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I. INDUSTRY STRUCTURE & DEVELOPMENTS:

Welding keeps our world together. From cars to planes and buildings to bridges, welding keeps our economy moving. It is truly the backbone of our world. Welding is an essential component of many industries such as automotive, construction, aviation and most importantly infrastructure.

Welding is a very critical operation in any manufacturing process. It is at the core of modern technology and has evolved completely today, following the precedence that machines have gained in our lives. There has been rapid development in the welding industry and innovative methods are being added almost every day. The welding industry contributes significantly to the Indian GDP in several ways, such as welding intensive industries, auxiliary products, complementary goods, employment and user industries.

The Indian welding consumables market was valued at US$ 1022.10 Million in 2021. It is expected to grow at a CAGR of 10-11 percent over the next five years. Rapid industrialization and urbanisation, leading to an increasing demand for improved infrastructural facilities across India, are the key factors driving growth of the market.

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

Covid threw the world in an unprecedented scenario where economies across the world were struggling. The sudden outbreak of the pandemic had led to stringent implementation of lockdown regulations across the nation resulting in the temporary closure of numerous end-use industries.

As the economy opens up post the pandemic in a new format, a surge in manufacturing activity is expected to give an impetus to businesses. The manufacturing sector is poised for growth with aggressive push by the Government of India. The Make in India and Atmanirbhar Bharat initiatives are great catalysts for the same. The Indian GDP is expected to grow at 7-8% and the overall macroeconomic parameters look stable.

The Government of India aims to increase the contribution of the manufacturing sector to 25% of the GDP by FY26 vis-a-vis the current levels of 16-17%. There is a consistent effort to place India on the world map as a manufacturing hub and give global recognition to the Indian economy.

The above statistics augurs well for the welding industry as it is a direct beneficiary of this growth story, As per statistics, steel consumption has reached record high in the last financial year. Continued focus on infrastructure development has ensured major markets of welding industry -oil & gas, power, railways with continued growth. Infrastructure industry will have a multiplier effect on the Indian economy.

However, amidst all the positive indicators, inflation is going to be a cause of concern. The calendar year 2022 started on an encouraging note only to be met with turbulence with the developments arising from the conflict in Europe. Supply side chain disruption has become a key operating challenge. The global developments are bound to impact demand and profitability during the rest of the year.

III. FINANCIAL PERFORMANCE AND OPERATIONAL PERFORMANCE:

The turnover of the Company saw a remarkable rise of 28% from INR 252.58 crores in FY 20-21 to INR 323.40 crores in FY 21-22. Material consumption saw an increase on the back of rising steel prices throughout the fiscal.

Other administrative and manufacturing expenditure was kept under strict control and remained at 10% turnover levels.

Inspite of the rise in volumes and increase in working capital requirements due to overall hike in levels of raw material prices, the Company prudently managed its financial borrowings. Continued stress on improving receivables and reduction in interest rates led to bringing down finance costs marginally from 2.05% to 1.75%.

The Return on capital employed improved to 8.65% in FY 21-22. Debt serviceability ratios of Debt to EBITDA improved from 2.25 in FY 20-21 to 2.70 in FY 21-22. The Company follows a conservative approach as far as external borrowings is concerned. The company focused on maintaining a healthy balance sheet by maintaining its debt exposure and managing operations with a reasonable working capital cycle.

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: 364

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:

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