(A Joint Venture of GAIL (India) Ltd., BPCL & Govt. of NCT of Delhi)
ND/IGLICS/AR/2019-2020 August 29, 2019
Thanking you,
Yours sincerely,
for I draprastha Gas Limited,
(S. ~ . Jain)
Company Secretary & Compliance Officer
IGL Bhawan, Plot No.4, Community Centre, R.K. Puram, Sector - 9, New Delhi-110 022
Phone: 46074607 Fax: 26171863 Website: www.iglonline.net
CIN: L23201DL1998PLC097614
An 1509001 :2008,15014001 : 2004, OH5A5 18001 : 2007 Certified Organisation
Shaping the
Future of Energy
G R E E N . S M A R T. A F F O R D A B L E
02 82
Chairman’s Message Balance Sheet
04 83 Vision
Financial Highlights Statement of Profit and Loss India’s leading clean energy
solution provider through
05 84
Board of Directors Statement of Changes in Equity
customer centricity, innovative
technology and diversification,
06 85 with international presence.
Directors’ Report Cash Flow Statement
46 87
Report on Corporate Governance Summary of Significant Accounting
Policies and other Explanatory
59 Information
Management Discussion and
Analysis
128
62 Comments of C&AG – Supplementary
Audit
Mission
Business Responsibility Report Committed to provide
72 129 safe, reliable and clean
Independent Auditor’s Report Consolidated Financial Statements energy solutions to improve
quality of life and enhance
stakeholders’ value.
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 bases and actual To view the report online log on to
results can be material, depending on the circumstances.
www.iglonline.net
CHAIRMAN’S MESSAGE
importance to its
The financial year 2018-19 was another reviewing its corporate strategy for
year of robust growth both in financial sustainable future growth.
capital who are 26.9% increasing from Rs. 4994 Crores area of operations by entering into
new geographical areas. The Company
to Rs. 6337 Crores in the previous year.
responsible for Profit after tax also showed an increase has already started supply of CNG
and PNG domestic in earmarked area
the growth of of 17.3% from Rs. 671 Crores in FY2018
to Rs. 787 Crores in FY2019. Both gross of Gurugram and Karnal districts.
02
Indraprastha Gas Limited | 20th Annual Report 2018-19
it has started working in association of NCT of Delhi. Regular trainings are Government of India, Petroleum and
with Indian Oil Corporation to set up imparted to drivers, PNG customers, Natural Gas Regulatory Board and all
a H-CNG station as a pilot project, employees, contractual staff and other departments of the Central and State
first of its kind in India. The Company stakeholders on regular basis. It is a governments, our valued Customers,
has entered into memorandum of matter of pride that your Company has our promoter companies (GAIL & BPCL),
understandings with reputed parties crossed 161 Million Man Hours accident all the authorities and agencies for their
for promoting the usage of gas in home free till 31st March, 2019. The Company unstinted support to your Company.
appliances in households, conversion of has won various prestigious safety
awards from different authorities in I, along with my colleagues on the Board,
diesel gensets into gas based generators
recognition of its high safety standards. would also like to thank each and every
and to provide charging facilities to
employee of IGL for all the hard work put
e-vehicles. As a backward integration,
The Company gives due importance in by them.
the Company has a plan to set up a gas
to its human resource capital who
meter manufacturing unit in India. The Finally, I would like to thank each one of
are responsible for the growth of the
Company is also looking to leverage its you from IGL’s family of Shareowners, for
Company. The Company keeps reviewing
expertise and execution capabilities the confidence and trust reposed in us.
employee related welfare schemes from
by providing consultancy services for With your support and blessings, I am
time to time to motivate the employees.
setting up CGD projects in India and confident that we shall continue to strive
The Company gives due importance to
abroad. Optimisation of overall cost and to achieve new milestones in the coming
training and development of employees
organisational transformation are other years.
to upgrade their skills and expertise in
areas in which studies are underway. All
various areas. During the year, a number
these initiatives will add to the growth of team building, skill developments, and
and business expansion of the Company. Warm Regards,
sports events were conducted by your
The Company has earmarked total capex Company. The Company recognizes and
of Rs. 1170 Crores for FY2019-20. appreciates the contribution of all its
employees in its growth path.
Your Company has strong belief in
Customer centric approach. It is striving The Company has been taking various CSR
for excellence in customer services by Gajendra Singh
activities with focus on health, education,
Chairman
making continuous efforts to improve its environment and empowerment of
services. The Company has upgraded its women & underprivileged of the society.
customer app – IGL connect by adding During FY2019, CSR programmes such
new features and further strengthening as IGL Swasth Saarthi, Building Bonds
its customer relationship management through Gender Sensitisation, coaching
(CRM) module in SAP. It is promoting for engineering entrance examination to
digital payment by providing various underprivileged students, Self Defence
options to its customers. The Company training for school girls, education
has been providing facilities such as programmes at municipal schools, Skill
self-billing , spot billing, prepaid cards, Development for rural women and
automatic meter reading and various underprivileged/ unemployed youth
incentive schemes for acquiring new etc. were undertaken after conducting
PNG Customers. impact assessment study. The Company
has won a number of awards for its
Your Company has always accorded top various CSR projects/programmes at
most priority to Safety related issues. In different forums.
recent past, the Company participated in
the mock drill of disaster management On behalf of the Board of Directors,
exercise carried out by government I take this opportunity to thank the
03
FINANCIAL HIGHLIGHTS
Gross Turnover (in Rs. Crores) Profit after Tax (in Rs. Crores)
6337 787
671
4994
571
4205
4049 4052
438
419
FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19
120 5.91
5.18
100
4.59
85
4.00
3.84
60 60
FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19
04
Indraprastha Gas Limited | 20th Annual Report 2018-19
BOARD OF DIRECTORS
Bankers
Statutory Auditors
Cost Auditors
Secretarial Auditors
Registered Office
CIN: L23201DL1998PLC097614
05
Directors’ Report
To
The Members
Your Directors have pleasure in presenting the Twentieth Annual Report and the Company’s audited financial statements for
the Financial Year ended March 31, 2019.
Physical Performance
Shri Dharmendra Pradhan, Hon’ble Union Minister for Petroleum & Natural Gas and Steel, launching the Digital Customer Initiatives of Indraprastha Gas
Limited in the presence of Shri B.C. Tripathi, then Chairman & Managing Director, GAIL (India) Limited; Shri Satpal Garg, Member, Petroleum and Natural
Gas Regulatory Board (PNGRB) and Shri E.S. Ranganathan, Managing Director, Indraprastha Gas Limited.
06
Indraprastha Gas Limited | 20th Annual Report 2018-19
Financial Results
The Company’s financial performance for the year ended March 31, 2019 is summarised below:
(Rs. in Crores)
Items For the Year For the Year
31 March 2019 31 March 2018
Net Sales & Other Income 5910.99 4635.52
Profit before Depreciation & Tax 1401.08 1213.78
Depreciation 201.07 181.29
Profit before tax 1200.01 1032.49
Provision for tax 413.34 361.72
Profit after tax 786.67 670.77
Other comprehensive income (0.94) (0.18)
Total comprehensive income 785.73 670.59
Retained Earnings – opening balance 3069.40 2483.06
Add : Profit for the period 786.67 670.77
Profit available for appropriations 3856.07 3153.83
Appropriations:
Dividends including Interim Dividend 140.00 70.00
Corporate dividend tax 28.78 14.25
Transferred to general reserve - -
Other comprehensive income recognised directly in retained earnings (0.94) (0.18)
Retained Earnings – closing balance 3686.35 3069.40
Financial Reviews
During the year, the gross turnover of the Company increased from Rs. 4993.78 Crores in 2017-18 to Rs. 6336.66 Crores in
2018-19 showing an increase of 26.89%.
Shri B.C. Tripathi, then Chairman & Managing Director, GAIL (India) Limited inaugurating CGD pavilion at PETROTECH 2019 in the presence of Shri
Gajendra Singh, Director (Marketing), GAIL (India) Limited & Chairman, Indraprastha Gas Limited; Shri E.S. Ranganathan, Managing Director, Indraprastha
Gas Limited; and senior officials from GAIL and IGL.
07
The Profit After Tax (PAT) increased by 17.28% from The Company has started setting up of CNG stations under
Rs. 670.77 Crores in 2017-18 to Rs. 786.67 Crores in 2018-19. Dealer Owned Dealer Operated (DODO) model considering
the constraint of land availability from government land
The Company has prepared the Consolidated Financial owning agencies. This would facilitate increase in number of
Statements also which includes the Company’s share of profit CNG stations to provide comfortable fuelling experience to
in its Associates combined on an equity method in accordance its customers.
with IndAS 28 - “Investment in Associates and Joint Ventures”.
The consolidated PAT during FY 2018-19 is Rs. 842.10 Crores The Company had introduced prepaid card for its CNG
against Rs. 721.72 Crores in the previous year. customers in order to promote digital payments. Till now
more than 70,000 cards are under circulation catering
to 100,000 vehicles. The Company has tied up with taxi
Dividend
aggregator companies like Meru, Burdy cab, Yorker cab, etc.
Your Directors are pleased to recommend a dividend of to further promote the pre-paid cards.
120% (Rs. 2.40 per share). The proposed dividend, including
Company has conducted joint promotion activities with Ford
corporate dividend tax, would absorb Rs. 202.53 Crores.
and Hyundai at the CNG stations. Due to constant follow up
The Company has Dividend Distribution Policy in terms with the car manufacturers, they have launched Company
of the requirement of SEBI (Listing Obligations Disclosure fitted CNG variants, which are becoming very popular among
Requirements) Regulations, 2015. The Policy is available on the customers and thus boosting the sales of CNG.
the website of the Company under the weblink: https://www.
Piped Natural Gas Business
iglonline.net/5000_media/Dividend-Distribution-Policy.pdf
PNG - Domestic Connections
Performance Highlights
PNG continued to be focus area of the Company during
Compressed Natural Gas Business FY 2018-19. Total more than 2.10 Lakh new connections were
provided which is the highest number of connections in a
During the year, your Company showed growth in CNG single financial year in the history of the Company. In order to
business in double digit i.e.13% besides augmenting its CNG create the PNG awareness further amongst target customers,
infrastructure in Delhi and NCR. The Company achieved a a successful integrated campaign was run during the year.
new milestone by setting up 500th CNG station in FY 2018-19.
The Company was catering to 10.7 Lakhs vehicles including
7.4 Lakhs private cars in Delhi & NCR.
Shri E.S. Ranganathan, Managing Director, Indraprastha Gas Limited Shri E.S. Ranganathan, Managing Director, Indraprastha Gas Limited
inaugurating the supply of CNG & PNG at Karnal. inaugurating 1st DODO model CNG station in NCT of Delhi.
08
Indraprastha Gas Limited | 20th Annual Report 2018-19
Your Company increased its steel pipeline network from 919 achieved a growth of around 27% in sales volume in Industrial
kms in FY 2017-18 to 1006 kms in FY 2018-19 and its MDPE segment & around 13% in Commercial segment during
network from 10,754 kms to 12,022 kms in FY 2018-19. Financial Year 2018-19. In terms of number of customers,
the industrial customer base increased from 1224 in March,
The Company has taken many new initiatives like digital 2018 to 1770 in March, 2019 and Commercial customer base
marketing, 360-degree PNG publicity drive and introduction increased from 2,205 in March, 2018 to 2,506 in March, 2019.
of attractive customer schemes such as lucky draw, one-time
special discount, EMI etc. to increase the PNG customer base. In Delhi, Delhi Pollution Control Committee (DPCC) has
banned all other industrial fuels except PNG and has advised
Company is also making concentrated efforts to reach all industrial customers (wherever PNG is available) to switch
congested areas which could not be tapped earlier due to over to PNG. Your Company has efficiently co-ordinated
technical constraints/challenges. During the year, your to implement the mandate given by DPCC by facilitating
Company started the supply of domestic PNG in Defence industrial customers for smooth switchover to PNG supply.
establishment, which has opened another door to increase In order to curb down air-pollution levels and to increase
the PNG customer base. natural gas volumes, your Company has targeted diesel
Genset segment, wherein PNG would replace use of diesel
Your Company has customer centric approach and believes
in Gensets. Similarly, with the ban of Furnace Oil (FO) and
in providing best quality services to its customers. During the
Petcoke in NCR by Hon’ble Supreme Court, PNG is emerging
year, the Company strengthened its Customer Relationship
as the key energy source for Commercial & Industrial users,
Management (CRM) and other IT applications to provide better
offering immense opportunities for growth.
services to its customers. Special focus has been made to
strengthen the meter reading & billing process, which has led
to the enhanced customer satisfaction. Associate Companies
The Company had total 11.02 Lakh connections in Delhi & Central U. P. Gas Limited (CUGL)
NCR as on March 31, 2019.
CUGL is engaged in City Gas Distribution in the cities of Kanpur,
PNG – Commercial & Industrial Bareilly, Jhansi and Unnao in Uttar Pradesh. Your Company
holds 50% of the paid-up equity share capital of CUGL.
During the financial year, your Company continued its thrust
on the Commercial & Industrial segment which is one of the CUGL achieved a gross turnover of Rs. 328.03 Crores and
potential growth areas in the coming years. Your Company Profit After Tax of Rs. 52.11 Crores for the financial year ended
March 31, 2019.
Shri Anandi Lal Vaishnav, Additional District Magistrate, Ajmer announcing laying of CGD infrastructure by IGL in Ajmer, Pali & Rajsamand in the presence
of senior officials from IGL, district administration and media persons.
09
Maharashtra Natural Gas Limited (MNGL)
Future Outlook
10
Indraprastha Gas Limited | 20th Annual Report 2018-19
Dr. Bhure Lal, IAS (Retd.) Chairman, Environment Pollution (Prevention & Control) Authority (EPCA), laid the foundation stone of first HCNG station in the
presence of Ms. Sunita Narain, Member, EPCA; Shri Sanjiv Singh, Chairman, Indian Oil Corporation Limited; Shri Gajendra Singh, Director (Marketing),
GAIL (India) Limited & Chairman, Indraprastha Gas Limited; Dr. SSV Ramakumar, Director (R&D), IOCL; Shri Manoj Kumar, IAS, Chairman, Delhi Transport
Corporation (DTC); and Shri E.S.Ranganathan, Managing Director, Indraprastha Gas Limited.
The Company is also looking for expanding its operation Your Company has introduced prepaid meters which has not
through merger or acquisition of stakes in other CGD only ensured hassle free billing of customers but also enabled
Companies in the country. convenient revenue collection. The Company has launched
prepaid meter based billing for all the new geographical
Your Company has also entered into various Memorandum areas recently awarded to IGL in 9th and 10th round CGD
of Understandings (MoUs) with various parties for setting bidding. Your Company has also performed integration
up of LNG/LCNG stations, conversion of diesel gensets into through NIC to carry out automatic transfer of ownership of
gas gensets and providing charging facilities for electrical PNG connection during property registration at the revenue
vehicles at CNG stations. All these initiatives would add to department (Delhi Govt.).
the future growth of the Company.
In the CNG segment, your Company has explored ways
The Company has earmarked Rs. 1170 Crores for FY 2019-20 to overcome problem of long queues at CNG station and
for capital expenditure. went ahead with implementing an app based CNG queue
management solution, which is available to customers on IGL
Information Technology CONNECT App. Customers can not only utilize this app for
locating nearest CNG station but can also choose the station
Your Company has remained committed towards keeping with minimum waiting time which is displayed against each
customer services on priority and delivering world class of these stations. Your Company has developed new IGL
services to its customers through latest technology enabled Safety Work Permit system (IGL-SWP) app for Fire & Safety
service platform and IT infrastructure. Your Company has (F&S) department to automate the process of issuing work
added a plethora of service options in the existing customer permits to carry out activities requiring clearance from F&S.
app – IGL CONNECT with a new and refreshing user interface,
advanced features including refer & win scheme and self- In order to provide more and better means of connecting with
billing facility etc. to ensures hassle free and convenient IGL customers, the Company has extended another medium
billing and also reducing the manual efforts of meter reader. to reach customer complaints on social media by introducing
Your Company has also introduced spot billing facility to “Social CRM” through which customer can conveniently reach
optimize the meter reading and billing process conveniently IGL for their complaints, requests, grievances and suggestions.
and concurrently on the spot at customer’s location by meter
The Company has strengthened its core IT infrastructure which
reader.
includes implementing CISCO’s DNS solution as a measure of
11
strengthening web security. Your Company has also migrated
its existing disaster location site from tier-3 data centre in Pune
to CtrlS data centre in Bangalore which is tier 4 data centre
along with conducting a successful data recovery drill.
Human Resources
competitive and aligned with industry practices. Organization To create safety awareness, IGL has conducted sessions on
transformation initiative is also underway. Safety Management System in Natural Gas distribution for
various CGD Companies and statutory authorities. Safety
Learning and development of employees form an integral
training is regularly imparted to the employees, contract
part of the Company’s Policy towards accomplishing
staff, Safety Awareness programs are conducted regularly
organizational goal. During the year, our employees
for consumers of CNG and PNG through safety clinics.
were provided trainings viz. Executive Diploma in Project
Management (EDPM) and Team Building Exercises. With new Emergency Response Vehicles (ERVs) placed at
new GA’s which are manned round the clock to respond fast
During the year, employees were encouraged to participate in
to any gas leak or emergency situation, the safety system
various sports events viz IGL Cricket Tournament, Delhi Half
and emergency plan has been further strengthened. Mock
Marathon, Cyclothan Events, Yoga Sessions, Brahmakumari
drills are carried out regularly to check preparedness to
Workshop to take care of employee’s health & fitness.
control emergencies and this year, IGL participated in Level
The Company also inducted various young professionals at
entry level as well as junior management level to infuse talent
in the professional arena. The comprehensive class room as
well as on-site Induction Training has also been imparted to
new GETs. In addition, GETs were imparted training in Smart
Learning Transform System (SLTS) through online mode.
IGL has rolled out app based Safety Work Permit System
for CNG and PNG sites which is first of its kind in any CGD
companies and helps in improving real time monitoring of
work sites. In line with Company’s HSE policy, Safety Audits
and other statutory compliances are done to ensure safety at Conducting of Fire & Safety training to the residents of a residential colony
all aspects of IGL’s operations. at New Delhi.
12
Indraprastha Gas Limited | 20th Annual Report 2018-19
3 Emergency Mock drill conducted by National Disaster Considering the ever growing demand for skilled manpower
Management Authority. Also, Emergency Response & across sectors as a result of ‘Make in India’ programme,
Disaster Management Planning (ERDMP) document of IGL your Company is contributing towards Skill Development
got reaccredited by PNGRB approved third part agency. programmes for unemployed youth, in the fields of gas
plumbing and welding, by providing technical oriented
Your Company has crossed 161 Million Man Hours accident
quality training. Your Company has set up a Gas Plumbing
free till 31st March 2019. This milestone achievement is a
Training Centre in a government run ITI and is running a
result of hard work of all the individuals working directly and
special module for students to provide them specialised
indirectly for the Company.
skills related to gas plumbing. Through other programmes
Your Company has been conferred Safety Innovation Award being run by NGOs, your Company is also providing skill
by Institute of Engineers and Certificate of Appreciation from development training to several underprivileged youths
National Safety Council to recognize the excellence in the to enhance employability in multiple fields such as gas
field of Fire & Safety management during FY 2018-19. plumbing, mobile phone hardware repair technician, CCTV
installation technician, assistant beauty therapist, home
appliances technician, automotive service technician &
Corporate Social Responsibility
tailoring at Delhi, Ghaziabad and Rewari.
Your Company is fully conscious of its Corporate Social
Your Company continues to be one of the stakeholders of
Responsibility (CSR). In addition to carrying forward various
Road Safety Cell of Delhi Traffic Police and actively supports
CSR projects started in the earlier year, many new ones were
all Road Safety Campaigns of Delhi Traffic Police.
also initiated in FY 2018-19.
The annual report on CSR activities in accordance with the
Your Company has strategically aligned many of its CSR
Companies (Corporate Social Responsibility Policy) Rules,
activities to create value for the society. Your Company
2014, is appended as Annexure 2 to this report.
has identified health, education, empowerment of
underprivileged and skill development as its major focus
Your Company received following awards for its CSR activities
areas, on which most of the CSR programmes are targeted.
during FY 2018-19:
The Company realizes that good health of public transport
drivers is paramount to ensure safety on the roads.
Therefore, your Company is carrying forward ‘IGL Swasth
Saarthi’ – a comprehensive health management programme
for auto and taxi drivers in Delhi and NCR, wherein a
series of comprehensive Health check-up camps and Non
Communicable Diseases (NCD) camps are being organized
at various CNG stations. Further, a group accident insurance
cover is being provided to all drivers of CNG run public
transport in the region under ‘IGL Suraksha Yojna’.
13
1. CSR Community Initiative Awards for IGL Swasth Saarthi Directors
and Self Defence training programmes at New Delhi.
Shri S. Ramesh ceased to be a Director & Chairman of the
2. CSR Health Impact Awards 2018 for IGL Swasth Saarthi Company w.e.f. September 24, 2018 due to his untimely
programme at New Delhi. demise. Shri Arun Kumar Singh, nominee of Bharat
Petroleum Corporation Limited (BPCL) was appointed as
3. Asia’s best CSR Leadership Awards for categories of
Chairman w.e.f. October 1, 2018.
Women Empowerment and Innovation in CSR practices
at Singapore. Shri S. S. Rao, Prof. V. Ranganathan and Shri Santosh
Kumar Bajpai ceased to be Directors of the Company w.e.f.
4. CSR Times Awards 2018 organized at New Delhi.
October 16, 2018.
5. Social Imprints - CSR Awards & Summit 2019 for Women
Shri Gajendra Singh, nominee of Gail (India) Limited (GAIL),
Empowerment organized at New Delhi.
was appointed as Chairman w.e.f. January 14, 2019 and Shri
6. Social and Business Enterprise Responsible Awards Arun Kumar Singh ceased to be director of the Company.
organized by SABERA for IGL Swasth Saarthi Programme
Shri R. P. Natekar, nominee of BPCL, was appointed as an
at New Delhi.
Additional Director of the Company w.e.f. January 14, 2019.
7. CSR Leadership award under the category Conservation, Shri S. Bairagi, nominee of GAIL ceased to be Director w.e.f.
Pollution Control and Clean Environment & Resources January 14, 2019.
held at New Delhi.
Smt. Saroj Bala, Dr. A. K. Ambasht and Shri R. S. Sahoo were
8. Award for Gender Sensitization CSR programme at appointed as Additional and Independent Directors of the
Dainik Jagran CSR awards 2019 at New Delhi. Company w.e.f. February 11, 2019.
Pursuant to the provisions of Section 134 (5) of the Companies Shri R. N. Misra and Shri Deepak Mishra were appointed as
Act, 2013, your Directors hereby confirm that: Additional and Independent Directors of the Company w.e.f.
June 11, 2019 and June 13, 2019, respectively.
i. In the preparation of Annual Accounts for the financial
year ended March 31, 2019, the applicable accounting The proposals for appointment of Smt. Saroj Bala, Dr. A. K.
standards have been followed; Ambasht, Shri R. S. Sahoo, Shri R.N. Misra and Shri Deepak
Mishra as Independent Directors of the Company are being
ii. they have selected such accounting policies and applied
placed before the shareholders for approval in the ensuing
them consistently except where otherwise stated in the
Annual General Meeting of the Company.
Notes to Accounts and made judgments and estimates
that are reasonable and prudent so as to give a true and Shri Rajeev Verma, nominee of Government of NCT of Delhi,
fair view of the state of affairs of the Company at the end was appointed as an Additional Director of the Company
of the financial year and of the profit of the Company for w.e.f. June 21, 2019 in place of Smt Varsha Joshi who ceased
that period; to be a Director w.e.f. May 23, 2019.
iii. They have taken proper and sufficient care for the
Shri Amit Garg, nominee of BPCL, was appointed as Director
maintenance of adequate accounting records in
(Commercial) w.e.f. July 25, 2019 in place of Shri Rajiv Sikka
accordance with the provisions of the Companies Act,
who ceased to be a Director w.e.f. July 2, 2019.
2013 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; The Board takes this opportunity to place on record
iv. They have prepared the Annual Accounts for the Financial its appreciation for valuable contribution made by
Year ended March 31, 2019 on a going concern basis; Shri S. Ramesh, Shri Arun Kumar Singh, Shri Rajiv Sikka,
Shri S. Bairagi, Shri Santosh Kumar, Prof. V Ranganathan,
v. They have laid down internal financial controls to be Shri S. S. Rao, Shri Raghu Nayyar, Dr. Sudha Sharma and
followed by the Company and that such internal financial Smt. Varsha Joshi during their tenure as the Directors of the
controls are adequate and were operating effectively; and Company.
vi. They had devised proper systems to ensure compliance The Company has received declarations from all the
with the provisions of all applicable laws and that such Independent Directors of the Company confirming that
systems were adequate and operating effectively.
14
Indraprastha Gas Limited | 20th Annual Report 2018-19
Shri E.S. Ranganathan, Managing Director, Indraprastha Gas Limited presenting dividend cheque for FY 2017-18 to Shri Anil Baijal, Hon’ble Lieutenant
Governor of NCT of Delhi, in presence of senior IGL officials.
15
Deposits Related Party Transactions
During the financial year 2018-19, your Company has not Policy on materiality of Related Party Transactions and on
accepted any deposit within the meaning of Sections 73 dealing with Related Party Transactions has been disclosed
and 74 of the Companies Act, 2013 read together with the on the website of the Company at: - https://www.iglonline.net/
Companies (Acceptance of Deposits) Rules, 2014. english/5000_media/About_us/Related-Party-Policy.pdf
For the year 2018-19, your Company has not transferred any As per the requirement of The Sexual Harassment of Women
amount to the general reserve of the Company. at Workplace (Prevention, Prohibition & Redressal) Act, 2013
and Rules made thereunder, your Company has constituted
Number of Meetings of the Board and Audit Internal Complaints Committee (ICC). During the financial year
Committee 2018-19, no complaint with allegation of sexual harassment
was received by the Company.
The details of the number of meetings of the Board and
Audit Committee held during the financial year ended March
31, 2019 and composition of Audit Committee are given in
Corporate Governance Report.
Shri E.S. Ranganathan, Managing Director, Indraprastha Gas Limited presenting dividend cheque for FY 2017-18 to Shri B.C. Tripathi, then Chairman &
Managing Director, GAIL (India) Limited in the presence of senior officials from IGL and GAIL.
16
Indraprastha Gas Limited | 20th Annual Report 2018-19
Risk Management and Internal Financial Control Company Secretaries, Noida, as its Secretarial Auditors
Adequacy to conduct the Secretarial Audit of the Company for the
financial year 2018-19. The Report of Secretarial Auditor for
Your Company has Risk Management System in place the FY 2018-19 is appended as Annexure 3 to this report.
including the Risk Policy & identification of the Risks which
are reviewed periodically. The Company has also constituted Remarks referred to in the Secretarial Auditors’ Report for
Risk Management Committee w.e.f. April 1, 2019 as per the FY 2018-19 of M/s V. K. Sharma & Co., Practicing Company
requirement of the Listing Regulations. Secretaries are self-explanatory and do not call for any
further comments.
Your Company has laid down a set of standards, processes
and structure for internal financial control across the
organization and ensures that the same are adequate and
Disclosures Regarding Remuneration
operating effectively. Disclosures pertaining to remuneration and other
details as required under Section 197(12) of the
Vigil Mechanism Companies Act, 2013 read with Rule 5(1) and 5(2) of
the Companies (Appointment and Remuneration of
The Company has a Whistle Blower Policy as part of the vigil Managerial Personnel) Rules, 2014 is appended as
mechanism, which provides a platform to the employees, Annexure 4 to this report.
directors, vendors and suppliers of the Company to come
forward and raise their genuine concerns without any fear
of retaliation and victimization. The Company has engaged
Extract of Annual Return
an independent third party service provider to manage the Extract of Annual Return of the Company is appended as
operations of the whistle-blower platform. The details of Annexure 5 to this report.
the Whistle Blower Policy are available on the website of the
Company www.iglonline.net. Besides Whistle Blower Policy,
the Company has also framed vigil mechanism under which Statutory Auditors
the stakeholders can lodge their complaint(s) to Chief Ethics
In exercise of powers conferred by Section 139 of the
Officer of the Company.
Companies Act, 2013, the Comptroller and Auditor General
of India (CAG) vide its letter dated July 31, 2019 has appointed
Cost Auditors M/s Walker Chandiok & Co. LLP, Chartered Accountants as
Statutory Auditors of the Company for the financial year
Your Company had appointed M/s Ramanath Iyer & Co., New 2019-20.
Delhi as Cost Auditors for the financial year 2018-19.
The Notes on financial statements referred to in the Auditors’
As per Section 148 read with Companies (Audit & Auditors) Report for FY 2018-19 of M/s Walker Chandiok & Co. LLP,
Rules, 2014 and other applicable provisions, if any, of Chartered Accountants are self-explanatory and do not call
the Companies Act, 2013, the Board of Directors of your for any further comments.
Company has re-appointed M/s Ramanath Iyer & Co., New
Delhi, Cost Accountants, as the Cost Auditors of the Company Review and Comments of CAG, on Standalone and
for the financial year 2019-20. The remuneration proposed Consolidated financial statements for the FY 2018-19 form
to be paid to the Cost Auditors is subject to the ratification part of financial statements of the Company.
by the members at the ensuing Annual General Meeting of
the Company.
Conservation of Energy and Technology
Your Company is maintaining cost records as specified by Absorption, Foreign Exchange Earnings and
the Central Government under Section 148 of the Companies Outgo
Act, 2013.
The information in accordance with the provisions of Section
134 (3) (m) of the Companies Act, 2013 read with Rule (8)
Secretarial Auditors and Secretarial Audit of the Companies (Accounts) Rules, 2014 is appended as
Report Annexure 6 to this report.
17
Acknowledgements The Directors wish to express their gratitude to all the
shareholders for their continued trust and support.
Your Directors express their gratitude to the Ministry of
Petroleum & Natural Gas, State Governments of NCT of Delhi, The Directors also sincerely acknowledge the contributions
Uttar Pradesh, Haryana & Rajasthan, Petroleum and Natural made by all the employees of IGL for their dedicated services
Gas Regulatory Board, and Promoter Companies (GAIL & to the Company.
BPCL) for their continuous guidance & support throughout
the year.
For and on behalf of Board of Directors
The Directors also acknowledge the support of all Statutory &
Local Authorities, Bankers, Media, Station Operators & their
employees, contractors, vendors and suppliers. Sd/- Sd/-
E. S. Ranganathan Amit Garg
The Directors place on record their deep appreciation Managing Director Director (Commercial)
towards IGL’s valued customers for their continued
patronage support and look forward to the continuance of Place: New Delhi
this relationship in future also. Date : August 14, 2019
Shri E.S. Ranganathan, Managing Director, Indraprastha Gas Limited presenting dividend cheque for FY 2017-18 to Shri D. Rajkumar, Chairman & Managing
Director, BPCL in the presence of senior officials from IGL and BPCL.
18
Indraprastha Gas Limited | 20th Annual Report 2018-19
ANNEXURE 1
1. Sl. No.
2. Name of the subsidiary
3. The date since when subsidiary was acquired
4. Reporting period for the subsidiary concerned, if different from the holding Company’s reporting period
5. Reporting currency and Exchange rate as on the last date of the relevant financial year in the case of foreign subsidiaries.
6. Share capital
7. Reserves & surplus
8. Total assets Not Applicable
9. Total Liabilities
10. Investments
11. Turnover
12. Profit before taxation
13. Provision for taxation
14. Profit after taxation
15. Proposed Dividend
16. Extent of shareholding (in percentage)
Notes: The following information shall be furnished at the end of the statement:
19
Sl. Name of Associates or Joint Ventures Central UP Gas Maharashtra Natural
No Limited (CUGL) Gas
Limited (MNGL)
4. Description of how there is significant influence Holding 50% (Equity Holding 50% (Equity
shares) shares)
5. Reason why the associate is not consolidated Consolidated Consolidated
6. Net worth attributable to shareholding as per latest Balance Rs. 282.01 Crores Rs. 520.97 Crores*
Sheet
7. Profit / Loss for the year
i. Considered in Consolidation Rs. 26.05 Crores Rs. 71.33 Crores*
ii. Not Considered in Consolidation Rs. 26.05 Crores Rs. 71.33 Crores*
*These figures are based on Audited Accounts of MNGL for FYE March 31, 2019. However, consolidated financial statements of the Company for FYE
March 31, 2019 contains Unaudited Accounts of MNGL.
Sd/- Sd/-
E. S. Ranganathan Amit Garg
Managing Director Director (Commercial)
Sd/- Sd/-
Place: New Delhi S. K. Jain Rakesh Chawla
Date : August 14, 2019 Company Secretary Chief Financial Officer
20
Indraprastha Gas Limited | 20th Annual Report 2018-19
ANNEXURE 2
A responsible business is expected to not only take care of its stakeholders but also to engage and contribute meaningfully
towards improving the quality of life of the communities and environment in which it operates. IGL follows the Board
approved CSR Policy which is in line with the requirements of The Companies Act, 2013.
The contents of CSR Policy of IGL are displayed on IGL’s website at http://iglonline.net/CSR.aspx.
3. Average Net Profit of the company in the last three financial years: Rs.828.98 Crores.
4. Prescribed CSR expenditure (2% of the amount mentioned above in 3) – Rs 16.58 Crores.
5. a) Total Amount to be spent in the financial year: Rs 16.58 Crores.
b) Amount spent: Rs. 14.49 Crores.*
c) Amount unspent: Rs. 2.09 Crores.
*Amount utilized on CSR for year 2018-19 was Rs. 14.49 Crores against actually disbursed amount of Rs. 16.26 Crores.
1 2 3 4 5 6 7 8
Sr. CSR Project or Project Projects or Amount Amount spent on Cumulative Project
No. activity identified description programs outlay projects or programs expenditure implemented:
1) Local area or (budget) in 2018-19 as on 31st upto 31st Direct or
other project or March 2019 March 2019 through
2) Specify the program (Rs. in lacs) (Rs. in Lacs) implementing
state or district wise 1) Direct expenditure agency
where projects or (Rs. in Lacs) on projects or
programs were programs
undertaken 2) Overheads
1 IGL Suraksha Eradicating Local area i.e, Delhi 18.71 18.71 18.71 Direct
Yojana poverty & NCR (Noida,
(Jul’18-Jul’19) Greater Noida &
Ghaziabad)
2 IGL Swasth Promoting Local area i.e, Delhi 84.60 78.22 78.22 Direct
Saarthi Healthcare & NCR (Noida,
including Greater Noida &
Preventive Ghaziabad)
Healthcare
(Apr’18-Mar’19)
Managing Swasth 1.12 1.12 1.12 Direct
Saarthi web portal
21
1 2 3 4 5 6 7 8
Sr. CSR Project or Project Projects or Amount Amount spent on Cumulative Project
No. activity identified description programs outlay projects or programs expenditure implemented:
1) Local area or (budget) in 2018-19 as on 31st upto 31st Direct or
other project or March 2019 March 2019 through
2) Specify the program (Rs. in lacs) (Rs. in Lacs) implementing
state or district wise 1) Direct expenditure agency
where projects or (Rs. in Lacs) on projects or
programs were programs
undertaken 2) Overheads
3 Building Bonds Vocational Skills Local area i.e, Delhi 288.17 18.33 263.75 Manas
through Gender (Apr’17-Mar’18) & NCR (Noida, Foundation
Sensitization Greater Noida &
for Auto, Taxi & Ghaziabad)
Bus drivers in
Delhi, Noida &
Gurugram
4 Building Bonds Vocational Skills Local area i.e, Delhi 236.99 213.84 213.84 Manas
through Gender (Apr’18-Mar’19) & NCR (Noida, Foundation
Sensitization Greater Noida &
for Auto, Taxi & Ghaziabad)
Bus drivers in
Delhi, Noida &
Gurugram
5 Sewing Machine Women Local area i.e, Delhi 48.05 37.34 37.34 Amity Humanity
Operator Training Empowerment & NCR (Noida, Foundation
programme for and Employment Greater Noida &
rural women of enhancing Ghaziabad)
Noida & Greater vocational skills
Noida (Apr’18-Mar’19)
6 Self Defence Promoting Local area i.e, Delhi 107.55 107.55 107.55 Asheray
training to over Women & & NCR (Noida, Welfare &
15000 school girls Girl Child Greater Noida & Charitable
from 25 Govt. Empowerment Ghaziabad) Society
Schools (Apr’18-Mar’19)
7 Distribution of Promoting Local area i.e, Delhi 10.62 10.62 10.62 Gramin Vikas
e-slates to girl Education & NCR (Noida, Trust
students from (Apr’18-May’18) Greater Noida &
SDMC schools Ghaziabad)
8 All Round School Promoting Local area i.e, Delhi 74.89 22.84 51.96 Aspire
Improvement in Education & NCR (Noida,
School Education (Jul’17- Jun’18) Greater Noida &
programme Ghaziabad)
at 15 South
Delhi Municipal
Corporation
(SDMC) schools
9 All Round School Promoting Local area i.e, Delhi 94.55 28.36 28.36 Aspire
Improvement in Education & NCR (Noida,
School Education (Nov’18-Oct’19) Greater Noida &
programme Ghaziabad)
at 15 South
Delhi Municipal
Corporation
(SDMC) schools
22
Indraprastha Gas Limited | 20th Annual Report 2018-19
1 2 3 4 5 6 7 8
Sr. CSR Project or Project Projects or Amount Amount spent on Cumulative Project
No. activity identified description programs outlay projects or programs expenditure implemented:
1) Local area or (budget) in 2018-19 as on 31st upto 31st Direct or
other project or March 2019 March 2019 through
2) Specify the program (Rs. in lacs) (Rs. in Lacs) implementing
state or district wise 1) Direct expenditure agency
where projects or (Rs. in Lacs) on projects or
programs were programs
undertaken 2) Overheads
10 Upbringing Empowerment Local area i.e, Delhi 53.80 10.76 53.80 SOS Children’s
of vulnerable of women and & NCR (Noida, Village of India
children through underprivileged Greater Noida &
enabling women (Jun’17-Jun’18) Ghaziabad)
via livelihood
11 Upbringing Empowerment Local area i.e, Delhi 71.10 20.65 20.65 SOS Children’s
of vulnerable of women and & NCR (Noida, Village of India
children through underprivileged Greater Noida &
enabling women (Nov’18-Nov’19) Ghaziabad)
via livelihood
12 School Support Promoting Local area i.e, Delhi 48 4.8 48 Khushii
programme at a Education & NCR (Noida,
MCD run school (Mar’17-Mar’18) Greater Noida &
at Mukundpur, Ghaziabad)
Delhi
13 School Support Promoting Local area i.e, Delhi 56.91 56.91 56.91 Khushii
programme at a Education & NCR (Noida,
MCD run school (May’18-Apr’19) Greater Noida &
at Mukundpur, Ghaziabad)
Delhi
14 Preventive eye Promoting Local area i.e, Delhi 47.28 6.38 47.28 Ishwar
care for the Healthcare & NCR (Noida, Charitable Trust
underprivileged including Greater Noida &
communities of Preventive Ghaziabad)
NCR region Healthcare
(Mar’17-Mar18)
15 Preventive eye Promoting Local area i.e, Delhi 95.08 19.17 19.17 Ishwar
care for the Healthcare & NCR (Noida, Charitable Trust
underprivileged including Greater Noida &
communities of Preventive Ghaziabad)
NCR region Healthcare
(Dec’18-Dec’19)
16 Sponsorship of Promoting Local area i.e, Delhi 62.50 6.25 62.50 Centre
underprivileged Education & NCR (Noida, for Social
students for (Jul’17-Jul’18) Greater Noida & Responsibility &
Engineering Ghaziabad) Leadership
Entrance exams
coaching
17 Sponsorship of Promoting Local area i.e, Delhi 70 56.25 56.25 Centre
underprivileged Education & NCR (Noida, for Social
students for (Jul’18-Jul’19) Greater Noida & Responsibility &
Engineering Ghaziabad) Leadership
Entrance exams
coaching
23
1 2 3 4 5 6 7 8
Sr. CSR Project or Project Projects or Amount Amount spent on Cumulative Project
No. activity identified description programs outlay projects or programs expenditure implemented:
1) Local area or (budget) in 2018-19 as on 31st upto 31st Direct or
other project or March 2019 March 2019 through
2) Specify the program (Rs. in lacs) (Rs. in Lacs) implementing
state or district wise 1) Direct expenditure agency
where projects or (Rs. in Lacs) on projects or
programs were programs
undertaken 2) Overheads
18 Distribution Promoting Local area i.e, Delhi 74.94 18.74 74.94 Artificial Limbs
of aids and welfare of & NCR (Noida, Manufacturing
artificial limbs to differently abled Greater Noida & Corporation of
differently abled (Aug’17-Aug’18) Ghaziabad) India
people
19 Monitoring & Monitoring & Local area i.e, Delhi 14.16 14.16 14.16 Goodera
Evaluation of CSR Evaluation of CSR & NCR (Noida,
programmes programmes Greater Noida &
(Apr’18-Mar’19) Ghaziabad)
20 Generating Education & Local area i.e, Delhi 93.74 93.74 93.74 National Yuva
sustainable employment & NCR (Noida, Cooperative
livelihood enhancing Greater Noida & Society
opportunities vocational skills Ghaziabad)
through Skill (Apr’18-Mar’19)
Development
program in Delhi
& Ghaziabad
21 Generating Education & District Rewari in 96.96 25.64 25.64 National Yuva
sustainable employment Haryana Cooperative
livelihood enhancing Society
opportunities vocational skills
through Skill (Feb’19-Jan’20)
Development
program in
Rewari
22 Providing skill Promoting Local area i.e, Delhi 139.14 86.38 108.22 National
development employment & NCR (Noida, Handicapped
training to enhancing Greater Noida & Finance and
Persons with vocational skills Ghaziabad) Development
Disabilities for differently Corporation
abled people
(Dec’17-Apr’18)
23 Project Roshni – Preventive Health Local area i.e, Delhi 34.28 27.48 34.28 Netram Eye
Preventive eye Care & NCR (Noida, Foundation
care for school (Jan’18-Jan’19) Greater Noida &
children in Delhi Ghaziabad)
24 Project Roshni – Preventive Health District Rewari in 44.02 37.60 37.60 Netram Eye
Preventive eye Care Haryana Foundation
care for school (Jul’18-Jun’19)
children in Rewari
24
Indraprastha Gas Limited | 20th Annual Report 2018-19
1 2 3 4 5 6 7 8
Sr. CSR Project or Project Projects or Amount Amount spent on Cumulative Project
No. activity identified description programs outlay projects or programs expenditure implemented:
1) Local area or (budget) in 2018-19 as on 31st upto 31st Direct or
other project or March 2019 March 2019 through
2) Specify the program (Rs. in lacs) (Rs. in Lacs) implementing
state or district wise 1) Direct expenditure agency
where projects or (Rs. in Lacs) on projects or
programs were programs
undertaken 2) Overheads
25 Deployment of Promoting Local area i.e, Delhi 36 33.18 33.18 Deputy
Traffic Wardens Environmental & NCR (Noida, Controller,
by Ghaziabad conservation and Greater Noida & Civil Defence,
District road safety Ghaziabad) Ghaziabad
Authorities (Feb’18-Jan’19)
26 Deployment of Promoting Local area i.e, Delhi 54 3.71 3.71 Deputy
Traffic Wardens Environmental & NCR (Noida, Controller,
by Ghaziabad conservation and Greater Noida & Civil Defence,
District road safety Ghaziabad) Ghaziabad
Authorities (Feb’19-Jan’20)
27 Eradication of Promoting Local area i.e, Delhi 28.88 28.88 28.88 Badkulla Luna
child nutrition in eradication of & NCR (Noida, Silk Khadi
East Delhi Slums child malnutrition Greater Noida & Society
(Apr’18-Jun’18) Ghaziabad)
28 Community Promoting health Local area i.e, Delhi 18.87 18.87 18.87 Development
Health awareness care through & NCR (Noida, Oriented
programme in preventive health Greater Noida & Operations
Delhi Slums care Ghaziabad) Research &
(Apr’18-Jun’18) Surveys
29 Skill development Promoting Local area i.e, Delhi 21.90 21.90 21.90 Social Economic
training of Delhi Education & & NCR (Noida, and Versatile
Govt. run ITI Employment Greater Noida & Welfare
students at Gas enhancing Ghaziabad) Association
Plumbing at ITI, vocational skill
Arab ki Sarai (May’18-May’19)
30 Medical- Dental Promoting Local area i.e, Delhi 25.02 11.75 11.75 Buddha
health camps Preventive & NCR (Noida, Education
for MCD/ healthcare Greater Noida & Foundation
Government (Jul’18-Jul’19) Ghaziabad)
schools
31 Waste to Manure Ensuring Local area i.e, Delhi 5 5 5 Confederation
Programme at Environmental & NCR (Noida, of Indian
East Delhi Sustainability Greater Noida & Industry
(May’18-Nov’18) Ghaziabad)
32 Road Safety Promoting Local area i.e, Delhi 9.09 9.09 9.09 Direct
Summer Camp by Education & Road & NCR (Noida,
Road Safety Cell Safety Greater Noida &
of Delhi Traffic (May’18-Jun’18) Ghaziabad)
Police
33 Road Safety Promoting Local area i.e, Delhi 8.50 8.50 8.50 Direct
Books for road Education & Road & NCR (Noida,
safety campaign Safety Greater Noida &
(May’18-Jun’18) Ghaziabad)
25
1 2 3 4 5 6 7 8
Sr. CSR Project or Project Projects or Amount Amount spent on Cumulative Project
No. activity identified description programs outlay projects or programs expenditure implemented:
1) Local area or (budget) in 2018-19 as on 31st upto 31st Direct or
other project or March 2019 March 2019 through
2) Specify the program (Rs. in lacs) (Rs. in Lacs) implementing
state or district wise 1) Direct expenditure agency
where projects or (Rs. in Lacs) on projects or
programs were programs
undertaken 2) Overheads
34 Traffic Mitra Promoting road Local area i.e, Delhi 0.30 0.30 0.30 Direct
awards for safety & NCR (Noida,
promoting traffic (Aug’18) Greater Noida &
sentinels of Delhi Ghaziabad)
Traffic Police
35 Road Safety Promoting Local area i.e, Delhi 16.67 16.67 16.67 Direct
Awareness Education & Road & NCR (Noida,
Campaign of Delhi Safety Greater Noida &
Traffic Police (Oct’18-Feb’19) Ghaziabad)
36 Contribution Promoting Art & Local area i.e, Delhi 10 10 10 Hamsadhwani
towards Culture & NCR (Noida,
Promotion of Art (Sept’18-Oct’18) Greater Noida &
& Culture Ghaziabad)
37 Drive Safe Daddy Promoting road Local area i.e, Delhi 19.81 19.81 19.81 Community
Project driver safety & NCR (Noida, Against
awareness (Oct’18-Dec’18) Greater Noida & Drunken
programme Ghaziabad) Driving
38 Drive Safe Daddy Promoting road Local area i.e, Delhi 19.81 9.90 9.90 Community
Project driver safety & NCR (Noida, Against
awareness (Mar’19-May’19) Greater Noida & Drunken
programme Ghaziabad) Driving
39 Medical Health Promoting Local area i.e, Delhi 25.70 25.70 25.70 Indian Social
Care unit in slums Preventive Health & NCR (Noida, Responsibility
in Ghaziabad Care Greater Noida & Network
(Sep’18-Nov’18) Ghaziabad)
40 Medical Health Promoting Local area i.e, Delhi 98.44 13.55 13.55 Indian Social
Care unit in slums Preventive Health & NCR (Noida, Responsibility
in Ghaziabad Care. Greater Noida & Network
(Feb’19-Jan’20) Ghaziabad)
41 Construction of Benefits of war Local area i.e, Delhi 45 25.02 25.02 Direct
Skill Development widows & NCR (Noida,
Training Centre (Feb’19-Jun’19) Greater Noida &
for war widows Ghaziabad)
of BSF at BSF
Chhawla Camp
42 Painting of Promoting Social Local area i.e, Delhi 20 20 20 Ghaziabad
catch barriers of Messages of & NCR (Noida, Development
elevated roads in Government Greater Noida & Authority
Ghaziabad (July 2018 ) Ghaziabad)
26
Indraprastha Gas Limited | 20th Annual Report 2018-19
1 2 3 4 5 6 7 8
Sr. CSR Project or Project Projects or Amount Amount spent on Cumulative Project
No. activity identified description programs outlay projects or programs expenditure implemented:
1) Local area or (budget) in 2018-19 as on 31st upto 31st Direct or
other project or March 2019 March 2019 through
2) Specify the program (Rs. in lacs) (Rs. in Lacs) implementing
state or district wise 1) Direct expenditure agency
where projects or (Rs. in Lacs) on projects or
programs were programs
undertaken 2) Overheads
43 Skill development Promoting skill Local area i.e, Delhi 18.60 13.02 13.02 Santhigiri
for 20 no. of development & NCR (Noida, Ashram
underprivileged (Oct’18-Sep’19) Greater Noida &
youth in Ghaziabad)
Panchkarma
Ayurvedic
Training centre at
Delhi
44 Empowering rural Upliftment District Rewari in 133.01 31.50 31.50 Khushii
communities of rural Haryana
through holistic communities
development (Oct’18-Sep’21)
at Alamgirpur
Village, Rewari
45 Point of care Promoting Local area i.e, Delhi 170.98 2.54 2.54 State
diagnostic system preventive & NCR (Noida, Innovations in
at 4 villages in healthcare Greater Noida & Family Planning
Ghaziabad (Feb’19-Jul’20) Ghaziabad) Services Agency
46 Supporting Promoting District Rewari in 13.32 6.92 6.92 Shikshadaan
education for Education Haryana
underprivileged (Dec’18-Dec’19)
girls from
Rewari through
scholarships
47 Library based Promoting Local area i.e, Delhi 79.69 74.60 74.60 Pratham Delhi
education Education & NCR (Noida, Education
programme in 125 (Apr’18-Mar’19) Greater Noida & Initiative Trust
EDMC & NDMC Ghaziabad)
schools
48 Skill Development Promoting District Rewari in 24.28 9.71 9.71 Growth
in computer women Haryana Foundation of
education for empowerment India
underprivileged (Feb’19-Jul’19)
women and
girls from Bawal
village in Rewari
49 School Sanitation Promoting Local area i.e, Delhi 33.77 6.75 33.77 Charities Aid
and behavioural Sanitation, Health & NCR (Noida, Foundation
change & Hygiene Greater Noida &
communication (Aug’17-May’18) Ghaziabad)
at four Govt.
