Shaping the Future of Energy
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Shaping the Future of Energy GREEN. SMART. AFFORDABLE 20th Annual Report 2018- 19 CONTENTS 02 82 Chairman’s Message Balance Sheet 04 83 Vision Financial Highlights Statement of Profit and Loss India’s leading clean energy solution provider through 05 84 Board of Directors Statement of Changes in Equity customer centricity, innovative technology and diversification, 06 85 with international presence. Directors’ Report Cash Flow Statement 46 87 Report on Corporate Governance Summary of Significant Accounting Policies and other Explanatory 59 Information Management Discussion and Analysis 128 Comments of C&AG – Supplementary 62 Mission Audit Business Responsibility Report Committed to provide 72 129 safe, reliable and clean Independent Auditor’s Report Consolidated Financial Statements energy solutions to improve quality of life and enhance stakeholders’ value. Forward looking statement Some information in this report may contain forward-looking statements. We have based these forward looking statements on our current beliefs, expectations and intentions as to facts, actions and events that will or may occur in the future. Such statements generally are identified by forwardlooking words such as “believe,” “plan,” “anticipate,” “continue,” “estimate,” “expect,” “may,” “will” or other similar words. A forward-looking statement may include a statement of the assumptions or basis underlying the forward-looking statement. We have chosen these assumptions or basis in good faith, and we believe that they are reasonable in all material respects. However, we caution you that forward looking statements and assumed facts or bases almost always vary from actual results, and the differences between the results implied by the forwardlooking statements and assumed facts or bases and actual To view the report online log on to results can be material, depending on the circumstances. www.iglonline.net CHAIRMAN’S MESSAGE The scenario in CGD sector is fast changing with the coverage of a large number of geographical areas and entry of new players in this sector. PNGRB through its recently conducted 10th round of CGD bidding has now cumulatively covered 70% of the country’s total population and 50% of total geographical area for setting up PNG and CNG distribution Dear Shareowners, network. Government of India has been providing full allocation of Gas for Your Company has completed its transport and PNG -Domestic to meet successful journey of two decades, in the growing demand of the CGD sector. which it has achieved many milestones. The government has set a mission Today, it is a matter of pride for all of us of providing 1 crore PNG domestic that the Company is the largest City Gas connections by 2020. The government is Distribution Company in the country, giving thrust to natural gas to make India catering to 1.1 million CNG vehicles, as a gas based economy. This changing 1.2 million domestic PNG customers The Company and over 4500 Commercial & Industrial business environment provides customers. challenges as well as opportunities to gives due your Company. The Company has been The financial year 2018-19 was another reviewing its corporate strategy for importance to its year of robust growth both in financial sustainable future growth. and operational numbers. During the human resource year, gross turnover showed a growth of The Company has been expanding its capital who are 26.9% increasing from Rs. 4994 Crores area of operations by entering into to Rs. 6337 Crores in the previous year. new geographical areas. The Company responsible for Profit after tax also showed an increase has already started supply of CNG of 17.3% from Rs. 671 Crores in FY2018 and PNG domestic in earmarked area the growth of to Rs. 787 Crores in FY2019. Both gross of Gurugram and Karnal districts. the Company. turnover and PAT of FY2019 have been The Company has started building the highest in the history of the Company. infrastructure in geographical area of The Company In line with its performance, Board of Meerut (except area already authorised), Directors have recommended dividend Muzaffarnagar & Shamli district in keeps reviewing of 120% i.e. Rs. 2.4 per share, the highest Uttar Pradesh. The Company has also dividend so far in a financial year. received authorization from PNGRB employee related for development of CGD network in On the operational front, your Company geographical areas of (i) Kaithal District (ii) welfare schemes augmented its infrastructure by adding Ajmer, Pali and Rajsamand District & (iii) from time to time 54 new CNG stations with total number Kanpur (except area already authorized) crossing milestone of 500 with total District, Fatehpur and Hamirpur to motivate the compression capacity of around 84 Districts. The Company is also looking for Lakhs kg per day. During the year, the inorganic growth by acquiring stakes in employees. Company provided a record number other CGD companies. of 2.1 Lakhs new PNG domestic connections and around 