Companyâs policy towards accomplishing organizational goal. Mentor-mentee mechanism for new employees and town hall meetings have been introduced.
During the year, your Company also participated in Delhi Half Marathon and organised International Yoga Day, Stress Management Workshop, Brahmakumaris Workshop to take care of employees health & fitness.
During the year, the Company inducted various young professionals at entry level to infuse talent in the professional arena. Your Company has maintained a harmonious and cordial relation among its employees and appreciates the contribution of all employees in its growth path.
Health Safety and Environment (HSE)
Safety is accorded top most priority by your Company and has focused its continual efforts to maintain a good safety culture and to improve Fire and Safety standards in its business areas.
This is a matter of pride that your Company has crossed 106 Million Man Hours accident free till 31st March 2017. This milestone achievement is a result from continuous efforts of all the individuals working directly and indirectly for your Company. The Company has been conferred Safety Innovation Award by Institute of Engineers and Certificate of Appreciation from National Safety Council to recognize the excellence in the field of Fire & Safety management during FY 2016-17.
Safety inspections of CNG vehicles are done periodically on random basis to check compliances of safety standards and to prevent unsafe conditions arising out of gas leakage from the CNG kits. For Safety of CNG vehicles, free safety clinics are periodically organized where inspection of CNG kits and fittings is undertaken.
Training is regularly imparted to the employees, contract staff at CNG stations, DTC drivers and consumers of CNG and PNG. To create safety awareness and to impart training to all category of consumers, a dedicated group of trainers with fully equipped training van is deployed which conducts safety clinics alongwith practical demonstration.
Emergency Control Centres (ECC) established at strategic locations across Delhi & NCR, are manned round the clock to respond fast to any gas leak or emergency situation. Mock drills are carried out regularly to check preparedness to handle emergencies.
In line with Companyâs HSE policy, Safety Audits and other statutory compliances are done to ensure safety at all facets of operations.
Corporate Social Responsibility
Your Company is fully conscious of its Corporate Social Responsibility. In addition to carrying forward various CSR projects started in the earlier year, many new ones were initiated in FY 2016-17.
Your Company has been supporting meritorious students from under-privileged strata of society for specialized coaching for engineering entrance examination, through a scheme run by an NGO for the last seven years. It is again a matter of satisfaction that in FY 2016-17, all the eighteen students sponsored by your Company have qualified JEE (Main) 2017 examination for admission in top engineering colleges and 11 have qualified JEE (Advanced) 2017 examination.
Your Company realizes that good health is paramount to ensure safety on the roads. Therefore, your Company is carrying forward âIGL Swasth Saarthiâ - a comprehensive health management programme for auto and taxi drivers in Delhi and NCR, wherein a series of comprehensive Health check-up camps and Non Communicable Diseases (NCD) camps are being organized at various CNG stations, through a leading hospital.
In addition to carrying forward the funding of the training programme for auto and taxi drivers being organized by Transport Department, the Government of NCT of Delhi, on Gender Sensitization and Skill Management, your Company has extended the scope of its funding to include the training of auto and taxi drivers of Noida and Ghaziabad. A group accident insurance cover is being provided to 3.25 lakhs drivers of CNG run public transport in the region under âIGL Suraksha Yojnaâ.
Your Company is also laying emphasis on initiatives aimed at empowerment of women especially young girls. Self-defence training has been provided to girl students of government schools through an NGO. Special training on sewing machine operatorship has been provided to rural women in Greater Noida to empower them to earn on their own.
Considering the ever growing demand for skilled manpower across sectors as a result of âMake in Indiaâ programme, your Company is contributing towards Skill Development programmes for unemployed youth, in the fields of gas plumbing and welding, by providing technical oriented quality training. Your Company has set up a Gas Plumbing Training Centre in a government run ITI and is running a special module for students from government run ITIs to provide them specialised skills related to gas plumbing.
Your Company is one of the stakeholders of Road Safety Cell of Delhi Traffic Police and actively supports all Road Safety Campaigns of Delhi Traffic Police.
The Annual Report on CSR activities in accordance with the Companies (Corporate Social Responsibility Policy) Rules, 2014, is appended as Annexure 2 to this report.
The Company has received following awards for its CSR activities:
- Award in the Category of âInnovations in Corporate Social Responsibility Practicesâ at ABP News - CSR Leadership Awards organized by World CSR Day.
- Award in the Category of âCSR/ Environment Protection and Conservationâ at India Pride Awards organized by Dainik Bhaskar Group.
- CSR Community Initiative Award for its Gender Sensitization Programme at CSR Leadership Summit & Awards 2017.
Directors Responsibility Statement
Pursuant to the provisions of Section 134 (5) of the Companies Act, 2013, your Directors hereby confirm that:
i. In the preparation of Annual Accounts for the financial year ended March 31, 2017, the applicable accounting standards have been followed;
ii. they have selected such accounting policies and applied them consistently except where otherwise stated in the Notes to Accounts and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period;
iii. They have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv. They have prepared the Annual Accounts for the Financial Year ended March 31, 2017 on a going concern basis;
v. They have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and
vi. The directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
Directors
Shri S. Ramesh, nominee of Bharat Petroleum Corporation Limited (BPCL), was appointed as the Chairman of the Board in place of Shri M. Ravindran w.e.f. January 14, 2017.
Shri Manoj Jain, nominee of Gail (India) Limited (GAIL), was appointed as an Additional Director of the Company w.e.f. January 18, 2017. Shri I. S. Rao ceased to be a director w.e.f. January 14, 2017.
Shri Sandeep Kumar, nominee of Govt. of NCT of Delhi, was appointed as an Additional Director of the Company w.e.f. October 1, 2016.
Shri Vikram Dev Dutt, nominee of Govt. of NCT of Delhi, was appointed as an Additional Director of the Company in place of Shri Sandeep Kumar w.e.f. December 28, 2016.
Smt. Varsha Joshi, nominee of Govt. of NCT of Delhi, was appointed as an Additional Director of the Company in place of Shri Vikram Dev Dutt w.e.f. June 1, 2017.
The shareholders of the Company at 17th Annual General Meeting had appointed Shri E.S. Ranganathan, Managing Director of the Company w.e.f. June 1, 2016 to May 31, 2019.
The Board takes this opportunity to place on record its appreciation for valuable contribution made by Shri M. Ravindran, Shri I. S. Rao, Shri Sandeep Kumar and Shri Vikram Dev Dutt during their tenure as the Directors of the Company.
Shri S. S. Rao, Prof. V. Ranganathan and Shri Santosh Kumar Bajpai, Independent Directors were appointed for a period of three years during their first term which is ending on September 11, 2017.
The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as provided under section 149(6) of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, (hereinafter referred to as the âListing Regulationsâ).
The details of programmes for familiarization of Independent Directors with the Company are put up on the website of the Company:- (http://www.iglonline.net//english/5000_media/Investor_Relations/Familiarization-Programmes-for-Independent-Directors.pdf).
The Nomination & Remuneration Committee considers various criteria such as age, qualification, expertise, diversity in composition of Board and likely contribution to the Company while recommending the name of the Independent Directors.
The Board of Directors carried out the evaluation of every Director, committees of Board and the Board as a whole, based on the laid down criteria of performance evaluation.
Corporate Governance
As per the requirements of the Listing Regulations, a detailed Report on Corporate Governance and a certificate regarding compliance of conditions of Corporate Governance are annexed as part of the Annual Report.
Business Responsibility Report
As per the requirements of the Listing Regulations, a detailed Report on Business Responsibility is annexed as part of the Annual Report.
Deposits
During the financial year 2016-17, your Company has not accepted any deposit within the meaning of Sections 73 and 74 of the Companies Act, 2013 read together with the Companies (Acceptance of Deposits) Rules, 2014.
Particulars of Loans, Guarantees or Investments
During the year 2016-17, your Company has not granted loans nor given guarantee nor made any investments.
Amount Which the Company Proposes to Carry to any Reserves, if any
For the year 2016-17, your Company has not transferred any amount to the general reserve of the Company.
Number of Meetings of the Board and Audit Committee
The details of the number of meetings of the Board and Audit Committee held during the financial year ended March 31, 2017 and composition of Audit Committee are given in Corporate Governance Report.
Related Party Transactions
Policy on materiality of Related Party Transactions and on dealing with Related Party Transactions has been disclosed on the website of the Company at:- http://www.iglonline.net/ english/5000_media/About_us/ Related-Party-Policy.pdf.
During the financial year 2016-17, your Company has not entered into transactions with related parties as defined under Section 2(76) of the Companies Act, 2013 read with Companies (Specification of Definitions Details) Rules, 2014.
However, your Company has entered into transactions with parties which fall in the definition of âRelated Partiesâ defined under Listing Regulations. Details of transactions with related parties are being disclosed separately in the Annual Report and since transactions in two contracts with GAIL qualify as material transactions, the same are being placed for shareholdersâ approval in the ensuing Annual General Meeting (AGM).
Prevention of Sexual Harassment at Workplace
As per the requirement of The Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 and rules made thereunder, your Company has constituted Internal Complaints Committee (ICC). During the financial year 2016-17, no complaint with allegation of sexual harassment was received by the Company.
Risk Management and Internal Financial Control Adequacy
Your Company has Risk Management System in place including The Risk Policy & identification of the Risks which are reviewed periodically.
Your Company has laid down a set of standards, processes and structure for internal financial control across the organization and ensures that the same are adequate and operating effectively.
Vigil Mechanism
The Company has a Whistle Blower Policy as part of the vigil mechanism, which provides a platform to the employees, directors, vendors and suppliers of the Company to come forward and raise their genuine concerns without any fear of retaliation and victimization. The Company has engaged an independent third party service provider to manage the operations of the whistle-blower hotline. The details of the Whistle Blower Policy are available on the website of the Company www.iglonline.net. Besides whistle Blower Policy, the Company has also framed vigil mechanism under which the stakeholders can lodge their complaints to Chief Ethics Officer of the Company.
Statutory Auditors
In exercise of powers conferred by Section 139 of the Companies Act, 2013, the Comptroller and Auditor General of India(CAG) vide its letter dated July 09, 2017 has appointed M/s Walker Chandiok & Co LLP, Chartered Accountants as Statutory Auditors of the Company for the financial Year 2017-18.
The Notes on financial statements referred to in the Auditorsâ Report for FY 2016-17 of M/s Walker Chandiok & Co, Chartered Accountants are self-explanatory and do not call for any further comments.
Review and Comments of CAG, on Standalone and Consolidated financial statements for the Financial Year ending 2016-17 form part of financial statements of the Company.
Cost Auditors
Your Company had appointed M/s. Chandra Wadhwa & Co., New Delhi as Cost Auditors for the financial year 2016-17.
As per Section 148 read with Companies (Audit & Auditors) Rules, 2014 and other applicable provisions, if any, of the Companies Act, 2013, the Board of Directors of your Company has re-appointed M/s. Chandra Wadhwa & Co., New Delhi, Cost Accountants, as the Cost Auditors of the Company for the financial year 2017-18. The remuneration proposed to be paid to the Cost Auditors is subject to the ratification by the members at the ensuing Annual General Meeting of the Company.
Secretarial Auditors and Secretarial Audit Report
Pursuant to Section 204 of the Companies Act, 2013, your Company had appointed M/s V.K. Sharma & Co., Practicing Company Secretaries, Noida, as its Secretarial Auditors to conduct the Secretarial Audit of the Company for the financial year 2016-17. The Report of Secretarial Auditor for the financial year 2016-17 is appended as Annexure 3 to this report.
Disclosures Regarding Remuneration
Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) and 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is appended as Annexure 4 to this report.
Extract of Annual Return
Extract of Annual Return of the Company is appended as Annexure 5 to this report.
Conservation of Energy and Technology Absorption, Foreign Exchange Earnings and Outgo
The information in accordance with the provisions of Section 134 (3) (m) of the Companies Act, 2013 read with Rule (8) (3) of the Companies (Accounts) Rules, 2014 is appended as Annexure 6 to this report.
Acknowledgements
Your Directors express their gratitude to the Ministry of Petroleum & Natural Gas, State Governments of NCT of Delhi, Uttar Pradesh & Haryana, Petroleum and Natural Gas Regulatory Board, and Promoter Companies (GAIL & BPCL) for their continuous patronage & support throughout the year.
Your Directors acknowledge wise counsel received from Statutory Auditors and CAG and are grateful for their support and cooperation.
The Directors also acknowledge the support of all Statutory & Local Authorities, Bankers, Media, Station Operators & their employees, contractors, vendors and suppliers.
The Directors place on record their deep appreciation towards IGLâs valued customers for their continued cooperation & support and look forward to the continuance of this relationship in future also.
The Directors wish to express their gratitude to all the shareholders for their continued trust and support.
The Directors also sincerely acknowledge the contributions made by all the employees of IGL for their dedicated services to the Company.
For and on behalf of Board of Directors
Sd/- Sd/-
V. Nagarajan E. S. Ranganathan
Director (Commercial) Managing Director
Place : New Delhi
Date : August 11, 2017
Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting the Sixteenth Annual Report
and the Company''s audited financial statements for the financial year
ended March 31, 2015.
PHYSICAL PERFORMANCE
During the year, the Company recorded sales as under:
Figures in Million Standard Cubic Meters (mmscm)
Product For the Year
2014-15 2013-14 % Growth (YoY)
Compressed
Natural Gas (CNG) 1073.11 1027.54 4.4
Piped Natural gas (PNG) 330.46 356.11 (7.2)
Total 1403.57 1383.65 1.4
Average
Sales Per day 3.84 3.79
(mmscmd)
The Company''s financial performance, for the year ended March 31, 2015
is summarised below:
(Rs. in Crores)
For the Year
ITEMS
2014-15 2013-14
Net Sales & Other Income 3715.53 3934.87
Profit before Depreciation & 797.76 759.34
Tax
Depreciation 148.72 219.54
Profit before tax 649.04 539.80
Provision for tax 211.31 179.54
Profit after tax 437.73 360.26
Profit brought forward from 1403.39 1169.25
previous year
Profit available for 1841.12 1529.51
appropriations
Appropriations:
Proposed dividend 84.00 77.00
Corporate dividend tax 17.10 13.09
Transferred to general reserve 43.77 36.03
Profit carried forward 1696.25 1403.39
1841.12 1529.51
FINANCIAL REVIEW
During the year, gross turnover of the Company has decreased by 6% from
Rs. 4319.37 crores in year 2013-14 to Rs. 4048.58 crores in the year
2014-15 mainly on account of substantial reduction in the selling price
of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG)-domestic
due to allocation of additional domestic gas to City Gas Distribution
(CGD) sector resulting in lower input cost of gas which was passed on
to the customers by reducing selling price of CNG and PNG-domestic in
February 2014. However, Profit after tax has increased by 22% from Rs.
