Switching Technologies Gunther Ltd Company Summary

Switching Technologies Gunther Limited (STGL) was incorporated on April 27, 1988 and has been promoted by M N Kannan. The Company is into the manufacturing and sale of Electronic components Reed Switches, Proximity Sensors, Ball Switches, etc. The reed switches is one of the unique kind of switches.

In this regard the specialist machineries like automatic sealing machines called as Badalex and semi-automatic Sealing machines, Bihler Press, automatic and manual Plating line besides ancillary equipments are used in various process departments. Switching Technologies Gunther Limited is a Subsidiary of M/s Gunther America Inc which holds 61.22% of Equity shares in the Company.The Company manufactures and exports hi-tech reed switches which find wide applications in the aircraft industry, industrial control equipment, automobiles and power industry, at its unit in the Madras Export Processing Zone (MEPZ). Its products are exported to the European markets and have received good responses from them.

The company has a unit in the Madras Export Processing Zone (MEPZ), manufacturing reed switches used in the automobile, telecommunication, industrial control and aircraft industries.During 1996-97, it has commenced commercial production of new switch types like Miniature reed switches/Tilt switches/relays, which can also be used as surface mounted devices and can find application through out the automation and telecommunication industries.STGL has obtained UL/CSA recognition for its switches for the North American market. It is also awaiting ISO 9002 certification.During 1998-99, the companys net profit was reduced to 11.28 lacs because of the exchange fluctuation loss of Rs 50.64 lacs. Necessary steps are being taken to ensure that such exchange fluctuation does not affect the companys results in future.

The company also has comprehensive restructuring plans in order to improve the efficiency of the plant.In FY 2018-19, even though, Company was under severe financial crisis, it was stuck with lots of labour issues, besides being rendered sick company and having been referred to BIFR. Due to initiatives taken by the management over a period of time, the company has not only come out of clutches of BIFR but has also broken even in the financial year 2013-14 and booked profits in FY 2014-15. During the financial year 2015-16 & 2016-17, Company incurred losses again purely due to the fact that there was steep decline in sales order.

In 2017-18, Company had unfortunately posted operational Loss. Further, due to exchange fluctuation loss and depreciation loss, the Loss of the company had increased because of which your company has posted a loss of Rs 795,948/- during the FY 2017-18. Further, company had managed to keep the loss to the least by maximizing the productivity and introducing new products in the products department of the company.

The Management continue to revival of the Company as a going concern basis.