schools in Noida
Total Amount (Rs. in Lakhs) 2903.80 1448.71 2018.50
(Rs. 29.04 (Rs. 14.49 Crores) (Rs. 20.19
Crores) Crores)
27
6. In case company has failed to spend the 2% of the average net profit of the last three financial
years or any part thereof, the company shall provide the reasons for not spending the amount in
its Board Report.
IGL has been consistently scaling up its CSR spent every year. In line with the Board approved CSR Policy, in addition to the
ongoing CSR projects from previous FY 2017-18, a large number of new CSR projects had been identified and initiated in
FY 2018-19. The amount spent and utilised in FY 2018-19 on CSR projects amounting to Rs. 14.49 Crores was nearly 25%
more than the amount spent in FY 2017-18 i.e Rs. 11.60 Crores. The overall budget of CSR initiatives undertaken in FY 2018-
19 was Rs. 29.04 Crores. It is pertinent to mention that while the actual fund released by IGL for implementing these CSR
projects in 2018-19 was Rs. 16.26 Crores, however, the amount actually utilized and hence booked as CSR spent during the
year amounts to Rs. 14.49 Crores.
Also, since the span of execution of activities under many CSR programmes are spread over the financial year, many
implementing partners tend to utilise the funds in the next financial year. Therefore, funds for few programmes initiated
in FY 2018-19 would be released and utilised in FY 2019-20 as well.
As a CSR intervention, during the year, IGL signed an agreement with SIFPSA (State Innovations in Family Planning Services
Project Agency) (Government of Uttar Pradesh) to take preventive health care in form of point of care diagnostic system to
four villages in district Ghaziabad. Out of the budgeted cost of this programme i.e, Rs. 1.71 Crores, IGL released an amount
of Rs. 34 Lakhs but only Rs. 2.5 Lakh out of it was spent and booked during the year. Also, a CSR proposal from Akshaya
Patra Foundation was approved for setting up of a mega kitchen towards mid-day meal for Government school children
in Ghaziabad which was budgeted at Rs. 2.70 Crores. However, IGL did not release any amount to the foundation towards
this projects since land usage could not be converted from being an agriculture land during the year.
The successful CSR projects of FY 2018-19, like Building Bonds through Gender Sensitisation, IGL Swasth Sarthi, Coaching
for engineering entrance examination to underprivileged students, Self Defence training for school girls, Remedial
Education programmes at municipal schools, Skill Development for rural women and underprivileged/ unemployed youth
etc. are being further scaled up in FY 2019-20 after analysing their impact. IGL has taken/ scaled up its CSR interventions
in its new Geographical Areas (GAs) such as Rewari, In future also, all the projects would be ramped up in the subsequent
years after gauging impact of these initiatives through impact assessment studies.
The CSR Committee confirms that the implementation and monitoring of the CSR activities of the Company are in
compliance with the CSR objectives and CSR Policy of the Company.
Sd/- Sd/-
Place: New Delhi E. S. Ranganathan Saroj Bala
Date: August 14, 2019 Managing Director Chairperson, CSR Committee
28
Indraprastha Gas Limited | 20th Annual Report 2018-19
ANNEXURE 3
We have conducted the secretarial audit of the compliance (a) The Securities and Exchange Board of India
of applicable statutory provisions and the adherence to good (Substantial Acquisition of Shares and Takeovers)
corporate practices by Indraprastha Gas Limited (hereinafter Regulations, 2011;
called the Company). Secretarial Audit was conducted in a
manner that provided us a reasonable basis for evaluating the (b) The Securities and Exchange Board of India
corporate conducts/statutory compliances and expressing (Prohibition of Insider Trading) Regulations, 2015;
our opinion thereon.
(c) The Securities and Exchange Board of India (Issue of
Based on our verification of the Indraprastha Gas Limited’s Capital and Disclosure Requirements) Regulations,
books, papers, minute books, forms and returns filed and 2009;
other records maintained by the Company and also the
(d) The Securities and Exchange Board of India (Share
information provided by the Company, its officers, agents and
Based Employee Benefits) Regulations, 2014;
authorized representatives during the conduct of secretarial
audit, we hereby report that in our opinion, the Company (e) The Securities and Exchange Board of India (Issue
has, during the audit period covering the financial year ended and Listing of Debt Securities) Regulations, 2008;
on 31.03.2019 complied with the statutory provisions listed
hereunder and also that the Company has proper Board- (f) The Securities and Exchange Board of India
processes and compliance-mechanism in place to the extent, (Registrars to an Issue and Share Transfer Agents)
in the manner and subject to the reporting made hereinafter: Regulations, 1993 regarding the Companies Act and
dealing with client;
We have examined the books, papers, minute books,
forms and returns filed and other records maintained by (g) The Securities and Exchange Board of India (Delisting
Indraprastha Gas Limited (“the Company”) for the financial of Equity Shares) Regulations, 2009; and
year ended on 31.03.2019 according to the provisions of:
(h) The Securities and Exchange Board of India (Buyback
(i) The Companies Act, 2013 (the Act) and the rules made of Securities) Regulations, 1998;
there under;
(i) And other applicable laws which in our opinion were
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) applicable to the Company i.e. The Petroleum and
and the rules made there under; Natural Gas Regulatory Board Act, 2006 and The
Petroleum Act, 1934.
(iii) The Depositories Act, 1996 and the regulations and bye-
laws framed there under; We have also examined compliance with the applicable
Regulations/Standards of the following:
(iv) Foreign Exchange Management Act, 1999 and the rules
and regulations made there under to the extent of (i) The Securities and Exchange Board of India (Listing
Foreign Direct Investment, Overseas Direct Investment Obligations and Disclosure Requirements) Regulations,
and External Commercial Borrowings; 2015;
29
(ii) Secretarial Standards issued by The Institute of Company on the agenda items before the meeting and for meaningful
Secretaries of India. participation at the meeting.
During the period under review the Company has complied Majority decision is carried through while the dissenting views,
with the provisions of the Act, Rules, Regulations, Guidelines, if any, are captured and recorded as part of the minutes.
Standards etc. mentioned above to the extent they were
applicable. The Company has incurred an expenditure of Rs. We further report that there are adequate systems and
14.49 Crores (Previous year Rs.11.60 Crores) on Corporate processes in the Company commensurate with the size and
Social Responsibility activity specified under the provisions of operations of the Company to monitor and ensure compliance
the Companies Act 2013 as against the required spend of Rs. with applicable laws, rules, regulations and guidelines.
16.58 Crores (Previous year Rs. 14.30 Crores).
We further report that during the audit period there was no
specific event/action which has a major bearing on the affairs
We further report that- of the Company in pursuance of above referred laws, rules,
regulations, guidelines, standards etc.
The Board of Directors of the Company is duly constituted
with proper balance of Executive Directors, Non-Executive
Directors and Independent Directors except that the
percentage of Independent directors fell below the required for V. K. Sharma & Co.
50% for part of the year and a delay of 26 days occurred Company Secretaries
before the composition of the board could be restored. The
changes in the composition of the Board of Directors that Sd/-
took place during the period under review were carried out (V. K. Sharma)
in compliance with the provisions of the Act. Place: Noida FCS: 3440
Date: August 14, 2019 C. P. No.:2019
Adequate notice is given to all Directors to schedule the
Board Meetings, agenda and detailed notes on agenda This report is to be read with our letter of even date which
were sent adequately in advance, and a system exists for is annexed as Annexure A and forms an integral part of this
seeking and obtaining further information and clarifications report.
30
Indraprastha Gas Limited | 20th Annual Report 2018-19
‘Annexure A’
To,
The Members,
Indraprastha Gas Limited
1. Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to express
an opinion on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness
of the contents of the secretarial records. The verification was done on test basis to ensure that correct facts are reflected in
secretarial records. We believe that the processes and practices we followed provide a reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and books of accounts of the Company.
4. The compliance of the provisions of corporate and other laws, rules, regulations and standards is the responsibility of the
management. Our examination was limited to the verification procedures on test basis.
5. The secretarial audit report is neither an assurance as to the future viability of the Company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Company.
Sd/-
(V. K. Sharma)
Place: Noida FCS: 3440
Date: August 14, 2019 C. P. No.:2019
31
ANNEXURE 4
b. The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company Secretary
or Manager, if any, in the financial year;
S. Name of Director* and KMP** % increase in
No remuneration
1 Shri S. K. Jain, Company Secretary 25.37%
*Shri E. S. Ranganathan, Shri V. Nagarajan and Shri Rajiv Sikka get remuneration from their employers i.e. GAIL & BPCL. Your Company has paid the
amount including GST to promoters as secondment charges as these Directors are not the employees of the Company.
**The percentage increase in remuneration of Shri Rakesh Chawla, CFO has not been given for FY 2018-19 as the same is not comparable with the
previous year as he was appointed as CFO w.e.f. August 1, 2018.
c. In the financial year 2018-19, there was an increase of 7.28% in the median remuneration of employees.
d. The number of permanent employees on the rolls of Company as on March 31, 2019 was 644. The Company has maintained
peaceful and harmonious relations with all its employees.
e. Average percentage increase made in the salaries of employees other than the managerial personnel in the financial year
was 19.75%.
f. Details of top ten employees in terms of remuneration drawn for the financial year 2018-19 are as under:
Name Designation Remuneration Qualification Experience Joining Age Last
(Rs.) (years) Date (years) employment
Shri Ashim Sr. Vice President – 1,04,24,132 BE, MBA 35 23.06.2003 57 Vietrans Pvt. Ltd.
Batra PNG Project and O&M (Mktg.)
Shri Manjeet Sr. Vice President – 91,84,516 B. Tech, 34 27.09.2006 57 Bharat
Singh Project Engineering PGDM (Mktg.) Petroleum Corp.
Services & JV Cor-ord Limited
Shri Praveen Vice President – 88,54,618 BE (Mech) 34 02.01.2006 56 Sriram Fertilizer
Kumar Pandey Marketing & Chemicals
Limited
32
Indraprastha Gas Limited | 20th Annual Report 2018-19
NOTES:
• Remuneration includes salary, allowances, Leave Travel Allowances, Performance Linked Incentive, Company contribution
to PF, gratuity, NPS and other perks.
• None of the employees mentioned above hold more than 2% of the shares of your Company, alongwith their spouse and
dependent children.
• None of the employees mentioned above is a relative of any director.
g. It is hereby affirmed that the remuneration paid is as per the Remuneration policy of the Company
33
ANNEXURE 5
1. CIN L23201DL1998PLC097614
2. Registration Date 23/12/1998
3. Name of the Company Indraprastha Gas Limited
4. Category / Sub-Category of the Company Company limited by shares/Indian Non- Government Company
5. Address of the Registered office and contact IGL Bhawan, Plot No.4, Community Centre, Sector-9, R. K. Puram,
details New Delhi - 110022. Contact No: 011-46074607
6. Whether listed Company Yes
7. Name, Address and Contact details of Registrar Karvy Fintech Private Limited
and Transfer Agent, if any Karvy Selenium Tower B, Plot No 31 & 32 Gachibowli, Financial
District,
Nanakramguda, Serilingampally, Hyderabad – 500032.
Tel. No’s 040-67162222
Fax No’s 040-23001153
Toll Free no. 1800-345-4001
E-Mail Address [email protected]
Sl. Name and Description of main products/ services NIC Code of the % to total
No Product/ service turnover of the
Company
1 Natural Gas 3520 100
34
Indraprastha Gas Limited | 20th Annual Report 2018-19
(IV) Shareholding Pattern (Equity Share Capital Break-up as percentage of total equity)
(i) Category - Wise Shareholding
CATEGORY CATEGORY OF NO. OF SHARES HELD AT THE BEGINNING OF NO. OF SHARES HELD AT THE END OF THE %
CODE SHAREHOLDER THE YEAR 01/04/2018 YEAR 31/03/2019 CHANGE
DEMAT PHYSICAL TOTAL % OF DEMAT PHYSICAL TOTAL % OF DURING
TOTAL TOTAL THE
SHARES SHARES YEAR
(I) (II) (III) (IV) (V) (VI) (VII) (VIII) (IX) (X) (XI)
35
CATEGORY CATEGORY OF NO. OF SHARES HELD AT THE BEGINNING OF NO. OF SHARES HELD AT THE END OF THE %
CODE SHAREHOLDER THE YEAR 01/04/2018 YEAR 31/03/2019 CHANGE
DEMAT PHYSICAL TOTAL % OF DEMAT PHYSICAL TOTAL % OF DURING
TOTAL TOTAL THE
SHARES SHARES YEAR
(I) (II) (III) (IV) (V) (VI) (VII) (VIII) (IX) (X) (XI)
(iv) Shareholding pattern of top 10 Shareholders (other than Directors and Promoters)
Sl. Name of the Share Holder Shareholding at the beginning of the Year Reason Cumulative
no Shareholding during
the Year
No of % of total Date Increase/ No of % of total
Shares shares Decrease Shares shares
of the in share of the
Company holding Company
1 Govt of NCT of Delhi 35000000 5.00 01/04/2018 35000000 5.00
31/03/2019 35000000 5.00
2 Life Insurance Corporation of 32386213 4.63 01/04/2018 32386213 4.63
India
06/04/2018 1910755 Transfer 34296968 4.90
13/04/2018 381128 Transfer 34678096 4.95
20/04/2018 2744497 Transfer 37422593 5.35
27/04/2018 829968 Transfer 38252561 5.46
04/05/2018 1129182 Transfer 39381743 5.63
36
Indraprastha Gas Limited | 20th Annual Report 2018-19
Sl. Name of the Share Holder Shareholding at the beginning of the Year Reason Cumulative
no Shareholding during
the Year
No of % of total Date Increase/ No of % of total
Shares shares Decrease Shares shares
of the in share of the
Company holding Company
21/12/2018 282500 Transfer 39664243 5.67
28/12/2018 806673 Transfer 40470916 5.78
31/12/2018 123000 Transfer 40593916 5.80
04/01/2019 147226 Transfer 40741142 5.82
11/01/2019 260701 Transfer 41001843 5.86
18/01/2019 349106 Transfer 41350949 5.91
25/01/2019 87000 Transfer 41437949 5.92
01/02/2019 206874 Transfer 41644823 5.95
08/02/2019 75950 Transfer 41720773 5.96
15/02/2019 545000 Transfer 42265773 6.04
22/02/2019 475493 Transfer 42741266 6.11
01/03/2019 511580 Transfer 43252846 6.18
08/03/2019 395075 Transfer 43647921 6.24
31/03/2019 43647921 6.24
3 Vontobel Fund - MTX
Sustainable Emerging Markets 0 0.00 01/04/2018 0 0.00
Leaders*
08/02/2019 6480657 Transfer 6480657 0.93
15/02/2019 1119343 Transfer 7600000 1.09
22/02/2019 1900000 Transfer 9500000 1.36
01/03/2019 691106 Transfer 10191106 1.46
22/03/2019 633450 Transfer 10824556 1.55
29/03/2019 723716 Transfer 11548272 1.65
31/03/2019 11548272 1.65
4 Kotak Select Focus Fund 10800000 1.54 01/04/2018 10800000 1.54
26/10/2018 200000 Transfer 11000000 1.57
23/11/2018 800000 Transfer 11800000 1.69
30/11/2018 297988 Transfer 12097988 1.73
07/12/2018 402012 Transfer 12500000 1.79
14/12/2018 1029275 Transfer 13529275 1.93
22/02/2019 -1445631 Transfer 12083644 1.73
01/03/2019 961631 Transfer 13045275 1.86
08/03/2019 484000 Transfer 13529275 1.93
31/03/2019 13529275 1.93
5 HDFC Standard Life Insurance
9973668 1.42 01/04/2018 9973668 1.42
Company Limited
06/04/2018 450000 Transfer 10423668 1.49
13/04/2018 14488 Transfer 10438156 1.49
20/04/2018 100000 Transfer 10538156 1.51
04/05/2018 225000 Transfer 10763156 1.54
11/05/2018 202067 Transfer 10965223 1.57
18/05/2018 97933 Transfer 11063156 1.58
25/05/2018 7127 Transfer 11070283 1.58
08/06/2018 45355 Transfer 11115638 1.59
15/06/2018 14727 Transfer 11130365 1.59
22/06/2018 76299 Transfer 11206664 1.60
29/06/2018 56492 Transfer 11263156 1.61
06/07/2018 100000 Transfer 11363156 1.62
37
Sl. Name of the Share Holder Shareholding at the beginning of the Year Reason Cumulative
no Shareholding during
the Year
No of % of total Date Increase/ No of % of total
Shares shares Decrease Shares shares
of the in share of the
Company holding Company
20/07/2018 71000 Transfer 11434156 1.63
27/07/2018 -321000 Transfer 11113156 1.59
03/08/2018 -13185 Transfer 11099971 1.59
24/08/2018 225000 Transfer 11324971 1.62
31/08/2018 79197 Transfer 11404168 1.63
07/09/2018 72233 Transfer 11476401 1.64
14/09/2018 47810 Transfer 11524211 1.65
21/09/2018 75000 Transfer 11599211 1.66
28/09/2018 175799 Transfer 11775010 1.68
05/10/2018 400887 Transfer 12175897 1.74
12/10/2018 175381 Transfer 12351278 1.76
19/10/2018 50129 Transfer 12401407 1.77
26/10/2018 658 Transfer 12402065 1.77
02/11/2018 698 Transfer 12402763 1.77
16/11/2018 204962 Transfer 12607725 1.80
23/11/2018 75138 Transfer 12682863 1.81
30/11/2018 90498 Transfer 12773361 1.82
07/12/2018 235445 Transfer 13008806 1.86
14/12/2018 175383 Transfer 13184189 1.88
21/12/2018 365 Transfer 13184554 1.88
28/12/2018 25054 Transfer 13209608 1.89
31/12/2018 25000 Transfer 13234608 1.89
04/01/2019 150240 Transfer 13384848 1.91
11/01/2019 50539 Transfer 13435387 1.92
18/01/2019 49971 Transfer 13485358 1.93
25/01/2019 55 Transfer 13485413 1.93
01/02/2019 58750 Transfer 13544163 1.93
08/02/2019 -607529 Transfer 12936634 1.85
15/02/2019 312215 Transfer 13248849 1.89
01/03/2019 -249691 Transfer 12999158 1.86
08/03/2019 542905 Transfer 13542063 1.93
15/03/2019 7428 Transfer 13549491 1.94
22/03/2019 -1358 Transfer 13548133 1.94
31/03/2019 13548133 1.94
6 Morgan Stanley Investment
8625057 1.23 01/04/2018 8625057 1.23
Funds Indian Equity Fund#
06/04/2018 -1107896 Transfer 7517161 1.07
27/04/2018 565785 Transfer 8082946 1.15
08/06/2018 -564005 Transfer 7518941 1.07
15/06/2018 -207699 Transfer 7311242 1.04
29/06/2018 -397029 Transfer 6914213 0.99
06/07/2018 -406950 Transfer 6507263 0.93
13/07/2018 -1069182 Transfer 5438081 0.78
20/07/2018 -523687 Transfer 4914394 0.70
27/07/2018 -377089 Transfer 4537305 0.65
03/08/2018 -652966 Transfer 3884339 0.55
10/08/2018 -62184 Transfer 3822155 0.55
17/08/2018 -11983 Transfer 3810172 0.54
38
Indraprastha Gas Limited | 20th Annual Report 2018-19
Sl. Name of the Share Holder Shareholding at the beginning of the Year Reason Cumulative
no Shareholding during
the Year
No of % of total Date Increase/ No of % of total
Shares shares Decrease Shares shares
of the in share of the
Company holding Company
05/10/2018 -1344793 Transfer 2465379 0.35
12/10/2018 -409908 Transfer 2055471 0.29
23/11/2018 -254594 Transfer 1800877 0.26
04/01/2019 -127160 Transfer 1673717 0.24
18/01/2019 -244010 Transfer 1429707 0.20
01/02/2019 -214456 Transfer 1215251 0.17
08/02/2019 -236260 Transfer 978991 0.14
15/02/2019 -172848 Transfer 806143 0.12
22/02/2019 -91952 Transfer 714191 0.10
22/03/2019 -130253 Transfer 583938 0.08
31/03/2019 583938 0.08
7 Schroder International
0 0.00 01/04/2018 0 0.00
Selection Fund Emerging Asia*
31/08/2018 550285 Transfer 550285 0.08
07/09/2018 825715 Transfer 1376000 0.20
21/09/2018 1129000 Transfer 2505000 0.36
28/09/2018 1282319 Transfer 3787319 0.54
05/10/2018 717681 Transfer 4505000 0.64
16/11/2018 1146155 Transfer 5651155 0.81
30/11/2018 1731386 Transfer 7382541 1.05
04/01/2019 522611 Transfer 7905152 1.13
11/01/2019 368192 Transfer 8273344 1.18
31/03/2019 8273344 1.18
8 Fidelity Investment Trust
Fidelity Series Emerging 7220634 1.03 01/04/2018 7220634 1.03
Markets Opportunities Fund
13/04/2018 -97808 Transfer 7122826 1.02
08/06/2018 1743044 Transfer 8865870 1.27
15/06/2018 429949 Transfer 9295819 1.33
29/06/2018 68175 Transfer 9363994 1.34
31/08/2018 75400 Transfer 9439394 1.35
05/10/2018 71500 Transfer 9510894 1.36
02/11/2018 368029 Transfer 9878923 1.41
09/11/2018 280271 Transfer 10159194 1.45
11/01/2019 -239600 Transfer 9919594 1.42
22/03/2019 -34300 Transfer 9885294 1.41
31/03/2019 9885294 1.41
9 City of New York Group Trust* 623549 0.09 01/04/2018 623549 0.09
18/05/2018 -270064 Transfer 353485 0.05
22/06/2018 -122262 Transfer 231223 0.03
06/07/2018 -231223 Transfer 0 0.00
27/07/2018 397580 Transfer 397580 0.06
03/08/2018 2867455 Transfer 3265035 0.47
10/08/2018 644082 Transfer 3909117 0.56
17/08/2018 292712 Transfer 4201829 0.60
24/08/2018 62144 Transfer 4263973 0.61
22/02/2019 2603271 Transfer 6867244 0.98
31/03/2019 6867244 0.98
39
Sl. Name of the Share Holder Shareholding at the beginning of the Year Reason Cumulative
no Shareholding during
the Year
No of % of total Date Increase/ No of % of total
Shares shares Decrease Shares shares
of the in share of the
Company holding Company
10 Morgan Stanley India
6248071 0.89 01/04/2018 6248071 0.89
Investment Fund, Inc.#
15/06/2018 -115835 Transfer 6132236 0.88
13/07/2018 -455580 Transfer 5676656 0.81
27/07/2018 -362775 Transfer 5313881 0.76
03/08/2018 -628178 Transfer 4685703 0.67
10/08/2018 -168951 Transfer 4516752 0.65
17/08/2018 -32557 Transfer 4484195 0.64
05/10/2018 -783648 Transfer 3700547 0.53
28/12/2018 -238194 Transfer 3462353 0.49
04/01/2019 -64596 Transfer 3397757 0.49
11/01/2019 -201860 Transfer 3195897 0.46
18/01/2019 -820695 Transfer 2375202 0.34
08/02/2019 -526798 Transfer 1848404 0.26
15/02/2019 -128244 Transfer 1720160 0.25
01/03/2019 -269714 Transfer 1450446 0.21
08/03/2019 -88000 Transfer 1362446 0.19
22/03/2019 -213390 Transfer 1149056 0.16
31/03/2019 1149056 0.16
11 Fidelity Investment Trust -
6178722 0.88 01/04/2018 6178722 0.88
Fidelity Emerging Market Fund#
18/05/2018 664697 Transfer 6843419 0.98
06/07/2018 -72658 Transfer 6770761 0.97
21/09/2018 -115400 Transfer 6655361 0.95
05/10/2018 324800 Transfer 6980161 1.00
12/10/2018 379300 Transfer 7359461 1.05
02/11/2018 37940 Transfer 7397401 1.06
09/11/2018 -23378 Transfer 7374023 1.05
16/11/2018 -3115368 Transfer 4258655 0.61
23/11/2018 -766838 Transfer 3491817 0.50
30/11/2018 -1683262 Transfer 1808555 0.26
07/12/2018 -1808555 Transfer 0 0.00
31/03/2019 0 0.00
12 UTI-MID Cap Fund* 3951867 0.56 01/04/2018 3951867 0.56
13/04/2018 39200 Transfer 3991067 0.57
20/04/2018 60080 Transfer 4051147 0.58
27/04/2018 63883 Transfer 4115030 0.59
04/05/2018 5692 Transfer 4120722 0.59
11/05/2018 73337 Transfer 4194059 0.60
18/05/2018 86122 Transfer 4280181 0.61
24/08/2018 32114 Transfer 4312295 0.62
14/09/2018 -47745 Transfer 4264550 0.61
19/10/2018 72226 Transfer 4336776 0.62
30/11/2018 433657 Transfer 4770433 0.68
31/03/2019 4770433 0.68
13 Life Insurance Corporation of
4479249 0.64 01/04/2018 4479249 0.64
India P & GS Fund
06/04/2018 649550 Transfer 5128799 0.73
40
Indraprastha Gas Limited | 20th Annual Report 2018-19
Sl. Name of the Share Holder Shareholding at the beginning of the Year Reason Cumulative
no Shareholding during
the Year
No of % of total Date Increase/ No of % of total
Shares shares Decrease Shares shares
of the in share of the
Company holding Company
13/04/2018 37929 Transfer 5166728 0.74
20/04/2018 1134685 Transfer 6301413 0.90
27/04/2018 491000 Transfer 6792413 0.97
04/05/2018 398585 Transfer 7190998 1.03
21/12/2018 253000 Transfer 7443998 1.06
28/12/2018 251710 Transfer 7695708 1.10
31/12/2018 100000 Transfer 7795708 1.11
04/01/2019 50000 Transfer 7845708 1.12
18/01/2019 200000 Transfer 8045708 1.15
25/01/2019 41052 Transfer 8086760 1.16
01/02/2019 341028 Transfer 8427788 1.20
08/02/2019 35956 Transfer 8463744 1.21
15/02/2019 431000 Transfer 8894744 1.27
22/02/2019 198177 Transfer 9092921 1.30
01/03/2019 274609 Transfer 9367530 1.34
08/03/2019 184000 Transfer 9551530 1.36
31/03/2019 9551530 1.36
14 Sundaram Mutual Fund A/C -
4385765 0.63 01/04/2018 4385765 0.63
Sundaram Select Midcap Fund
31/03/2019 4385765 0.63
*Not in the list of Top 10 shareholders as on 01-04-2018. The same has been reflected above since the shareholder was one of the Top 10 shareholders
as on 31-03-2019.
#ceased to be in the list of Top 10 shareholders as on 31-03-2019. The same is reflected above since the shareholder was one of the Top 10 shareholders
as on 01-04-2018.
Shri E. S. Ranganathan, Managing Director holds 500 shares in the Company as on March 31, 2019. Except Shri E. S. Ranganathan,
none of the Directors and Key Managerial Personnel are holding equity shares in the Company as on March 31, 2019.
V. Indebtedness
INDEBTEDNESS - Indebtedness of the Company including interest outstanding/accrued but not due for payment as on 31.03.19
(Rs. in Crores)
Secured Loans Unsecured Deposits Total
excluding Loans Indebtedness
deposits
Indebtedness at the beginning of the financial year
i) Principal Amount - - - -
ii) Interest due but not paid - - - -
iii) Interest accrued but not due - - - -
Total (i+ii+iii) - - - -
Change in Indebtedness during the financial year - - - -
* Addition
* Reduction
Net Change - - - -
Indebtedness at the end of the financial year - - - -
41
(Rs. in Crores)
Secured Loans Unsecured Deposits Total
excluding Loans Indebtedness
deposits
i) Principal Amount - - - -
ii) Interest due but not paid
iii) Interest accrued but not due
Total (i+ii+iii) 0.00 - - 0.00
(Rs. in Lakhs)
Sl. Particulars of Remuneration Name of MD/WTD/Manager Total Amount
No. Shri E. S. Shri V. Shri Rajiv
Ranganathan Nagarajan ** Sikka##
1. Gross Salary 94.41 12.79 80.41 187.61
(Secondment charges paid to promoters including
GST)@@
(a) Salary as per provisions contained in section - - - -
17(1) of the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) of Income-tax - - - -
Act, 1961
(c) Profits in lieu of salary under section 17(3) of - - - -
Income- tax Act, 1961
2. Stock Option - - - -
3. Sweat Equity - - - -
4. Commission^^
- as % of profit 7.5 1.11 6.39 15
- others, specify
5. Others
Total(A) 101.91 13.90 86.80 202.61
Ceiling as per the Act***
1 Independent Directors Shri S. S. Shri Prof. V. Shri Dr. Dr. A. K. Smt. Shri R. S.
Rao Santosh Ranganathan Raghu Sudha Ambasht Saroj Sahoo
Kumar Nayyar Sharma Bala
Bajpai
Fee for attending board / 5,25,000 3,45,000 2,75,000 6,95,000 6,45,000 80,000 55,000 55,000 26,75,000
committee meetings
Commission 4,06,849 4,06,849 4,06,849 7,25,342 7,25,342 1,00,685 1,00,685 1,00,685 29,73,286
Others, please specify - - - - - - - -
Total (1) 9,31,849 7,51,849 6,81,849 14,20,342 13,70,342 1,80,685 1,55,685 1,55,685 56,48,286
42
Indraprastha Gas Limited | 20th Annual Report 2018-19
2 Other Non-Executive Shri S. Shri Shri Arun Shri Shri S. Shri RP Smt.
Directors Ramesh Gajendra Kumar Singh Manoj Jain Bairagi Natekar Varsha
Singh Joshi
Fee for attending board/ 0 1,15,000 60,000 80,000 2,95,000 190000 30000 7,70,000
committee meetings
Commission 3,61,644 1,58,219 2,15,753 1,97,260 3,94,521 1,58,219 750000 22,35,616
Others, please specify - - - - - - -
Total (2) 3,61,644* 2,73,219* 2,75,753* 2,77,260* 6,89,521* 3,48,219* 7,80,000* - 30,05,616*
Total (B)=(1+2) 86,53,902
Ceiling as per the Act**
43
ANNEXURE 6
1. Installation of APFC (Automatic Power Factor Controller) panels at 18 CNG stations in UP:- Automatic power factor controller
has been installed at identified 18 CNG stations with 4 quadrant energy meter, in order to maintain power factor to ~ 0.99.
2. Installation of BLDC ceiling fans: - Conventional ceiling fans have been replaced by Brushless DC motor based ceiling fans,
having approx. 67% more efficiency than conventional fans.
3. Installation of LED light fittings at IGL CNG stations: - Proposal for replacement of Conventional light fittings (HPMV / CFL /
Fluorescent tube) by energy efficient LED light fittings is under progress at all IGL owned CNG stations.
4. VAM (Vapor Absorption Machine) of IGL Bhawan has been upgraded (with installation of new VAM) which has helped in
efficient temperature maintenance inside the building. The OLD VAM was to be run for much more time to get the same
amount of cooling inside the building thereby helping in energy savings.
5. Low power consuming Seitz electro valves were installed in 20 Delta dispensers. This has resulted in reducing the running
hours of air compressors.
(ii) Steps taken by the Company for utilising alternate sources of energy:
Nil
Rs. 4.22 Crores towards Installation of APFC (Automatic power factor controller) panels, BLDC ceiling fans and LED light
fittings at IGL CNG stations
B. Technology Absorption
(i) The efforts made towards technology 1. Siemens S7-200 model of PLC was upgraded by S7-1200 PLC in 10 nos. of
Absorption; Delta motor driven compressors installed at CNG stations.
2. LoRa based communication technology is absorbed for Prepaid AMR system.
3. AMR implemented to Customers having gas consumption more than 10
SCM/day.
4. Pre-paid gas metering system implemented for all domestic customers in
Rewari, geographical area.
(ii) the benifits derived like product 1. (i) New model is having high processing speed & Automation/ SCADA
improvement, Cost reduction, product compatibility.
development on import substitution (ii) Breakdown hours reduced & availability of machines is increased.
(iii) New PLC is 70% cheaper than old model.
2. LoRa technology offers several advantages i.e.
• The LoRa physical layer utilizes ISM bands 868 and 915 MHz — frequencies
that are free to use anywhere in the world.
• LoRa devices consume very little power making it ideal for battery-
powered devices
• It can transmit and receive data for up to 15 km in suburban areas and 5
km in urban areas.
44
Indraprastha Gas Limited | 20th Annual Report 2018-19
(Rs. in Crores)
Foreign Exchange Earned 0.01
Foreign Exchange Used 7.52
45
Report on Corporate Governance
I. Company’s Philosophy on Corporate Governance
The Company’s philosophy on the Code of Corporate Governance is as follows:
a) To ensure transparency, high degree of disclosure and adequate control system;
b) To ensure that the decision making process is systematic and rational;
c) To ensure full commitment of the Management to enhance stakeholders’ value;
d) To ensure that the employees of the Company subscribe to the corporate values and apply them in their conduct.
Composition:
As on March 31, 2019, the Board of the Company consists of 8 (Eight) Directors comprising 2 (two) Executive Directors
namely Managing Director and Director (Commercial) and 6 (six) Non-Executive Directors.
The composition and category of Directors alongwith other Directorships or Memberships in Board Committees as on
March 31, 2019:
Shri E. S. Ranganathan holds 500 shares in the Company. There are no relationships between Directors inter-se.
During the financial year ended March 31, 2019, ten Board Meetings were held on May 23, 2018, July 5, 2018, July 7, 2018,
August 10, 2018, October 6, 2018, November 5, 2018, January 7, 2019, January 17, 2019, February 6, 2019 and March 27,
2019 . The last Annual General Meeting was held on September 26, 2018.
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Indraprastha Gas Limited | 20th Annual Report 2018-19
The attendance of each Director at Board Meetings and the last Annual General Meeting was as under:
*Percentage computed by considering the meetings attended with the total meetings held during their tenure.
†Shri S. Ramesh ceased as Director & Chairman w.e.f. September 24, 2018.
‡Shri Arun Kumar Singh appointed as Additional Director & Chairman w.e.f. October 1, 2018 and ceased as Additional Director & Chairman w.e.f.
January 14, 2019.
§Sh. Gajendra Singh appointed as Additional Director & Chairman w.e.f. January 14, 2019.
**Shri V. Nagarajan ceased as Director (Commercial) w.e.f. May 25, 2018.
††Sh. Rajiv Sikka appointed as Director (Commercial) w.e.f. May 25, 2018.
‡‡Shri Manoj Jain ceased as Director w.e.f. July 6, 2018.
§§Shri S. Bairagi appointed as Additional Director w.e.f. July 6, 2018 and ceased as Director w.e.f. January 14, 2019.
***Sh. R.P. Natekar appointed as Additional Director w.e.f. January 14, 2019.
†††Shri S. S. Rao, Prof. V. Ranganathan & Shri Santosh Kumar Bajpai ceased to be Director w.e.f. October 16, 2018.
‡‡‡Dr. Sudha Sharma & Shri Raghu Nayyar ceased to be Director w.e.f. March 20, 2019.
§§§Shri R. S. Sahoo, Smt. Saroj Bala & Dr. A. K. Ambasht appointed as Additional Directors w.e.f. February 11, 2019.
Brief details of familiarization programmes of Independent Directors are uploaded on the website of the Company –
https://iglonline.net/english/5000_media/Investor_Relations/Familiarization-Programmes-for-Independent-Directors.pdf
The Board has identified the following skills/expertise/ competencies fundamental for the effective
functioning of the Company which are currently available with the Board:
1. Financial: Management of the finance function, understanding & review of financial statements, financial controls,
risk management, acquisitions, etc..
2. Strategy and Planning: Appreciation of long-term trends, strategic choices and experience in guiding and leading
management teams to make decisions in uncertain environments.
3. Sales and marketing: Experience in developing strategies to grow sales, build brand awareness, and enhance
enterprise reputation.
4. Project Management: Execution of projects in timely manner in existing & new geographical areas.
5. Governance: Experience in developing governance practices, serving the best interests of all stakeholders, building
long-term effective stakeholder engagements.
47
Independent Directors confirmation by the Board
All Independent Directors have given declarations that they meet the criteria of independence as laid down of the
Companies Act, 2013 and the Listing Regulations. In the opinion of the Board, the Independent Directors, fulfil the
conditions of independence specified in the Companies Act, 2013 and Listing Regulations.
M/s V. K. Sharma & Co., Practicing Company Secretaries, Noida, has issued a certificate pursuant to clause 10 of Part C of
Schedule V of Listing Regulations.
Code of Conduct
The Board of Directors has laid down a Code of Conduct, which is applicable to all Board Members and Senior Management
of the Company. The Code has also been posted on the website of the Company.