360.26 crores in 2013-14 to Rs. 437.73 crores in 2014-15.
DIVIDEND
Your Directors are pleased to recommend higher dividend of 60% (Rs.
6.00 per share) as against 55% (Rs. 5.50 per share) paid in the last
year. The proposed dividend including corporate dividend tax would
absorb Rs. 101.10 crores.
PERFORMANCE HIGHLIGHTS
COMPRESSED NATURAL GAS BUSINESS
During the year, your Company has augmented its CNG distribution
infrastructure by enhancing the installed compression capacity from
66.81 Lakhs Kg/day in March 2014 to 68.50 Lakhs Kg/day in March 2015.
The total number of CNG stations were 326 as on March 31, 2015 which
included 280 stations in Delhi and 46 stations in National Capital
Region (NCR).
In its ongoing endeavor to keep customer satisfaction as the top most
priority, your Company has taken various initiatives as under:
1. An alternate cashless mode of payment for CNG customers by using
Credit / Debit card at all IGL owned CNG stations has been made
available through Electronic Data Terminals (EDC).
2. In its endeavor to make genuine lubricants easily available to its
CNG customers, your Company has commenced sale of MAK GE Lubes at
selected IGL owned CNG stations.
The estimated number of vehicles running on CNG in Delhi and NCR as on
March 31, 2015 was over 800,000 including 540,000 private vehicles.
PIPED NATURAL GAS BUSINESS
PNG - Domestic Connections
A major thrust has been given to the expansion of PNG network in Delhi
and NCR i.e. Gautam Budh Nagar (Noida, Greater Noida) and Ghaziabad.
Your Company has increased its steel pipeline network from 658 kms in
FY 2013-14 to 680 kms in FY 2014-15 and MDPE network from 8437 kms in
FY 2013-14 to 8967 kms in FY 2014-15.
During the year, your Company provided 59,029 PNG connections in Delhi
& 42,256 PNG connections in NCR and the total number of connections
went up from 4,59,467 in March 2014 to 5,60,752 in March 2015. It is
noteworthy that your Company broke its own record of highest number of
connections in a year by providing 1,01,285 domestic PNG connections in
Financial Year 2014-15. Highest number of PNG connections provided by
your Company in 2014-15 is also a record in our country''s CGD business.
Conducting business through electronic means is the buzzword in a
technology driven world. During the year your Company has taken major
initiative to upgrade it business process and introduce technologically
advanced platform for customer interface. Customer app on mobile phone
has been successfully rolled out. PNG customer will be able to obtain
important services pertaining to their PNG connection through this
mobile app. This customer app shall bring qualitative improvements in
our service levels.
Your Company has also undertaken a pilot project of customer self help
kiosk. First two such kiosks have been commissioned in prominent public
places in Delhi & Noida. Depending on customer response such
installations will be further increased.
PNG - Commercial & Industrial
Your Company has maintained its focus on the Industrial and Commercial
segment as one of the potential growth areas in the forthcoming years.
There was some decline in sales in commercial & industrial segment in
financial year 2014-15, primarily due to stiff competition from
alternate fuels prices like Furnace oil (FO)/Diesel which have come
down drastically due to lower crude prices. However, with its
concentrated efforts, the total number of commercial customers
increased from 1291 in March 2014 to 1566 in March 2015 and the
industrial customers from 584 in March 2014 to 726 in March 2015.
Your Company has already expanded its pipeline network to most of the
major industrial areas of Delhi and NCR i.e. Gautam Budh Nagar (Noida,
Greater Noida) and Ghaziabad. Pipeline laying activities are underway
in the remaining major industrial areas in NCR.
REGULATORY DEVELOPMENTS
Petroleum and Natural Gas Regulatory Board (PNGRB) vide its order no.
TO/03/2012 dated April 9, 2012 determined the per unit network tariff
and compression charge for the CGD Network of the Company for Delhi,
based on submission of data by the Company in May 2009 and certain
assumptions taken by PNGRB in this regard. The tariffs determined by
PNGRB are much lower than the rates submitted by the Company.
Further, PNGRB made the determined tariffs applicable with
retrospective effect from April 1, 2008. In its order PNGRB stated that
the modalities and time frame for refund of differential Network Tariff
and Compression Charge would be decided subsequently.
The Company filed a writ petition on April 10, 2012 against the order
of PNGRB dated April 9, 2012 before the Hon''ble Delhi High Court. The
Hon''ble High Court of Delhi has passed the judgment in this case on
June 1, 2012 and has quashed the PNGRB order dated April 9, 2012. PNGRB
filed special leave petition before the Hon''ble Supreme Court of India
against the order dated June 1, 2012 of Hon''ble Delhi High Court.
On July 1,2015, Hon''ble Supreme Court of India has dismissed the
special leave petition of PNGRB.
ASSOCIATE COMPANIES
CENTRAL U.P. GAS LIMITED (CUGL)
CUGL is engaged in City Gas Distribution in the cities of Kanpur and
Bareilly in Uttar Pradesh. Your Company holds 50% of paid-up equity
share capital of CUGL.
MAHARASHTRA NATURAL GAS LIMITED (MNGL)
During Financial Year 2014-15 MNGL became an Associate Company after
acquisition of 4.75 crore shares of MNGL in the first tranche at a
price of Rs. 38/- per equity share from certain financial investor
shareholders of MNGL. MNGL is in City Gas Distribution business in Pune
in the State of Maharashtra.
During the Financial Year 2015-16, the Company has acquired 25 lac
shares in the second and final tranche at a price of Rs. 38/- per
equity share, making its total holding to 5 crores shares which
constitutes 50% of the paid-up share capital of MNGL.
The statement containing the salient features of the financial
statement of Company''s Associates pursuant to first proviso to
sub-section (3) of Section 129, is appended as Annexure 1 to this
Report.
FUTURE OUTLOOK
Your Company has drawn out plans to further consolidate its presence in
Delhi and NCR by investing Rs. 250 Crores during the financial year
2015-16.
In an effort to curb air pollution and to improve ambient air quality
in Delhi & NCR, the National Green Tribunal (NGT) in a landmark ruling
on April 7, 2015 banned diesel vehicles over ten years old from plying
on Delhi roads and all petrol vehicles which are more than 15 years old
shall not be registered in NCR & Delhi. It is expected that more
numbers of CNG private cars would be added as customers would prefer
CNG over Diesel for their new purchases also.
It is also expected that with an increase in allocation of domestic gas
to City Gas Distribution (CGD) entities, the price differential of CNG
versus alternate liquid fuel will continue to drive the conversion of
petrol driven private vehicles to CNG mode. Introduction of more CNG
variant models by car manufacturers would further add to CNG volumes.
Your Company has aggressive plans to expand its PNG customer base in
alignment with mission of expanding PNG launched by Government of
India. The Company shall endeavour to reach 3 lakh new kitchens in FY
2015-16. Expanding PNG connectivity into newly constructed housing
units in Gautam Budh Nagar by builders / government will be given
priority to register ambitious growth. The sustained marketing campaign
by the Company in Gautam Budh Nagar & Ghaziabad has encouraged builders
& developers to integrate PNG at drawing board stage. This approach
will enable your Company to utilize assets better in coming years. New
high volume industrial & commercial customers will continue to be
target for achieving higher growth by your Company.
The Company is looking forward to expand its footprints in new cities
through participation in bidding process of PNGRB and by way of
strategic investment in other CGD Companies.
INFORMATION TECHNOLOGY
Your Company has embarked on attaining new heights in the field of IT
enablement through performing upgrade of their existing ERP system on
latest hardware platform. As part of upgrading the ERP software
landscape, your Company has performed technical and functional upgrade
of the existing ERP landscape to the latest technology platform of SAP
ECC6.0 EHP -7. Better monitoring and controlling of critical business
processes alongwith automation and optimization have been achieved
through implementation of new functionalities and modules.
Your Company has developed new & advanced customer centric applications
to provide the customers user friendly experience over portal which can
be accessed anywhere even on handheld devices making it convenient to
process self- help related services at ease. These applications
including Customer Relationship Management (CRM), Business
Communication Management (BCM), Multichannel Foundation For Utilities
(MCFU) would be released shortly enabling the customers to leverage the
latest technology available in the market to enhance their satisfaction
through portability of use, convenience, ease of operation and time
saving. Apart from the above, your Company has implemented an android
based mobile application "IGLCONNECT" for providing self-help related
services viz. bill related information, payment options, complaints,
online connection requests etc.
Your Company is committed to provide all its customers and stakeholders
with latest technology related services and would continue to enhance
the same through continued support and appreciation of its customers.
HUMAN RESOURCES
The Company realizes that the challenges of the future can be best met
with competent and motivated human resources. The Company is taking
various HR initiatives to add value to its pool of human talent and
integration of individual goals with that of the Company. Company is
reviewing compensation packages and other facilities of its employees
to make them more competitive and aligned with industry practices.
Training & Development of the employees forms an integral part of
Company''s policy towards achieving its objective. Assessment Center &
360 degree appraisal system have been introduced for DGM and above
level employees.
During the year, Company also inducted various young professionals at
entry level to infuse talent in the professional arena. The Company has
also maintained a harmonious and cordial relation among its employees.
The Company recognizes and appreciates the contribution of all its
employees in its growth path.
HEALTH SAFETY AND ENVIRONMENT (HSE)
Your Company has always accorded top most priority to Fire and Safety
related issues and has focused its continual efforts to maintain a good
safety culture and to improve Fire and Safety standards.
It is a matter of pride that your Company has crossed 67 Million Man
Hours accident free till March 31, 2015. This is a milestone
achievement resulted from continuous efforts of all the individuals
working directly and indirectly for the Company. During FY 2014-15,
your Company has been conferred various prestigious safety awards/
appreciation certificates viz. Green Tech Safety Award (platinum
category), Safety Innovation Award by Institute of Engineers, Special
Commendation by Golden Peacock Occupational Health & Safety Award and
Certificate of Appreciation from National Safety Council to recognize
the excellence in the field of Fire & Safety management.
For ensuring safety and business sustainability, an initiative was
taken to enhance CNG cylinder validation infrastructure and has
successfully resulted in increasing the cylinder testing centres more
than the requirement. Also, safety drives to educate the CNG consumers
were taken up regularly to get their CNG cylinders validated.
Safety inspections of CNG vehicles are also done periodically on random
basis to check compliances of safety standards and to prevent unsafe
condition arising out of gas leakage from the CNG kits. For Safety of
CNG vehicles, free safety clinics are periodically organized where
inspection of CNG kits and fittings is undertaken.
Training is regularly imparted to the employees, contract staff at CNG
stations, DTC drivers and consumers of CNG and PNG. To create safety
awareness and to impart training to all category of consumers, a
dedicated group of trainers with fully equipped training van is
deployed which conducts safety clinics along with practical
demonstration.
In line with Company''s HSE policy, Safety Audits and other statutory
compliances are done to ensure safety in all facets of IGL''s
operations.
Advanced High Pressure Water Mist cum Foam based protection systems
have been installed at various Mega CNG stations and are being
installed at rest of the CNG stations to deal any fire emergency in its
initial stage.
Emergency Control Centres (ECC) established at strategic locations
across Delhi & NCR are manned round the clock to respond fast to any
gas leak or emergency situation. Two Emergency Response Vehicles (ERVs)
are stationed at two distantly located ECC across Delhi. Three more
ERVs planned to strengthen emergency response shall be deployed in
coming months.
IMPLEMENTATION OF INTEGRATED MANAGEMENT SYSTEM
Your Company has successfully implemented and certified for Total
Integrated Management System in 2014-15 for:
1. Quality Management System ISO 9001:2008
2. Environmental Management System ISO 14001:2004
3. Occupational Health and Safety Management System OHSAS 18001:2007
CORPORATE SOCIAL RESPONSIBILITY
During the financial year 2014-15, the Board of Directors of your
Company approved the new CSR policy keeping in view the requirements
under Companies Act, 2013. Various CSR projects have been initiated and
are being taken forward under the IGL CSR Policy.
The Company has been supporting meritorious students from
under-privileged strata of society for specialised coaching for
engineering entrance examination (JEE) through a scheme run by an NGO.
It is a matter of satisfaction that in 2014-15, eight out of twelve
students sponsored by your Company have qualified for admission in IIT
and other leading engineering colleges.
Your Company realizes the need that good health is paramount to ensure
safety on the roads. Therefore, your Company has started the ''IGL
Swasth Saarthi'' - a comprehensive health management programme for auto
and taxi drivers in Delhi & NCR wherein a series of comprehensive
Health check-up camps are being organised at CNG stations through a
leading hospital. Your Company is also funding the daily training
programme for taxi drivers on Gender Sensitisation & Skill Management
being organised by Transport Department, Govt. of NCT of Delhi, for all
taxi drivers going for annual fitness test. With the objective of
covering the risk in case of accidents while driving for 3.25 lakh
drivers of CNG run public transport, your Company has bought a Group
Accident insurance cover under ''IGL Suraksha Yojna''.
Considering the ever growing demand for skilled manpower across sectors
as a result of ''Make in India'' programme, your Company also contributed
towards a Skill Development programme for unemployed youth in the
fields of Gas plumbing, Welding, Fitting and Fashion designing, by
providing technical oriented quality training.
As a part of Swach Bharat programme, your Company is in the process of
working with local authorities towards development of new public toilet
complexes and upgradation of toilet facilities in government run
schools.
The Annual Report on CSR activities in accordance with the Companies
(Corporate Social Responsibility Policy) Rules, 2014, is appended as
Annexure 2 to this report.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the provisions of Section 134 (5) of the Companies Act,
2013, your Directors hereby confirm that:
i) in the preparation of Annual Accounts for the financial year ended
March 31, 2015, the applicable accounting standards have been followed;
ii) they have selected such accounting policies and applied them
consistently except where otherwise stated in the Notes to Accounts and
made judgments and estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company at the
end of the financial year and of the profit of the Company for that
period;
iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 2013 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv) they have prepared the Annual Accounts for the Financial Year ended
March 31, 2015 on a going concern basis;
v) they have laid down internal financial controls to be followed by
the Company and that such internal financial controls are adequate and
were operating effectively; and
vi) the directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
DIRECTORS
Shri M. Ravindran, nominee of Gail (India) Limited (GAIL), was
appointed as Chairman of the Board in place of Shri K.K. Gupta w.e.f.
January 14, 2015.
