Annual Report: 2023
G.G. Automotive Gears Limited Annual Report Summary:
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, holding a market leadership position in locomotive gears for the past 40 years. The company transitioned from automotive gears to traction gears as a strategic move. GGAG prides itself on its cost-effectiveness, quality, and adherence to delivery standards. The company is a self-sufficient organization, developing and manufacturing locomotive and industrial application gears and pinions, gearboxes, and forged automotive components. The company's mission is to be a world-renowned manufacturer of gears and forged components. The vision is to attain maximum customer satisfaction, minimize employee turnover, grow its knowledge base, commit to continual improvement, safeguard the environment, and adhere to legal compliances.
Financial Performance (FY 2022-23):
The company reported a total income of Rs. 77,64,81,367/-, reflecting a 61% year-over-year (YOY) growth in annual revenues. The company's total turnover was Rs. 77,27,60,927/-, with total expenditure amounting to Rs. 75,83,36,800/-. Profit after tax stood at Rs. 1,94,07,389/-. The company's equity shares are listed on BSE Limited, and the listing fees for FY 2022-23 and 2023-24 have been paid.
Future Outlook & Strategy:
GGAG expresses confidence in maintaining similar growth levels in the upcoming financial year, supported by its brand value, market presence in the Indian Railways, and opportunities in the global railway market. Diversification into markets like earth moving equipment, mining, steel, and industrial applications is intended to buffer against pandemic-related business cycle effects. The company intends to continue investing in technology to reduce component costs and improve customer satisfaction. GGAG aims to maintain its dominant presence in the Indian Railways and expand into European and American markets. R&D projects are underway to complement growth pursuits and strengthen diversified business verticals.
Key Initiatives:
Several initiatives were undertaken during the financial year to reduce costs per component, improve lead times, and maintain quality control. These included retrofitting and refurbishing existing machines, investing in newer machines, implementing standard operating procedures, reducing consumable costs via engineering and procurement efforts, and upgrading the ERP software.
Board of Directors and Key Managerial Personnel:
Annual General Meeting:
The 49th Annual General Meeting (AGM) will be held on Monday, 21st August, 2023 at 11:00 AM via video conferencing. Kennedy Ram Gajra will retire by rotation and offers himself for re-appointment. Also, Mr. Anmol Gajra is proposed for re-appointment as Whole-Time Director. E-voting facility has been arranged for the members. The register of members and share transfer books will be closed from Monday, 14th August, 2023 to Monday, 21st August, 2023.
Corporate Governance and Compliance:
The company confirms adherence to applicable accounting standards, maintenance of proper accounting records, and implementation of internal financial controls. The Directors have confirmed compliance with applicable Secretarial Standards. The Company has established a vigil mechanism for Directors and employees to report genuine concerns. The company has complied with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013.
Auditors:
M/s Mukesh & Associates are the Statutory Auditors. M/s. HSPN & Associates LLP are the Secretarial Auditors. Mr. Prakash Naringrekar of HSPN & Associates LLP has been appointed as the Scrutinizer for the e-voting process.
Financial Results:
| Particulars | 31.03.2023 (INR) | 31.03.2022 (INR) | | ------------------------------------------------ | --------------- | --------------- | | Earnings before Interest, Depreciation and Tax | 8,02,73,931 | 5,98,83,926 | | Profit before tax | 1,81,44,567 | 41,71,949 | | Profit after tax | 1,94,07,389 | 41,57,828 |
Director Re-appointments:
The notice includes details and justification for the re-appointment of Mr. Anmol Gajra as a Whole-time Director for three years. Shareholder approval is sought for his re-appointment and remuneration.
Key Ratios:
The annexure provides an analysis of various financial ratios, including: Debtors Turnover Ratio, Inventory Turnover Ratio, Interest coverage Ratio, Current Ratio, Debt Equity Ratio, Operating Profit Margin Ratio, Net Profit Margin Ratio, Return on Net worth.
Important Notes from Notice:
The company emphasizes its commitment to ethical standards, skill development of employees, and providing opportunities for growth within the organization. The Directors express appreciation for the support received from various stakeholders, including shareholders, employees and customers.
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