GEE Ltd Management Discussions

I. INDUSTRY STRUCTURE & DEVELOPMENTS:

The Financial Year Under review witnessed the company achieve good growth in profitability.

The future of welding holds great promise, as methods are devised for joining dissimilar and non-metallic materials and for creating products of innovative shapes & designs. In the context of the above, the Company continued to maintain its position as a leading player in the domestic welding industry. The Companys geographical reach within the Country, strong financial profile & benefits derived from being part of a group which has wi de presence across the globe helped deliver a strong performance in an extremely difficult economic environment.

II. OUTLOOK, OPPORTUNITIES & THREATS Threats:

- While steel output prices turned soft, inputs continued to be costlier for domestic production. There are likely to be pressure on the margins in future.

- Trade tensions between the countries have led to slow geographical growth; new markets have to be explored for capacity utilization. India and China tension has added to the scarcity of raw material and logistic problems.

Opportunities:

The Indian steel industry has a good chance to seize the opportunity as the steel mills are gearing up for an increase in demand from overseas buyers as the pandemic has choked the supplies from China. The movement at Chinese Port is blocked; supply gap will emerge in south east countries, which is a big market for China. India per Capita Steel Consumption is 77 Kg. as compared world average of 250 Kg. So, we have an opportunity gap to release. National Steel Policy 2017 states that Indias objective is to increase the per Capita Steel Consumption from 60 Kg. to 160 Kg. by 2030-31, this in turn would have 300 ton capacity. These initiatives to stimulate demand and expectations of reduction in interest rates in the medium term are factors that could help.

III. FINANCIAL PERFORMANCE AND OPERATIONAL PERFORMANCE:

The companys revenue was at approx. I NR 369.14 crores.This was due to better product mix and lower steel prices in the second half of 2023-24.

The company focused on maintaining a healthy balance sheet by reducing its debt exposure and managing operations with a reasonable working capital cycle.

The Company continuously endeavours to improve gross margins through a mix cost control, product pricing and innovation.

IV. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY.

Internal checks and controls covering operations of the Company are in place and are constantly being improved upon. An adequate system exists to safeguard companys assets through insurance on reinstatement basis and maintenance of proper records. The company has well defined procedures to execute financial transactions

V. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES INCLUDING NUMBER OF PEOPLE EMPLOYED.

Your Company continued to have healthy employee relation in all of its establishments throughout the year. Need based training and programmes were organised for employees that include functional/ technical skills as also soft skills Number of permanent employees: 342

VI. DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS:

There has been no significant change in key financial ratios of the Company

VII. DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR:

Due to stiff economic conditions and also due to the onset of the Corona virus in the month of March, there has been fall in the return on networth. However change is not significantly affecting the Company. The Board will endeavour to achieve its targets, in tandem with creating a safe, healthy and secure working environment.

Disclaimer: The information and opinion expressed in this section of the Annual Report may contain certain forward-looking statements, which the Management believes are true to the best of its knowledge, at the time of its preparation. The Company and the Management shall not be held liable for any loss, which may arise, as a result of any action taken on the basis of the information contained herein.

Managing Director

DIN: 01007594.