All Board Members and Senior Management Executives have affirmed compliance with the Code of Conduct. The
declaration signed by the Managing Director affirming compliance to the Code by the Board Members and the Senior
Management forms part of this Report.
Composition:
The Audit Committee comprises of three Directors of which two are Non-Executive Independent Directors. The Chairman
of the Committee is a Non-Executive Independent Director. All Members of the Committee have good financial and
accounting knowledge. The Managing Director, Director (Commercial) and Auditors are invitees to the Audit Committee
Meetings. The Company Secretary acts as a Secretary to the Committee.
The minutes of the Audit Committee Meetings are noted by the Board of Directors at the subsequent Board Meeting.
*Shri R. S. Sahoo appointed as a Chairman and Member of the Audit Committee w.e.f. March 28, 2019.
†Dr. A. K. Ambasht appointed as Member of the Audit Committee w.e.f. March 28, 2019.
‡Sh. R. P. Natekar appointed as Member of Audit Committee w.e.f. January 14, 2019.
Terms of Reference:
The Term of reference of Audit Committee for the financial year ended March 31, 2019 includes overseeing the audit
functions, review of Company’s financial performance, review critical findings of Internal Audit, compliance with the
Accounting Standards, approval or any subsequent modification of transactions of the Company with the related
parties, evaluation of internal financial controls and risk management systems & all other matters specified under Listing
Regulations and in Section 177 of the Companies Act, 2013.
During the financial year ended March 31, 2019, eight Audit Committee meetings were held on May 23, 2018, July 5, 2018,
July 7, 2018, August 10, 2018, October 6, 2018, November 5, 2018, January 7, 2019 and February 6, 2019.
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Indraprastha Gas Limited | 20th Annual Report 2018-19
The constitution of the Nomination and Remuneration Committee as on March 31, 2019: -
*Dr. A. K. Ambasht appointed as a Chairman & Member of the Committee w.e.f. March 28, 2019.
†Shri R. S. Sahoo appointed as a Member of the Committee w.e.f. March 28, 2019.
‡Shri Gajendra Singh appointed as a Member of the Committee w.e.f. January 14, 2019.
§Shri R P Natekar appointed as a Member of the Committee w.e.f. January 14, 2019.
The minutes of the Nomination and Remuneration Committee Meetings are noted by the Board of Directors at the
subsequent Board Meeting.
During the financial year ended March 31, 2019, six Nomination and Remuneration Committee Meetings were held on
May 15, 2018, June 22, 2018, September 26, 2018, October 6, 2018, December 11, 2018 and January 17, 2019.
The attendance of the Members of Nomination and Remuneration Committee Meetings was as under: -
49
Name of Members No. of Meetings Attended
Dr. A. K. Ambasht‡‡ NA
Shri R. S. Sahoo§§ NA
*Dr. Sudha Sharma ceased to be a Chairman & Member of the Committee w.e.f. March 20, 2019.
†Shri Raghu Nayyar ceased to be Member of the Committee w.e.f. March 20, 2019.
‡Shri Manoj Jain ceased to be a Member of the Committee w.e.f. July 6, 2019.
§Shri S. Bairagi appointed as a Member of the Committee w.e.f. July 6, 2019 and ceased to be Member w.e.f. January 14, 2019.
**Shri Gajendra Singh appointed as a Member of the Committee w.e.f. January 14, 2019.
††Shri R P Natekar appointed as a Member of the Committee w.e.f. January 14, 2019.
‡‡Dr. A. K. Ambasht appointed as a Chairman & Member of the Committee w.e.f. March 28, 2019.
§§Shri R. S. Sahoo appointed as a Member of the Committee w.e.f. March 28, 2019.
Terms of Reference
The term of reference of the Nomination and Remuneration Committee includes determining the criteria of appointment
to the Board and to identify candidates for appointment to the Board of Directors and senior management and evaluate
their performance.
The Nomination & Remuneration Committee has laid down criteria such as attendance and participation in the meetings,
adherence to ethical standards, integrity, code of conduct, interpersonal relations with other Directors, safeguard
of confidential information of the Company, observing corporate governance standards, safeguard the interest of all
stakeholders in the decision making etc. to carry out performance evaluation of every Director including Independent
Directors.
a. Executive Directors:
The remuneration paid to the Executive Directors (i.e. Managing Director & Director (Commercial)) is disclosed in the
Directors’ Report of the Company.
b. Non-Executive Directors:
Total commission on profit of Rs. 67.08 Lakhs was payable to non-executive Directors / their parent organizations for
the financial year 2018-19.
Non-Executive Directors were paid sitting fees of Rs. 30,000/- and Rs. 25,000/- for attending each Board meeting &
Committee meeting respectively. Total sitting fees paid during the financial year under review was Rs. 34.45 Lakhs.
Remuneration Policy
The Managing Director and Director (Commercial) are nominated by GAIL (India) Limited (GAIL) and Bharat Petroleum
Corporation Limited (BPCL) respectively and the terms and conditions of their appointment including remuneration are
advised by their parent organizations.
Board of Directors of the Company approved the new remuneration policy effective from April 1, 2018 after considering
the recommendations of Nomination & Remuneration Committee.
Composition:
The Share Transfer & Stakeholders’ Relationship Committee constituted by the Board comprises of three members with
an Independent Non-Executive Director as Chairperson of the Committee.
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Indraprastha Gas Limited | 20th Annual Report 2018-19
The constitution of the Share Transfer & Stakeholders Relationship Committee as on March 31, 2019:
The minutes of the Share Transfer & Stakeholder Relationship Committee Meetings are noted by the Board of Directors at
the subsequent Board Meeting.
During the financial year ended March 31, 2019, three Share Transfer & Stakeholders Relationship Committee Meetings
were held on April 26, 2018, September 26, 2018 and March 14, 2019.The attendance of the Members (as on March 31,
2019) of Share Transfer & Stakeholders Relationship Committee Meetings was as under: -
Name of Members No. of Meetings Attended
Shri Raghu Nayyar* 3
Smt. Saroj Bala† NA
Shri E. S. Ranganathan 3
Shri Rajiv Sikka 3
*Shri Raghu Nayyar ceased to be a Chairman & Member of the Share Transfer & Stakeholders Relationship Committee w.e.f. March 20, 2019.
†Smt. Saroj Bala appointed as Chairperson of the Committee w.e.f. March 28, 2019.
The scope & functions of the Committee inter alia include approval of transfer and transmission of shares and other matters
like consolidation/splitting of certificates, issue of duplicate share certificates, dematerialization / re-materialisation of shares
in stipulated period of time. The Committee also considers and resolves the grievances of the security holders including
complaints related to transfer of shares / non receipt of annual reports, dividends and ensures cordial investor relations.
Compliance Officer:
Shri S. K. Jain, Company Secretary is the Compliance Officer.
The Company received 31 complaints during the year, which were duly attended & replied. There was no complaint
pending as on March 31, 2019.
51
Meeting Date Time Venue Detail of Special Resolutions Passed
18th AGM September 28, 2017 11:30 A.M. Manekshaw Centre, New 1. Approval of amendment of Clause V of
Delhi Memorandum of Association of the Company.
2. Approval of amendment of Article 3 of
Articles of Association of the Company.
19th AGM September 26, 2018 11:30 A.M. Manekshaw Centre, New 1. Re-appointment of Shri Raghu Nayyar as an
Delhi Independent Director of the Company.
2. Re-appointment of Dr. Sudha Sharma as an
Independent Director of the Company.
During the year under review, there have been no resolutions passed by the Company’s shareholders through postal
ballot. At the ensuing Annual General Meeting, no resolution is proposed to be passed by postal ballot.
VII. Disclosures
The Company has entered into transactions with the Promoters, Directors or the Management, but they do not have
potential conflict with the interests of the Company at large. Transactions with related parties are being disclosed
separately in the Annual Report.
The Company has formulated a Policy on materiality of Related Party Transactions and on dealing with Related Party
Transactions and the same has been disclosed on the website of the Company at web link http://www.iglonline.net/
english/5000_media/About_us/Related-Party-Policy.pdf
BSE Ltd. and National Stock Exchange imposed the fine of Rs. 1,30,400 each (plus GST @ 18%) on the Company for the
delay of 26 days in appointment of Independent Directors as per Regulation 17(1) of the Listing Regulations.
Other than the above mentioned fine, during the last three years, there were no strictures or penalties imposed on the
Company either by the Stock Exchanges or SEBI, or any statutory authority for non-compliance of any matter related to
capital markets.
The Company has a Whistle Blower Policy for employees, Directors, vendors and suppliers of the Company to come
forward and raise their genuine concerns without any fear of retaliation and victimization. The Company has appointed
an independent third party as service provider to manage the operations of whistle-blower hotline. The complainant may
also reach out to Chairman of the Audit Committee directly in appropriate or exceptional circumstances by submitting a
written complaint. No personnel was denied access to the Audit Committee.
Besides Whistle Blower Policy, the Company also has separate Vigil Mechanism for the stakeholders of the Company.
Chief Ethics Officer has been appointed for looking complaints under Vigil Mechanism Policy.
The details of total fees for all services paid by the Company, on a consolidated basis, to the statutory auditor and all
entities in the network firm / network entity of which the statutory auditor is a part, are as under :
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Indraprastha Gas Limited | 20th Annual Report 2018-19
The details of complaints filed, disposed of and pending during the financial year pertaining to sexual harassment is
provided in the Business Responsibility Report of this Annual report.
The Company has complied with the requirements stipulated under Regulations 17 to 27 and clauses (b) to (i) of sub-
regulation (2) of Regulation 46 of Listing Regulations, 2015 except Regulation 17(1) pertaining to composition of Board i.e.
less than 50% Independent Director on Board of the Company for 26 days.
The quarterly and half-yearly results are forthwith communicated to the BSE Ltd. (BSE) and the National Stock Exchange
of India Ltd. (NSE), where the shares of the Company are listed, as soon as these are approved and taken on record by the
Board of Directors of the Company. The results are published in leading newspapers, such as Business Standard/Financial
Express in English, Jansatta/Hindustan in Hindi, alongwith the official news releases. The results and presentations made
to institutional investors/analyst are available on the Company’s website under ‘Investor Relations’.
For investors, the Company has created a separate e-mail ID i.e. [email protected].
Management Discussion & Analysis is separately annexed and is forming a part of Annual Report.
The 20th Annual General Meeting of the Company is scheduled to be held on: -
Date and Time. : September 24, 2019 at 11:30 A.M.
Venue : Air force Auditorium, Subroto Park, New Delhi - 110 021
(d) Date of Book Closure for Dividend : September 14, 2019 to September 24, 2019 (both days inclusive)
(e) Dividend Payment Date : On or after October 1, 2019
The Company has paid the listing fees to BSE and NSE for the financial year 2018-19 within due date.
53
(g) ISIN Number : INE203G01027
(h) Market Price Data & Share price performance:
At BSE
The Company has appointed M/s Karvy Fintech Private Limited, Hyderabad as its Registrar and Share Transfer Agent, to
whom communications regarding change of address, change of mandate, split/consolidation/transfer of shares etc. can
be addressed. The address of the Registrar and Share Transfer Agent is as under: -
Karvy Fintech Private Limited, Unit- Indraprastha Gas Limited, Karvy Selenium Tower B, Plot No 31 & 32,
Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad – 500 032.
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Indraprastha Gas Limited | 20th Annual Report 2018-19
The shares of the Company are compulsorily traded in dematerialized form. Shares received in physical form are
transferred within a period of 15 days from the date of receipt of request subject to documents being found valid and
complete in all respects.
(k) Distribution of shareholding as on March 31, 2019:
55
(m) Dematerialisation of Shares and Liquidity: -
The shares of the Company are compulsorily traded in dematerialized form, 94.99% of equity shares have been
dematerialized as on March 31, 2019.
The equity shares of the Company are actively traded at BSE & NSE.
(n) Outstanding GDRs/ ADRs/ Warrants or any Convertible instruments, conversion date and likely impact on
equity:
The Company Secretary, Indraprastha Gas Limited, IGL Bhawan, Plot No.4, Community Centre, Sector-9, R.K. Puram, New
Delhi-110022.
The Company has 500 CNG stations as on March 31, 2019 spread all around the National Capital Territory of Delhi and in
National Capital Region.
Non-Mandatory Requirements
The Company has a Non-Executive Chairman and it bears the expenses, if any, incurred by him while performing
duties for the Company.
2. Shareholders’ Right
As the Company’s half-yearly results are published in English newspapers having circulation all over India and in a
Hindi newspaper widely circulated in New Delhi, the same are not sent to each household of shareholders.
Quarterly/Half yearly financial performance of the Company, are displayed on the website of the Company.
Declaration
In terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is hereby declared that all the
Board members and the Senior Management personnel of the Company have affirmed compliance with the Code of
Conduct for the year ended March 31, 2019.
Sd/-
Place: New Delhi. (E. S. Ranganathan)
Date: August 14, 2019 Managing Director
56
Indraprastha Gas Limited | 20th Annual Report 2018-19
To,
The Members of
INDRAPRASTHA GAS LIMITED
IGL BHAWAN, PLOT NO.4, COMMUNITY CENTRE SECTOR-9,
R. K. PURAM NEW DELHI DL 110022
We, V. K. Sharma & Co. Company Secretaries have examined the relevant registers, records, forms, returns and disclosures
received from the Directors of INDRAPRASTHA GAS LIMITED having CIN L23201DL1998PLC097614 and having registered
office at IGL Bhawan, Plot No. 4, Community Centre Sector-9, R. K. Puram New Delhi - 110022 (hereinafter referred to
as ‘the Company’), produced before me/us by the Company for the purpose of issuing this Certificate, in accordance with
Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verifications (including Directors Identification Number
(DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company & its
officers, we hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year
ending on 31st March, 2019 have been debarred or disqualified from being appointed or continuing as Directors of companies
by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority except that
Ms. Varsha Joshi, the director of the Company as on 31 March 2019, has not provided a written representation as to whether
any Company in which she is a director as on 31 March 2019, had not defaulted in terms of sub-section (2) of the section 164
of the Act. In the absence of this representation, we are unable to comment whether she is disqualified from being appointed
as a director under sub-section (2) of section 164 of the Act. However, she has vacated office as a director of the Company with
effect from 23 May 2019.
Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management
of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an
assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has
conducted the affairs of the Company.
Sd/-
(V. K Sharma )
Place: Noida FCS NO.: 3440
Date: August 14, 2019 C P NO. :2019
57
Auditors’ Certificate on Corporate
Governance
To the Members of
INDRAPRASTHA GAS LIMITED
1. We have examined the compliance of conditions of Corporate Governance by Indraprastha Gas Limited (‘the Company’),
for the year ended 31 March,2019 as stipulated in the relevant clauses of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (‘Listing Regulations’) and Schedule V to the Listing Regulations.
2. The compliance of the conditions of corporate governance is the responsibility of the Management. Our examination
was limited to the procedures and implementation thereof, adopted by the company for ensuring the compliance of the
conditions of corporate governance. It is neither an audit nor an expression of opinion on the financial statements of the
company.
3. In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company
has complied with the conditions of Corporate Governance as stipulated in the above-mentioned Listing Regulations
except that the appointment of requisite number of independent directors was made 26 days after the mandatory period
of three months as permitted under the Regulations.
4. We further state that the compliance is neither an assurance as to the future viability of the company nor the efficiency or
effectiveness with which the management conducted the affairs of the Company.
Sd/-
(V. K Sharma )
Place: Noida FCS NO.: 3440
Date: August 14, 2019 C P NO. :2019
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Indraprastha Gas Limited | 20th Annual Report 2018-19
Indraprastha Gas Limited (Company) is a joint venture 70000 46.40% 47.20% 50.00%
44.60%
40.70%
promoted by GAIL (India) Limited and Bharat Petroleum 60000 36.30% 40.00%
Corporation Limited (BPCL). Government of NCT of Delhi is 50000
31731 32056 30.00%
also a stakeholder with 5% equity. The Company is in City 40000 31129 30848
32693
Gas Distribution (CGD) business supplying natural gas to 30000 20.00%
transport, domestic, commercial and industrial consumers. 20000
28692
21388 24849 27439 10.00%
The operations of IGL is spread over NCT of Delhi, Noida, 10000 18607
Greater Noida, Ghaziabad, Gurugram, Meerut (except area 0 0.00%
2014-15 2015-16 2016-17 2017-18 2018-19
already authorised), Shamli, Muzaffarnagar, Karnal and
Rewari. The Company has received authorisation from LNG Import Net Production Import dependency (%)
PNGRB to set up CGD network in the geographical areas
of Kanpur (except areas already authorized), Hamirpur The major sectors that contribute towards growth of natural gas
& Fatehpur districts, Kaithal district and Ajmer, Pali & are power, fertilizers, steel, petrochemical and CGD industry.
Rajsamand districts.
Natural gas industry in India is likely to grow faster in the
The Company has two associates which also operates as CGD coming years due to push given by government to make
Companies. Central UP Gas Limited (CUGL), caters to the India, a gas based economy.
cities of Kanpur, Bareilly, Unnao and Jhansi in Uttar Pradesh
and Maharashtra Natural Gas Limited (MNGL), caters to the City Gas Distribution Sector in India
city of Pune and nearby areas of Pimpri, Chinchwad, Chakan,
City Gas Distribution (CGD) is emerging as one of the fastest
Talegaon and Hinjewadi in the State of Maharashtra.
growing sector in India. Government of India has given
With a modest beginning in the year 1998, the Company has thrust to this sector by pushing expansion of CGD network
become a leading CGD Company of the country today. across the country. The financial year 2018-19 laid the strong
foundation for future expansion of CGD sector. During this
year, PNGRB invited bids in its 9th & 10th round for setting up
Indian Natural Gas Scenario CGD network in various parts of the country. In 10th round of
bidding, PNGRB covered 50 geographical areas spread over
India is one of the largest natural gas consumer in the
in 14 states and 124 districts. It would increase coverage of
world and also one of the fastest growing energy consumer.
CGD cumulatively to 70% of the country’s total population
However, share of natural gas constitutes around 6% in the
and 50% of country’s area.
country primary energy mix as against 24% in the world.
Government has been taking various steps to increase share The total investment for setting up CGD networks under 9th
of natural gas in primary energy mix to 15% in the coming and 10th bidding rounds is expected to be more than Rs.
years. In this regard, thrust has been given to increase 1,00,000 Crores in the next 8 years. These CGD bidding rounds
domestic gas production, encourage import of Liquified will create employment generation potential for around 3 lacs
Natural Gas (LNG) and augment LNG import capacity, person in skilled, semi-skilled and non-skilled category.
completion of national gas grid, faster roll out of city gas
distribution network across the country, etc. The government has also planned to connect 1 Crore
households with PNG supply for cooking purpose by 2020.
The domestic natural gas net production showed a growth of
1.02% from 31,731 mmscm in FY2017-18 to 32,056 mmscm in In order to give boost to the CGD sector, the government has
FY2018-19. Total import of LNG during FY 2018-19 increased taken many steps such as:
by 4.56% to 28692 mmscm from 27,439 mmscm in the
previous year. The share of import of LNG has been showing i. Meeting the entire requirement of gas for transport and PNG
an upward trend over the years and constitutes almost half domestic households of CGD companies in the country.
of the total consumption of gas in the country. ii. According the status of public utility to CGD sector.
iii. Issuing guidelines for allowing the development of PNG
network into defence establishment across the country.
59
iv. Advising state governments to standardise the road • Piped Natural Gas (PNG) - The total sales of PNG grew
restoration/permission charges and keeping provisions by 35% to Rs. 1576 Crores in FY2018-19 from Rs. 1165
of land for CNG stations in their master plans. Crores in FY 2017-18. Sales volume of PNG increased
from 479 mmscm in previous year to 553 mmscm in
The widespread coverage of CGD network across the country FY 2018-19, registering a growth rate of 15.45%. IGL
and government initiative to boost this sector would bring a provided 2.10 lacs new PNG connections during FY
number of opportunities for CGD companies in the country. 2018-19. As on March 31, 2019, total PNG connections
were provided to 11.02 Lakh households and 4276
Your Company being a leading and premier CGD Company
Commercial & Industrial consumers. The Company’s
in the market is fully geared to leverage its execution
pipeline infrastructure expanded from 11,673 kms in FY
capabilities and expertise for future growth.
2017-18 to 13,028 kms in FY 2018-19.
Performance Analysis Segment-Wise Sales Volume
i. Financial Performance
6%
IGL witnessed the following financial growth on
8%
standalone basis during the year under review:
The Company has its presence in following segments: Cost competitiveness: CNG is economical as compared
to other liquid fossil fuels such as petrol/diesel. This would
• Compressed Natural Gas (CNG) - IGL’s majority portion of
continue to push the conversion of vehicles to CNG mode.
the revenue accrues from sales of CNG amounting to Rs.
4761 Crores in FY 2018-19, accelerating at growth rate of Thrust on PNG by Government: Government has
24% over previous year. The Company has 500 stations envisaged to provide 1 Crore connections by 2020 and has
through which it provided gas to 10.7 lakh vehicles, with set aggressive targets for providing PNG connections. In line
an average sale of 31.34 lakh kg per day in 2018-19. of the same, your Company has also set high targets for PNG
domestic connections.
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Indraprastha Gas Limited | 20th Annual Report 2018-19
Smart Cities: The government of India is in the process However, the Company has a strong financial position and
of developing smart cities. These cities will have a strong credit rating which will help the Company to mitigate this
infrastructure of clean and efficient fuel which would add to the risk. Healthy profitability, strong cash flow from operations,
growth prospects of the Company. zero debt, and comfortable working capital position helps
the Company to maintain its financial position.
Concern for pollution: There is a concern for increased
population in the country. In order to curb the same, judiciary, Fire & Safety Risk- The Company is in gas distribution
central and state governments are giving boost to eco-friendly business and fire & safety is a major concern.
fuel i.e. CNG and PNG.
The Company gives utmost priority to this area and has
robust system and procedures which helped it to record 161
Threats, Risk & Concerns and Mitigations
million accident free man hours as on March 31, 2019.
Growing importance to electric vehicles: The popularity
of Electric enabled vehicles have been growing in India Internal Control
with government introducing various incentive schemes. In
medium to long term, these cars may pose a potential threat The Company has adequate internal control procedures
to CNG run vehicles. commensurate with the size and nature of its business.
During the FY 2018-19, M/s PriceWaterhouse, Chartered
The Company is preparing itself for meeting the challenge by Accountants and in-house audit team carried out internal
becoming a part of value chain in electric car business. It has audits and the internal audit reports prepared by them were
entered into a MoU with a reputed Company for putting up placed before the Audit Committee.
charging facilities at its stations.
Your Company has already established the CGD infrastructure Environmental consciousness
across all parts of NCT of Delhi. The setting up of new CGD
Natural gas is an environment friendly fuel and emerging as
infrastructure would be a major challenge for any new
a fuel for the future. There is an endeavour on part of the
entrant in the prevailing scenario.
government to increase its share in the total energy basket
Non-availability of Natural Gas: Domestic Natural Gas is a of the country. The Company is making continuous efforts to
scarce resource. The non-allocation of the required amount promote its wider use among all categories of prospective
of low cost natural gas by government may have an adverse customers. To ensure this, awareness is spread among all
impact on margins. the users regarding the economical and environmental
advantages of natural gas when compared to other fuels.
However, considering the thrust of the government for The Company is promoting usage of natural gas as a fuel to
promoting eco-friendly fuel and firm allocation of gas for reduce pollution in Delhi and its adjoining areas.
transport and PNG domestic segments, it is expected that
the Company would continue to get assured supply of gas at
an affordable price.
Cautionary statement
The Statement in this Management Discussion and Analysis
Competition from Alternate Fuels: The Company’s
Report describing the Company’s objectives, projections,
customers also have an alternative to move towards other
estimates, expectations or predictions may be ‘forward
fuels if there is a cost advantage. If such a scenario arises
looking statements’ within the meaning of applicable laws
then it would impact Company’s business.
and regulations. Actual results might differ substantially
CNG constitutes around 75% of the total sales volume of or materially from those expressed or implied. Important
the Company and is very much competitive compared to developments that could affect the Company’s operations
alternate fuels i.e. petrol and diesel. include demand-supply conditions, changes in government
and international regulations, tax regimes, economic
Macro-economic scenario: The changing macro-economic developments within and outside India and other factors
scenario can have an impact on the growth plan of the such as litigation and labour relations.
Company.
61
Business Responsibility Report
[As per Regulation 34(2) (f)]
No
2. Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent company? If yes, then
indicate the number of such subsidiary company(s).
Not Applicable
3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with
participate in the BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities?
[>30%, 30-60%, < 60%]
No, none of the entity/entities with whom Company does business participates in the BR initiatives of the Company.
Company’s promoters i.e. GAIL (India) Limited (GAIL) and Bharat Petroleum Company Limited (BPCL) are required to
undertake BR activities and release their own BR reports.
62
Indraprastha Gas Limited | 20th Annual Report 2018-19
Section D: BR Information
1 Details of Director/Directors responsible for BR
The National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business released by the
Ministry of Corporate Affairs has adopted nine areas of Business Responsibility. These are as follows:
Business should conduct and Businesses should provide Businesses should promote the
govern themselves with Ethics, goods and services that are safe well-being of all employees.
Transparency and Accountability. and contribute to sustainability
throughout their life cycle.
Businesses should respect the Businesses should respect and Business should respect, protect
interests of and be responsive promote human rights and make efforts to restore the
towards all stakeholders, environment.
especially those who are
disadvantaged, vulnerable and
marginalized
63
Details of compliance (Reply in Y/N)
No. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
1 Do you have a policy/ policies for Yes No§ Yes No** Yes Yes Yes Yes Yes
2 Has the policy being formulated in consultation Yes NA Yes NA Yes Yes Yes Yes No††
with the relevant stakeholders?
3 Does the policy conform to any national / Yes∞ NA Yes∞ NA Yes∞ Yes∞ Yes∞ Yes∞ Yes∞
international standards? If yes, specify? (50 words)
4 Has the policy being approved by the Board? Yes NA Yes NA Yes Yes Yes Yes No
If yes, has it been signed by MD/ owner/ CEO/
appropriate Board Director?
5 Does the company have a specified committee Yes NA Yes NA Yes Yes Yes Yes Yes
of the Board/Director/Official to oversee the
implementation of the policy?
6 Indicate the link for the policy to be viewed online? Ref# NA Ref§§ NA Ref*** Ref††† Ref## Ref§§§ No
7 Has the policy been formally communicated to all Yes NA Yes NA Yes Yes Yes Yes No
relevant internal and external stakeholders?
8 Does the company have in-house structure to Yes NA Yes NA Yes Yes Yes Yes Yes
implement the policy/policies?
9 Does the Company have a grievance redressal Yes NA Yes NA Yes Yes Yes Yes Yes
mechanism related to the policy/ policies to address
stakeholders’ grievances related to the policy/ policies?
10 Has the company carried out independent audit/ Yes NA Yes NA Yes Yes Yes Yes Yes
evaluation of the working of this policy by an internal
or external agency?
§Company does not have specific policies regarding these aspects, considering the nature of Company’s business. However, the Company is taking
appropriate actions as and when required to address them
**Company doesn’t have specific policies regarding these aspects. However, Company is taking care of disadvantaged, vulnerable and marginalized
sections of the society through its various CSR programs
††PNGRB has a separate regulations “Petroleum and Natural Gas Regulatory Board (Code of Practice for Quality of Service for City or Local Natural
Gas Distribution Networks) Regulations, 2010” that details the standards of quality of services that a CGD entity has to abide by.
∞All policies have been developed as per the applicable legal framework
#http://www.iglonline.net/english/5000_media/About_us/Whistle-Blower-Policy.pdf
§§Policies are available to employees through intranet portal.
***Policy is available to employees through intranet portal.
†††http://www.iglonline.net//english/Default.aspx?option=article&type=single&id=71&mnuid=169&prvtyp=site
##http://www.iglonline.net/english/5000_media/About_us/Code-for-Fair-Disclosure.pdf
§§§http://www.iglonline.net//english/Default.aspx?option=article&type=single&id=38&mnuid=196&prvtyp=site
64
Indraprastha Gas Limited | 20th Annual Report 2018-19
Section E: Principle Wise Performance Principle 2 - Businesses should provide goods and
services that are safe and contribute to sustainability
Principle 1 - Business should conduct and govern throughout their life cycle
themselves with Ethics, Transparency and
Accountability 1. List up to 3 of your products or services whose design
has incorporated social or environmental concerns,
1. Does the policy relating to ethics, bribery and risks and/or opportunities?
corruption cover only the company? Yes/ No. Does
it extend to the Group/Joint Ventures/ Suppliers/ The Company is engaged in the business of providing
Contractors/NGOs /Others? natural gas and environmental friendly fuel for the
transportation, household cooking and to commercial
We have a code of conduct for board members and and industrial establishments in NCT of Delhi and
senior management and whistle blower policy applicable NCR. The business of the Company itself promotes a
to the employees, directors, vendors and suppliers of sustainable eco-friendly environment which ensures the
the Company. For more details, please refer to the Code sustainability of Company’s business. Air pollution has
of conduct webhosted on our website, at http://www. been a major concern for the country and particularly in
iglonline.net//English/5000_media/Investor_Relations/ National Capital and surrounding areas. The concern has
Code_of_Conduct.pdf. been raised at various forums for reducing the level of
pollutants and improving the air quality index. All public
The Whistle blower Policy is available on our website, at
transportation in NCT of Delhi is run on compressed
http://www.iglonline.net/english/5000_media/About_us/
natural gas which is a green fuel as well as cost effective
Whistle-Blower-Policy.pdf. In addition, the Company
compared to other fossil fuels such as petrol and diesel.
has a system for delegation of powers, contract &
Similarly, PNG used by households, commercial and
procurement manual and other policies to ensure that
industrial establishments are clean fuel and does not
day to day affairs of the Company are conducted in a
harm the environment. The Company has been able to
systematic and fair manner. The Company promotes at
implement CNG and PNG as green fuel since its inception
all levels ethics, transparency and fair dealing with the
and has contributed to improve the quality of air in its
various stakeholders of the Company.
area of operation. There is a continuous endeavour on
2. How many stakeholder complaints have been received the part of Company to make available environment
in the past financial year and what percentage was friendly fuel at a reasonable price to create pollution
satisfactorily resolved by the management? If so, free environment for the society. The Company has been
provide details thereof, in about 50 words or so. expanding its business not only in existing areas but also
has plans to enter into new geographical areas to supply
Company’s stakeholders include our investors, eco-friendly fuel.
employees, customers, vendors, government and local
communities. For investor complaint, please refer to 2. For each such product, provide the following details
‘investor complaint’ section in the corporate governance in respect of resource use (energy, water, raw
section of annual report. Most of the investor complaints material etc.) per unit of product (optional):
were related to dividend and non-receipt of annual
a.
Reduction during sourcing/production/
reports etc. Total 31 complaints were received during the
distribution achieved since the previous year
financial year. All investors’ grievances were disposed of
throughout the value chain?
and there was no pending complaint at the end of the
year. The Company is primarily in distribution and supply of
the natural gas to the business users and end consumers.
The complaints received from the customers are
We are sourcing APM and PMT gas from GAIL at a price
being addressed by Customer care cell of Marketing
determined by the Government of India for meeting
Department of the Company. The Chief Ethics Officer
the entire requirement of the transportation and PNG
appointed under vigil mechanism addresses the
domestic sector. The requirement of gas for commercial
complaints received from other stakeholders.
and industrial sector are met through various sources
i.e. GAIL, BPCL and other private players. With concerted
efforts, the Company has shown operational efficiency
by reducing the gas loss over a period of time.
65
b. Reduction during usage by consumers (energy, (BEC) and thereafter techno commercial evaluation
water) has been achieved since the previous year? is done and job is awarded to the lowest bidder. The
Company has detailed contract programme manual and
The Company is making continuous efforts to increase contracts are made as per rules, criteria and principles
the uses of natural gas. Natural gas which is the major laid down in the manual which includes appropriate
product of IGL doesn’t produce significant amount clauses and checks to prevent the employment of child
of solid waste, air emissions, and carbon dioxide are labour or forced labour in any form. Our whistle blower
also of lower quantity then those produced from non- policy/vigil policy provides sufficient mechanism to voice
renewable coal and oil. The increased use of natural concerns and issues of our suppliers. We also organize
gas reduces the carbon dioxide content in the area. It is various interactive sessions with suppliers, vendors and
evident from the fact that Government of India is giving customers for their feedback and to offer better services.
thrust to natural gas and wish to increase its share in the
total energy basket of the country. 5. Does the Company have a mechanism to recycle
products and waste? If yes, what is the percentage of
3. Does the Company have procedures in place for recycling of products and waste (separately as 10%)?
sustainable sourcing (including transportation)? If Also, provide details thereof?
yes, what percentage of your inputs was sourced
sustainably? Also, provide details thereof. The nature of the product of Company is such that it
cannot be recycled. However, the Company is exploring
There is sustainable source of meeting gas requirements the possibilities of co-generation and production of
for various segments of the Company. The government natural gas through Sewage Treatment Plant (STP) or
has given priority in allocation of gas for transportation through other technologies.
and domestic sector. The Company has firm supply of
gas for transportation and domestic households from Principle 3 - Businesses should promote the well-
Government of India to meet its entire requirement. The being of all employees
percentage of CNG and PNG domestic sector constitute
approx. 80% of total sales volume of the Company. The 1. Total no of employees: Our total employee count
Company is sourcing gas through long term contracts stands at 10644 (644 permanent employees + 10000
and on spot basis for meeting the requirement of employees on temporary/contractual/casual basis) as
commercial and industrial customers based on the on March 31, 2019.
requirement from time to time. Substantial portion of
2. Total number of employees hired on temporary/
the raw material sourced by the Company is transported
contractual/casual basis: Total count of employees
through the installed pipelines, which is clean and
hired on temporary/contractual/casual basis by the
sustainable mode of transportation.
Company stands at 10000 as on March 31, 2019.
4. Has the Company taken any steps to procure goods
3. No of permanent women employees: The number of
and services from local & small producers, including
our total women employees is 30 as on March 31, 2019.
communities surrounding their place of work? If
yes, what steps have been taken to improve their 4. Number of permanent employees with disabilities:
capacity and capability of local and small vendors? The number of disabled permanent employees stands
at 4.
We source natural gas from GAIL and other supplier
as mentioned above. Besides sourcing of gas, the 5. Do you have an employee association that is
Company procures various materials and services for recognized by management: No
its day to day operations for which we engage with
local suppliers. The Company’s procurement approach 6. What percentage of your permanent employees is
is based on least priced tendering mechanism which members of this recognized employee association?
ensures equal opportunity to all the participants
Not applicable as the Company does not have any
including local communities and small producers. The
employee association.
bids received by the Company from various parties are
first evaluated based on Bidding Evaluation Criteria
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Indraprastha Gas Limited | 20th Annual Report 2018-19
7. Please indicate the number of complaints relating from management to its employees. The Company
to child labour, forced labour, involuntary labour, has suggestion scheme whereby employees can send
sexual harassment in the last financial year and suggestion on various matters to the management.
pending, as on the end of the financial year: The Company organizes various interactive sessions
with its suppliers, vendors and customers for their
No Category No of No of feedback and to offer better services. Under fire and
complaints complaints safety training programs, training is being imparted to
filed during pending as employees, contract staff at CNG stations, DTC Drivers
the financial on end of the and consumers of CNG and PNG. Under CSR policy, the
year financial year Company has taken various initiatives to provide benefits
1. Child labour/ NIL NIL to the underprivileged and poor strata of society.
forced labour/
2. Out of the above, has the Company identified
involuntary
the disadvantages, vulnerable and marginalised
labour
stakeholders?
2. Sexual NIL NIL
harassment There is no formal identification of the disadvantages,
3. Discriminatory NIL NIL vulnerable and marginalized stakeholders of the
employment Company. However, as part of our CSR initiative, we are
running education, healthcare, community infrastructure
8. What percentage of your under mentioned
development projects, and skill development
employees were given safety and skill up-gradation
programme for the lower strata of society and is actively
training in the last year?
working with them towards inclusive growth.
The Company believes in holistic development of its
3. Are there any special initiatives taken by the
employees and for this purpose organize various training
Company to engage with the disadvantaged,
programs like competency development, team building,
vulnerable and marginalised stakeholders. If so,
soft skills and other periodical training on regular basis.
provide details thereof, in about 50 words or so
The Company has Health, Safety and Environment (HSE)
Policy and we impart Safety training to our employees Yes, as a responsible organization we are committed to
on periodical basis. Further, training is also imparted by the needs and welfare of the communities around us
the Company to the contractual staff at CNG Stations, and especially for the lower strata of the society. The
DTC drivers and consumers of CNG and PNG. Company has been providing group accident insurance,
preventive health management & gender sensitization
The percentage of the employees who have attended
to auto and taxi drivers of the region. Company is also
the training on safety and skill up-gradation training is as
contributing towards skill development programmes
follows:
for unemployed youth in the fields of gas plumbing and
a) Permanent Employees: 91% (587 attended training welding by providing technical oriented training. Further,
programmes out of 644) the Company has been working with local authority for
b) Permanent Women Employees: 100% development of new toilet complexes and upgradation
of the toilet facilities in the government run schools. The
c) Casual/Temporary/Contractual Employees: 100%
Company organizes free health check-up camps for the
d) Employees with Disabilities: 100% auto drivers and taxi drivers and has taken an insurance
scheme i.e. group accident cover for drivers of CNG run
Principle 4 - Businesses should respect the interests
public transport under IGL Suraksha Yojana.
of and be responsive towards all stakeholders,
especially those who are disadvantaged, vulnerable Principle 5 - Businesses should respect and promote
and marginalized human rights
1. Has the Company mapped its internal and external 1. Does the policy of the company on human rights
stakeholders? Yes/No cover only the company or extend to the Group/Joint
Ventures/Suppliers/Contractors/NGOs/Others?
Yes, the Company has mapped its various key internal
and external stakeholders and interacts with them There is no dedicated human rights policy. However,
from time to time. The Company give due recognition the Company ensures protection of the human rights
to its employees and there are regular communication to all at various levels in its practices and all contractors
67
and suppliers are expected to follow the same. The reduction of the carbon emission to a great extent and
Company has sexual harassment policy in line with the may contribute to prevent the global warming and the
Sexual Harassment of Women at Workplace (Prevention, air pollution.
Prohibition and Redressal) Act, 2013, to ensure safe
working environment for woman at workplace. We 3. Does the company identify and assess potential
respect the human rights of all concerned and provide environmental risks? Y/N
equal opportunities to all without any discrimination on
There is a minimal environmental risk from our
the basis of gender, caste, sexual orientation or religion.
operations owing to the nature of the business of the
2. How many stakeholder complaints have been Company. There is no significant process emissions
received in the past financial year and what percent or waste generation in our operations and the limited
was satisfactorily resolved by the management? wastes generated during the processing are disposed-
off in an environment friendly manner.
There were no grievances or complaints with respect to
the human rights from any of the stakeholders of the 4. Does the company have any project related to Clean
Company during the past financial year. Development Mechanism? If so, provide details
thereof, in about 50 words or so. Also, if yes, whether
Principle 6 - Business should respect, protect and any environmental compliance report is filed?
make efforts to restore the environment
Not Applicable.
1. Does the policy related to Principle 6 cover only the
Company or extends to the Group/Joint Ventures/ 5. Has the company undertaken any other initiatives
Suppliers/Contractors/NGOs/others on – clean technology, energy efficiency, renewable
energy, etc? Y/N. If yes, please give hyperlink for web
As a responsible organisation, we are committed to page etc.
take necessary steps for protection of the environment.
As a step in this direction our Health, Safety and For energy efficiency, Company has taken following
Environment (HSE) Policy, ensures best practices and initiatives:
provide a safe and healthy workplace for our employees
1. Installation of APFC (Automatic Power Factor Controller)
and contractors and other stakeholders engaged in
panels at 18 CNG stations in UP:- Automatic power
business with the Company. All the HSE standards and
factor controller has been installed at identified 18
parameters are regularly reviewed by the Company. The
CNG stations with 4 quadrant energy meter, in order to
Contractors are also required to monitor adherence of
maintain power factor to ~ 0.99.
the policy and take strict actions on any issues arising
out of non-adherence of the HSE Policy and the standard 2. Installation of BLDC ceiling fans: - Conventional ceiling
parameters. In line with the Company’s HSE policy, safety fans has been replaced by Brushless DC motor based
audits and other statutory compliances are done to ceiling fans, having approx 67% more efficiency than
ensure safety in all facets of Company’s operations. The conventional fans.
Emergency Control Centres (ECC) established at strategic
locations across Delhi and the NCR, are manned round 3. Installation of LED light fittings at IGL CNG stations: -
the clock to respond fast to any gas leak or emergency Proposal for replacement of Conventional light fittings
situation. (HPMV / CFL / Fluorescent tube) by energy efficient LED
light fittings is under progress at all IGL owned CNG
2. Does the company have strategies/ initiatives to stations.
address global environmental issues such as climate
change, global warming, etc? Y/N. If yes, please give 4. VAM of IGL Bhawan has been upgraded (with installation
hyperlink for webpage etc. of new VAM) which has helped in Efficient temperature
maintenance inside the building. The OLD VAM was to
IGL is committed to environmental protection and be run for much more time to get the same amount of
understands its role and responsibility in mitigating cooling inside the building thereby helping in energy
the effects of climate change. In this regard, Company’s savings.
biggest contribution is in the form of its product, i.e.
natural gas, which is a cleaner form of fuel compared 5. Low power consuming Seitz electro valves were installed
to fossil fuels, i.e. coal and petroleum products. in 20 Delta dispensers. This has resulted in reducing the
The Company is committed to promote the use of running hours of air compressor.
environment friendly natural gases which could help in
68
Indraprastha Gas Limited | 20th Annual Report 2018-19
6. Are the Emissions/Waste generated by the company CSR initiatives that contribute to inclusive growth and
within the permissible limits given by CPCB/SPCB for equitable development. Some of our corporate social
the financial year being reported? responsibility initiatives include:
Considering the nature of business, this is not applicable 1. Promoting healthcare including preventive
to the Company. healthcare for CNG Drivers under IGL Swasth Saarthi
Programme;
7. Number of show cause/ legal notices received from
CPCB/SPCB which are pending (i.e. not resolved to 2. Building bonds through gender sensitization for
satisfaction) as on end of Financial Year auto drivers;
We did not receive any show cause/ legal notices from 3. Self-defence training to women;
CPCB/SPCB during the financial year 2018-19.
4. Skilled development training of unemployed youth
Principle 7 - Businesses, when engaged in influencing in the fields of gas plumbing and welding;
public and regulatory policy, should do so in a
responsible manner 5. Construction and re-development of toilets in
government run schools;
1. Is your company a member of any trade and chamber
or association? If Yes, Name only those major ones that 6.
Supporting meritorious students from
your business deals with: underprivileged strata of society;
The Company is a member of Natural Gas Society which Some of CSR activities undertaken by the Company
has been established to catalyse the development of the have been duly recognized and Company received
natural gas distribution industry. The aforesaid society is following rewards:
a think tank which provide critical inputs on the sectoral
1. CSR Community Initiative Awards for IGL Swasth Saarthi
policy through research, collaboration and dialogues.
and Self Defence training programmes at New Delhi.
The Company is also a member of Federation of Indian
Petroleum Industry (FIPI). 2. CSR Health Impact Awards 2018 for IGL Swasth Saarthi
programme at New Delhi.
2. Have you advocated/lobbied through above associations
for the advancement or improvement of public good? 3. Asia’s best CSR Leadership Awards for categories of
Yes/No; if yes specify the broad areas ( drop box: Women Empowerment and Innovation in CSR practices
Governance and Administration, Economic Reforms, at Singapore.