850 new The Company has taken various new commercial and industrial connections. initiatives for its future growth. Recently, 02 Indraprastha Gas Limited | 20th Annual Report 2018-19 it has started working in association of NCT of Delhi. Regular trainings are Government of India, Petroleum and with Indian Oil Corporation to set up imparted to drivers, PNG customers, Natural Gas Regulatory Board and all a H-CNG station as a pilot project, employees, contractual staff and other departments of the Central and State first of its kind in India. The Company stakeholders on regular basis. It is a governments, our valued Customers, has entered into memorandum of matter of pride that your Company has our promoter companies (GAIL & BPCL), understandings with reputed parties crossed 161 Million Man Hours accident all the authorities and agencies for their for promoting the usage of gas in home free till 31st March, 2019. The Company unstinted support to your Company. appliances in households, conversion of has won various prestigious safety I, along with my colleagues on the Board, diesel gensets into gas based generators awards from different authorities in would also like to thank each and every and to provide charging facilities to recognition of its high safety standards. employee of IGL for all the hard work put e-vehicles. As a backward integration, The Company gives due importance in by them. the Company has a plan to set up a gas to its human resource capital who meter manufacturing unit in India. The are responsible for the growth of the Finally, I would like to thank each one of Company is also looking to leverage its Company. The Company keeps reviewing you from IGL’s family of Shareowners, for expertise and execution capabilities employee related welfare schemes from the confidence and trust reposed in us. by providing consultancy services for time to time to motivate the employees. With your support and blessings, I am setting up CGD projects in India and The Company gives due importance to confident that we shall continue to strive abroad. Optimisation of overall cost and training and development of employees to achieve new milestones in the coming organisational transformation are other to upgrade their skills and expertise in years. areas in which studies are underway. All various areas. During the year, a number these initiatives will add to the growth of team building, skill developments, and Warm Regards, and business expansion of the Company. sports events were conducted by your The Company has earmarked total capex Company. The Company recognizes and of Rs. 1170 Crores for FY2019-20. appreciates the contribution of all its employees in its growth path. Your Company has strong belief in Customer centric approach. It is striving The Company has been taking various CSR Gajendra Singh for excellence in customer services by activities with focus on health, education, Chairman making continuous efforts to improve its environment and empowerment of services. The Company has upgraded its women & underprivileged of the society. customer app – IGL connect by adding During FY2019, CSR programmes such new features and further strengthening as IGL Swasth Saarthi, Building Bonds its customer relationship management through Gender Sensitisation, coaching (CRM) module in SAP. It is promoting for engineering entrance examination to digital payment by providing various underprivileged students, Self Defence options to its customers. The Company training for school girls, education has been providing facilities such as programmes at municipal schools, Skill self-billing , spot billing, prepaid cards, Development for rural women and automatic meter reading and various underprivileged/ unemployed youth incentive schemes for acquiring new etc. were undertaken after conducting PNG Customers. impact assessment study. The Company has won a number of awards for its Your Company has always accorded top various CSR projects/programmes at most priority to Safety related issues. In different forums. recent past, the Company participated in the mock drill of disaster management On behalf of the Board of Directors, exercise carried out by government I take this opportunity to thank the 03 FINANCIAL HIGHLIGHTS Gross Turnover (in Rs. Crores) Profit after Tax (in Rs. Crores) 6337 787 671 4994 571 4205 4049 4052 438 419 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Dividend (%) Average sales per day (mmscmd) 120 5.91 5.18 100 4.59 85 4.00 3.84 60 60 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 04 Indraprastha Gas Limited | 20th Annual Report 2018-19 BOARD OF DIRECTORS Shri Gajendra Singh Chairman Bankers • ICICI Bank Limited • IDBI Bank Limited • State Bank of India • Axis Bank Limited • Andhra Bank • HDFC Bank Limited • IndusInd Bank Limited Shri E. S. Ranganathan Shri Amit Garg Shri R.P. Natekar • IDFC Bank Limited Managing Director Director (Commercial) Director • HSBC Bank Statutory Auditors M/s Walker Chandiok & Co. LLP Cost Auditors M/s Ramanath Iyer & Co. Secretarial Auditors M/s V.K. Sharma & Co.