Gujarat Gas Ltd
Directors Reports
Dear Members,
Gujarat Gas Limited
Your Directors have pleasure in presenting the 11th Annual
Report and the Audited Financial Statements for the Financial Year ended on 31st
March 2023.
Financial Highlights
(Rs in Crores)
Particulars |
Standalone Financials |
Consolidated Financials |
|
12 Months ended 31/03/2023 |
12 Months ended 31/03/2022 |
12 Months ended 31/03/2023 |
12 Months ended 31/03/2022 |
Revenue from Operations |
17,306.16 |
16,787.35 |
17,306.16 |
16,787.35 |
Other income |
101.27 |
90.74 |
101.33 |
90.87 |
Total income |
17,407.43 |
16,878.09 |
17,407.49 |
16,878.22 |
Profit before interest, depreciation and tax |
2,493.26 |
2,155.14 |
2,493.32 |
2,155.27 |
Less: Interest |
40.35 |
56.82 |
40.35 |
56.82 |
Depreciation |
428.26 |
384.91 |
428.26 |
384.91 |
Profit before tax |
2,024.65 |
1,713.41 |
2,024.71 |
1,713.54 |
Share of Profit from equity accounted investee |
- |
- |
2.86 |
1.62 |
Minority Interest |
- |
- |
- |
- |
Profit/(Loss) Before Tax and share of profit of associate |
2,024.65 |
1,713.41 |
2,027.57 |
1,715.16 |
Tax expenses |
499.18 |
427.77 |
499.19 |
427.79 |
Net Profit after tax for the period |
1,525.47 |
1,285.64 |
1,528.38 |
1,287.37 |
Other Comprehensive Income (after tax) (OCI) |
|
|
|
|
- Equity Instruments through OCI |
6.22 |
2.12 |
6.22 |
2.12 |
- Remeasurements of post-employment benefit obligation, net
of tax |
2.30 |
0.57 |
2.30 |
0.57 |
- Share of Other comprehensive income of equity accounted
investee |
- |
- |
(0.16) |
(0.01) |
Total Comprehensive Income |
1,533.99 |
1,288.33 |
1,536.74 |
1,290.05 |
RETAIN EARNINGS: |
|
|
|
|
Profit carried to retained earnings |
1,525.47 |
1,285.64 |
1,528.38 |
1,287.37 |
Other Comprehensive Income carried to retained earnings |
2.30 |
0.57 |
2.14 |
0.56 |
Add: Undistributed profit /(loss) of earlier years |
4,710.91 |
3,562.38 |
4,741.55 |
3,591.30 |
Balance available for Appropriation |
6,238.68 |
4,848.59 |
6,272.07 |
4,879.23 |
Less: Appropriations: |
|
|
|
|
Distribution of ESOP trust fund |
- |
- |
(1.04) |
- |
Equity dividend |
(137.68) |
(137.68) |
(137.68) |
(137.68) |
Surplus / (Deficit) retained |
6,101.00 |
4,710.91 |
6,133.35 |
4,741.55 |
Earnings per Share (Face value of Rs. 2 each) (Basic &
Diluted) |
22.16 |
18.68 |
22.20 |
18.70 |
PERFORMANCE HIGHLIGHTS
1. Gujarat Gas adjudged as the 'Star PSU of the Year' at The Economic
Times Energy Leadership Awards 2022.
2. GGL credit rating upgraded to AAA/Stable (highest rating level) from
AA+/Positive by CRISIL and India Ratings & Research.
3. Prepayment of long-term loan of ' 447 crores during FY 2023 making
GGL a debt free company.
4. Highest ever Profit after Tax of ' 1,525.47 Crores (19% higher than
FY '22)
5. Highest ever CNG volumes at average 2.43 mmscmd in FY2023 on the
back of growth in station infrastructure (22% higher than 1.99 mmscmd in FY 2022).
6. Highest ever 1.79 Lakh Domestic customers commissioned in FY 2023
(16% higher than 1.54 Lakh in FY 2022).
7. 102 new CNG stations in FY 2023; crossing milestone of 800 CNG
stations.
8. Government of Gujarat has reduced VAT on Dom & CNG consumers to
5% from 15%, improving competitiveness vis-a-vis alternate fuel.
9. GOI has revised APM Gas pricing methodology; at 10% of the Indian
Crude Basket Price subject to a floor of $4 and a ceiling of $6.5/mmbtu w.e.f. 8th April,
2023. From FY 2025-26, floor and ceiling to be increased by $0.25/mmbtu each year. Cost
reduced from $8.57 to $6.50/mmbtu increasing competitiveness of Gas to alternate fuels at
reduced prices.
10. Managed challenging scenario of unprecedented surge in spot prices
by balancing the volumes and limiting price increases via continued engagement with
customers / stakeholders.
11. Implemented India's 1st Pilot Project for Green Hydrogen
blending with PNG Domestic supplies at NTPC Kawas Township, GGL Surat & Hazira GA have
successfully completed taking in 5% blended Hydrogen in DPNG network with supply to 150+
numbers of households.
12. Electrical Vehicles (EV) charging facility commissioned at company
owned CNG station at Kevadia as a pilot project with Tata Power.
DIVIDEND
Your Directors recommend for consideration of the shareholders at the
11th Annual General Meeting, the Dividend of ' 6.65/- per fully paid up equity
share of ' 2/- each (332.5%) on 68,83,90,125 equity shares for the Financial Year 2022-23.
This is 232.5% higher than FY '22 wherein dividend payout was ' 2 per share. During this
year, Dividend Distribution Policy has been amended by the Board to include Government
Guidelines as one of the factors for making dividend recommendation and the same has been
considered for recommending proposed dividend for the Financial Year 2022-23. The weblink
for Dividend Distribution Policy is available at
https://www.guiaratgas.com/resources/downloads/dividend-distribution-policv-w-e-f-10th-mav-2023.pdf
SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES
Your Company does not have any subsidiary and joint venture. Guj Info
Petro Limited is the Associate of your Company and the statement containing salient
features of financial statements of Guj Info Petro Limited under first proviso to sub
section (3) of section 129 in form AOC-1 is attached at Annexure-5.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements of the Company represents
consolidation of Financial Statements of Guj Info Petro Limited (GIPL), the associate
company and Gujarat Gas Limited Employees Welfare Stock Option Trust (ESOP Trust), in
accordance with IND AS. The Audited Consolidated Financial Statements are provided in the
Annual Report.
