Indraprastha Gas Ltd.
|BSE: 532514||Sector: Others|
|NSE: IGL||ISIN Code: INE203G01027|
|BSE 00:00 | 12 Aug||430.55||
|NSE 00:00 | 12 Aug||430.35||
|Mkt Cap.(Rs cr)||30,139|
|Mkt Cap.(Rs cr)||30138.50|
Indraprastha Gas Ltd. (IGL) - Director Report
Company director report
Your Directors have pleasure in presenting the Twenty Second AnnualReport and the Company's audited financial statements for the Financial Year ended March312021. The financial year 2020-21 witnessed lockdowns from time to time due to Covid-19pandemic which affected overall operations of the Company. Despite challenges the Companycontinued its operations and maintained uninterrupted gas supply to all its customers withsafety.
During the year the Company recorded sales as under:
Figures in Million Standard Cubic Meters (mmscm)
Shri Dharmendra Pradhan then Minister of Petroleum & Natural Gasand Steel Govt. of India & Shri Kailash Gahlot Transport Minister Govt. of NCT ofDelhi inaugurating HCNG Plant & Dispensing station at Rajghat DTC depot New Delhi.Also present are Shri Tarun Kapoor IAS Secretary Ministry of Petroleum & NaturalGas Govt. of India; Shri S M Vaidya Chairman IOCL; Shri Manoj Jain Chairman &Managing Director GAIL (India) Ltd.; Shri A K Jana Managing Director Indraprastha GasLimited & Shri Amit Garg Director (Commercial) Indraprastha Gas Limited.
The Company's financial performance for the year ended March 312021 issummarised below:
(Rs. in Crores)
During the year the gross turnover of the Company has decreased fromRs. 7131.29 Crores in FY 2019-20 to Rs. 5408.91 Crores in FY 2020-21 showing a decline of24.15%.
Shri Dharmendra Pradhan then Minister of Petroleum & Natural Gasand Steel Govt. of India addressing the gathering during inauguration of HCNG Plant& dispensing station at Rajghat DTC Depot New Delhi.
The Profit After Tax (PAT) decreased by 11.52% from Rs. 1136.54 Croresin FY 2019-20 to Rs. 1005.65 Crores in FY 2020-21.
Covid -19 pandemic is the main reason for lower sales volume resultingin decrease in income and profit as compared to last Financial Year.
The Company has prepared the Consolidated Financial Statements alsowhich includes the Company's share of profit in its Associates combined on an equitymethod in accordance with Ind AS 28 - "Investment in Associates and JointVentures". The consolidated PAT during FY 2020-21 is Rs. 1172.55 Crores against Rs.1248.99 Crores in the previous year.
Your Directors are pleased to recommend the highest ever dividend of180% (Rs. 3.60 per share). The proposed dividend would absorb Rs. 252 Crores.
The Company has Dividend Distribution Policy in terms of therequirement of SEBI (Listing Obligations Disclosure Requirements) Regulations 2015. ThePolicy is available on the website of the Company under the web-link:https://www.iglonline.net/5000_media/Dividend-Distribution-Policy.pdf
Compressed Natural Gas Business
During the year your Company augmented CNG infrastructure in itsGeographical Areas. The Company achieved a new milestone by setting up 612th CNG stationin FY 2020-21. The Company had compression capacity of 88 lacs kgs per day and wascatering to 12.05 Lacs vehicles.
The Company provides prepaid card facility for its CNG customers inorder to promote digital payments. Till now more than 155000 prepaid cards are undercirculation catering to approx. 1.7 lacs vehicles. Company has taken more initiatives inDigital Payments at CNG stations for the benefit of customers wherein UPI payment can bemade at CNG stations through wallet payments mode. The Company has also tied up with BhimUPI for enabling UPI payments collection from all modes of payment. The combined efforttowards digital payment collection has helped in a growth of 35% in digital paymentcollection this year vis-a-vis last year.
