Responsibly Building India's Energy Future
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INDRAPRASTHA GAS LIMITED 22nd Annual Report 2020- 21 Responsibly Building India’s Energy Future The world is grappling with fast environmental changes. From rising temperatures to growing incidents of natural disasters, sustainability concerns loom large. Countries as well as business entities have realised the need to foster sustainable operations to support a greener future. It has also propagated a rapid transition towards the acceptance of cleaner fuel. Taking advantage of evolving preferences, at Indraprastha Gas, we remain keen to explore myriad opportunities to ensure a steady supply of eco-friendly fuel. We continue to foster technological innovations, rely on efficient methods and fortify our city gas distribution network to improve our reach further. With consistent efforts to harness the power of safer, convenient and reliable energy sources, we are upgrading our operational capacity to accommodate change and transition towards a greener tomorrow. Contents 02 04 05 06 Chairman’s Financial Board of Directors’ Message Highlights Directors Report 41 56 61 Report on Corporate Management Business Governance Discussion and Responsibility Analysis Report 70 129 Standalone Consolidated Financial Financial Statements Statements 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 forward-looking 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 forward-looking statements and assumed facts or bases and actual results can be material, depending on the circumstances. Indraprastha Gas Limited Chairman’s Message of CNG stations to 612 with a total compression capacity of 88 lacs kg per day. During the year, the Company also provided more than 3.1 lacs new domestic PNG connections, which is the highest number of connections provided by any CGD in a single financial year. Your Company also added more than 1100 new commercial and industrial customers. In NCT of Delhi, all industries have switched over to natural gas for meeting their fuel requirements. Your Company catered to more than 12.05 Lacs CNG vehicles, 16.85 Lacs domestic PNG customers and more than 6600 commercial and industrial customers as on March 31, 2021. The collaborative efforts of all the stakeholders of the Company enabled us to successfully fulfil our objectives. With the government’s growing thrust on natural gas and its vision of making India a gas based economy, the CGD sector is growing at a fast pace. After completion of the 10th Dear Shareowners, I am pleased to share that your round of bidding by PNGRB, 70% of Company is one of the leading City the country’s population and 50% of Let me first convey my good wishes to Gas Distribution (CGD) companies of its total area have been covered under all of you and hope you all are safe and the country. During the year, Gross in good health. Turnover and Profit After Tax (PAT) the CGD network. The government stood at Rs. 5409 Crores and Rs. 1006 has taken various steps to promote The financial year 2020-21 had been Crores, respectively. Despite FY 2020- CGD companies, ensuring allocation a challenging year as the Covid-19 21 being a difficult year, your Board of of gas for domestic customers and for pandemic affected all facets of life, Directors recommended a dividend of transportation requirements, giving inter-alia, business or corporate 180% i.e. Rs. 3.60 per share, which is it a public utility status and framing a sector. Despite all odds, our the highest dividend in the history of model CGD policy. These measures employees and contractors fearlessly the Company. coupled with the start of the Indian ensured uninterrupted gas supply for Gas Exchange and revision in transport transport, commercial & industrial as IGL overcame operational hurdles tariff policy are likely to add growth in well as domestic customers, without during the year and added 62 new the industry and transform India into a compromising on safety. CNG stations, taking the total number vibrant gas market. 