MIRA
INFORM REPORT
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Report Date : |
08.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
INDRAPRASTHA GAS LIMITED |
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Registered Office : |
IGL Bhawan, Plot No. 4, Community Centre, Sector 9, R.K. Puram, New Delhi - 110022 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
23.12.1998 |
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Com. Reg. No.: |
97614 |
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CIN No.: [Company
Identification No.] |
L23201DL1998PLC097614 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELI02753C |
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PAN No.: [Permanent
Account No.] |
AAACI5076R |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
The retail gas distribution and supplying of
compressed natural gas (CNG)
to automotive sector and piped natural gas (PNG) to domestic and commercial sectors like hotels,
hospitals, embassies, restaurants etc. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 19000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track.
Available information indicates high financial responsibility of the company.
Fundamentals are strong and healthy. General financial position is
satisfactory. Payments are reported as usually correct and as per
commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. It can be regarded as a promising business partner in a medium to
long-run. |
LOCATIONS
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Registered Office : |
IGL Bhawan, Plot No. 4, Community Centre, Sector 9, R.K. Puram, New Delhi - 110022 |
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Tel. No.: |
91-11-46074607
[Helpline 1800112535 / 64543592] |
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Fax No.: |
91-11-26171860/26171863 |
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E-Mail : |
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Website : |
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Corporate Office : |
Jeevan Bharati Building, Tower II, 10th Floor, Connaught
Circus, New Delhi – 110 001 |
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Tel. No.: |
91-22-23356507 |
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Fax No.: |
91-22-23358793 |
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Administrative Office : |
2-A, Great Eastern Plaza, R. K. Puram, New Delhi - 110 066 |
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Tel. No.: |
91-11-26160766 / 0474 |
DIRECTORS
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Name : |
Dr. U. D. Choubey |
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Designation : |
Chairman |
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Name : |
Mr. Om Narayan |
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Designation : |
Managing Director |
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Name : |
Mr. Manmohan Singh |
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Designation : |
Director (Commercial) |
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Name : |
Mr. S. Radhakrishnan |
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Designation : |
Director |
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Name : |
Mr. R. Chandramohan |
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Designation : |
Director |
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Name : |
Mr. S.S. Dalai |
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Designation : |
Director |
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Name : |
Mr. Sadashiv S. Rao |
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Designation : |
Director |
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Address : |
16, Samriti Plot, 556,
Chembur, Mumbai - 400 071 |
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Name : |
Mr. D. M. Spolia |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. S.K, Jain |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.12.2007
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Names of Shareholders |
No.
of Shares |
Percentage
of Holding |
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Shareholding of Promoter and Promoter Group |
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Indian |
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Bodies Corporate |
63000080 |
45.00 |
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Public shareholding |
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Institutions |
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Mutual Funds/UTI |
17168579 |
12.26 |
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Financial Institutions/ Banks |
341862 |
0.24 |
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Central Government/ State Government(s) |
7000000 |
5.00 |
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Insurance Companies |
6658759 |
4.76 |
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Foreign Institutional Investors |
26481643 |
18.92 |
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Non-institutions |
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Bodies Corporate |
4701862 |
3.36 |
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Individuals |
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I. Individual shareholders holding nominal share capital
up to Rs. 0.100 Million |
11887691 |
8.49 |
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II. Individual shareholders holding nominal share capital
in excess of Rs. 0.100 Million |
1940579 |
1.39 |
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Any Other- |
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(i) Non resident Indians |
583819 |
0.42 |
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(ii) Trusts |
5655 |
0.00 |
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(iii) Clearing Members |
229631 |
0.16 |
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TOTAL |
140000160 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
The retail gas distribution and supplying of
compressed natural gas (CNG)
to automotive sector and piped natural gas (PNG) to domestic and commercial sectors like hotels,
hospitals, embassies, restaurants etc. |
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Products : |
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PRODUCTION STATUS
Licensed and
installed capacity
The Company is operating
on the basis of allocation of 2.00 Million Metric Standard Cubic Metres per day
(MMSCMD, previous year 2.00 MMSCMD) of natural gas on firm basis by the order
from Ministry of Petroleum & Natural Gas.
