Gujarat Gas Financial Services Ltd Management Discussions.
GUJARAT GAS FINANCIAL SERVICES LIMITED
ANNUAL REPORT 2004
MANAGEMENT DISCUSSION AND ANALYSIS
DISCUSSION ON OPERATIONS:
With a view to continue the focus on day to day management of the company,
your company has re-appointed Mr. M.I. Vakharwala as the Chief Operating
Officer for a further period of two years. Mr.Vakharwala shall continue to
be responsible for the day to day management of GFSL.
Your company continues to adopt a selective and cautious approach in
financing and is focussing on domestic leasing business for gas
connections. During the year, as part of initiatives aimed at customer
satisfaction and offering innovative products, the `Fixed Cost connection
policy, Monsoon Dhamaka and a new finance scheme were launched. The
response from customers was quite encouraging resulting in the company able
to register 12,157 nos. bookings during year 2004.
The company installed 8,186 nos. of domestic and commercial natural gas
connections at a cost of Rs. 83.53 million as against 4.925 nos. done at a
cost of Rs. 49.13 million last year.
The recovery of its outstanding debts has been a focus area for the company
in year 2004. The total outstanding under the retail finance (consumer
durables and vehicle finance) was Rs. 2.83 million as on December 2003
which has come down to Rs. 0.30 million in December 2004. The overdue
outstanding has come down from Rs. 1.75 million as on December 2003 to
Rs. 1.09 million in December 2004.
During the year, the company was also able to recover Rs. 6.41 million out
of bad debts written off in previous years through One Time Settlement with
Legal cases for recovery from defaulters including those written off in
earlier years are also being pursued vigorously.
During the year, the company remained invested in bank deposits and certain
government securities. At the end of 2004, the total invested portfolio is
Rs. 69.90 million.
HEALTH, SAFETY, SECURITY & ENVIRONMENT (HSS & E):
With a view to ensure safety of its employees and assets, the HSS&E
policies are being strictly implemented and progress is monitored on a
continual basis. HSSE audits/inspections were carried out at Contractors
sites. The employees were encouraged to report hazards and near misses. The
Contractor employees of Domestic connection and riser maintenance
contractors were briefed on lessons of the fatal incidents occurred at
FINANCE AND INSURANCE:
* Your company remains a zero debt company.
* During 2004, company paid maturing deposits amounting to Rs. 0.17 million
out of the special escrow account (in compliance with RBI directions) being
maintained with State Bank of India. As on December 31, 2004, the unclaimed
deposit amount is Rs. 0.23 million of 32 depositors. The Company has been
regularly sending reminders to deposit holders about maturity of their
* The companys office assets, stocks, risks are adequately insured.
The number of employees as on December 31, 2004 was five.
In the year 2002, eight employees were retrenched, out of which two opted
for settlement. These employees raised a dispute under the Industrial
Disputes Act, 1947, which has been referred by the Labour Commissioner to
the Labour Court, Surat. The proceedings continue to be stayed in the
Labour Court, since the Gujarat High Court is yet to dispose off the
petition of Gujarat Gas Company Ltd (GGCL.) who are contesting their being
made a party to this dispute.
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