Shri V. Nagarajan, nominee of Bharat Petroleum Corporation Limited
(BPCL), was appointed as Director (Commercial) w.e.f. September 4,
2014.
Shri R.K. Sharma, nominee of GAIL, was appointed as Additional Director
of the Company in place of Shri Rajeev Kumar Mathur w.e.f. October 15,
2014.
Shri I.S. Rao, nominee of BPCL, was appointed as Additional Director of
the Company w.e.f. January 14, 2015. Shri R.K. Sharma ceased to be
director w.e.f. January 14, 2015
Dr. Sudha Sharma and Shri. Raghu Nayyar were appointed as Additional
and Independent Directors w.e.f. March 20, 2015.
The proposal for appointment of Dr. Sudha Sharma and Shri Raghu Nayyar,
as Independent Directors of the Company is being placed before the
shareholders for approval in the ensuing Annual General Meeting (AGM)
of the Company.
Smt. Gitanjali Gupta Kundra, nominee of Government of NCT of Delhi, was
appointed as Additional Director of the Company in place of Shri
Gyanesh Bharti w.e.f. April 20, 2015.
The shareholders of the Company at 15th Annual General Meeting had
appointed Shri S.S. Rao, Shri Santosh Kumar Bajpai and Shri V.
Ranganathan as Independent Directors of the Company w.e.f. September
12, 2014 to September 11,2017.
Shri Rajesh Chaturvedi ceased as a Director of the Company w.e.f.
August 31, 2014.
The Board takes this opportunity to place on record its appreciation
for valuable contribution made by Shri K.K. Gupta, Shri Rajesh
Chaturvedi, Shri Rajeev Kumar Mathur, Shri R.K. Sharma and Shri.
Gyanesh Bharti during their tenure as Board Members.
In terms of Section 152 of the Companies Act, 2013, no Director is
liable to retire by rotation at the ensuing Annual General Meeting.
The Company has received declarations from all the Independent
Directors of the Company confirming that they meet the criteria of
independence as provided under section 149(6) ofthe Companies Act, 2013
and clause 49 ofthe Listing Agreement.
The details of programmes for familiarization of Independent Directors
with the Company are put up on the website of the Company
(http://iglonline.net/Documents/FamiliarizationProgrammes-for-
Independent-Directors.pdf).
The Nomination & Remuneration committee considers various criteria such
as age, qualification, expertise, diversity in composition of Board and
likely contribution to the Company while recommending the name of
Independent Director.
During the financial year 2014-15, Nomination & Remuneration committee
recommended to the Board, the Performance Linked Incentive Scheme for
the employees of the Company. The Company has engaged a reputed HR
consultant for study and revision of remuneration of employees of the
Company.
The Nomination & Remuneration Committee has laid down criteria such as
attendance and participation in the meetings, adherence to ethical
standards, integrity, code of conduct, interpersonal relations with
other Directors, safeguard of confidential information of the Company,
observing corporate governance standards etc. to carry out evaluation
of every Director''s performance.
The Board of Directors carried out the evaluation of every Director,
committees of Board and the Board as a whole based on the laid down
criteria of performance evaluation.
CORPORATE GOVERNANCE
As per the requirements of the Clause 49 of the Listing Agreement with
the Stock Exchanges a detailed Report on Corporate Governance and a
certificate regarding compliance of conditions of Corporate Governance
are annexed as part of the Annual Report.
DEPOSITS
During the financial year 2014-15, your Company has not accepted any
deposit within the meaning of Sections 73 and 74 of the Companies Act,
2013 read together with the Companies (Acceptance of Deposits) Rules,
2014.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
During the year 2014-15, IGL has made investment of Rs. 180.50 crores
in M/s Maharashtra Natural Gas Ltd. on March 26, 2015.
AMOUNT WHICH THE COMPANY PROPOSES TO CARRY TO ANY RESERVES, IF ANY
For the year 2014-15, your Company has proposed to transfer Rs. 43.77
crores to the general reserve of the Company.
NUMBER OF MEETINGS OF THE BOARD AND AUDIT COMMITTEE
The details of number of meetings of the Board and Audit Committee held
during the financial year ended March 31, 2015 and composition of Audit
Committee are given in Corporate Governance Report.
RELATED PARTY TRANSACTIONS
The Company has formulated a Policy on materiality of Related Party
Transactions and on dealing with Related Party Transactions and the
same has been disclosed on the website of the Company at weblink
http://iglonline.net/Related-Party- Policy.pdf.
During the financial year 2014-15, your Company has not entered into
transactions with related parties as defined under Section 2(76) of the
Companies Act, 2013 read with Companies (Specification of Definitions
Details) Rules, 2014.
However, your Company has entered into transaction with GAIL & BPCL
(Promoter Companies) which falls in the definition of "Related Parties"
defined under Clause 49 of the Listing Agreement. Details of
transactions with related parties are being disclosed separately in the
Annual Report and since transactions in a contract with GAIL qualify as
material transactions, the same is being placed for shareholders''
approval in the ensuing Annual General Meeting (AGM).
PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
As per the requirement of The Sexual Harassment of Women at Workplace
(Prevention, Prohibition & Redressal) Act, 2013 and Rules made
thereunder, your Company has constituted Internal Complaints Committee.
During the year, no complaint with allegation of sexual harassment was
received by the Company.
RISK MANAGEMENT AND INTERNAL FINANCIAL CONTROL ADEQUACY
During the financial year 2014-15, the Company has developed a Risk
Management System including The Risk Policy & identification of the
Risks which are reviewed periodically.
Your Company has laid down set of standards, processes and structure
which enables to implement internal financial control across the
organization and ensure that the same are adequate and operating
effectively.
VIGIL MECHANISM
Your Company has implemented a Whistle Blower Policy as part of the
vigil mechanism to comply with the regulatory requirements laid down by
the Companies Act, 2013 and Clause 49 of the Listing Agreement.With the
implementation of vigil mechanism, the Company provides a platform to
the employees, directors, vendors and suppliers of the Company to come
forward and raise their genuine concerns without any fear retaliation
and victimisation. The Company has engaged an independent third party
service provider to manage the operations of whistle-blower hotline.The
details of the Whistle Blower Policy are available on the website of
Company (www.iglonline.net).
STATUTORY AUDITORS
M/s. Deloitte Haskins & Sells, Chartered Accountants, Auditors of the
Company retire at the ensuing Annual General Meeting and being
eligible, offers themselves for re-appointment.
The Notes on financial statements referred to in the Auditors'' Report
are self-explanatory and do not call for any further comments.
COST AUDITORS
Your Company had re-appointed M/s. Chandra Wadhwa & Co., New Delhi as
Cost Auditors for the financial year 2014-15.
As per Section 148 read with Companies (Audit & Auditors) Rules, 2014
and other applicable provisions, if any, of the Companies Act, 2013,
the Board of Directors of your Company has appointed M/s. Chandra
Wadhwa & Co., New Delhi, Cost Accountants as the Cost Auditors of the
Company for the financial year 2015-16. The remuneration proposed to be
paid to the Cost Auditors is subject to the ratification by the members
at the ensuing Annual General Meeting of the Company.
SECRETARIAL AUDITORS AND SECRETARIAL AUDIT REPORT
Pursuant to Section 204 of the Companies Act, 2013, your Company had
appointed M/s V.K. Sharma & Co., Practicing Company Secretaries, Noida
as its Secretarial Auditors to conduct the Secretarial Audit of the
Company for the financial year 2014-15. The Report of Secretarial
Auditor for the financial year 2014-15 is appended as Annexure 3 to
this report.
DISCLOSURES REGARDING REMUNERATION
Disclosures pertaining to remuneration and other details as required
under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of
the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 is appended as Annexure 4 to this report. Further, none of
the employees fall under the purview of Rule 5(2) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014.
EXTRACT OF ANNUAL RETURN
Extract of Annual Return of the Company is appended as Annexure 5 to
this report.
CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information in accordance with the provisions of Section 134(3)(m)
of the Companies Act, 2013 read with Rule (8)(3) of the Companies
(Accounts) Rules, 2014 is appended as Annexure 6 to this report.
ACKNOWLEDGEMENTS
Your Directors express their gratitude to the Ministry of Petroleum &
Natural Gas, State Governments of NCT of Delhi & Uttar Pradesh,
Petroleum and Natural Gas Regulatory Board, and Promoter Companies
(GAIL & BPCL) for their continuous patronage & support throughout the
year.
The Directors also acknowledge the support of all Statutory & Local
Authorities, Bankers, Media, Station Operators & their employees,
contractors, vendors and suppliers.
The Directors place on record their deep appreciation towards IGL''s
valued customers for their continued co-operation & support and look
forward to the continuance of this relationship in future also.
The Directors wish to express their gratitude to all the shareholders
for their continued trust and support.
The Directors also sincerely acknowledge the contributions made by all
the employees of IGL for their dedicated services to the Company.
For and on behalf of Board of Directors
sd/- sd/-
V. Nagarajan Narendra Kumar
Director (Commercial) Managing Director
Place: New Delhi
Date: August 5, 2015
Mar 31, 2014
THE MEMBERS
The Directors have pleasure in presenting the Fifteenth Annual Report
alongwith Audited Accounts of the Company for the year ended March 31,
2014.
PHYSICAL PERFORMANCE
During the year, the Company recorded sales as under :
Figures in Million Standard Cubic Meters (mmscm)
Product For the Year % Growth
2013-2014 2012-2013 (YoY)
Compressed
Natural Gas 1027.54 1004.92 2.3
(CNG)
Piped Natural 356.11 332.83 7.0
Gas (PNG)
Total 1383.65 1337.75 3.4
Average Sales
Per day 3.79 3.67
(mmscmd)
(Rs. in Crores)
ITEMS For the Year
2013-2014 2012-2013
Net Sales & Other Income 3943.24 3379.89
Profit before Depreciation
& Tax 759.34 714.85
Depreciation 219.54 186.66
Profit before tax 539.80 528.19
Provision for tax 179.54 174.06
Profit after tax 360.26 354.13
Profit brought forward from 1169.25 940.61
previous year
Profit available for
appropriations 1529.51 1294.74
Appropriations:
Proposed dividend 77.00 77.00
Corporate dividend tax 13.09 13.08
Transferred to general reserve 36.03 35.41
Profit carried forward 1403.39 1169.25
1529.51 1294.74
FINANCIAL REVIEW
The Company has been showing consistently good financial performance
both in terms of turnover and profitability. During the year, gross
turnover of the Company increased by 16% from Rs. 3724.06 crores in
year 2012-13 to Rs. 4327.74 crores in the year 2013-14. Profit after
tax also went up by 2% from Rs. 354.13 crores in 2012-13 to Rs. 360.26
crores in 2013-14.
DIVIDEND
Your Directors are pleased to recommend dividend of 55% (Rs 5.50 per
share) as paid in the last year. The proposed dividend including
corporate dividend tax would absorb Rs. 90.09 crores.
PERFORMANCE HIGHLIGHTS
COMPRESSED NATURAL GAS BUSINESS
During the year, your Company has augmented its CNG distribution
infrastructure by enhancing the installed compression capacity from
63.82 Lakhs Kg/day in March 2013 to 66.81 Lakhs Kg/day in March 2014.
The total number of CNG stations was 325 as on March 31, 2014 which
included 281 stations in Delhi and 44 stations in National Capital
Region (NCR).
In its ongoing endeavor to keep customer satisfaction as the top most
priority, your Company has taken a number of initiatives, as elaborated
below:
1. An alternate cashless mode of payment for CNG customers at select
IGL owned CNG stations has been started by introducing Electronic Data
Terminals (EDC) through which any CNG customer can pay for CNG fill by
using Credit / Debit card.
2. In its endeavor to make genuine lubricants easily available to its
CNG customers, your Company has signed an MOU with Bharat Petroleum
Corporation Ltd. for sale of MAK GE Lubes at IGL owned CNG stations.
3. With the objective of providing best fuelling experience to the
customer at its CNG stations, your Company is imparting behavioral
training on various aspects of customer handling to contractual staff
deployed at all its CNG stations across Delhi and NCR.
On behalf of your Company, M/s IMRB had conducted an independent
customer satisfaction survey, wherein it has emerged that your Company
has performed well on Customer Satisfaction Index (CSI).
The estimated number of vehicles running on CNG in Delhi and NCR as on
March 31, 2014 was over 7,00,000 including 4,80,000 private vehicles.
PIPED NATURAL GAS BUSINESS
PNG - Domestic Connections
A major thrust has been given to the expansion of Piped Natural Gas
(PNG) network in Delhi and NCR i.e. Gautam Budh Nagar (Noida, Greater
Noida) and Ghaziabad.
Your Company has increased its steel pipeline network from 631 kms in
FY 2012-13 to 658 kms in FY 2013-14 and MDPE network from 7783 kms in
FY 2012-13 to 8437 kms in FY 2013-14.
For PNG domestic connections, Delhi has been divided into 70 areas. The
pipeline network now covers 67 areas and work is in progress to extend
the network to the remaining areas.
During the year, your Company provided 46,069 PNG connections in Delhi
& 26,702 PNG connections in NCR and the total number of connections
went up from 3,86,696 in March 2013 to 4,59,467 in March 2014. A total
of 72,771 domestic PNG connections were added in Financial Year
2013-14.
Working on new initiatives to bring measurable results in terms of
customer delight is a part of regular activity of the Company.
Launching of customer portal also brought quantifiable improvements in
our service levels.
To take this process forward a new initiative was launched recently in
March 2014 to add value in our billing system. A pilot project was
started to collect meter readings of PNG customers through smart
phones.
PNG Â Commercial & Industrial
Your Company has maintained its focus on the Industrial and Commercial
segment as one of the potential growth areas in the forthcoming years.
With its concentrated efforts in the year 2013-14, the total number of
commercial customers increased from 964 in March 2013 to 1291 in March
2014 and the industrial customers from 418 in March 2013 to 584 in
March 2014.
Your Company has already expanded its pipeline network to most of the
major industrial areas of Delhi and NCR i.e. Gautam Budh Nagar (Noida,
Greater Noida) and Ghaziabad. Pipeline laying activities are underway
in the remaining major industrial areas in NCR.
REGULATORY DEVELOPMENTS
Petroleum and Natural Gas Regulatory Board (PNGRB) vide its order no.
TO/03/2012 dated 9 April 2012 determined the per unit network tariff
and compression charge for the City Gas Distribution (CGD) Network of
the Company for Delhi, based on submission of data by the Company in
May 2009 and certain assumptions taken by PNGRB in this regard. The
tariffs determined by PNGRB are much lower than the rates submitted by
the Company.
