Annual Report: 2022
G.G. Automotive Gears Ltd. 48th Annual Report Summary (2021-2022)
Company Overview: G.G. Automotive Gears Ltd. (GGAG), established in 1974 and based in Dewas, Madhya Pradesh, India, is a leading manufacturer of traction gears and pinions. GGAG has been a market leader in locomotive gears for the past 40 years. The company's mission is to become a world-renowned manufacturer of gears and forged components. The company envisions attaining maximum customer satisfaction by ensuring timely supply of quality products, minimizing employee turnover, retaining its knowledge base, and committing to continual improvement while safeguarding the environment and adhering to legal compliances.
Board of Directors and Key Managerial Personnel: The report lists the Board of Directors and key managerial personnel, including Mr. Kennedy Ram Gajra (Chairman and Managing Director), Mr. Anmol Gajra (Whole Time Director), and Ms. Lata Narang (Company Secretary & Compliance Officer).
Annual General Meeting (AGM): The 48th Annual General Meeting of G. G. Automotive Gears Limited was held on Thursday, 25th August, 2022 at 11:30 A.M. through video conferencing. Ordinary business included receiving, considering, and adopting the audited financial statements for the year ended 31st March, 2022. Shri Anmol Ram Gajra, retiring by rotation, offered himself for reappointment. Special business included seeking authority for the Board of Directors for borrowings and creation of charge up to a revised limit of Rs. 75 crores. Due to COVID-19, physical attendance of members was dispensed with, and the AGM was held through video conferencing. E-voting was provided to members.
Chairman's Message and Performance Review: Chairman Kennedy Ram Gajra reported that GGAG delivered a good performance in FY 2021-22. The company saw a 63% YoY growth in annual revenues, reporting a total income of Rs. 47,71,04,610. He expressed confidence in achieving similar growth levels in the coming financial year, driven by the company's brand value, market presence in Indian Railways, and opportunities in the global railway market. Key initiatives included reducing costs, improving lead times, emphasizing quality control, retrofitting/refurbishing existing machines, investing in newer machines, and upgrading ERP software. The company also bagged the ‘Most Promising SME' award at the Rail Analysis' Rail & Metro Awards in 2020.
Director's Report and Financial Results: The Director's Report states that the company reported a total turnover of Rs. 47,50,84,205 in FY 2021-22. Profit after tax for the year was Rs. 41,57,828. There was no change in the nature of the company's business. The company aims to maintain its dominant presence in the Indian Railways and explore new markets globally.
Key Updates and Compliance:
Audit and Compliance Matters: M/s. Mukesh & Associates are the Statutory Auditors. M/s. HSPN & Associates LLP are the Secretarial Auditors. The Secretarial Audit Report noted a few observations, including not having 100% of the Promoters Shareholding in Demat Mode and the company has not maintained structural database as per SEBI Circular SEBI/HO/CFD/DCR1/CIR/P/2018/8. The explanations for these observations are provided, with the directors commenting that the same are under process or under implementation.
Other Disclosures: The company does not have any Employee Stock Option Scheme. The company has adequate internal financial Controls with reference to financial statements. The company complied with the provision of Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013.
Financial Statements Analysis:
The report includes key financial statements such as the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement. These statements provide detailed information about the company's assets, liabilities, equity, revenue, expenses, profits, and cash flows. Key ratios are also provided including debtor turnover ratio (5.66), inventory turnover ratio (2.95) interest coverage ratio (1.17) .
Annexures: The report includes several annexures providing additional details on various aspects of the company's operations, including:
Risk Management:
The Company's risk management includes operational risk, competition risks, human resources and industrial relations risks, financial risks and liquidity risk.
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