DEPOSITS
During the year under review, your Company has not accepted deposits
from the public falling within the ambit of Section 73 of the Companies Act, 2013 read
with Companies (Acceptance of Deposits) Rules, 2014.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
The details of Loans, Guarantees, Securities and Investments, if any
covered under the provisions of Section 186 of the Companies Act, 2013 are given in the
Notes to the Financial Statements.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
All Related Party Transactions that were entered into during the
financial year were on an arm's length basis and were in the ordinary course of business.
A statement giving details of all Related Party Transactions is placed before the Audit
Committee for approval/ ratification on a quarterly basis, as the case may be. The policy
on materiality of related party transactions and dealing with related party transactions
as approved by the Board is uploaded on the Company's Website. None of the Directors has
any pecuniary relationships or transactions vis-a-vis the Company. The particulars of
contracts or arrangements with Related Parties referred to in Section 188 (1) of the
Companies Act, 2013, as prescribed in Form AOC - 2 of the Companies (Accounts) Rules, 2014
is enclosed herewith as Annexure -4 to this Report.
Disclosures of transactions of the Company with person or entity
belonging to the Promoter/Promoter Group which hold(s) 10% or more shareholding in the
Company
(Rs in Crores)
Name of Related Party |
Relationship |
Nature of Transactions & Balances |
For Year ended 31st March 2023 |
For Year ended 31st March 2022 |
Gujarat State Petronet Limited - GSPL |
Holding Company |
Gas Transmission Expense |
451.68 |
542.13 |
|
|
Purchase of Natural Gas |
- |
2.23 |
|
|
Right of Way Expense (ROW) |
0.52 |
0.10 |
|
|
Connectivity Charges |
1.69 |
- |
|
|
Business Transfer- CGD Business of Amritsar & Bhatinda
from GSPL to GGL |
- |
153.86 |
|
|
Reimbursement of Expenses |
0.34 |
0.28 |
|
|
Dividend Paid |
74.57 |
74.57 |
|
|
Rent Expense |
2.85 |
2.27 |
|
|
Recharge of Salary - Expense |
0.04 |
0.04 |
|
|
Compression Charges |
- |
2.87 |
|
|
Reimbursement of Deposit Receivable from Authorities |
0.28 |
- |
|
|
O&M Charges - Income |
0.05 |
0.04 |
|
|
Rent - Income |
0.03 |
0.03 |
|
|
Reimbursement of Expenses - Income |
0.01 |
10.01 |
|
|
Recharge of Salary - Income |
1.08 |
1.03 |
|
|
Sale of Material - Income |
- |
0.23 |
|
|
Deposit Given - Paid / (Refund) [Other than Connectivity] |
0.44 |
(0.02) |
|
|
Deposit Given - Paid / (Refund) [For Connectivity] |
12.00 |
4.00 |
|
|
Supervision Charges -Income |
- |
0.01 |
|
|
Interest on Late Payment |
- |
0.01 |
|
|
Asset Purchase |
8.05 |
- |
|
|
Balance at the period end |
|
|
|
|
Amount Receivable/(Payable) |
(23.36) |
(19.36) |
|
|
Deposits Asset / (Liability) - Net [Other than Connectivity] |
2.47 |
2.03 |
|
|
Deposit (For Connectivity) |
51.32 |
39.32 |
|
|
Bank Guarantee by GGL to GSPL |
52.92 |
52.92 |
|
|
Letter of Credit by GGL to GSPL |
0.10 |
0.10 |
All transactions amount disclosed above are inclusive of tax.
STATEMENT ON COMPLIANCES OF APPLICABLE SECRETARIAL STANDARDS
Your Directors hereby confirm that during the year, the Company has
been compliant with the applicable mandatory Secretarial Standards issued by the Institute
of Company Secretaries of India.
CORPORATE SOCIAL RESPONSIBILITY
The Company has constituted a Corporate Social Responsibility (CSR)
Committee in accordance with Section 135 of the Companies Act, 2013 read with Companies
(Corporate Social Responsibility Policy) Rules, 2014 and Companies (CSR Policy) Amendment
Rules, 2021. Pursuant to provisions of Section 135 of the Companies Act, 2013, the Company
has also formulated a Corporate Social Responsibility Policy which is available on the
website of the Company at
https://www.guiaratgas.com/resources/downloads/corporate-social-responsibilitv-policv-wef-1st-iune-2021.pdf.
The Annual Report on CSR activities as required under the Companies (Corporate Social
Responsibility Policy) Rules, 2014 and Companies (CSR Policy) Amendment Rules, 2021 is
enclosed herewith as Annexure - 2 to this Report. Further as required by Rule 8 of
Companies (Corporate Social Responsibility Policy) Rules, 2014, Executive Summary of
Impact Assessment Report for eligible CSR Project issued by Independent Agency had been
placed before the Board of Directors at its meeting held on 10th May, 2023 and is being
also attached to the Annual Report at Annexure-2-A.
BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
Appointment and Resignation of Directors
Shri Raj Kumar, IAS had been appointed as Director with effect from
21st July, 2022 and his appointment was regularized in 10th AGM held on 29th August, 2022.
Subsequently, Shri Raj Kumar, IAS, Chief Secretary, Government of Gujarat had been
appointed as Chairman with effect from 21st February, 2023.
Shri Pankaj Kumar, IAS (Retd.) has ceased to be the Director and
Chairman of the Company with effect from 1st February, 2023, upon superannuation. Your
Directors wish to place on record, appreciation for the services rendered by him as the
Chairman of the Company.
Shri Balwant Singh, IAS (Retd.) had been appointed as Independent
Director and Dr. Rekha Jain had been appointed as Independent Woman Director with effect
from 20th April, 2022 for the first tenure of 5 years. In the opinion of the Board, the
Independent Directors fulfill the conditions specified in SEBI (LODR) 2015 and are
independent of management. The Shareholders have approved appointment of Shri Balwant
Singh, IAS (Retd.) as Independent Director and Dr. Rekha Jain as Independent Woman
Director by postal ballot in July, 2022 (with majority of 99.9968% and 99.9973%,
respectively). The Board of Directors of the Company had appointed CS Manoj Hurkat, as the
Scrutinizer for conducting Postal Ballot through E-voting process.
