Indraprastha Gas

The Directors have pleasure in presenting the Ninth Annua! Report
 alongwith Audited Accounts of the Company for the year ended March
 31,2008.
 
 PHYSICAL PERFORMANCE
 
 During the year, the Company recorded sales as under:
 
                                              (Figures in SCM)
                                       For the year
 Product                        2007-2008         2006-2007
 
 Compressed
 Natural Gas (CNG)             504,621,981         452,646,979
 Piped Natural Gas
 (PNG)                          42,860,910          36,571,849
 Total                         547,482,891         489,218,828
 
 FINANCIAL RESULTS
                                                 (Rs. in Million)
                                                 For the  year
 ITEMS                                   2007-2008       2006-2007
 
 Net Sales & Other income                  7294.16         6243.00
 Profit before Depreciation & Tax          3234.72         2653.81
 Depreciation                               625.77          598.10
 Profit before tax                         2608.91         2055.62
 Provision for tax                          864.40          676.00
 Profit after tax                          1744.55         1379.60
 Profit brought forward from
 previous year                             2920.50         2170.2
 Profit available for appropriations       4665.05         3549.84
 Appropriations 
 Proposed dividend                          560.00         420.00
 Corporate dividend tax                      95.17          71.33
 Transferred to general reserve             174.45         137.96
 Profit carried forward                    3835.43        2920.50
                                           4665.05        3549.84
 
 FINANCIAL REVIEW
 
 The Company has been showing consistently good financial performance
 both in terms of turnover and profitability. Gross turnover increased
 by 14.5% from Rs.71 37.86 million in year 2006-07 to Rs 8169.27 million
 in year 2007-08. Profit After Tax also went up by 26.4% from Rs, 1.379.62 
 million in 2006-07 to Rs. 1744.55 million in 2007-08.
 
 DIVIDEND
 
 Your Directors are pleased to recommend higher dividend of 40% (Rs 4
 per share) as against 30% (Rs 3 per share) in the last year.The
 proposed dividend including corporate dividend tax would absorb
 Rs.655.17 million.
 
 PERFORMANCE HIGHLIGHTS
 
 CNG BUSINESS:
 
 Your Company further augmented its CNG distribution infrastructure
 during the year.The total number of CNG stations increased from 153 in
 March 2007 to 163 in March 2008, which included 69 mother stations, 46
 online stations,46 daughter booster stations and 2 daughter
 stations.The installed compression capscr.) went up from 20.18 Lakh
 Kg/day in March 2007 to 20.76 Lakh Kg/day in March 2008.  The estimated
 number of vehicles running on CNG in Delhi as on 31st March 2008 was
 more than 2,25,000 including 12,000 buses and 123,000 private vehicles.
 
 PNG BUSINESS:
 
 The Company has extended the Piped Natural Gas distribution
 infrastructure to the new areas in Delhi which include SaritaVihar,
 Jasola, Dwarka (Sector- I to 12), Rohini, Pitampura, Janakpuri, Maya
 Enclave, Saket, Hauz Khas, Paschim Vihar, Vikaspuri, Dilshad Garden,
 Mayur Vihar, Vasant Kunj, Pushp Vihar, Aram Bagh, Nivedita Kunj and
 VasantVihar.
 
 During 2008-09, the Company plans to extend its PNG distribution
 network to Shalimar Bagh, Vikaspuri, Meerabagh,AshokVihar, Dwarka
 (Sector- 13 to 19), GTB Enclave, Vivek Vihar, Yojna Vihar, Anand
 Niketan, Shanti Niketan, Defence Colony, Safdarjung Enclave, SDA.
 Kalkaji, President Estate and NDMC staff quarters besides providing
 connections to new customers in the existing network areas.
 
 As on 3Ist March 2008, the Company has provided PNG connections to over
 122,000 domestic and 300 commercial customers.
 
 R-LNG BUSINESS:
 
 The Company has been supplying Re-gassified Liquid Natural Gas (R-LNG)
 to 16 industrial consumers. Your Company is further exploring new gas
 supply sources for meeting the demand of this segment.
 
 FUTURE OUTLOOK
 
 NCT OF DELHI
 
 Your Company has drawn out plans to consolidate its presence in the NCT
 of Delhi by investing Rs. 1288 million during the financial year
 2008-09 for CNG expansion.
 
 CNG being an eco-friendly and economical fuel, a large number of
 private car manufacturers are introducing their CNG variants.There is a
 large-scale conversion of private cars into CNG mode. The recent
 increase in prices of petrol and diesel will give further impetus to
 CNG business.
 
 In view of forthcoming Commonwealth Games in 2010.a large number of
 high capacity buses and Radio Taxis running on CNG are expected to be
 added to the public transport fleet in the Capital for the convenience
 of visitors.
 
 Your Company has planned a large-scale expansion in PNG segment. A
 capital expenditure of Rs.633 million has been earmarked for PNG
 expansion in Delhi during the Financial Year 2008-09 to provide
 additional PNG connections to over 50,000 domestic households.
 
