Annual Report - 2005-06 - GAIL (India)
Annual Report - 2005-06 - GAIL (India)
Annual Report - 2005-06 - GAIL (India)
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Review of the Accounts of <strong>GAIL</strong> (<strong>India</strong>) Limited, New Delhi, for<br />
the Year Ended 31st March, 20<strong>06</strong> by the Comptroller & Auditor<br />
General of <strong>India</strong><br />
(This Review of Accounts has been prepared without taking into account comments under Section 619(4) of the Companies Act,1956 and qualifications<br />
contained in the Statutory Auditor’s <strong>Report</strong> )<br />
1. FINANCIAL POSITION<br />
The table below summarises the financial position of the Company under broad headings for the last three years :<br />
(Rs.in Crores)<br />
2003-04 2004-05 <strong>2005</strong>-<strong>06</strong><br />
Liabilities<br />
a) Paid-up Capital<br />
i) Government 484.94 484.94 484.94<br />
ii) Others 360.71 360.71 360.71<br />
b) Reserves and Surplus<br />
i) Free Reserves & Surplus 6596.91 7777.99 9125.28<br />
ii) Share Premium Account 0.26 0.26 0.26<br />
iii) Capital Reserve 2.33 2.21 2.10<br />
c) Borrowings<br />
i) From Government of <strong>India</strong> - - -<br />
ii) From Financial Institutions - - -<br />
iii) Foreign Currency Loans 61.28 34.28 19.18<br />
iv) Others 2072.20 1963.12 1897.38<br />
d) (i) Current Liabilities & Provisions 3007.82 3474.15 3752.23<br />
(ii) Provision for Gratuity 22.39 - -<br />
e) Deferred Tax Liability 1227.58 1255.23 1299.70<br />
TOTAL 13836.42 15352.89 16941.78<br />
Assets<br />
f ) Gross Block 13584.73 14222.35 14469.48<br />
g) Less: Depreciation 5441.85 6376.47 6913.52<br />
h) Net Block 8142.88 7845.88 7555.96<br />
i) Capital Work-In-Progress 814.47 309.08 615.59<br />
j) Investments / Advances for Investment 771.99 783.95 1443.35<br />
k) Current Assets,Loans and Advances 4107.08 6413.98 7326.88<br />
l) Miscellaneous Expenditure not written off - - -<br />
TOTAL 13836.42 15352.89 16941.78<br />
m) Working Capital ( k-d(i) ) 1099.26 2939.83 3574.65<br />
n) Capital Employed (h+m) 9242.14 10785.71 11130.61<br />
o) Net Worth ( a+b(i)+b(ii)-l ) 7442.82 8623.90 9971.19<br />
p) Net Worth Per Rupee of Paid-up Capital (in Rs.) 8.80 10.20 11.79<br />
The Working Capital of the Company for the years 2003-2004, 2004-<strong>2005</strong> and <strong>2005</strong>-<strong>06</strong> were (+) Rs.1099.26 Crores, (+) Rs. 2939.83 Crores and (+)Rs.3574.65<br />
Crores respectively. The working capital has increased mainly due to increase in Short term deposit.<br />
The Capital Employed has increased from Rs.10785.71 Crores in 2004-05 to Rs.11130.61 Crores in <strong>2005</strong>-<strong>06</strong> due to increase in Net Current Assets.<br />
Net Worth increased from Rs.8623.90 Crores in 2004-05 to Rs.9971.19 Crores in <strong>2005</strong>-<strong>06</strong> mainly because of increase in Reserves and Surplus.<br />
2. WORKING RESULTS<br />
(Rs.in Crores)<br />
2003 - 04 2004 - 05 <strong>2005</strong> - <strong>06</strong><br />
(i) Sales (incl. LPG Transmission charges) 11295.67 12927.07 14875.49<br />
(ii) Less:Excise Duty 471.83 514.87 416.08<br />
(iii) Net Sales 10823.84 12412.20 14459.41<br />
(iv) Other /Miscellaneous Income 244.03 349.05 455.54<br />
(v) Profit/(Loss) before Tax and Prior Period 2811.83 2872.27 3351.79<br />
Adjustments<br />
(vi) Prior Period Adjustments 2.59 (0.88) (75.17)<br />
(vii) Profit/(Loss) before Tax 2814.42 2871.39 3276.62<br />
(viii) Tax Provisions 945.08 917.48 966.55<br />
(ix) Profit after Tax 1869.34 1953.91 2310.07<br />
(x) Final /Interim Dividend 676.52 676.52 845.65<br />
The sales of the Company has increased from Rs.12927.07 Crores in 2004 - 05 to Rs.14,875.49 Crores in <strong>2005</strong>-<strong>06</strong>, which is increased by 15.07%. While<br />
Profit After Tax has increased from Rs.1953.91 Crores in 2004-05 to Rs.2310.07 Crores in <strong>2005</strong>-20<strong>06</strong> which is increased by 18.23% due to higher sales &<br />
reduction in depreciation on Gas Pipeline & related facilities.<br />
Other Income has increased from Rs. 349.05 Crores in 2004-05 to Rs. 455.54 Crores in <strong>2005</strong>-<strong>06</strong> due to increase in interest income from short term<br />
deposit with banks and higher dividend Income from Investments.<br />
3. RATIO ANALYSIS<br />
Some important financial ratios on the financial health and working of the Company at the end of last three years are as follows :-<br />
(In Percentages)<br />
2003-04 2004-05 <strong>2005</strong>-<strong>06</strong><br />
A. Liquidity Ratio 136.55 184.62 195.27<br />
Current Ratio (Current Assets to Current Liabilities<br />
& Provisions but excluding Provision for Gratuity)<br />
( k / ( d(i) )<br />
B. Debt Equity Ratio 28.66 23.16 19.22<br />
Long term debt to Net Worth<br />
( c ( i to iv but excluding short term loans ) / o )<br />
C. Profitability Ratios<br />
a) Profit before Tax to<br />
i) Capital Employed 30.45 26.62 29.44<br />
ii) Net worth 37.81 33.30 32.86<br />
iii) Sales 24.92 22.21 22.03<br />
b) Profit after Tax to Equity 221.05 231.05 273.17<br />
c) Earning per Share (in Rs.) 22.11 23.11 27.32<br />
The percentage of Liquidity Ratio,which is a measure of solvency,has increased from 184.62 in 2004-05 to 195.27 in <strong>2005</strong>-<strong>06</strong> due to increase in Working<br />
Capital.<br />
The percentage of Debt Equity Ratio is showing decreasing trend. It has declined from 28.66 in 2003 - 04 to 23.16 in 2004-05 and further 19.22 in<br />
<strong>2005</strong>-<strong>06</strong> because of repayment of borrowed funds & increase in Net worth due to higher profits.<br />
The percentage of Profit after Tax to Equity has increased from 231.05 in 2004-05 to 273.17 in <strong>2005</strong>-<strong>06</strong>, which shows an increasing trend.<br />
132 Winning Momentum 133
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