The Directors have pleasure in presenting the Thirteenth Annual Report
alongwith Audited Accounts of the Company for the year ended March 31,
During the year, the Company recorded sales as under :
Figures in Million Standard Cubic Meters (mmscm)
Product For the Year %
2011-12 2010-11 Growth
Natural Gas (CNG) 937.55 817.76 14.6
Piped Natural Gas 282.45 179.89 57.0
Total 1220.00 997.65 22.3
Per day (mmscmd) 3.33 2.73
(Rs. in Crores)
ITEMS For the Year
Net Sales & Other Income 2525.34 1753.55
Depreciation & Tax 593.30 488.58
Depreciation 143.21 102.87
Profit before tax 450.09 385.71
Provision for tax 143.66 125.94
Profit after tax 306.43 259.77
Profit brought forward from
previous year 746.17 593.73
for appropriations 1052.60 853.50
Proposed dividend 70.00 70.00
Corporate dividend tax 11.35 11.35
Transferred to general
reserve 30.64 25.98
Profit carried forward 940.61 746.17
The Company has been showing consistently good financial performance
both in terms of turnover and profitability. During the year, gross
turnover of the Company increased by 43% from Rs. 1951.50 crores in
year 2010-11 to Rs. 2790.10 crores in the year 2011-12. Profit after
tax also went up by 18% from Rs. 259.77 crores in 2010-11 to Rs. 306.43
crores in 2011-12.
Your Directors are pleased to recommend dividend of 50% (Rs. 5 per
share) as paid in the last year. The proposed dividend including
corporate dividend tax would absorb Rs. 81.35 crores.
COMPRESSED NATURAL GAS BUSINESS
During the year, your Company augmented its CNG distribution
infrastructure by enhancing the capacity of existing stations and
adding new stations. The number of stations went up from 278 in March
2011 to 308 in March 2012, which included 258 stations in Delhi and 50
stations in National Capital Region (NCR). By capacity enhancement as
well as new stations, the installed compression capacity went up by
16.5% from 51.13 Lakhs Kg/day in March 2011 to 59.56 Lakhs Kg/day in
New concept of cluster buses took off in NCT of Delhi and 238 cluster
buses were operational in March 2012.
The estimated number of vehicles running on CNG in Delhi and NCR as on
31st March 2012 was over 5,50,000 including 17,000 buses and around
3,20,000 private vehicles.
PIPED NATURAL GAS BUSINESS
PNG - Domestic Connections
A major thrust has been given to the expansion of Piped Natural Gas
(PNG) network in Delhi and NCR i.e. Gautam Budh Nagar (Noida, Greater
Noida) and Ghaziabad.
Your Company has increased its steel pipeline network from 420 kms in
FY 2010-11 to 575 kms by laying additional 155 kms of Steel pipeline
during the FY 2011-12.
For PNG domestic connections, Delhi has been divided into 70 areas
(each area is equivalent to MLA constituency). The pipeline network is
already extended to 56 areas and work is in progress to extend the
network to the remaining areas. During the year, your Company has
extended the PNG network in various localities in Delhi, namely:
- North Delhi Rohini (Sectors 15-18, 20-25), B D Estate, Civil Lines,
Kamla Nagar, Roop Nagar, Shastri Nagar, Kalyan Nagar, Gulabi Bagh,
Nimri Colony, Timarpur, Mukherjee Nagar.
- South Delhi Vasant Kunj (remaining areas), East of Kailash, Vikram
Vihar National Park, Sheikh Sarai Ph-I, Green Park Extension, Saket
(remaining areas), Qutub Institutional Area, Shivalik, Geetanjali
Enclave, Navjeevan Vihar.
- West Delhi Dwarka (remaining areas), Nangloi, Bakarwala, Loknayak
Puram, Janakpuri (remaining areas), Vaishali (Dabri), Hari Nagar
- East Delhi East Guru Angad Nagar, Mayur Vihar Phase- III (C1&2,
B1-B8, D1&2), Vivek Vihar ITI Quarters, BSNL Quarters.
- Central Delhi Karol Bagh, Rajouri Garden, B-Block, Rajinder
Nagar(old &new), NDMC areas (remaining areas), Minto Road, Defence
Colony, Siddhartha Enclave.