Shri Milind Torawane, IAS ceased to be Director of the Company with
effect from 30th December, 2022 on account of his transfer. Subsequently, Shri Milind
Torawane, IAS has been appointed as Additional Director and Managing Director of your
Company with effect from 13th April, 2023. It is proposed to appoint Shri Milind Torawane,
IAS in the ensuing 11th Annual General Meeting. Shri Sanjeev Kumar, IAS has ceased to be
Managing Director with effect from 1st April, 2023 on account of his transfer and
appointment as Principal Secretary to Government, Forests & Environment Department,
Sachivalaya, Gandhinagar. Your Directors wish to place on record, appreciation for the
services rendered by him as the Managing Director of the Company.
Smt. Mamta Verma, IAS, Principal Secretary, Energy & Petrochemicals
Department (EPD), Government of Gujarat had been appointed as Additional Director with
effect from 1st May, 2023. It is proposed to appoint Smt. Mamta Verma, IAS at the ensuing
11th Annual General Meeting.
Shri. J.P. Gupta, IAS, Additional Chief Secretary, Finance Department
(FD), Government of Gujarat, had been appointed as Additional Director with effect from
9th August, 2023. It is proposed to appoint Shri. J.P. Gupta, IAS at the ensuing 11th
Annual General Meeting. Dr. Rajiv Kumar Gupta, IAS has ceased to be Director of the
Company with effect from 8th June, 2022, on account of his superannuation as Additional
Chief Secretary Industries & Mines Department, Government of Gujarat. Your Directors
wish to place on record, appreciation for the services rendered by him as Director of the
Company.
Smt. Mona Khandhar, IAS, Principal Secretary (EA) Finance Department,
Government of Gujarat had been appointed as Additional Director with effect from 20th
February, 2023 and subsequently has ceased to be Director of the Company with effect from
9th August, 2023, on account of her transfer to Panchayats, Rural Housing & Rural
Development Department, Government of Gujarat. Your Directors wish to place on record,
appreciation for the services rendered by her as Director of the Company.
Shri Raj Kumar, IAS, Chairman will retire by rotation and it is
proposed to reappoint him as the Director and Chairman of the Company in the ensuing 11th
Annual General Meeting.
A brief resume of the Directors to be appointed at the ensuing Annual
General Meeting, nature of expertise in specific functional areas and details regarding
the Companies in which the Directorship is held together with the Membership /
Chairmanship of Committees of the Board along with other statutory details will be given
in the Explanatory Statement forming part of the Notice of the 11th Annual General
Meeting.
DIRECTORS INDEPENDENCE
Pursuant to the applicable provisions of Section 149 (6) of the
Companies Act, 2013, the Independent Directors of the Company have given
confirmation/declaration to the Board that they meet with the criteria of Independence and
are Independent in terms of applicable provisions of Section 149 (6) of the Companies Act,
2013. Further, they have also given the confirmations on independence as per provisions of
Regulation 16(1)(b) and 25 (8) of the Listing Regulations.
BOARD EVALUATION
Pursuant to the provisions of the Companies Act, 2013, the performance
evaluation of the Board, Committees and individual Directors for FY 2022-23 was carried
out as per the terms and conditions of their appointment based on various parameters.
MEETINGS OF THE BOARD OF DIRECTORS
The Board meets at regular intervals to discuss and decide on Company /
business policy and strategy apart from other Board business. The Board / Committee
Meetings are pre-scheduled to enable the Directors to plan their schedule and to ensure
meaningful participation in the Meetings. However, in case of a special and urgent
business need, approval is taken by passing resolutions through circulation to the
Directors, as permitted by law, which are noted in the subsequent Board/Committee
Meetings.
During the period from 1st April, 2022 to 31st March, 2023, 4 (Four)
Board Meetings were convened and held, the details of which are given in the Corporate
Governance Report. The intervening gap between the Meetings was within the period
prescribed under the Companies Act, 2013 and SEBI (LODR) Regulations, 2015.
AUDITORS
As your Company is a Government Company, the Statutory Auditors are
appointed by the Comptroller & Auditor General of India (C&AG). Accordingly, the
C&AG had appointed M/s. Manubhai & Shah LLP, Chartered Accountants as the
Statutory Auditors of the Company for the Financial Year 2022-23. Auditors' Report for FY
2022-23 of M/s. Manubhai & Shah LLP, Chartered Accountants are self-explanatory in
nature and form part of financial statements of the Company.
C&AG has carried out supplementary audit of the Financial
Statements of your Company for the Financial Year 2022-23 pursuant to provisions of
Section 143 (6) (a) of the Companies Act, 2013. The C&AG has issued Nil Comment Report
on Financial Statements of the Company for the FY 2022-23 which forms part of financial
statements of the Company.
ANNUAL ACCOUNTS
The Audit Committee at its Meeting held on 10th May, 2023, approved the
Financial Statements for the Financial Year ended on 31st March, 2023 and recommended the
same for approval of the Board. The same have been subsequently approved by the Board of
Directors at its meeting held on 10th May, 2023.
SECRETARIAL AUDITOR
Pursuant to the provisions of Section 204 of the Companies Act, 2013
and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the
Board of Directors of the Company had appointed M/s. Dhawal Chavda & Associates,
Practicing Company Secretaries to conduct the Secretarial Audit of the Company for the
Financial Year 2022-23. The Report of Secretarial Auditor on Company's Secretarial Audit
for the Financial Year 2022-23 is enclosed herewith as Annexure-3 to this Report.
The Secretarial Audit Report is self explanatory in nature.
COST AUDITOR
Your Company is required to carry out Cost Audit pursuant to Section
148 of the Companies Act, 2013, read with the Companies (Cost Records and Audit) Rules,
2014.
Your Company had appointed M/s Ashish Bhavsar & Associates, Cost
Accountants as Cost Auditors for the FY 2022-23. Accordingly, Cost Audit has been carried
out for the Financial Year 2022-23. The Cost Audit Report for FY 2022-23 will be submitted
to the Central Government in the prescribed format within stipulated time period.
As required under the Companies Act, 2013, the remuneration payable to
the Cost Auditor is required to be placed before the Members in General Meeting for their
ratification. Accordingly, resolution seeking Member's ratification for the remuneration
payable to the Cost Auditors for FY 2023-24 will be included in the Notice convening the
11th Annual General Meeting.