Inclusive Development Policies, Energy security, Water,
Food Security, Sustainable Business Principles, Others) 4. CSR Times Awards 2018 organized at New Delhi.
We put forth our views through the above associations 5. Social Imprints - CSR Awards & Summit 2019 for Women
on various ongoing issues concerning the CGD sector, Empowerment organized at New Delhi.
however, we do not lobby or influence public policies
6. Social and Business Enterprise Responsible Awards
with vested interest.
organized by SABERA for IGL Swasth Saarthi Programme
Principle 8 - Businesses should support inclusive at New Delhi.
growth and equitable development
7. CSR Leadership award under the category Conservation,
1. Does the company have specified programmes/ Pollution Control and Clean Environment & Resources
initiatives/projects in pursuit of the policy related to held at New Delhi.
Principle 8? If yes details thereof.
8. Award for Gender Sensitization CSR programme at
Our corporate social responsibility believes in all- Dainik Jagran CSR awards 2019 at New Delhi.
inclusive value creation among our stakeholders. We
For further detail of the programmes/projects
consider improving health, promoting education,
undertaken by the Company under its corporate social
increasing women empowerment & development of
responsibility initiative, please refer to the Annual Report
vocational skill leads to all-inclusive growth of all the
on CSR Activities forming part of the Board report or our
communities. The Company has put in place a ‘Policy on
CSR section of our website http://www.iglonline.net.
Corporate Social Responsibility’ to guide its efforts on
69
2. Are the programmes/projects undertaken through Principle 9 - Businesses should engage with and
in-house team/own foundation/external NGO/ provide value to their customers and consumers in a
government structures/any other organization? responsible manner
The Programmes are being undertaken directly/ 1. What percentage of customer complaints/consumer
Government bodies/NGOs/specialized organisations cases are pending as on the end of financial year?
etc. For details of the organizations through which the
programmes are being undertaken please refer to the The Company is catering to 10.7 lacs vehicles plying on
Annual Report on CSR Activities forming part of the CNG in Delhi and NCR. The Company had total 11.02 lacs
Board report. households’ connections, besides 4276 commercials and
industrial customers. The Company follows customer
3. Have you done any impact assessment of your centric approach and make all its efforts to attend
initiative? the complaints in a time bound manner. Out of total
customer complaints, 0.14 % of customer complaints
Yes, we have been doing impact assessment studies of were pending at the end of the financial year.
our CSR initiatives with the help of an external agency
engaged by the Company with an intent to analyse the 2. Does the company display product information on
efficacy of the programme and achieving better results. the product label, over and above what is mandated
as per local laws? Yes/No/N.A. /Remarks(additional
4. What is your company’s direct contribution to information)
community development projects- Amount in INR
and the details of the projects undertaken? As the Company does not deal in any physical product,
this is not applicable.
The Company has taken various CSR activities for the
benefit of society/community and spent Rs. 14.49 Crores 3. Is there any case filed by any stakeholder against
on such initiatives during the financial year ended the company regarding unfair trade practices,
March 31, 2019. For details of the programmes/projects irresponsible advertising and/or anti-competitive
undertaken by the Company and the amount spent by behaviour during the last five years and pending as
the Company on such programmes/projects, please on end of financial year. If so, provide details thereof,
refer to the report on Corporate Social Responsibility in about 50 words or so.
forming part of our Annual Report.
We have appropriate mechanisms to receive and
5. Have you taken steps to ensure that this community address complaints from stakeholders related to
development initiative is successfully adopted by compliance, corruption or bribery. No stakeholder has
the community? Please explain in 50 words, or so. filed any case against the Company, nor are any cases
pending regarding unfair trade practices, irresponsible
The Company constantly monitors and do impact advertising and / or anti-competitive behaviour during
assessment study of the CSR initiatives undertaken by the last five years and no such case is pending as on 31
on regular basis with the help of an external agency March 2019.
engaged by the Company to find the efficacy of the
programme. On the basis of the assessment reports, 4. Did your company carry out any consumer survey/
appropriate measures are taken to ensure that the consumer satisfaction trends?
initiatives taken by the Company should be beneficial to
the community and successfully adopted by them. The We interact with our customers on a regular basis and
result of impact assessment study is further used for the across multiple platforms. We also carry out consumer
future CSR initiatives of the Company. survey from time to time to assess the customer
satisfaction level and take appropriate actions for
improving its services. We are a customer centric
organization and always endeavour to raise the level of
quality of services offered to our customers.
70
Financial
Statements
71
Independent
Auditor’s Report
To
The Members of
Indraprastha Gas Limited
Report on the Audit of the Standalone Financial of the Act. Our responsibilities under those standards
Statements are further described in the Auditor’s Responsibilities
for the Audit of the Financial Statements section of
Opinion
our report. We are independent of the Company in
1. We have audited the accompanying standalone accordance with the Code of Ethics issued by the
financial statements of Indraprastha Gas Limited (the Institute of Chartered Accountants of India (‘ICAI’)
‘Company’), which comprise the Balance Sheet as at 31 together with the ethical requirements that are
March 2019, the Statement of Profit and Loss (including relevant to our audit of the financial statements under
Other Comprehensive Income), the Cash Flow the provisions of the Act and the rules thereunder,
Statement and the Statement of Changes in Equity for and we have fulfilled our other ethical responsibilities
the year then ended and a summary of the significant in accordance with these requirements and the Code
accounting policies and other explanatory information of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a
2. In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid basis for our opinion.
standalone financial statements give the information
Key Audit Matter
required by the Companies Act, 2013 (‘Act’) in the manner
so required and give a true and fair view in conformity 4. Key audit matters are those matters that, in our
with the accounting principles generally accepted in India professional judgment, were of most significance in
including Indian Accounting Standards (‘Ind AS’) specified
our audit of the standalone financial statements of the
under section 133 of the Act, of the state of affairs
current period. These matters were addressed in the
(financial position) of the Company as at 31 March 2019,
context of our audit of the financial statements as a
and its profit (financial performance including other
whole, and in forming our opinion thereon, and we do
comprehensive income), its cash flows and the changes
in equity for the year ended on that date. not provide a separate opinion on these matters.
Key audit matter How our audit addressed the key audit matter
Demand raised by Delhi Development Authority (‘DDA’) Our audit procedures in relation to the aforesaid matter
Refer note 3.19 for the accounting policy and note 36(1)(c) for included, but were not limited to the following:
the related disclosure.
• Evaluated the design of, and tested key controls in
As explained in the note 36(1)(c) to the accompanying
respect of litigations and contingent liabilities;
standalone financial statements; the Company had received
a demand from DDA amounting to Rs.155.64 crores during
• Obtained the Company’s evaluation of the said matter
financial year 2013-14 pertaining to the period 1 April 2007 to
supported by the external legal opinion obtained by the
31 March 2014 on account of increase in license fees in respect
management in the financial year ended 31 March 2019;
of sites taken on lease by the Company from DDA for setting up
Compressed Natural Gas (CNG) stations in Delhi. The Company • Discussed the said matter with the in-house legal general
had filed a writ petition on 11 October 2013 before the Hon’ble counsel of the Company;
High Court of Delhi against the aforesaid demand raised by
DDA which is currently pending.
72
Indraprastha Gas Limited | 20th Annual Report 2018-19
Key audit matter How our audit addressed the key audit matter
Further, DDA vide communication dated 29 August 2016 had • Conducted in-depth inquiries with the management of
revised the total demand to Rs. 330.73 crores for the period the Company and robust discussions with the Board, to
upto 31 March 2016. obtain their view on the status of the aforesaid matter;
The management of the Company, based on legal opinion • Circulated and obtained confirmation from the legal
obtained by them, have assessed the same as contingent and counsel representing the Company as at year end; and
accordingly not provided for the demand raised by DDA in
the financial statements. • Assessed the appropriateness and adequacy of the
related disclosures in the standalone financial statements
We identified this as key audit matter for current year audit owing in accordance with the applicable accounting standards
to the materiality of the amounts involved in this matter and
inherent subjectivity and uncertainty involved in determination
of the amount, if any, to be provided as liability in accordance
with the applicable accounting standards.
Information other than the Financial Statements Responsibilities of Management and Those
and Auditor’s Report thereon Charged with Governance for the Standalone
Financial Statements
6. The Company’s Board of Directors is responsible
for the other information. The other information 7. The Company’s Board of Directors is responsible for
comprises the information included in the Annual the matters stated in section 134(5) of the Act with
Report, but does not include the financial statements respect to the preparation of these standalone financial
and our auditor’s report thereon. The Annual Report is statements that give a true and fair view of the state
expected to be made available to us after the date of of affairs (financial position), profit or loss (financial
this auditor’s report. performance including other comprehensive income),
changes in equity and cash flows of the Company in
Our opinion on the financial statements does not cover accordance with the accounting principles generally
the other information and we will not express any form accepted in India, including the Ind AS specified
of assurance conclusion thereon. under section 133 of the Act. This responsibility
also includes maintenance of adequate accounting
In connection with our audit of the financial statements,
records in accordance with the provisions of the Act
our responsibility is to read the other information
for safeguarding of the assets of the Company and for
identified above when it becomes available and, in
preventing and detecting frauds and other irregularities;
doing so, consider whether the other information is
selection and application of appropriate accounting
materially inconsistent with the financial statements
policies; making judgments and estimates that are
or our knowledge obtained in the audit or otherwise
reasonable and prudent; and design, implementation
appears to be materially misstated.
and maintenance of adequate internal financial
When we read the Annual Report, if we conclude controls, that were operating effectively for ensuring
that there is a material misstatement therein, we are the accuracy and completeness of the accounting
required to communicate the matter to those charged records, relevant to the preparation and presentation
with governance. of the financial statements that give a true and fair view
73
and are free from material misstatement, whether due • Evaluate the appropriateness of accounting
to fraud or error. policies used and the reasonableness of
accounting estimates and related disclosures
8. In preparing the financial statements, management made by management.
is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, • Conclude on the appropriateness of management’s
matters related to going concern and using the going use of the going concern basis of accounting and,
concern basis of accounting unless management based on the audit evidence obtained, whether
either intends to liquidate the Company or to cease a material uncertainty exists related to events or
operations, or has no realistic alternative but to do so. conditions that may cast significant doubt on the
Company’s ability to continue as a going concern.
9. Those Board of Directors are also responsible for
If we conclude that a material uncertainty exists,
overseeing the Company’s financial reporting process.
we are required to draw attention in our auditor’s
Auditor’s Responsibilities for the Audit of the report to the related disclosures in the financial
Financial Statements statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based
10. Our objectives are to obtain reasonable assurance on the audit evidence obtained up to the date of
about whether the financial statements as a whole our auditor’s report. However, future events or
are free from material misstatement, whether due conditions may cause the Company to cease to
to fraud or error, and to issue an auditor’s report
continue as a going concern.
that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that • Evaluate the overall presentation, structure and
an audit conducted in accordance with Standards on content of the financial statements, including the
Auditing will always detect a material misstatement disclosures, and whether the financial statements
when it exists. Misstatements can arise from fraud or represent the underlying transactions and events
error and are considered material if, individually or in in a manner that achieves fair presentation.
the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the 12. We communicate with those charged with governance
basis of these financial statements. regarding, among other matters, the planned scope
and timing of the audit and significant audit findings,
11. As part of an audit in accordance with Standards on including any significant deficiencies in internal control
Auditing, we exercise professional judgment and maintain
that we identify during our audit.
professional skepticism throughout the audit. We also:
13. We also provide those charged with governance with
• Identify and assess the risks of material
a statement that we have complied with relevant
misstatement of the financial statements, whether
ethical requirements regarding independence, and to
due to fraud or error, design and perform audit
communicate with them all relationships and other
procedures responsive to those risks, and obtain
matters that may reasonably be thought to bear on
audit evidence that is sufficient and appropriate
our independence, and where applicable, related
to provide a basis for our opinion. The risk of not
safeguards.
detecting a material misstatement resulting from
fraud is higher than for one resulting from error, 14. From the matters communicated with those charged
as fraud may involve collusion, forgery, intentional
with governance, we determine those matters that
omissions, misrepresentations, or the override of
were of most significance in the audit of the financial
internal control.
statements of the current period and are therefore
• Obtain an understanding of internal control the key audit matters. We describe these matters
relevant to the audit in order to design in our auditor’s report unless law or regulation
audit procedures that are appropriate in the precludes public disclosure about the matter or when,
circumstances. Under section 143(3)(i) of the in extremely rare circumstances, we determine that
Act, we are also responsible for expressing our a matter should not be communicated in our report
opinion on whether the company has adequate because the adverse consequences of doing so would
internal financial controls system in place and the reasonably be expected to outweigh the public interest
operating effectiveness of such controls. benefits of such communication.
74
Indraprastha Gas Limited | 20th Annual Report 2018-19
Report on Other Legal and Regulatory the basis of the written representations received
Requirements from such directors and taken on record by the
Board of Directors, we report that none of the
15. As required by section 197(16) of the Act, we report that other directors are disqualified as on 31 March
the Company has paid remuneration to its directors 2019 from being appointed as a director in terms
during the year in accordance with the provisions of sub-section (2) of section 164 of the Act.
of and limits laid down under section 197 read with
Schedule V to the Act. f) We have also audited the internal financial
controls over financial reporting (IFCoFR) of the
16. As required by the Companies (Auditor’s Report) Order, Company as on 31 March 2019 in conjunction with
2016 (‘the Order’) issued by the Central Government of our audit of the standalone financial statements of
India in terms of section 143(11) of the Act, we give in the Company for the year ended on that date and
the Annexure A a statement on the matters specified in our report dated 31 March 2019 as per Annexure C
paragraphs 3 and 4 of the Order. expressed unmodified opinion; and
17. As required by the Comptroller and Auditor General g) With respect to the other matters to be included
of India vide directions issued under Section 143(5) of in the Auditor’s Report in accordance with rule 11
the Act, we give our report on the matters specified in of the Companies (Audit and Auditors) Rules, 2014
the aforementioned directions in Annexure B on taking (as amended), in our opinion and to the best of
into consideration the information, explanations, our information and according to the explanations
examination of records and written representations given to us:
received from the management.
i. The Company, as detailed in note 36(1) to
18. Further to our comments in Annexure A, as required by the standalone financial statements, has
section 143(3) of the Act, we report that: disclosed the impact of pending litigations on
its financial position as at 31 March 2019;
a) We have sought and obtained all the information
and explanations which to the best of our ii. The Company did not have any long-term
knowledge and belief were necessary for the contracts including derivative contracts for
purpose of our audit; which there were any material foreseeable
losses as at 31 March 2019;
b) In our opinion, proper books of account as required
by law have been kept by the Company so far as it iii. There has been no delay in transferring
appears from our examination of those books; amounts, required to be transferred, to the
Investor Education and Protection Fund by
c) The standalone financial statements dealt with
the Company during the year ended 31 March
by this report are in agreement with the books of
2019; and
account;
iv. The disclosure requirements relating to
d) In our opinion, the aforesaid standalone financial
holdings as well as dealings in specified bank
statements comply with Ind AS specified under
notes were applicable for the period from 8
section 133 of the Act;
November 2016 to 30 December 2016, which
e) Ms. Varsha Joshi, the director of the Company are not relevant to these standalone financial
as on 31 March 2019, has not provided a written statements. Hence, reporting under this
representation as to whether any Company in clause is not applicable.
which she is a director as on 31 March 2019,
had not defaulted in terms of sub-section (2) For Walker Chandiok & Co LLP
of the section 164 of the Act. In the absence of Chartered Accountants
this representation, we are unable to comment Firm’s Registration No.: 001076N/N500013
whether she is disqualified from being appointed
as a director under sub-section (2) of section 164 Sd/-
of the Act. However, she has vacated office as a Rajni Mundra
director of the Company with effect from 23 May Place: New Delhi Partner
2019. As far as other directors are concerned, on Date: 24 May 2019 Membership No.: 058644
75
Annexure A to the
Independent Auditor’s Report
Annexure A quantities which is based on volume of pipelines and
the volume of cascades containing the natural gas
Based on the audit procedures performed for the purpose of considering the standard temperature and pressures,
reporting a true and fair view on the financial statements of are reasonable and no material discrepancies were
the Company and taking into consideration the information noticed on such computation. Further, in our opinion,
and explanations given to us and the books of account and the management has conducted physical verification
other records examined by us in the normal course of audit, of inventory of stores and spare parts at reasonable
and to the best of our knowledge and belief, we report that: intervals during the year and no material discrepancies
between physical inventory and book records were
(i) (a) The Company has maintained proper records
noticed on physical verification.
showing full particulars, including quantitative
details and situation of property, plant and (iii) The Company has not granted any loan, secured
equipment (‘PPE’). or unsecured to companies, firms, Limited Liability
(b) Other than PPE related to underground natural Partnerships (LLPs) or other parties covered in the
gas distribution system which as per management register maintained under Section 189 of the Act.
cannot be physically verified, the PPE has been Accordingly, the provisions of clauses 3(iii)(a), 3(iii)(b)
physically verified by the management during and 3(iii)(c) of the Order are not applicable.
the year and no material discrepancies were
(iv) In our opinion, the Company has complied with the
noticed on such verification. In our opinion, the
provisions of Section 186 in respect of investments.
frequency of verification of the PPE is reasonable
Further, in our opinion, the Company has not entered
having regard to the size of the Company and
into any transaction covered under Section 185 and
the nature of its assets. For the underground
Section 186 of the Act in respect of loans, guarantees
natural gas distribution system, the management
and security.
has adequate controls in place to safeguard the
physical existence of the said distribution system. (v) In our opinion, the Company has not accepted any
(c) The title deeds of all the immovable properties deposits within the meaning of Sections 73 to 76 of
(which are included under the head ‘Property, the Act and the Companies (Acceptance of Deposits)
plant and equipment’) are held in the name of the Rules, 2014 (as amended). Accordingly, the provisions
Company except for certain immovable properties of clause 3(v) of the Order are not applicable.
taken on lease, per details given below:
(vi) We have broadly reviewed the books of account
(Rs. in Crores) maintained by the Company pursuant to the Rules
Nature of Whether Gross block Net block made by the Central Government for the maintenance
property leasehold / as on 31 as on 31 of cost records under sub-section (1) of Section 148 of
freehold March 2019 March 2019 the Act in respect of Company’s products and are of the
Land Leasehold 9.83 9.83 opinion that, prima facie, the prescribed accounts and
perpetual* records have been made and maintained. However,
Land Leasehold 7.15 7.15 we have not made a detailed examination of the cost
perpetual@ records with a view to determine whether they are
accurate or complete.
* The Company has an allotment letter for the said land but
has not entered into a lease deed. (vii) (a) The Company is regular in depositing undisputed
statutory dues including provident fund,
@ The Company has entered into a memorandum of
employees’ state insurance, income-tax, sales
understanding with the lessor, but has, however, not entered
tax, service tax, duty of customs, duty of excise,
into a lease deed.
value added tax, cess and other material statutory
(ii) The inventories of the Company comprise of natural dues, as applicable, to the appropriate authorities.
gas and inventory of stores and spares parts. As Further, no undisputed amounts payable in
explained to us, having regard to the nature of the respect thereof were outstanding at the year-end
inventory of natural gas, the procedures followed for a period of more than six months from the date
by the management for estimation of natural gas they become payable.
76
Indraprastha Gas Limited | 20th Annual Report 2018-19
(b) The dues outstanding in respect of income-tax, sales tax, service tax, duty of customs, duty of excise and value added
tax on account of any dispute, are as follows:
Name of the Nature of dues Gross Amount paid Period to Forum where
statute Amount under protest which the dispute is
due (Rs. in against gross amount relates pending
crores) amount due
(Rs. in crores)
Central Excise Matters relating to 4.84 2.42 (Refer note 2008-10 Commissioner of
Act, 1944 levy of Excise duty on 1 below) Central Excise
discount to customers
Income-tax Act, Matters relating 8.23 1.65 Financial year Income-tax
1961 to disallowance of (FY) 2010-11 Appellate Tribunal
additional depreciation
Income-tax Act, Matters relating 10.68 2.14 FY 2011-12 Income-tax
1961 to disallowance of Appellate Tribunal
additional depreciation
Income-tax Act, Matters relating 2.51 2.20 (Refer note FY 2012-13 Income-tax
1961 to disallowance of 2 below) Appellate Tribunal
additional depreciation
Income-tax Act, Matters relating 2.01 2.01 (Refer note FY 2013-14 Income-tax
1961 to disallowance of 2 below) Appellate Tribunal
additional depreciation
Income-tax Act, Matters relating 1.09 1.09 (Refer note FY 2014-15 Income-tax
1961 to disallowance of 3 below) Appellate Tribunal
additional depreciation
Income-tax Act, Matters relating 0.84 - FY 2015-16 Commissioner
1961 to disallowance of of Income- tax
additional depreciation (Appeals)
Uttar Pradesh Matters relating to 0.04 0.04 FY 2018-19 Commercial Tax
Goods and demand of Central department, Uttar
Service Tax Act, Goods and Service Tax Pradesh
2017 and Uttar Pradesh Goods
and Service Tax Act
77
(x) No fraud by the Company or on the Company by its (xiv) During the year, the Company has not made any
officers or employees has been noticed or reported preferential allotment or private placement of shares
during the period covered by our audit. or fully or partly convertible debentures.
(xi) Managerial remuneration has been paid and provided (xv) In our opinion, the Company has not entered into any non-
by the Company in accordance with the requisite cash transactions with the directors or persons connected
approvals mandated by the provisions of Section 197 with them covered under Section 192 of the Act.
of the Act read with Schedule V to the Act.
(xvi) The Company is not required to be registered under
(xii) In our opinion, the Company is not a Nidhi Company. Section 45-IA of the Reserve Bank of India Act, 1934.
Accordingly, provisions of clause 3(xii) of the Order are
not applicable. For Walker Chandiok & Co LLP
Chartered Accountants
(xiii) In our opinion all transactions with the related parties Firm’s Registration No.: 001076N/N500013
are in compliance with Sections 177 and 188 of Act,
where applicable, and the requisite details have been Sd/-
disclosed in the financial statements etc., as required Rajni Mundra
by the applicable Ind AS. Place: New Delhi Partner
Date: 24 May 2019 Membership No.: 058644
78
Indraprastha Gas Limited | 20th Annual Report 2018-19
Annexure B to the
Independent Auditor’s Report
Annexure B
Independent Auditor’s Report as required by the Comptroller and Auditor General of India vide directions issued
under Section 143(5) of the Companies Act, 2013 (the ‘Act’)
Based on the audit procedures performed and taking into consideration the information, explanations, examination of records
and written representations given to us by the management in the normal course of audit, we report to the best of our
knowledge and belief that:
1. Whether the Company has system in place The Company has system in place to process Not applicable.
to process all the accounting transactions all the accounting transactions through the
through the IT system? If yes, the IT system.
implications of processing of accounting
transaction outside IT system on the Further, as per the information and
integrity of the accounts along with the explanations given to us by the management,
financial implications, if any, may be stated. there are no accounting transactions that
are processed outside the IT system by the
Company which impact the integrity of the
accounts.
2. Whether there is any restructuring of an As per information and explanations given Not applicable.
existing loan or cases of waiver/ write off of to us and based on the examination of
debts/loans/interest etc. made by a lender records, the Company did not have any
to the Company due to the Company’s debts/loans payable to any lender as at and
inability to repay the loan? If yes, the during the year ended 31 March 2019 and
financial impact may be stated. hence reporting under this direction is not
applicable.
3. Whether funds received/ receivable for As per information and explanations given to Not applicable.
specific schemes from Central/ State us and based on the examination of records,
Agencies were properly accounted for/ no funds have been received during the year
utlilized as per its terms and conditions? ended 31 March 2019 or are receivable as at
List the case of deviation. 31 March 2019 for specific schemes from the
Central/State Agencies. Therefore, reporting
under this direction is not applicable.
Sd/-
Rajni Mundra
Place: New Delhi Partner
Date: 24 May 2019 Membership No.: 058644
79
Annexure C to the
Independent Auditor’s Report
Annexure C 4. Our audit involves performing procedures to obtain
audit evidence about the adequacy of the IFCoFR and
Independent Auditor’s Report on the Internal their operating effectiveness. Our audit of IFCoFR
Financial Controls under Clause (i) of Sub-section includes obtaining an understanding of IFCoFR,
3 of Section 143 of the Companies Act, 2013 (the assessing the risk that a material weakness exists,
‘Act’) and testing and evaluating the design and operating
effectiveness of internal control based on the assessed
1. In conjunction with our audit of the standalone
risk. The procedures selected depend on the auditor’s
financial statements of Indraprastha Gas Limited (the
judgement, including the assessment of the risks of
‘Company’) as at and for the year ended 31 March 2019,
material misstatement of the standalone financial
we have audited the internal financial controls over
statements, whether due to fraud or error.
financial reporting (‘IFCoFR’) of the Company as at that
date. 5. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our
Management’s Responsibility for Internal
audit opinion on the Company’s IFCoFR.
Financial Controls
Meaning of Internal Financial Controls over
2. The Company’s Board of Directors is responsible for
Financial Reporting
establishing and maintaining internal financial controls
based on the internal control over financial reporting 6. A company’s IFCoFR is a process designed to
criteria established by the Company considering provide reasonable assurance regarding the
the essential components of internal control stated reliability of financial reporting and the preparation
in the Guidance note on Audit of Internal Financial of standalone financial statements for external
Controls over Financial Reporting (‘Guidance Note’) purposes in accordance with generally accepted
issued by the Institute of Chartered Accountants of accounting principles. A company’s IFCoFR includes
India (‘ICAI’). These responsibilities include the design, those policies and procedures that (1) pertain to the
implementation and maintenance of adequate internal maintenance of records that, in reasonable detail,
financial controls that were operating effectively for accurately and fairly reflect the transactions and
ensuring the orderly and efficient conduct of the dispositions of the assets of the company; (2) provide
Company’s business, including adherence to Company’s reasonable assurance that transactions are recorded
policies, the safeguarding of its assets, the prevention as necessary to permit preparation of standalone
and detection of frauds and errors, the accuracy and financial statements in accordance with generally
completeness of the accounting records and the accepted accounting principles, and that receipts and
timely preparation of reliable financial information, as expenditures of the company are being made only in
required under the Act. accordance with authorisations of management and
directors of the company; and (3) provide reasonable
Auditor’s Responsibility
assurance regarding prevention or timely detection
3. Our responsibility is to express an opinion on the of unauthorised acquisition, use, or disposition of the
Company’s IFCoFR based on our audit. We conducted company’s assets that could have a material effect on
our audit in accordance with the Standards on Auditing, the standalone financial statements.
issued by the ICAI and deemed to be prescribed under
Inherent Limitations of Internal Financial
section 143(10) of the Act, to the extent applicable to
Controls over Financial Reporting
an audit of IFCoFR, and the Guidance Note issued by
ICAI. Those Standards and the Guidance Note require 7. Because of the inherent limitations of IFCoFR, including
that we comply with ethical requirements and plan the possibility of collusion or improper management
and perform the audit to obtain reasonable assurance override of controls, material misstatements due
about whether adequate IFCoFR were established and to error or fraud may occur and not be detected.
maintained and if such controls operated effectively in Also, projections of any evaluation of the IFCoFR to
all material respects.
80
Indraprastha Gas Limited | 20th Annual Report 2018-19
future periods are subject to the risk that IFCoFR may the Company considering the essential components of
become inadequate because of changes in conditions, internal control stated in the Guidance Note issued by
or that the degree of compliance with the policies or ICAI.
procedures may deteriorate.
For Walker Chandiok & Co LLP
Opinion Chartered Accountants
Firm’s Registration No.: 001076N/N500013
8. In our opinion, the Company has, in all material
respects, adequate internal financial controls over Sd/-
financial reporting and such controls were operating Rajni Mundra
effectively as at 31 March 2019, based on the internal Place: New Delhi Partner
control over financial reporting criteria established by Date: 24 May 2019 Membership No.: 058644
81
Standalone
Balance Sheet As at 31 March 2019
(Rs. in Crores)
Particulars Note As at As at
31 March 2019 31 March 2018
A Assets
1 Non-current assets
a) Property, plant and equipment 4 2,855.30 2,415.55
b) Capital work-in-progress 4 478.08 386.02
c) Other intangible assets 4 21.55 16.48
d) Financial assets
(i) Investments 5 258.12 258.12
(ii) Loans 6 11.47 8.37
(iii) Other financial assets 7 0.34 0.30
e) Income-tax assets (net) 8 15.03 15.03
f) Other non-current assets 9 67.08 45.70
Total non-current assets 3,706.97 3,145.57
2 Current assets
a) Inventories 10 50.94 52.37
b) Financial assets
(i) Investments 11 1,285.87 889.57
(ii) Trade receivables 12 221.48 226.14
(iii) Cash and cash equivalents 13 71.16 203.68
(iv) Bank balances other than (iii) above 14 535.93 354.35
(v) Loans 15 3.78 6.48
(vi) Other financial assets 16 44.40 27.77
c) Other current assets 17 28.81 22.23
Total current assets 2,242.37 1,782.59
Total assets 5,949.34 4,928.16
2 Liabilities
Non-current liabilities
a) Financial liabilities
(I) Other financial liabilities (other than those specified in item (b)) 20 0.41 -
b) Provisions 21 19.55 12.83
c) Deferred tax liabilities (net) 22 267.84 225.31
d) Other non-current liabilities 23 0.97 0.81
Total non-current liabilities 288.77 238.95
Current liabilities
a) Financial liabilities
(i) Trade payables 24
(A) total outstanding dues of micro enterprises and small enterprises; and 41.11 19.14
(B) total outstanding dues of creditors other than micro enterprises and 447.37 319.44
small enterprises
(ii) Other financial liabilities [other than those specified in item (c)] 25 977.76 797.70
b) Other current liabilities 26 61.66 39.12
c) Provisions 27 1.03 0.91
d) Current tax liabilities (net) 28 1.79 -
Total current liabilities 1,530.72 1,176.31
Total liabilities 1,819.49 1,415.26
Total equity and liabilities 5,949.34 4,928.16
Significant accounting policies and other explanatory information forming part of the standalone financial statements (1-55)
In terms of our report attached
For Walker Chandiok & Co LLP For and on behalf of Board of Directors
Chartered Accountants
Firm’s Registration No. 001076N/N500013
Sd/- Sd/- Sd/-
Rajni Mundra E. S. Ranganathan Rajiv Sikka
Partner Managing Director Director (Commercial)
Membership No. 058644 (DIN 07417640) (DIN 06819112)
Sd/- Sd/-
Place: New Delhi Rakesh Chawla S.K. Jain
Date: 24 May 2019 Chief Financial Officer Company Secretary
82
Indraprastha Gas Limited | 20th Annual Report 2018-19
Standalone Statement of
Profit and Loss for the year ended 31 March 2019
(Rs. in Crores)
Particulars Note Year ended Year ended
31 March 2019 31 March 2018
1 Revenue from operations 29 6,361.87 5,014.90
2 Other income 30 146.15 100.05
3 Total income (1 + 2) 6,508.02 5,114.95
4 Expenses:
(a) Purchases of stock-in-trade of natural gas 31 3,397.89 2,491.81
(b) Changes in inventories of stock-in-trade of natural gas 32 (0.57) (0.40)
(c) Excise duty 597.03 479.43
(d) Employee benefits expense 33 142.55 106.05
(e) Finance costs 34 2.05 1.69
(f) Depreciation and amortisation expenses 4 201.07 181.29
(g) Other expenses 35 967.99 822.59
Total expenses (4) 5,308.01 4,082.46
5 Profit before tax (3 - 4) 1,200.01 1,032.49
6 Tax expense: 44
(a) Current tax 370.31 316.94
(b) Deferred tax 43.03 44.78
Total tax expenses 413.34 361.72
7 Profit for the year (5 - 6) 786.67 670.77
8 Other comprehensive income
(a) Items that will not be reclassified to profit or loss
(i) Re-measurement of post employment benefit obligations (1.44) (0.27)
(ii) Income-tax relating to re-measurement of post employment 0.50 0.09
benefit obligations
Other comprehensive income for the year, net of tax (0.94) (0.18)
9 Total comprehensive income for the year (7+8) (comprising 785.73 670.59
profit and other comprehensive income for the year)
10 Earnings per equity share: (face value of Rs. 2 per share) 50
Basic and diluted (in Rs. ) 11.24 9.58
Significant accounting policies and other explanatory information forming part of the standalone financial statements (1-55)
In terms of our report attached
For Walker Chandiok & Co LLP For and on behalf of Board of Directors
Chartered Accountants
Firm’s Registration No. 001076N/N500013
Sd/- Sd/-
Place: New Delhi Rakesh Chawla S.K. Jain
Date: 24 May 2019 Chief Financial Officer Company Secretary
83
Standalone Statement of
Changes in Equity for the year ended 31 March 2019
A) Equity share capital
*The shareholders of the Company in their annual general meeting held on 28 September 2017 approved sub-division of each equity share having a face
value of Rs. 10 into five equity shares having a face value of Rs. 2 each. Consequently, the total number of equity shares of the Company increased to
70,00,00,800 shares of Rs. 2 each.
B) Other equity
(Rs. in Crores)
Reserves and surplus
Particulars Note General Retained Total
reserve earnings
Balance as at 1 April 2017 19 303.50 2,483.06 2,786.56
Dividends paid (including dividend distribution tax) - (84.25) (84.25)
Transactions with owners in their capacity as owners - (84.25) (84.25)
Profit for the year - 670.77 670.77
Other comprehensive income
Re-measurement of post employment benefit - (0.18) (0.18)
obligations (net of tax)
Balance as at 31 March 2018 19 303.50 3,069.40 3,372.90
Dividends paid (including dividend distribution tax) - (168.78) (168.78)
Transactions with owners in their capacity as owners - (168.78) (168.78)
Profit for the year - 786.67 786.67
Other comprehensive income
Re-measurement of post employment benefit - (0.94) (0.94)
obligations (net of tax)
Balance as at 31 March 2019 19 303.50 3,686.35 3,989.85
Significant accounting policies and other explanatory information forming part of the standalone financial statements (1-55)
In terms of our report attached
For Walker Chandiok & Co LLP For and on behalf of Board of Directors
Chartered Accountants
Firm’s Registration No. 001076N/N500013
Sd/- Sd/-
Place: New Delhi Rakesh Chawla S.K. Jain
Date: 24 May 2019 Chief Financial Officer Company Secretary
84
Indraprastha Gas Limited | 20th Annual Report 2018-19
Standalone
Cash Flow Statement for the year ended 31 March 2019
(Rs. in Crores)
Particulars Year ended Year ended
31 March 2019 31 March 2018
A. Cash flow from operating activities:
Profit before tax 1,200.01 1,032.49
Adjustments for:
- Depreciation and amortisation expense 201.07 181.29
- Unrealised foreign exchange (gain) (0.10) (0.07)
- Loss on property, plant and equipment sold or discarded 2.04 9.61
- Allowances for expected credit losses 2.59 (0.08)
- Provision for obsolete and slow moving capital work-in-progress (0.33) 1.07
- Provision for obsolete and slow moving stores and spares, written back (0.02) (1.15)
- Allowances for expected credit loss no longer required, written back (1.50) (1.50)
- Liabilities/provisions no longer required, written back (0.10) (0.21)
- Adjustment of pre-acquisition dividend - 1.05
- Finance costs 0.98 0.11
- Interest income on term deposits with banks (36.39) (21.89)
- Income from investment in mutual funds (88.79) (65.75)
- Dividend income on investment in associates (17.70) (9.49)
Operating profit before working capital changes 1,261.76 1,125.48
85
Standalone
Cash Flow Statement for the year ended 31 March 2019
(Rs. in Crores)
Particulars Year ended Year ended
31 March 2019 31 March 2018
C. Cash flow from financing activities:
- Dividend and dividend distribution tax paid (168.48) (84.23)
- Interest paid (0.35) -
Net cash flow used in financing activities (C) (168.83) (84.23)
E. Cash and cash equivalents as at the beginning of the year 203.68 125.57
F. Cash and cash equivalents as at the end of the year 71.16 203.68
G. Cash and cash equivalents at the end of the year (refer note 13)
i. Balances with banks in current accounts 25.88 29.07
ii. Cash on hand 11.89 5.01
iii. Balances with banks in fixed deposits with maturity of less than three 33.39 169.60
months
71.16 203.68
Note: Disclosure requirement as per Ind AS 7 (amended), Statement of Cash Flow, related to changes in liabilities arising from
financing activity is not applicable to the Company.
Significant accounting policies and other explanatory information forming part of the standalone financial statements (1-55)
In terms of our report attached
For Walker Chandiok & Co LLP For and on behalf of Board of Directors
Chartered Accountants
Firm’s Registration No. 001076N/N500013
Sd/- Sd/-
Place: New Delhi Rakesh Chawla S.K. Jain
Date: 24 May 2019 Chief Financial Officer Company Secretary
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Indraprastha Gas Limited | 20th Annual Report 2018-19
87
Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
2.1.4 Amendment to Ind AS 109, Financial 3.2 Overall considerations
instruments
These standalone financial statements have been
On 30 March 2019, Ministry of Corporate Affairs prepared on going concern basis using the significant
(“MCA”) issued an amendment to Ind-AS 109 in accounting policies and measurement bases
respect of prepayment features with negative summarised below.
compensation, which amends the existing
requirements in Ind-AS 109 regarding termination These accounting policies have been used throughout
rights in order to allow measurement at amortized all periods presented in the standalone financial
cost (or, depending on the business model, at fair statements.
value through other comprehensive income) even
3.3 Historical cost convention
in the case of negative compensation payments.
This amendment is effective for annual periods These standalone financial statements have been
beginning on or after 1 April 2019. The Company prepared on a historical cost convention except
is evaluating the requirements of the amendments where certain financial assets and liabilities have been
and their impact on the financial statements. measured at fair value.
88
Indraprastha Gas Limited | 20th Annual Report 2018-19
89
Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
the liability. Finance charges are recognised in finance from experience adjustments and changes in actuarial
costs in the statement of profit and loss. assumptions are recognised in the period in which they
occur, directly in other comprehensive income. They
Company as the lessee are included in retained earnings in the statement of
changes in equity and in the balance sheet. Changes
A leased asset is depreciated over the useful life of the
in the present value ofthe defined benefit obligation
asset. However, if there is no reasonable certainty that
resulting from plan amendments or curtailments are
the Company will obtain ownership by the end of the
recognized immediately in the statement of profit and
lease term, the asset is depreciated over the shorter of
loss as past service cost.
the estimated useful life of the asset and the lease term.
Short-term employee benefits
Lease arrangements where the risks and rewards
incidental to ownership of an asset substantially vest The undiscounted amount of short-term employee
with the lessor are recognised as operating leases. benefits expected to be paid in exchange for the
Lease rentals under operating leases are recognised in services rendered by employees are recognised during
the statement of profit and loss on straight line basis the year when the employees render the service.
unless the payments are structured to increase in line These benefits include performance incentive and
with expected general inflation to compensate for compensated absences which are expected to occur
lessor’s expected inflationary cost increases. within twelve months after the end of the period in
which the employee renders the related service. The
3.8 Employee benefits cost of such compensated absences is accounted as
under:
Employee benefits include provident fund, pension
fund, gratuity and compensated absences. (a) in case of accumulated compensated absences,
when employees render the services that increase
Defined contribution plans
their entitlement of future compensated absences;
The Company’s contribution to provident fund and and
pension fund is considered as defined contribution plan
(b) in case of non-accumulating compensated
and is charged as an expense as they fall due based on
absences, when the absences occur.
the amount of contribution required to be made and
when services are rendered by the employees. The Long-term employee benefits
Company has no legal or constructive obligation to pay
contribution in addition to its fixed contribution. Compensated absences which are allowed to be carried
forward over a period in excess of 12 months after the
Defined benefit plans end of the period in which the employee renders the
related service are recognised as a liability at the present
The liability or asset recognised in the balance sheet in
value of the defined benefit obligation as at the Balance
respect of gratuity is the present value of the defined
Sheet date out of which the obligations are expected
benefit obligation at the end of the reporting period
to be settled with actuarial valuations being carried
less the fair value of plan assets. The defined benefit
out at each Balance Sheet date. Remeasurements,
obligation is calculated annually by actuaries using the
comprising of actuarial gains and losses are recognised
projected unit credit method. The present value of the
immediately in the balance sheet with a corresponding
defined benefit obligation is determined by discounting
debit or credit to statement of profit and loss in the
the estimated future cash outflows by reference to
period in which they occur. The obligation is measured
market yields at the end of the reporting period on
on the basis of independent actuarial valuation using
government bonds that have terms approximating to
the projected unit credit method.
the terms of the related obligation. The net interest
cost is calculated by applying the discount rate to 3.9 Taxes on income
the net balance of the defined benefit obligation and
the fair value of plan assets. This cost is included in Tax expense comprises current tax and deferred tax.
employee benefit expense in the statement of profit Current tax is the amount of the tax for the period
and loss. Remeasurement gains and losses arising determined in accordance with the Income-tax Act,
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Indraprastha Gas Limited | 20th Annual Report 2018-19
91
Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
(b) Other intangible assets Overhauling cost is depreciated over the remaining life
of the respective asset or over the period till the next
Other intangible assets comprise of computer overhauling date, whichever is earlier.
software/licenses. Such assets acquired by the
Company are initially measured at cost. After The residual values, useful lives and methods of
initial recognition, an intangible asset is carried depreciation of property, plant and equipment are
at cost less any accumulated amortisation and reviewed at each financial year end and adjusted
accumulated impairment loss. Subsequent prospectively, if appropriate.
expenditure is capitalised only if it is probable
that the future economic benefits will flow to the B. Other intangible assets
Company.
Intangible assets comprising software and licenses
(c) Capital work-in-progress are amortised on straight line method (SLM) over
the useful life of five years, which represents the
Expenditure incurred during the period of management’s assessment of economic useful life
construction, including all direct and indirect of the other intangible assets.
expenses, incidental and related to construction,
is carried forward and on completion, the costs Amortisation method, useful lives and residual
are allocated to the respective property, plant and values of other intangible assets are reviewed
equipment. Capital work-in-progress also includes at each financial year - end and adjusted, if
assets pending installation and not available for appropriate.
intended use.
3.14 Cash and cash equivalents
3.13 Depreciation and amortisation
Cash comprises cash on hand and demand deposits with
Depreciation is charged on a pro-rata basis on the banks. Cash equivalents also include short-term (with
straight line method (‘SLM’) at rates prescribed in original maturity of three months or less from the date
Schedule II to the Companies Act, 2013 which are in line of acquisition), highly liquid investments that are readily
with their estimated useful life , except for the following convertible into known amounts of cash and which are
assets where depreciation is charged on pro-rata basis subject to an insignificant risk of change in value.
over the estimated useful life of the assets based on
3.15 Cash flow statement
technical advice taking into account the nature of the
asset, the estimated usage of the asset, the operating Cash flows are reported using the indirect method,
conditions of the asset, past history of replacement, whereby profit before tax is adjusted for the effects of
anticipated technological changes, manufacturers transactions of non-cash nature and any deferrals or
warranties and maintenance support etc.: accruals of past or future cash receipts or payments.
The cash flows from operating, investing and financing
A Asset class Depreciation
activities of the Company are segregated based on the
Property, plant and equipment
available information.
- Mother compressors, online 10 years
compressors and Booster 3.16 Earnings per share
compressors
(forming part of plant and Basic earnings per share are calculated by dividing
equipment) the net profit or loss for the year attributable to
- Pipeline (forming part of plant 25 years equity shareholders by the weighted average number
and equipment) of equity shares outstanding during the year. The
- Signages (forming part of 10 years weighted average number of equity shares outstanding
buildings) during the year is adjusted for events such as bonus
- Machinery spares 5 years issue, bonus element in a rights issue, share split, and
reverse share split (consolidation of shares) that have
changed the number of equity shares outstanding,
without a corresponding change in resources.
