Related Party Transactions with Garware Industries Ltd. Garware IndustrieEs Ltd, and Garware Chemicals Ltd (GCL).
The promoters had a private company, Garware Industries which was later amalgamated (we don’t know in which company). They then started dealing with Garware IndustrieEs, This change happened in FY14. Further, GCL was merged with Garware IndustrieEs.
According to the management, Garware IndustrieEs holds some tech which is crucial for the manufacturing of sun control films. I have collected data since FY11 to understand the transactions between Garware Polyester and these entities. They have mentioned that processing charge is a variable cost.
According to the management, the company had a sale purchase agreement along with processing charges till FY16 which later became just processing charges.
This is what it looks like if we add the Salary and rent paid to promoters and their entities along with Donation to Family Trust.
The company has been paying very high salary to the promoters.
Changes in CFO
Garware Polyester hasn’t had a stable CFO in the company in the last 13-14 years.
Sources- All of this has been taken from the past Annual Reports. Reports till 2010 are available on the exchange. I am attaching the pdfs from 2000-2010 if someone wants to probe further.
GARWARE_POLYESTER_LTD-MARCH-2009.PDF (3.5 MB)
GARWARE_POLYESTER_LTD-MARCH-2000 (2).PDF (1.6 MB)
GARWARE_POLYESTER_LTD-MARCH-2007.PDF (902.6 KB)
GARWARE_POLYESTER_LTD-MARCH-2005.PDF (436.2 KB)
GARWARE_POLYESTER_LTD-MARCH-2008.PDF (575.1 KB)
GARWARE_POLYESTER_LTD-MARCH-2004.PDF (3.8 MB)
GARWARE_POLYESTER_LTD-MARCH-2002.PDF (4.9 MB)
GARWARE_POLYESTER_LTD-MARCH-2003.PDF (3.5 MB)
GARWARE_POLYESTER_LTD-MARCH-2006.PDF (3.7 MB)
GARWARE_POLYESTER_LTD-MARCH-2001.PDF (2.1 MB)
Here is a Google sheet that has the details on Related Party Transactions, Changes in Fixed Assets, Auditor Details, Changes in Directorship, Factories, Subsidiaries, R&D, and Promoter’s Salary over the last 20 years- Garware Polyester VP - Google Sheets
Disc: Invested at lower levels.