RISK MANAGEMENT AND INTERNAL CONTROL SYSTEM
Risk Management
The Company has a well-defined Risk Management Framework for reviewing
the major Risks and has adopted a Business Risk Management Policy. Further, pursuant to
the requirement of Regulation 21 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, the Company has constituted a Risk Management Committee
inter-alia to monitor the Risk Management Plan of the Company.
Internal Control System
The Company has a proper and adequate system of Internal Controls
commensurate with its size of operations and nature of business. These are regularly
tested and certified by Auditors. Significant audit observations of audit team and follow
up actions thereon are reported to the Audit Committee. The details about the
identification of elements of Risk and Internal Control Systems are provided in detail in
the Management Discussion & Analysis Report forming part of this Board's Report.
INTERNAL FINANCIAL CONTROLS
The Company has in place adequate internal financial controls, with
reference to financial statement. The internal financial controls have been documented in
the business processes. Such controls have been assessed during the year under review and
were operating effectively.
VIGIL MECHANISM
The Company has established a Vigil Mechanism to report genuine
concerns, details of which have been given in the Corporate Governance Report forming part
of this Boards' Report. Though there was no compliant under Vigil Mechanism, however
Company has identified fraud, summary of which is captured below:
There were gas Pilferage and manipulation of metering data identified
in two Industrial Units in Dadra Nagar Haveli Geographical Area (GA) in January, 2023. The
cross functional team (CFT) constituted to investigate the same concluded that contract
employee of Gujarat Gas Limited was involved in malpractice, in collusion with the
customers, which resulted in monetary loss to Company. The CFT also recommended preventive
measures for such cases which are being implemented.
HEALTH, SAFETY AND ENVIRONMENT (HSE)
Health, Safety and Environment (HSE) is a core value in GGL. GGL
believes that outstanding business performance requires outstanding HSE performance. GGL
aims to protect the health and safety of its employees, contractors & their staff,
customers and general public in our operation area, to minimize the environmental impact
associated with our business processes and to assure the integrity and safe operation of
our assets.
GGL recognizes that the protection of the health and safety of all
those involved in its operation and public along with protection of the environment is the
prime responsibility of company and its' management at every level.
GGL operations are driven by the goal of zero injuries and seek to
encourage a culture of excellence and drive forward for continual improvement in HSE
performance.
QHSE commitment & Certification
GGL ensures that all its management decisions reflect its Quality,
Health, Safety & Environment (QHSE) intentions. GGL is committed that its QHSE
management system complies with all applicable legal requirements including acts,
regulations, standards, guidelines and code of practices for Health Safety &
Environment (including directives issued by legal, statutory or regulatory bodies) and
follows best industrial practices. GGL aims to continue as an industry leader in City Gas
Distribution business through its QHSE performance. GGL has established its Quality,
Occupational Health, Safety & Environment (QHSE) management system with reference to
international standards ISO 9001:2015, ISO 14001:2015 & ISO 45001:2018 and
successfully completed its recertification audit as per mentioned ISO standards. The
certifications demonstrate sustenance and company's continued commitment to quality,
health, safety and environment management and customer satisfaction which is the key to
sustainable business performance. GGL has 160 Standard Operating Procedures and Guidelines
for seamless and safe functioning of various aspects of business. In FY 2022-23 GGL has
revised around 25 of its existing SOP & Guidelines to adapt to the changing business
dynamics, operational requirements with respect to implementation at site and to increase
the quality, safety & operational efficiency with an aim of continual improvement of
the management systems at GGL.
Projects with highest level of Safety & Risk levels at ALARP
GGL in last few years has embarked into new areas in terms of geography
with inclusion of new Geographical Areas in the states of Punjab, Haryana, Madhya Pradesh
& Rajasthan and into new business areas in terms of faster reaching customers in our
operational areas by supplying of Natural Gas using regasification of LNG, decompression
of CNG for areas where pipeline laying project may take significant time. GGL takes extra
HSE precautions for all such new areas of geography and business. Risk assessment through
safety engineering studies has been at the fore-front of all such projects where we
conduct studies like Hazard Operability (HAZOP), Quantitative Risk assessment (QRA),
Escape Muster Evacuation & Rescue Analysis (EMERA) and Hazardous Area Classification
(HAC) for all types of Gas installations at the planning stage itself and compliance to
recommendations of these studies so that risks can be mitigated. GGL assets have been
designed, constructed, commissioned, operated and maintained, such that the risks to
personnel & public / society are reduced to as low as reasonably practicable (ALARP).
GGL had in past carried out Environmental impact assessment for
pipeline projects passing through environmental/ecological sensitive areas/zones in
Palghar district & Thane Rural GA to determine the potential environmental, social
effects of the proposed project. The results of these study along with mitigation plan
were presented to authorities. GGL has received Environmental Clearance from Ministry of
Environment, Forest & Climate Change for two such projects in Palghar district &
Thane rural GA in FY 2022-23.
GGL this year also continued special focus on safety aspects at
projects especially at new Geographical areas with implementation of HSE management system
at new GA relevant to project requirement, trainings, visits & meetings by management
team members focusing on safety requirements.
HSE Compliance Assurance & Audits
GGL conducts its business in a safe and responsible manner and ensures
compliance with the all legal and regulatory requirements. Compliance assurance is
confirmed through audits / inspections with respect to all applicable PNGRB regulations
and other standards covering all geographical areas of GGL every year including this
financial year.
GGL has successfully conducted compliance audits & applicable
recertification audits with respect to below listed PNGRB regulations through PNGRB
empaneled Third Party Inspection Agency (TPIA) for Geographical Areas.
First ERDMP Certification Audits: Successfully completed for
Eight (8) new Geographical Areas - Narmada GA, Ahmedabad Rural GA, Jalore-Sirohi GA,
Ujjain-Dewas-Indore GA, Jhabua-Banswara-Ratlam-Dungarpur GA, Ferozepur-Faridkot-Sri
Muktsar Sahib GA, Hoshiarpur-Gurdaspur GA and Sirsa-Fatehabad-Mansa GA in line with PNGRB
Codes of Practices for Emergency Response and Disaster Management Plan, Regulations in FY
2022-23.
First T4S & IMS Certification Audits: Successfully
completed for Seven (7) new Geographical Areas - Narmada GA, Ahmedabad Rural GA,
Jalore-Sirohi GA, Ujjain-Dewas-Indore GA, Jhabua-Banswara-Ratlam-Dungarpur GA, Ferozepur-
Faridkot-Sri Muktsar Sahib GA and Hoshiarpur-Gurdaspur GA in line with PNGRB Technical
Standards and Specifications including Safety Standards (T4S), regulations & PNGRB
Integrity Management System (IMS), Regulations in FY 2022-23.
