On behalf of the Board of Directors of your Company, Maharashtra Natural Gas Limited (MNGL), it is my pleasure to extend a very warm welcome to all of you, at the 10th Annual General Meeting of the Company. I would like to convey sincere gratitude to all of you to be with us on this important occasion.
The Annual Report for the year ended 31st March 2016 along with the notice of Annual General Meeting has been circulated to you. With your permission, I shall take it as read.
I am glad to inform you that your company has shown overall good performance during the financial year 2015-16. During the year your Company though registered a marginal growth in Gross turnover due to impact of slide in global prices of crude and gas but it has not impacted its bottom line. The net profit of the company increased by 48.66% from Rs. 50.58 crores to Rs. 75.20 crores. Which is indeed a remarkable achievement for the Company. The Total sales volume of your Company has increased by 13.81% from 147.32 mmscm in FY 2014-15 to 167.67 mmscm in FY 2015-16. Net worth per share has increased from `21.67 in 2014-15 to `26.79 in 2015-2016. In line with the steady financial performance during FY 2014-15 the Board of Directors has recommended a dividend of 15.03% maintaining 20% payout ratio consistently. Total dividend payout would be 24% of profit after tax including corporate dividend tax.
Gas Industry Scenario & Future Plans
The global gas industry developments are favorable to rapidly developing country like India.Natural gas has been widely acknowledged as fuel of the twenty first century. Currently, the gas sector is going through a unique and challenging phase .With its Macroeconomic growth prospects and billion plus population, India is confronted with energy security and environmental sustainability. Thus, the role of natural gas in shaping nation`s energy future assume utmost importance.
In this context MNGL is playing an essential role on the aspect of on creating infrastructure for easy availability of natural gas at an affordable price to consumers in the city of Pune and adjoining areas. The following factors would majorly impact the positive growth of MNGL in near future:
Your Company is taking all out efforts to expand its presence in other Geographical areas subject to feasibility through CGD bidding process being invited by PNGRB.
During the year your company has implemented the Online Digitization activities as listed by MoPNG like PNG connection request, Dealer Feedback & Grievance Redressal, Online Payment, E-Bill facility Service Request etc
Further for the benefit of Customers the Company had tied up with Axis Bank wherein the customers can go at any branches of Axis Bank and pay their bills through cash and Cheques.Your Company shortly will have tie up with other banks as well with Bill desk to facilitate easier payment of their bills.
Besides that your Company has taken up following customer centric initiatives during the year.
MNGL regularly conducts awareness programmes on the concept of ``Clean & green fuel `` at various housing societies and industrial houses in and around Pune city to have better penetration of CNG & PNG at the deeper pockets of Pune and adjoining areas.
Health safety & Environment
The Company conducted regular Safety Audits by fire and safety team, Hazard and near miss reporting has been implemented to take preventive actions. Third party incidents have also been controlled in this FY due to close liasioning with other diggings agencies, placing of excavation supervisors and implementation of ‘Dial before Dig’ campaign. Special CNG safety awareness drive was also launched in presence of controller of explosives Mr. Ashendra Singh and Mr. Jitendra Patil, RTO, Pune.
Corporate Social Responsibility (CSR)
In compliance with CSR policy not only Your Company had spent 2% of Average Profit of last three years towards Social Responsibility but it had had also actively participated in many programs launched by local government authorities and NGOs involving enhancements of employment and vocational skills of poor and needy people ,health care camps for auto drivers in Pune city and various environmental awareness activities like Greenathon, tree plantation etc.The endeavor of your Company to go beyond the mandatory principle of CSR and play a supporting role its environment and social upliftment of nearby community.
Before I conclude, on behalf of Board of Directors, I take this opportunity to place on record the appreciation for valuable contribution made by Shri Narendra Kumar during their tenure as Board Members. I sincerely acknowledge the support extended by Promoters (GAIL & BPCL) I also acknowledge the support provided by Indraprastha Gas Limited & MIDC. I would also like to thank Ministry of Petroleum & Natural Gas (MoPNG), Petroleum and Natural Gas Regulatory Board (PNGRB) and Government of Maharashtra for their continued co-operation. I would also place on record my appreciation to MNGL team for their commitment and hard work.
My special thanks to all the shareholders of MNGL for their confidence and trust reposed in us. I am sure with all your support the Company will continue to scale newer heights.
I S Rao