In Noida, your Company during the year has extended the PNG supply to
Sectors- 11, 15-A, 17, 19, 20, 23, 26, 27, 30, 31, 36, 40, 41, 49,
55-60, 62, 63, 65, 67, 82 and 110.
In Greater Noida, your Company during the year has extended the PNG
supply to Sectors Omega-I, Zeta-I, II and Delta-I, II,III Chai,
Alpha-II, Sigma-I, II, III, Gamma-II.
In Ghaziabad, the PNG supply has been extended to Raj Nagar, Sanjay
Nagar, Kavi Nagar, Patel Nagar, Shastri Nagar, Nehru Nagar, Surya
Nagar, Chander Nagar, Ramprastha, Brij Vihar, Chiranjivi Vihar,
Avantika, Shalimar Garden, Rajender Nagar and Nandgram.
During the year, your Company provided 53,689 PNG connections in Delhi
& 34,231 PNG connections in NCR and the total number of connections
went up from 2,44,924 in March 2011 to 3,32,844 in March 2012. Addition
of 87920 domestic PNG connections is the highest addition in a
Financial Year in the history of the Company.
Your Company has increased its MDPE network from 4419 kms in FY 2010-11
to 6479 kms in FY 2011-12 by adding 2060 km MDPE pipelines.
PNG Commercial & Industrial
During the year, the Company gave a major thrust to boost the sales
volume of Commercial and Industrial customers. In Delhi and NCR, the
total number of commercial customers increased from 463 in March 2011
to 639 in March 2012 and industrial customers from 68 in March 2011 to
223 in March 2012. During the year 2011-12, the sales volume from
industrial & commercial customers grew by 71% over the previous year.
In Delhi, the Company has expanded its pipeline network to industrial
areas like Wazirpur, Jahangirpuri, Narela, Okhla, Nangloi, Mangolpuri,
Naraina, Kirti Nagar, Bawana, Mundka etc.
In Noida, your Company has expanded its pipeline network to industrial
areas of Sector 57, 58, 59, 63, 65 and 67. In Greater Noida, your
Company has expanded its pipeline network to Industrial areas of
Sectors of Omega, Chai, KP-V, Industrial Area-B & C. In Ghaziabad, your
Company has expanded its pipeline network to industrial area of Kavi
Nagar Industrial Area, Goldhar Industrial Area, Meerut Road Industrial
Area, Loni Road Industrial Area, Anand Industrial Area, Sahibabad
Industrial Area (Site-IV). Pipeline laying activities are underway in
the remaining major industrial areas in NCR which have huge demand
Petroleum and Natural Gas Regulatory Board (PNGRB) vide its order no.
TO/03/2012 dated 9th April 2012 determined the per unit network tariff
and compression charge for the CGD Network of IGL for Delhi, based on
submission of data by the Company in May 2009 and certain assumptions
taken by PNGRB in this regard. The tariffs determined by PNGRB were
much lower than the rates submitted by the Company.
Further, PNGRB made the determined tariffs applicable with
retrospective effect from 01st April 2008. In its order PNGRB stated
that the modalities and time frame for refund of differential Network
Tariff and Compression Charge shall be decided subsequently.
IGL filed a writ petition on 10th April 2012 against the order of PNGRB
challenging the vires of Network Tariff
Regulations and order dated 9th April 2012 before the Hon''ble Delhi
The Hon''ble Delhi High Court in its judgement delivered on 1st June
2012 has held that PNGRB is not empowered to fix or regulate maximum
retail price at which gas is to be sold by IGL to its consumers. The
judgement has also held that the Board is not empowered to fix any
component of Network Tariff and Compression Charge for any entity like
IGL having its own distribution network. The Hon''ble Court has quashed
PNGRB Order dated 9th April 2012.
Your Company has drawn out plans to further consolidate its presence in
Delhi and NCR by investing over Rs. 500 crores during the financial
In CNG, the new concept of Private Bus Cluster introduced by Government
of Delhi is expected to reach 1,000 buses by the end of 2012-13.
Decision of Delhi Government to introduce 45,000 new auto rickshaws
will add to volume in sales. The growth in private car owners segment
is expected to maintain the trend of previous years.