Periodic IMS Certification Audits: Successfully completed
for Fourteen (14) Geographical Areas - Surat Ankleshwar Bharuch GA, Hazira GA, Dahej GA,
Navsari GA, Valsad GA, Bhavnagar GA, Gandhinagar GA, Nadiad GA, Jamnagar GA, Rajkot
(including Morbi) GA, Surendranagar GA, Kutch GA, Amreli GA, Dahod GA as per the defined
periodicity of TPIA audits, in line with PNGRB Integrity Management System (IMS),
Regulations in FY 2022-23.
Periodic T4S Audit: Successfully completed for Two (2)
Geographical Areas - Amreli GA and Dahod GA as per the defined periodicity of TPIA audits,
in line with PNGRB Technical Standards and Specifications including Safety Standards
(T4S), Regulations in FY 2022-23.
No major non-compliances were observed during above mentioned audits,
most of the observations arising out of these audits are being addressed on priority
basis.
Key Safety Index
The safe delivery of projects and safe operations of assets is a
critical success factor for the company's business. GGL sets HSE targets and closely
monitors it to achieve continual improvement in QHSE performance.
GGL recognizes that leadership commitment is fundamental for continual
improvement in HSE performance. GGL management team members review HSE performance on
regular basis.
GGL is committed to protect Safety, Health and Well-being of people
working for the organization. Lost Time Injury Frequency (LTIF) is the industry standard
key indicator which is used to measure GGL's occupational safety performance.
GGL has achieved Lost Time Injury Frequency of 0.309 for the FY
2022-23.
Total man-hours of GGL in FY 2022-23 is 29.09 Million.
Mock-drills
GGL has a well-developed and certified Emergency Response and Disaster
Management Plan through PNGRB approved Third Party Inspection agency (TPIA) for each of
its operational Geographical Areas. GGL conducts mock-drills at defined intervals to check
adequacy of preparedness against various anticipated emergency scenarios across all
locations.
In FY 2022-23, GGL carried out
Level-1 Mock-drills - 112 numbers
Level-2 Mock-drills involving local emergency services/mutual
aid partners - 54 numbers
Level-3 Mock-drills including participation in the offsite mock
drills organized by District authorities - 23 numbers
GGL Lifesaver Rules & Compliances
GGL has well defined Lifesavers rules for work related to safety
critical areas such as Safe Systems of Work, Excavation-HDD-Boring, Working at Height,
Lifting, Confined Space Entry, Driving, Gas Escape Handling, Electrical, CNG Handling
& LNG Handling.
All critical activities are covered under these defined 10 lifesaver
areas which are monitored throughout the year using Lifesaver compliance / Work place
inspection checklists defined based on lifesaver rules. In FY 2022-23, GGL has achieved ~
93% compliance to lifesavers rules.
HSE Initiatives
To improve HSE performance, various HSE initiatives and programs are
implemented as part of HSE improvement plan such as Safety tours by Management, awareness
sessions with frontline workers and supervisors on various aspects of Safety, Utility
coordination, Safety awareness workshops at local schools across operational areas,
campaign activities related to lifesaver areas, Hazard hunt activities, special drives to
check compliance in defined focus areas etc. In FY 2022-23, GGL has achieved more than 97%
compliance to its HSE improvement plan.
GGL encourages participation and involvement of its employees and
contractor staff in HSE related activities through monthly HSE committee meetings, Hazard
and Near miss reporting, monthly quiz, risk assessment, work place inspections, various
campaigns and celebration of HSE events and numerous safety awareness programs.
GGL has also established a system for evaluating contractor performance
on monthly basis. Quality & HSE performance has been made an essential part of this
performance evaluation with pre-defined key indicators.
HSE Awareness & Trainings
GGL always ensures that safety training programs are conducted
periodically for employees and contractor staff. GGL also organizes various safety
awareness programs including awareness regarding Natural Gas related safety for its
customers, general public, employees, contractors and other stakeholders such as
third-party utility in FY 2022-23:
627 numbers of Natural Gas safety awareness program have been
conducted for general public, customers and other utility companies.
1970 numbers of Safety & Technical Competency Training
programs have been conducted which includes Basic Safety, Practical Fire-fighting, First
Aid Treatment, Defensive Driving, Working at height and other Technical Competency
trainings in various areas such as GI Plumbing, CNG filling, Welding, CGD O&M, LCNG
O&M etc.
1231 numbers of Safety Awareness Programs have been conducted
for employees and contractors.
GGL also educates and influences various third-party utility companies
and their contractors who undertake digging/excavation/drilling activities on or near the
underground, GGL gas pipeline network. This is done to focus on the safety risks and
environmental impact of the release of Natural gas which can occur as a result of damaging
GGL's natural gas pipelines while digging/excavation/drilling operations. The third
parties are urged to dial in to GGL to confirm the pipeline location prior to starting any
digging/excavation/drilling activities so that damage to Natural gas pipeline network can
be prevented.
Celebrating HSE Events at GGL
GGL, being a prudent organization, celebrates various HSE related
events like National Safety Week, Road Safety Week and World Environment Day.
GGL celebrated National Safety Week in March 2023. Focusing on this
year's theme "OUR AIM - ZERO HARM", below mentioned special activities were
accomplished across all locations of GGL
Display of custom National Safety Week banners and Health &
Safety Pledge ceremony at all offices & various sites involving employees and
contractor staff
Natural Gas Safety Awareness session for School / College
students
'Essay Writing Competition' on topics of HSE for employees
'Story Writing Competition' with a message on Safety for
children of employees
Contractor Engagement session at Site - NSW Awareness, Safety
pledge, Safety reporting, Hazard hunt etc.
Demonstration of PPEs and session on use of PPEs & its
importance across all GA & corporate offices
Spot quiz on Safety with employees and contractor staff
GGL celebrated Road Safety Week in January 2023. Below mentioned
activities were done across all locations of GGL
Display of custom Road Safety Week banners & Group gathering
at GGL Offices & Road Safety message to employees by Management
'Poster competition' on Road safety for children of employees
Special drive on Vehicle inspection covering CNG MCVs and LNG
Tankers
Awareness Session on Driving Safety for MCV/LNG tanker/Hired
vehicle drivers
Eye check-up camp for CNG/LNG/Hired vehicle drivers
Meeting with CNG/LNG Transport Agency owners to reinforce safety
culture and compliance requirements among drivers GGL in its contribution under the theme
Actions@75 of the government led initiative 'Azadi Ka Amrit Mahotsav' through various
initiatives/actions along with commitments to collectively create a better tomorrow by
contributing in the field of Environment Protection. GGL celebrated World Environment Day
(WED) to encourage awareness and implement actions for the protection of our environment.