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Indraprastha Gas Limited | 20th Annual Report 2018-19
3.18
Impairment of property, plant and Operating segments are reported in a manner
equipment, other intangible assets and consistent with the internal reporting provided to the
investments in associates chief operating decision maker. The Company operates
in a single segment of natural gas business and relevant
Assets are tested for impairment whenever events or disclosure requirements as per Ind AS 108 “Operating
changes in circumstances indicate that the carrying Segments” have been disclosed by the Company under
amount may not be recoverable and impairment loss note no 52.
is recognised for the amount by which the asset’s
carrying amount exceeds its recoverable amount. The 3.21 Fair value measurement
recoverable amount is higher of an asset’s fair value
The Company measures financial instruments such
less costs of disposal and value in use. For the purpose
as investments in mutual funds, at fair value at each
of assessing impairment, assets are grouped at the
balance sheet date.
lowest levels for which there are separately identifiable
cash inflows which are largely independent of the cash Fair value is the price that would be received to sell an
inflows from other assets or Company of assets (cash asset or paid to transfer a liability at the measurement date.
generating units). If at the balance sheet date, there is an All assets and liabilities for which fair value is measured
indication that a previously assessed impairment loss or disclosed in the standalone financial statements are
no longer exists, the recoverable amount is reassessed categorised within the fair value hierarchy, described as
and the asset is reflected at the recoverable amount follows, based on the lowest level input that is significant
subject to a maximum of depreciated historical cost to the fair value measurement as a whole:
and the same is accordingly reversed in the statement
of profit and loss. • Level 1 — Quoted (unadjusted) market prices in
active markets for identical assets or liabilities
3.19
Provisions, contingent liabilities and
contingent assets • Level 2 — Valuation techniques for which the
lowest level input that is significant to the fair value
Provisions are recognised only when there is a present measurement is directly or indirectly observable
obligation, as a result of past events, and when a reliable
estimate of the amount of obligation can be made at the • Level 3 — Valuation techniques for which the
reporting date. These estimates are reviewed at each lowest level input that is significant to the fair value
reporting date and adjusted to reflect the current best measurement is unobservable.
estimates. Provisions are discounted to their present
For the purpose of fair value disclosures, the Company
values, where the time value of money is material.
has determined classes of assets and liabilities on the
Contingent liability is disclosed for:
basis of the nature, characteristics and risks of the
asset or liability and the level of the fair value hierarchy
as explained above.
93
Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
3.22 Financial instruments (iii) Financial assets at fair value through
profit or loss (FVTPL)
I. Financial assets
A financial asset which is not classified
a. Initial recognition and measurement in any of the above categories are
subsequently fair valued through the
All financial assets are recognised initially at
statement of profit and loss.
fair value plus, in case of financial assets not
recorded at fair value through profit or loss, c. Impairment of financial assets
transaction costs that are attributable to the
acquisition of the financial asset, which are The Company assesses on a forward
not at fair value through profit and loss, are looking basis the expected credit losses
added to fair value on initial recognition. (ECL) associated with its assets measured
Transaction costs of financial assets carried at at amortised cost and assets measured at
fair value through profit or loss are expensed fair value through other comprehensive
in statement of profit and loss. income. The impairment methodology
applied depends on whether there has been
b. Subsequent measurement a significant increase in credit risk. Note
47 details how the Company determines
(i) Financial assets carried at amortised
whether there has been a significant increase
cost
in credit risk.
A financial asset is subsequently
d. Derecognition of financial assets
measured at amortised cost if it is
held within a business model whose A financial asset is derecognised when:
objective is to hold the asset in order to
collect contractual cash flows and the - The Company has transferred the right
contractual terms of the financial asset to receive cash flows from the financial
give rise on specified dates to cash flows assets or
that are solely payments of principal
- Retains the contractual rights to receive
and interest on the principal amount
the cash flows of the financial assets, but
outstanding.
assumes a contractual obligation to pay
(ii) Financial assets at fair value through the cash flows to one or more recipients.
other comprehensive income
Where the entity transfers the financial asset,
(FVTOCI)
it evaluates the extent to which it retains
A financial asset is subsequently the risk and rewards of the ownership of
measured at fair value through other the financial assets. If the entity transfers
comprehensive income if it is held within substantially all the risks and rewards of
a business model whose objective is ownership of the financial asset, the entity
achieved by both collecting contractual shall derecognise the financial asset and
cash flows and selling financial assets recognise separately as assets or liabilities any
and the contractual terms of the financial rights and obligations created or retained in
asset give rise on specified dates to the transfer. If the entity retains substantially
cash flows that are solely payments of all the risks and rewards of ownership of the
principal and interest on the principal financial asset, the entity shall continue to
amount outstanding. recognise the financial asset.
94
Indraprastha Gas Limited | 20th Annual Report 2018-19
95
Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
(iii)
Useful lives of depreciable/amortizable (v) Fair value measurement
assets
Management applies valuation techniques to
Management reviews its estimate of the useful lives determine the fair value of financial instruments
of depreciable/amortizable assets at each reporting (where active market quotes are not available)
date, based on the expected utility of the assets. and non-financial assets. This involves developing
Uncertainties in these estimates relate to technical estimates and assumptions consistent with how
and economic obsolescence that may change the market participants would price the instrument.
utility of certain property, plant and equipment. Management bases its assumptions on observable
data as far as possible but this is not always
(iv) Impairment of trade receivables available. In that case management uses the best
information available. Estimated fair values may
Trade receivables do not carry any interest and
vary from the actual prices that would be achieved
are stated at their normal value as reduced by
in an arm’s length transaction at the reporting date
appropriate allowances for estimated irrecoverable
(refer note 46).
amounts. Individual trade receivables are written
off when management deems them not to be (vi) Evaluation of indicators for impairment of
collectible. Impairment is recognised based on the assets
expected credit losses, which are the present value
of the cash shortfall over the expected life of the The evaluation of applicability of indicators of
financial assets. impairment of assets is based on assessment of
several external and internal factors which could
result in deterioration of recoverable amount of
the assets.
96
Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
4 Property, plant and equipment, capital work-in-progress and other intangible assets
(Rs. in Crores)
Particulars Property, plant and equipment Other Capital work-
intangible in-progress
assets (refer note
Total
Freehold Land on Buildings Plant and Furniture Vehicles Data Computer 4.3 and 4.4)
land perpetual lease (refer equipment and processing software/
(refer note 4.1) note 4.2) fixtures equipment licenses
Gross block
Balance as at 1 April 2017 19.92 16.98 348.18 1,967.19 13.09 7.65 6.18 2,379.19 20.43 351.79
Additions 1.18 - 59.47 427.92 3.27 0.17 6.26 498.27 7.55 492.89
Disposals/ adjustments - - 10.04 5.06 0.77 0.09 0.90 16.86 - 458.66
Balance as at 31 March 2018 21.10 16.98 397.61 2,390.05 15.59 7.73 11.54 2,860.60 27.98 386.02
Additions 7.05 - 23.41 596.22 1.49 4.33 4.34 636.84 11.09 685.30
Disposals/ adjustments - - 1.67 15.53 0.09 0.01 0.80 18.10 - 593.24
Balance as at 31 March 2019 28.15 16.98 419.35 2,970.74 16.99 12.05 15.08 3,479.34 39.07 478.08
Accumulated depreciation and
amortisation
Balance as at 1 April 2017 - - 31.45 238.09 3.29 1.54 1.64 276.01 6.46 -
Depreciation and amortisation - - 18.16 152.92 1.64 1.02 2.51 176.25 5.04 -
charge for the year
Disposals - - 2.19 3.30 0.74 0.09 0.89 7.21 - -
Balance as at 31 March 2018 - - 47.42 387.71 4.19 2.47 3.26 445.05 11.50 -
Depreciation and amortisation - - 19.13 169.57 1.80 1.16 3.39 195.05 6.02 -
charge for the year
Disposals - - 1.63 13.64 - - 0.79 16.06 - -
Balance as at 31 March 2019 - - 64.92 543.64 5.99 3.63 5.86 624.04 17.52 -
Net block as at 31 March 2018 21.10 16.98 350.19 2,002.34 11.40 5.26 8.28 2,415.55 16.48 386.02
Net block as at 31 March 2019 28.15 16.98 354.43 2,427.10 11.00 8.42 9.22 2,855.30 21.55 478.08
Notes:
4.1 Gross block of land on perpetual lease includes land amounting to Rs. 16.98 crores (previous year: Rs. 16.98 crores) obtained on lease from local authorities under licensing arrangement and
pending execution of the related lease agreements.
4.2 Buildings include buildings which have been constructed on land acquired on lease from various Government Authorities. (refer note 38).
4.3 The expenditure incidental to setting up of project is included in capital work-in-progress (CWIP) which is apportioned to the property, plant and equipment on completion of project. The
Company has capitalised salary, wages and bonus amounting to Rs. 7.68 crores (previous year Rs. 6.28 crores) to the cost of property, plant and equipment /capital work-in-progress.
Indraprastha Gas Limited | 20th Annual Report 2018-19
97
4.4 Capital work-in-progress has been netted off by Rs. 1.57 crores towards provision for obsolete and slow moving capital work-in-progress (previous year Rs. 1.90 crores)
Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
5 Non-current financial assets- investments
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Investments in equity instruments (measured at cost)
Trade (unquoted)
Investments in associates:
(a) Central U.P. Gas Limited (incorporated in India, operating in cities of Kanpur
and Bareilly)
Proportion of Company's ownership 50% 50%
3,00,00,000 (31 March 2018: 3,00,00,000) equity shares of Rs. 10 each fully paid 68.12 68.12
up in Central U.P. Gas Limited purchased at Rs. 22.65 per share
Incidental expenses amounting to Rs. 0.17 crores included in the cost of
investments.
(b) Maharashtra Natural Gas Limited (incorporated in India, operating in city of
Pune and adjoining areas)
Proportion of Company's ownership 50% 50%
5,00,00,000 (31 March 2018: 5,00,00,000) equity shares of Rs. 10 each fully paid 190.00 190.00
up in Maharashtra Natural Gas Limited purchased at Rs. 38 per share
258.12 258.12
Aggregate amount of unquoted investments 258.12 258.12
6 Loans - non-current
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Security deposits
- Considered good - unsecured 11.47 8.37
11.47 8.37
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Indraprastha Gas Limited | 20th Annual Report 2018-19
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Investment in mutual funds (unquoted) - at fair value through profit and loss 1,285.87 889.57
(refer 11.1 below)
1,285.87 889.57
Aggregate amount of unquoted investments and market value thereof 1,285.87 889.57
99
Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
11.1 Details of Unit and Values (Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
(a) 2,52,488.807 units (31 March 2018: Nil) in SBI Magnum Ultra Short Duration 105.23 -
Fund, Direct Growth
(b) 2,50,85,667.555 units (31 March 2018: Nil) in HDFC Low Duration Fund, 102.50 -
Direct Growth
(c) 5,06,076.717 units (31 March 2018: 5,45,159.307) in IDBI Liquid Fund, Direct 101.37 101.43
Growth
(d) 2,21,645.568 units (31 March 2018: 3,66,246.783) in Reliance Liquid Fund, 101.11 102.82
Direct Growth
(e) 2,57,867.07 units (31 March 2018: Nil) in HDFC Money Market Fund, Direct 101.07 -
Growth
(f) 4,15,521.645 units (31 March 2018: Nil) in SBI Magnum Low Duration Fund, 101.03 -
Direct Growth
(g) 1,96,56,614.166 units (31 March 2018: Nil) in JM Liquid Fund, Direct Growth 100.62 -
(h) 3,33,75,274.929 units (31 March 2018: Nil) in Reliance Floating Rate Fund, 100.51 -
Direct Growth
(i) 3,07,05,080.77 units (31 March 2018: Nil) in HDFC Floating Rate Debt Fund, 100.42 -
WP Direct Growth
(j) 3,58,700.377 units (31 March 2018: Nil) in Franklin India Liquid Fund, Direct 100.38 -
Growth
(k) 36,24,187.29 units (31 March 2018: 30,70,190.191) in ICICI Prudential Liquid 100.18 78.95
Fund, Direct Growth
(l) 4,96,310.478 units (31 March 2018: Nil) in Mirae Asset Cash Management 97.85 -
Fund, Direct Growth
(m) 12,55,147.14 units (31 March 2018: 33,95,611.639) in Aditya Birla Sun Life 37.71 94.84
Liquid Fund, Direct Growth
(n) 95,190.381 units (31 March 2018: Nil) in Tata Liquid Fund, Direct Growth 28.03 -
(o) 25,678.43 units (31 March 2018: Nil) in UTI Liquid Cash Plan, Direct Growth 7.86 -
(p) Nil units (31 March 2018: 5,28,406.20) in Axis Liquid Fund, Direct Growth - 101.85
(q) Nil units (31 March 2018: 4,25,740.711) in Invesco India Liquid Fund, Direct - 101.84
Growth
(r) Nil units (31 March 2018: 41,73,998.828) in ICICI Prudential Money Market - 100.37
Fund, Direct Growth
(s) Nil units (31 March 2018: 3,86,970.268) in L & T Liquid Fund, Direct Growth - 92.21
(t) Nil units (31 March 2018: 3,43,853.009) in UTI Money Market, Direct Growth - 67.04
(u) Nil units (31 March 2018: 13,66,252.326) in DHFL Pramerica Instacashplus - 30.85
Fund, Direct Growth
(v) Nil units (31 March 2018: 69,907.135) in DSP BlackRock Liquidity Fund, Direct - 17.37
Growth
Total 1,285.87 889.57
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Indraprastha Gas Limited | 20th Annual Report 2018-19
All amounts are short-term. The net carrying value of trade receivables is considered a reasonable approximation of fair value.
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Balances with banks in current accounts 25.88 29.07
Cash on hand 11.89 5.01
Balances with banks in fixed deposits with original maturity of less than three months 33.39 169.60
71.16 203.68
There are no repatriation restrictions with regard to cash and cash equivalents as at the end of the reporting period and prior
periods.
Note:
a) Not due for deposit to the Investor Education and Protection Fund.
101
Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
15 Loans - current
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Security deposits
i. Considered good - secured - -
ii. Considered good - unsecured (refer note 15.1 below) 3.78 6.48
iii. Deposits - credit impaired 1.50 3.00
Less : Allowances for expected credit losses (1.50) (3.00)
3.78 6.48
15.1 Security deposits, inter-alia comprise of deposits given to related parties as below :
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
(a) GAIL (India) Limited 0.10 0.10
(b) Bharat Petroleum Corporation Limited 0.01 0.01
0.11 0.11
The management assesses the fair value of these financial assets not to be materially different from the amounts recognised
in the financial statements.
102
Indraprastha Gas Limited | 20th Annual Report 2018-19
The Company has one class of equity shares having a par value of Rs. 2 each (previous year Rs. 2 each). Each shareholder is eligible
for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in
the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining
assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
18.2 Reconciliation of the number of equity shares outstanding as at the beginning and at the end of
the year:
18.3 Details of shares held by each shareholder holding more than 5% shares:
103
Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
18.4 The Company has not issued any shares pursuant to contract without payment being received in cash, or allotted as
fully paid up by way of bonus shares or bought back any shares during the period of five years immediately preceding
the date of balance sheet. Further, there are no shares which are reserved for issue under options and contracts or
commitments for the sale of shares or disinvestment.
18.5 During the current year, the Company paid dividend of Rs. 2 per equity share for financial year 2017-18 amounting to Rs.
140 crores (excluding dividend distribution tax of Rs. 28.78 crores) [in the previous year, Rs. 5.00 per equity share for
financial year 2016-17 amounting to Rs. 70 crores (excluding dividend distribution tax of Rs. 14.25 crores].
19 Other equity
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
(a) General reserve:
Balance as at the beginning/ end of the year 303.50 303.50
(b) Retained earnings:
Opening balance 3,069.40 2,483.06
Profit for the year 786.67 670.77
Dividends distributed to equity shareholders (refer note no: 18.5 above) (140.00) (70.00)
Dividend distribution tax on dividend paid on equity share capital (refer note (28.78) (14.25)
18.5 above)
3,687.29 3,069.58
Items of other comprehensive income recognised directly in retained
earnings
- Remeasurement of post-employment benefit obligation, net of tax (0.94) (0.18)
Closing balance 3,686.35 3,069.40
3,989.85 3,372.90
Nature of reserves
General reserve
Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified
percentage in accordance with Companies (Transfer of profits to Reserve) Rules,1975. Consequent to introduction of the
Companies Act 2013, there is no such requirement to mandatorily transfer a specified percentage of the net profit to general
reserve.
Retained earnings
Retained earnings are created from the profit / loss of the Company, as adjusted for distributions to owners, transfers to other
reserves, etc.
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Indraprastha Gas Limited | 20th Annual Report 2018-19
105
Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
23 Other non-current liabilities
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Others 0.97 0.81
0.97 0.81
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Indraprastha Gas Limited | 20th Annual Report 2018-19
30 Other income
(Rs. in Crores)
Particulars Year ended Year ended
31 March 2019 31 March 2018
Interest income from banks 36.39 21.89
Dividend income from:
- investments in mutual funds - 4.27
- investments in associates 17.70 9.49
Profit on sale of mutual funds 73.57 51.25
Net gain arising on debt mutual funds designated as at fair value through profit or 15.22 10.22
loss
Liabilities/provisions no longer required, written back 0.10 0.21
Provision for obsolete and slow moving stores and spares, written back 0.02 1.15
Provision for obsolete and slow moving capital work-in-progress, written back 0.33 -
Allowances for expected credit loss no longer required, written back 1.50 1.50
Net gain on foreign currency transaction and translation 0.05 0.07
Other non-operating income 1.27 -
146.15 100.05
107
Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
31 Purchases of stock-in-trade of natural gas
(Rs. in Crores)
Particulars Year ended Year ended
31 March 2019 31 March 2018
Natural gas 3,397.89 2,491.81
3,397.89 2,491.81
34 Finance costs
(Rs. in Crores)
Particulars Year ended Year ended
31 March 2019 31 March 2018
Finance costs on defined benefit obligations 1.07 1.58
Interest on late deposit of advance tax 0.26 -
Other finance costs 0.72 0.11
2.05 1.69
35 Other expenses
(Rs. in Crores)
Particulars Year ended Year ended
31 March 2019 31 March 2018
Operating expenses at CNG stations 182.53 160.56
Stores and spares consumed 27.03 20.93
Power and fuel 209.58 173.69
Rent 105.17 92.49
Hire charges:
-Vehicle 25.23 22.75
-Equipment 1.57 0.86
Rates and taxes 2.33 1.82
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Indraprastha Gas Limited | 20th Annual Report 2018-19
36 Contingent liabilities
The Company had received a show cause notice dated 5 June 2012 from the Directorate General of Central Excise
Intelligence for not paying excise duty on the facility discount paid to Delhi Transport Corporation from December
2008 to August 2010 and raised a demand of Rs. 2.42 crores (previous year Rs. 2.42 crores) which the Company duly
deposited and, however, filed an appeal on 20 August 2013 with the Commissioner of Central Excise. The demand
was confirmed by the Commissioner of Excise in its order dated 30 September 2013 and a penalty of Rs. 2.42 crores
(excluding interest) was imposed on the Company. The Company filed an appeal on 10 January 2014 against the
109
Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
demand including penalty with Central Excise and Service Tax Appellate Tribunal and the stay has been granted by
the tribunal against the demand. The case is remanded back to the assessing authority by Central Excise and Service
Tax Appellate Tribunal to submit additional documents along with other evidence.
In respect of assessment year 2013-14 and 2014-15, the assessing officer had disallowed additional depreciation
claimed by the Company on addition of assets pertaining to the CNG business. The department has raised a demand
of Rs. 2.51 crores and Rs. 2.01 crores for the assessment year 2013-14 and 2014-15 respectively including interest.
Out of the said demand, Rs. 4.01 crores has been adjusted against the refund for the assessment year 2014-15 and
demand order for the balance amount of Rs. 0.51 crores has been issued by the Department for assessment year
2013-14. The Company had filed an appeal with the Commissioner of Income-tax (Appeals) which was ruled in favour
of the revenue. The Company has further challenged the Order of the Commissioner of Income-tax (Appeals) in the
Income-tax Appellate Tribunal. The Company has also deposited under protest.Rs. 0.20 crores against the demand
of Rs. 0.51 crores for the assessment year 2013-14.
In respect of assessment year 2011-12, 2012-13 and 2015-16, the assessing officer had disallowed additional
depreciation claimed by the Company on addition of assets pertaining to the CNG business. The department has
raised a demand of Rs. 8.23 crores, Rs. 10.68 crores and Rs. 1.09 crores for the assessment year 2011-12, 2012-13
and 2015-16 respectively. Out of the said demand, Rs. 1.65 crores and Rs. 2.14 crores has been deposited under
protest for the assessment year 2011-12 and 2012-13 respectively and Rs. 1.09 crores has been adjusted against
the refund of assessment year 2015-16. The Company had filed appeals with the Commissioner of Income Tax
(Appeals) against the decision of the Income-tax department which was ruled in favour of Company in the current
year. Subsequently, the Income- tax department has further filed an appeal against the order of Commissioner of
Income-tax (Appeals) in Income-tax Appellate Tribunal.
In the current year, the assessing officer had disallowed additional depreciation claimed by the Company in respect
of assessment year 2016-17, on addition of assets pertaining to the CNG business. The department has raised a
demand of Rs. 0.84 crores for the assessment year 2016-17 including interest. The Company has filed an appeal with
Commissioner of Income Tax (Appeals) against the assessment order passed by income-tax department for AY 2016-17.
The Company is of the view that such disallowance is not tenable and accordingly no provision has been made for
the said demands.
Delhi Development Authority (DDA) has raised a total demand of Rs. 155.64 crores during 2013-14 on account of
increase in license fees in respect of sites taken by the Company on lease from DDA for setting up compressed
natural gas (CNG) stations in Delhi. The increase in license fees was related to the period 1 April 2007 to 31 March
2014. The Company has filed a writ petition on 11 October 2013 before the Hon’ble Delhi High Court against the
demand raised by DDA as the revised license fees has been increased manifold and made applicable retrospectively
from financial year 2007-08. Further, DDA vide communication dated 29 August 2016 has revised the total demand
to Rs. 330.73 crores for the period upto 31 March 2016. The same was also reported in the previous year(s) as a
contingent liability.
The matter is pending in the Hon’ble High Court of Delhi and the Company, based on the legal opinion taken, is of the
view that such demand is not tenable and accordingly no provision has been made for this aforementioned demand
raised by DDA in the books of accounts.
(d) In the current year, the Company received a demand amounting to Rs. 0.04 crores from the Commercial Tax
department, Uttar Pradesh which has been deposited by the Company under protest.
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Indraprastha Gas Limited | 20th Annual Report 2018-19
2 There are numerous interpretive issues relating to the Hon’ble Supreme Court (SC) judgment dated 28 February 2019
on provident fund on which the Company is seeking legal advice specially on the retrospective applicability of the same.
However, the Company for the current year is complying with the statutory requirements of the same and does not
believes that any material liability would devolve on it.
3 During the current year, GAIL (India) Limited has raised the following claims against the Company in relation to the
allocation and actual utilisation of domestic gas amounting to :
- Rs. 40.70 crores which has later been revised to Rs. 0.17 crores post reconciliation of the computation performed
by the Company and GAIL (India) Limited; and
- Rs. 35.12 crores and Rs. 5.12 crores for the gas supplied by the Company to Adani Gas Limited (AGL) and Haryana
City Gas Distribution Limited (HCGDL) respectively. The Company has raised claims of the corresponding amount to
AGL and HCGDL respectively. Both the aforementioned companies are in the process of reconciling the data with
GAIL (India) Limited. Further, based on the agreements entered into by the company with AGL & HCGDL respectively,
and subsequent legal advice obtained on this matter, the management believes that the company has the right to
recover the said amount if charged by GAIL(India) Limited, from these companies. Accordingly, the management
does not believes that any material liability would devolve on the Company.
37
Bank guarantees
(i) The Company was in earlier years granted authorization for laying, building, operating and expanding CGD network in the
geographical area of Karnal and Rewari (Haryana) under the Petroleum and Natural Gas Regulatory Board (Authorizing
entities to lay, build, operate or expand city or local Natural Gas Distribution Networks) Regulation 2008 against which
the Company had submitted a performance bank guarantee of Rs. 1,236 crores (previous year Rs. 1,236 crores) and
Rs. 1,052.36 crores (previous year Rs. 1,052.36 crores) respectively to Petroleum and Natural Gas Regulatory Board to
cover the construction obligation for creation of infrastructure in the first 5 years.Further, during the year, the Company
has been granted authorization for laying, building, operating and expanding City Gas Distribution (CGD) network in the
geographical area of Meerut (except area already authorised) Shamli, Muzaffarnagar, Kaithal, Ajmer, Pali, Rajsamand,
Kanpur (except area already authorised), Fatehpur and Hamirpur under the Petroleum and Natural Gas Regulatory Board
(Authorizing entities to lay, build, operate or expand city or local Natural Gas Distribution Networks) Regulation 2008. The
Company has further submitted a performance bank guarantee amounting to Rs. 158 crores to Petroleum and Natural
Gas Regulatory Board to cover the construction obligation for creation of infrastructure in the first 5 years.
(ii) The Company’s commitment towards unexpired bank guarantees other than above mentioned in point (i) is
Rs. 375.39 crores (previous year Rs. 368.41 crores) given in the ordinary course of business.
38 The Company has installed various CNG Stations on land leased from various government authorities for periods ranging
from one to five years. However, assets constructed/installed on such land are depreciated generally at the rates specified in
Schedule II to the Companies Act, 2013, as the management does not foresee non-renewal of the above lease arrangements
by the authorities. The net block of such assets amounts to Rs. 278.99 crores (previous year Rs. 267.60 crores).
39 Security deposits from customers of natural gas, refundable on termination/alteration of the gas sales agreements, are
considered as current liabilities as every customer has a right to request for termination of supply and the Company does
not have a contractual right to delay payment for more than 12 months.
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Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
40 As per Section 135 of the Companies Act, 2013, a company, meeting the eligibility criteria, needs to spend at least 2%
of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR)
activities. The Company’s CSR programs/projects focuses on sectors and issues as mentioned in Schedule VII read with
Section 135 of Companies Act, 2013. A CSR committee has been formed by the Company as per the Act.
a) Gross amount required to be spent by the Company during the year is Rs. 16.58 crores (previous year Rs. 14.30
crores)
b) Amount spent during the year on CSR
(Rs. in Crores)
S.No Particulars In cash Yet to be Total
paid in cash
(i) Construction / acquisition of any asset - - -
(ii) On purposes other than (i) above: 14.49 - 14.49
Empowerment of women and girl child 2.11 - 2.11
Eradication of poverty 0.98 - 0.98
Promotion of healthcare and sanitation 2.47 - 2.47
Promotion of education 8.12 - 8.12
Others 0.81 - 0.81
41 The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development Act,
2006 (‘MSMED Act’). The disclosures pursuant to the said MSMED Act are as follows:
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
(a) The principal amount and the interest due thereon remaining unpaid to any
supplier as at the end of each accounting year
-Principal amount due to any supplier* 197.27 126.15
-Interest due on above 0.37 0.11
(b) The amount of interest paid by the buyer in terms of section 16 of the - -
MSMED Act 2006 along with the amounts of the payment made to the
supplier beyond the appointed day during each accounting year
(c) The amount of interest due and payable for the period of delay in making - -
payment (which have been paid but beyond the appointed day during
the year) but without adding the interest specified under the MSMED Act
2006.
(d) The amount of interest accrued and remaining unpaid at the end of each 0.48 0.11
accounting year
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Indraprastha Gas Limited | 20th Annual Report 2018-19
42 Employee benefits:
The following tables summarizes the components of net benefit expense recognized in the statement of profit and loss
and other comprehensive income and the amount recognized in the balance sheet for the respective plans.
(Rs. in Crores)
Particulars Non current Current
31 March 2019 31 March 2018 31 March 2019 31 March 2018
Provision for gratuity (refer note below) 2.16 1.73 0.31 0.37
Provision for leave encashment 17.39 11.10 0.72 0.54
19.55 12.83 1.03 0.91
Gratuity (funded)
(Rs. in Crores)
Gratuity benefits
Particulars Year ended Year ended
31 March 2019 31 March 2018
Change in present value of the benefit obligations are as follows:
Present value of obligations at the beginning of the year 10.89 8.89
Current service cost 1.31 1.00
Interest cost 0.81 0.67
Actuarial (gain)/loss on obligation 1.44 0.27
Benefits paid (0.26) (0.12)
Past service cost including curtailment gains/losses - 0.18
Present value of obligation at the year end 14.19 10.89
Change in plan assets
Fair value of plan asset at the beginning of the year 8.79 -
Actual return on plan assets (including interest) 0.80 -
Employer contribution 2.49 8.79
Mortality charges (0.10) -
Benefits paid (0.26) -
Fair value of plan asset at the end of the year* 11.72 8.79
*The fund is managed by Life Insurance Corporation of India and category-wise composition of plan assets is not available with the Company.
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Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
Gratuity (funded) (Contd..)
(Rs. in Crores)
Gratuity benefits
Particulars Year ended Year ended
31 March 2019 31 March 2018
Net liability recognised in balance sheet
Present value of the benefit obligations at the end of the year 14.19 10.89
Fair value of plan asset 11.72 8.79
Net liability recognised in balance sheet as provision 2.47 2.10
Non-current portion of net liability 2.16 1.73
Current portion of net liability 0.31 0.37
2.47 2.10
Expenses recognised in the statement of profit and loss:
Current service cost 1.31 1.00
Past service cost including curtailment gains/losses - 0.18
Interest cost in benefit obligation (net) 0.12 0.67
Total expense recognised in statement of profit and loss 1.43 1.85
Expense recognised in other comprehensive income
Actuarial loss recognised during the year 1.44 0.27
Breakup of actuarial loss on defined benefit obligation:
Actuarial loss on arising from change in financial assumption 0.29 0.38
Actuarial (gain)/loss on arising from experience adjustment 1.15 (0.11)
Total actuarial loss 1.44 0.27
Gratuity benefits
Particulars Year ended Year ended
31 March 2019 31 March 2018
Discount rate 7.65% 7.80%
Expected salary escalation rate 6.50% 6.50%
Notes:
1. The discount rate is based upon the market yields available on Government bonds at the accounting date relevant to
currency of benefit payments for a term that matches the liability.
2. The estimates for future salary increase rate takes account of inflation, seniority, promotion, business plan, human resource
policy and other relevant factors on long term basis.
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Indraprastha Gas Limited | 20th Annual Report 2018-19
Sensitivity analysis
The significant actuarial assumptions for the determination of the defined benefit obligation are the discount rate, the salary
growth rate and the average life expectancy. The calculation of the net defined benefit liability is sensitive to these assumptions.
The following table summarises the effects of changes in these actuarial assumptions on the defined benefit liability:
(Rs. in Crores)
As at 31 March 2019 As at 31 March 2018
Particulars Increase by Decrease by Increase by 1% Decrease by 1%
0.5% 0.5%
Discount rate
(Decrease)/ increase in the defined benefit (0.93) 1.02 (1.37) 1.51
liability
Salary growth rate
(Decrease)/ increase in the defined benefit 1.03 (0.95) 1.52 (1.39)
liability
The present value of the defined benefit obligation calculated with the same method (project unit credit) as the defined
benefit obligation recognised in the balance sheet. The sensitivity analysis are based on a change in one assumption while not
changing all other assumptions. This analysis may not be representative of the actual change in the defined benefit obligation
as it is unlikely that the change in the assumptions would occur in isolation of one another as some of the assumptions may
be correlated.
The Company makes Provident Fund contributions which are defined contribution plans, for qualifying employees. Under the
scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company
recognised Rs. 4.23 crores for provident fund contributions (previous year Rs. 3.35 crores) in the statement of profit and loss.
The contributions payable to these plans by the Company are at rates specified in the rules of the scheme.
115
Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
43 Information on related party transactions pursuant to Ind AS 24 - Related party Disclosures
List of related parties:
(a) Entities having significant influence over the Company (promoter venturers)
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Indraprastha Gas Limited | 20th Annual Report 2018-19
117
Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
Transactions/balances outstanding with related parties in the ordinary course of business: (Contd..)
(Rs. in Crores)
Particulars Year ended Year ended
31 March 2019 31 March 2018
Balance outstanding as at the year end:
Trade payables 11.50 31.97
Trade receivables 18.20 15.07
Security deposit paid 0.01 0.01
Earnest Money Deposit received - 0.04
Bank guarantee outstanding at the year end 28.80 30.73
Other advances 0.05 -
Central U.P. Gas Limited
Transactions during the year:
Dividend received 4.50 5.10
Sitting fees received 0.04 0.05
Security Deposit given 0.02 -
Security Deposit refund 0.02 -
Reimbursement of advertisement expenses paid by Company - 0.65
Balance outstanding as at the year end:
Trade receivable - 0.65
Maharashtra Natural Gas Limited
Transactions during the year:
Dividend received 13.20 4.39
Sitting fees received 0.01 0.03
GAIL Gas Limited
Transactions during the year:
Purchase of stock-in-trade of natural gas 132.77 132.89
Reimbursement of advertisement expenses paid by Company - 1.29
Standby letter of credit/ bank guarantee issued/renewed - 8.46
Balance outstanding as at the year end:
Trade payables 5.74 5.62
Trade receivable - 1.29
Bank guarantees 8.46 8.46
Petronet LNG Limited
Transactions during the year:
Purchase of stock-in-trade of natural gas 44.82 0.75
Standby letter of credit/ bank guarantee issued/renewed 11.58 0.75
Net movement in standby letter of credit/ bank guarantee - (0.75)
Balance outstanding as at the year end:
Trade payable 9.62 -
Bank guarantees 11.58 -
Green Gas Limited
Transactions during the year:
Reimbursement of advertisement expenses paid by Company - 0.65
Balance outstanding as at the year end:
Trade receivable 0.06 0.65
Rajasthan State Gas Limited
Transactions during the year:
Sale of traded goods 0.01 -
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Indraprastha Gas Limited | 20th Annual Report 2018-19
44 Income-tax expense
(Rs. in Crores)
Particulars Year ended Year ended
31 March 2019 31 March 2018
(a) Income-tax expense
Current tax
Current tax on profits for the year 370.31 316.94
Total current tax expense 370.31 316.94
Deferred tax
(Increase)/ decrease in deferred tax assets (4.27) 14.59
Increase in deferred tax liabilities 47.30 30.19
Total deferred tax expense 43.03 44.78
Income tax expense reported in the statement of profit or loss 413.34 361.72
Deferred tax related to items recognised in OCI during the year
Net loss/(gain) on remeasurements of defined benefit plans (0.50) (0.09)
Tax expense 412.84 361.63
119
Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
(b) Reconciliation of tax expense and the accounting profit multiplied by India’s tax rate:
(Rs. in Crores)
Particulars Year ended Year ended
31 March 2019 31 March 2018
Profit before income-tax expense 1,200.01 1,032.49
Tax at the Indian tax rate of 34.944% (2017-2018 – 34.608%) 419.33 357.32
Tax effect of amounts which are not deductible (taxable) in calculating taxable
income:
Effect of non deductible expenses 5.41 4.30
Effect of (allowances)/disallowances (6.62) 1.32
Income exempt from tax (6.19) (4.76)
Others 0.91 3.45
Income-tax expense 412.84 361.63
Note :
Investments in associates as at the close of the year ended 31 March 2019 and 31 March 2018 are carried at cost, per the
exemption availed by the Company. Hence, the same has not been considered in the above table.
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Indraprastha Gas Limited | 20th Annual Report 2018-19
The following tables present financial assets and liabilities measured at fair value in the statement of financial position in
accordance with the fair value hierarchy. This hierarchy groups financial assets and liabilities into three levels based on
the significance of inputs used in measuring the fair value of the financial assets and liabilities. The fair value hierarchy
has the following levels:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The level within which the financial asset or liability is classified is determined based on the lowest level of significant
input to the fair value measurement.
There are no financial liabilities measured at fair value as at 31 March 2019 and 31 March 2018.
The financial assets measured at fair value in the statement of financial position are grouped into the fair value hierarchy
as on 31 March 2018 and 31 March 2019 as follows:
(Rs. in Crores)
Level 1 Level 2 Level 3 Total
As at 31 March 2018
Investment in mutual funds 889.57 - - 889.57
Total 889.57 - - 889.57
As at 31 March 2019
Investment in mutual funds 1,285.87 - - 1,285.87
Total 1,285.87 - - 1,285.87
The investments in mutual funds have been fair valued per net asset value (NAV) as at reporting date.
The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents are considered
to be the same as their fair values, due to their short-term nature.
Security deposits received have not been fair valued as the same are repayable on demand, so there is no fixed term
available for the purpose of discounting. Further, security deposits given have not been fair valued as the impact of the
fair valuation is not material.
47
Financial risk management
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact
of the same in the financial statements.
(i)
Foreign currency risk
The Company is exposed to foreign exchange risk mainly through its purchases of capital items from overseas suppliers
in various foreign currencies. The Company evaluates exchange rate exposure arising from foreign currency transactions
and follows established risk management policies to manage its risks.
121
Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
The Company’s foreign currency exposure on accounts payable that have not been hedged by a derivative instrument or
otherwise are given below:
There shall be no material impact on profit before tax due to 1% increase/decrease in foreign exchange rates.
(ii)
Credit risk
Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due to
the Company causing financial loss. It arises from cash and cash equivalents, derivative financial instruments, deposits
from financial institutions and principally from credit exposures to customers relating to outstanding receivables. The
Company’s maximum exposure to credit risk is limited to the carrying amount of financial assets recognized at reporting
date :
Financial assets for which loss allowance is measured using 12 months expected credit losses:-
(Rs. in Crores)
Exposure to credit risk As at As at
31 March 2019 31 March 2018
Security deposits (non-current) 11.47 8.37
Balance with banks in fixed deposits 0.30 0.30
(under lien against bank guarantee)
Cash and cash equivalents (except cash on hand) 59.27 198.67
Other bank balances 535.93 354.35
Unbilled revenue 32.94 21.43
Interest accrued on fixed deposits 11.46 6.34
Security deposits with related parties and others 3.78 6.48
655.15 595.94
Financial assets for which loss allowance is measured using Lifetime Expected Credit Losses
Trade receivables 226.46 228.53
An analysis of age of trade receivables at each statement of financial position date is summarized as follows:
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
upto 1 year 217.88 222.93
upto 2 years 3.29 1.73
upto 3 years 2.96 1.49
upto 4 years 1.04 1.19
upto 5 years 0.91 0.82
More than 5 years 0.38 0.37
226.46 228.53
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Indraprastha Gas Limited | 20th Annual Report 2018-19
Balances with banks is subject to low credit risks due to good credit ratings assigned to these banks. Further, security
deposits paid includes payment made to government agencies which are considered low credit risk
(iii)
Liquidity risk
Liquidity risk is the risk that suitable sources of funding for the Company’s business activities may not be available.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability
of funding through an adequate amount of committed credit facilities to meet obligations when due and to close
out market positions. Management monitors rolling forecasts of the Company’s liquidity position and cash and cash
equivalents on the basis of expected cash flows. Short term liquidity requirements comprises mainly of trade payables
and employee dues arising during normal course of business as on each statement of financial position date. Long term
liquidity requirement is assessed by the management on periodical basis and is managed through internal accruals. As
at each statement of financial position date, the Company’s liabilities having contractual maturities (including interest
payments where applicable) are summarized as follows:
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting
date based on contractual undiscounted payments:
As at 31 March 2019
(Rs. in Crores)
Particulars Less than 1 More than 1 Total
year year
Trade payables 488.48 - 488.48
Security deposits from customers 649.27 - 649.27
Unclaimed dividends 0.86 - 0.86
Security deposits from vendors 3.54 - 3.54
Employee payable 28.29 - 28.29
Creditor for capital goods 295.80 - 295.80
Security deposits - 0.41 0.41
1,466.24 0.41 1,466.65
123
Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
As at 31 March 2018
(Rs. in Crores)
Particulars Less than 1 More than 1 Total
year year
Trade payables 338.58 - 338.58
Security deposits from customers 544.65 - 544.65
Unclaimed dividends 0.56 - 0.56
Security deposits from vendors 5.17 - 5.17
Employee payable 23.13 - 23.13
Creditor for capital goods 224.19 224.19
1136.28 - 1136.28
(iv)
Price risk
The Company is not exposed to sensitivity to price risk in regards to its financial assets and liabilities.
(v)
Interest risk
The Company’s policy is to minimise interest rate cash flow risk exposures. The Company is exposed to the interest rate
risk on fixed deposit and on the investment done by the Company in mutual funds. The exposure to the interest rate for
the Company’s mutual fund and fixed deposit is considered immaterial.
The following table illustrates the sensitivity of profit and equity to a reasonably possible change in interest rates of
+/- 0.50% (2017-18: +/-0.50%). These changes are considered to be reasonably possible based on observation of current
market conditions. The calculations are based on a change in the average market interest rate for each period, and the
financial instruments held at each reporting date that are sensitive to changes in interest rates. All other variables are
held constant.
(Rs. in Crores)
Particulars Profit for the year Equity
0.50% 0.50% 0.50% 0.50%
31 March 2019 9.24 (9.24) 6.01 (6.01)
31 March 2018 7.05 (7.05) 4.61 (4.61)
48 Capital management
For the purpose of Company’s capital management, capital includes issued equity capital. The Company manages its
capital structure and makes adjustments in light of changes in economic condition and the requirements of the financial
covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.
The Company includes within net debt, interest bearing borrowings, less cash and cash equivalents.
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Indraprastha Gas Limited | 20th Annual Report 2018-19
Estimated amount of contracts remaining to be executed on capital account and not provided for is as under:
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Property, plant and equipment 1,469.80 366.21
1,469.80 366.21
The Company has entered into long-term agreements for purchase of natural gas upto maximum quantity of 0.58 million
standard cubic meters (SCM)/ day (Rs. 1.78 crores per day based on average rates prevailing on March 2019) till 2028 with
different suppliers. These agreements have ‘take or pay’ clause which shall be applicable in case gas off take is less than
the contractual quantity as defined in the agreement and the same can be adjusted against make up quantity to be taken
in the subsequent years. As at the balance sheet date, the management does not foresee any liability on account of the
said obligation.
The Company does not have any outstanding dilutive potential equity shares. Consequently, the basic and diluted earnings per
share of the Company remain the same.
125
Standalone Summary of Significant Accounting Policies
and Other Explanatory Information for the Year Ended 31 March 2019
51 The Company has adopted Ind AS 115 “Revenue from Contracts with Customers” from 01 April 2018 which
resulted in changes in accounting policies and adjustments to the amounts recognised in the financial statements.
In accordance with the transition provisions in Ind AS 115, the Company has adopted full retrospective approach.
Pursuant to change in accounting policy, revenue from operations have been disclosed net of facility charges. Such
expenses were earlier grouped under ‘other expenses’ in accordance with the requirements of Ind AS 18 upto 31 March
2018. However, there is no impact on the retained earnings as at 01 April 2017 and for the profit for the year ended 31
March 2018
The impact of the change in accounting policy on the comparative figures has been given as below:
(Rs. in Crores)
Statement of profit and loss (extract) for the year Pre-adoption Increase / Post-adoption
ended 31 March 2019 of Ind As 115 (decrease) of Ind As 115
Revenue from operations 6,434.96 (73.09) 6,361.87
Total income 6,434.96 (73.09) 6,361.87
Expenses
Other expenses 1,041.08 (73.09) 967.99
Total expenses 1,041.08 (73.09) 967.99
(Rs. in Crores)
Statement of profit and loss (extract) for the year As orginally Increase / Restated
ended 31 March 2018 presented (decrease)
Revenue from operations 5,073.65 (58.75) 5,014.90
Total income 5,073.65 (58.75) 5,014.90
Expenses
Other expenses 881.34 (58.75) 822.59
Total expenses 881.34 (58.75) 822.59
There is no impact on the Earning per share (EPS) as result on the adoption of aforementioned adjustment of Ind AS 115.