Your Company has aggressive plans to expand its pipeline infrastructure
to increase the coverage and penetration of the network. It shall be
the continuous endeavour to expand fast the customer base on both
industrial & commercial and domestic fronts.
The pipeline expansion plans have been aligned with development of
industrial belts in coming years in NCT of Delhi & NCR cities of Noida,
Greater Noida and Ghaziabad. Your Company has made plans to expand
pipeline network to take advantage of the recent notification of
regulations and guidelines for redevelopment of industrial clusters in
NCT of Delhi which will witness substantial improvement in their
infrastructure & facilities. Endeavours will be made to realize full
market potential by tapping gas volumes from industries, predominantly
Small Scale Industries, which will come up during the redevelopment
phase in notified clusters of NCT of Delhi.
Your Company also has plans to provide PNG supplies to upcoming
industrial belts along Delhi Mumbai Railway Freight Corridor in Dadri
Noida Ghaziabad Investment Zone and part of Ludhiana Kolkata freight
corridor which will pass through Ghaziabad District.
Your Company alongwith Delhi Jal Board (DJB) and a group Company of
Bharat Forge, M/s KG Renewables Limited has signed an MOU to set up a
Pilot Project for production of Compressed Natural Gas (CNG) out of
Sewage Treatment Plant (STP) situated at Keshopur, Delhi. The project
includes converting Sewage Gas generated from STP''s to usable Energy
which can be utilized for fueling CNG vehicles. Detailed Feasibility
Report (DFR) is under preparation to evaluate the techno-commercial
feasibility of the project.
Your Company has taken initiatives for Disaster Recovery and Business
Continuity planning. This Project is in advance phase and scheduled to
be completed during the financial year 2012-13. This will help your
Company to continue its business during and after any disaster.
Your Company has implemented customer portal which includes CRM
(Customer Relationship Management) functionalities last year. This
portal extends facilities such as online PNG bill viewing & payment,
complaint logging etc. as self service to customers. This system also
provides common platform for IGL employees, customers and third parties
to work collaboratively and achieve greater customer satisfaction. Your
Company is continuously making efforts to improve and reap more
benefits from this system.
Apart from this, your Company has also taken initiative for technology
enhancement at primary data centre alongwith up-gradation of SAP (ERP
System). An initiative has also been taken for advanced surveillance of
GIS (Geographical Information System) Project which has been taken up
for effective Asset Management, Network Planning and Operations
Management is in advance phase and is scheduled to be completed during
the financial year 2012-13.
During the year, your Company enjoyed harmonious and cordial human
relations among all its employees. Your Company inducted employees at
entry level from various premier technical institutes / colleges to
infuse new talent in the workforce of the Company. There has been a
continuous emphasis on building capabilities & learning of all
employees aimed at better organizational performance.
There was no employee in the Company drawing remuneration more than the
limits prescribed under Section 217 (2A) of the Companies Act, 1956
read with the Companies (Particulars of Employees) Rules, 1975.
HEALTH SAFETY AND ENVIRONMENT (HSE)
Your Company has always accorded top most priority to Fire and Safety
related issues. To maintain a good safety culture throughout the
Company, continuous efforts have been made.
Regular training is being imparted to the employees, contract staff at
CNG Stations, DTC Drivers and consumers of CNG and PNG. To create
safety awareness and impart training to all category of consumers, a
dedicated group of trainers with fully equipped training van is
deployed which conducts safety clinics alongwith practical
For Safety of CNG vehicles, free safety camps are periodically
organized where inspection of CNG kits is undertaken. Safety inspection
of CNG vehicles is also done periodically on random basis to check
compliances of safety standards and to prevent unsafe conditions
arising out of gas leakage from the CNG kits.
To add a cutting edge to the safety at CNG Stations, dry chemical
powder based fire protection systems for roof mounted cascades have
been successfully installed at various CNG Stations.