02 22nd Annual Report 2020- 21 The changing landscape offers as well as PNG customers. It has also the underprivileged sections of society numerous opportunities for CGD provided various digital platforms for during the countrywide lockdown at companies. IGL being a pioneer in the the convenience of customers. the beginning of financial year 2020- CGD sector is geared to make optimum 21. IGL remained at the forefront to use of its resources for sustainable IGL has always accorded top most serve the nation in its fight against the future growth. The operations of the priority to Safety issues. It has made pandemic. Relief material in the form Company are spread over in NCT of concerted efforts to maintain a good of food, dry ration, hand sanitizers, Delhi and states of Uttar Pradesh, safety culture and abide by the highest PPE Kits etc. were distributed to the Haryana and Rajasthan. Besides this, safety standards. Regular trainings are needy as well as the frontline workers your Company is also exploring for imparted to drivers, PNG customers, of Delhi & NCR. To support healthcare, inorganic growth by acquiring stakes in employees, contractual staff and other 6 PSA Oxygen plants and LMO tanks other CGD companies stakeholders to ensure adherence of 100MT capacity were also installed to safety policies. Your company has by the Company. IGL is fully conscious With a futuristic vision, IGL has also won prestigious safety awards, in of its social responsibility and would forayed in the Electric Vehicle (EV) recognition of its high safety standards. continue its endeavour to serve the sector. The Company has plans to set society. up 50 EV charging stations by the end The Company has always given utmost of this financial year. To connect cities importance to its human capital and On behalf of the Board of Directors, with CNG infrastructure and provide makes optimum use of their potential to I take this opportunity to thank the long distance connectivity, IGL has enable business growth. It also reviews Government of India, Petroleum and successfully showcased the use of Type employee welfare schemes from time Natural Gas Regulatory Board, all the IV cylinder long-haul buses between to time to motivate the employees. IGL departments of the Central and State Delhi and Dehradun. It aims to make gives due importance to the training governments, our valued Customers CNG popular among State Transport and development of employees and all the authorities and agencies Undertakings (STUs) and Private and focuses on upgrading skills and for their unstinted support to the Transporters to enable conversion expertise in various areas. During the Company . from conventional fuels to cleaner year, a number of team building and alternatives like CNG. skill development programmes have I, along with my colleagues on the been conducted online to improve Board, would also like to thank each As part of its diversification plans, IGL employee engagement. Further, the and every employee of IGL for their is exploring the area of hydrogen as a Company recognizes and appreciates hard work and dedication. fuel. The Company is also looking to the contribution of all its employees leverage its expertise and execution in its growth journey. During the year, Finally, I would like to thank each one capabilities to provide consultancy IGL has provided the facility of online of our shareowners, for the confidence services to other companies. Along with consultations with doctors, preventive and trust reposed in us. With your it, building capacity of human resources sessions on Covid - 19, arrangements support and blessings, we are confident and organisational transformation are for Covid-19 (RT-PCR) tests, vaccination to continue our journey of sustainable also key priorities for the organization. facilities and post Covid Care Camps to growth in the coming years. All these initiatives are expected to aid its employees. the IGL’s growth and expansion. IGL, as a responsible corporate Your Company is also focused on citizen, has been undertaking various Stay safe and healthy customer needs and is continuously CSR activities with a focus on health, making efforts to improve its education, skill development and services. IGL has taken initiatives empowerment of women & the towards strengthening of Customer underprivileged. Your Company carried Relationship Management. Special its key CSR project “Building Bonds Warm Regards, focus has been made to improve through Gender Sensitization”, which is the meter reading, billing and bill a training programme for taxi, bus and delivery processes, which has led auto drivers in Delhi, Noida & Gurugram to enhanced customer satisfaction. aimed at making commute in public Your Company has given emphasis transport safe for the women. Your Arun Kumar Singh on digital payments for both its CNG Company realized its commitment to Chairman 03 Indraprastha Gas Limited Financial Highlights Gross Turnover Profit after Tax (in Rs. Crores) (in Rs. Crores) FY17 4,205 FY17 571 FY18 4,994 FY18 671 FY19 6,337 FY19 787 FY20 7,131 FY20 1,137 FY21 5,409 FY21 1,006 Dividend Average sales per day (%) (mmscmd) FY17 85 FY17 4.59 FY18 100 FY18 5.18 FY19 120 FY19 5.91 FY20 140 FY20 6.44 FY21 180 FY21 5.33 04 22nd Annual Report 2020- 21 Board of Directors Shri Arun Kumar Singh Shri A K Jana Shri Amit Garg Shri R.K.