Annual Report 2014-15 Download
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1500 Net Worth 1407 1297 DIRECTORS’ REPORT 1400 1183 1200 1067 To the Members, 1000 915 780 Your Directors are pleased to present you the Twentieth Annual 800 Report of the Company (MGL) together with the Audited 675 in Crores Statements of Accounts for the year ended March 31, 2015. ` 600 1. FINANCIAL PERFORMANCE 400 Your Company surpassed the milestone of `2,000 Crores 200 turnover, registering an impressive growth of 11% over the previous year. The Prot after Tax is `301 Crores for the year 0 2014-15 as compared to `297 Crores for the year 2013-14. 2009 2010 2011 2012 2013 2014 2015 Year The nancial results for the year ended March 31, 2015 are summarized below: The payment of dividend, after your approval at the Mumbai is a densely populated and a congested city. forthcoming Annual General Meeting, will be made in Building infrastructure in the city has always been a Particulars FY 2014-15 FY 2013-14 accordance with the regulations applicable at that time. challenge for your Company. Furthermore, as compared to `in Crores `in Crores other utilities whose infrastructure is already laid in the Net Revenue(Operating) 2,095 1,885 limited corridors available, City Gas Distribution (CGD) has Other Income 3. STATE OF COMPANY’S AFFAIRS 41 34 the “last mover” disadvantage in Mumbai. Prot before Interest and Depreciation 530 523 Interest 1 0.21 Your Company’s growth is on fast track and is poised for Depreciation 80 81 scaling newer heights, in it’s chosen areas of operations. A The Company is also rapidly spreading it’s distribution Prot before Tax (PBT) 449 442 brief summary of the operations of the Company is provided infrastructure and connecting consumers in the suburban Provision for Tax 148 145 in the Management Discussion & Analysis section forming areas of Kalyan-Dombivli, Ambernath-Badlapur, Ulhasnagar, Prot after Tax (PAT) 301 297 part of this report. Bhiwandi, Panvel, Kharghar and Taloja which are also within Balance of Prot for earlier years 995 911 your Company’s authorized Geographical Area. Growth has On account of change in estimated useful life 4. MANAGEMENT DISCUSSION & ANALYSIS been maintained despite encountering complexities due to in case of certain assets, depreciation adjusted (2) - development of infrastructure by various other entities / as per Companies Act, 2013 [net of tax] Building trust of promoters - Presentation of dividend cheques to (a) Operations and Business Performance: authorities, limited construction window period of six Balance available for appropriation 1,294 1,208 GAIL (I) Ltd, BG India Ltd. and Government of Maharashtra. months due to monsoons and delay in availability of Appropriation The Company has successfully continued scaling up of the statutory permissions from local authorities to build CGD Transfer to General Reserve - 30 Net worth per share has increased from `145.17 in 2013-14 to infrastructure during the year under review in its authorised infrastructure. Proposed Dividend on Equity Shares 156 156 `157.54 in 2014-15 signifying sound return on investment areas of operation of Mumbai, Thane, Mira-Bhayander and Tax on Dividend 32 27 coupled with sizeable amount of prot ploughed back into the Navi Mumbai. Balance of prot carried to Balance Sheet 1,106 995 business. Total Appropriations 1,294 1,208 Earnings Per Share (Face value of `10/- each) Basic (`) 33.69 33.27 2. APPROPRIATIONS Diluted (`) 30.54 30.15 SALE OF NATURAL GAS ADDITION TO GROSS BLOCK Dividend 300 EBIDT In the previous year, a dividend of `17.50 per equity share of face value of ` 10/- 250 235 each (which included special dividend of 200 `7.50 per share) was paid. For the nancial 189 174 year ended March 31, 2015, your Directors 156 150 in Crores are pleased to recommend a dividend of in Crores in Crores ` ` 147 `17.50 per equity share (i.e. normal in Crores in Crores dividend of `10 per share and special 100 ` dividend is `7.50 per share) on 8,93,41,600 85 91 equity shares of `10.00 each (175% on the 50 paid up value of each share). 0 - - - - - - - - - - - - - - - - - - - - - Year Year Year Homes Beneted with PNG Households Connected Cumulative March March March March March March March Some of the highlights of performance and initiatives taken up (vii) Your Company has successfully added 4 CNG cylinder hydro during the year are as follows: testing set-up during the year and total 12 during the years, MGL steel pipeline laying site. to facilitate CNG users. The table below shows growth achieved by the Company: nancial year 2014-15 increased to 2.38 MMSCM per day (i) Day to day eciency in gas sourcing, supply management, registering a growth of over 5.3% during the previous scal year. fund management and operations undertaken by your (viii)Your Company