Company has conducted joint promotion activities with Maruti BajajMahindra Ford and Hyundai at the CNG stations. Due to constant interactions with the carmanufacturers they have launched Company fitted CNG variants which are becoming verypopular among the customers and thus boosting the sales of CNG.
The Company has started for the first time Mobile Refuelling Unit (MRU)for delivering CNG for the convenience of the customers.
Piped Natural Gas Business PNG - Domestic Connections
PNG continued to be focus area of the Company during FY 2020-21. TheCompany provided more than 3.10 Lacs new connections which is the highest number ofconnections in a single financial year in the history provided by any CGD
Shri A K Jana Managing Director Indraprastha Gas Limited exchanging'Gas Supply Agreement' with Shri Vijay Kumar Bidhuri Managing Director Delhi TransportCorporation in the presence of Shri Kailash Gahlot Transport Minister Govt. of NCT ofDelhi and senior officials from Delhi Government IGL & DTC.
Company in the Country. In order to create the PNG awareness furtheramongst target customers a successful campaign was run during the year.
Your Company increased its steel pipeline network from 1150 kms in FY2019-20 to 1265 kms in FY 2020-21 and its MDPE network from 13455 kms in FY 2019-20 to15262 kms in FY 2020-21.
Your Company has taken many innovative initiatives from digitalmarketing to door step-drive during this pandemic to motivate customers to opt PNG such asbulk messaging to potential customers circulation of ad banners & messages on RWAWhatsApp group promoting registration through IGL website & call- centres andlaunching of customer-centric attractive registration schemes.
Your Company has futuristic customer centric approach and aims to bethe best in the CGD sector. The year has witnessed launch of various digital initiativeswhich has also attributed to strengthen Customer Relationship Management. Special focushas been made to strengthen the meter reading billing and bill delivery processes whichhas led to the enhanced customer satisfaction. Path breaking self-billing option via IGLCONNECT mobile application has proven to be extremely useful and widely acknowledged inunprecedented pandemic situations like Covid-19. The Company also maintained safe &uninterrupted supply of gas during lockdown period.
The Company had total 16.85 Lakh connections in Delhi & othergeographical areas as on March 312021.
Shri Dharmendra Pradhan then Minister of Petroleum & Natural Gasand Steel Govt. of India inaugurating PSA Oxygen Plant with Cylinder filling facility atMaharaja Agrasen Hospital Punjabi Bagh Delhi in the presence of Shri Parvesh Sahib SinghVerma Member of Parliament & Shri A K Jana Managing Director Indraprastha GasLimited.
PNG - Commercial & Industrial
During the financial year your Company continued its thrust on theCommercial & Industrial segment which is one of the potential growth areas in thecoming years. Your Company achieved a growth of around 4.5% in sales volume in IndustrialSegment & sales of 33.54 million scm in commercial segment during financial year2020-2021. In terms of number of customers the industrial customer base increased from2435 in March 2020 to 2971 in March 2021 and commercial customer base increased from3143 in March 2020 to 3716 in March 2021.
In Delhi Delhi Pollution Control Committee (DPCC) has banned all otherindustrial fuels except PNG and has advised all industrial customers (wherever PNG isavailable) to switchover to PNG. The Commission for Air Quality Management has alsodirected switching over of all industries in Delhi to PNG. Recently the Commission hasasked Uttar Pradesh Haryana and Rajasthan to prepare a plan to shift industrial units toPNG. Your Company has efficiently co- ordinated to implement the mandate given by DPCC andthe Commission for Air Quality Management by facilitating industrial customer for smoothswitchover to PNG supply. In this regard your Company has been able to convert allpolluting industries located in NCT of Delhi on to PNG Supply. In order to curb downair-pollution levels and to increase natural gas volumes your Company has targeted dieselgenset segment wherein PNG would replace use of diesel in gensets. IGL's PNG network iswidely available among various Industrial & Commercial clusters of Delhi and NCR townsof
First Commercial PNG connection by Indraprastha Gas Limited inMuzzaffarnagar Uttar Pradesh being commissioned at Vardhman Hospital Muzaffarnagar.Ghaziabad Gautam Budh Nagar. Your Company is working with a focused approach to furtherexpand/ strengthen pipeline network by providing last mile connectivity to the Industrial& Commercial establishments in existing areas where pipeline grid is available andexpand pipeline network to cater to other industrial areas.
