Annual Reports - Indraprastha Gas Limited

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Company intends to keep it as a focus area with target to add more and more industrial and large commercials in our customer base. This would have positive impact both on the turnover and profitability of the Company. Outlook on Threats, Risks & Concerns PNGRB has issued Regulations for authorization, exclusivity, tariffs, technical standards, service obligations etc. for City Gas Distribution Companies. These regulations are having ramifications on the business of the Company, however, the Company is fully geared up to take new challenges in the emerging competitive environment. The Company has been given marketing exclusivity in NCT of Delhi for a period of three years. Thereafter, the field would be open for competition in this geographical area. However, with its first mover advantage and better understanding of the needs of its customers, the Company would be able to retain its position in the market. As regards supply of natural gas under Administered Price Mechanism (APM) is concerned, GAIL (India) Limited is the sole supplier to the Company. GAIL being one of the promoters of the Company, IGL does not foresee any risk over supply of natural gas. Moreover, gas purchase agreement with GAIL assures us of priority supply in the event of stoppage or any disruption in supply. In addition, the Company has signed agreements with BPCL and GAIL for additional gas. The Company has set up 181 CNG stations spread all over the Delhi, Noida & Greater Noida to meet the demand of transportation sector. Due to recent growth in CNG vehicles, especially private cars, there has been a need to add more CNG stations for which the speedy allocation of land from land owning agencies had been a matter of concern. However, with the support of Delhi Government, the Company is confident to get adequate numbers of land for setting up new CNG stations before the forthcoming Commonwealth Games in 2010. Compression capacity has already been augmented at existing CNG stations by putting additional compressors and replacing low capacity compressors with high capacity compressors. The Company is also trying to add more outlets of Oil Marketing Companies (OMCs) for providing CNG dispensing facilities. Performance Review- CNG & PNG Both CNG & PNG business have performed well during the year 2008-09. The Company sold 605.25 million SCM of Compressed Natural Gas (CNG) and 54.26 million SCM of Piped Natural Gas (PNG) as against 504.62 million SCM and 42.86 million SCM of CNG and PNG respectively in the financial year 2007-08. The Company has an expanding network of 181 stations for supply of CNG as on March 31, 2009. The estimated number of vehicles using CNG has gone up to more than 2.50 lakhs in March 2009 and our back-end infrastructure, compression capacity, dispensing outlets are under continuous augmentation to meet the growing demand. The Company has provided PNG connections to over 1,38,000 domestic and more than 315 commercial customers as on March 31, 2009. Financial Performance Gross turnover of Rs. 9697.76 million for the year ended March 31, 2009 showed a growth of 18.71% over the previous year turnover of Rs.8169.27 million. Profit before tax has been Rs.2588.60 million as against Rs.2608.95 million in the previous year. Profit after tax has been Rs. 1724.74 million as compared to Rs. 1744.55 million in the previous year. The Company is meeting its fund requirement through internal accruals and continue to remain a debt free Company. Share Capital Share Capital of the Company comprises Equity Share Capital of Rs.1400 million. Reserve & Surplus Reserve & Surplus of the Company were Rs. 5434.17 million as at March 31, 2009 as against Rs. 4364.60 million as at March 31, 2008. 24
Earnings per share Earnings per share for the financial year 2008-09 has been Rs. 12.32 compared to Rs. 12.46 in the previous year. Internal Controls The Company has adequate Internal control procedures commensurate with its size and nature of its business. During the financial year 2008-09, M/s S.S. Kothari Mehta & Co., Chartered Accountants carried out internal audits and the internal audit reports prepared by them were placed before the Audit Committee. Human Resources The Company realizes that the challenges of the future can be best met with a competent and motivated human resource. 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. The 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. The Company recognizes and appreciates the contribution of all its employees in its growth path. Environment Consciousness Our main product i.e. Compressed Natural Gas by virtue of its physical and chemical properties provides a clean and environment friendly automotive fuel to transport sector in NCT of Delhi. There has been a visible reduction in vehicular pollution, which has been appreciated by the people of Delhi. The Company is making continuous efforts to reduce pollution in Delhi and its adjoining areas. The work done by the Company has been recognized and applauded at various national & international forums. 25
Page 3 and 4: BOARD OF DIRECTORS Shri B.C. Tripat
Page 5 and 6: Shri Murli Deora, Hon’ble Union M
Page 7 and 8: Smt Pratibha Devi Singh Patil, Hon
Page 9 and 10: Companies (Disclosure of Particular
Page 11 and 12: Dr. U.D. Choubey, Chairman & Managi
Page 13 and 14: FORM-B EFFORTS MADE IN TECHNOLOGY A
Page 15 and 16: REPORT ON CORPORATE GOVERNANCE I. C
Page 17 and 18: CODE OF CONDUCT The Board of Direct
Page 19 and 20: DETAILS OF SHAREHOLDERS’ COMPLAIN
Page 21 and 22: AT NATIONAL STOCK EXCHANGE (NSE) MO
Page 23 and 24: NON-MANDATORY REQUIREMENTS (1) CHAI
Page 25: MANAGEMENT DISCUSSION AND ANALYSIS
Page 29 and 30: ANNEXURE TO THE AUDITORS’ REPORT
Page 31 and 32: 11. Based on our examination of the
Page 33 and 34: BALANCE SHEET AS AT MARCH 31, 2009
Page 35 and 36: PROFIT AND LOSS ACCOUNT FOR THE YEA
Page 37 and 38: CASH FLOW STATEMENT FOR THE YEAR EN
Page 39 and 40: SCHEDULES FORMING PART OF THE ACCOU
Page 47 and 48: 2.4 Depreciation and amortization (
Page 49 and 50: 4. Estimated amount of contracts re
Page 51 and 52: c) Value of imported and indigenous
Page 53 and 54: D. Balance Sheet Reconciliation 51

Annual Reports - Indraprastha Gas Limited

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