Contract balances
The following table provides information about receivables, contract assets and contract liabilities from contract with
customers:
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Contract assets
Unbilled revenue 32.94 21.43
Total contract assets 32.94 21.43
Contract liabilities
Excess payments received from customers 23.72 16.57
Advance from customers 6.31 3.79
Total contract liabilities 30.03 20.36
Receivables
Trade receivables 221.48 226.14
Net receivables 221.48 226.14
Contract asset is the right to consideration in exchange for goods or services transferred to the customer. Contract liability
is the entity’s obligation to transfer goods or services to a customer for which the entity has received consideration from
the customer in advance. Contract assets (unbilled receivables) are transferred to receivables when the rights become
unconditional and contract liabilities are recognised as and when the performance obligation is satisfied.
126
Indraprastha Gas Limited | 20th Annual Report 2018-19
There has been no significant changes in Contract assets during the year
(Rs. in Crores)
Particulars As at 31 March 2019 As at 31 March 2018
Contract liabilities Contract liabilities
Excess payments Advance Excess payments Advance from
received from from received from customers
customers customers customers
Opening balance 16.57 3.79 15.19 -
Add: Addition during the year 16.11 6.31 8.12 3.79
Less: Revenue recognised during the 8.96 3.79 6.74 -
year from opening liability
Closing balance 23.72 6.31 16.57 3.79
52 The Company is primarily engaged in the business of providing natural gas. Hence, as per the chief operating decision
maker the sale of natural gas has been considered as a single operating segment per Ind AS 108 ‘Operating Segment’ and
accordingly disclosures have been limited to single operating segment.
53 In the previous year, the Company had finalized negotiations with the Oil Marketing Companies (OMCs) for the trade
margin and facility charges pertaining to Delhi (from 1 April 2015 to 31 March 2018) and Uttar Pradesh (from 1 April 2015
to 31 March 2019) and accordingly, an amount of Rs. 15.92 crores and Rs. 0.30 crores pertaining to previous years had
been written back from the respective heads. Further, during the current year ended 31 March 2019, in the absence of
the agreement effective 1 April 2018 for the Delhi region, an additional amount of Rs. 4.90 crores has been provided in
the books of account towards estimated revision in trade margin and facility charges payable to the OMCs.
54
Post reporting date events
No adjusting or significant non-adjusting events have occurred between 31 March 2019 and the date of authorisation of
the Company’s standalone financial statements. However, the Board of Directors have recommended a final dividend of
120% i.e. Rs. 2.40 (previous year Rs. 2.00) on equity shares of Rs. 2 (previous year Rs. 2) each for the year ended 31 March
2019, subject to approval of shareholders at the ensuing annual general meeting.
55 The standalone financial statements for the year ended 31 March 2019 were approved by the Board of Directors on 24
May 2019.
Significant accounting policies and other explanatory information forming part of the standalone financial statements (1-55)
In terms of our report attached
For Walker Chandiok & Co LLP For and on behalf of board of directors
Chartered Accountants
Firm’s Registration No. 001076N/N500013
Sd/- Sd/-
Place: New Delhi Rakesh Chawla S.K. Jain
Date: 24 May 2019 Chief Financial Officer Company Secretary
127
Comments of the Comptroller and Auditor General of
India Under Section 143(6)(b) of the Companies Act, 2013
on the Financial Statements of Indraprastha Gas Limited
for the year ended 31 March 2019.
The preparation of financial statements of Indraprastha Gas Limited for the year ended 31 March 2019 in accordance with the
financial reporting framework prescribed under the Companies Act, 2013 (Act) is the responsibility of the management of the
company. The statutory auditors appointed by the Comptroller and Auditor General of India under section 139(5) of the Act
is responsible for expressing opinion on the financial statements under section 143 of the Act based on independent audit in
accordance with the standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done by
them vide their Audit Report dated 24 May 2019.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the financial statements
of Indraprastha Gas Limited for the year ended 31 March 2019 under section 143(6)(a) of the Act. This supplementary audit
has been carried out independently without access to the working papers of the statutory auditors and is limited primarily to
inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records.
On the basis of my audit nothing significant has come to my knowledge which would give rise to any comment upon or
supplement to statutory auditors' report under section 143(6)(b) of the Act.
Sd/-
(Prachi Pandey)
Principal Director of Commercial Audit
Place: New Delhi & Ex-officio Member, Audit Board-ll,
Delhi:14.8.2019 New Delhi.
128
Indraprastha Gas Limited | 20th Annual Report 2018-19
Independent
Auditor’s Report
To
The Members of
Indraprastha Gas Limited
129
5. We have determined the matter described below to be the key audit matter to be communicated in our report.
Key audit matter How our audit addressed the key audit matter
Demand raised by Delhi Development Authority (‘DDA’)
Our audit procedures in relation to the aforesaid matter
Refer note 3.21 for the accounting policy and note 36(1)(c) for included, but were not limited to the following:
the related disclosure.
• Evaluated the design of, and tested key controls in
As explained in the note 36(1)(c) to the accompanying respect of litigations and contingent liabilities;
consolidated financial statements; the Company had received
a demand from DDA amounting to Rs. 155.64 crores during • Obtained the Company’s evaluation of the said matter
financial year 2013-14 pertaining to the period 1 April 2007 to supported by the external legal opinion obtained by the
31 March 2014 on account of increase in license fees in respect management in the year ended 31 March 2019;
of sites taken on lease by the Company from DDA for setting up
Compressed Natural Gas (CNG) stations in Delhi. The Company • Discussed the said matter with the in-house legal general
had filed a writ petition on 11 October 2013 before the Hon’ble counsel of the Company;
High Court of Delhi against the aforesaid demand raised by DDA
• Conducted in-depth inquiries with the management of
which is currently pending. Further, DDA vide communication
the Company and robust discussions with the Board, to
dated 29 August 2016 had revised the total demand to Rs.
obtain their view on the status of the aforesaid matter;
330.73 crores for the period upto 31 March 2016.
• Circulated and obtained confirmation from the legal
The management of the Company, based on legal opinion
counsel representing the Company as at year end; and
obtained by them, have assessed the same as contingent and
accordingly not provided for the demand raised by DDA in • Assessed the appropriateness and adequacy of the
these consolidated financial statements. related disclosures in the consolidated financial
statements in accordance with the applicable accounting
We identified this as key audit matter for current year audit
standards.
owing to the materiality of the amounts involved in this
matter and inherent subjectivity and uncertainty involved in
determination of the amount, if any, to be provided as liability
in accordance with the applicable accounting standards.
Information other than the Consolidated When we read the Annual Report, if we conclude
Financial Statements and Auditor’s Report that there is a material misstatement therein, we are
thereon required to communicate the matter to those charged
with governance.
6. The Company’s Board of Directors is responsible for the
other information. The other information comprises Responsibilities of Management and Those
the information included in the Annual Report, but Charged with Governance for the Consolidated
does not include the consolidated financial statements Financial Statements
and our auditor’s report thereon. The Annual Report is
7. The Company’s Board of Directors is responsible for
expected to be made available to us after the date of
the matters stated in section 134(5) of the Act with
this auditor’s report.
respect to the preparation of these consolidated
Our opinion on the consolidated financial statements financial statements that give a true and fair view of
does not cover the other information and we will not the consolidated state of affairs (consolidated financial
express any form of assurance conclusion thereon. position), consolidated profit or loss (consolidated
financial performance including other comprehensive
In connection with our audit of the consolidated financial income), consolidated changes in equity and
statements, our responsibility is to read the other consolidated cash flows of the Company including its
information identified above when it becomes available associates in accordance with the accounting principles
and, in doing so, consider whether the other information generally accepted in India, including the Ind AS
is materially inconsistent with the consolidated financial specified under section 133 of the Act. The respective
statements or our knowledge obtained in the audit or Board of Directors of the Company and its associates are
otherwise appears to be materially misstated. responsible for maintenance of adequate accounting
130
Indraprastha Gas Limited | 20th Annual Report 2018-19
records in accordance with the provisions of the Act The risk of not detecting a material misstatement
for safeguarding of the assets of the Company and for resulting from fraud is higher than for one resulting
preventing and detecting frauds and other irregularities; from error, as fraud may involve collusion, forgery,
selection and application of appropriate accounting intentional omissions, misrepresentations, or the
policies; making judgments and estimates that are override of internal control.
reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, • Obtain an understanding of internal control relevant
that were operating effectively for ensuring the accuracy to the audit in order to design audit procedures
and completeness of the accounting records, relevant that are appropriate in the circumstances. Under
to the preparation and presentation of the consolidated section 143(3)(i) of the Act, we are also responsible
financial statements that give a true and fair view and for expressing our opinion on whether the
are free from material misstatement, whether due to Company and its associates have adequate internal
fraud or error, which have been used for the purpose of financial controls system in place and the operating
preparation of the consolidated financial statements by effectiveness of such controls.
the Directors of the Company, as aforesaid.
• Evaluate the appropriateness of accounting
8. In preparing the consolidated financial statements, the policies used and the reasonableness of
respective Board of Directors of the Company and of accounting estimates and related disclosures
its associates are responsible for assessing the ability made by management.
of the Company and of its associates to continue as a
• Conclude on the appropriateness of management’s
going concern, disclosing, as applicable, matters related
use of the going concern basis of accounting and,
to going concern and using the going concern basis of
based on the audit evidence obtained, whether
accounting unless the Board of Directors either intends
a material uncertainty exists related to events
to liquidate the Company or to cease operations, or has
or conditions that may cast significant doubt on
no realistic alternative but to do so.
the ability of the Company and its associates to
9. Those Board of Directors are also responsible for continue as a going concern. If we conclude that
overseeing the financial reporting process of the a material uncertainty exists, we are required
Company and of its associates. to draw attention in our auditor’s report to the
related disclosures in the consolidated financial
Auditor’s Responsibilities for the Audit of the statements or, if such disclosures are inadequate,
Consolidated Financial Statements to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date
10. Our objectives are to obtain reasonable assurance of our auditor’s report. However, future events
about whether the consolidated financial statements as or conditions may cause the Company and its
a whole are free from material misstatement, whether associates to cease to continue as a going concern.
due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is • Evaluate the overall presentation, structure and
a high level of assurance, but is not a guarantee that content of the consolidated financial statements,
an audit conducted in accordance with Standards on including the disclosures, and whether the
Auditing will always detect a material misstatement consolidated financial statements represent the
when it exists. Misstatements can arise from fraud or underlying transactions and events in a manner
error and are considered material if, individually or in that achieves fair presentation.
the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the 12. We communicate with those charged with governance
basis of these consolidated financial statements. regarding, among other matters, the planned scope
and timing of the audit and significant audit findings,
11. As part of an audit in accordance with Standards on including any significant deficiencies in internal control
Auditing, we exercise professional judgment and maintain that we identify during our audit.
professional skepticism throughout the audit. We also:
13. We also provide those charged with governance with
• Identify and assess the risks of material a statement that we have complied with relevant
misstatement of the consolidated financial ethical requirements regarding independence, and to
statements, whether due to fraud or error, design communicate with them all relationships and other
and perform audit procedures responsive to those matters that may reasonably be thought to bear on
risks, and obtain audit evidence that is sufficient our independence, and where applicable, related
and appropriate to provide a basis for our opinion. safeguards.
131
14. From the matters communicated with those charged Our opinion above on the consolidated financial
with governance, we determine those matters that were statements, and our report on other legal and
of most significance in the audit of the consolidated regulatory requirements below, are not modified
financial statements of the current period and are in respect of the above matter with respect to our
therefore the key audit matters. We describe these reliance on the financial statements certified by the
matters in our auditor’s report unless law or regulation management.
precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that Report on Other Legal and Regulatory
a matter should not be communicated in our report Requirements
because the adverse consequences of doing so would
17. As required by section 197(16) of the Act, based on
reasonably be expected to outweigh the public interest
our audit and on the consideration of the report of
benefits of such communication.
the other auditor, referred to in paragraph 15, on
Other Matters separate financial statements of the associate, we
report that the Company and one associate company
15. The consolidated financial statements also include paid remuneration to their respective directors during
the Company’s share of net profit (including other the year in accordance with the provisions of and limits
comprehensive income) of Rs. 26.07 crores for the laid down under section 197 read with Schedule V to
year ended 31 March 2019, as considered in the the Act. Further, as stated in paragraph 16, financial
consolidated financial statements, in respect of one statements of one associate company are unaudited
associate, whose financial statements have not been and have been furnished to us by the management,
audited by us. These financial statements have been and as certified by the management, such company has
audited by other auditor whose report has been paid remuneration to their respective directors during
furnished to us by the management and our opinion the year in accordance with the provisions of and limits
on the consolidated financial statements, in so far as laid down under section 197 read with Schedule V to
it relates to the amounts and disclosures included in the Act.
respect of this associate, and our report in terms of
sub-section (3) of Section 143 of the Act, in so far as it 18. As required by Section 143 (3) of the Act, based on our
relates to the aforesaid associate, is based solely on the audit and on the consideration of the report of the
report of the other auditor. other auditor on separate financial statements and
other financial information of the associate, we report,
Our opinion above on the consolidated financial to the extent applicable, that:
statements, and our report on other legal and regulatory
requirements below, are not modified in respect of the a) we have sought and obtained all the information
above matter with respect to our reliance on the work and explanations which to the best of our
done by and the report of the other auditor. knowledge and belief were necessary for the
purpose of our audit of the aforesaid consolidated
16. The consolidated financial statements also include financial statements;
the Company’s share of net profit (including other
comprehensive income) of Rs. 60.90 crores for the year b) In our opinion, proper books of account as required
ended 31 March 2019, as considered in the consolidated by law relating to preparation of the aforesaid
financial statements, in respect of one associate, consolidated financial statements have been kept
whose financial statements have not been audited by so far as it appears from our examination of those
us. These financial statements are unaudited and have books and the reports of the other auditor;
been furnished to us by the management and our
c) the consolidated financial statements dealt with
opinion on the consolidated financial statements, and
by this report are in agreement with the relevant
matter identified and disclosed under key audit matter
books of account maintained for the purpose
section above and our report in terms of sub-section
of preparation of the consolidated financial
(3) of Section 143 of the Act in so far as it relates to the
statements;
aforesaid associate, is based solely on such unaudited
financial statements. In our opinion and according d) in our opinion, the aforesaid consolidated financial
to the information and explanations given to us by statements comply with Ind AS specified under
the management, these financial statements are not section 133 of the Act;
material to the Company.
132
Indraprastha Gas Limited | 20th Annual Report 2018-19
e) Ms. Varsha Joshi, the director of the Company i. The consolidated financial statements
as on 31 March 2019, has not provided a written disclose the impact of pending litigations
representation as to whether any company in on the consolidated financial position of the
which she is a director as on 31 March 2019 Company and its associate as detailed in Note
had not defaulted in terms of sub-section (2) 36(1) to the consolidated financial statements;
of the section 164 of the Act. In the absence of
this representation, we are unable to comment ii. The Company and its associate did not have
whether she is disqualified from being appointed any long-term contracts including derivative
as a director under sub-section (2) of section 164 contracts for which there were any material
of the Act. However, she has vacated office as a foreseeable losses as at 31 March 2019;
director of the Company with effect from 23 May
iii. There has been no delay in transferring
2019. As far as other directors are concerned, on
amounts, required to be transferred, to the
the basis of the written representations received
Investor Education and Protection Fund by
from such directors and taken on record by
the Company and its associate company
the Board of Directors of the Company and
during the year ended 31 March 2019; and
the report of the other statutory auditor of its
associate company, we report that none of the iv. The disclosure requirements relating to
other directors of the Company and its associate holdings as well as dealings in specified bank
company, are disqualified as on 31 March 2019 notes were applicable for the period from
from being appointed as a director in terms of 8 November 2016 to 30 December 2016,
Section 164(2) of the Act. which are not relevant to these consolidated
financial statements. Hence, reporting under
f) With respect to the adequacy of the internal
this clause is not applicable.
financial controls over financial reporting of the
Company and one of its associate company and
the operating effectiveness of such controls, refer
to our separate report in Annexure A; and
133
Annexure A to the Independent Auditor’s Report
of even date to the members of IGL to the
Consolidated Financial Statement for the year
ended 31 March 2019
Annexure A we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance
Independent Auditor’s report on the Internal about whether adequate IFCoFR were established and
Financial Controls under Clause (i) of Sub-section maintained and if such controls operated effectively in
3 of Section 143 of the Companies Act, 2013 (the all material respects.
‘Act’)
4. Our audit involves performing procedures to obtain
1. In conjunction with our audit of the consolidated audit evidence about the adequacy of the IFCoFR and
financial statements of Indraprastha Gas Limited (the their operating effectiveness. Our audit of IFCoFR
‘Company’) and one of its associates, as at and for includes obtaining an understanding of IFCoFR,
the year ended 31 March 2019, we have audited the assessing the risk that a material weakness exists,
internal financial controls over financial reporting and testing and evaluating the design and operating
(‘IFCoFR’) of the Company and its associate company, effectiveness of internal control based on the assessed
as at that date. risk. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of
Management’s Responsibility for Internal
material misstatement of the financial statements,
Financial Controls
whether due to fraud or error.
2. The respective Board of Directors of the Company and
5. We believe that the audit evidence we have obtained and
its associate company, are responsible for establishing
the audit evidence obtained by the other auditor in terms
and maintaining internal financial controls based on
of their report referred to in the Other Matter paragraph
the internal control over financial reporting criteria
below, is sufficient and appropriate to provide a basis for
established by the Company and its associate company
our audit opinion on the IFCoFR of the Company and one
considering the essential components of internal
of its associate company, as aforesaid.
control stated in the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting (the Meaning of Internal Financial Controls over
‘Guidance Note’) issued by the Institute of Chartered Financial Reporting
Accountants of India (‘ICAI’). These responsibilities
include the design, implementation and maintenance of 6. A company’s IFCoFR is a process designed to provide
adequate internal financial controls that were operating reasonable assurance regarding the reliability of
effectively for ensuring the orderly and efficient conduct financial reporting and the preparation of financial
of the company’s business, including adherence to the statements for external purposes in accordance with
company’s policies, the safeguarding of the company’s generally accepted accounting principles. A company’s
assets, the prevention and detection of frauds and IFCoFR includes those policies and procedures that
errors, the accuracy and completeness of the accounting (1) pertain to the maintenance of records that, in
records and the timely preparation of reliable financial reasonable detail, accurately and fairly reflect the
information, as required under the Act. transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that
Auditor’s Responsibility transactions are recorded as necessary to permit
preparation of financial statements in accordance
3. Our responsibility is to express an opinion on the
with generally accepted accounting principles, and
IFCoFR of the Company and its associate company as
that receipts and expenditures of the company are
aforesaid, based on our audit. We conducted our audit
being made only in accordance with authorisations of
in accordance with the Standards on Auditing, issued
management and directors of the company; and (3)
by the ICAI and deemed to be prescribed under section
provide reasonable assurance regarding prevention
143(10) of the Act, to the extent applicable to an audit
or timely detection of unauthorised acquisition, use, or
of IFCoFR and the Guidance Note issued by the ICAI.
disposition of the company’s assets that could have a
Those Standards and the Guidance Note require that
material effect on the financial statements.
134
Indraprastha Gas Limited | 20th Annual Report 2018-19
135
Consolidated
Balance Sheet As at 31 March 2019
(Rs. in Crores)
Particulars Note As at As at
31 March 2019 31 March 2018
A Assets
1 Non-current assets
a) Property, plant and equipment 4 2,855.30 2,415.55
b) Capital work-in-progress 4 478.08 386.02
c) Other intangible assets 4 21.55 16.48
d) Investments accounted for using the equity method 5 492.07 426.43
e) Financial assets
(i) Loans 6 11.47 8.37
(ii) Other financial assets 7 0.34 0.30
e) Income-tax assets (net) 8 15.03 15.03
f) Other non-current assets 9 67.08 45.70
Total non-current assets 3,940.92 3,313.88
2 Current assets
a) Inventories 10 50.94 52.37
b) Financial assets
(i) Investments 11 1,285.87 889.57
(ii) Trade receivables 12 221.48 226.14
(iii) Cash and cash equivalents 13 71.16 203.68
(iv) Bank balances other than (iii) above 14 535.93 354.35
(v) Loans 15 3.78 6.48
(vi) Other financial assets 16 44.40 27.77
c) Other current assets 17 28.81 22.23
Total current assets 2,242.37 1,782.59
Total assets 6,183.29 5,096.47
2 Liabilities
Non-current liabilities
a) Financial liabilities
(I) Other financial liabilities (other than those specified in item (b)) 20 0.41 -
b) Provisions 21 19.55 12.83
c) Deferred tax liabilities (net) 22 315.93 259.57
d) Other non-current liabilities 23 0.97 0.81
Total non-current liabilities 336.86 273.21
Current liabilities
a) Financial liabilities
(i) Trade payables 24
(A) total outstanding dues of micro enterprises and small enterprises; and 41.11 19.14
(B) total outstanding dues of creditors other than micro enterprises and 447.37 319.44
small enterprises
(ii) Other financial liabilities [other than those specified in item (c)] 25 977.76 797.70
b) Other current liabilities 26 61.66 39.12
c) Provisions 27 1.03 0.91
d) Current tax liabilities (net) 28 1.79 -
Total current liabilities 1,530.72 1,176.31
Total liabilities 1,867.58 1,449.52
Total equity and liabilities 6,183.29 5,096.47
Significant accounting policies and other explanatory information forming part of the consolidated financial statements (1-55)
In terms of our report attached
For Walker Chandiok & Co LLP For and on behalf of Board of Directors
Chartered Accountants
Firm’s Registration No. 001076N/N500013
Sd/- Sd/-
Place: New Delhi Rakesh Chawla S.K. Jain
Date: 24 May 2019 Chief Financial Officer Company Secretary
136
Indraprastha Gas Limited | 20th Annual Report 2018-19
Consolidated Statement of
Profit and Loss for the year ended 31 March 2019
(Rs. in Crores)
Particulars Note Year ended Year ended
31 March 2019 31 March 2018
1 Revenue from operations 29 6,361.87 5,014.90
2 Other income 30 128.45 90.56
3 Total income (1 + 2) 6,490.32 5,105.46
4 Expenses:
(a) Purchases of stock-in-trade of natural gas 31 3,397.89 2,491.81
(b) Changes in inventories of stock-in-trade of natural gas 32 (0.57) (0.40)
(c) Excise duty 597.03 479.43
(d) Employee benefits expense 33 142.55 106.05
(e) Finance costs 34 2.05 1.69
(f) Depreciation and amortisation expenses 4 201.07 181.29
(g) Other expenses 35 967.99 821.54
Total expenses (4) 5,308.01 4,081.41
5 Profit before tax and share of profit of associates (3 - 4) 1,182.31 1,024.05
6 Share of profit of associates 86.96 71.89
7 Profit before tax (5+6) 1,269.27 1,095.94
8 Tax expense: 44
(a) Current tax 370.31 316.94
(b) Deferred tax 56.86 57.28
Total tax expenses 427.17 374.22
9 Profit for the year (7 - 8) 842.10 721.72
10 Other comprehensive income
(a) Items that will not be reclassified to profit or loss
(i) Re-measurement of post employment benefit obligations (1.44) (0.27)
(ii) Share of other comprehensive income of associates 0.01 (0.15)
(iii) Income-tax relating to re-measurement of post employment 0.50 0.09
benefit obligations
(iv) Income-tax relating to share of other comprehensive income of - 0.05
associates
Other comprehensive income for the year, net of tax (0.93) (0.28)
11 Total comprehensive income for the year (9+10) (comprising 841.17 721.44
profit and other comprehensive income for the year)
12 Earnings per equity share: (face value of Rs. 2 per share) 50
Basic and diluted (in Rs.) 12.03 10.31
Significant accounting policies and other explanatory information forming part of the consolidated financial statements (1-55)
In terms of our report attached
For Walker Chandiok & Co LLP For and on behalf of Board of Directors
Chartered Accountants
Firm’s Registration No. 001076N/N500013
Sd/- Sd/-
Place: New Delhi Rakesh Chawla S.K. Jain
Date: 24 May 2019 Chief Financial Officer Company Secretary
137
Consolidated Statement of
Changes in Equity for the year ended 31 March 2019
A) Equity share capital
*The shareholders of the Company in their annual general meeting held on 28 September 2017 approved sub-division of each equity share having a face
value of Rs. 10 into five equity shares having a face value of Rs. 2 each. Consequently, the total number of equity shares of the Company increased to
70,00,00,800 shares of Rs. 2 each.
B) Other equity
(Rs. in Crores)
Reserves and surplus
Particulars Note General Retained Total
reserve earnings
Balance as at 1 April 2017 19 303.50 2,568.19 2,871.69
Dividends paid (including dividend distribution tax) - (84.25) (84.25)
Transactions with owners in their capacity as owners - (84.25) (84.25)
Profit for the year - 721.72 721.72
Other comprehensive income
Re-measurement of post employment benefit - (0.28) (0.28)
obligations (net of tax)
Corporate dividend tax of associates (1.93) (1.93)
Balance as at 31 March 2018 19 303.50 3,203.45 3,506.95
Dividends paid (including dividend distribution tax) - (168.78) (168.78)
Transactions with owners in their capacity as owners - (168.78) (168.78)
Profit for the year - 842.10 842.10
Other comprehensive income
Re-measurement of post employment benefit - (0.93) (0.93)
obligations (net of tax)
Corporate dividend tax of associates (3.63) (3.63)
Balance as at 31 March 2019 19 303.50 3,872.21 4,175.71
Significant accounting policies and other explanatory information forming part of the consolidated financial statements (1-55)
In terms of our report attached
For Walker Chandiok & Co LLP For and on behalf of Board of Directors
Chartered Accountants
Firm’s Registration No. 001076N/N500013
Sd/- Sd/-
Place: New Delhi Rakesh Chawla S.K. Jain
Date: 24 May 2019 Chief Financial Officer Company Secretary
138
Indraprastha Gas Limited | 20th Annual Report 2018-19
Consolidated
Cash Flow Statement for the year ended 31 March 2019
(Rs. in Crores)
Particulars Year ended Year ended
31 March 2019 31 March 2018
A. Cash flow from operating activities:
Profit before tax 1,269.27 1,095.94
Adjustments for:
- Depreciation and amortisation expense 201.07 181.29
- Unrealised foreign exchange (gain) (0.10) (0.07)
- Loss on property, plant and equipment sold or discarded (net) 2.04 9.61
- Allowances for expected credit losses 2.59 (0.08)
- Provision for obsolete and slow moving stores and spares (written back) (0.02) (1.15)
- Provision for obsolete and slow moving capital work-in-progress (0.33) 1.07
- Liabilities/provisions no longer required, written back (0.10) (0.21)
- Finance costs 0.98 0.11
- Interest income on term deposits with banks (36.39) (21.89)
- Income from investment in mutual funds (88.79) (65.75)
- Allowances for expected credit losses no longer required, written back (1.50) (1.50)
- Share of profit of associates (86.96) (71.89)
Operating profit before working capital changes 1,261.76 1,125.48
Changes in working capital:
Adjustments for (increase)/decrease
- Financial assets (10.45) (8.17)
- Other assets (15.29) (18.10)
- Inventories 1.45 0.50
- Trade receivables 2.07 (24.66)
Adjustments for increase/ (decrease)
- Other liabilities 22.70 9.68
- Other finnacial liabilities 108.56 67.61
- Trade payables 149.73 64.78
- Provisions 5.40 (7.54)
Cash generated from operations (gross) 1,525.93 1,209.58
Less: income-tax paid (net) (368.78) (330.25)
Net cash flow from operating activities (A) 1,157.15 879.33
B. Cash flow from investing activities:
- Payment for purchase of property, plant and equipment, other intangible (680.72) (469.88)
assets and capital work-in-progress including capital advances and
payable towards property plant and equipment
- Proceeds from sale of property, plant and equipment - 0.04
- (Investment) in bank deposits with maturity more than three months (2,183.64) (579.76)
- Maturity of bank deposits with maturity more than three months 2005.28 712.25
- Movement in restricted bank balance (3.22) (3.82)
- (Investment) in mutual funds (9,626.86) (6,304.12)
- Proceeds from sale of mutual funds 9,319.35 5,832.42
- Interest income on term deposits with banks 31.27 20.64
- Income received from investment in mutual funds - 65.75
- Dividend received from associates 17.70 9.49
Net cash flow used in investing activities (B) (1,120.84) (716.99)
139
Consolidated
Cash Flow Statement for the year ended 31 March 2019
(Rs. in Crores)
Particulars Year ended Year ended
31 March 2019 31 March 2018
C. Cash flow from financing activities:
- Dividend and dividend distribution tax paid (168.48) (84.23)
- Interest paid (0.35) -
Net cash flow used in financing activities (C) (168.83) (84.23)
Note: Disclosure requirement as per Ind AS 7 (amended), Statement of Cash Flow, related to changes in liabilities arising from financing activity is not
applicable to the Company.
Significant accounting policies and other explanatory information forming part of the consolidated financial statements (1-55)
In terms of our report attached
For Walker Chandiok & Co LLP For and on behalf of Board of Directors
Chartered Accountants
Firm’s Registration No. 001076N/N500013
Sd/- Sd/-
Place: New Delhi Rakesh Chawla S.K. Jain
Date: 24 May 2019 Chief Financial Officer Company Secretary
140
Indraprastha Gas Limited | 20th Annual Report 2018-19
141
Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
2.1.4 Amendment to Ind AS 109, Financial instruments 3.2 Overall considerations
On 30 March 2019, Ministry of Corporate Affairs These consolidated financial statements have been
(“MCA”) issued an amendment to Ind-AS 109 in prepared on going concern basis using the significant
respect of prepayment features with negative accounting policies and measurement bases
compensation, which amends the existing summarised below.
requirements in Ind-AS 109 regarding termination
rights in order to allow measurement at amortized These accounting policies have been used throughout
cost (or, depending on the business model, at all periods presented in the consolidated financial
fair value through other comprehensive income) statements.
even in the case of negative compensation
3.3 Basis of consolidation
payments. This amendment is effective
for annual periods beginning on or after The Company consolidates the standalone financial
1 April 2019. The Company is evaluating the statements of the Company with its associates as
requirements of the amendments and their impact mentioned below:
on the consolidated financial statements.
a) Central U.P. Gas Limited
2.1.5 Amendment to Ind AS 23, Borrowing costs
b) Maharashtra Natural Gas Limited
On 30 March 2019, Ministry of Corporate Affairs
(“MCA”) issued an amendment to Ind-AS 23 3.4 Investment in associates
“Borrowing Costs” clarifies that if any specific
Associates are all entities over which the Company has
borrowing remains outstanding after the related
significant influence but not control or joint control.
asset is ready for its intended use or sale, that
This is generally the case where the Company holds
borrowing becomes part of the funds that an
between 20% and 50% of the voting rights. Investments
entity borrows generally when calculating the
in associates are accounted for using the equity method
capitalization rate on general borrowings. This
of accounting, after initially being recognised at cost
amendment is effective for annual periods
beginning on or after 1 April 2019. The Company Under the equity method of accounting, the investments
is evaluating the requirements of the amendments are initially recognised at cost and adjusted thereafter
and their impact on the consolidated financial to recognise the Company’s share of the post-
statements. acquisition profits or losses of the investee in profit and
loss, and the Company’s share of other comprehensive
3 Significant accounting policies and other
income of the investee in other comprehensive income.
explanatory information
Dividends received or receivable from associates are
3.1 General information and statement of compliance recognised as a reduction in the carrying amount of the
with Indian Accounting Standards (Ind AS) investment.
These consolidated financial statements of the When the Company’s share of losses in an equity
Company have been prepared in accordance with accounted investment equals or exceeds its interest
Ind AS notified by the Companies (Indian Accounting in the entity, including any other unsecured long-term
Standards) Rules, 2015 and Companies (Indian receivables, the Company does not recognise further
Accounting Standards) Amendment Rules, 2016. losses, unless it has incurred obligations or made
payments on behalf of the other entity.
The consolidated financial statements of the Company
for the year ended 31 March 2019 were approved and Unrealised gains on transactions between the Company
authorised for issue by the Board of Directors on 24 and its associates are eliminated to the extent of the
May 2019 (refer note 55). Company’s interest in these entities. Unrealised losses
are also eliminated unless the transaction provides
evidence of an impairment of the asset transferred.
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Indraprastha Gas Limited | 20th Annual Report 2018-19
The carrying amount of equity accounted investments For each performance obligation identified,
are tested for impairment in accordance with the policy the Company determines at contract inception
described in note 3.20 below. whether it satisfies the performance obligation
over time or satisfies the performance obligation
3.5 Historical cost convention at a point in time. If an entity does not satisfy
a performance obligation over time, the
These consolidated financial statements have been
performance obligation is satisfied at a point
prepared on a historical cost convention except
in time. A receivable is recognized where the
where certain financial assets and liabilities have been
Company’s right to consideration is unconditional
measured at fair value.
(i.e. only the passage of time is required
3.6 Revenue recognition before payment of the consideration is due).
(i) Sale of natural gas When either party to a contract has performed,
an entity shall present the contract in the balance
Revenue from the contracts with customers is
sheet as a contract asset or a contract liability,
recognized when control of the goods or services
depending on the relationship between the entity’s
are transferred to the customer at an amount that
performance and the customer’s payment.
reflects the consideration to which the company
expects to be entitled in exchange for those goods (ii) Interest and dividend income
or services. Sales, as disclosed, are inclusive of
excise but are net of trade allowances, rebates, vat Interest income is reported on an accrual basis
and amounts collected on behalf of third parties. using the effective interest method. Dividends are
recognised at the time the right to receive payment
The Company earns revenues primarily from is established.
sale of natural gas. Revenue is recognized on
supply of gas to customers by metered/assessed 3.7 Inventories
measurements. The Company has concluded that
(i) Inventory of stock-in-trade of natural gas
it is the principal in all its revenue arrangements
since it is primary obligor in all the revenue Inventory of stock-in-trade of natural gas in
arrangements as it has pricing latitude and is also pipelines and cascades is valued at the lower of
exposed to credit risk. cost computed on First in First out (FIFO) basis
and net realisable value. The cost of inventories
The Company considers the terms of the contract
comprises of all costs of purchase and other costs
and its customary business practices to determine
incurred in bringing the inventory to its present
the transaction price. The transaction price is the
location and condition.
amount of consideration to which the Company
expects to be entitled in exchange for transferring (ii) Inventory of stores and spares
promised goods or services to a customer,
excluding amounts collected on behalf of third Stores and spares are valued at lower of cost
parties (for example, indirect taxes). No element of computed on weighted average basis and net
financing is deemed present as the credit term is realisable value.
not more than one year.
Net realisable value is the estimated selling price in
The transaction price is allocated by the Company the ordinary course of business less any applicable
to each performance obligation (or distinct good or selling expenses
service) in an amount that depicts the amount of
143
Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
3.8 Foreign currency transactions and translations Company as the lessee
i. Initial recognition A leased asset is depreciated over the useful life of the
asset. However, if there is no reasonable certainty that
The Company’s consolidated financial statements the Company will obtain ownership by the end of the
are presented in Indian Rupee (‘INR’), which is also lease term, the asset is depreciated over the shorter of
the Company’s functional currency. Transactions in the estimated useful life of the asset and the lease term
foreign currencies are recorded on initial recognition
in the functional currency at the exchange rates Lease arrangements where the risks and rewards
prevailing on the date of the transaction. incidental to ownership of an asset substantially vest
with the lessor are recognised as operating leases.
ii. Measurement at the balance sheet date Lease rentals under operating leases are recognised in
the statement of profit and loss on straight line basis
Foreign currency monetary items of the Company,
unless the payments are structured to increase in line
outstanding at the balance sheet date are restated
with expected general inflation to compensate for
at the year-end rates. Non-monetary items which
lessor’s expected inflationary cost increases.
are carried at historical cost denominated in a
foreign currency are reported using the exchange 3.10 Employee benefits
rate at the date of the transaction. Non-monetary
items measured at fair value in a foreign currency Employee benefits include provident fund, pension
are translated using the exchange rates at the date fund, gratuity and compensated absences.
when the fair value is determined.
Defined contribution plans
iii. Treatment of exchange difference
The Company’s contribution to provident fund and
Exchange differences that arise on settlement of pension fund is considered as defined contribution plan
monetary items or on reporting at each balance and is charged as an expense as they fall due based on
sheet date of the Company’s monetary items at the the amount of contribution required to be made and
closing rate are recognised as income or expenses when services are rendered by the employees. The
in the period in which they arise. Company has no legal or constructive obligation to pay
contribution in addition to its fixed contribution.
3.9 Leases
Defined benefit plans
The determination of whether an arrangement is,
or contains, a lease is based on the substance of the The liability or asset recognised in the balance sheet in
arrangement at the inception date, whether fulfillment respect of gratuity is the present value of the defined
of the arrangement is dependent on the use of a benefit obligation at the end of the reporting period
specific asset or assets or the arrangement conveys a less the fair value of plan assets. The defined benefit
right to use the asset, even if that right is not explicitly obligation is calculated annually by actuaries using the
specified in an arrangement. projected unit credit method. The present value of the
defined benefit obligation is determined by discounting
Company as the lessor the estimated future cash outflows by reference to
market yields at the end of the reporting period on
Finance leases that transfer substantially all of the risks
government bonds that have terms approximating to
and benefits incidental to ownership of the leased item,
the terms of the related obligation. The net interest
are capitalised at the commencement of the lease at
cost is calculated by applying the discount rate to
the fair value of the leased property or, if lower, at the
the net balance of the defined benefit obligation and
present value of the minimum lease payments. Lease
the fair value of plan assets. This cost is included in
payments are apportioned between finance charges
employee benefit expense in the statement of profit
and a reduction in the lease liability so as to achieve a
and loss. Remeasurement gains and losses arising
constant rate of interest on the remaining balance of
from experience adjustments and changes in actuarial
the liability. Finance charges are recognised in finance
assumptions are recognised in the period in which they
costs in the statement of profit and loss.
occur, directly in other comprehensive income. They
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Indraprastha Gas Limited | 20th Annual Report 2018-19
145
Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
other incidental expenses relating to acquisition (b) Other intangible assets
and installation.
Other intangible assets comprise of computer
iii. Gas distribution systems are commissioned when software/licenses. Such assets acquired by the
ready for commencement of supply of gas to Company are initially measured at cost. After
consumers. In the case of commissioned assets initial recognition, an intangible asset is carried
where final payment to the contractors is pending, at cost less any accumulated amortisation and
capitalisation is made on an estimated basis accumulated impairment loss. Subsequent
pending receipt of final bills from the contractors expenditure is capitalised only if it is probable
and subject to adjustment in cost and depreciation that the future economic benefits will flow to the
in the year of final settlement. Company.
iv. The carrying amount of assets, including those (c) Capital work-in-progress
assets that are not yet available for use, are
reviewed at each balance sheet date to determine Expenditure incurred during the period of
whether there is any indication of impairment. If construction, including all direct and indirect
any such indication exists, recoverable amount expenses, incidental and related to construction,
of asset is determined. An impairment loss is is carried forward and on completion, the costs
recognised in the statement of profit and loss are allocated to the respective property, plant and
whenever the carrying amount of an asset exceeds equipment. Capital work-in-progress also includes
its recoverable amount. An impairment loss is assets pending installation and not available for
reversed only to the extent that the carrying intended use.
amount of asset does not exceed the net book
3.15 Depreciation and amortisation
value that would have been determined if no
impairment loss had been recognised. Depreciation is charged on a pro-rata basis on the
straight line method (‘SLM’) at rates prescribed in
v. Stores and spares which meet the definition
Schedule II to the Companies Act, 2013 which are in line
of property, plant and equipment (whether
with their estimated useful life, except for the following
as component or otherwise) and satisfy the
assets where depreciation is charged on pro-rata basis
recognition criteria, are capitalised as property,
over the estimated useful life of the assets based on
plant and equipment. When significant parts of
technical advice taking into account the nature of the
property, plant and equipment are required to
asset, the estimated usage of the asset, the operating
be replaced at intervals, the Company recognised
conditions of the asset, past history of replacement,
the new part with its own estimated useful life
anticipated technological changes, manufacturers
and it is depreciated accordingly. Likewise, when
warranties and maintenance support etc.:
a major overhauling/ repair is performed, its cost
is recognised in the carrying amount of respective A Asset class Depreciation
assets if the recognition criteria are satisfied and Property, plant and equipment
depreciated over remaining useful life of asset or - Mother compressors, online 10 years
over the period of next overhauling due, whichever compressors and Booster
is earlier. All other repair and maintenance costs compressors
are recognised in the statement of profit and loss (forming part of plant and
as and when incurred. equipment)
- Pipeline (forming part of plant 25 years
and equipment)
- Signages (forming part of 10 years
buildings)
- Machinery spares 5 years
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Indraprastha Gas Limited | 20th Annual Report 2018-19
3.18 Earnings per share Provisions are recognised only when there is a present
obligation, as a result of past events, and when a reliable
Basic earnings per share are calculated by dividing
estimate of the amount of obligation can be made at the
the net profit or loss for the year attributable to
reporting date. These estimates are reviewed at each
equity shareholders by the weighted average number
reporting date and adjusted to reflect the current best
of equity shares outstanding during the year. The
estimates. Provisions are discounted to their present
weighted average number of equity shares outstanding
values, where the time value of money is material.
during the year is adjusted for events such as bonus
Contingent liability is disclosed for:
issue, bonus element in a rights issue, share split, and
reverse share split (consolidation of shares) that have • Possible obligations which will be confirmed only
changed the number of equity shares outstanding, by future events not wholly within the control of
without a corresponding change in resources. the Company or
147
Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
• Present obligations arising from past events where 3.24 Financial instruments
it is not probable that an outflow of resources will
be required to settle the obligation or a reliable I. Financial assets
estimate of the amount of the obligation cannot
a. Initial recognition and measurement
be made.
All financial assets are recognised initially at
Contingent assets are not recognised. However, when
fair value plus, in case of financial assets not
inflow of economic benefit is probable, related asset is
recorded at fair value through profit or loss,
disclosed.
transaction costs that are attributable to the
3.22 Segment reporting acquisition of the financial asset, which are
not at fair value through profit and loss, are
Operating segments are reported in a manner added to fair value on initial recognition.
consistent with the internal reporting provided to the Transaction costs of financial assets carried at
chief operating decision maker. The Company operates fair value through profit or loss are expensed
in a single segment of natural gas business and relevant in statement of profit and loss.
disclosure requirements as per Ind AS 108 “Operating
Segments” have been disclosed by the Company under b. Subsequent measurement
note no 52.
(i) Financial assets carried at amortised cost
3.23 Fair value measurement
A financial asset is subsequently measured at
The Company measures financial instruments such amortised cost if it is held within a business
as investments in mutual funds, at fair value at each model whose objective is to hold the asset
balance sheet date. in order to collect contractual cash flows and
the contractual terms of the financial asset
Fair value is the price that would be received to give rise on specified dates to cash flows that
sell an asset or paid to transfer a liability at the are solely payments of principal and interest
measurement date. on the principal amount outstanding.