Further, PNGRB made the determined tariffs applicable with
retrospective effect from 1 April 2008. In its order PNGRB stated that
the modalities and time frame for refund of differential Network Tariff
and Compression Charge would be decided subsequently.
The Company filed a writ petition on 10 April 2012 against the order of
PNGRB dated 9 April 2012 before the Hon''ble Delhi High Court. The
Hon''ble High Court of Delhi has passed the judgment in this case on 1
June 2012 and has quashed the PNGRB order dated 9 April 2012. PNGRB has
filed special leave petition before the Hon''ble Supreme Court of India
against the order dated 1 June 2012 of Hon''ble Delhi High Court. Matter
is still pending in the Hon''ble Supreme Court of India.
FUTURE OUTLOOK
Your Company has drawn out plans to further consolidate its presence in
Delhi and NCR by investing Rs. 240 Crores during the financial year
2014-15.
In CNG segment, the fleet of Private Bus Cluster is expected to reach
around 1500 buses and also DTC is expected to augment its bus fleet by
around 1400 new buses by the end of 2014-15. It is also expected that
with an increase in allocation of domestic gas to CGD entities, the
price differential of CNG versus alternate liquid fuel will continue to
drive the conversion of petrol driven private vehicles to CNG mode.
Introduction of more CNG variant models by car manufacturers would
further add to CNG Volumes.
Your Company has aggressive plans to expand its pipeline infrastructure
to increase the coverage and penetration of the network. Company has
taken proactive steps to increase its presence in domestic PNG segment
with growth and development of newer parts of Gautam Budh Nagar.
Dialogues with builders & developers have yielded results and PNG is
now a preferred option among builders who now offer PNG as an
additional feature in their offerrings. This approach will enable your
Company to utilize assets better. It shall be the continuous endeavour
to expand fast the customer base on both industrial & commercial and
domestic fronts.
The Company is looking forward to expand its footprints in new cities
through participation in bidding process of PNGRB and by way of
strategic investment in other CGD Companies.
INFORMATION TECHNOLOGY
Your Company has decided to further strengthen the IT infrastructure
supporting business needs by implementing new software modules and
performing functional upgrade of existing SAP landscape. Under this
initiative, new SAP components viz. CRM, BCM, BI&BO, DMS&DP, MII,
Mobility and GRC etc. have been procured from SAP. The work for the
functional upgrade to ECC - 6, EHP - 6 and implementation of these new
software components is underway.
Your Company has also taken steps to train and educate the employees in
their respective SAP modules to develop in-house competency for using
best practices in the implementation of new SAP software components and
to enhance usability of existing modules. A number of IGL employees
have been cer tified by SAP in their respective modules and are ready
to contribute through knowledge acquired under the training programme.
Shri Narendra Kumar, Managing Director, launches the first card payment
facility for CNG customers at CGO complex CNG station.
Your Company has also added e-bill functionality in existing customer
portal application with an aim to ensure convenience to customers and
promoting environment friendliness. Your Company has developed a "Bill
Watch System" for ensuring transparency & timely payment to vendors.
HUMAN RESOURCES
IGL values its human resources and is always committed in providing
them an environment of learning and growth. Various welfare measures,
employee oriented policies drive the human resources to deliver their
best in achieving the organizational performance.
During the year, the Company has maintained a harmonious and cordial
relation among its employees. As a welfare measure, various sports
activities were organized so as to motivate employees for greater
participation in the field of sports.
A scheme of "Naya Prayas" has been initiated for rewarding new ideas
generated and implemented at their workplaces.
During the year, Company also inducted various young professionals at
entry as well as junior management level to infuse talent in the
professional arena.
There was no employee in the Company drawing remuneration more than
limits prescribed under Section 217 (2A) of the Companies Act, 1956
read with the Companies (Particulars of Employees) Rules, 1975.
HEALTH SAFETY AND ENVIRONMENT (HSE)
Your Company has always accorded top most priority to Fire and Safety
related issues. To maintain a good safety culture throughout the
Company, continuous efforts have been made.
Your Company has been awarded Greentech Safety Award in Golden category
to recognize the excellence in the field of Fire & Safety management.
The Company has also won Special
Shri Narendra Kumar, Managing Director speaks at a session in the 5 th
Asia Pacific Natural Gas Vehicles Association (ANGVA) Conference at
Greater Noida
Shri Narendra Kumar, Managing Director, receiving Greentech Award 2013
for Safety along with senior officials of IGL.
Commendation Golden Peacock Occupational Health & Safety Award 2014 in
Gas Sector.
Training is regularly imparted to the employees, contract staff at CNG
stations, DTC drivers and consumers of CNG and PNG. To create safety
awareness and impart training to all category of consumers, a dedicated
group of trainers with fully equipped training van is deployed which
conducts safety clinics along with practical demonstration.
In line with Company''s HSE policy, Safety Audits and other statutory
compliances are done to ensure safety in all facets of IGL''s
operations.
A Safety drive to educate the customers/ consumers through print and
electronic media is taken up at major scale to educate the users of CNG
vehicles to get their CNG cylinders validated.
Safety inspection of CNG vehicles is also done periodically on random
basis to check compliances of safety standards and to prevent unsafe
condition arising out of gas leakage from the CNG kits. For Safety of
CNG vehicles, free safety camps are periodically organized where
inspection of CNG kits is undertaken.
To further enhance the safety at CNG stations, all the sites are being
equipped with CCTV cameras. Advanced High Pressure Water Mist cum Foam
based protection systems are being installed at CNG stations to deal
any fire emergency in its initial stage.
Emergency Control Centres (ECC) are established at strategic locations
across Delhi & NCR and manned round the clock to respond fast to any
gas leak or emergency situation. Two Emergency Response Vehicles (ERVs)
are stationed at two distantly located Emergency Control Centres across
Delhi. One ECC and one ERV is planned to be established in Ghaziabad,
NOIDA Area of NCR, where expansion activities of IGL are underway.
Shri Narendra Kumar, Managing Director, receiving Special Commendation
Golden Peacock Occupational Health & Safety Award  2014 (in Gas
Sector) along with senior officials of IGL.
SOCIAL RESPONSIBILITY
Your Company has been following a Corporate Social Responsibility (CSR)
policy under which Health & Environment, Education, and Care &
Empowerment of underprivileged have been the thrust areas for IGL. The
Company is supporting meritorious students from under-privileged strata
of society for specialised coaching for IIT entrance examination
through a scheme run by an NGO. It is a matter of satisfaction that out
of ten students sponsored by IGL in 2013-14, four qualified for
admission in IITs, whereas the remaining six qualified for other
leading engineering colleges.
Your Company realizes the need that good health including healthy eye
sight of drivers is paramount to ensure safety on the roads. Therefore,
your Company organised a series of Health checkup camps for drivers at
its CNG stations across
Dr. M. Veerappa Moily, the then Union Minister for Petroleum & Natural
Gas, Govt. of India launches IGL Suraksha Yojna, a group accident
insurance scheme for CNG vehicle drivers of public transport, in the
presence of Smt. Sheila Dikshit, the then Chief Minister of Delhi, Smt.
Panabaaka Lakshmi, the then Union Minister of State for Petroleum &
Natural Gas, Shri Ramakant Goswami, the then Transport Minister of
Delhi and Shri K. K. Gupta, Chairman, IGL.
A Health Check-up camp for drivers of CNG based public transport in
progress at a CNG station as a part of IGL''s CSR programme.
Delhi & NCR. With the objective of covering the risk in case of
accidents for nearly 3 lakh drivers of CNG run public transport
drivers, your Company also launched a group accident insurance scheme
titled ''IGL Suraksha Yojna''.
Your Company also contributed towards development of green area for
children in MCD run primary schools in East Delhi.
Keeping in view the provisions of the Companies Act 2013, your Company
has formed a Board level CSR Committee and the formulation of new CSR
policy is under process.
A demonstration of Advanced Fire Protection System at a CNG Station in
progress
Shri Narendra Kumar, Managing Director and Shri Rajesh Chaturvedi,
Director (Commercial) presenting the contribution cheque of IGL
employees towards LG/CM Relief Fund in view of Uttarakhand Flood
tragedy to the then Delhi Chief Minister, Smt. Sheila Dikshit in the
presence of senior IGL officials.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the provisions of Section 217(2AA) of the Companies Act,
1956, your Directors hereby confirm that:
i) in the preparation of Annual Accounts for the financial year ended
March 31, 2014, the applicable accounting standards have been followed;
ii) they have selected such accounting policies and applied them
consistently except where otherwise stated in the Notes to Accounts and
made judgments and estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company at the
end of the financial year and of the profit of the Company for the year
under review;
iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; and
iv) they have prepared the Annual Accounts for the Financial Year ended
March 31, 2014 on a going concern basis.
BOARD OF DIRECTORS
Shri K. K. Gupta, retires by rotation at the ensuring Annual General
Meeting and being eligible, offers himself for re- appointment.
Shri Gyanesh Bharti, nominee of Government of NCT of Delhi, was
appointed as Additional Director of the Company in place of Shri Puneet
Kumar Goel w.e.f. February 10, 2014.
The Board takes this opportunity to place on record its appreciation
for valuable contribution made by Shri Puneet Kumar Goel, during his
tenure as Board Member.
Shri Oscar Fernandes, the then Union Minister for Transport, Road and
Highways and Labour & Employment, inaugurates IGL stall at the 5th
ANGVA Exhibition at Greater Noida in the presence of Shri B. C.
Tripathi, CMD, GAIL (India) Ltd., Shri Narendra Kumar, Managing
Director and Shri Rajesh Chaturvedi, Director (Commercial).
Shri S. S. Rao, Shri Santosh Kumar Bajpai and Prof. V. Ranganathan,
Independent Directors of the Company, have given declarations that they
meet the criteria of independence as provided under section 149(6) of
the Companies Act, 2013. Keeping in view the relevant provisions of
the Companies Act, 2013, these Directors are being appointed as
Independent Directors to hold office as per their tenure of appointment
mentioned in the Notice of the forthcoming Annual General Meeting (AGM)
of the Company.
STATUTORY AUDITORS
M/s. Deloitte Haskins & Sells, Chartered Accountants, Auditors of the
Company retire at the ensuing Annual General Meeting and being
eligible, offers themselves for re-appointment.
Shri Praful Patel, the then Union Minister of Heavy Industries and
Public Enterprises, being welcomed at IGL Stall by Shri B. C. Tripathi,
CMD, GAIL (India) Ltd. and Shri Rajesh Chaturvedi, Director Commercial,
at the 5th ANGVA Exhibition held in Greater Noida.
A view of IGL Stall at the 5th ANGVA Exhibition at Greater Noida
COST AUDITORS
Your Company had re-appointed M/s. Chandra Wadhwa & Co., New Delhi as
Cost Auditors for the financial year 2013-14.
As per Section 148 read with Companies (Audit & Auditors) Rules, 2014
and other applicable provisions, if any, of the Companies Act, 2013,
the Board of Directors of your Company has appointed M/s. Chandra
Wadhwa & Co., New Delhi, Cost Accountants as the Cost Auditors of the
Company for the financial year 2014-15. The remuneration proposed to be
paid to the Cost Auditors is subject to the ratification by the members
at the ensuing Annual General Meeting of the Company.
CORPORATE GOVERNANCE
As per the requirements of the Clause 49 of the Listing Agreement with
the Stock Exchanges a detailed Report on Corporate Governance and
Auditor''s certificate regarding compliance of conditions of Corporate
Governance are annexed as part of the Annual Report.
CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information in accordance with the provisions of Section 217(1)(e)
of the Companies Act, 1956 read with the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 is annexed
hereto.
ACKNOWLEDGEMENTS
Your Directors express their gratitude to the Ministry of Petroleum &
Natural Gas, State Governments of NCT of Delhi & Uttar Pradesh,
Petroleum and Natural Gas Regulatory Board, and Promoter Companies
(GAIL & BPCL) for their continuous patronage & support throughout the
year.
The Directors also acknowledge the support of all Statutory & Local
Authorities, Bankers, Media, Station Operators & their employees,
contractors, vendors and suppliers.
The Directors place on record their deep appreciation towards IGL''s
valued customers for their continued co-operation & support and look
forward to the continuance of this relationship in future also.
The Directors wish to express their gratitude to all the shareholders
for their continued trust and support.
The Directors also sincerely acknowledge the contributions made by all
the employees of IGL for their dedicated services to the Company.
For and on behalf of Board of Directors
sd/- sd/-
Rajesh Chaturvedi Narendra Kumar
Director (Commercial) Managing Director
Place : New Delhi
Date : August 4, 2014
Mar 31, 2013
TO, THE MEMBERS
The Directors have pleasure in presenting the Fourteenth Annual Report
alongwith Audited Accounts of the Company for the year ended March 31,
2013.
PHYSICAL PERFORMANCE
During the year, the Company recorded sales as under :
Figures in Million Standard Cubic Meters (mmscm)
For the Year % Growth
Product 2012-2013 2011-2012 (YoY)
Compressed Natural Gas 1004.92 937.55 7.2
(CNG)
Piped Natural 332.83 282.45 17.8
Gas (PNG)
Total 1337.75 1220.00 9.7
Average Sales Per day 3.67 3.33
(mmscmd)
financial results
(Rs. in Crores)
For the Year
ITEMS 2012-2013 2011-2012
Net Sales & Other Income 3379.89 2525.34
Profit before Depreciation 714.85 593.30
& Tax
Depreciation 186.66 143.21
Profit before tax 528.19 450.09
Provision for tax 174.06 143.66
Profit after tax 354.13 306.43
Profit brought forward from 940.61 746.17
previous year
Profit available for 1294.74 1052.60
appropriations
Appropriations:
Proposed dividend 77.00 70.00
Corporate dividend tax 13.08 11.35
Transferred to general 35.41 30.64
reserve
Profit carried forward 1169.25 940.61
1294.74 1052.60
FINANCIAL REVIEW
The Company has been showing consistently good financial performance
both in terms of turnover and profitability. During the year, gross
turnover of the Company increased by 33% from Rs. 2790.10 crores in
year 2011-12 to Rs. 3724.06 crores in the year 2012-13. Profit after
tax also went up by 16% from Rs. 306.43 crores in 2011-12 to Rs. 354.13
crores in 2012-13.
DIVIDEND
Your Directors are pleased to recommend higher dividend of 55% (Rs 5.50
per share) as against 50% (Rs. 5 per share) paid in the last year. The
proposed dividend including corporate dividend tax would absorb Rs.
90.08 crores.