In line with Company''s HSE policy, Safety Audit, HAZOP & Risk
Assessment of CNG Stations and PNG installations are carried out by
third parties. The onsite emergency action plan is regularly rehearsed
and updated. Emergency Control Centres have already been established at
strategic locations. Emergency response vehicles are under
procurement, which shall be stationed at emergency control centres,
manned round the clock to respond fast to any gas leak or emergency
Your Company has formulated a CSR policy under which 1% of Profit After
Tax (PAT) each year is earmarked for social causes. Thrust areas for
CSR programme have been identified as Health & Environment, Education,
and Care & Empowerment of underprivileged. The Company is supporting
meritorious students form underprivileged strata of society for IIT
coaching through a scheme run by an NGO. It is a matter of satisfaction
that all the 10 children who were sponsored by the Company qualified in
the IIT JEE examination 2012. The Company has also extended help to DTC
by providing equipment and facilities aimed at inculcating safe driving
habits among the drivers.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the provisions of Section 217(2AA) of the Companies Act,
1956, your Directors hereby confirm that:
i) in the preparation of Annual Accounts for the financial year ended
March 31, 2012, the applicable accounting standards have been followed;
ii) they have selected such accounting policies and applied them
consistently except where otherwise stated in the Notes to Accounts and
made judgments and estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company at the
end of the financial year and of the profit of the Company for the year
iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; and
iv) they have prepared the Annual Accounts for the Financial Year ended
31st March, 2012 on a going concern basis.
BOARD OF DIRECTORS
Shri S. Venkatraman, nominee of GAIL was appointed as Chairman of the
Board in place of Shri B. C. Tripathi w.e.f. October 21, 2011.
Shri M. Ravindran, nominee of GAIL (India) Ltd. was appointed as
Managing Director in place of Shri Rajesh Vedvyas w.e.f. October 27,
Shri R. Chandra Mohan, nominee of Government of NCT of Delhi was
appointed as Additional Director in place of Shri R. K. Verma w.e.f.
October 31, 2011.
Shri Manmohan Singh, nominee of BPCL was re-appointed as Director
(Commercial) for a period of one year from December 1, 2011 to November
Shri S. S. Rao, retires by rotation at the ensuring Annual General
Meeting and being eligible, offers himself for re-appointment.
The Board takes this opportunity to place on record its appreciation
for valuable contribution made by Shri B.C. Tripathi, Shri Rajesh
Vedvyas and Shri R.K. Verma, during their tenure as Board Members.
M/s. Deloitte Haskins & Sells, Chartered Accountants, Auditors of the
Company retire at the ensuing Annual General Meeting and being
eligible, offers themselves for reappointment.
Pursuant to the directions of the Central Government for audit of cost
accounts, your Company appointed M/s. Chandra Wadhwa & Co as Cost
Auditors for the financial year 2011-12.
As per the requirements of the Clause 49 of the Listing Agreement with
the Stock Exchanges a detailed Report on Corporate Governance is
annexed as part of the Annual Report.
CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information in accordance with the provisions of Section 217(1)(e)
of the Companies Act, 1956 read with the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 is annexed
- The Company was finalist in the category of Industry Leadership at
Platts Global Energy Awards 2011
- Received Special Jury Award for Contribution to the Society in
India Pride Awards 2011
- Declared as the winner in the category of Urban Infrastructure at the
Infrastructure Excellence Awards 2012.
Your Directors express their gratitude to the Ministry of Petroleum &
Natural Gas, State Governments of NCT of Delhi & Uttar Pradesh,
Petroleum and Natural Gas Regulatory Board, and Promoter Companies
(GAIL & BPCL) for their continuous support throughout the year.
The Directors also acknowledge the support of all Statutory & Local
Authorities, Bankers, Media, Station Operators & their employees,
contractors, vendors and suppliers.
The Directors place on record their deep appreciation towards IGL''s
valued customers for their continued co- operation & support and look
forward to the continuance of this relationship in future also.
Shri Rajesh Vedvyas, then Managing Director receiving ''Award of
Excellence'' on behalf of IGL for being a finalist in the category of
''Industry Leadership'' in Platts Global Energy Awards 2011.
The Directors wish to express their gratitude to all the shareholders
for their continued trust and support.
The Directors also sincerely acknowledge the contributions made by all
the employees of IGL for their dedicated services to the Company.
For and on behalf of Board of Directors
Manmohan Singh M. Ravindran
Director (Commercial) Managing Director
Place: New Delhi
Date : June 21, 2012