Below mentioned activities were carried out across all locations of GGL
Display of custom Environment Day/ Week banners & Group
gathering at GGL Offices
Spot quiz on environment protection for GGL employees
Sapling - Distribution & Plantation across all locations of
GGL
'Poster competition' on 'Only one Earth' for children of GGL
employees
'Poster competition' on 'Azadi Ka Amrit Mahotsav' for GGL
employees focusing on GGL contribution to Environment Protection
Awareness session on Environment Social Governance system
Engagement with Contractors supervisors on Waste management
(collection, handling and disposal)
All of these activities were done with an aim to involve employees,
contractors, society at large and enhance their awareness regarding importance of Health
Safety & Environment and related best practices.
HSE Rewards & Recognition at GGL
With an intention to motivate and foster a positive HSE culture and
step-up HSE-AI compliance and performance, GGL has put in place HSE reward and recognition
scheme to acknowledge significant HSE contribution of employees and contractor staff and
to boost their confidence. Under this scheme:
HSE contributor of the month among employees and contractor
staff are identified on monthly basis at each geographical area and are rewarded during
monthly HSE committee meeting.
Monthly Best Hazard & Best Near miss carefully selected
based on quality and safety criticality and rewarded
Best HSE Performer amongst all employees in every quarter for
each operations area
Best HSE Performer amongst all employees for Financial year for
each operations area
GGL also conducted monthly online HSE Quiz based on HSE focus area to
raise awareness amongst employees across GGL & winners of this quiz result are awarded
each month.
Step up with Environmental, Social and Governance - ESG system
ESG is a system to measure the sustainability of a company or
investment in three specific categories: environmental, social and governance. With
intentions to grow & reduce costs in the long run and forge a sense of trust amongst
consumers & stakeholders, GGL has decided to step up its HSE scorecard to align with
ESG requirements. In that line, GGL Board of Directors have constituted Business
Responsibility and Sustainability Report (BRSR) Committee to oversee all activities
pertaining to GGL ESG-BRSR reporting. The Committee has responsibility to review &
approve business policies, process, practices and adoption of other necessary matters
including decision-making, risk management, target setting for material issues &
opportunities relevant to the organization. GGL has identified policies related to HSE,
Human Resources, Information Security, Customer & Community grievance redressal etc.
which have been prepared or modified in line with ESG requirement. Also additional
performance indicators have been identified to comply with ESG requirements and data has
been recorded against the same. GGL has worked towards improvising systems and process
with the resolve to implement all essential & identified leadership indicators
relevant to GGL business & operations. GGL is publishing its BRSR report for FY
2022-23 as a part of Annual Report.
MANAGEMENT DISCUSSION & ANALYSIS
The Management Discussion & Analysis is as under:
1. INDUSTRY STRUCTURE AND DEVELOPMENTS
Natural Gas is the cleanest and most efficient of the fossil fuels.
Natural Gas is used as a feedstock in several industries like fertilizers, plastics and
other commercially important organic chemicals and used as a fuel for electricity
generation, heating purpose in industrial and commercial units. Natural gas is also used
for cooking in domestic households and as a transportation fuel for vehicles. The global
energy crisis triggered by the Russian invasion of Ukraine had put gas supply security and
market stability at the center of policy interventions in 2022. During 2022 natural gas
prices reached all-time high levels in Asian and European markets amid tight market
conditions. Record high price levels were accompanied by excessive volatility and short
term price variability.
During FY 2022-23, Natural Gas consumption has declined from 64.5 BCM
(billion cubic meters) to 60.3 BCM (billion cubic meters) i.e. a decline of 6.5% as
compared to previous year. Consumption of Natural Gas (NG) was driven by the fertilizer
(33%) followed by CGD (20%), Power (14%) Refinery (7%), Petrochemicals (3%) and others
(23%).1
India's natural gas consumption has declined by nearly 6.5% during the
year as compared to the previous year as high prices squeezed gas demand for fertilizer
(down 25% y-o-y), refining (down 50% y-o-y) and the petrochemicals sector (down 65% y-o-y)
in particular. City gas demand was broadly flat with an increase of 4%, while consumption
in the power segment increased steeply by 45% and other segment (which include glass,
metal, ceramic and other small scale industries) also saw sharp increase of 95% during the
year. India's LNG imports dropped by approximately 16.5% while there was a 3.2% increase
in domestic production.
Crude Oil prices have always been at the base of all energy prices
including Natural Gas. The crude oil prices increased drastically during the 1st half of
FY 2022-23. The Crude Oil prices crossed $100/bbl in the first quarter of the Financial
Year.
2. OPPORTUNITIES AND THREATS
The Government is promoting the usages of clean and green fuel, i.e.
Piped Natural Gas ("PNG") and Compressed Natural Gas ("CNG") by
expanding the coverage of CGD network in the country. In order to promote the natural gas
usage in the country, the Government has issued guidelines for making available Domestic
Gas to the CGD entities for meeting the entire requirement of CNG for transport sector and
PNG for Domestic. However, owing to significant increase in demand for CNG and PNG
(Domestic) categories, the Domestic Gas allocated is insufficient to meet the demand. The
shortfall was being filled by sourcing gas at market rates. However, the auction
guidelines for Domestic Gas has been altered wherein the CGD's can source gas from
Domestic Gas field (viz. HPHT fields). While the above factors did lead to increase in
prices in CNG & PNG (Domestic) categories; however the impact on demand in these
categories was limited as prices of alternate fuels has also increased significantly.