In commercial segment 1047 new registrations were completed during theFY 2020-21 and pipeline laying was started in new areas like Connaught Place DelhiCantt. Mahipalpur. Furthermore your Company has installed more than 250 connections inDefence Establishments in Delhi Cantt. Area your Company is also expanding its network tonew Geographical Areas (GAs) like Muzzaffarnagar Meerut & Shamli Kanpur (other thanarea already authorized) Fatehpur & Hamirpur and Ajmer Rajsamand & Pali to caterthe demand of Industrial & Commercial segment.
Your Company is also working in a collaborative and participatoryapproach with state Pollution Control Boards so as to work out an action plan to convertall industrial and commercial units to PNG (wherever IGL's PNG network is available). Tofurther expand its footprint your Company has been able to execute Gas Sale Agreements(GSA) with Industrial Customers in Karnal Gurugram and Rewari Geographical Area (GA) andalso started supplying PNG which would facilitate increase in consumption of Natural Gas(NG) volumes.
Shri A K Jana Managing Director Indraprastha Gas Limited & ShriAmit Garg Director (Commercial) Indraprastha Gas Limited flagging off India's first longrange CNG bus fitted with composite cylinders at New Delhi.
The Mobile CNG Refuelling Unit developed by Indraprastha Gas Limitedinaugurated virtually by Shri Dharmendra Pradhan then Minister of Petroleum & NaturalGas and Steel Govt. of India.
Associate Companies Central U. P. Gas Limited (CUGL)
CUGL is engaged in City Gas Distribution in the cities of KanpurBareilly Jhansi and Unnao in Uttar Pradesh. Your Company holds 50% of the paid-up equityshare capital of CUGL.
CUGL achieved a gross turnover of Rs. 294.79 Crores and Profit AfterTax of Rs. 78.62 Crores for the financial year ended March 312021.
Maharashtra Natural Gas Limited (MNGL)
MNGL is in City Gas Distribution business in Pune Pimpri ChinchwadChakan Talegaon and Hinjewadi Nasik GA (Nasik Dhule & part of Valsad) SindhudurgGA in the state of Maharashtra and Ramanagara GA in the state of Karnataka. Your Companyholds 50% of paid-up equity share capital of MNGL.
MNGL achieved a gross turnover of Rs. 799.90 Crores and Profit AfterTax of Rs. 172.98 Crores for the financial year ended March 312021.
The statement containing the salient features of the financialstatements of Company's Associates pursuant to the first proviso to sub-section (3) ofSection 129 is appended as Annexure 1 to this Report.
Your Company has been looking for organic as well as inorganic growthas part of its corporate strategy.
Your Company is participating under SATAT (Sustainable Alternativetowards Affordable Transportation) initiative of MoPNG & issued Letter of Intent(s) tofacilitate waste management and promote use of Bio-Gas. Your Company is also working onopening of new avenues by setting up of its own Compressed Biogas Plants under Gobardhanscheme & Waste to Energy initiatives of the government.
The pilot project of running HCNG plant of IOCL in collaboration withIGL & DTC has been completed at Rajghat DTC depot wherein 50 DIMTS buses were fuelledwith HCNG. The findings and data related to improvements in vehicular emissions is beingcompiled by IOCL for submission to Supreme Court. IGL is also exploring the possibilitiesof putting up Green Hydrogen generation plant for blending with natural gas for whichdetailed technical study shall be conducted.
