gajra bevel gears ltd share price Management discussions

(a) Industry structure and developments.

The Company was primarily engaged in one segment i.e., manufacturing of Differential Gears and other activities revolving around the same.

Owing to the Financial Sickness there is no manufacturing and business activity in the Company after 31^st October 2006.

Further, since the Company has closed down the production activities, its most of the existing marketing network has been totally disturbed and it has to take effective steps to further establish its products in the market when it would be able to resume the production activities.

(b) Opportunities and Threats.

As India readies an electric vehicle (EV) rush, its top components manufacturers are changing gears to capture a shares of the EV pie both in India and abroad. EV is the next big opportunity, even if it causes component obsolescence in the short term.

Component makers understand that investing in EV component technology and capacity is a matter of survival. Once the shift happens, huge numbers of current components will become obsolete. The major threats on the company can be Outdated operating models Balancing the demand of technology and Govt.

(c) Segment wise or product-wise performance

Company has only one segment i.e. manufacturing of Differential Gears and other activities revolving around the same and the financial performance of the product is being incorporated in the Director s Report section.

(d) Outlook

Companies in the global Automotive Gears market are enhancing the intensity of the competition. They are also pursuing adoptions of the latest technology, effective manufacturing techniques, research activities, product developments, and innovation in order to set substantial challenges in the Automotive Gears industry and deliver upgraded products to their customers. They also perform mergers, ventures, partnerships, amalgamations as well as promotional activities and brand developments to expand their business area.

(e) Risks and concerns.

As the Company s plants is closed down due to non-availability of working capital, and presently the Company is having target to come out with the situation. In the present scenario, it is very difficult as well as risky for the management of the company to re-establish and compete with the existing players in the market. Moreover, in the changing design and technology in the automobile sectors, the company may need to modernize its plant with the huge investment. Further that apart from the normal risk, demand-supply conditions, raw material prices, changes in government regulations, tax regimes, and economic developments within the country and globally may have direct or indirect impact on the operations of the Company.

(f) Discussion on financial performance with respect to operational performance.

The company is facing severe financial crunch, in view of the heavy financial losses suffered by the Company in previous years, it is facing liquidity crunch and the working of the company has been badly affected and the manufacturing operations were closed down due to non-availability of the adequate working capital. Your Company has obtained unsecured loans of Rs. 2870.17 Lakhs from the strategic investors, and from these funds it has settled the secured loan liabilities of the State Bank of India, IDBI, MPSISC, etc. Your directors place on record their sincere thanks to the lenders for their confidence in the management of the company. The Company is obliged to repay the loans and/or issue equity shares to the strategic investors.

(g) Material developments in Human Resources / Industrial Relations front, including number of people employed.

Since the Company is not having manufacturing activities and it is a sick company, the Company has no staff as such except the officers as required to comply with the provisions of the Companies Act, 2013 as well as SEBI (LODR), Regulations 2015, like Company Secretary, Chief Financial Officer, and CEO/MD, etc.

(h) Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations there for, including:

Key Ratio	2018-19	2017-18	Variance	Comments for Variation in ratio above 25%
Debtors Turnover Ratio	0	0	0	-
Inventory Turnover Ratio	0	0	0	-
Interest Coverage Ratio	0	0	0	-
Current Ratio	1.60	1.62	-1.23	-
Debt Equity Ratio	-1.02	-1.03	0.97%	-
Operating Profit Margin (%)	0	-5.31	100%	Since, the company is not having any Operating Profit due to which the ratio becomes zero
Net Profit Margin (%)	0	0	0	-
Return on networth (Any Change)	(0.39%)	(0.40%)	(0.01%)	Since, the company is not having any manufacturing activity due to which the return on networth is on negative side.

Note: In calculations of the aforesaid ratios, the adjustments for accounting treatments given to comply with the requirements for IND-AS have not be considered.

CAUTIONARY STATEMENT

Statements in this "Management Discussion & Analysis" which seek to describe the Companys objectives, projections, estimates, expectations or predictions may be considered to be "forward looking statements" within the meaning of applicable securities laws or regulations.

Part C,D & E of Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 are not applicable since the company was having paid up equity share capital not exceeding rupees ten crores and net worth not exceeding rupees twenty five Crore, as on the last day of the previous financial year and the company has obtained exemption for the same by filing necessary disclosure on BSE.

ACKNOWLEDGEMENTS

Your directors would like to express their grateful appreciation for assistance and cooperation received from Members of the Company for their confidence and support to the management in the adverse financial conditions and hope with their continuing and active support.

	For and on behalf of the Board
	Ranveer Singh
Place: Dewas	Chairman & Managing Director
Date: 8th August, 2019	DIN: 01356634