MIRA INFORM REPORT
|
Report Date : |
17.11.2006 |
IDENTIFICATION DETAILS
|
Name : |
GEE
LIMITED |
|
|
|
|
Formerly Known As : |
GENERAL ELECTRODES AND
EQUIPMENTS LIMITED |
|
|
|
|
Registered Office : |
Plot No. E-1, Road No. 7,
Wagle Industrial Estate, Thane – 400 604, Maharashtra |
|
|
|
|
Country : |
India
|
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
24.11.1960 |
|
|
|
|
Com. Reg. No.: |
11-11879 |
|
|
|
|
TAN No.: (Tax Deduction &
Collection Account No.) |
PNEG04756D |
|
|
|
|
PAN No.: (Permanent Account No.) |
AAACG2377B |
|
|
|
|
Legal Form : |
A
closely held public limited liability company |
|
|
|
|
Line of Business : |
Manufacturing of welding
electrodes |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 100000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject
is a well – established company having satisfactory track. Trade relations
are fair. Profit margin is under pressure. Payments are reported as slow but
correct. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered /Head
Offic/Factory : |
Plot
No. E-1, Road No. 7, Wagle Industrial Estate, Thane – 400 604, Maharashtra,
India. |
|
Tel. No.: |
91-22-25821277/2620/8023/0619 |
|
Fax No.: |
91-22-25828938 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Sales Office : |
v
New Delhi v
Bhopal v
Hyderabad v
Bangalore v
Kolkata v
Kochi v
Baroda v
Jharkhand v
Chennai v
Bhilai |
|
|
|
|
Branches/Regional Office
: |
Located at :- v
New Delhi v
Hyderabad, Andhra
Pradesh v
Kolkata, West Bengal v
Baroda, Gujarat v
Chennai, Tamilnadu v
Bhilai, Madhya Pradesh
v
Jamshedpur, Bihar v
Trichirapally,
Tamilnadu v
Rourkela, Orissa v
Bhopal v
Bangalore v
Kochi v
Jharkhar |
DIRECTORS
|
Name : |
Mr. R. K. Agarwal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. S. L. Agarwal |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. M. P. Dhanuka |
|
Designation : |
Executive Director
(Marketing) |
|
|
|
|
Name : |
Mr. S. M. Agarwal |
|
Designation : |
Wholetime Director |
|
|
|
|
Name : |
Mr. G. K. Saraf |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ashok Kumar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. Bhaumick |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K M Panthaki |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sujit Sen |
|
Designation : |
Director |
|
|
|
|
Name : |
A Murarka & Company |
|
Designation : |
Company Sectary |
|
Address: |
100, M. G. Road, Groun
Floor, Suit No. 27, Kokata – 700007 |
|
Tel. No.: |
91-33-22413626/5772 |
|
Fax. No.: |
91-33-22413626 |
|
E-Mail.: |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of welding
electrodes |
||||
|
|
|
||||
|
Products : |
|
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
Welding Electrodes (Running
Meters)
|
|
36576000
|
19202400 |
28314997 |
GENERAL INFORMATION
|
No. of Employees : |
210 |
|
|
|
|
Bankers : |
The
Thane Janta Sahakari Bank Limited, Thane, Maharashtra |
|
|
|
|
Banking Relations : |
Satisfactory
|
|
|
|
|
Auditors : |
Ford, Rhodes, Parks &
Company Chartered
Accountants |
|
|
|
|
Associates/Subsidiaries
: |
Anant
Business Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs. 10 each |
Rs. 10.000 millions |
Issued
|
No. of Shares |
Type |
Value |
Amount |
|
477732 |
Equity Shares |
Rs. 10 each |
Rs. 4.777 millions |
|
|
|
|
|
|
Subscribed & Paid-up Capital |
|
|
|
|
473952 |
Equity Shares |
Rs. 10 each |
Rs. 4.740 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
4.700 |
4.7000 |
4.740 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
20.300 |
13.600 |
10.433 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
25.000 |
18.300 |
15.173 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
58.000 |
44.500 |
29.543 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
TOTAL
BORROWING
|
58.000 |
44.500 |
29.543 |
|
|
DEFERRED TAX LIABILITIES |
|
|
1.316 |
|
|
|
|
|
|
|
TOTAL
|
83.000 |
62.800 |
46.032 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
29.300 |
18.900 |
17.777 |
|
Capital work-in-progress
|
14.900 |
0.000 |
0.000 |
|
|
|
|
|
|
|
INVESTMENT
|
0.100 |
0.100 |
0.442 |
|
DEFERREX TAX ASSETS
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
31.800
|
12.000
|
10.514
|
|
|
Sundry Debtors
|
29.800
|
23.800
|
26.091
|
|
|
Cash & Bank Balances
|
7.300
|
11.200
|
0.847
|
|
|
Other Current Assets
|
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances
|
8.700
|
12.100
|
2.018