Recently the Government of India has approved the Kirit Parikh
Committee Report for Natural Gas Pricing Reforms based on which the Domestic Gas Pricing
Guidelines, 2014 has been amended. Based on the amended guidelines, the new Domestic
Natural Gas Price (APM price) shall be 10% of the Indian Crude Basket Price as defined by
Petroleum Planning and Analysis Cell (PPAC) from time to time. The APM price shall be
subject to a floor and a ceiling. The initial floor and ceiling prices shall be $4/MMBTU
and $6.5/MMBTU respectively. The ceiling would be maintained for the next two years (FY
2023-24 and 2024-25) and then increased by $0.25/MMBTU each year. CGD companies, including
your Company reciprocated by reducing CNG and PNG (Domestic) prices. This policy change
shall impact CGD businesses positively by way of reduced Domestic gas purchase price
leading to higher new conversions in CNG and PNG (Domestic) category.
Similar to any other business, the Company faces challenges in the form
of stiff competition from other fuels due to accessibility and availability. The fuel also
faces threat in the form of disparity in the tax structure compared to alternate fuels as
PNG and CNG are still out of GST ambit. Notwithstanding these, your Company shall continue
to focus placing environmentally clean Natural Gas to affordable markets for sustainable
growth.
The Company has completed the Minimum Work Program (MWP) targets as
applicable viz. PNG (Domestic) connections, Pipeline Inch- km laid, Compression Capacity
and CNG Stations in the Geographical Areas of Surat-Bharuch-Ankleshwar, Valsad, UT of DNH,
Dahej, Anand, Panchmahal and Amritsar GAs.
Further, the sector regulator has also notified Unified Tariff
regulation for natural gas pipelines with a mission of "One Nation, One Grid and One
tariff". This reform will specially benefit the consumers located in the far-flung
areas where currently the additive tariff is applicable and facilitate development of gas
markets and vision of government to increase the gas utilisation in the country.
3. SALES AND MARKET PERFORMANCE
Your Company as on date has total 27 CGD licenses and operates in 44
districts across six states and one Union territory which accounts to c. 9% of total CGD
licenses and c. 6% of total area authorised by PNGRB in India and also has one
transportation pipeline license.
Your Company has an expanse of around 1,75,700 square kilometres of
licensed area under its umbrella and continues to hold the position among the largest CGD
Company in Country. Your company supplies natural gas to more than 19.28 lakh residential
consumers, over 14,390 commercial customer and has erected / commissioned 808 CNG stations
for vehicular consumers and provides clean energy solutions to over 4,360 industrial units
through its wide spread operations with more than 35,650 kilometres of Natural Gas
pipeline network.
Your company has achieved a growth of 22% and 15% in CNG and commercial
sales respectively compared to previous year. Your Company has continued its focused
efforts for developing and growing PNG (Domestic) and CNG business. Your Company has
connected more than 2,22,000 residential customers and commercialized more than 179000
residential customers, erected / commissioned 102 new CNG stations during the year.
4. OUTLOOK
The future outlook for natural gas in India depends on the growth in
demand, the evolution of the pricing regime and the pace of gas infrastructure expansion.
The demand will steadily rise with opening of the economy after the pandemic.
Your company has already adopted digitization of its critical processes
and going forward also, your company shall leverage its endeavors for more digitization
and aims to set benchmark in the CGD industry for complete E-Office, benefiting all the
stakeholders viz. consumers, vendors, suppliers and employees.
India's Natural Gas supply and demand outlook is changing. The
Government of India (GoI) wants to make India a gas-based economy by boosting domestic
production. India has set a target to raise the share of gas in its primary energy mix to
15% by 2030 from about current level of 6%. To improve the share of Natural Gas and
promote a gas-based and clean fuel economy, the GoI has adopted a systematic approach to
focus on all aspects of the gas sector viz upstream, midstream and downstream including
CGD network development.
Your Company has been continuously growing and expanding its horizon by
venturing into new geographic areas and is committed to reach every possible Natural Gas
user across its licensed expanse of around 1,75,700 square kilometres through its ever
growing pipeline network spread across 44 districts in six states and one UT. Your Company
shall continue to focus on growing the penetration in the current operating areas by
increasing the PNG connections and additional CNG stations while tapping the untapped
potential by expeditious rollout of distribution network in its operating Areas. With this
focused endeavour, your Company shall continue its efforts in providing clean fuel
solutions across all operational area to augment an energetic top-line and bottom-line in
coming years.
5. RISKS AND CONCERNS
As per EIA Short-Term Energy Outlook (STEO) April 2023 report, the
Brent crude oil spot price forecast averages $85 per barrel (b) in 2023, up $2/b from last
month's forecast. The higher price forecast reflects a forecast for less global production
in 2023 and a relatively unchanged outlook for global oil consumption. Despite of higher
price forecast, recent issues raise the potential that economic and oil demand growth will
be lower than the forecast, which has the potential to result in lower oil prices.
Based on the data represented below it can be inferred that the Brent
Crude Oil Spot average price is expected to be around $85/ bbl in 2023 and is expected to
further reduce to around $81/ bbl in 2024 which may result in lower purchase cost of spot
volumes required for meeting the shortfall volumes by your company for serving the various
customer segments.
|
2022 |
2023 |
2024 |
Avg for the Year |
|
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
2022 |
2023 |
2024 |
Brent Spot Average (dollars per barrel) |
101.17 |
113.84 |
100.53 |
88.44 |
81.04 |
86.00 |
87.00 |
86.00 |
85.00 |
82.00 |
80.00 |
78.00 |
100.94 |
85.01 |
81.21 |
INTERNAL CONTROL SYSTEM AND ADEQUACY
The Company has a proper and adequate system of Internal Controls
commensurate with its size of operations and nature of business. The Company's Internal
Control Systems are further supplemented by extensive programs of audits, i.e. Internal
Audit, Proprietary Audit by the Comptroller & Auditor General of India (C&AG) and
Statutory Audit by Statutory Auditors appointed by the C&AG. The Internal Control
System is designed to ensure that all financial and other records are reliable for
preparing financial statements and other data and for maintaining accountability of assets
and compliance with statutory requirements. The Company has mapped a number of business
processes on to SAP system, thereby leading to significantly improved controls &
transparency. Your Company also continues to invest in Information Technology to support
various business processes and automating controls.
FINANCIAL AND OPERATIONAL PERFORMANCE
The stand-alone net profit after tax (Total comprehensive income) for
the current financial year 2022-23 increased to Rs 1,533.99 Crores from Rs 1,288.33 Crores
in the previous year. The Company had a healthy net cash inflows from operations of Rs.
2,377.96 Crores during the financial year 2022-23. During the year, the Company has fully
prepaid outstanding long term loan from internal accruals and there is no outstanding loan
as on 31st March 2023.