PERFORMANCE HIGHLIGHTS COMPRESSED NATURAL GAS BUSINESS
During the year, your Company augmented its CNG distribution
infrastructure by enhancing the capacity of existing stations and
adding new stations. The number of stations went up from 308 in March
2012 to 324 in March 2013, which included 276 stations in Delhi and 48
stations in National Capital Region (NCR). The installed compression
capacity went up from 59.56 Lakhs Kg/day in March 2012 to 63.82 Lakhs
Kg/day in March 2013.
New concept of CNG Station was introduced where all equipments are
installed at roof top of canopy due to which more dispensing area is
available at forecourt level. One such CNG Station is now in operation
at Nanglamachi, Ring Road, New Delhi.
Another first, a CNG integrated compressor package unit, where all
compression, dispensing & storage is within an enclosure, has been
introduced. This unit requires a very small area and can take CNG
refueling to customer premises such as societies, malls, offices,
schools, other institutions etc. When used at aforesaid premises, this
can help in decongesting the existing CNG stations.
As CNG facilities at OMCs Retail outlets contribute almost 22% of CNG
retail business, your Company has entered into agreements for setting
up of CNG facilities with all three Public Sector Oil Marketing
Companies upto March 2015.
As route buses have gone off the road in FY 2012-2013, your Company has
filled the vacuum created by exiting of route buses by executing an
agreement with Delhi Integrated Multi Modal Transit System (DIMMTS) for
setting up of CNG facilities for Cluster Buses at their depots for a
period of ten years i.e. up to the year 2022.
The estimated number of vehicles running on CNG in Delhi and NCR as on
March 31, 2013 was over 6,48,000 including 4,20,000 private vehicles.
PIPED NATURAL GAS BUSINESS
PNG - Domestic Connections
A major thrust has been given to the expansion of Piped Natural Gas
(PNG) network in Delhi and NCR i.e. Gautam Budh Nagar (Noida, Greater
Noida) and Ghaziabad.
Your Company has increased its steel pipeline network from 575 kms in
FY 2011-12 to 631 kms in FY 2012-13 and MDPE network from 6479 kms in
FY 2011-12 to 7783 kms in FY 2012-13.
For PNG domestic connections, Delhi has been divided into 70 areas
(each area is equivalent to MLA constituency). The pipeline network is
already extended to 63 areas and work is in progress to extend the
network to the remaining areas.
During the year, your Company provided 32,322 PNG connections in Delhi
& 21,530 PNG connections in NCR and the total number of connections
went up from 3,32,844 in March 2012 to 3,86,696 in March 2013. A total
of 53,852 domestic PNG connections were added in Financial Year
2012-13.
Your Company rolled out a major initiative to upgrade customer services
by infusion of technology. You may be aware that in May 2011 customer
portal was launched through which domestic PNG customers could register
their complaints/service requests online and check the status of the
same. The business process of customer acquisition was also integrated
into customer portal from August, 2012 onwards. With this development
prospective customers are now able to register their PNG connection
requests online. The progress of their requests can be viewed online.
On completion of process of confirmation of technical feasibility of
PNG connection and after customer has made payment for PNG connection,
customer can also track progress on customer portal. Further
information pertaining to colony- wise & city-wise schedule of
registrations is made available on the customer portal prospectively.
Now all the customer requests for PNG connections received at 24 Hour
Customer Care or from field marketing teams are also routed through
portal and action taken on such requests is updated on the portal. With
these developments the business process of domestic PNG customer
acquisition has been made more convenient for the customers. Your
Company received overwhelming response to this initiative from
prospective customers as a large number of them registered their
requests online from August 2012 onwards.
PNG - Commercial & Industrial
Your Company has maintained its focus on the Industrial and Commercial
segment as one of the potential growth areas in the forthcoming years.
With its concentrated efforts in the year 2012-13, the total number of
commercial customers increased from 639 in March 2012 to 964 in March
2013 and industrial customers from 223 in March 2012 to 418 in March
2013.
Your Company has expanded its pipeline network to some of the major
industrial areas of Delhi and NCR i.e. Gautam Budh Nagar (Noida,
Greater Noida) and Ghaziabad. Pipeline laying activities are underway
in the remaining major industrial areas in NCR which have huge demand
potential.
EQUITY PARTICIPATION IN CENTRAL U.P. GAS LTD. (CUGL)
As a first step for stepping outside the geographical boundaries of the
NCR territory, your Company has recently acquired 50% of the paid-up
equity share capital (3,00,00,000 equity shares of Rs. 10 each) of CUGL
at a price of Rs. 23 per equity share aggregating to Rs. 69 crores from
certain financial investor shareholders of CUGL. CUGL is engaged in
City Gas Distribution in the cities of Kanpur and Bareilly in Uttar
Pradesh.
REGULATORY DEVELOPMENTS
Petroleum and Natural Gas Regulatory Board (PNGRB) vide its order no.
TO/03/2012 dated April 9, 2012 determined the per unit network tariff
and compression charge for the CGD Network of the Company for Delhi,
based on submission of data by the Company in May 2009 and certain
assumptions taken by PNGRB in this regard. The tariffs determined by
PNGRB were much lower than the rates submitted by the Company.
Further, PNGRB made the determined tariffs applicable with
retrospective effect from April 1, 2008. In its order PNGRB stated that
the modalities and time frame for refund of differential Network Tariff
and Compression Charge shall be decided subsequently.
Your Company filed a writ petition on April 10, 2012 against the order
of PNGRB dated April 9, 2012 before the Hon''ble Delhi High Court. The
Hon''ble High Court of Delhi has passed the judgement in this case on
June 1, 2012 and has quashed the PNGRB order dated April 9, 2012. PNGRB
has filed a special leave petition before the Hon''ble Supreme Court of
India against the order dated June 1, 2012 of Hon''ble Delhi High Court.
Matter is still pending in the Hon''ble Supreme Court of India.
FUTURE OUTLOOK
Your Company has drawn out plans to further consolidate its presence in
Delhi and NCR by investing over Rs. 400 Crores during the financial
year 2013-14.
In CNG segment, the fleet of Private Bus Cluster is expected to reach
around 1000 buses by the end of 2013-14. The price differential of CNG
versus alternate liquid fuel will continue to drive the conversion of
petrol driven private vehicles into CNG mode. Introduction of more CNG
variant models by car manufacturers will add to CNG sales.
Your Company has aggressive plans to expand its pipeline infrastructure
to increase the coverage and penetration of the network. Company has
taken proactive steps to increase its presence in domestic PNG segment
with growth and development of newer parts of Gautam Budh Nagar.
Dialogue with builders & developers are going on with an objective to
provide PNG facility in upcoming residential projects before new
residential units are occupied. This approach will enable your Company
to utilize assets better. It shall be the continuous endeavour to
expand fast the customer base on both industrial & commercial and
domestic fronts.
The pipeline expansion plans have been aligned with development of
industrial belts in coming years in NCT of Delhi & NCR cities of Noida,
Greater Noida and Ghaziabad. Your Company has expanded its pipeline
network to some of the new industrial clusters planned under
redevelopment guidelines in NCT of Delhi and work is underway to expand
the network in the remaining areas which will witness substantial
improvement in their infrastructure & facilities. Endeavours will be
made to realize full market potential by tapping gas volumes from
industries, predominantly Small Scale Industries, which will come up
during the redevelopment phase in notified clusters of NCT of Delhi.
Your Company also has plans to provide PNG supplies to upcoming
industrial belts along Delhi Mumbai Railway Freight Corridor in Dadri
Noida Ghaziabad Investment Zone and part of Ludhiana Kolkata freight
corridor which will pass through Ghaziabad District.
Your Company alongwith Delhi Jal Board (DJB) had signed an MOU to set
up a Pilot Project for production of Compressed Natural Gas (CNG) out
of Sewage Treatment Plant (STP) situated at Keshopur, Delhi. Detailed
Feasibility Report (DFR) to assess techno-commercial feasibility of the
project has been prepared and the same is now under third party
evaluation.
INFORMATION TECHNOLOGY
Your Company has extended the customer services to commercial &
industrial segment through customer portal with enhanced features.
The Company has completed technical upgradation of SAP to ERP-6.0 on
new and upgraded hardware. This will provide latest technology platform
for existing processes and functionalities in SAP.
The Company has set up a Disaster Recovery site hosted at remote
location to enable continuity of IT operations by securing applications
and database in case of any disaster. The Company has also initiated
SAP functional upgrade which is the follow-on project to SAP technical
upgradation performed recently. This will provide new and improved
processes and functionalities.
As part of GIS (Geographical Information System) Project initiative,
most of the PNG network for north and west zone of Delhi has been
captured and is being used for network reference.
HUMAN RESOURCES
During the year, your Company enjoyed harmonious and cordial human
relations amongst all its employees. Your Company took various HR
initiatives such as revision in salary and formulation of various
welfare schemes for the employees. There has been emphasis on employees
training to enhance their competencies aimed at better organizational
performance.
There was no employee in the Company drawing remuneration more than
limits prescribed under Section 217 (2A) of the Companies Act, 1956
read with the Companies (Particulars of Employees) Rules, 1975.
HEALTH SAFETY AND ENVIRONMENT (HSE)
Your Company has always accorded top most priority to fire and safety
related issues. To maintain a good safety culture throughout the
Company, continuous efforts have been made.
Regular training is being imparted to the employees, contract staff at
CNG Stations, DTC Drivers and consumers of CNG and PNG. To create
safety awareness and impart training to all category of consumers, a
dedicated group of trainers with fully equipped training van is
deployed which conducts safety clinics along with practical
demonstration.
In line with Company''s HSE policy, regular Safety Audits and other
statutory compliances are done to ensure safety in all facets of
Company''s operations.
A safety drive to educate the consumers through print and electronic
media is already taken up at major scale to educate the users of CNG
vehicles to get their CNG Cylinders validated.
For safety of CNG vehicles, free safety camps are periodically
organized where inspection of CNG kits is undertaken. Safety
inspection of CNG vehicles is also done periodically on random basis to
check compliances of safety standards and to prevent unsafe condition
arising out of gas leakage from the CNG kits.
To further enhance the safety at CNG Stations, all the sites are
equipped with CCTV cameras and Water & Foam based advanced fire
protection systems are being installed at the stations to deal any fire
emergency in its initial stage.
Emergency Control Centres (ECC) are established at strategic locations
across Delhi & NCR and manned round the clock to respond fast to any
gas leak or emergency situation. Two Emergency Response Vehicles (ERVs)
are stationed at two distantly located Emergency Control Centres across
Delhi.
SOCIAL RESPONSIBILITY
Your Company has formulated a Corporate Social Responsibility (CSR)
policy under which 1% of Profit After Tax (PAT) each year is earmarked
for social causes. Thrust areas for CSR programme have been identified
as Health & Environment, Education, and Care & Empowerment of
underprivileged. The Company is supporting meritorious students from
under-privileged strata of society for IIT coaching through a scheme
run by an NGO. It is a matter of satisfaction that all the 10 children
who were sponsored by the Company qualified in the IIT JEE examination
2012. During 2012-13 also, your Company has sponsored 10 students for
specialized coaching for IIT entrance. The Company also organised
eyesight screening camps at its CNG stations for the auto drivers
during 2012-13 with the objective of minimizing the risk of road
accidents as well as to create awareness about basics of eye care.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the provisions of Section 217(2AA) of the Companies Act,
1956, your Directors hereby confirm that:
i) in the preparation of Annual Accounts for the financial year ended
March 31, 2013, the applicable accounting standards have been followed;
ii) they have selected such accounting policies and applied them
consistently except where otherwise stated in the Notes to Accounts and
made judgments and estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company at the
end of the financial year and of the profit of the Company for the year
under review;
iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; and
iv) they have prepared the Annual Accounts for the financial year ended
March 31, 2013 on a going concern basis.
BOARD OF DIRECTORS
Shri K. K. Gupta, nominee of BPCL, was appointed as Chairman of the
Board in place of Shri S. Venkatraman w.e.f. January 14, 2013.
Shri Narendra Kumar, nominee of GAIL, was appointed as Managing
Director in place of Shri M. Ravindran w.e.f. April 18, 2013.
Shri Rajesh Chaturvedi, nominee of BPCL, was appointed as Director
(Commercial) in place of Shri Manmohan Singh w.e.f. December 1, 2012.
Shri Rajendra Kumar, nominee of Government of NCT of Delhi, was
appointed as Additional Director of the Company in place of Shri R.
Chandra Mohan w.e.f. December 1, 2012.
Shri Santosh Kumar Bajpai was appointed as Additional Director of the
Company w.e.f. December 27, 2012.
Shri Rajeev Kumar Mathur, nominee of GAIL, was appointed as Additional
Director of the Company in place of Shri S. Venkatraman w.e.f. January
14, 2013.
Shri Puneet Kumar Goel, nominee of Government of NCT of Delhi, was
appointed as Additional Director of the Company in place of Shri
Rajendra Kumar w.e.f. March 25, 2013.
Prof. V. Ranganathan, retires by rotation at the ensuring Annual
General Meeting and being eligible, offers himself for re-appointment.
The Board takes this opportunity to place on record its appreciation
for valuable contribution made by Shri S. Venkatraman, Shri M.
Ravindran, Shri Manmohan Singh, Shri R. Chandra Mohan and Shri Rajendra
Kumar, during their tenure as Board Members.
STATUTORY AUDITORS
M/s. Deloitte Haskins & Sells, Chartered Accountants, Auditors of the
Company retire at the ensuing Annual General Meeting and being
eligible, offers themselves for reappointment.
COST AUDITORS
Your Company has re-appointed M/s. Chandra Wadhwa & Co., New Delhi as
Cost Auditors for the financial year 2012-13.
CORPORATE GOVERNANCE
As per the requirements of the Clause 49 of the Listing Agreement with
the Stock Exchanges a detailed Report on Corporate Governance and
Auditor''s certificate regarding compliance of conditions of Corporate
Governance are annexed as part of the Annual Report.
CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information in accordance with the provisions of Section 217(1)(e)
of the Companies Act, 1956 read with the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 is annexed
hereto.
CORPORATE AWARDS
Declared as winner in the category of Infrastructure Development at
India Pride Awards 2012-13.
ACKNOWLEDGEMENTS
Your Directors express their gratitude to the Ministry of Petroleum &
Natural Gas, State Governments of NCT of Delhi & Uttar Pradesh,
Petroleum and Natural Gas Regulatory Board, and Promoter Companies
(GAIL & BPCL) for their continuous support throughout the year.
The Directors also acknowledge the support of all Statutory & Local
Authorities, Bankers, Media, Station Operators & their employees,
contractors, vendors and suppliers.