To promote inter-city public transport IGL has successfully showcaseduse of Type IV cylinder long-haul buses between Delhi and Dehradun. To take it furtherIGL is actively exploring conversion of Long Haul Transport from pollutant fuel (Diesel)to cleaner fuel (CNG) of various State Transport Undertakings (STU's) and PrivateTransporters towards conversion of their vehicles on CNG.
As per diversification strategy your Company is also looking forwardto setup Electric Vehicles (EV) charging facilities at various sites (including IGL CNGStations). IGL has already installed and commissioned two fixed EV Charging stations inNCT of Delhi. IGL plans to setup around 50 EV charging stations to cater two wheelers/three wheelers by the end of this financial year.
Your Company is also looking forward for setting up of LNG/ LCNGstations on Golden Quadrilateral (GQ) Highway in it's GAs.
The matter of taking over the entire CGD activities in Gurugramdistrict from Haryana City Gas Distribution Ltd. is sub-judice in the Hon'ble Supremecourt of India.
There are other growth drivers which shall contribute to the salesvolume in all segments of the Company's business.
It is expected that the price differential of CNG and liquid fuel willcontinue to drive the conversion of petrol-driven private vehicles to CNG mode. DTC andDIMTS have plans to add 1000 and 400 new CNG buses respectively in their fleet which wouldadd to CNG sales of the Company. With the spread of CNG in new geographical areas carmanufacturers are coming out with new CNG variants cars.
In PNG domestic segment also the Company is working aggressively tomeet the target. Also thrust will be given on bringing all services on a single digitalplatform for customers. All types of customer request will be entertained via mobileapplication. Your Company is trying to make effective use of Artificial Intelligence tosmoothen the process of customer interaction with IGL at various touch points.
The Company has achieved Minimum Work Programme (MWP) targets in itsall geographical areas. In the coming years it is expected that other State PollutionControl Boards mainly in NCR would also mandate use of PNG by Industrial Customers in linewith DPCC. Recently the Commission for Air Quality Management has asked the states ofU.P. Haryana and Rajasthan to shift NCR industrial units to natural gas.
The Company has drawn strategy to diversify for future growth of theCompany. The Company is also looking for expanding its operation through merger oracquisition of stakes in other companies in the country.
Your Company has been successful in fighting and overcoming alladversities and roadblocks brought by the global pandemic Covid-19 during this yearthrough its strong technology foundation.
Your Company has enhanced and consolidated the hardware infrastructurehosting various critical business applications by migrating them to new and advancedservers equipped with higher processing capacity and reliability to support growing userbase amid geographical expansion. Some of the applications have also been migrated tocloud for enhanced reliability and uninterrupted access to customers. Your Company hasrolled out efficient collaboration platform through MS Teams and VPN for remote access ofapplications facilitating online/virtual meetings.
Your Company has remained committed towards ensuring customer delightthrough continuous development towards improving customer experience in using the onlineservices via mobile app and portal. The Company has been providing payment options throughover 80 payment gateways. Online functionalities for Industrial and Commercial (I&C)customers have also been provided in existing customer portal and IGL website viz.customer on-boarding (new connection) online payments and complaints etc. I&Ccustomers can also now submit meter reading via 'IGL Connect' customer app. Mobile walletsbased payment option for ease of making payment for I&C customers have also been addedin customer app. Various enhancements have been made in existing customer portal viz. pushnotification facility regarding promotional offers invoice generation due date reminderetc. In order to provide secure login to customers mobile OTP based validation mechanismhas been introduced during signup process. A GPS based tracking mechanism has beenprovided through mobile app to track the meter readers in order to ensure traceabilitytracking and improving efficiency of customer billing process.
Your Company has also successfully automated critical manual processesat IGL's CNG stations by implementing DSA/DPR application as a digital platform for dailysales and gas reconciliation breakdown and shutdown reports etc.
