I. INDUSTRY STRUCTURE & DEVELOPMENTS:

The financial year commenced with huge disruptions caused by Covid19 which turned into a raging pandemic as the year progressed. The Company had also to contend with challenges in the supply chain arising from restrictions on mobility and frequent lockdowns that were announced from time to time. The year under review also witnessed a sharp and sustained surge in commodity prices with some metal prices hitting all time highs. This contributed to pressure on margins as prices of steel and alloys have a significant bearing on the profitability of the Company

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 wide presence across the globe helped deliver a strong performance in an extremely difficult economic environment.

II. OUTLOOK, OPPORTUNITIES & THREATS

Threats:

The Country is in the grip of a second wave of Covid 19 with catastrophic impact all around triggering a fresh and serious set of measures to contain its spread. The Company has been adapting to ever changing needs prioritizing health and safety while delivering on its commitments to customers. The Company continues to follow applicable guidelines on safety protocols as directed by the Government and also internal guidelines on health and safety.

We continue to see threats arising from excess capacities in the market and competition from global players pursuing growth in an anemic environment. Additionally, volatilities in customer segments and any economy linked headwinds pose risks as well.

Opportunities:

The COVID-19 pandemic has affected worldwide and all the industries are having the strain due to the effect of the same. However the governments have taken a lot of steps in improving the situation. In India, the government has put in lots of efforts in promoting the manufacturing sector with the Make in India and Atmanirbhar Bharat schemes and also announcing special focus on MSMEs with special schemes. This has helped the manufacturing industries a lot to improve the situation.

The process of welding is a precise, reliable, cost-effective and a highly technical method for joining materials in manufacturing industries. Actually, no other technique is so widely used by manufacturers in India to join metals and alloys efficiently to add value to their products. Most objects in modern society, right from buildings and bridges, to vehicles and medical devices, cannot be made without the use of welding. At present, welding is used in a wide variety of materials and products, with the help of advanced technologies as lasers and plasma arcs. The future of welding holds immense promise as methods are devised for joining dissimilar and non-metallic materials, and for creating products of innovative shapes and designs.

III. FINANCIAL PERFORMANCE AND OPERATIONAL PERFORMANCE:

The companys revenue saw a decline from Rs. 272 Crores in the financial year 2019-20 to Rs. 252 Crores in the financial year 2020-21. However, other expenses of the Company along with cost of material consumed along with finance cost has reduced significantly.

The Company is 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. The Company saw a rise in profit in the year under review of about Rs. 2.85 Crores.

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. 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: 322

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 FINANCIALYEAR:

We continued to focus on cash flows and to monitor working capital closely through the year. Our spends on capital expenditure were aligned to the evolving environment. Our efforts are expected to ensure higher return on net worth. However, there has not been significant change in return on networth as compared to previous financial year.

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

For and On behalf of the Board of Directors

GEE Limited

Sd/-

Sanwarmal Agarwal

Managing Director

DIN: 01007594