The Directors place on record their deep appreciation towards IGL''s
valued customers for their continued co-operation & support and look
forward to the continuance of this relationship in future also.
The Directors wish to express their gratitude to all the shareholders
for their continued trust and support.
The Directors also sincerely acknowledge the contributions made by all
the employees of IGL for their dedicated services to the Company.
For and on behalf of Board of Directors
sd/- sd/-
Rajesh Chaturvedi Narendra Kumar
Director (Commercial) Managing Director
Place : New Delhi
Date : July 8, 2013
Mar 31, 2012
The Directors have pleasure in presenting the Thirteenth Annual Report
alongwith Audited Accounts of the Company for the year ended March 31,
2012.
PHYSICAL PERFORMANCE
During the year, the Company recorded sales as under :
Figures in Million Standard Cubic Meters (mmscm)
Product For the Year %
2011-12 2010-11 Growth
(YoY)
Compressed
Natural Gas (CNG) 937.55 817.76 14.6
Piped Natural Gas 282.45 179.89 57.0
(PNG)
Total 1220.00 997.65 22.3
Average Sales
Per day (mmscmd) 3.33 2.73
FINANCIAL RESULTS
(Rs. in Crores)
ITEMS For the Year
2011-2012 2010-2011
Net Sales & Other Income 2525.34 1753.55
Profit before
Depreciation & Tax 593.30 488.58
Depreciation 143.21 102.87
Profit before tax 450.09 385.71
Provision for tax 143.66 125.94
Profit after tax 306.43 259.77
Profit brought forward from
previous year 746.17 593.73
Profit available
for appropriations 1052.60 853.50
Appropriations:
Proposed dividend 70.00 70.00
Corporate dividend tax 11.35 11.35
Transferred to general
reserve 30.64 25.98
Profit carried forward 940.61 746.17
1052.60 853.50
FINANCIAL REVIEW
The Company has been showing consistently good financial performance
both in terms of turnover and profitability. During the year, gross
turnover of the Company increased by 43% from Rs. 1951.50 crores in
year 2010-11 to Rs. 2790.10 crores in the year 2011-12. Profit after
tax also went up by 18% from Rs. 259.77 crores in 2010-11 to Rs. 306.43
crores in 2011-12.
DIVIDEND
Your Directors are pleased to recommend dividend of 50% (Rs. 5 per
share) as paid in the last year. The proposed dividend including
corporate dividend tax would absorb Rs. 81.35 crores.
PERFORMANCE HIGHLIGHTS
COMPRESSED NATURAL GAS BUSINESS
During the year, your Company augmented its CNG distribution
infrastructure by enhancing the capacity of existing stations and
adding new stations. The number of stations went up from 278 in March
2011 to 308 in March 2012, which included 258 stations in Delhi and 50
stations in National Capital Region (NCR). By capacity enhancement as
well as new stations, the installed compression capacity went up by
16.5% from 51.13 Lakhs Kg/day in March 2011 to 59.56 Lakhs Kg/day in
March 2012.
New concept of cluster buses took off in NCT of Delhi and 238 cluster
buses were operational in March 2012.
The estimated number of vehicles running on CNG in Delhi and NCR as on
31st March 2012 was over 5,50,000 including 17,000 buses and around
3,20,000 private vehicles.
PIPED NATURAL GAS BUSINESS
PNG - Domestic Connections
A major thrust has been given to the expansion of Piped Natural Gas
(PNG) network in Delhi and NCR i.e. Gautam Budh Nagar (Noida, Greater
Noida) and Ghaziabad.
Your Company has increased its steel pipeline network from 420 kms in
FY 2010-11 to 575 kms by laying additional 155 kms of Steel pipeline
during the FY 2011-12.
For PNG domestic connections, Delhi has been divided into 70 areas
(each area is equivalent to MLA constituency). The pipeline network is
already extended to 56 areas and work is in progress to extend the
network to the remaining areas. During the year, your Company has
extended the PNG network in various localities in Delhi, namely:
- North Delhi à Rohini (Sectors 15-18, 20-25), B D Estate, Civil Lines,
Kamla Nagar, Roop Nagar, Shastri Nagar, Kalyan Nagar, Gulabi Bagh,
Nimri Colony, Timarpur, Mukherjee Nagar.
- South Delhi à Vasant Kunj (remaining areas), East of Kailash, Vikram
Vihar National Park, Sheikh Sarai Ph-I, Green Park Extension, Saket
(remaining areas), Qutub Institutional Area, Shivalik, Geetanjali
Enclave, Navjeevan Vihar.
- West Delhi à Dwarka (remaining areas), Nangloi, Bakarwala, Loknayak
Puram, Janakpuri (remaining areas), Vaishali (Dabri), Hari Nagar
(remaining areas).
- East Delhi à East Guru Angad Nagar, Mayur Vihar Phase- III (C1&2,
B1-B8, D1&2), Vivek Vihar ÃITI Quarters, BSNL Quarters.
- Central Delhi à Karol Bagh, Rajouri Garden, B-Block, Rajinder
Nagar(old &new), NDMC areas (remaining areas), Minto Road, Defence
Colony, Siddhartha Enclave.
In Noida, your Company during the year has extended the PNG supply to
Sectors- 11, 15-A, 17, 19, 20, 23, 26, 27, 30, 31, 36, 40, 41, 49,
55-60, 62, 63, 65, 67, 82 and 110.
In Greater Noida, your Company during the year has extended the PNG
supply to Sectors Omega-I, Zeta-I, II and Delta-I, II,III Chai,
Alpha-II, Sigma-I, II, III, Gamma-II.
In Ghaziabad, the PNG supply has been extended to Raj Nagar, Sanjay
Nagar, Kavi Nagar, Patel Nagar, Shastri Nagar, Nehru Nagar, Surya
Nagar, Chander Nagar, Ramprastha, Brij Vihar, Chiranjivi Vihar,
Avantika, Shalimar Garden, Rajender Nagar and Nandgram.
During the year, your Company provided 53,689 PNG connections in Delhi
& 34,231 PNG connections in NCR and the total number of connections
went up from 2,44,924 in March 2011 to 3,32,844 in March 2012. Addition
of 87920 domestic PNG connections is the highest addition in a
Financial Year in the history of the Company.
Your Company has increased its MDPE network from 4419 kms in FY 2010-11
to 6479 kms in FY 2011-12 by adding 2060 km MDPE pipelines.
PNG Ã Commercial & Industrial
During the year, the Company gave a major thrust to boost the sales
volume of Commercial and Industrial customers. In Delhi and NCR, the
total number of commercial customers increased from 463 in March 2011
to 639 in March 2012 and industrial customers from 68 in March 2011 to
223 in March 2012. During the year 2011-12, the sales volume from
industrial & commercial customers grew by 71% over the previous year.
In Delhi, the Company has expanded its pipeline network to industrial
areas like Wazirpur, Jahangirpuri, Narela, Okhla, Nangloi, Mangolpuri,
Naraina, Kirti Nagar, Bawana, Mundka etc.
In Noida, your Company has expanded its pipeline network to industrial
areas of Sector 57, 58, 59, 63, 65 and 67. In Greater Noida, your
Company has expanded its pipeline network to Industrial areas of
Sectors of Omega, Chai, KP-V, Industrial Area-B & C. In Ghaziabad, your
Company has expanded its pipeline network to industrial area of Kavi
Nagar Industrial Area, Goldhar Industrial Area, Meerut Road Industrial
Area, Loni Road Industrial Area, Anand Industrial Area, Sahibabad
Industrial Area (Site-IV). Pipeline laying activities are underway in
the remaining major industrial areas in NCR which have huge demand
potential.
REGULATORY DEVELOPMENTS
Petroleum and Natural Gas Regulatory Board (PNGRB) vide its order no.
TO/03/2012 dated 9th April 2012 determined the per unit network tariff
and compression charge for the CGD Network of IGL for Delhi, based on
submission of data by the Company in May 2009 and certain assumptions
taken by PNGRB in this regard. The tariffs determined by PNGRB were
much lower than the rates submitted by the Company.
Further, PNGRB made the determined tariffs applicable with
retrospective effect from 01st April 2008. In its order PNGRB stated
that the modalities and time frame for refund of differential Network
Tariff and Compression Charge shall be decided subsequently.
IGL filed a writ petition on 10th April 2012 against the order of PNGRB
challenging the vires of Network Tariff
Regulations and order dated 9th April 2012 before the Hon'ble Delhi
High Court.
The Hon'ble Delhi High Court in its judgement delivered on 1st June
2012 has held that PNGRB is not empowered to fix or regulate maximum
retail price at which gas is to be sold by IGL to its consumers. The
judgement has also held that the Board is not empowered to fix any
component of Network Tariff and Compression Charge for any entity like
IGL having its own distribution network. The Hon'ble Court has quashed
PNGRB Order dated 9th April 2012.
FUTURE OUTLOOK
Your Company has drawn out plans to further consolidate its presence in
Delhi and NCR by investing over Rs. 500 crores during the financial
year 2012-13.
In CNG, the new concept of Private Bus Cluster introduced by Government
of Delhi is expected to reach 1,000 buses by the end of 2012-13.
Decision of Delhi Government to introduce 45,000 new auto rickshaws
will add to volume in sales. The growth in private car owners segment
is expected to maintain the trend of previous years.
Your Company has aggressive plans to expand its pipeline infrastructure
to increase the coverage and penetration of the network. It shall be
the continuous endeavour to expand fast the customer base on both
industrial & commercial and domestic fronts.
The pipeline expansion plans have been aligned with development of
industrial belts in coming years in NCT of Delhi & NCR cities of Noida,
Greater Noida and Ghaziabad. Your Company has made plans to expand
pipeline network to take advantage of the recent notification of
regulations and guidelines for redevelopment of industrial clusters in
NCT of Delhi which will witness substantial improvement in their
infrastructure & facilities. Endeavours will be made to realize full
market potential by tapping gas volumes from industries, predominantly
Small Scale Industries, which will come up during the redevelopment
phase in notified clusters of NCT of Delhi.
Your Company also has plans to provide PNG supplies to upcoming
industrial belts along Delhi Mumbai Railway Freight Corridor in Dadri
Noida Ghaziabad Investment Zone and part of Ludhiana Kolkata freight
corridor which will pass through Ghaziabad District.
Your Company alongwith Delhi Jal Board (DJB) and a group Company of
Bharat Forge, M/s KG Renewables Limited has signed an MOU to set up a
Pilot Project for production of Compressed Natural Gas (CNG) out of
Sewage Treatment Plant (STP) situated at Keshopur, Delhi. The project
includes converting Sewage Gas generated from STP's to usable Energy
which can be utilized for fueling CNG vehicles. Detailed Feasibility
Report (DFR) is under preparation to evaluate the techno-commercial
feasibility of the project.
INFORMATION TECHNOLOGY
Your Company has taken initiatives for Disaster Recovery and Business
Continuity planning. This Project is in advance phase and scheduled to
be completed during the financial year 2012-13. This will help your
Company to continue its business during and after any disaster.
Your Company has implemented customer portal which includes CRM
(Customer Relationship Management) functionalities last year. This
portal extends facilities such as online PNG bill viewing & payment,
complaint logging etc. as self service to customers. This system also
provides common platform for IGL employees, customers and third parties
to work collaboratively and achieve greater customer satisfaction. Your
Company is continuously making efforts to improve and reap more
benefits from this system.
Apart from this, your Company has also taken initiative for technology
enhancement at primary data centre alongwith up-gradation of SAP (ERP
System). An initiative has also been taken for advanced surveillance of
CNG stations.
GIS (Geographical Information System) Project which has been taken up
for effective Asset Management, Network Planning and Operations
Management is in advance phase and is scheduled to be completed during
the financial year 2012-13.
HUMAN RESOURCES
During the year, your Company enjoyed harmonious and cordial human
relations among all its employees. Your Company inducted employees at
entry level from various premier technical institutes / colleges to
infuse new talent in the workforce of the Company. There has been a
continuous emphasis on building capabilities & learning of all
employees aimed at better organizational performance.
There was no employee in the Company drawing remuneration more than the
limits prescribed under Section 217 (2A) of the Companies Act, 1956
read with the Companies (Particulars of Employees) Rules, 1975.
HEALTH SAFETY AND ENVIRONMENT (HSE)
Your Company has always accorded top most priority to Fire and Safety
related issues. To maintain a good safety culture throughout the
Company, continuous efforts have been made.
Regular training is being imparted to the employees, contract staff at
CNG Stations, DTC Drivers and consumers of CNG and PNG. To create
safety awareness and impart training to all category of consumers, a
dedicated group of trainers with fully equipped training van is
deployed which conducts safety clinics alongwith practical
demonstration.
For Safety of CNG vehicles, free safety camps are periodically
organized where inspection of CNG kits is undertaken. Safety inspection
of CNG vehicles is also done periodically on random basis to check
compliances of safety standards and to prevent unsafe conditions
arising out of gas leakage from the CNG kits.
To add a cutting edge to the safety at CNG Stations, dry chemical
powder based fire protection systems for roof mounted cascades have
been successfully installed at various CNG Stations.
In line with Company's HSE policy, Safety Audit, HAZOP & Risk
Assessment of CNG Stations and PNG installations are carried out by
third parties. The onsite emergency action plan is regularly rehearsed
and updated. Emergency Control Centres have already been established at
strategic locations. Emergency response vehicles are under
procurement, which shall be stationed at emergency control centres,
manned round the clock to respond fast to any gas leak or emergency
situation.
SOCIAL RESPONSIBILITY
Your Company has formulated a CSR policy under which 1% of Profit After
Tax (PAT) each year is earmarked for social causes. Thrust areas for
CSR programme have been identified as Health & Environment, Education,
and Care & Empowerment of underprivileged. The Company is supporting
meritorious students form underprivileged strata of society for IIT
coaching through a scheme run by an NGO. It is a matter of satisfaction
that all the 10 children who were sponsored by the Company qualified in
the IIT JEE examination 2012. The Company has also extended help to DTC
by providing equipment and facilities aimed at inculcating safe driving
habits among the drivers.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the provisions of Section 217(2AA) of the Companies Act,
1956, your Directors hereby confirm that:
i) in the preparation of Annual Accounts for the financial year ended
March 31, 2012, the applicable accounting standards have been followed;
ii) they have selected such accounting policies and applied them
consistently except where otherwise stated in the Notes to Accounts and
made judgments and estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company at the
end of the financial year and of the profit of the Company for the year
under review;
iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; and
iv) they have prepared the Annual Accounts for the Financial Year ended
31st March, 2012 on a going concern basis.