signed term regasied Liquied Natural Gas Addition Cumulative Company led to an overall control on costs. (RLNG) contract (0.15 Firm + 0.15 Fall back) for gas supplies Sr. for the Year Growth upto No. Particulars commencing eectively from April 01, 2014 and the term is 2014-15 March 31, 2015 The highest daily gas volume has reached a peak of 2.645 MMSCM per day during the year. (ii) Your company since its inception, has for the rst time valid till December 2015. Firm RLNG supplies would help A. Piped Natural Gas Nos 95,095 8,01,321 achieved 95,095 PNG connections & 1 Lakh registrations in a your Company to reduce its dependence on Spot RLNG - Household Consumers Connected During the year 2014-15, your Company has made substantial single nancial year. having high volatility of prices. B. Compressed Natural Gas investments in network expansion in its existing areas of - Outlets / Stations Nos 12 180 - Dispensing Points Nos 81 970 operations of laying, building and developing CGD infrastructure (iii) Your Company has met the targets set by PNGRB for GA2 (ix) Your Company contributed for installation of - Compression Capacity Kgs/day 2,02,300 25,39,200 in the authorized areas. domestic connections & Inch-Km. air-conditioning unit at Taraporewala Aquarium, Mumbai. - Vehicles converted to CNG Nos 62,190 4,21,258 C. Pipelines laid During the year 2014-15, apart from domestic connections, your (iv) Your Company has successfully completed assessment of (x) Your Company successfully commissioned a roof top Solar - Steel Kms 25 403 Company has also made progress in adding new Commercial - Polyethylene Kms 195 4,023 ISO 14001 for CGS Mahape, Taloja and Ambernath and also Power Plant of 20kW capacity at MGL Oce Building at and Industrial consumers. successfully achieved re-certication of ISO-9001:2008. Mahape to cater to power electrical lighting of the oce building. The average CNG sale during the nancial year 2014-15 increased Continuous additions to the number of domestic connections (v) Your Company received the Greentech CSR award in Gold to 12.32 Lakhs Kg per day registering growth of about 7.1 % over and vehicles converted to CNG have ensured that your category for outstanding achievement in Corporate Social (b) Development in Gas Sourcing and Pricing: the previous scal year. The peak daily sale of CNG reached 14.66 Company is one of the largest CGD companies in India in terms Responsibility. of consumer base. Lakhs Kg per day during the year. The growth in demand for CNG Untiring eorts and advocacy by your Company resulted in is expected to continue and your Company is preparing to seize Government of India (Gol) vide its revised guidelines dated The average gas sales volume of your Company during the this opportunity by signicantly investing further in the CNG August 20, 2014, allowing supply of domestic gas, 10% over infrastructure in the city of Mumbai and adjoining authorised and above 100% requirement of CNG (transport) and PNG areas during the next scal year. (domestic) of individual CGD entity calculated as per the last 4023 half yearly consumption. As per the MoP&NG guidelines, the 4000 3829 allocation of domestic gas will be reviewed half yearly and 3633 revised based on actual consumption in the previous period. 3500 3288 2722 2988 3000 Further, the GoI notied 'New Domestic Natural Gas Pricing 2464 Guidelines, 2014', dated October 25, 2014 eecting new 2500 domestic natural gas price from November 01, 2014 to March 2000 31, 2015. These Pricing Guidelines 2014, in addition to Kilometer PE Pipeline Laid Recognition for CSR. providing clarity on domestic Natural Gas Pricing, moderated 1500 Cumulative in km the increase in domestic natural gas price and helped in 1000 (vi) Your Company has been awarded by PNGRB with the maintaining competitiveness of CNG (transport) and PNG authorization to implement the CGD network in the district (domestic) supplied by your Company against competing 500 of Raigad in Maharashtra. This will give an opportunity to liquid fuels. 0 your Company to grow beyond the existing areas of GA I & March March March March March March March GA II covering Mumbai, Thane and Navi Mumbai. 2009 2010 2011 2012 2013 2014 2015 Year CNG Growth 2015 970 180 920 2014 169 862 2013 160 The Business Risk Review Group assists the Audit Committee (e) Health, Safety, Security & Environment (HSS&E): 765 and the Board in its oversight of the Company's 2012 151 management of key risks, including strategic and operational Safety Year 2011 729 145 risks, as well as the guidelines, policies and processes for 719 2010 monitoring and mitigating such risks under the aegis of the 144 Your Company is in the business of supplying Piped and 2009 overall Business Risk Management Framework. 136 683 Compressed Natural Gas that is environment friendly and safe.