GENERAL
INFORMATION
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Customers : |
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No. of Employees : |
150 |
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Bankers : |
Kotak Mahindra Bank Limited Syndicate Bank Canara
Bank Jeevan
Bharti Building, Tower II, Parliament Street, New Delhi - 110 001 ICICI
Bank Limited Corporate
& Institutional Banking Division, 9A, Phelps Building, Connaught Place,
New Delhi - 110 001 IDBI
Bank Limited 1/6
Siri Fort Institutional Area, Khel Gaon Marg, New Delhi - 110 049 State
Bank of India Corporate Accounts Group
Branch, 11th Floor , Jawahar Vyapar Bhawan, 1, Tolstoy Marg, New
Delhi - 110 001 |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
BSR and Company Chartered Accountants Gurgaon Deloitte
Haskins and Sells Chartered Accountants |
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Parent Company : |
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Associates/Subsidiaries : |
·
GAIL (India) Limited
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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220000000 |
Equity Shares |
Rs. 10/- each |
Rs. 2200.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
140000160 |
Equity Shares |
Rs. 10/- each |
Rs. 1400.002
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
1400.002 |
1400.002 |
1400.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
3275.214 |
2386.970 |
1724.700 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
4675.216 |
3786.972 |
3124.700 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
480.000 |
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2] Unsecured Loans |
53.851 |
42.946 |
35.200 |
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TOTAL BORROWING |
53.851 |
42.946 |
515.200 |
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DEFERRED TAX LIABILITIES |
301.699 |
352.150 |
0.000 |
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TOTAL |
5030.766 |
4182.068 |
3639.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3634.418 |
3654.504 |
3436.300 |
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Capital work-in-progress |
309.910 |
299.082 |
310.300 |
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INVESTMENT |
1276.406 |
425.141 |
609.800 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
208.322
|
184.042 |
180.500 |
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Sundry Debtors |
188.248
|
189.705 |
108.300 |
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Cash & Bank Balances |
404.477
|
110.350 |
67.700 |
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Other Current Assets |
8.402
|
14.291 |
0.000 |
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Loans & Advances |
251.118
|
290.751 |
1167.400 |
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Total
Current Assets |
1060.567
|
789.139 |
1523.900 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
746.845
|
578.453 |
957.000 |
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Provisions |
503.690
|
407.345 |
1283.400 |
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Total
Current Liabilities |
1250.535
|
985.798 |
2240.400 |
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Net Current Assets |
[189.968]
|
[196.659] |
[716.500] |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
5030.766 |
4182.068 |
3639.900 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
6141.005 |
5208.791 |
5282.300 |
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Other Income |
101.992 |
52.812 |
77.900 |
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Total Income |
6242.997 |
5261.603 |
5360.200 |
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Profit/(Loss) Before Tax |
2055.624 |
1601.137 |
1411.400 |
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Provision for Taxation |
676.000 |
539.762 |
484.500 |
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Profit/(Loss) After Tax |
1379.624 |
1061.375 |
926.900 |
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Earnings in Foreign Currency : |
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Sale of tender documents |
0.914 |
Nil |
NA |
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Imports : |
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Stores & Spares |
46.981 |
16.546 |
NA |
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Capital Goods |
143.578 |
61.984 |
NA |
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Total Imports |
190.559 |
78.530 |
NA |
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Expenditures : |
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(Increase)/Decrease
in inventories |
(0.342) |
[0.525] |
[0.800] |
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Cost of Natural
Gas Purchased |
2677.472 |
2254.724 |
1893.700 |
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Operating and
Other Expenses |
903.850 |
811.777 |
1540.800 |
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Depreciation |