BOARD OF DIRECTORS
Shri S. Venkatraman, nominee of GAIL was appointed as Chairman of the
Board in place of Shri B. C. Tripathi w.e.f. October 21, 2011.
Shri M. Ravindran, nominee of GAIL (India) Ltd. was appointed as
Managing Director in place of Shri Rajesh Vedvyas w.e.f. October 27,
2011.
Shri R. Chandra Mohan, nominee of Government of NCT of Delhi was
appointed as Additional Director in place of Shri R. K. Verma w.e.f.
October 31, 2011.
Shri Manmohan Singh, nominee of BPCL was re-appointed as Director
(Commercial) for a period of one year from December 1, 2011 to November
30, 2012.
Shri S. S. Rao, retires by rotation at the ensuring Annual General
Meeting and being eligible, offers himself for re-appointment.
The Board takes this opportunity to place on record its appreciation
for valuable contribution made by Shri B.C. Tripathi, Shri Rajesh
Vedvyas and Shri R.K. Verma, during their tenure as Board Members.
STATUTORY AUDITORS
M/s. Deloitte Haskins & Sells, Chartered Accountants, Auditors of the
Company retire at the ensuing Annual General Meeting and being
eligible, offers themselves for reappointment.
COST AUDITORS
Pursuant to the directions of the Central Government for audit of cost
accounts, your Company appointed M/s. Chandra Wadhwa & Co as Cost
Auditors for the financial year 2011-12.
CORPORATE GOVERNANCE
As per the requirements of the Clause 49 of the Listing Agreement with
the Stock Exchanges a detailed Report on Corporate Governance is
annexed as part of the Annual Report.
CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information in accordance with the provisions of Section 217(1)(e)
of the Companies Act, 1956 read with the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 is annexed
hereto.
CORPORATE AWARDS
- The Company was finalist in the category of "Industry Leadership" at
Platts Global Energy Awards 2011
- Received "Special Jury Award for Contribution to the Society" in
India Pride Awards 2011
- Declared as the winner in the category of Urban Infrastructure at the
Infrastructure Excellence Awards 2012.
ACKNOWLEDGEMENTS
Your Directors express their gratitude to the Ministry of Petroleum &
Natural Gas, State Governments of NCT of Delhi & Uttar Pradesh,
Petroleum and Natural Gas Regulatory Board, and Promoter Companies
(GAIL & BPCL) for their continuous support throughout the year.
The Directors also acknowledge the support of all Statutory & Local
Authorities, Bankers, Media, Station Operators & their employees,
contractors, vendors and suppliers.
The Directors place on record their deep appreciation towards IGL's
valued customers for their continued co- operation & support and look
forward to the continuance of this relationship in future also.
Shri Rajesh Vedvyas, then Managing Director receiving 'Award of
Excellence' on behalf of IGL for being a finalist in the category of
'Industry Leadership' in Platts Global Energy Awards 2011.
The Directors wish to express their gratitude to all the shareholders
for their continued trust and support.
The Directors also sincerely acknowledge the contributions made by all
the employees of IGL for their dedicated services to the Company.
For and on behalf of Board of Directors
sd/- sd/-
Manmohan Singh M. Ravindran
Director (Commercial) Managing Director
Place: New Delhi
Date : June 21, 2012
Mar 31, 2011
The Directors have pleasure in presenting the Twelfth Annual Report
alongwith Audited Accounts of the Company for the year ended March 31,
2011.
PHYSICAL PERFORMANCE
During the year, the Company recorded sales as under
Figures in Million Standard Cubic Meters (mmscm)
Product For the Year %
2010-2011 2009-2010 Growth
(YoY)
Compressed 817.76 695.13 17.6
Natural Gas (CNG)
Piped Natural Gas 179.89 87.31 106.0
(PNG)
Total 997.65 782.44 27.5
Average Sales 2.73 2.14 27.5
Per day (mmscmd)
FINANCIAL RESULTS (Rs. in Crores)
For the year
ITEMS 2010-2011 2009-2010
Net Sales & Other Income 1753.55 1099.22
Profit before Depreciation & Tax 488.58 401.89
Depreciation 102.87 77.45
Profit before tax 385.71 324.44
Provision for tax 125.94 108.94
Profit after tax 259.77 215.50
Profit brought forward from 593.73 473.25
previous year
Profit available 853.50 688.75
for appropriations
Appropriations:
Proposed dividend 70.00 63.00
Corporate dividend tax 11.35 10.46
Transferred to general reserve 25.98 21.55
Profit carried forward 746.17 593.74
853.50 688.75
FINANCIAL REVIEW
The Company has been showing consistently good financial performance
both in terms of turnover and profitability. During the year, gross
turnover of the Company increased by 60.86% from Rs. 1213.13 crores in
year 2009-10 to Rs. 1951.50 crores in the year 2010-11. Profit after
tax also went up by 20.54% from Rs. 215.50 crores in 2009-10 to Rs.
259.77 crores in 2010-11.
DIVIDEND
Your Directors are pleased to recommend higher dividend of 50% (Rs 5
per share) as against 45% (Rs 4.50 per share) in the last year. The
proposed dividend including corporate dividend tax would absorb Rs.
81.35 crores.
PERFORMANCE HIGHLIGHTS
CNG BUSINESS
During the year, your Company augmented its CNG distribution
infrastructure significantly by enhancing the capacity of existing
stations and adding new stations. The number of stations went up from
241 in March 2010 to 278 in March 2011, which included 240 stations in
Delhi and 38 stations in National
Capital Region (NCR). By capacity enhancement as well as new stations,
the installed compression capacity went up substantially by 40.5% from
36.40 Lakh Kg/day in March 2010 to 51.13 Lakh Kg/day in March 2011.
During the year 2010Ã11, the Company for the first time started online
CNG supply to vehicles in Ghaziabad.
The estimated number of vehicles running on CNG in Delhi and NCR as on
31st March 2011 was over 4,30,000 including 16,500 buses and 2,70,000
private vehicles.
PIPED NATURAL GAS BUSINESS PNG - Domestic Connections
A major thrust has been given to the expansion of Piped Natural Gas
(PNG) network in Delhi and NCR i.e. Gautambudh Nagar (Noida, Greater
Noida) and Ghaziabad.
For PNG domestic connections, Delhi has been divided into 70 areas
(each area is equivalent to MLA constituency). The pipeline network is
already extended to 55 areas and work is in progress to extend the
network to the remaining areas. During the year, your Company has
extended the PNG network in various localities in Delhi, namely:
- North Delhi à Rohini (sectors 1 to 8), Ashok Vihar, Tagore Park,
Outram Lines, Hudson Lane, Keshav Puram.
- South Delhi à Anand Niketan, Shanti Niketan, West End, IIT, NCERT,
Kaushalya Park, Hauz Khas, Ayurvigyan Nagar.
- West Delhi à Paschim Vihar (remaining areas), Vikas Puri, Hari Nagar,
Arihant Nagar, Madipur, Tagore Garden, Rajouri Garden, Punjabi Bagh
West and Extn. (remaining areas), Janak Puri (remaining areas).
- East Delhi à Preet Vihar, Nirman Vihar, Vikas Marg Societies, Chitra
Vihar, GTB Janta Flats, Jafrabad, Gagan Vihar, Madhuban Enclave, Nirman
Vihar, Ramnagar, Mansarovar DDA Flats, Swasthya Vihar.
- Central Delhi à Patel Nagar, Ramesh Nagar, Bali Nagar, Kirti Nagar,
Mansarovar Garden, Saraswati Garden, Punjabi Bagh (East).
In Noida, your Company during the year has extended the PNG supply to
Sectors 33 Ã 35, 39 Ã 41, 50 Ã 53, 55 and 56.
In Greater Noida, your Company during the year has extended the PNG
supply to Sectors Beta I & II and Pie.
In Ghaziabad, the PNG supply has been extended to Indirapuram,
Vaishali, Vasundhara, Surya Nagar, Chander Nagar, Rampuri, Shalimar
Garden, Rajender Nagar and Lajpat Nagar.
During the year, your Company provided total 62,918 new domestic PNG
connections in Delhi and NCR and the total number of connections went
up from 1,82,006 in March 2010 to 2,44,924 in March 2011. In Delhi,
your Company provided 45,289 PNG connections as against the target of
35,000 connections set by the Petroleum & Natural Gas Regulatory Board
(PNGRB).
PNG Ã Commercial & Industrial
During the year, the Company gave a major thrust to boost the sales
volume of Commercial and Industrial customers. In Delhi and NCR, the
total number of commercial customers increased from 355 in March 2010
to 463 in March 2011 and industrial customers from 14 in March 2010 to
68 in March 2011. During the year 2010-11, the sales volume from
industrial & commercial customers grew by 136% over the previous year.
In Delhi, the Company has expanded its network to industrial areas of
Mayapuri, Lawrence Road, Nangla Macchi, Badli etc, while MDPE laying
activities are in progress in other industrial areas like Wazirpur,
Jahangirpuri, Narela, Okhla, Nangloi, Mangolpuri, Naraina, Kirtinagar,
Bawana, Mundka etc.
In Noida, your Company has expanded its pipeline network to industrial
areas of sector 60, 63 and 65. In Greater Noida, your Company has
expanded its pipeline network to Industrial areas of Kasna Site IV & V,
Udyog Vihar, Udyog Kendra & Surajpur Site B & C. In Ghaziabad, your
Company has expanded its pipeline network to industrial area of
Sahibabad. Pipeline laying activities are underway in the remaining
major industrial areas in NCR which have huge demand potential.
FUTURE OUTLOOK
Your Company has drawn out plans to further consolidate its presence in
Delhi and NCR by investing over Rs. 500 crores during the financial
year 2011-12.
In CNG, the new concept of Private Bus Cluster introduced by Government
of Delhi is expected to add to good volume in sales. A significant
growth is also expected from the private car owners in line with
current trend of CNG conversion and launch of CNG variants by vehicle
manufactures, in view of the economy offered by CNG in comparison to
other fuels.
Your Company has aggressive plans to expand its pipeline infrastructure
to increase the coverage and penetration of the network. It shall be
the continuous endeavour to expand fast the customer base on both
Industrial & Commercial and domestic fronts.
TOWARDS CUSTOMER DELIGHT
In view of the changing dynamics in the business environment, your
Company has been proactive in taking various initiatives towards
customer delight. Your Company is the first city gas
distribution Company to have launched an interactive customer portal to
address customer needs and ensure speedy complaint redressal alongwith
a 24x7 single number dialing customer care facility. The Company has
taken a number of initiatives to promote wider use of natural gas such
as through gas geysers, gas gensets etc. In this regard, the Company
has tied up with leading manufacturers of gas gensets and gas geysers.
With a view to promote genuine CNG retrofittment, the Company alongwith
reputed suppliers is setting up model workshops at selected CNG
stations.
INFORMATION TECHNOLOGY
Your Company has recently implemented customer portal which includes
CRM (Customer Relationship Management) functionalities. The portal
extends facilities such as PNG bill viewing & payment, complaint
logging, new connection
application etc as self service to customers. This system also provides
single platform for IGL employees, customers and third parties to work
collaboratively and achieve customer satisfaction. The Company has
taken initiatives for advanced surveillance for its CNG stations,
Disaster Recovery and Business Continuity planning, and GIS
(Geographical Information System) use for effective Asset Management,
Network Planning and Operations Management.
HUMAN RESOURCES
During the year, your Company enjoyed harmonious and cordial human
relations amongst all its employees. Your Company undertook various HR
initiatives to further infuse professionalism in the workforce, such as
revised performance management system, induction only through campus
recruitment of GETs / ETs and streamlining other HR policies.
Comprehensive induction training was provided to new employees in
association with GAILs Training Institute at Noida. Training was
imparted to employees on regular basis for knowledge and skill
enhancement.
There was no employee in the Company drawing remuneration more than the
limits prescribed under Section 217 (2A) of the Companies Act, 1956
read with the Companies (Particulars of Employees) Rules, 1975.
HEALTH SAFETY AND ENVIRONMENT (HSE)
Your Company has always accorded highest priority to Fire and Safety
related issues. It is a matter of pride that your Company has crossed
78 million man hours without any reportable lost time accident.
Training is regularly imparted to the employees, contract staff at CNG
stations, DTC Drivers and consumers of CNG and PNG. To create safety
awareness and impart training to all category of consumers, a dedicated
group of trainers with fully equipped training van is deployed which
conducts safety clinics alongwith practical demonstration.
For safety of CNG vehicles, free safety camps are periodically
organized where inspection of CNG kits is undertaken. Safety inspection
of CNG vehicles is also done periodically on random basis to check
compliances of safety standards and to prevent unsafe conditions
arising out of gas leakage from the CNG kits.
As per your Companys HSE policy, Safety Audit, HAZOP & Risk assessment
of CNG Stations and PNG installations are carried out by third parties.
The onsite emergency action plan is regularly rehearsed and updated.
Emergency response vehicles are under procurement, which shall be
stationed at emergency control centers, manned round the clock to
respond fast to any gas leak or emergency situation.
SOCIAL RESPONSIBILITY
Your Company has formulated a CSR policy under which 1% of Profit After
Tax (PAT) each year is earmarked for social causes. Thrust areas for
CSR programme have been identified as Health & Environment, Education
and Care & Empowerment of underprivileged. The Company is making
regular contribution to NGOs and charitable institutions towards social
welfare. Your Company organizes regular medical health and eye check up
camps for CNG vehicle drivers. The Company is supporting meritorious
students from under-privileged strata of society for IIT coaching
through a scheme run by an NGO. It is a matter of satisfaction that all
the 7 children who were sponsored by the Company qualified in the IIT
JEE examination 2011. The Company is also extending help to DTC by
providing equipment and facilities aimed at inculcating safe driving
habits among the drivers.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the provisions of Section 217(2AA) of the Companies Act,
1956, your Directors hereby confirm that:
i) in the preparation of Annual Accounts for the financial year ended
March 31, 2011, the applicable accounting standards have been followed;
ii) they have selected such accounting policies and applied them
consistently except where otherwise stated in the Notes to Accounts and
made judgments and estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company at the
end of the financial year and of the profit of the Company for the year
under review;
iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; and
iv) they have prepared the Annual Accounts for the Financial Year ended
31st March, 2011 on a going concern basis.
BOARD OF DIRECTORS
Shri B. C. Tripathi, nominee of GAIL was appointed as Chairman of the
Board w.e.f. January 14, 2011 in place of Shri S. Radhakrishnan.
