Annual Report: 2021
The following is a detailed summary of the G.G. Automotive Gears Ltd. 47th Annual Report for 2020-2021.
Company Overview and Performance
G.G. Automotive Gears Ltd. is a leading Indian manufacturer of traction gears and pinions, based in Dewas, Madhya Pradesh. Established in 1974, the company has been a market leader in locomotive gears for 40 years. The company's mission is to become a world-renowned manufacturer of gears and forged components. Their vision is to achieve maximum customer satisfaction by ensuring timely supply of quality products, minimize employee turnover, retain valuable knowledge, and commit to continual improvement while safeguarding the environment and adhering to legal compliances. The company reported a total turnover of Rs. 300,623,179 for the financial year 2020-21.
Board of Directors and Key Personnel
The board consists of:
The auditors are M/S. Mukesh & Associates, Chartered Accountants, Mumbai, and the Secretarial Auditors are HS Associates, Company Secretaries, Mumbai. Union Bank of India serves as the banker, and Purva Sharegistry (India) Pvt. Ltd is the Share Transfer Agent.
Chairman's Message and Future Outlook
Chairman Kennedy Ram Gajra acknowledged the challenges posed by the COVID-19 pandemic but expressed confidence in GGAG's ability to achieve similar growth levels in the coming financial year. The company aims to maintain its dominant presence in the Indian Railways and explore newer markets globally, particularly in East Asia and the Americas. GGAG will also continue to invest in technology to reduce costs per component and improve customer satisfaction. The company also bagged the ‘Most Promising SME' award at the Rail Analysis' Rail & Metro Awards held in New Delhi in 2020.
47th Annual General Meeting Details
The 47th Annual General Meeting was scheduled for September 25, 2021, at 11:30 A.M. via video conferencing. The notice outlined ordinary business including adopting audited financial statements and re-appointing Kennedy Ram Gajra as a director, and special business such as re-appointing Kennedy Ram Gajra as Managing Director and Anmol Gajra as Whole-Time Director. The company provided instructions for remote e-voting, starting September 22, 2021 and ending September 24, 2021. Shareholders were able to attend the meeting through video conferencing.
Director's Report and Financial Operations
The Directors' Report highlights that the total turnover was Rs. 30,06,23,179, with a loss of Rs. 2,45,67,638. The company's efforts to develop new products for domestic and export markets continue. There has been no change in the business nature. The Company did not recommend any dividend. The equity shares of the company continue to remain under suspension but have paid the reinstatement fees of Rs. 32,40,000. Also, the company has paid the listing fees to the Stock Exchange, i.e. Bombay Stock Exchange.
Board Meetings and Committees
Six Board Meetings were held during the year. The company has an Audit, Risk and Compliance Committee, a Nomination and Remuneration Committee, and a Shareholders/Investors Grievance Committee.
Directors' Responsibility Statement
The Directors affirm responsibility for preparing the annual accounts, selecting accounting policies, maintaining adequate accounting records, and safeguarding company assets. They also confirm the existence of internal financial controls.
Corporate Governance and Compliance
The company has in place internal financial controls, a vigil mechanism, and a comprehensive risk assessment procedure. It complies with applicable Secretarial Standards. There are no employees in the Company who, if employed throughout the financial year, were in receipt of remuneration.
Remuneration and Related Party Transactions
Information on Director remuneration is provided. Mr. Kennedy Ram Gajra's proposed remuneration is Rs. 60,00,000 lacs p.a., and Mr. Anmol Gajra's is Rs. 18,00,000 lacs p.a.
Financial Performance Details
The annexures contain detailed information on:
This is a comprehensive summary that covers all key elements of the G.G. Automotive Gears Ltd. Annual Report for the fiscal year 2020-2021, while maintaining the report's overall structure and flow.
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