598.194 |
565.238 |
480.300 |
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Finance Charges |
8.198 |
27.000 |
34.800 |
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Total Expenditure |
4187.372 |
3658.214 |
3948.800 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales
Turnover |
1617.500 |
1741.000 |
1827.300 |
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Other
Income |
40.000 |
47.400 |
58.000 |
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Total
Income |
1657.500 |
1788.400 |
1885.300 |
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Total
Expenditure |
930.500 |
990.900 |
1046.900 |
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Operating
Profit |
727.000 |
797.500 |
838.400 |
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Interest |
0.000 |
0.000 |
0.000 |
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Gross
Profit |
727.000 |
797.500 |
838.400 |
|
Depreciation |
155.600 |
158.200 |
160.800 |
|
Tax |
206.400 |
210.800 |
227.400 |
|
Reported
PAT |
384.200 |
428.500 |
450.200 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
0.01 |
0.08 |
0.20 |
|
Long
Term Debt-Equity Ratio |
0.01 |
0.08 |
0.20 |
|
Current
Ratio |
0.84 |
0.75 |
0.66 |
|
TURNOVER
RATIOS |
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Fixed
Assets |
1.22 |
1.18 |
1.17 |
|
Inventory |
35.84 |
33.18 |
35.18 |
|
Debtors |
37.78 |
40.91 |
49.51 |
|
Interest
Cover Ratio |
251.68 |
60.30 |
41.56 |
|
Operating
Profit Margin(%) |
37.29 |
35.98 |
36.47 |
|
Profit
Before Interest And Tax Margin(%) |
28.91 |
26.71 |
27.38 |
|
Cash
Profit Margin(%) |
27.71 |
26.68 |
26.64 |
|
Adjusted
Net Profit Margin(%) |
19.33 |
17.41 |
17.55 |
|
Return
On Capital Employed(%) |
48.23 |
43.59 |
42.67 |
|
Return
On Net Worth(%) |
32.61 |
30.71 |
32.86 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Indraprastha Gas Limited (IGL) is a joint venture of GAIL
(India) Limited, Bharat Petroleum Corporation Limited and the Government of the
National Capital Territory of Delhi.
IGL was incorporated to implement the Compressed Natural Gas (CNG) expansion
programme and the Piped Natural Gas (PNG) project for varied applications in
the domestic and commercial sector. IGL started its operations in February,1999
by taking over and executing Delhi City Gas Distribution Project in Delhi from
GAIL(India) Limited The project took shape with setting up of 9 CNG stations,
catering to approximately 1500 cars in Delhi.
On the PNG front, the Delhi City Gas Distribution Project aimed at providing
natural gas through piped network to the national capital. Under this project,
provisions were made, network laid and operations carried out to provide the
city with PNG.
For the purpose of CNG expansion in and around Delhi the company carved out
Rs.1473 million for the financial year 2003-04. It has also planned a capex of
Rs.360 million in the next financial year to provide PNG connections to
domestic and small commercial customers. It has also commissioned 23 Kms of 12'
Dia Steel pipeline from Dhaula Kuan to GT Karnal by-pass in 2002-03.
During 2004-05, the company has increased its CNG Stations from 120 to 134 Nos.
Further an additional 10 KMS of 4 inch Dia. Steel pipeline was laid and
commissioned to convert 9 CNG stations online. In the PNG Segment the company
has extened its piped natural gas distribution infrastructure to the new areas
in Delhi, which include Patparganj, Mayur Cihar Phase I, Andrews Ganj
Extension, Som Vihar, Mayfair Garden and Rohini (Sectors 9,13 & 14).
Further the company planned to extend its PNG network to Kidwai Nagar, Andrews
Ganj, Laxmi Bai Nagar, Netaji Nagar, R.K Puram (Sectors 8, 12 & 13),
Chanakya Puri, Asiad Village, HUDCO, Kali Bari/BKS Marg, Lodhi Colony,
Vasundhara Enclave, Mayur Vihar Phase II, Rohini(Sector 15), Vikas Puri,
Paschim Vihar and Pitam Pura during 2005-06.
In December 2004 the company has commissioned two CNG facilities in Nodia and
also the company has embarked upon expansion of its gas distribution network in
the National Capital Region cities.
The company is in trade terms with :
Ř Gas
Authority of India Limited
Ř Bharat
Petroleum Corporation Limited
FINANCIAL
REVIEW
The Company has been showing consistently good financial performance both in
terms of turnover and profitability. Gross turnover increased by 17% from
Rs.6096.26 million in year 2005-06 to Rs.7137.86 million in year 2006-07.
Profit After Tax also went up by 30% from Rs. 1061.37 million in 2005-06 to Rs.
1379.62 million in 2006-07.
PERFORMANCE HIGHLIGHTS
CNG BUSINESS:
The Company further augmented its CNG distribution infrastructure during the
year. The total number of CNG stations increased from 146 in March 2006 to 153
in March 2007, which included 67 mother stations, 42 online stations, 38
daughter booster stations and 6 daughter stations. The installed compression
capacity went up from 19.08 Lakh Kg/day in March 2006 to 20.18 Lakh Kg / day in
March 2007.