Your Company values its human resources and is always committed inproviding them an environment of learning and growth. Various welfare measures andemployee oriented policies drive the human resources to deliver their best in achievingthe organizational performance.
Your Company is taking care of its employees through differentinterventions. The Job description documentation exercise was also undertaken for unique& crucial positions across the organization level. The Company reviews from time totime compensation packages and other policies/facilities of its employees to make themmore competitive and aligned with industry practices.
Learning and Development of employees form an integral part of theCompany's Policy towards accomplishing organizational goal. The continual imparting oftraining both technical and non- technical is necessary for the growth of employees.
During the year your Company inducted various young and senior leveltalented professionals to infuse knowledge experience and talent in the professionalsphere. The comprehensive Induction Training has also been imparted to new recruits.
During the year despite Covid-19 pandemic the employees were impartedwith the best of trainings through virtual mode viz. Customer Delights CustomerCentricity Building High Performance Team other e-learning programmes etc.
During the year employees were encouraged to participate in varioussports events viz Cricket Matches Delhi Half Marathon (online) Yoga Sessions etc. totake care of employees' health & fitness. Online consultations with doctorspreventive sessions on Covid - 19 arrangements for Covid-19 (RT-PCR) Tests and post CovidCare Camps were also organized for employees during the pandemic. In addition to thisfacilitation has been made for essential requirement for Covid-19 like medicines oxygencylinders plasma donation blood donation arrangement of foods etc.
Your Company has maintained a harmonious and cordial relation among itsemployees and appreciates the contribution of all employees in its growth path.
Health Safety and Environment (HSE)
Health Safety and Environment has always been on the top priority ofyour Company which extends to its customers and community around the various units andsegments. Your Company is concerned with health of its workers various stakeholders andcommunity. Operating with compliance to all the applicable national and internationalcodes of practice and all the statutory guidelines with standardised procedures to createa safe workplace at various installations of your Company. Your Company is alwaysencouraging the consumers and other stakeholders to use and promote natural gas whichcould be a major factor to control environmental pollution and to provide a greenerhabitat to future generations.
Your Company is committed to put constant efforts to train educate theemployees working for the Company to ensure safety at our operations. CNG and PNGcustomers are also covered in the training drives at their doorsteps through mobiletraining van. Vehicle kits testing camps are also organised free of cost for the CNGcustomers wherein safety awareness is created to encourage the customers for timelytesting and maintenance of their vehicles including CNG kits and CNG cylinders. Furthersafety messages are broadcasted through radio for the awareness of customers stakeholdersand community.
During the Covid-19 pandemic your Company has ensured 24X7uninterrupted gas supply to its customers by following Covid-19 prevention guidelines andhygiene standards to ensure safety of customers as well as employees. Customer serviceactivities and departments of the Company remained functional throughout the lockdownperiod by making the use of digital platforms for meetings reviews awareness programstrainings and customer services. To deal with any emergency Emergency Control Centres(ECC) remained functional round the clock across Delhi & other geographical areas torespond promptly to any emergency. The emergency response and preparedness is assessedfrequently by conducting mock drills regularly. In FY 2020-21 your Company has activelyparticipated in off-site emergency mock drill at Dadri Gautam Buddha Nagar (UP) incoordination with District authorities.
Your Company has been awarded with Safety Innovation Award by Instituteof Engineers (IOE) and Certificate of Appreciation by National Safety Council (NSC) in FY2020- 21 for the contributions done in HSE field and creating new benchmarks.
Shri A K Jana Managing Director IGL & Shri Amit Garg Director(Commercial) IGL handing over sanitization sprayers to Shri Randhir Sahay AdditionalCommissioner South Delhi Municipal Corporation as its CSR initiative.
Corporate Social Responsibility
Your Company is fully conscious of its Corporate Social Responsibility(CSR). In addition to carrying forward various CSR projects started in the earlier yearmany new ones were also initiated in Covid-19 hit FY 2020-21.