Shri K. K. Gupta, nominee of BPCL was appointed as Additional Director
in place of Shri S. Radhakrishnan w.e.f. March 01, 2011 and in terms
of Section 260 of the Companies Act, 1956, he holds office until the
ensuing Annual General Meeting. Notice under Section 257 of the
Companies Act, 1956 has been received proposing his name for
appointment as Director at the Annual General Meeting.
Shri Rajesh Vedvyas, nominee of GAIL was appointed as Managing Director
for a period of three years i.e. upto July 28, 2011. GAIL has extended
the secondment period of Shri Vedvyas upto March 31, 2012 and
accordingly it is proposed to re-appoint him in the ensuing Annual
General Meeting.
Shri R. K. Verma, retires by rotation at the ensuring Annual General
Meeting and being eligible, offers himself for re- appointment.
Shri S. S. Dalal, retires by rotation at the ensuring Annual General
Meeting and does not offer himself for re-appointment.
The Board takes this opportunity to place on record its appreciation
for valuable contribution made by Shri S. Radhakrishnan, during his
tenure as Chairman and Director of the Company.
AUDITORS
M/s. Deloitte Haskins & Sells, Chartered Accountants, Auditors of the
Company retire at the ensuing Annual General Meeting and being
eligible, offers themselves for reappointment.
CORPORATE GOVERNANCE
As per the requirements of the Clause 49 of the Listing Agreement with
the Stock Exchanges a detailed Report on Corporate Governance is
annexed as part of the Annual Report.
CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information in accordance with the provisions of Section 217(1)(e)
of the Companies Act, 1956 read with the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 is annexed
hereto.
ACKNOWLEDGEMENTS
Your Directors express their gratitude to the Ministry of Petroleum &
Natural Gas, State Governments of NCT of Delhi & Uttar Pradesh and
Promoter Companies (GAIL & BPCL) for their continuous patronage &
support throughout the year.
The Directors also acknowledge the support of all the Local
Authorities, Bankers, Media, Station Operators & their employees,
contractors, vendors and suppliers.
The Directors place on record their deep appreciation towards IGLs
valued customers for their continued co-operation & support and look
forward to the continuance of this relationship in future also.
The Directors wish to express their gratitude to all the shareholders
for their continued trust and support.
The Directors also sincerely acknowledge the contributions made by all
the employees of IGL for their dedicated services to the Company.
For and on behalf of Board of Directors
sd/- sd/-
Manmohan Singh Rajesh Vedvyas
Director (Commercial) Managing Director
Place : New Delhi
Date : June 14, 2011
Mar 31, 2010
The Directors have pleasure in presenting the Eleventh Annual Report
alongwith Audited Accounts of the Company for the year ended March 31,
2010.
PHYSICAL PERFORMANCE
During the year, the Company recorded sales as under:
(Figures in Standard Cubic Meters)
Product For the Year
2009-2010 2008-2009
Compressed
Natural Gas (CNG) 695,127,167 605,255,608
Piped Natural Gas (PNG) 87,310,564 54,257,774
Total 782,437,731 659,513,382
FINANCIAL RESULTS
(Rs. in Million)
ITEMS For the Year
2009-2010 2008-2009
Net Sales & Other Income 10992.24 8789.91
Profit before Depreciation & Tax 4018.90 3262.94
Depreciation 774.52 674.34
Profit before tax 3244.38 2588.60
Provision for tax 1089.42 863.86
Profit after tax 2154.96 1724.74
Profit brought forward from
previous year 4732.53 3835.43
Profit available for appropriations 6887.49 5560.17
Appropriations:
Proposed dividend 630.00 560.00
Corporate dividend tax 104.64 95.17
Transferred to general reserve 215.49 172.47
Profit carried forward 5937.36 4732.53
6887.49 5560.17
FINANCIAL REVIEW
The Company has been showing consistently good financial performance
both in terms of turnover and profitability. During the year, gross
turnover of the Company increased by 26% from Rs. 9621.37 million in
year 2008-09 to Rs. 12131.31 million in the year 2009-10. Profit after
tax also went up by 25% from Rs. 1724.74 million in 2008-09 to Rs.
2154.96 million in 2009-10.
DIVIDEND
Your Directors are pleased to recommend dividend of 45% (Rs. 4.50 per
share) as against 40% (Rs 4/- per share) in the last year. The proposed
dividend including corporate dividend tax would absorb Rs. 734.64
million.
PERFORMANCE HIGHLIGHTS
CNG BUSINESS:
Your Company augmented its CNG distribution infrastructure in a massive
way during the year. The total number of CNG stations increased from
181 in March 2009 to 241 in March 2010, which included 223 stations in
NCT of Delhi and 18 stations in NCR towns.
The installed compression capacity also went up
substantially from 26.76 Lakh Kg/day in March 2009 to 36.40 Lakh Kg/day
in March 2010.
During the financial year 2009-10, the Company for the first time
started CNG supply to vehicles in the town of Ghaziabad. The first
online CNG station in this town was also set up during the year.
The estimated number of vehicles running on CNG in Delhi and NCR towns
as on 31st March 2010 was around 3,50,000 including 14,000 buses and
over 200,000 private vehicles.
PNG BUSINESS:
Your Company is giving thrust to expansion of PNG network in NCT of
Delhi and NCR towns of Noida, Greater Noida and Ghaziabad.
The Company has extended the Piped Natural Gas distribution
infrastructure to the new areas in Delhi which include Safdarjung
Development Area, Safdarjung Enclave, Vigyan Vihar, Vigyan Lok, Manak
Vihar, Anand Vihar, Nanak Vihar, Jagrati Vihar, Surajmal Vihar,
Pushpanjali Enclave, Saini Enclave, Bahubali Enclave, Kiran Vihar, Ram
Vihar, Mayur Vihar (Phase III), Rishab
Vihar, Sharad Vihar, Priya Enclave, AGCR Enclave, Shyam Enclave, Shanti
Vihar, Madhu Vihar, North Avenue, South Avenue, Meena Bagh, AIIMS, GTB
Hospital, Rohini (selected sectors) besides providing connections to
new applicants in areas which have been covered with PNG supply during
earlier years.
The PNG supply has also been extended to Sector 61 in Noida and Sectors
Sigma, Beta 1, Alpha of Greater Noida.
Your Company also started PNG supply for the first time in the town of
Ghaziabad in Ram Prasth colony during 2009 -2010.
During 2010-11, the Company plans to extend its PNG distribution
network to Chitrakoot, GTB Enclave, Dwarka (Sector-8), Paschim Puri,
Rajender Nagar, Patel Nagar, Kirti Nagar, Keshavpuram, Model Town,
Derawal Nagar, Gujranwala Town, Mukharjee Nagar, Hakikat Nagar,
Kingsway Camp, Tagore Park, Outram Lines, Punjabi Bagh (E), Tagore
Garden, Vishal Enclave, Rajouri Garden, Hari Nagar, Ashok Nagar, Yamuna
Vihar, Jhilmil, CBD Shahdara, Preet Vihar, Geeta Colony in NCT of
Delhi.
In Noida, your Company has planned to spread out its network in Sectors
33, 34, 35, 39, 50, 51 and 52. In Greater Noida, the Company shall
extend its PNG network to sectors Gamma & Delta. In Ghaziabad,
residents of Surya Nagar, Chander Nagar, Ram Puri, Brij Vihar, Kaushambi,
Vaishali, Indirapuram & Vasundhara are planned to be provided with PNG
supply during 2010 -11.
During the year, the Company added 44,000 PNG connections and 40
commercial customers. As on 31st March 2010, the Company has provided
PNG connections to over 182,000 domestic and more than 355 commercial
customers.
R-LNG BUSINESS:
The Company is presently supplying R-LNG to 21 industrial consumers in
Delhi. Your Company has also started supplying R-LNG to the industrial
segment in Noida and Greater Noida and these cities shall contribute
major volumes of gas sale in industrial segment from 2010-2011 onwards.
In the city of Ghaziabad also, the work of extending supply to
industrial and commercial segment is in progress and supplies shall
commence during the year 2010-11.
Your Company has already tied up with GAIL and BPCL for gas supply for
meeting the demand of this segment.
FUTURE OUTLOOK
NCT OF DELHI
Your Company has drawn out plans to further consolidate its presence in
the NCT of Delhi by investing Rs. 915 million during the financial year
2010-11 for CNG expansion.
CNG being an eco-friendly and economical fuel, a large number of
private car manufacturers are introducing their CNG variants. Due to
wide acceptance of CNG, there has been a large-scale conversion of
private cars into CNG mode. This segment will give a boost to CNG sales
in the coming years.
In view of forthcoming Commonwealth Games in 2010, a large number of
high capacity buses and Radio Taxis running on CNG are being added to
the public transport fleet in the Capital for the convenience of
visitors. The Government of NCT of Delhi has directed all Light
Commercial Vehicles (LCVs) operating in NCT of Delhi to convert to CNG
mode. The Company has drawn up plans to augment its infrastructure to
meet the growing demand of CNG.
Your Company has planned a large expansion in PNG segment. A capital
expenditure of Rs.1940 million has been earmarked for augmenting
infrastructure in the existing areas as well as for expansion in new
areas of Delhi during the financial year 2010- 11. The Company has
plans to provide new PNG connections to over 50000 domestic households.
EXPANSION PROJECTS IN NATIONAL CAPITAL REGION (NCR)
Your Company has planned capital investment of Rs. 2400 million for the
NCR towns of Noida, Greater Noida & Ghaziabad to augment its CNG and
PNG infrastructure.
The Company plans to tap prospective industrial users of natural gas in
industrial segment in these towns in the coming years.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the provisions of Section 217(2AA) of the Companies Act,
1956, your Directors hereby confirm that:
i) in the preparation of Annual Accounts for the financial year ended
March 31, 2010, the applicable accounting standards have been followed;
ii) they have selected such accounting policies and applied them
consistently except where otherwise stated in the Notes to Accounts and
made judgments and estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company at the
end of the financial year and of the profit of the Company for the year
under review;
iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; and
iv) they have prepared the Annual Accounts for the Financial Year ended
31st March, 2010 on a going concern basis.
BOARD OF DIRECTORS
Prof. V. Ranganathan was appointed as Additional Director w.e.f.
November 1, 2009 and in terms of Section 260 of the Companies Act,
1956, he holds office until the ensuing Annual General Meeting. Notice
under Section 257 of the Companies
Act, 1956 has been received proposing his name for appointment as
Director at the Annual General Meeting.
Shri S. Radhakrishnan and Shri S.S. Rao retire by rotation at the
ensuing Annual General Meeting and being eligible, offer themselves for
reappointment.
AUDITORS
M/s. Deloitte Haskins & Sells, Chartered Accountants, Auditors of the
Company retire at the ensuing Annual General Meeting and being
eligible, offers themselves for reappointment.
CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information in accordance with the provisions of Section 217(1)(e)
of the Companies Act, 1956 read with the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 is annexed
hereto.
CORPORATE GOVERNANCE
As per the requirements of the Clause 49 of the Listing Agreement with
the Stock Exchanges a detailed Report on Corporate Governance is
annexed as part of the Annual Report.
HUMAN RESOURCES
During the year, your Company enjoyed harmonious and cordial human
relations amongst all its employees. Your Company took various HR
initiatives such as revision in pay structure, formulation of welfare
schemes for the employees and streamlining of HR policies. There has
been a continuous emphasis on employees training to enhance their
competencies aimed at better organisational performance.
A statement showing particulars of employees under Section 217 (2A) of
the Companies Act, 1956 is annexed.
FIRE AND SAFETY
Your Company has accorded top-most priority to Fire & Safety related
issues. It is a matter of pride that the Company has crossed 66 million
man-hours without any reportable lost time accident, as a result of
good safety culture in the Company. This achievement is due to the
continuous efforts put in by providing fire fighting training on a regular
basis to the employees, DSMs, Station Operators, DTC Drivers and consumers
of CNG and PNG. Besides this, your Company has made arrangements to impart
two days certified external training to all contract personnel working at
CNG stations from a recognized training institute.
Core Safety Group comprising trained & qualified Company executives of
multi-disciplines from all control rooms was imparted internationally
accredited safety training from NEBOSH, UK. Safety Clinics alongwith
practical demonstrations / training to operate portable fire
extinguishers are regularly carried out at consumer premises. For
better understanding and to further improve quality of training module,
the Company is intending to depute a dedicated group of trainers with
fully equipped Training Van to cover each and every sector of
consumers, contract workers and employees. Also in line with the
commitment for safety of CNG consumers and energy conservation, safety
checks of CNG propelled cars were carried out through free service
camps of CNG Kits across NCT of Delhi.
External Safety Audit, HAZOP & Risk Assessment of CNG Stations and PNG
installations are carried out by third parties and
recommendations/observations are complied with. Safety inspections of
CNG vehicles are done on random basis to check compliances of safety
standards, statutory provisions and also to detect unsafe conditions
arising out of gas leakage from the CNG kits in order to ascertain
safety of the vehicles and the occupants.
SOCIAL RESPONSIBILITY
Your Company has been actively involved in fulfilling the Social causes
besides keeping the environment clean through reduction in vehicular
pollution by providing eco-friendly fuel to the transport sector in NCT
of Delhi and neighbouring towns. The Company has won accolades for the
same, nationally as well as internationally.
Your Company has taken Natural Gas beyond vehicles by reaching the
households through pipelines for better convenience and ease of use in
the form of PNG (Piped Natural Gas) and now aims to delight the
customers through enhanced customer services.
The Company made contributions to NGOs working in the field of
environment and social welfare, as a part of your CompanyÃs commitment
to the society.
Your Company has formulated a CSR policy under which 1% of Profit After
Tax (PAT) each year, would be earmarked for social causes.
ACKNOWLEDGEMENTS
Your Directors express their gratitude to the Ministry of Petroleum &
Natural Gas, State Governments of NCT of Delhi & Uttar Pradesh and
Promoter Companies (GAIL & BPCL) for their continuous patronage &
support throughout the year.
The Directors also acknowledge the support of all the Local
Authorities, Bankers, Media, Station Operators & their employees,
contractors, vendors and suppliers.
The Directors place on record their deep appreciation towards IGLÃs
valued customers for their continued cooperation & support and look
forward to the continuance of this relationship in future also.
The Directors wish to express their gratitude to all the shareholders
for their continued trust and support.
The Directors also sincerely acknowledge the contributions made by all
the employees of IGL for their dedicated services to the Company.
For and on behalf of Board of Directors
sd/- sd/-
Manmohan Singh Rajesh Vedvyas
Director (Commercial) Managing Director
Place : Uttaranchal
Date : May 22, 2010
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