 EXPANSION PROJECTS IN NATIONAL CAPITAL REGION (NCR)
 
 The Company has planned capital investment of Rs.78l million for its
 expansion projects in the NCR towns of Noida, Greater Noida &
 Ghaziabad.
 
 The Company started project execution activities in the town of Noida
 in October 2007, after getting NOC from the UP Government. In Noida,
 steel pipeline of 12 kms has already been laid down and 2 CNG stations
 are expected to be operational by October, 2008 The Company has also
 laid 22 kms of steel pipeline in Greater Noida and 2 CNG stations are
 expected to be operational by December, 2008.  Besides, providing CNG,
 the Company has also made plans to start supply of PNG to households in
 Noida and Greater Noida.
 
 MOP&NG has allocated APM gas of 0.2 MMSCMD for the district of Gautam
 Budh Nagar, which will meet the gas requirement for the towns of Noida
 & Greater Noida.
 
 In Ghaziabad.your Company has been allotted 2 sites for CNG stations
 for which project execution activities shall commence after necessary
 Regulatory approvals. Your Company has also plans to supply CNG through
 retail outlets of Oil Marketing Companies (OMCs) in 2008-09.
 
 In Haryana.your Company has decided to go ahead with JV model for
 setting up City Gas Distribution Projects in the towns of Sonepat &
 Panipat. M/s.Siti Energy Limited has been identified as JV partner for
 these towns and work is planned to be started after getting necessary
 Regulatory approvals.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 Pursuant to the provisions of Section 2I7(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, 2008, 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
 under review;
 
 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, 2008 on a going concern basis.
 
 BOARD OF DIRECTORS
 
 Shri D. M. Spolia, nominee of Government of NCT of Delhi was appointed
 as Additional Director in place of Shri R.Chandramohan w.e.f.September
 20,2007.  Shri R. K. Verma, nominee of Government of NCT of Delhi was
 appointed as Additional Director in place of Shri D.M.Spolia w.e.f.
 March 26,2008.  Shri S. S. Rao and Shri S. Radhakrishnan retire by
 rotation at the ensuing Annual General Meeting and being eligible,
 offer themselves for reappointment.
 
 The Board takes this opportunity to place on record its appreciation
 for valuable contribution made by Shri R.  Chandramohan and Shri D. M.
 Spolia during their tenure as Board Members.
 
 AUDITORS
 
 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.
 
 CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 The information in accordance with the provisions of Section 217( I
 )(e) of the Companies Act, 1956 read with the Companies (Disclosure of
 Particulars in the Report of Board of Directors) Rules, 1988 is annexed
 hereto.
 
 CORPORATE GOVERNANCE
 
 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.
 
 HUMAN RESOURCES
 
 During the year your Company enjoyed harmonious and cordial human
 relations amongst all its employees. Your Company continued its HR
 efforts of providing developmental inputs to employees through training
 programmes to develop their knowledge, skills and attitudes.
 
 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.
 
 FIRE AND SAFETY
 
 Fire & Safety related issues are given top-most priority in your
 Company. Practical fire fighting training are imparted on a regular
 basis to the employees, DSMs, Station Operators, DTC Drivers and
 consumers of CNG and PNG at Rohini training centre, having facilities
 for live CNG and PNG gas fire modules. Mock drills at CNG stations are
 also carried out to prepare for any eventualities.
 
 External Safety Audit, Hazard & Risk assessment of CNG Stations and PNG
 installations are carried out by third parties and recommendations /
 observations are complied with.  It is a result of utmost safety
 concern followed in your Company that it has crossed 38 million
 man-hours without any reportable lost time accident.
 
 SOCIAL RESPONSIBILITY
 
 Your Company has been continuously working towards the environment
 clean-up through reduction in vehicular pollution by providing
 eco-friendly fuel to the public transport system as well as to the
 private vehicles in the
 
 National Capital Territory of Delhi. The contribution made by the
 Company has been recognized at various national & international forums.
 The Company is also providing cheaper environment friendly fuel to
 household consumers in the form of Piped Natural Gas (PNG) through
 pipelines and has constantly aimed for achieving improved customer
 services by supplying uninterrupted, economic and environment friendly
 fuel to its valued customers.
 
 During the year, as a part of Corporate Social Responsibility
 programme, your Company contributed to various NGOs working in the
 field of health and welfare.
 
 ACKNOWLEDGEMENTS
 
 Your Directors express their gratitude to the Ministry of Petroleum &
 Natural Gas,State Governments of NCT of Delhi & Uttar Pradesh and
 Promoter Companies (GAIL & BPCL) for their continuous patronage &
 support throughout the year.
 
 The Directors also acknowledge the support of all the Local
 Authorities, Bankers, Media, Station Operators & their
 employees,contractors,vendors and suppliers.
 
 The Directors place on record their deep appreciation towards IGLs
 valued customers for their continued cooperation & support and look
 forward to the continuance of this relationship in future also.  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
 
 sd/-                                                  sd/-
 Manmohan Singh                                     Om Narayan
 Director (Commercial)                              Managing Director
 
 Place: New Delhi
 Date: June 18,2008