Your Company has strategically aligned many of its CSR activities tocreate value for the society. Your Company has identified health education empowermentof women & underprivileged and skill development as its major focus areas on whichmost of the CSR programmes are targeted.
Your Company realized its commitment to the underprivileged sections ofthe society which was severely hit by the lockdown at the beginning of financial year2020-21. Your Company was at the forefront in contributing towards Nation's fight againstthe pandemic Covid-19 in form of relief material such as food dry ration handsanitizers PPE Kits etc. to the needy people as well as frontline workers across Delhi& NCR. As one of the stakeholders of Road Safety Cell of Delhi Traffic Police yourCompany has been actively supporting Road Safety Campaigns of Delhi Traffic Police.
"Building Bonds through Gender Sensitization" a key CSRproject of your Company is a training programme for taxi bus and auto drivers in DelhiNoida & Gurugram aimed at making commute in public transport safe for the women.Special training as sewing machine operators has been provided to rural women & menfrom villages in Noida & Greater Noida to empower them to earn on their own.
Your Company has been supporting meritorious students fromunder-privileged strata of society for specialized coaching for engineering entranceexamination through a scheme run by an NGO for the last eleven years. This year yourCompany has started supporting meritorious students from underprivileged sections of thesociety for preparation towards Civil Services Examination and Medical Entranceexamination also.
Considering the ever growing demand for skilled manpower across sectorsas a result of 'Make in India' programme your Company is contributing towards SkillDevelopment programmes for unemployed youth in the fields of gas plumbing and welding byproviding technical oriented quality training. A Gas Plumbing Training Centre set up byyour Company in a government run ITI has been running a special module for providingspecialized skills to ITI students related to gas plumbing. Your Company has also beenproviding skill development training to several underprivileged youths to enhanceemployability in multiple fields such as gas plumbing mobile phone hardware repairtechnician CCTV installation technician assistant beauty therapist home appliancestechnicians and automotive service technician & tailoring at Delhi Ghaziabad andRewari.
As a commitment to environment your Company is funding theReforestation of waste land near Barapullah Drain Sarai Kale Khan New Delhi bydeveloping a Carbon Sink in collaboration with DDA and Office of Principal ScientificAdvisor to Govt. of India.
The annual report on CSR activities in accordance with the Companies(Corporate Social Responsibility Policy) Rules 2014 is appended as Annexure 2 to thisreport.
Directors Responsibility Statement
Pursuant to the provisions of Section 134 (5) of the Companies Act2013 your Directors hereby confirm that:
i. In the preparation of Annual Accounts for the financial year endedMarch 31 2021 the applicable accounting standards have been followed;
ii. they have selected such accounting policies and applied themconsistently except where otherwise stated in the Notes to Accounts and made judgments andestimates that are reasonable and prudent so as to give a true and fair view of the stateof affairs of the Company at the end of the financial year and of the profit of theCompany for that period;
iii. They have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Companies Act 2013for safeguarding the assets of the Company and for preventing and detecting fraud andother irregularities;
iv. They have prepared the Annual Accounts for the Financial Year endedMarch 31 2021 on a going concern basis;
v. They have laid down internal financial controls to be followed bythe Company and that such internal financial controls are adequate and were operatingeffectively; and
vi. They had devised proper systems to ensure compliance with theprovisions of all applicable laws and that such systems were adequate and operatingeffectively.
Shri Arun Kumar Singh nominee of Bharat Petroleum Corporation Limited(BPCL) was appointed as the Chairman of the Company w.e.f. January 14 2021 and Shri P.K. Gupta ceased to be a Director of the Company w.e.f. January 14 2021.
Shri R. K. Jain nominee of Gail (India) Limited (GAIL) was appointedas an Additional Director of the Company in place of Shri R. P. Natekar w.e.f. January 142021.