As a part of CNG expansion program, an approx. 6 kms of steel pipeline was laid
and commissioned in Delhi with an objective of increasing dispensing capacity
of the existing stations. Besides addition of 7 new stations, 3 existing CNG
daughter booster stations were converted to on-line for providing better
fuelling facilities to the vehicles.
The estimated number of vehicles running on CNG in Delhi as on 31st March 2007
was more than 1,50,000 including 12,000 buses and 60,000 private
vehicles,
PNG BUSINESS:
The Company has extended the piped natural gas distribution infrastructure to
the new areas in Delhi which include Paschim Vihar, Vikaspuri, Munirka (DDA),
Munirka Vihar, Munirka Enclave, Pitampura (DDA), Rohini (Sectors 15 & 18),
Moti Bagh (North West & South West), Sadiq Nagar and R. K. Puram (Sector
9).
During 2007-08, the Company plans to extend its PNG distribution network to
Dwarka, Janakpuri, Dilshad Garden, Sarita Vihar and CPWD areas of Pushp Vihar,
Aram Bagh, Bharati Nagar besides providing connections to new customers in the
existing network areas.
As on 31st March 2007, the Company has provided PNG connections to over 75,000
domestic and 300 commercial customers.
R-LNG BUSINESS:
In 2005-06, the Company had made a beginning in the industrial segment by
starting supply of Re-gasified Liquid Natural Gas (R-LNG) to industrial
consumers.
During the year 2006-07, the Company entered into an agreement with GAIL
(India) Limited to buy gas on spot basis and discussions are at advanced stages
with many potential customers to market this gas on retail basis.
FUTURE OUTLOOK
NCT OF DELHI
The Company has drawn out plans to consolidate its presence in the NCT of Delhi
by investing Rs. 617 million during the financial year 2007-08 for CNG
expansion.
CNG being an eco-friendly and economical fuel, a large number of private car
manufacturers are introducing their CNG variants. In the coming years, the
Company expects a large-scale conversion of private cars into CNG mode, which
will give impetus to its CNG business.
In view of forthcoming Commonwealth Games in 2010, a large number of high
capacity buses and Radio Taxis running on CNG are expected to be added to the
public transport fleet in the Capital for the convenience of visitors.
The commercial runs of DEMU's on mix of diesel and CNG have been successful and
Northern Railway has already approved the project to run 100 DEMU's on a mix of
diesel and CNG.
Government of NCT of Delhi had issued a notification stating that except those
LGVs (Light Goods Vehicles) running on national permit, only the LGVs running
on clean fuel will be registered and permitted to ply in NCT of Delhi from July
1, 2006. LGV manufacturers have introduced CNG variants and are pushing the
same through finance schemes.
The Company has planned a large-scale expansion in PNG segment. A capital
expenditure of Rs. 702 million has been earmarked for PNG expansion in Delhi
during the Financial Year 2007-08 to provide additional PNG connections to over
70,000 domestic households.
MANAGEMENT
DISCUSSION AND ANALYSIS
Nature of Business
The Company is in retail gas distribution business supplying Compressed Natural
Gas (CNG) to automotive sector and Piped Natural Gas (PNG) to domestic &
commercial sectors in NCT of Delhi.
CNG, which is also known as green fuel is a safe, economical and environment
friendly fuel for automotive sector. In running cost of the vehicles, it is
about 70% cheaper than Petrol and about 40% cheaper than diesel.
PNG, the other fuel supplied by the Company is a safe, convenient and reliable
fuel for household kitchens as well as for commercial users such as hotels,
hospitals, embassies, restaurants etc.
The Company also supplies R-LNG to the industrial consumers
in NCT of Delhi.
Outlook
on Opportunities
Natural gas is emerging as preferred fuel and is considered as fuel of the
future. The Indian Gas Market is a supply constraint market. Government is
making sustained efforts to increase the availability of gas by giving thrust
to new gas discoveries, import of LNG and by laying transnational gas
pipelines.
Demand of natural gas by transport sector is catching up fast and a number of
city gas distribution companies are coming up in various parts of the country.
IGL being a pioneer and success story in establishing CNG as a fuel for
transportation sector in NCT of Delhi, look forward many opportunities in this
segment such as:
- Large scale conversion of petrol driven private vehicles to CNG mode.