All assets and liabilities for which fair value is measured (ii) Financial assets at fair value through other
or disclosed in the Consolidated financial statements are comprehensive income (FVTOCI)
categorised within the fair value hierarchy, described as
follows, based on the lowest level input that is significant A financial asset is subsequently measured
to the fair value measurement as a whole: at fair value through other comprehensive
income if it is held within a business model
• Level 1 — Quoted (unadjusted) market prices in whose objective is achieved by both collecting
active markets for identical assets or liabilities contractual cash flows and selling financial
assets and the contractual terms of the
• Level 2 — Valuation techniques for which the financial asset give rise on specified dates
lowest level input that is significant to the fair value to cash flows that are solely payments of
measurement is directly or indirectly observable principal and interest on the principal amount
outstanding.
• Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair value (iii) Financial assets at fair value through
measurement is unobservable. profit or loss (FVTPL)
For the purpose of fair value disclosures, the A financial asset which is not classified in any
Company has determined classes of assets and of the above categories are subsequently fair
liabilities on the basis of the nature, characteristics valued through the statement of profit and
and risks of the asset or liability and the level of the loss.
fair value hierarchy as explained above.
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Indraprastha Gas Limited | 20th Annual Report 2018-19
- The Company has transferred the right to In determining the fair value of its financial
receive cash flows from the financial assets or instruments, the Company uses a variety of
methods and assumptions that are based on
- Retains the contractual rights to receive the market conditions and risks existing at each
cash flows of the financial assets, but assumes reporting date. The methods used to determine
a contractual obligation to pay the cash flows fair value include discounted cash flow analysis,
to one or more recipients. available quoted market prices. All methods of
assessing fair value result in general approximation
Where the entity transfers the financial asset, of value, and such value may vary from actual
it evaluates the extent to which it retains realization on future date.
the risk and rewards of the ownership of
the financial assets. If the entity transfers IV. Offsetting of financial instruments
substantially all the risks and rewards of
ownership of the financial asset, the entity Financial assets and financial liabilities are offset
shall derecognise the financial asset and and the net amount is reported in the balance
recognise separately as assets or liabilities any sheet if there is a currently enforceable legal right
rights and obligations created or retained in to offset the recognised amounts and there is an
the transfer. If the entity retains substantially intention to settle on a net basis, to realise the
all the risks and rewards of ownership of the assets and settle the liabilities simultaneously.
financial asset, the entity shall continue to
3.25 Significant accounting judgements, estimates and
recognise the financial asset.
assumptions
Where the entity has neither transferred a
The preparation of the Company’s Consolidated
financial asset nor retains substantially all risks
financial statements requires management to make
and rewards of the ownership of the financial
judgments, estimates and assumptions that affect the
asset, the financial asset is derecognised if
reported amounts of revenues, expenses, assets and
the Company has not retained control of the
liabilities and the related disclosures and the disclosure
financial asset. Where the Company retains
of contingent liabilities. Uncertainty about these
control of the financial assets, the asset is
assumptions and estimates could result in outcomes
continued to be recognised to the extent of
that require a material adjustment to the carrying
continuing involvement in the financial asset.
amount of assets or liabilities affected in future periods.
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Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
Estimates and assumptions (iii)
Useful lives of depreciable/amortizable
assets
The key assumptions concerning the future and other
key sources of estimation uncertainty at the reporting Management reviews its estimate of the useful lives
date, that have a significant risk of causing a material of depreciable/amortizable assets at each reporting
adjustment to the carrying amounts of assets and date, based on the expected utility of the assets.
liabilities within the next financial year, are described Uncertainties in these estimates relate to technical
below. The Company based its assumptions and and economic obsolescence that may change the
estimates on parameters available when these financial utility of certain property, plant and equipment.
statements were prepared. Existing circumstances and
assumptions about future developments, however, (iv) Impairment of trade receivables
may change due to market changes or circumstances
Trade receivables do not carry any interest and
arising that are beyond the control of the Company.
are stated at their normal value as reduced by
Such changes are reflected in the assumptions as and
appropriate allowances for estimated irrecoverable
when they occur.
amounts. Individual trade receivables are written
(i) Estimation of defined benefit obligation off when management deems them not to be
collectible. Impairment is recognised based on the
The cost of the defined benefit plan and other expected credit losses, which are the present value
post-employment benefits and the present value of the cash shortfall over the expected life of the
of such obligation are determined using actuarial financial assets.
valuations. An actuarial valuation involves making
various assumptions that may differ from actual (v) Fair value measurement
developments in the future. These include the
Management applies valuation techniques to
determination of the discount rate, future salary
determine the fair value of financial instruments
increases, mortality rates and attrition rate. Due
(where active market quotes are not available)
to the complexities involved in the valuation and
and non-financial assets. This involves developing
its long-term nature, a defined benefit obligation is
estimates and assumptions consistent with how
highly sensitive to changes in these assumptions. All
market participants would price the instrument.
assumptions are reviewed at each reporting date.
Management bases its assumptions on observable
(ii) Estimation of current tax and deferred tax data as far as possible but this is not always
available. In that case management uses the best
Management judgment is required for the information available. Estimated fair values may
calculation of provision for income - taxes and vary from the actual prices that would be achieved
deferred tax assets and liabilities. The Company in an arm’s length transaction at the reporting date
reviews at each balance sheet date the carrying (refer note 46).
amount of deferred tax assets. The factors used in
estimates may differ from actual outcome which (vi) Evaluation of indicators for impairment of
could lead to adjustment to the amounts reported assets
in these financial statements.
The evaluation of applicability of indicators of
impairment of assets is based on assessment of
several external and internal factors which could
result in deterioration of recoverable amount of
the assets.
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Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
4 Property, plant and equipment, capital work-in-progress and other intangible assets
(Rs. in Crores)
Particulars Property, plant and equipment Other Capital work-
intangible in-progress
assets (refer note
Total
Freehold Land on Buildings Plant and Furniture Vehicles Data Computer 4.3 and 4.4)
land perpetual lease (refer equipment and processing software/
(refer note 4.1) note 4.2) fixtures equipment licenses
Gross block
Balance as at 1 April 2017 19.92 16.98 348.18 1,967.19 13.09 7.65 6.18 2,379.19 20.43 351.79
Additions 1.18 - 59.47 427.92 3.27 0.17 6.26 498.27 7.55 492.89
Disposals/ adjustments - - 10.04 5.06 0.77 0.09 0.90 16.86 - 458.66
Balance as at 31 March 2018 21.10 16.98 397.61 2,390.05 15.59 7.73 11.54 2,860.60 27.98 386.02
Additions 7.05 - 23.41 596.22 1.49 4.33 4.34 636.84 11.09 685.30
Disposals/ adjustments - - 1.67 15.53 0.09 0.01 0.80 18.10 - 593.24
Balance as at 31 March 2019 28.15 16.98 419.35 2,970.74 16.99 12.05 15.08 3,479.34 39.07 478.08
Accumulated depreciation and
amortisation
Balance as at 1 April 2017 - - 31.45 238.09 3.29 1.54 1.64 276.01 6.46 -
Depreciation and amortisation - - 18.16 152.92 1.64 1.02 2.51 176.25 5.04 -
charge for the year
Disposals - - 2.19 3.30 0.74 0.09 0.89 7.21 - -
Balance as at 31 March 2018 - - 47.42 387.71 4.19 2.47 3.26 445.05 11.50 -
Depreciation and amortisation - - 19.13 169.57 1.80 1.16 3.39 195.05 6.02 -
charge for the year
Disposals - - 1.63 13.64 - - 0.79 16.06 - -
Balance as at 31 March 2019 - - 64.92 543.64 5.99 3.63 5.86 624.04 17.52 -
Net block as at 31 March 2018 21.10 16.98 350.19 2,002.34 11.40 5.26 8.28 2,415.55 16.48 386.02
Net block as at 31 March 2019 28.15 16.98 354.43 2,427.10 11.00 8.42 9.22 2,855.30 21.55 478.08
Notes:
4.1 Gross block of land on perpetual lease includes land amounting to Rs. 16.98 crores (previous year: Rs. 16.98 crores) obtained on lease from local authorities under licensing arrangement and
pending execution of the related lease agreements.
4.2 Buildings include buildings which have been constructed on land acquired on lease from various Government Authorities. (refer note 38).
4.3 The expenditure incidental to setting up of project is included in capital work-in-progress (CWIP) which is apportioned to the property, plant and equipment on completion of project. The
Company has capitalised salary, wages and bonus amounting to Rs. 7.68 crores (previous year Rs. 6.28 crores) to the cost of property, plant and equipment /capital work-in-progress.
Indraprastha Gas Limited | 20th Annual Report 2018-19
4.4 Capital work-in-progress has been netted off by Rs. 1.57 crores towards provision for obsolete and slow moving capital work-in-progress (previous year Rs.1.90 crores).
151
Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
5 Non-current financial assets- investments
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Investments in equity instruments (measured at cost)
Trade (unquoted)
Investments in associates accounted for using equity method:
(a) Central U.P. Gas Limited (incorporated in India, operating in cities of Kanpur and
Bareilly)
Proportion of Company's ownership 50% 50%
3,00,00,000 (31 March 2018: 3,00,00,000) equity shares of Rs. 10 each fully paid 152.38 131.74
up in Central U.P. Gas Limited
(b) Maharashtra Natural Gas Limited (incorporated in India, operating in city of
Pune and adjoining areas)
Proportion of Company's ownership 50% 50%
5,00,00,000 (31 March 2018: 5,00,00,000) equity shares of Rs. 10 each fully paid 339.69 294.69
up in Maharashtra Natural Gas Limited
492.07 426.43
Aggregate amount of carrying value of unquoted investments 492.07 426.43
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Revenue 328.03 268.79
Profit 52.11 46.10
Other comprehensive income 0.01 (0.27)
Total comprehensive income 52.12 45.83
Company's share of profit 26.06 23.05
Company's share of other comprehensive income 0.01 (0.14)
Company's share of total comprehensive income 26.07 22.91
152
Indraprastha Gas Limited | 20th Annual Report 2018-19
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Revenue 902.32 660.64
Profit 121.81 97.69
Other comprehensive income - 0.07
Total comprehensive income 121.81 97.76
Company's share of profit 60.90 48.84
Company's share of other comprehensive income - 0.04
Company's share of total comprehensive income 60.90 48.88
153
Consolidated Summary of Significant Accounting Policies
154
and other Explanatory Information for the Year Ended 31 March 2019
5.3 Additional information to consolidated financial statements as at 31 March 2019 (pursuant to Schedule III to the Companies Act, 2013):
(Rs. in Crores)
Name of the Company Proportion Net Assets, i.e., total Share of profit/(loss) Share in other Share in total
of assets minus total comprehensive income comprehensive income
ownership liabilities
interest as Amount As a % of Amount As a % of Amount As a % of Amount As a % of
on consolidated consolidated consolidated consolidated
31 March net assets profit/ (loss) other total
2019 comprehensive comprehensive
income income
1 Indraprastha Gas Limited 4,315.71 100% 755.14 89.67% (0.94) 101.08% 754.20 89.66%
2 Associates (investment as
per equity method)
Indian
a) Central U.P Gas Limited 50% Equity method 26.06 3.09% 0.01 (1.08%) 26.07 3.10%
b) Maharashtra Natural Gas 50% Equity method 60.90 7.24% - 0.00% 60.90 7.24%
Limited
Total 842.10 100.00% (0.93) 100.00% 841.17 100.00%
Additional information to consolidated financial statements as at 31 March 2018 (pursuant to Schedule III to the Companies Act, 2013):
(Rs. in Crores)
Name of the Company Proportion Net Assets, i.e., total Share of profit/(loss) Share in other Share in total
of assets minus total comprehensive income comprehensive income
ownership liabilities
interest as Amount As a % of Amount As a % of Amount As a % of Amount As a % of
on consolidated consolidated consolidated consolidated
31 March net assets profit/ (loss) other total
2018 comprehensive comprehensive
income income
1 Indraprastha Gas Limited 3,646.95 100% 649.83 90.04% (0.18) 64.29% 649.65 90.05%
2 Associates (investment as
per equity method)
Indian
a) Central U.P Gas Limited 50% Equity method 23.05 3.19% (0.14) 48.87% 22.91 3.18%
b) Maharashtra Natural Gas 50% Equity method 48.84 6.77% 0.04 (13.16)% 48.88 6.77%
Limited
Total 721.72 100.00% (0.28) 100.00% 721.44 100.00%
Indraprastha Gas Limited | 20th Annual Report 2018-19
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Balance with banks in fixed deposits having remaning maturity of more than 12 0.30 0.30
months
(under lien against bank guarantee)
Others 0.04 -
0.34 0.30
155
Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
10 Inventories (valued at lower of cost and net realisable value)
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Stock-in-trade
Natural gas 3.71 3.14
Stores and spares 50.88 52.90
Less: Provision for obsolete and slow moving stores and spares (3.65) (3.67)
47.23 49.23
50.94 52.37
156
Indraprastha Gas Limited | 20th Annual Report 2018-19
12 Trade receivables
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Trade receivables
i. Trade receivables considered good - secured 83.66 79.51
ii. Trade receivables considered good - unsecured 137.82 146.63
iii Trade receivables - Credit Impaired 4.98 2.39
Less: Allowances for expected credit loss (4.98) (2.39)
221.48 226.14
The above receivables include:
Considered good - unsecured
Receivables from related parties (refer note 43) 18.51 19.41
All amounts are short-term. The net carrying value of trade receivables is considered a reasonable approximation of fair value.
157
Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
13 Cash and cash equivalents
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Balances with banks in current accounts 25.88 29.07
Cash on hand 11.89 5.01
Balances with banks in fixed deposits with original maturity of less than three months 33.39 169.60
71.16 203.68
There are no repatriation restrictions with regard to cash and cash equivalents as at the end of the reporting period and prior
periods.
Note:
a) Not due for deposit to the Investor Education and Protection Fund.
15 Loans - current
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Security deposits
i. Considered good - secured - -
ii. Considered good - unsecured (refer note 15.1 below) 3.78 6.48
iii. Deposits - credit impaired 1.50 3.00
Less : Allowances for expected credit losses (1.50) (3.00)
3.78 6.48
15.1 Security deposits, inter-alia comprise of deposits given to related parties as below :
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
(a) GAIL (India) Limited 0.10 0.10
(b) Bharat Petroleum Corporation Limited 0.01 0.01
0.11 0.11
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Indraprastha Gas Limited | 20th Annual Report 2018-19
The management assesses the fair value of these financial assets not to be materially different from the amounts recognised
in the consolidated financial statements.
(Rs. in Crores)
As at As at
31 March 2019 31 March 2018
(a) Bharat Petroleum Corporation Limited 0.05 -
0.05 -
159
Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
18.1 Terms and rights attached to equity shares:
The Company has one class of equity shares having a par value of Rs. 2 each (previous year Rs. 2 each). Each shareholder
is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive
the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
18.2 Reconciliation of the number of equity shares outstanding as at the beginning and at the end of
the year:
18.3 Details of shares held by each shareholder holding more than 5% shares:
18.4 The Company has not issued any shares pursuant to contract without payment being received in cash, or allotted as
fully paid up by way of bonus shares or bought back any shares during the period of five years immediately preceding
the date of balance sheet. Further, there are no shares which are reserved for issue under options and contracts or
commitments for the sale of shares or disinvestment.
18.5 During the current year, the Company paid dividend of Rs. 2 per equity share for financial year 2017-18 amounting to
Rs. 140 crores (excluding dividend distribution tax of Rs. 28.78 crores) [in the previous year, Rs. 5.00 per equity share for
financial year 2016-17 amounting to Rs. 70 crores (excluding dividend distribution tax of Rs. 14.25 crores].
160
Indraprastha Gas Limited | 20th Annual Report 2018-19
Nature of reserves
General reserve
Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified
percentage in accordance with Companies (Transfer of profits to Reserve) Rules,1975. Consequent to introduction of the
Companies Act 2013, there is no such requirement to mandatorily transfer a specified percentage of the net profit to general
reserve.
Retained earnings
Retained earnings are created from consolidated the profit / loss of the Company, as adjusted for distributions to owners,
transfers to other reserves, etc.
21 Non-current provisions
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Provision for employee benefit obligations (refer note 42) 19.55 12.83
19.55 12.83
161
Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
22 Deferred tax liabilities (net)
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
(a) Deferred tax liabilities on:
Difference between book balance and tax balance of property, plant and 275.98 234.03
equipment
Undistributed profit of associates 48.09 34.26
Financial assets at fair value through profit or loss 5.32 -
Others 0.03 -
329.42 268.29
(b) Deferred tax assets on:
Provision for employee benefit obligations 7.70 4.89
Provision for obsolete and slow moving stores and spares/ Capital work-in- 1.82 1.95
progress
Provision for expected credit loss on trade receivables and security deposits 2.26 1.88
Others 1.71 -
13.49 8.72
Deferred tax liabilities (net) 315.93 259.57
162
Indraprastha Gas Limited | 20th Annual Report 2018-19
27 Current- provisions
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Provision for employee benefit obligations (refer note 42) 1.03 0.91
1.03 0.91
163
Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
28 Current tax liabilities (net)
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Provision for tax (net of advance tax) 1.79 -
1.79 -
30 Other income
(Rs. in Crores)
Particulars Year ended Year ended
31 March 2019 31 March 2018
Interest income from banks 36.39 21.89
Dividend income from:
- investments in mutual funds - 4.27
Profit on sale of mutual funds 73.57 51.25
Net gain arising on debt mutual funds designated as at fair value through profit or loss 15.22 10.22
Liabilities/provisions no longer required, written back 0.10 0.21
Provision for obsolete and slow moving stores and spares, written back 0.02 1.15
Provision for obsolete and slow moving capital work-in-progress, written back 0.33 -
Allowances for expected credit losses no longer required, written back 1.50 1.50
Net gain on foreign currency transaction and translation 0.05 0.07
Other non-operating income 1.27 -
128.45 90.56
164
Indraprastha Gas Limited | 20th Annual Report 2018-19
34 Finance costs
(Rs. in Crores)
Particulars Year ended Year ended
31 March 2019 31 March 2018
Finance costs on defined benefit obligations 1.07 1.58
Interest on late deposit of advance tax 0.26 -
Other finance costs 0.72 0.11
2.05 1.69
35 Other expenses
(Rs. in Crores)
Particulars Year ended Year ended
31 March 2019 31 March 2018
Operating expenses at CNG stations 182.53 160.56
Stores and spares consumed 27.03 20.93
Power and fuel 209.58 173.69
Rent 105.17 92.49
Hire charges:
-Vehicle 25.23 22.75
-Equipment 1.57 0.86
Rates and taxes 2.33 1.82
Repairs and maintenance:
-Buildings 12.89 11.06
-Plant and equipment 227.22 192.27
Security expenses 49.44 44.44
Insurance 1.49 1.62
Cash/cheque collection charges 10.70 6.87
Legal and professional fees 18.34 13.22
Auditor's remuneration (refer note 35.1) 0.54 0.48
Travelling and conveyance 5.40 4.52
Office maintenance 6.84 5.75
Advertisement expenses 12.40 10.19
Loss on property, plant and equipment written off sold/ discarded 2.04 9.61
Allowances for expected credit losses 2.59 -
Provision for obsolete and slow moving capital work-in-progress - 1.07
Corporate social responsibility (CSR) activity expenses (refer note 40) 14.49 11.60
Miscellaneous expenses 50.17 35.74
967.99 821.54
165
Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
35.1 Payment to the statutory auditors as:
(Rs. in Crores)
36 Contingent liabilities
The Company had received a show cause notice dated 5 June 2012 from the Directorate General of Central Excise
Intelligence for not paying excise duty on the facility discount paid to Delhi Transport Corporation from December
2008 to August 2010 and raised a demand of Rs. 2.42 crores (previous year Rs. 2.42 crores) which the Company duly
deposited and, however, filed an appeal on 20 August 2013 with the Commissioner of Central Excise. The demand
was confirmed by the Commissioner of Excise in its order dated 30 September 2013 and a penalty of Rs. 2.42 crores
(excluding interest) was imposed on the Company. The Company filed an appeal on 10 January 2014 against the
demand including penalty with Central Excise and Service Tax Appellate Tribunal and the stay has been granted by
the tribunal against the demand. The case is remanded back to the assessing authority by Central Excise and Service
Tax Appellate Tribunal to submit additional documents along with other evidence.
In respect of assessment year 2013-14 and 2014-15, the assessing officer had disallowed additional depreciation
claimed by the Company on addition of assets pertaining to the CNG business. The department has raised a demand
of Rs. 2.51 crores and Rs. 2.01 crores for the assessment year 2013-14 and 2014-15 respectively including interest.
Out of the said demand, Rs. 4.01 crores has been adjusted against the refund for the assessment year 2014-15 and
demand order for the balance amount of Rs. 0.51 crores has been issued by the Department for assessment year
2013-14. The Company had filed an appeal with the Commissioner of Income-tax (Appeals) which was ruled in favour
of the revenue. The Company has further challenged the Order of the Commissioner of Income-tax (Appeals) in the
Income-tax Appellate Tribunal. The Company has also deposited under protest Rs. 0.20 crores against the demand
of Rs. 0.51 crores for the assessment year 2013-14.
In respect of assessment year 2011-12, 2012-13 and 2015-16, the assessing officer had disallowed additional
depreciation claimed by the Company on addition of assets pertaining to the CNG business. The department has
raised a demand of Rs. 8.23 crores, Rs. 10.68 crores and Rs. 1.09 crores for the assessment year 2011-12, 2012-13 and
2015-16 respectively. Out of the said demand, Rs. 1.65 crores and Rs. 2.14 crores has been deposited under protest
for the assessment year 2011-12 and 2012-13 respectively and Rs. 1.09 crores has been adjusted against the refund
of assessment year 2015-16. The Company had filed appeals with the Commissioner of Income Tax (Appeals) against
the decision of the Income-tax department which was ruled in favour of Company in the current year. Subsequently,
the Income- tax department has further filed an appeal against the order of Commissioner of Income-tax (Appeals) in
Income-tax Appellate Tribunal.
In the current year, the assessing officer had disallowed additional depreciation claimed by the Company in respect
of assessment year 2016-17, on addition of assets pertaining to the CNG business. The department has raised a
demand of Rs. 0.84 crores for the assessment year 2016-17 including interest. The Company has filed an appeal with
Commissioner of Income Tax (Appeals) against the assessment order passed by income-tax department for AY 2016-17.
The Company is of the view that such disallowance is not tenable and accordingly no provision has been made for
the said demands.
166
Indraprastha Gas Limited | 20th Annual Report 2018-19
Delhi Development Authority (DDA) has raised a total demand of Rs.155.64 crores during 2013-14 on account of
increase in license fees in respect of sites taken by the Company on lease from DDA for setting up compressed natural
gas (CNG) stations in Delhi. The increase in license fees was related to the period 1 April 2007 to 31 March 2014. The
Company has filed a writ petition on 11 October 2013 before the Hon’ble Delhi High Court against the demand raised
by DDA as the revised license fees has been increased manifold and made applicable retrospectively from financial
year 2007-08. Further, DDA vide communication dated 29 August 2016 has revised the total demand to Rs. 330.73
crores for the period upto 31 March 2016. The same was also reported in the previous year(s) as a contingent liability.
The matter is pending in the Hon’ble High Court of Delhi and the Company, based on the legal opinion taken, is of the
view that such demand is not tenable and accordingly no provision has been made for this aforementioned demand
raised by DDA in the books of accounts.
(d) In the current year, the Company received a demand amounting to Rs. 0.04 crores from the Commercial Tax
department, Uttar Pradesh which has been deposited by the Company under protest.
(e) Apart from those disclosed above, the Company has certain ongoing litigations involving customers, vendors and
employees. Based on legal advice of in house legal team, the management believes that no material liability will
devolve on the Company in respect of these litigations.
(f) The Company’s share in contingent liabilities of its associate, Central UP Gas Limited is Rs. 25.76 crores (previous year
Rs. 16.35 crores). The Company’s share in contingent liabilities of its associate, Maharashtra Natural Gas Limited is
Rs. 74.67 crores (previous year Rs. 9.91 crores).
2 There are numerous interpretive issues relating to the Hon’ble Supreme Court (SC) judgment dated 28 February 2019
on provident fund on which the Company is seeking legal advice specially on the retrospective applicability of the same.
However, the Company for the current year is complying with the statutory requirements of the same and does not
believes that any material liability would devolve on it.
3 During the current year, GAIL (India) Limited has raised the following claims against the Company in relation to the
allocation and actual utilisation of domestic gas amounting to :
- Rs. 40.70 crores which has later been revised to Rs. 0.17 crores post reconciliation of the computation performed by
the Company and GAIL (India) Limited; and
- Rs. 35.12 crores and Rs. 5.12 crores for the gas supplied by the Company to Adani Gas Limited (AGL) and Haryana City
Gas Distribution Limited (HCGDL) respectively. The Company has raised claims of the corresponding amount to AGL
and HCGDL respectively. Both the aforementioned companies are in the process of reconciling the data with GAIL
(India) Limited. Further, based on the agreements entered into by the Company with AGL and HCGDL respectively,
and subsequent legal advice obatined on this matter, the management believes that the Company has the right to
recover the said amount if charged by GAIL (India) Limited, from these companies. Accordingly, the management
does not believes that any material liability would devolve on the Company.
37
Bank guarantees
(i) The Company was in earlier years granted authorization for laying, building, operating and expanding CGD network in the
geographical area of Karnal and Rewari (Haryana) under the Petroleum and Natural Gas Regulatory Board (Authorizing
entities to lay, build, operate or expand city or local Natural Gas Distribution Networks) Regulation 2008 against which
the Company had submitted a performance bank guarantee of Rs. 1,236 crores (previous year Rs. 1,236 crores) and Rs.
1,052.36 crores (previous year Rs. 1,052.36 crores) respectively to Petroleum and Natural Gas Regulatory Board to cover
the construction obligation for creation of infrastructure in the first 5 years. Further, during the year, the Company has
been granted authorization for laying, building, operating and expanding City Gas Distribution (CGD) network in the
geographical area of Meerut (except area already authorised) Shamli, Muzaffarnagar, Kaithal, Ajmer, Pali, Rajsamand,
167
Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
Kanpur (except area already authorised), Fatehpur and Hamirpur under the Petroleum and Natural Gas Regulatory
Board (Authorizing entities to lay, build, operate or expand city or local Natural Gas Distribution Networks) Regulation
2008. The Company has further submitted a performance bank guarantee amounting to Rs. 158 crores to Petroleum and
Natural Gas Regulatory Board to cover the construction obligation for creation of infrastructure in the first 5 years.
(ii) The Company’s commitment towards unexpired bank guarantees other than above mentioned in point (i) is Rs. 375.39
crores (previous year Rs. 368.41 crores) given in the ordinary course of business.
38 The Company has installed various CNG Stations on land leased from various government authorities for periods
ranging from one to five years. However, assets constructed/installed on such land are depreciated generally at the rates
specified in Schedule II to the Companies Act, 2013, as the management does not foresee non-renewal of the above lease
arrangements by the authorities. The net block of such assets amounts to Rs. 278.99 crores (previous year Rs. 267.60
crores).
39 Security deposits from customers of natural gas, refundable on termination/alteration of the gas sales agreements, are
considered as current liabilities as every customer has a right to request for termination of supply and the Company does
not have a contractual right to delay payment for more than 12 months.
40 As per Section 135 of the Companies Act, 2013, a company, meeting the eligibility criteria, needs to spend at least 2%
of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR)
activities. The Company’s CSR programs/projects focuses on sectors and issues as mentioned in Schedule VII read with
Section 135 of Companies Act, 2013. A CSR committee has been formed by the Company as per the Act.
a) Gross amount required to be spent by the Company during the year is Rs. 16.58 crores (previous year Rs. 14.30
crores)
(Rs. in Crores)
S.No Particulars In cash Yet to be Total
paid in cash
(i) Construction / acquisition of any asset - - -
(ii) On purposes other than (i) above: 14.49 - 14.49
Empowerment of women and girl child 2.11 - 2.11
Eradication of poverty 0.98 - 0.98
Promotion of healthcare and sanitation 2.47 - 2.47
Promotion of education 8.12 - 8.12
Others 0.81 - 0.81
41 The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development Act,
2006 (‘MSMED Act’). The disclosures pursuant to the said MSMED Act are as follows:
(Rs. in Crores)
Particulars Year ended Year ended
31 March 2019 31 March 2018
(a) The principal amount and the interest due thereon remaining unpaid to any
supplier as at the end of each accounting year
-Principal amount due to any supplier* 197.27 126.15
-Interest due on above 0.37 0.11
(b) The amount of interest paid by the buyer in terms of section 16 of the - -
MSMED Act 2006 along with the amounts of the payment made to the
supplier beyond the appointed day during each accounting year
168
Indraprastha Gas Limited | 20th Annual Report 2018-19
42 Employee benefits
The following tables summarizes the components of net benefit expense recognized in the statement of profit and loss
and other comprehensive income and the amount recognized in the balance sheet for the respective plans.
(Rs. in Crores)
Non current Current
31 March 2019 31 March 2018 31 March 2019 31 March 2018
Provision for gratuity (refer note below) 2.16 1.73 0.31 0.37
Provision for leave encashment 17.39 11.10 0.72 0.54
19.55 12.83 1.03 0.91
Gratuity (funded)
(Rs. in Crores)
Gratuity benefits
Particulars Year ended Year ended
31 March 2019 31 March 2018
Change in present value of the benefit obligations are as follows:
Present value of obligations at the beginning of the year 10.89 8.89
Current service cost 1.31 1.00
Interest cost 0.81 0.67
Actuarial (gain)/loss on obligation 1.44 0.27
Benefits paid (0.26) (0.12)
Past service cost including curtailment gains/losses - 0.18
Present value of obligation at the year end 14.19 10.89
Change in plan assets
Fair value of plan asset at the beginning of the year 8.79 -
Actual return on plan assets (including interest) 0.80 -
Employer contribution 2.49 8.79
Mortality charges (0.10) -
Benefits paid (0.26) -
Fair value of plan asset at the end of the year* 11.72 8.79
*The fund is managed by Life Insurance Corporation of India and category-wise composition of plan assets is not available
with the Company.
169
Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
Gratuity (funded) (Contd..)
(Rs. in Crores)
Gratuity benefits
Particulars Year ended Year ended
31 March 2019 31 March 2018
Net liability recognised in balance sheet
Present value of the benefit obligations at the end of the year 14.19 10.89
Fair value of plan asset 11.72 8.79
Net liability recognised in balance sheet as provision 2.47 2.10
Non-current portion of net liability 2.16 1.73
Current portion of net liability 0.31 0.37
2.47 2.10
Expenses recognised in the statement of profit and loss:
Current service cost 1.31 1.00
Past service cost including curtailment gains/losses - 0.18
Interest cost in benefit obligation (net) 0.12 0.67
Total expense recognised in statement of profit and loss 1.43 1.85
Expense recognised in other comprehensive income
Actuarial loss recognised during the year 1.44 0.27
Breakup of actuarial loss on defined benefit obligation:
Actuarial loss on arising from change in financial assumption 0.29 0.38
Actuarial (gain)/loss on arising from experience adjustment 1.15 (0.11)
Total actuarial loss 1.44 0.27
Notes:
1. The discount rate is based upon the market yields available on Government bonds at the accounting date relevant to
currency of benefit payments for a term that matches the liability.
2. The estimates for future salary increase rate takes account of inflation, seniority, promotion, business plan, human
resource policy and other relevant factors on long term basis.
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Indraprastha Gas Limited | 20th Annual Report 2018-19
Experience adjustment:
(Rs. in Crores)
Particulars 2019 2018 2017 2016 2015
Present value of defined benefit obligation 14.19 10.89 8.89 6.19 4.66
Experience gain/(loss) on liability (1.15) (0.11) (0.13) 0.96 0.02
Sensitivity analysis
The significant actuarial assumptions for the determination of the defined benefit obligation are the discount rate, the salary
growth rate and the average life expectancy. The calculation of the net defined benefit liability is sensitive to these assumptions.
The following table summarises the effects of changes in these actuarial assumptions on the defined benefit liability:
(Rs. in Crores)
Particulars As at 31 March 2019 As at 31 March 2018
Increase by Decrease by Increase by 1% Decrease by 1%
0.5% 0.5%
Discount rate
(Decrease)/ increase in the defined benefit (0.93) 1.02 (1.37) 1.51
liability
Salary growth rate
Increase/(decrease) in the defined benefit 1.03 (0.95) 1.52 (1.39)
liability
The present value of the defined benefit obligation calculated with the same method (project unit credit) as the defined
benefit obligation recognised in the balance sheet. The sensitivity analysis are based on a change in one assumption while not
changing all other assumptions. This analysis may not be representative of the actual change in the defined benefit obligation
as it is unlikely that the change in the assumptions would occur in isolation of one another as some of the assumptions may
be correlated.
The Company makes Provident Fund contributions which are defined contribution plans, for qualifying employees. Under the
scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company
recognised Rs. 4.23 crores for provident fund contributions (previous year Rs. 3.35 crores) in the statement of profit and loss.
The contributions payable to these plans by the Company are at rates specified in the rules of the scheme.
171
Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
43 Information on related party transactions pursuant to Ind AS 24 - Related party Disclosures
List of related parties:
(a) Entities having significant influence over the Company (promoter venturers)
172
Indraprastha Gas Limited | 20th Annual Report 2018-19
173
Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
Transactions/balances outstanding with related parties in the ordinary course of business: (Contd..)
(Rs. in Crores)
Particulars Year ended Year ended
31 March 2019 31 March 2018
Security deposit paid 0.01 0.01
Earnest Money Deposit received - 0.04
Bank guarantee outstanding at the year end 28.80 30.73
Other advances 0.05 -
Central U.P. Gas Limited
Transactions during the year:
Sitting fees received 0.04 0.05
Security Deposit given 0.02 -
Security Deposit refund 0.02 -
Reimbursement of advertisement expenses paid by Company - 0.65
Balance outstanding as at the year end:
Trade receivable - 0.65
Maharashtra Natural Gas Limited
Transactions during the year:
Sitting fees received 0.01 0.03
GAIL Gas Limited
Transactions during the year:
Purchase of stock-in-trade of natural gas 132.77 132.89
Reimbursement of advertisement expenses paid by Company - 1.29
Standby letter of credit/ bank guarantee issued/renewed - 8.46
Balance outstanding as at the year end:
Trade payables 5.74 5.62
Trade receivable - 1.29
Bank guarantees 8.46 8.46
Petronet LNG Limited
Transactions during the year:
Purchase of stock-in-trade of natural gas 44.82 0.75
Standby letter of credit/ bank guarantee issued/renewed 11.58 0.75
Net movement in standby letter of credit/ bank guarantee - (0.75)
Balance outstanding as at the year end:
Trade payable 9.62 -
Bank guarantees 11.58 -
Green Gas Limited
Transactions during the year:
Reimbursement of advertisement expenses paid by Company - 0.65
Balance outstanding as at the year end:
Trade receivable 0.06 0.65
Rajasthan State Gas Limited
Transactions during the year:
Sale of traded goods 0.01 -
Key managerial personnel:
Transactions during the year:
Mr. E.S. Ranganathan : Direct reimbursements# 0.03 0.01
Mr. V. Nagarajan: Direct reimbursements# 0.02 0.06
Mr. Rajiv Sikka: Direct reimbursements# 0.05 -
Mr. Rajesh Agrawal (managerial remuneration) 0.74 0.85
174
Indraprastha Gas Limited | 20th Annual Report 2018-19
44 Income-tax expense
(Rs. in Crores)
Particulars Year ended Year ended
31 March 2019 31 March 2018
(a) Income-tax expense
Current tax
Current tax on profits for the year 370.31 316.94
Total current tax expense 370.31 316.94
Deferred tax
(Increase)/ decrease in deferred tax assets (4.27) 14.59
Increase in deferred tax liabilities 61.13 42.69
Total deferred tax expense 56.86 57.28
Income tax expense reported in the statement of profit or loss 427.17 374.22
Deferred tax related to items recognised in OCI during the year
Net loss/(gain) on remeasurements of defined benefit plans (0.50) (0.09)
Tax expense 426.67 374.13
(b) Reconciliation of tax expense and the accounting profit multiplied by India’s tax rate:
(Rs. in Crores)
Particulars Year ended Year ended
31 March 2019 31 March 2018
Profit before income-tax expense 1,182.31 1,024.05
Tax at the Indian tax rate of 34.944% (2017-2018 – 34.608%) 413.15 354.40
Tax effect of amounts which are not deductible (taxable) in calculating taxable
income:
Effect of non deductible expenses 5.41 4.30
Effect of (allowances)/disallowances (6.63) 1.32
Income exempt from tax - (1.48)
Share in profit of associates not taxable 13.82 12.50
Others 0.92 3.09
Income-tax expense 426.67 374.13
175
Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
45 Financial instruments by category
(Rs. in Crores)
Particulars As at 31 March 2019 As at 31 March 2018
FVTPL Amortised cost FVTPL Amortised cost
Non current financial assets
Loans - 11.47 - 8.37
Other financial assets - 0.34 - 0.30
Current financial assets
Investments 1,285.87 - 889.57 -
Trade receivable - 221.48 - 226.14
Cash and cash equivalents - 71.16 - 203.68
Bank balances other than cash and cash - 535.93 - 354.35
equivalents
Unbilled revenue - 32.94 - 21.43
Interest accrued on fixed deposits - 11.46 - 6.34
Security deposits with related parties and - 3.78 - 6.48
others
Total financial assets 1,285.87 888.56 889.57 827.09
Non current financial liabilities
Security deposits - 0.41 - -
Current financial liabilities
Trade payables - 488.48 - 338.58
Security deposits from customers - 649.27 - 544.65
Unclaimed dividends - 0.86 - 0.56
Employee benefits payable - 28.29 - 23.13
Creditors towards capital goods - 295.80 - 224.19
Security deposits from vendors - 3.54 - 5.17
Total financial liabilities - 1,466.65 - 1,136.28
Note :
Investments in associates as at the close of the year ended 31 March 2019 and 31 March 2018 are carried at cost, per the
exemption availed by the Company. Hence, the same has not been considered in the above table.
The following tables present financial assets and liabilities measured at fair value in the statement of financial position in
accordance with the fair value hierarchy. This hierarchy groups financial assets and liabilities into three levels based on
the significance of inputs used in measuring the fair value of the financial assets and liabilities. The fair value hierarchy
has the following levels:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The level within which the financial asset or liability is classified is determined based on the lowest level of significant
input to the fair value measurement.
There are no financial liabilities measured at fair value as at 31 March 2019 and 31 March 2018.
176
Indraprastha Gas Limited | 20th Annual Report 2018-19
(Rs. in Crores)
Level 1 Level 2 Level 3 Total
As at 31 March 2018
Investment in mutual funds 889.57 - - 889.57
Total 889.57 - - 889.57
As at 31 March 2019
Investment in mutual funds 1,285.87 - - 1,285.87
Total 1,285.87 - - 1,285.87
The investments in mutual funds have been fair valued per net asset value (NAV) as at reporting date.
The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents are considered to
be the same as their fair values, due to their short-term nature.
Security deposits received have not been fair valued as the same are repayable on demand, so there is no fixed term available
for the purpose of discounting. Further, security deposits given have not been fair valued as the impact of the fair valuation
is not material.
47
Financial risk management
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact
of the same in the financial statements.
(i)
Foreign currency risk
The Company is exposed to foreign exchange risk mainly through its purchases of capital items from overseas suppliers
in various foreign currencies. The Company evaluates exchange rate exposure arising from foreign currency transactions
and follows established risk management policies to manage its risks.
The Company’s foreign currency exposure on accounts payable that have not been hedged by a derivative instrument or
otherwise are given below:
There shall be no material impact on profit before tax due to 1% increase/decrease in foreign exchange rates.
177
Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
(ii)
Credit risk
Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due to
the Company causing financial loss. It arises from cash and cash equivalents, derivative financial instruments, deposits
from financial institutions and principally from credit exposures to customers relating to outstanding receivables. The
Company’s maximum exposure to credit risk is limited to the carrying amount of financial assets recognized at reporting
date :
Financial assets for which loss allowance is measured using 12 months Expected Credit Losses
(Rs. in Crores)
Exposure to credit risk As at As at
31 March 2019 31 March 2018
Security deposits (non-current) 11.47 8.37
Balance with banks in fixed deposits 0.30 0.30
(under lien against bank guarantee)
Cash and cash equivalents (except cash on hand) 59.27 198.67
Other bank balances 535.93 354.35
Unbilled revenue 32.94 21.43
Interest accrued on fixed deposits 11.46 6.34
Security deposits with related parties and others 3.78 6.48
655.15 595.94
Financial assets for which loss allowance is measured using Lifetime Expected Credit Losses
Trade receivables 226.46 228.53
An analysis of age of trade receivables at each statement of financial position date is summarized as follows:
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
upto 1 year 217.88 222.93
upto 2 years 3.29 1.73
upto 3 years 2.96 1.49
upto 4 years 1.04 1.19
upto 5 years 0.91 0.82
More than 5 years 0.38 0.37
226.46 228.53
178
Indraprastha Gas Limited | 20th Annual Report 2018-19
(iii)
Liquidity risk
Liquidity risk is the risk that suitable sources of funding for the Company’s business activities may not be available.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability
of funding through an adequate amount of committed credit facilities to meet obligations when due and to close
out market positions. Management monitors rolling forecasts of the Company’s liquidity position and cash and cash
equivalents on the basis of expected cash flows. Short term liquidity requirements comprises mainly of trade payables
and employee dues arising during normal course of business as on each statement of financial position date. Long term
liquidity requirement is assessed by the management on periodical basis and is managed through internal accruals. As
at each statement of financial position date, the Company’s liabilities having contractual maturities (including interest
payments where applicable) are summarized as follows:
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting
date based on contractual undiscounted payments:
As at 31 March 2019
(Rs. in Crores)
Particulars Less than 1 More than 1 Total
year year
Trade payables 488.48 - 488.48
Security deposits from customers 649.27 - 649.27
Unclaimed dividends 0.86 - 0.86
Security deposits from vendors 3.54 - 3.54
Employee payable 28.29 - 28.29
Creditor for capital goods 295.80 - 295.80
Security deposits - 0.41 0.41
1,466.24 0.41 1,466.65
As at 31 March 2018
(Rs. in Crores)
Particulars Less than 1 More than 1 Total
year year
Trade payables 338.58 - 338.58
Security deposits from customers 544.65 - 544.65
Unclaimed dividends 0.56 - 0.56
Security deposits from vendors 5.17 - 5.17
Employee payable 23.13 - 23.13
Creditor for capital goods 224.19 224.19
1,136.28 - 1,136.28
179
Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
(iv)
Price risk
The Company is not exposed to sensitivity to price risk in regards to its financial assets and liabilities.
(v)
Interest risk
The Company’s policy is to minimise interest rate cash flow risk exposures. The Company is exposed to the interest rate
risk on fixed deposit and on the investment done by the Company in mutual funds. The exposure to the interest rate for
the Company’s mutual fund and fixed deposit is considered immaterial.
The following table illustrates the sensitivity of profit and equity to a reasonably possible change in interest rates of
+/- 0.50% (2017-18: +/-0.50%). These changes are considered to be reasonably possible based on observation of current
market conditions. The calculations are based on a change in the average market interest rate for each period, and the
financial instruments held at each reporting date that are sensitive to changes in interest rates. All other variables are
held constant.
(Rs. in Crores)
Particulars Profit for the year Equity
0.50% 0.50% 0.50% 0.50%
31 March 2019 9.24 (9.24) 6.01 (6.01)
31 March 2018 7.05 (7.05) 4.61 (4.61)
48 Capital management
For the purpose of Company’s capital management, capital includes issued equity capital. The Company manages
its capital structure and makes adjustments in light of changes in economic condition and the requirements of the
financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total capital
plus net debt. The Company includes within net debt, interest bearing borrowings, less cash and cash equivalents.