Shri Kailash Gahlot Transport Minister Govt. of NCT of Delhiflagging off women safety vans for DTC passengers contributed by Indraprastha Gas Limited(IGL) under CSR in the presence of Shri A K Jana Managing Director IGL; Shri Vijay KumarBidhuri Managing Director Delhi Transport Corporation; Shri Amit Garg Director(Commercial) IGL and senior officials from IGL and DTC.
Shri Ashish Kundra nominee of Govt. of NCT of Delhi was appointed asan Additional Director of the Company in place of Smt. Manisha Saxena w.e.f. March 262021.
In terms of Section 152 of the Companies Act 2013 Shri A. K. JanaManaging Director of the Company is liable to retire by rotation at the ensuing AnnualGeneral Meeting and being eligible has offered himself for re-appointment.
The Board takes this opportunity to place on record its appreciationfor valuable contribution made by Shri P. K. Gupta Shri R. P. Natekar and Smt. ManishaSaxena during their tenure as the Directors of the Company.
The Company has received declarations from all the IndependentDirectors of the Company confirming that they meet the criteria of independence asprovided under section 149(6) of the Companies Act 2013 and SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 (hereinafter referred to as the "ListingRegulations").
The details of programmes for familiarization of Independent Directorswith the Company are put up on the website of the Company i.e.http://www.iglonline.net/7english/5000_media/Investor_Relations/Familiarization-Programmes-for-Independent-Directors.pdf
The Nomination & Remuneration Committee considers various criteriasuch as age qualification expertise diversity in composition of Board and likelycontribution to the Company while recommending the name of the Independent Directors.
The Board of Directors carried out the evaluation of every DirectorCommittees of Board and the Board as a whole based on the laid down criteria ofperformance evaluation.
In the opinion of the Board of Directors independent directors haverequired integrity expertise and experience.
As per the requirement of the Listing Regulations a detailed Report onCorporate Governance and certificate regarding compliance of conditions of CorporateGovernance are annexed as part of the Annual Report.
The Auditors' Certificate on Corporate Governance for FY 2020-21 of M/sV. K. Sharma & Co. Practicing Company Secretaries is self-explanatory and does notcall for any further comments.
Business Responsibility Report
As per the requirement of the Listing Regulations a detailed Report onBusiness Responsibility is annexed as part of the Annual Report.
During the financial year 2020-21 your Company has not accepted anydeposit within the meaning of Sections 73 and 74 of the Companies Act 2013 read togetherwith the Companies (Acceptance of Deposits) Rules 2014.
Particulars of Loans Guarantees or Investments
During the financial year 2020-21 your Company has not granted loansnor given guarantee nor made any investments.
Amount which the Company proposes to carry to any Reserves if any
For the financial year 2020-21 your Company has not transferred anyamount to the general reserve of the Company.
Number of Meetings of the Board and Audit Committee
The details of the number of meetings of the Board and Audit Committeeheld during the financial year ended March 31 2021 and composition of Audit Committee aregiven in Corporate Governance Report.
Related Party Transactions
Policy on materiality of Related Party Transactions and on dealing withRelated Party Transactions has been disclosed on the website of the Company at: -https://www.iglonline.net/ english/5000_media/About_us/Related-Party-Policy.pdf
Details of transactions with related parties are being disclosedseparately in the Annual Report. One contract with GAIL qualify as material transactionsunder Listing Regulations the same is being placed for shareholders' approval in theensuing Annual General Meeting (AGM).
Prevention of Sexual Harassment at Workplace
As per the requirement of The Sexual Harassment of Women at Workplace(Prevention Prohibition & Redressal) Act 2013 and Rules made there under yourCompany has constituted Internal Complaints Committee (ICC). During the FY 2020-21 nocomplaint with allegation of sexual harassment was received by the Company.
Risk Management and Internal Financial Control Adequacy
Your Company has Risk Management System in place including the RiskPolicy & identification of the Risks which are reviewed periodically. The Company hasalso Risk Management Committee as per the requirement of the Listing Regulations.