- Introduction of CNG variant models by car manufacturers.
- New models of CNG Light Goods Vehicles (LGVs).
- Demand from Northern Railways for running DMUs on mix of diesel and CNG
fuel.
- Introduction of Radio Taxis and high capacity buses in view of Commonwealth
games.
Piped Natural Gas (PNG) is also emerging as a preferred kitchen fuel to replace
LPG cylinders. Considering the total number of LPG users in Delhi, there is
huge potential in the PNG segment. The Company has plans to expand its PNG
infrastructure to cover the entire Delhi in a phased manner. Besides expanding
into new areas, the Company is making its endeavour to increase customer
density in the existing areas.
Besides vast potential demand of CNG and PNG in NCT of Delhi, IGL is looking
beyond NCT of Delhi by expanding its business in NCR cities of Ghaziabad,
Greater Noida,Sonipat & Panipat in the coming years.
Outlook on Threats, Risks &
Concerns
The Company being the pioneer and having a first mover
advantage in setting up retail gas distribution network in NCT of Delhi, does
not foresee any serious threat from competition in near future.
GAIL (India) Limited is the sole supplier of natural gas to the Company and
being one of the promoters of the Company, we do not foresee any risk arising
from dispute with them over supply of natural gas. Moreover, gas purchase
agreement with GAIL assures us of priority supply in the event of stoppage or
any disruption in supply.
Another major development pertaining to gas industry is setting up of Petroleum
and Natural Gas Regulatory Board under the Petroleum & Natural Gas
Regulatory Board Act 2006. The Board has been set up to regulate the downstream
Companies of petroleum and natural gas sector with the objective of encouraging
competition in the interest of the consumers and keeping a watch over price and
services to the consumers. The Company is gearing up to meet the challenges
that may arise in a changing scenario.
The Company has set up over 150 CNG stations in various parts of Delhi to meet
the demand of transportation sector. However, with the growing demand of CNG
there is a need to add more CNG stations for which timely availability of land
from land owning agencies is a matter of concern. The Company is constantly
following up with Government Agencies for allotment of new lands and up-gradation
of existing CNG Stations to meet the demand.
Performance Review-CNG & PNG
Both CNG & PNG business have performed well during the year 2006-07.The
Company sold 452.65 million SCM of Compressed Natural Gas (CNG) to the
automotive sector and 36.57 million SCM of Piped Natural Gas (PNG) to the
domestic and commercial sectors as against 419.10 million SCM and 26.26 million
SCM of CNG and PNG respectively in the financial year 2005-06.
The Company has an expanding network of 153 stations for supply
of CNG as on March 31,2007.The estimated number of vehicles using CNG has gone
up to more than 1.50 lakhs in March 2007 and our back-end infrastructure,
compression capacity, dispensing outlets have been augmented to meet the
increasing demand. The Company has provided PNG connections to over 75,000
domestic and 300 commercial customers as on March 31, 2007.
Financial Performance
Gross turnover of Rs. 7137.86 million for the year ended March 31,2007 showed a
growth of 17% over the previous year turnover of Rs. 6096.26 million.
The profitability of the Company also improved as Profit before tax went up to
Rs. 2055.62 million from Rs. 1601.13 million in the previous year. Similarly,
Profit after tax has been Rs. 1379.62 million as compared to Rs.1061.37 million
in the previous year.
The improvement in profitability is mainly due to continued efforts of
management to augment infrastructure for growth, increased sales and cost
control measures taken by the Company.
Finance cost
The interest and finance charges for the year ended March 31, 2007 were Rs.8.20
million as against Rs. 27.00 million in the previous year.
Background
Indraprastha
Gas Limited (The Company') was incorporated on December 23, 1998 under the
Companies Act, 1956. It is listed on the Bombay Stock Exchange (BSE) and the
National Stock Exchange (NSE). The Company is a joint venture between GAIL
(India) Limited and Bharat Petroleum Corporation Limited. The Company's
business consists of sale of Compressed Natural Gas (CNG) and Piped Natural Gas
(PNG).
Contingent liabilities
Income Tax cases
In
respect of Assessment Year 200 1 -02 to Assessment Year 2004-05, the department
disallowed certain claims
made
or set offs availed by the Company. This resulted into either adjustments to
past carried forward losses aggregating Rs. 29.448 Millions or demands raised aggregating Rs. 22.788 Millions. The
Company has filed appeals against the above which are pending at various
stages.