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Borrowings - -
Less: Cash and cash equivalents (71.16) (203.68)
Borrowings (net of cash and cash equivalents) - -
Capital employed 4,315.71 3,646.95
Total capital employed 4,315.71 3,646.95
Gearing ratio 0% 0%
180
Indraprastha Gas Limited | 20th Annual Report 2018-19
Estimated amount of contracts remaining to be executed on capital account and not provided for is as under:
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Property, plant and equipment 1,469.80 366.21
1,469.80 366.21
The Company has entered into long-term agreements for purchase of natural gas upto maximum quantity of 0.58 million
standard cubic meters (SCM)/ day (Rs. 1.78 crores per day based on average rates prevailing on March 2019) till 2028 with
different suppliers. These agreements have ‘take or pay’ clause which shall be applicable in case gas off take is less than
the contractual quantity as defined in the agreement and the same can be adjusted against make up quantity to be taken
in the subsequent years. As at the balance sheet date, the management does not foresee any liability on account of the
said obligation.
The Company does not have any outstanding dilutive potential equity shares. Consequently, the basic and diluted earnings per
share of the Company remain the same.
51 The Company has adopted Ind AS 115 “Revenue from Contracts with Customers” from 01 April 2018 which
resulted in changes in accounting policies and adjustments to the amounts recognised in the financial statements.
In accordance with the transition provisions in Ind AS 115, the Company has adopted full retrospective approach.
Pursuant to change in accounting policy, revenue from operations have been disclosed net of facility charges.
Such expenses were earlier grouped under ‘other expenses’ in accordance with the requirements of Ind AS 18 upto
31 March 2018. However, there is no impact on the retained earnings as at 01 April 2017 and for the profit for the year
ended 31 March 2018.
181
Consolidated Summary of Significant Accounting Policies
and other Explanatory Information for the Year Ended 31 March 2019
The impact of the change in accounting policy on the comparative figures has been given as below:
(Rs. in Crores)
Statement of profit and loss (extract) for the year Pre-adoption Increase / Post-adoption
ended 31 March 2019 of Ind As 115 (decrease) of Ind As 115
Revenue from operations 6,434.96 (73.09) 6,361.87
Total income 6,434.96 (73.09) 6,361.87
Expenses
Other expenses 1,041.08 (73.09) 967.99
Total expenses 1,041.08 (73.09) 967.99
(Rs. in Crores)
Statement of profit and loss (extract) for the year As orginally Increase / Restated
ended 31 March 2018 presented (decrease)
Revenue from operations 5,073.65 (58.75) 5,014.90
Total income 5,073.65 (58.75) 5,014.90
Expenses
Other expenses 880.29 (58.75) 821.54
Total expenses 880.29 (58.75) 821.54
There is no impact on the Earning per share (EPS) as result on the adoption of aforementioned adjustment of Ind AS 115.
Contract balances
The following table provides information about receivables, contract assets and contract liabilities from contract with
customers:
(Rs. in Crores)
Particulars As at As at
31 March 2019 31 March 2018
Contract assets
Unbilled revenue 32.94 21.43
Total contract assets 32.94 21.43
Contract liabilities
Excess payments received from customers 23.72 16.57
Advance from customers 6.31 3.79
Total contract liabilities 30.03 20.36
Receivables
Trade receivables 221.48 226.14
Net receivables 221.48 226.14
Contract asset is the right to consideration in exchange for goods or services transferred to the customer. Contract liability
is the entity’s obligation to transfer goods or services to a customer for which the entity has received consideration from
the customer in advance. Contract assets (unbilled receivables) are transferred to receivables when the rights become
unconditional and contract liabilities are recognised as and when the performance obligation is satisfied.
182
Indraprastha Gas Limited | 20th Annual Report 2018-19
There has been no significant changes in Contact assets during the year
(Rs. in Crores)
Particulars Year ended 31 March 2019 Year ended 31 March 2018
Contract Liabilities Contract Liabilities
Excess payments Advance from Excess payments Advance from
received from customers received from customers
customers customers
Opening balance 16.57 3.79 15.19 -
Add: Addition during the year 16.11 6.31 8.12 3.79
Less: Revenue recognised during 8.96 3.79 6.74 -
the year from opening liability
Closing balance 23.72 6.31 16.57 3.79
52 The Company is primarily engaged in the business of providing natural gas. Hence, as per the chief operating decision
maker the sale of natural gas has been considered as a single operating segment per Ind AS 108 ‘Operating Segment’ and
accordingly disclosures have been limited to single operating segment.
53 In the previous year, the Company had finalized negotiations with the Oil Marketing Companies (OMCs) for the trade
margin and facility charges pertaining to Delhi (from 1 April 2015 to 31 March 2018) and Uttar Pradesh (from 1 April 2015
to 31 March 2019) and accordingly, an amount of Rs. 15.92 crores and Rs. 0.30 crores pertaining to previous years had
been written back from the respective heads. Further, during the current year ended 31 March 2019, in the absence of
the agreement effective 1 April 2018 for the Delhi region, an additional amount of Rs. 4.90 crores has been provided in
the books of account towards estimated revision in trade margin and facility charges payable to the OMCs.
54
Post reporting date events
No adjusting or significant non-adjusting events have occurred between 31 March 2019 and the date of authorisation of
the Company’s standalone financial statements. However, the Board of Directors have recommended a final dividend
of 120% i.e. Rs. 2.40 (previous year Rs. 2.00) on equity shares of Rs. 2 (previous year Rs. 2) each for the year ended
31 March 2019, subject to approval of shareholders at the ensuing annual general meeting.
55 The consolidated financial statements for the year ended 31 March 2019 were approved by the Board of Directors on
24 May 2019.
Significant accounting policies and other explanatory information forming part of the consolidated financial statements (1-55)
In terms of our report attached
For Walker Chandiok & Co LLP For and on behalf of Board of Directors
Chartered Accountants
Firm’s Registration No. 001076N/N500013
Sd/- Sd/-
Place: New Delhi Rakesh Chawla S.K. Jain
Date: 24 May 2019 Chief Financial Officer Company Secretary
183
Comments of the Comptroller and Auditor General of
India Under Section 143(6) (b) read with Section 129(4) of
the Companies Act, 2013 on the Consolidated Financial
Statements of Indraprastha Gas Limited for the year
ended 31 March 2019.
The preparation of consolidated financial statements of Indraprastha Gas Limited for the year ended 31 March 2019 in
accordance with the financial reporting framework prescribed under the Companies Act, 2013 (Act) is the responsibility of
the management of the company. The statutory auditors appointed by the Comptroller and Auditor General of India under
section 139(5) of the Act is responsible for expressing opinion on the financial statements under section 143 of the Act based
on independent audit in accordance with the standards on auditing prescribed under section 143(10) of the Act. This is stated
to have been done by them vide their Audit Report dated 24 May 2019.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the consolidated
financial statements of Indraprastha Gas Limited for the year ended 31 March 2019 under section 143(6)(a) of the Act. We
conducted a supplementary audit of financial statements of Indraprastha Gas Limited, Central U. P. Gas Limited (Associate)
and Maharashtra Natural Gas Limited (Associate) for the year ended on that day. This supplementary audit has been carried
out independently without access to the working papers of the statutory auditors and is limited primarily to inquiries of the
statutory auditors and company personnel and a selective examination of some of the accounting records.
On the basis of my audit, nothing significant has come to my knowledge which would give rise to any comment upon or
supplement to statutory auditors’ report under section 143(6)(b) of the Act read with 129 (4) of the Act.
Sd/-
(Prachi Pandey)
Principal Director of Commercial Audit
Place: New Delhi & Ex-officio Member, Audit Board-ll,
Delhi:14.8.2019 New Delhi.
184
a K&A creation | www.kalolwala.co.in
Website: www.iglonline.net
INDRAPRASTHA GAS LIMITED
Regd. office: IGL Bhawan, Plot No. 4, Community Centre,
Sector – 9, R.K. Puram, New Delhi-110022
CIN: L23201DL1998PLC097614, Website: www.iglonline.net
Email: [email protected], Tel No.: 011-46074607, Fax No.: 011-26171863
NOTICE
Notice is hereby given that the 20th Annual General Meeting Companies Act, 2013, be and is hereby, appointed as a
of the members of INDRAPRASTHA GAS LIMITED will be held Director of the Company, liable to retire by rotation.”
at Airforce Auditorium, Subroto Park, New Delhi - 110010, on
5. To consider and, if thought fit, to pass, with or without
Tuesday, the 24th September, 2019, at 11:30 AM to transact the
modification(s), the following Resolution as an Ordinary
following business: -
Resolution:
1
Companies Act, 2013, be and is hereby, appointed as a 10. To consider and, if thought fit, to pass, with or without
Director of the Company, not liable to retire by rotation.” modification(s), the following Resolution as an Ordinary
Resolution:
7. To consider and, if thought fit, to pass, with or without
modification(s), the following Resolution as an Ordinary “RESOLVED THAT pursuant to the provisions of
Resolution: Sections 149, 152 and other applicable provisions of
the Companies Act, 2013, the Companies (Appointment
“RESOLVED THAT pursuant to the provisions of Sections
& Qualification of Directors) Rules, 2014, read with
196 and 197 read with Schedule V and all other
Schedule IV to the said Act, applicable provisions of the
applicable provisions, if any, of the Companies Act, 2013
SEBI (Listing Obligations and Disclosure Requirements)
and the Rules made thereunder and Article 121 (A) (iii)
Regulations, 2015 and the Articles of Association of the
of the Articles of Association of the Company, approval
Company, as amended from time to time, Smt. Saroj Bala
be and is hereby accorded, to the appointment of Shri
(DIN: 07854580), who was appointed as an Additional
Amit Garg (DIN: 08515246) as Director (Commercial) of
Director pursuant to the provisions of Section 161 of the
the Company on whole-time basis with effect from July
Companies Act, 2013, be and is hereby appointed as an
25, 2019 to July 24, 2022 on the terms and conditions
Independent Director of the Company with effect from
of appointment including remuneration forwarded by
February 11, 2019 up to February 10, 2024.”
Bharat Petroleum Corporation Limited vide its letter
no. HRD.C&B.1.CON.DEP.IGL dated July 23, 2019 and 11. To consider and, if thought fit, to pass, with or without
email dated July 23, 2019, with the liberty to the Board modification(s), the following Resolution as an Ordinary
of Directors to alter and vary the terms and conditions, Resolution:
as the Board of Directors may consider necessary and as
“RESOLVED THAT pursuant to the provisions of Sections
may be agreed to by Shri Amit Garg/ BPCL.
149, 152 and other applicable provisions of the
RESOLVED FURTHER THAT the Company shall provide Companies Act, 2013, the Companies (Appointment &
facilities to Shri Amit Garg, approved by Board for Qualification of Directors) Rules, 2014, read with Schedule
his smooth functioning as Director (Commercial) and IV to the said Act, applicable provisions of the SEBI (Listing
reimburse such expenses as are incurred by Shri Amit Obligations and Disclosure Requirements) Regulations,
Garg in carrying out the responsibilities of Director 2015 and the Articles of Association of the Company, as
(Commercial). amended from time to time, Dr. Akhilesh Kumar Ambasht
(DIN: 08339038), who was appointed as an Additional
RESOLVED FURTHER THAT Shri Amit Garg shall not be
Director pursuant to the provisions of Section 161 of the
liable to retire by rotation nor shall be reckoned for
Companies Act, 2013, be and is hereby appointed as an
determining the number of Directors liable to retire
Independent Director of the Company with effect from
by rotation, till the time he holds the office as Director
February 11, 2019 up to February 10, 2024.”
(Commercial) of the Company.”
12. To consider and, if thought fit, to pass, with or without
8. To consider and, if thought fit, to pass, with or without
modification(s), the following Resolution as an Ordinary
modification(s), the following Resolution as an Ordinary
Resolution:
Resolution:
“RESOLVED THAT pursuant to the provisions of Sections
“RESOLVED THAT Shri Rajendra Natekar Pushparaj (DIN:
149, 152 and other applicable provisions of the Companies
07858989), who was appointed as an Additional Director
Act, 2013, the Companies (Appointment & Qualification of
by the Board of Directors and who holds office upto the
Directors) Rules, 2014, read with Schedule IV to the said
date of this Annual General Meeting and in respect of
Act, applicable provisions of the SEBI (Listing Obligations
whom, the Company has received a notice in writing from
and Disclosure Requirements) Regulations, 2015 and the
a member pursuant to the provisions of Section 160 of
Articles of Association of the Company, as amended from
the Companies Act, 2013, be and is hereby, appointed as
time to time, Shri Rajib Sekhar Sahoo (DIN: 02708503),
a Director of the Company, liable to retire by rotation.”
who was appointed as an Additional Director pursuant to
9. To consider and, if thought fit, to pass, with or without the provisions of Section 161 of the Companies Act, 2013,
modification(s), the following Resolution as an Ordinary be and is hereby appointed as an Independent Director
Resolution: of the Company with effect from February 11, 2019 up to
February 10, 2024.”
“RESOLVED THAT Shri Rajeev Verma (DIN: 01089660), who
was appointed as an Additional Director by the Board of 13. To consider and, if thought fit, to pass, with or without
Directors and who holds office upto the date of this Annual modification(s), the following Resolution as an Ordinary
General Meeting and in respect of whom, the Company Resolution:
has received a notice in writing from a member pursuant to
“RESOLVED THAT pursuant to the provisions of
the provisions of Section 160 of the Companies Act, 2013,
Sections 149, 152 and other applicable provisions of
be and is hereby, appointed as a Director of the Company,
the Companies Act, 2013, the Companies (Appointment
liable to retire by rotation.”
2
Indraprastha Gas Limited | Notice
& Qualification of Directors) Rules, 2014, read with the Company, to conduct the audit of the cost records of
Schedule IV to the said Act, applicable provisions of the the Company for the financial year ending March 31, 2020,
SEBI (Listing Obligations and Disclosure Requirements) be paid the remuneration as set out in the statement
Regulations, 2015 and the Articles of Association of the annexed to the Notice convening this Meeting.
Company, as amended from time to time, Shri Ramesh
RESOLVED FURTHER THAT the Board of Directors of
Narain Misra (DIN: 03109225), who was appointed as an
the Company be and is hereby authorised to do all acts
Additional Director pursuant to the provisions of Section
and take all such steps as may be necessary, proper or
161 of the Companies Act, 2013, be and is hereby
expedient to give effect to this resolution.”
appointed as an Independent Director of the Company
with effect from June 11, 2019 upto June 10, 2024.” 16. To consider and, if thought fit, to pass, with or without
modification(s), the following Resolution as an Ordinary
14. To consider and, if thought fit, to pass, with or without
Resolution:
modification(s), the following Resolution as an Ordinary
Resolution: “RESOLVED THAT pursuant to SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 and
“RESOLVED THAT pursuant to the provisions of
other applicable provisions, if any, and subject to any
Sections 149, 152 and other applicable provisions of
modification(s) and re-enactment thereof, consent of the
the Companies Act, 2013, the Companies (Appointment
members be and is hereby accorded to ratify the contract
& Qualification of Directors) Rules, 2014, read with
for purchase of APM gas for NCT of Delhi, at a price
Schedule IV to the said Act, applicable provisions of the
determined by Government of India from time to time,
SEBI (Listing Obligations and Disclosure Requirements)
amounting to Rs. 1113.02 Crores, with its related party i.e.
Regulations, 2015 and the Articles of Association of the
GAIL (India) Limited (Nominee of Government of India),
Company, as amended from time to time, Shri Deepak
during the period April 1, 2018 to March 31, 2019.
Mishra (DIN: 02357888), who was appointed as an
Additional Director pursuant to the provisions of Section RESOLVED FURTHER THAT the Board of Directors of
161 of the Companies Act, 2013, be and is hereby the Company be and is hereby authorized to do all
appointed as an Independent Director of the Company acts, deeds, matters and things that may be necessary,
with effect from June 13, 2019 upto June 12, 2024.” proper, expedient or incidental thereto for the purpose
of giving effect to this Resolution.”
15. To consider and, if thought fit, to pass, with or without
modification(s), the following Resolution as an Ordinary
Resolution: By Order of the Board
“RESOLVED THAT pursuant to the provisions of Section 148
and all other applicable provisions of the Companies Act, Sd/-
2013 and the Companies (Audit and Auditors) Rules, 2014, Place : New Delhi (S. K. Jain)
the Cost Auditors appointed by the Board of Directors of Date : August 14, 2019 Company Secretary
3
7. Route map of the Venue of AGM:
FROM GURGAON
VA
SA
NT
VI
HA
R
AUDITORIUM
ARMY HOSPITAL
RESEARCH RREFERRAL
AIR FORCE
AIRPORT ROAD
HOTEL TAJ PALACE
GURGAON
AIRPORT TO
SIUBROTO PARK
RING ROAD
PETROL PUMP
HP
KUAN
DHAULA
OA
VIHAR
ARJUN
R
TO NARAINNA (M.G. MARG)
D GE
RI
TO JANAKPURI
ARMY GOLF COURSE
8. Members holding shares in physical form are requested 12. Members are requested to bring their copy of the Annual
to notify change in their address, if any, quoting folio Report to the Meeting and no copy would be provided at
number to Registrar and Transfer Agents (RTA) at M/s AGM venue.
Karvy Fintech Private Limited, Karvy Selenium Tower
13. Documents referred in the accompanying Notice shall
B, Plot No 31 & 32, Gachibowli, Financial District,
be open for inspection at the registered office of the
Nanakramguda, Serilingampally, Hyderabad – 500032.
Company on all working days except Saturdays and
9. Members are requested to notify any change of Address/ holidays between 1030 hours to 1230 hours up to the
Bank Account Number: date of conclusion of AGM.
a) To the Company’s Registrar in respect of their 14. In exercise of powers conferred by Section 139 of the
physical share folios; and Companies Act, 2013, the Comptroller and Auditor
b) To their Depository Participants (DPs) in respect of General of India vide its letter dated July 31, 2019, has
their Electronic Demat Accounts as the Company appointed M/s Walker Chandiok & Co LLP (Registration
is obliged to print the Bank details on the dividend No. 001076N/N500013), Chartered Accountants as
warrant as furnished by NSDL/ CDSL. Statutory Auditors of the Company for the FY 2019-20.
10. Members may correspond with the RTA /Company to 15. The business set out in the Notice will be transacted
claim dividends, which remain unclaimed. In this regard, through electronic voting system and the Company is
members are requested to note that dividends not providing facility for voting through electronic means.
encashed or claimed within seven years from the date of Instructions and other related information for e-voting
transfer to the Company’s Unpaid Dividend Account, will is provided herein below. Further, the Company will also
be transferred to the Investor Education and Protection send communication relating to remote e-voting which
Fund. Shares on which dividend remains unclaimed for inter alia would contain details about user ID and password
seven consecutive years will be transferred to the IEPF as along with copy of this Notice to the members separately.
per Section 124 of the Act, and the applicable rules. 16. Voting through electronic means:
11. Members are requested to send their queries, if any, a) Pursuant to the provisions of Section 108 of the
at least 10 days in advance of meeting so that the Companies Act, 2013 read with the Companies
information can be made available at the meeting. (Management and Administration) Rules, 2014,
4
Indraprastha Gas Limited | Notice
(hereinafter referred as “the Rules”), as amended and like mobile number, email ID etc. on first
the provisions of the Securities and Exchange Board of login. You may also enter a secret question
India (Listing Obligations and Disclosure Requirements) and answer of your choice to retrieve your
Regulations, 2015 (“Listing Regulations”), the Company password in case you forget it. It is strongly
has made necessary arrangements for remote recommended that you do not share
e-voting facility to its members to enable them to cast your password with any other person and
their votes electronically. that you take utmost care to keep your
password confidential.
b) The Company has engaged the services of Karvy
Fintech Private Limited (“Karvy”) as the authorized v. You need to login again with the new
agency to provide remote e-voting facilities. credentials.
vi. On successful login, the system will prompt
c) The Board of Directors has appointed Shri V. K.
you to select the “EVENT” i.e., ‘'Indraprastha
Sharma, Company Secretary in practice as the
Gas Limited’.
Scrutinizer, for conducting the remote e-voting
process and poll in a fair and transparent manner. vii. On the voting page, enter the number of
shares (which represents the number of
d) Members are requested to carefully read the
votes) as on the cut-off date under “FOR/
instructions for remote e-voting before casting their
AGAINST” or alternatively, you may partially
vote.
enter any number in “FOR” and partially
e) The remote e-voting period will commence at 9.00 “AGAINST” but the total number in “FOR/
AM on September 21, 2019 and will end at 5.00 PM AGAINST” taken together shall not exceed
on September 23, 2019. your total shareholding as mentioned
herein above. You may also choose the
f) The cut-off date (i.e. the record date) for the purpose
option ABSTAIN. If the member does not
of remote e-voting or poll is September 17, 2019.
indicate either “FOR” or “AGAINST” it will be
A person, whose name is recorded in the register
treated as “ABSTAIN” and the shares held
of members or in the register of beneficial owners
will not be counted under either head.
maintained by the depositories as on the cut-off date,
i.e. September 17, 2019 shall be entitled to avail the viii. Members holding multiple folios/demat
facility of remote e-voting/Ballot Paper. accounts shall choose the voting process
separately for each folio/demat accounts.
g) The procedure and instructions for remote e-voting
are as under: ix. Voting has to be done for each item of the
notice separately. In case you do not desire
(A) In case a member receives an email from Karvy
to cast your vote on any specific item, it will
[for members whose email IDs are registered
be treated as abstained.
with the Company/Depository Participants (s)]:
x. You may then cast your vote by selecting an
i. Launch internet browser by typing the URL:
appropriate option and click on “Submit”.
https://evoting.karvy.com.
ii. Enter the login credentials (i.e. User ID and xi. A confirmation box will be displayed. Click
password as mentioned in email). In case of “OK” to confirm else “CANCEL” to modify.
physical folio, User ID will be EVEN (E-Voting Once you have voted on the resolution(s),
Event Number) xxxx followed by folio you will not be allowed to modify your vote.
number. In case of Demat account, User ID During the voting period, members can
will be your DP ID and Client ID. However, login any number of times till they have
if you are already registered with Karvy for voted on the resolution(s).
e-voting, you can use your existing User ID xii. Corporate/Institutional members (i.e. other
and password for casting your vote. than Individuals, HUF, NRI etc.) are also
iii. After entering these details appropriately, required to send scanned certified true
click on “LOGIN”. copy (PDF Format) of the Board Resolution/
iv. You will now reach password change menu Authority Letter etc., together with attested
wherein you are required to mandatorily specimen signature(s) of the duly authorized
change your password. The new password representative(s), to the Scrutinizer at email
shall comprise of minimum 8 characters [email protected] with a copy
with at least one upper case (A- Z), one marked to [email protected]. The scanned
lower case (a-z), one numeric value (0-9) image of the above mentioned documents
and a special character (@,#,$, etc.). The should be in the naming format “Corporate
system will prompt you to change your Name Event No.”
password and update your contact details
5
(B) In case of members receiving physical copy Example for Physical:
of Notice [for members whose email IDs are MYEPWD <SPACE> XXXX1234567890
not registered with the Company/Depository
iii. If e-mail address or mobile number of the member
Participants (s)]:
is registered against Folio No. / DP ID Client ID, then
i. E-Voting Event Number – XXXX (EVEN), User on the home page of https://evoting.karvy.com, the
ID and Password as provided on the cover member may click “Forgot Password” and enter
page of notice. Folio No. or DP ID Client ID and PAN to generate a
ii. Please follow all steps from Sl. No. (i) to (xii) password.
above to cast your vote by electronic means. iv. Member may call Karvy’s toll free number 1800-3454-
001.
Other Instructions
v. Member may send an e-mail request to evoting@
I. In case of any query and/or grievance, in respect of karvy.com. However, Karvy shall endeavor to send
voting by electronic means, members may refer to the User ID and Password to those new members whose
Help & Frequently Asked Questions (FAQs) and E-voting mail ids are available.
user manual available at the download Section of
https://evoting.karvy.com (Karvy Website) or contact Shri h) Once the vote on a resolution is cast by a member, the
Ramesh Desai, (Unit: Indraprastha Gas Limited) of Karvy member shall not be allowed to modify it subsequently.
Fintech Private Limited, Karvy Selenium Tower B, Plot The Company shall also provide facility for voting
no. 31-32, Gachibowli, Financial District, Nanakramguda, through polling at the Meeting and members attending
Hyderabad - 500032 or at [email protected] or phone the meeting who have not already casted their vote
no. 040 – 67162222 or call Karvy’s toll free No. 1800- by remote e-voting shall be able to exercise their right
3454-001 for any further clarifications. to vote at the AGM. A member can opt for only single
mode of voting i.e. through Remote e-voting or voting at
II. You can also update your mobile number and e-mail id the AGM. If a member casts votes by both modes then
in the user profile details of the folio which may be used voting done through Remote e-voting shall prevail and
for sending future communication(s). vote at the AGM shall be treated as invalid.
III. In case any person becomes member of the Company i) The members who have casted their vote by remote
after dispatch of Notice of AGM and holds shares as on e-voting prior to the meeting may also attend the
the cut-off date for e-voting i.e., September 17, 2019, he/ meeting but shall not be entitled to cast their vote again.
she may obtain the User ID and Password in the manner
as mentioned below : j) The voting rights of the members shall be in proportion to
the paid-up value of their shares in the equity capital of the
i. If the mobile number of the member is registered Company as on the cut-off date (i.e. the record date), being
against shares held in demat form, the member September 17, 2019. A person who is not a member as on
may send SMS: MYEPWD<space> DP ID Client ID to the cut-off date should treat this notice for information
9212993399 purpose only.
Example for NSDL: k) The results shall be declared on or after the AGM. The
MYEPWD <SPACE> IN12345612345678 results along with the Scrutinizer’s Report shall also be
Example for CDSL: placed on the website of the Company (https://www.
MYEPWD <SPACE> 1402345612345678 iglonline.net) and on Karvy’s website (https://evoting.
karvy.com).
ii. If the mobile number of the member is registered
against shares held in physical form the member
may send SMS: MYEPWD<space> Event no. + Folio
no. to 9212993399.
Explanatory Statement Pursuant to Section 102 will recommend the appointment and fixation of remuneration
of the Companies Act, 2013 of Statutory Auditor to the Board.
6
Indraprastha Gas Limited | Notice
work required to be undertaken by the Statutory Auditor and towards Provident Fund, Pension and Gratuity shall be
amendments in prevailing Laws & Regulations. reimbursed to GAIL by the Company as stated more
The Board of Directors of the Company recommends the particularly herein under:
resolution set out in item no. 3 for your approval. Pay Scale: Rs. 1,50,000 - 3,00,000/-
Item No. 4
Particulars Rs./ Month
Shri Gajendra Singh was nominated by GAIL (India) Limited Basic Pay 2,32,170
(GAIL) as a Director & Chairman of the Company. The Board
Variable DA (10% w.e.f. 01.04.2019) 23,217
of Directors appointed Shri Gajendra Singh, as an Additional
HRA @ 24% of Basic Pay per Month 55,721
Director and Chairman w.e.f. January 14, 2019.
Perquisites and allowance 81,260
As per the provisions of Section 161 of the Companies Act, Secondment Allowance 8,000
2013, he shall hold office upto the date of Annual General
Meeting. The Company has received a notice under Section Variable DA: VDA is subject to change every quarter.
160 of the Companies Act, 2013, from a member proposing
Housing: Shri E. S. Ranganathan is drawing HRA.
his candidature for the Directorship of the Company.
Company Car & Telephone: Car and Telephone to be
His brief resume, the nature of his expertise in specific
provided by the Company or reimbursement to be made as
functional areas, names of companies in which he holds
per his entitlement.
directorships, committee memberships/ chairmanships, his
shareholding etc., are separately annexed hereto. Other Benefits: Shri E. S. Ranganathan is also entitled
to reimbursement of cost of spectacles and medical
The Board of Directors recommends the resolution set out in
reimbursement for self and dependent family members,
item no. 4 for your approval.
briefcase, newspaper reimbursement, leave encashment
Other than Shri Gajendra Singh and his relatives, none of the etc. as per GAIL Rules, which will be borne by the Company.
Directors, Key Managerial Personnel of the Company or their In addition, he is entitled for incentive under Performance
relatives are considered to be interested in the resolution. Related Pay (PRP) as per GAIL rules.
Item No. 5 Pension and superannuation benefits: Shri E. S. Ranganathan
remains on the roles of GAIL and therefore shall be governed by
In terms of Article 121 (A) (iii) of the Articles of Association of
the Rules and Regulations of GAIL in respect of superannuation
the Company, Shri E. S. Ranganathan was nominated by GAIL
benefit funds.
(India) Limited (GAIL) as Managing Director w.e.f. June 1, 2016
for a period of three years. Accordingly, Board of Directors His brief resume, the nature of his expertise in specific
appointed Shri E. S. Ranganathan as Managing Director on the functional areas, names of companies in which he hold
terms & conditions of appointment including remuneration directorship, committee memberships/ chairmanships, his
forwarded by GAIL vide its letter nos. GAIL/CO/ TRF/06/2016 shareholding etc., are separately annexed hereto.
dated June 2, 2016 and 22/02/53/2054/2016(Revised) dated
The Board of Directors recommends the resolution set out in
June 9, 2016.
item no. 5 for your approval.
At 17th AGM of the Company held in the year 2016,
Other than Shri E. S. Ranganathan and his relatives, none
Shareholders approval was accorded for the appointment of
of the Directors, Key Managerial Personnel of the Company
Shri E. S. Ranganathan as Managing Director w.e.f. June 1,
or their relatives are considered to be interested in the
2016 for a period of three years i.e. till May 30, 2019.
resolution.
GAIL further extended the tenure of Shri E. S. Ranganathan
Item No. 6 & 7
as Managing Director w.e.f. June 1, 2019 to April 30, 2020.
Accordingly, Board of Directors extended tenure of Shri E. S. The Board of Directors appointed Amit Garg (DIN: 08515246), as
Ranganathan as Managing Director on the terms & conditions an Additional Director w.e.f. July 25, 2019. As per the provisions
of appointment including remuneration forwarded by GAIL of Section 161 of the Companies Act, 2013, he shall hold office
vide its letter no. GAIL/CO/TRF/05/2019 dated May 10, 2019 upto the date of Annual General Meeting. The Company has
and letter no. 22/02/53/2054/2019 dated May 15, 2019. received a notice under Section 160 of the Companies Act, 2013,
from a member proposing his candidature for the Directorship
Major terms & conditions of his appointment as Managing
of the Company.
Director are as under:
In terms of Article 121 (A) (iii) of the Articles of Association
I. Shri E. S. Ranganathan shall have the power of general
of the Company, Shri Amit Garg was nominated by
conduct and management of the business and affairs of
Bharat Petroleum Corporation Limited (BPCL) as Director
the Company.
(Commercial) w.e.f. July 25, 2019 to July 24, 2022 on the terms
II. Salary: and conditions of appointment including remuneration
forwarded by BPCL vide its letter dated July 23, 2019 and
Shri E. S. Ranganathan shall draw his salary and
email dated July 23, 2019. Accordingly, Board of Directors
benefits as per his service conditions from GAIL and in
also appointed Shri Amit Garg as Director (Commercial).
respect of which all expenses including contributions
7
Major terms & conditions of his appointment as Director His brief resume, the nature of his expertise in specific
(Commercial) are as under: functional areas, names of companies in which he holds
Directorships, Committee memberships/ chairmanships, his
I. Shri Amit Garg shall have the power of general conduct
shareholding etc., are separately annexed hereto.
and management of the business and affairs of the
Company. The Board of Directors recommends the resolution set out in
item no. 8 for your approval.
II. Salary:
Other than Shri R. P. Natekar and his relatives, none of the
Shri Amit Garg shall draw his salary and benefits as per
Directors, Key Managerial Personnel of the Company or their
his service conditions from BPCL and in respect of which
relatives are considered to be interested in the resolution.
all expenses including contribution towards Provident
Fund, Pension and Gratuity shall be reimbursed to BPCL Item No. 9
by the Company as stated more particularly herein
Shri Rajeev Verma was nominated by Government of NCT of
under :
Delhi as a Director of the Company. The Board of Directors
Particulars Rs./ Month appointed Shri Rajeev Verma, as an Additional Director w.e.f.
June 21, 2019.
Basic Pay 2,07,430
DA @ 12.4% of Basic Pay and 25,721 As per the provisions of Section 161 of the Companies Act,
2013, he shall hold office upto the date of Annual General
Stagnation Increment
Meeting. The Company has received a notice under Section
HRA 49,783
160 of the Companies Act, 2013, from a member proposing
Deputation Allowance (5% of Basic 4,500 his candidature for the Directorship of the Company.
Pay subject to ceiling of Rs. 4,500
His brief resume, the nature of his expertise in specific
p.m.)
functional areas, names of companies in which he holds
Perks & Allowances (35% of Basic 72,601
Directorships, Committee memberships/ chairmanships, his
Pay and Stagnation Increment) shareholding etc., are separately annexed hereto.
Retirement Benefits (30% of Basic 69,945
The Board of Directors recommends the resolution set out in
Pay, DA and Stagnation Increment)
item no. 9 for your approval.
Variable DA: VDA is subject to change every quarter. Other than Shri Rajeev Verma and his relatives, none of the
Directors, Key Managerial Personnel of the Company or their
Accommodation: He is entitled to Company maintained
relatives are considered to be interested in the resolution.
accommodation or HRA applicable to the location.
Item No. 10 to 14
Other perquisites and benefits: Shri Amit Garg is entitled for
Performance Related Pay and other perquisites / entitlements Smt. Saroj Bala, Dr. Akhilesh Kumar Ambasht, Shri Rajib Sekhar
/ benefits, as applicable to him from time to time in BPCL. Sahoo, Shri Ramesh Narain Misra & Shri Deepak Mishra, non-
executive directors of the Company, have given a declaration
His brief resume, the nature of his expertise in specific
to the Board that they meet the criteria of independence as
functional areas, name of companies in which he holds
provided under Section 149(6) of the Act and Listing Regulations.
Directorship, Committee memberships/ chairmanships, his
Pursuant to the Nomination and Remuneration Committee
shareholding etc., are separately annexed hereto.
recommendation and in the opinion of the Board, each of these
The Board of Directors recommends the resolutions set out directors fulfill the conditions specified in the Act and the Rules
in item nos. 6 & 7 for your approval. framed thereunder for appointment as Independent Director
Other than Shri Amit Garg and his relatives, none of the and they are independent of the management.
Directors, Key Managerial Personnel of the Company or their The Board of Directors are of the opinion that Smt. Saroj
relatives are considered to be interested in the resolutions. Bala, Dr. Akhilesh Kumar Ambasht, Shri Rajib Sekhar Sahoo,
Item No. 8 Shri Ramesh Narain Misra & Shri Deepak Mishra possesses
relevant expertise and experience and are eligible for the
Shri R. P. Natekar was nominated by GAIL (India) Limited as a position of Independent Directors of the Company and
Director of the Company. The Board of Directors appointed fulfils the conditions specified by the Companies Act, 2013
Shri R. P. Natekar, as an Additional Director w.e.f. January 14, and the Listing Regulations. The Board considers that their
2019. association as Independent Directors will be beneficial and
As per the provisions of Section 161 of the Companies Act, in the best interest of the Company.
2013, he shall hold office upto the date of Annual General Their brief resume, the nature of their expertise in specific
Meeting. The Company has received a notice under Section functional areas, shareholding etc., are separately annexed
160 of the Companies Act, 2013 from a member proposing hereto.
his candidature for the Directorship of the Company.
8
Indraprastha Gas Limited | Notice
In compliance with the provisions of Section 149 read with None of the Directors / Key Managerial Personnel of the
Schedule IV of the Act, the appointment of these directors Company/ their relatives is, in any way, concerned or
as Independent Directors is now being placed before the interested in the resolution.
Members for their approval.
Item No. 16
The Board of Directors recommends the resolutions set out
In terms of the SEBI (Listing Obligations and Disclosure
in item nos. 10 to 14 for your approval.
Requirements) Regulations, 2015 (Listing Regulations), GAIL
Other than Smt. Saroj Bala, Dr. Akhilesh Kumar Ambasht, (India) Limited (‘GAIL’) is a related party of the Company.
Shri Rajib Sekhar Sahoo, Shri Ramesh Narain Misra & Shri During the financial year 2018-19, the Company under a
Deepak Mishra and their relatives none of the Directors, Key contract with GAIL (Nominee of Government of India) for
Managerial Personnel of the Company or their relatives are NCT of Delhi purchased APM gas amounting to Rs. 1113.02
considered to be interested in the resolutions. Crores, at a price determined by Government of India, from
time to time.
Item No. 15
The purchases under this contract exceed 10% of the annual
The Board, on the recommendation of the Audit Committee,
turnover of the Company as per the last audited financial
has approved the re-appointment M/s Ramanath Iyer &
statement i.e. of financial year 2018-19. Pursuant to the
Co., New Delhi, Cost Accountants as the Cost Auditor of the
Listing Regulations, the said transaction is a material related
Company for the FY 2019-20. The remuneration proposed to
party transaction and thus, requires shareholders’ approval
be paid to the Cost Auditors, would be Rs. 2.50 Lakhs (Rupees
by way of an Ordinary Resolution.
Two Lakhs Fifty Thousand only) plus out of pocket expenses
with a cap of 10% of the fees, cost of travel (in case meeting Accordingly, the Board of Directors recommends the
to be attended by them takes place outside NCT of Delhi) on resolution set out at Item No. 16 for approval of the
actuals and applicable taxes. shareholders as an Ordinary Resolution.
In accordance with the provisions of Section 148 of the Act Other than Shri Gajendra Singh, none of the Directors, Key
read with the Companies (Audit and Auditors) Rules, 2014, Managerial Personnel of the Company / their relatives is, in
the remuneration payable to the Cost Auditors has to be the way, concerned or interested in the resolution.
ratified by the shareholders of the Company.
Accordingly, the Board of Directors recommends the By Order of the Board
resolution set out at Item No. 15 for approval of the
shareholders as an Ordinary Resolution for ratification of the Sd/-
remuneration payable to the Cost Auditors for the financial Place : New Delhi (S. K. Jain)
year ending March 31, 2020. Date : August 14, 2019 Company Secretary
9
DETAILS OF DIRECTORS SEEKING APPOINTMENT/RE-APPOINTMENT IN ANNUAL GENERAL MEETING
FIXED FOR SEPTEMBER 24, 2019
Name of the Shri Gajendra Shri E. S. Shri Amit Shri R. P. Shri Rajeev Smt. Saroj Dr. A. K. Shri R. S. Sahoo Shri R. N. Shri Deepak
Director Singh Ranganathan Garg Natekar Verma Bala Ambasht Misra Mishra
Date of Birth June 15, 1960 May 30, 1963 March 02, 1967 August 11, December 12, April 04, 1949 August 02, July 1, 1962 November 20, November 09,
1962 1966 1958 1957 1958
Date of January 14, June 01, 2019 July 25, 2019 January 14, June 21, 2019 February 11, February 11, February 11, June 11, 2019 June 13, 2019
Appointment/ 2019 2019 2019 2019 2019
Re-appointment
Qualification M.sc (Physics) Instrumentation A post M.com, IAS Retired Indian Retired CA MBA, M.Tech, Retired Indian
& control graduate in MBA, ICWA, Revenue Indian Forest B.E., B.sc Police Service
engineer and Electronics & Executive MBA Service officer Service officer
post graduate Management from Indian officer
in management School of
(specialization in Business
marketing)
Expertise He has over He has rich He is a senior He has He is an lAS She is a He is a He is a He was He is a retired
in specific 32 years of and vast leader in Oil spectrum of officer and retired Indian retired Practicing Chairman & Indian Police
functional area experience in experience of & Gas space experience presently Revenue Indian Forest Chartered Managing Service (IPS)
hydrocarbon pipeline project having a rich including inter- holding Service (IRS) Service (IFS) Accountant. Director Officer. He
sector. He execution, and varied alia Head of position of officer. She officer. He He has of SJVN held senior
has been operation & experience LPG business, Principal has held senior extensive Limited, a positions in
involved in maintenance of over 32 Head of Secretary been a former positions experience Central various police
the execution of natural gas years across Industrial and cum member of in various in Oil, Power, Government departments
of several pipelines and the entire Commercial Commissioner CBDT and government Infrastructure, Mini Ratna and Central
prestigious compressor value chain in business, Head (Transport) in BIFR departments Urban Schedule “A” Police Reserve
projects of GAIL stations. the industry of treasury, Govt. of NCT of and retired development Public Sector Force (CRPF)
starting from including Heading Delhi. as Principal and Banking Enterprise. He
the HVJ and has sourcing, various Chief etc. has around
held various storage, functions Conservator four decades
leadership logistics and in finance. of forest of experience
and strategic sales in BPCL. Currently, he in water
positions. is an Executive resources and
Currently, he Director-Gas at power sector
is a Director BPCL.
(Marketing) of
GAIL
List of other GAIL (India) Central U. P. Gas Nil Maharashtra Delhi CSC Nil Odisha State PTC India Ltd. Nil
Companies Limited, Gail Limited Natural Gas Integrated E-Governance Civil Supplies
in which Gas Limited, Limited, Bharat Multi Modal Services India Corporation
Directorship Bengal Gas Gas Resources Transit System Limited Limited &
held Company Limited, Limited, Delhi Kalinga Hospital
Limited and Sabarmati Transport Limited
Gail (Global) Gas Limited Infrastructure
Singapore Pte. & Haridwar Development
Limited Natural Gas Corporation
Private Limited Limited, Delhi
Transport
Corporation &
Delhi Finance
Corporation
Chairman/ Audit Nil Nil CSR- Sabarmati Nil Nil Nil Audit Nil Nil
member of Committee Gas Limited Committee -
the Committee – Gail Gas – Member, Odisha State
of Board of Limited- Nomination Civil Supplies
Directors Member, Audit Remuneration Corporation
of other Committee- Committee – Limited –
Companies Bengal Gas Maharashtra Chairman Audit
Company Natural Gas Committee
Limited - Limited- - Kalinga
Chairman Member Hospital Limited
- Chairman
Shareholding in Nil 500 Nil Nil Nil Nil Nil Nil Nil Nil
the Company
Relationship No No No No No No No No No No
with other
Directors
10
INDRAPRASTHA GAS LIMITED
Regd. Office: IGL Bhawan, 4, Community Centre, Sector-9, R. K. Puram, New Delhi–110022
CIN: L23201DL1998PLC097614, Website: www.iglonline.net
Email: [email protected], Tel No.: 011-46074607, Fax No.: 011-26171863
ATTENDANCE FORM
Member(s) or his’s/her’s/theirs’s proxies (ies) are requested to present this form for admission, duly signed in accordance with
his/her/their specimen signature(s) registered with the Company.
I hereby record my presence at the 20th ANNUAL GENERAL MEETING of Indraprastha Gas Limited to be held on Tuesday, the
September 24, 2019, at 11:30 AM at Airforce Auditorium, Subroto Park, New Delhi - 110010, or any adjournment thereof.
Regd. Office: IGL Bhawan, 4, Community Centre, Sector-9, R. K. Puram, New Delhi–110022
CIN: L23201DL1998PLC097614, Website: www.iglonline.net
Email: [email protected], Tel No.: 011-46074607, Fax No.: 011-26171863
(Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies
(Management and Administration) Rules, 2014)
I / We, being the member(s) holding ______________________ shares of the above mentioned Company, hereby appoints
1. This form of proxy in order to be effective should be duly completed and deposited at the registered office of the
Company not less than 48 hours before the commencement of the meeting.
2. A Proxy need not be a member of the Company.