Your Company has laid down a set of standards processes and structurefor internal financial control across the organization and ensures that the same areadequate and operating effectively.
The Company has a well-defined Vigilance framework which provides aplatform to the employees directors vendors suppliers and other stakeholders of theCompany to come forward and raise their genuine concerns without any fear of retaliationand victimization. The Company has engaged an independent third party service provider forcomplaint management under the whistle-blower platform. The details of the Whistle BlowerPolicy are available on the website of the Company: www.iglonline.net. Besides WhistleBlower Policy the Company has also framed Vigil Mechanism policy under which thestakeholders can lodge their complaint(s) to Chief Ethics Officer of the Company.
Your Company had appointed M/s Ramanath Iyer & Co New Delhi asCost Auditors for the FY 2020-21.
As per Section 148 read with Companies (Audit & Auditors) Rules2014 and other applicable provisions if any of the Companies Act 2013 the Board ofDirectors of your Company has appointed M/s Chandra Wadhwa & Co New Delhi CostAccountants as the Cost Auditors of the Company for the FY 2021-22. The remunerationproposed to be paid to the Cost Auditors is subject to the ratification by the members atthe ensuing Annual General Meeting of the Company.
Your Company is maintaining cost records as specified by the CentralGovernment under Section 148 of the Companies Act 2013.
Secretarial Auditors and Secretarial Audit Report
Pursuant to Section 204 of the Companies Act 2013 your Company hadappointed M/s V. K. Sharma & Co. Practicing Company Secretaries Noida as itsSecretarial Auditors to conduct the Secretarial Audit of the Company for the FY 2020-21.The Report of Secretarial Auditor for the FY 2020-21 is appended as Annexure 3 to thisreport.
Remarks referred to in the Secretarial Auditors' Report for FY 2020-21of M/s V. K. Sharma & Co. Practicing Company Secretaries are self-explanatory and donot call for any further comments.
Disclosures Regarding Remuneration
Disclosures pertaining to remuneration and other details as requiredunder Section 197(12) of the Companies Act 2013 read with Rule 5(1) and 5(2) of theCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014 is appendedas Annexure 4 to this report.
Extract of Annual Return
The Annual Return of the Company as on March 31 2021 in Form MGT 7in accordance with the Section 92 (3) of the Companies Act 2013 read with Companies(Management and Administration) Rules 2014 is available on the website of the Company.
In exercise of powers conferred by Section 139 of the Companies Act2013 the Comptroller and Auditor General of India (CAG) has to appoint Statutory Auditorsof the Company for the FY 2021-22.
The Notes on financial statements referred to in the Auditors' Reportfor FY 2020-21 of M/s Datta Singla & Co. Chartered Accountants are self-explanatoryand do not call for any further comments.
Review and Comments of CAG on Standalone and Consolidated financialstatements for the FY 2020-21 form part of financial statements of the Company.
Conservation of Energy and Technology Absorption Foreign ExchangeEarnings and Outgo
The information in accordance with the provisions of Section 134 (3)(m) of the Companies Act 2013 read with Rule (8) of the Companies (Accounts) Rules 2014is appended as Annexure 5 to this report.
Your Directors express their gratitude to the Central Government StateGovernments of NCT of Delhi Uttar Pradesh Haryana & Rajasthan Ministry of Petroleum& Natural Gas Petroleum and Natural Gas Regulatory Board and Promoter Companies (GAIL& BPCL) for their continuous guidance & support throughout the year.
The Directors also acknowledge the support of all Statutory & LocalAuthorities Bankers Media Station Operators & their employees contractors vendorsand suppliers.
The Directors place on record their deep appreciation towards IGL'svalued customers for their continued patronage support and look forward to the continuanceof this relationship in future also.
The Directors wish to express their gratitude to all the shareholdersfor their continued trust and support.
The Directors also sincerely acknowledge the contributions made by allthe employees of IGL for their dedicated services to the Company.
For and on behalf of Board of Directors