Segment reporting:
The
Company operates in a single segment of Natural Gas Business mainly in the
National Capital Region and therefore the disclosure requirements as per
Accounting Standard 1 7 "Segment Reporting" are not applicable
to the Company.
Fixed Assets
- Leasehold
land
- Buildings
- Plant and
machinery
- Furniture,
fixtures and fittings
- Vehicles
- Electronic
data processing equipment
- Intangibles-computer
software
AS PER WEBSITE
Emergence of IGL
Incorporated in 1998, IGL took over Delhi City Gas Distribution Project in 1999 from GAIL (India) Limited (Formerly Gas Authority of India Limited ).
The project was started to lay the network for the distribution of natural gas in the National Capital Territory of Delhi to consumers in the domestic, transport, and commercial sectors. With the backing of strong promoters – GAIL (India) Limited and Bharat Petroleum Corporation Limited (BPCL) – IGL plans to provide natural gas in the entire capital region.
The two main business objectives of the company are:-
To provide safe, convenient and reliable natural gas supply to it’s customers in the domestic and commercial sectors; and
To provide a cleaner, environment-friendly alternative as auto fuel to Delhi’s residents. This will considerably bring down the alarmingly high levels of pollution.
The transport sector uses natural gas as Compressed Natural Gas (CNG) , while the domestic and commercial sectors use it as Piped Naural Gas (PNG).
Milestones Achieved
- Incorporated in 1998
- Started with 9 CNG stations & 1000 PNG consumers
- Crossed 100 stations in 2003
- Maiden dividend in FY 2002-03
- Completed 12” steel pipeline in December 2002
- IPO listing on 26th December 2003
- Two stations commissioned in Noida in December 2004
Future Outlook
IGL now focuses on conversion of private vehicles (private cars) to CNG. In this connection efforts are being made on the private vehicle front encouraging them to convert to CNG mode. IGL has been in coordinating with CNG kit suppliers, Transport Department, Automotive Research Association of India (ARAI) and Vehicle Research and Development Establishment (VRDE) to ease the process for endorsement of the same on Registration certificate of the vehicle.
The company is in the process of enhancing its compression capacity by adding new stations and also by converting the daughter and daughter booster stations to mother and online stations.
IGL is also working towards expanding its gas retail network to the other cities of National Capital Region (NCR) viz. Noida including Grearter Noida, Gurgaon and Faridabad. The Company aims to lay natural gas pipe grid in these cities to set up CNG stations and providing PNG to domestic, commercial and industrial sectors.
News
IGL reduces price of CNG to Rs.
18.90 per kg
New Delhi, March 4, 2008
Indraprastha
Gas Limited, a joint venture of GAIL (India) Limited, BPCL and Government of
NCT of Delhi, today announced reduction of CNG selling price in the capital.
The new consumer price of Rs. 18.90 per kg and has been made effective from
12:00 midnight of 3rd/4th March 2008.
The
revision in prices would result in a reduction of 30 paise/Kg in the consumer
price of CNG, decreasing from the current price of Rs. 19.20/kg. The reduction
in the price of CNG has come on account of adjustment as a result of decrease
of 2% in excise duty announced in the Union Budget.
Announcing
the reduction in retail price of CNG, Mr. Om Narayan, Managing Director,
Indraprastha Gas Limited, said, "Consumer interest is paramount in our
enterprise. Therefore, we have decided to pass on the reduction in excise duty
to our esteemed customers. IGL is a mission which will always remain focused on
serving its consumers". He added that the retail price of CNG in Delhi at
Rs 18.90 per kg is the cheapest in the country. Mr. Narayan clarified that
there would be no revision of the the price of Piped Natural Gas (PNG) being
supplied to domestic and commercial consumers at this point of time.
With
the revised price, CNG would offer over 70% savings towards the running cost
when compared to petrol driven vehicles at the current level of prices. When
compared to diesel driven vehicles, the economics in favour of CNG at revised
price would be over 40%. IGL is currently catering to over 1,50,000 CNG
vehicles in the capital, which include over 50,000 private cars.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.93 |
|
UK Pound |
1 |
Rs.79.34 |
|
Euro |
1 |
Rs.62.55 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|