|
Total Current Assets
|
77.600
|
59.100 |
39.470
|
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
33.700
|
14.300
|
11.593
|
|
|
Provisions
|
5.200
|
1.000
|
0.064
|
Total Current Liabilities
|
38.900
|
15.300 |
11.657
|
|
Net Current
Assets
|
38.700
|
43.800 |
27.813
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
83.000 |
62.800 |
46.032 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
368.200 |
253.200 |
162.101 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
11.100 |
5.600 |
1.354 |
Provision for Taxation
|
4.300 |
2.500 |
0.373 |
Profit/(Loss) After Tax
|
6.800 |
3.100 |
0.981 |
|
|
|
|
|
Export Value
|
NA |
NA |
0.016 |
|
|
|
|
|
Total Expenditure
|
351.300 |
241.900 |
160.747 |
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2006 |
|
Type |
|
|
1st
Quarter |
|
Sales Turnover |
|
|
80.800 |
|
Other Income |
|
|
0.300 |
|
Total Income |
|
|
81.100 |
|
Total Expenditure |
|
|
75.800 |
|
Operating Profit |
|
|
5.300 |
|
Interest |
|
|
1.800 |
|
Gross Profit |
|
|
3.500 |
|
Depreciation |
|
|
0.400 |
|
Tax |
|
|
1.000 |
|
Reported PAT |
|
|
2.100 |
200606 Quarter 1 –
The above results were taken on record by the Board of Directors of the Company at its meeting held on 28.07.2006.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
3.01 |
3.09 |
3.47 |
|
Long Term Debt Equity Ratio |
0.55 |
0.82 |
1.24 |
|
Current Ratio |
0.99 |
1.19 |
1.25 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
7.64 |
6.43 |
4.49 |
|
Inventory |
16.01 |
22.27 |
12.92 |
|
Debtors |
13.09 |
10.04 |
6.03 |
|
Interest Cover Ratio |
3.41 |
2.24 |
1.36 |
|
Operating Profit Margin (%) |
4.82 |
4.51 |
3.79 |
|
Profit Before Interest and Tax Margin (%) |
4.48 |
4.03 |
3.24 |
|
Cash Profit Margin (%) |
2.28 |
1.72 |
1.16 |
|
Adjusted Net Profit Margin (%) |
1.94 |
1.24 |
0.61 |
|
Return on Capital Employed (%) |
23.00 |
20.59 |
12.09 |
|
Return on Net Worth (%) |
40.00 |
25.83 |
10.05 |
LOCAL AGENCY FURTHER INFORMATION
Operations
Inspite of the adverse situation in the industry the company has made a nominal profit of Rs. 1.353 million during the year under report as compared to a profit of Rs. 0.500 million during the previous year. The sales of the company has increased from Rs. 103.400 millions to Rs. 163.500 millions. This amounts to an increase in sales by about 58%.
With the measures taken during the year it is expected that the turnover of the company would increase by further 50% in the current year 2004-05
The market environment continuous to be very competitive. Within the challenging competitive market conditions, the company is expected to give good results in the coming years.
Though the company was able to increase its sales volume, its margins were under pressure due to severe competition. The ongoing initiatives in the areas of cost reduction, increase in production, market development and quality control have enabled the company to maintain its competitive ability.
Future prospects
The company’s new marketing policy has given it substantial increase in sales and the company expects further increase in profitability also.
The company has received
approvals of the leading National and International Organisations.
v
Lloyds Register of
Shipping
v
American Bureau of
Shipping
v
Indian register of
Shipping
v
Bureau Veritas
v
Det Norske Veritas
v
Bureau of Indian
Standards
v
Indian register of
Shipping
v
Research Design and
Standard Organisation
v
M.N. Dastur and Company
Limited
v
Engineer India Limited
v
Larsen and Toubro
v
Toyo Engineering India
Limited
v
Technimont I C B Limited
v
Indian Boiler Regulation
Fixed assets
v
Land
v
Factory
v
Office building
v
Plant
v
Electrical
v
Furniture
v
Office equipment
v
Computer
v
Motorcar
Business:
Subject is a DNV certified ISO 9002 company and products manufactured under the strictest quality controls, duly tested and approved as per the stringent international quality code requirements of Lloyds, Bureau Veritas, ABS; DNV; MMD (Mercantile Marine Department); RDSO, ABB, Bharat Heavy Electricals Limited, Engineers India Limited, IOCL, Various Port Trust and Shipyards, National Thermal Power Corporation, Larsen & Toubro Limited, Defence, etc.
The
company has the complete range of welding consumables to meet various welding applications of Mild Steel,
Low Alloy-High Tensile, Hard Facing, Stainless Steel, High Alloys Steel,
Cast Iron, