INDRAPRASTHA GAS LIMITED 21st Annual Report 2019- 20 CLEAN ENERGY. SUSTAINABLE TOMORROW. Clean Energy. Sustainable Tomorrow. Growing environmental concerns and imminent threats to our ecosystem have compelled the world to identify opportunities for developing clean energy. Pledges to reduce emissions and meet long-term sustainability goals have also prompted innovative ideas to safeguard our planet. Indraprastha Gas recognizes the need to capitalize on shifting preferences for cleaner sources of energy and aspires to responsibly deliver natural gas to transport, domestic, commercial and industrial customer base. As a leading city gas distribution company, we aim to be the preferred choice for safe, convenient and reliable energy. With a vision to enhance the reach of clean fuel further, we are embracing technology to build capacity and inculcating innovative procedures to ensure operational agility and efficiency. Equipped with the resources to fulfil the rising demand for natural gas, we plan to further strengthen our infrastructure and expand our network to promote clean energy and harness a sustainable future. CONTENTS Chairman’s Message 02 Balance Sheet 80 Financial Highlights 04 Statement of Profit and Loss 81 Board of Directors 05 Statement of Changes in Equity 82 Directors’ Report 06 Cash Flow Statement 83 Summary of Significant Accounting Policies Report on Corporate Governance 43 and other Explanatory Information 85 Management Discussion and Analysis 56 Comments of C&AG – Supplementary Audit 128 Business Responsibility Report 60 Consolidated Financial Statements 129 Independent Auditor’s Report 70 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 To view the report online log on to bases and actual results can be material, depending on the circumstances. www.iglonline.net CHAIRMAN’S MESSAGE Dear Shareowners, Let me first convey my good wishes to all Profit After Tax (PAT) increased by 44.5 % added around 1,300 new commercial of you for safety and good health during from Rs. 787 Crores in FY 2018-19 to Rs. and industrial customers. this period of pandemic Covid-19. 1,137 Crores in FY 2019-20. Both gross turnover and PAT of FY 2019-20 have The government is giving thrust to I am pleased to share that today your been the highest in the history of the natural gas to make India as a gas based Company is one of the leading City Gas Company. Your Board of Directors have economy. CGD sector is emerging as Distribution (CGD) companies of the recommended dividend of 140% i.e. Rs. one of the high growth potential sectors country catering to more than 1.1 million 2.80 per share, the highest dividend so in India. After completion of 10th round CNG vehicles, 1.4 million domestic PNG far in a financial year. of bidding by PNGRB, 70% of country’s customers and over 5,500 commercial population and 50% of its total area have & industrial customers. This has been Besides good financial performance, been covered under CGD network. The possible with the collaborative efforts of your Company continued its drive to government has taken various steps to all stakeholders of the Company. augment its infrastructure by adding 55 promote CGD companies inter alia full new CNG stations and around 1,600 Kms allocation of gas for PNG domestic and Your Company has been showing of pipeline network. During the year, the transport requirements, giving public consistently good performance and Company provided more than 2.72 lacs utility status and framing CGD model the financial year 2019-20 showed new PNG domestic connections which is policy. These measures coupled with outstanding performance. During the the highest number of connections in a the start of Gas Exchange and envisaged year, gross turnover showed a growth of single financial year in the history of the revision in transport tariff policy are likely 12.5% increasing from Rs. 6,337 Crores Company as well as of any other CGD to add growth in the sector. to Rs. 7,131 Crores in the previous year. Company of the country. The Company 02 Indraprastha Gas Limited | 21st Annual Report 2019-20 The changing landscape offers many strengthen its Customer Relationship entrance examination to underprivileged opportunities for CGD companies. Your Management (CRM) module in SAP. It is students, Self Defence training for Company being a pioneer in CGD sector promoting digital payment by providing school girls, education programmes at is geared up to make optimum use of its various platforms to its customers and municipal schools, Skill Development resources for sustainable future growth. taking other measures for providing for rural women and underprivileged/ better services to them. unemployed youth, construction of The Company has been reviewing its toilets etc. were undertaken by your corporate strategy to align it with changing Your Company has always accorded company. The Company has won a scenario. Besides increasing its customer top most priority to Safety. It has number of awards for its various CSR base in existing areas, it has made plans to made concerted efforts to maintain projects/programmes at different roll out CGD network in new geographical a good safety culture and highest forums. areas at a fast pace for growth of the safety standards. Regular trainings are Company. Recently, the Company has imparted to drivers, PNG customers, On behalf of the Board of Directors, started sales in new areas of Kanpur and employees, contractual staff and other I take this opportunity to thank the Kaithal . The Company is also looking for stakeholders on regular basis. It is a Government of India, Petroleum and inorganic growth by acquiring stakes in matter of pride that your Company had Natural Gas Regulatory Board and all other CGD companies. crossed 184 Million Man Hours accident departments of the Central and State free till 31st March, 2020. The Company governments, our valued Customers, The Company has taken various new has won various prestigious safety all the authorities and agencies for their initiatives for its future growth. It is awards from different authorities in unstinted support to your Company . setting up, in association with Indian recognition of its high safety standards. Oil Corporation, a H-CNG station as a I, along with my colleagues on the Board, pilot project, first of its kind in India. The The Company has always given utmost would also like to thank each and every Company has plans to promote the usage importance to its human capital and try employee of IGL for all the hard work put of gas in home appliances in households, to make optimum use of their potential in by them. to start mobile CNG dispensing facilities for the growth of the Company. The and to provide charging facilities for Company keeps reviewing employee Finally, I would like to thank each one of e-vehicles. As a backward integration, the related welfare schemes from time to you from IGL’s family of Shareowners, for Company has a plan to set up a gas meter time to motivate the employees. The the confidence and trust reposed in us. manufacturing unit in India. The Company Company gives due importance to With your support and blessings, I am is also looking to leverage its expertise training and development of employees confident that we shall continue to strive and execution capabilities by providing to upgrade their skills and expertise in to achieve new heights in the coming consultancy services for setting up CGD various areas. During the year, a number years. projects. Optimisation of resources and of team building, skill developments and Stay safe and healthy. organisational transformation are also sports events were conducted by your being carried out. All these initiatives Company. The Company recognizes and will add to the growth and business appreciates the contribution of all its expansion of the Company. The Company employees in its growth journey. Warm Regards, has earmarked total Capex of Rs. 1,370 Crores for FY 2020-21. Your Company, as a responsible corporate citizen, has been taking Your Company is also focused to various CSR activities with focus on customer needs and is continuously health, education, empowerment of making efforts to improve its services. women & underprivileged and skill In this endeavour, your Company has development. During FY2019-20, leveraged information technology CSR programmes such as IGL Swasth P. K. Gupta to upgrade its customer app – IGL Saarthi, Building Bonds through Gender Chairman connect by adding new features and to Sensitisation, coaching for engineering 03 FINANCIAL HIGHLIGHTS Gross Turnover (in Rs. Crores) Profit after Tax (in Rs. Crores) 7131 1137 6337 4994 787 4205 671 4052 571 419 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Dividend (%) Average sales per day (mmscmd) 140 6.44 5.91 120 5.18 100 4.59 85 4.00 60 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 04 Indraprastha Gas Limited | 21st Annual Report 2019-20 BOARD OF DIRECTORS Shri P.K. Gupta Shri A.K. Jana Shri Amit Garg Shri R.P.