Investments were made in extension of pipeline network to reach new
areas and in reinforcements and upgradation of existing network as required. Investments
were also made to connect residential customers and augmenting the CNG infrastructure.
Investments were also made to upgrade the IT infrastructure and integrate SAP to enhance
reliability and enable scalability. No amount has been transferred to the General Reserve
during the year.
Details of significant changes (i.e. change of 25% or more as compared
to the immediately previous financial year) in key financial ratios, along with detailed
explanations therefore, including:
Particulars |
FY 2022-2023 |
FY 2021-2022 |
Remarks |
Reason for significant changes |
Debtors Turnover |
16.47 |
18.66 |
Net Credit Sales / Average Trade Receivable |
NA |
Inventory turnover |
781.48 |
924.77 |
Cost of goods sold or sales /Average
Inventory (Natural Gas) |
NA |
Interest Coverage Ratio |
|
48.57 |
Earning for Debt Service / Interest for
borrowing [Earning for Debt Service = Net Profit after taxes + Non-cash
expenses/adjustment + Interest -Lease payments] |
Interest Coverage Ratio is improved due to
prepayments/ repayment of Borrowings during the year. There is no outstanding debt as on
31st March 2023. |
Current Ratio |
1.40 |
1.17 |
Current assets / Current liabilities net of
customer deposit |
NA |
Debt Equity |
0.00 |
0.09 |
Total Borrowing / Total Equity |
Debt Equity ratio has improved due to
prepayments/ repayment of Borrowings during the year and increase in total equity due to
current year profits. There is no outstanding debt as on 31st March 2023. |
Operating Profit Margin (%) |
14.30% |
12.76% |
Operating income / Revenue from operations |
NA |
Net Profit Margin (%) |
8.81% |
7.66% |
PAT / Revenue from operations |
NA |
Return on Net Worth |
23.83% |
25.05% |
PAT / Average net worth |
NA |
Previous year's ratios have been reclassified wherever necessary to
confirm to the current period's presentation.
HUMAN RELATIONS AND PARTICULARS OF EMPLOYEES
Your Company employed 1028 employees as on 31st March 2023. Your
Company has a focus on building capabilities and developing competencies of its employees.
The Company believes that training and development is of vital importance to create a
climate where people maximize their technical skills and inner potential which can help
the Company in capitalizing the emerging business opportunities through their involvement.
During the year, employees were sent for various training programs and seminars to enhance
their skills/knowledge. Your Company has in place an attractive policy of performance
linked incentive to encourage and reward employee performance.
There was no strike or lock-out during the year under review.
CORPORATE GOVERNANCE
The Company believes that good governance can deliver continuous good
business performance. The particulars on Corporate Governance as required under SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015, is incorporated as a
part of this Board's Report at Annexure - 1.
ANNUAL RETURN
The Annual Return of the Company in the Form MGT - 7 is available on
the website of the Company at https://www.gujaratgas.com/GGL/annual-return/
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The details about conservation of energy, technology absorption,
foreign exchange earnings and outgo is attached at Annexure - 6.
Foreign Exchange Earnings and Outgo-
The Company has incurred expenditure in Foreign Exchange to the extent
of Rs. Nil during FY 2022-23 (Previous year FY 2021-22 Rs. 0.62 Crores) and the Foreign
Exchange Earnings during FY 2022-23 were Rs. Nil (Previous year FY 2021-22 Rs. Nil).
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no significant material orders passed by the
Regulators/Courts during the year, which would impact the going concern status of the
Company.
BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
Gujarat Gas Limited is dedicated towards fostering an atmosphere of
transparency and accountability by working in partnership and empowering our stakeholders.
To protect and for the benefit of all our stakeholders, we strive to promote sustainable
development. GGL considers its responsibility towards sustainable development as an
opportunity to succeed by taking actions which are beneficial for society as a whole.
We applaud SEBI's introduction of the "Business Responsibility and
Sustainability Reporting" ("BRSR") reporting structure, which includes
comprehensive Environmental, Social, and Governance ("ESG") disclosures.
The first edition of our Business Responsibility and Sustainability
Report (BRSR) forms part of the Annual Report, in which we attempted to provide all
non-financial disclosures in accordance with clause (f) of sub-regulation (2) of
Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015. The report provides all our stakeholders with a comprehensive view and insight into
our Company's contribution to the economy, the environment and society, which can be
utilized to showcase GGL's dedication towards long-term growth. In order to meet the
expectations of our investors and other stakeholders, we are improving the transparency of
our report, as well as our strategic approaches to create value for our stakeholders while
minimizing risk in the external environment. Statement on ESG is attached at Annexure-7
of the Board's Report.
FUND RAISING BY ISSUANCE OF DEBT SECURITIES BY LARGE ENTITIES
In view of requirements of SEBI Circular bearing No
SEBI/HO/DDHS/CIR/P/2018/144 dated 26th November, 2018, disclosures made in terms of para
4.1 of the said circular forms part of Audited Annual Financial Results of the Company. No
funds have been raised by your Company during FY 2022-23.
DIRECTORS' RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the
information and explanations obtained by them, your Directors make the following
statements in terms of Section 134(3) (c) of the Companies Act, 2013:
a. that in the preparation of the annual accounts, financial statements
for the year ended 31st March, 2023, the applicable accounting standards have been
followed and no material departures have been made from the same;
b. that accounting policies have been selected and applied consistently
and judgment and estimates have been made that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the Company as at 31st March, 2023 and of
the profit of the Company for the year ended on that date;
c. that proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of the Companies Act,
2013, for safeguarding the assets of the Company and for preventing and detecting fraud
and other irregularities;
d. that the annual financial statements have been prepared on a going
concern basis;
e. that proper internal financial controls were in place and that the
financial controls were adequate and were operating effectively.
f. that systems to ensure compliance with the provisions of all
applicable laws were in place and were adequate and operating effectively.
ACKNOWLEDGEMENTS
The Directors place on record their deep appreciation to employees of
the Company at all levels for their hard work, dedication and commitment. The Directors
are extremely grateful for all the support given by the Government of Gujarat at all
levels. The Directors place on record their sincere thanks to the Promoters, Shareholders,
Suppliers, Lenders and Customers for their valuable support, trust and confidence reposed
in the Company.
|
For and on behalf of the Board of
Directors |
Date: 18 th August, 2023 |
Raj Kumar, IAS |
Place : Gandhinagar |
Chairman |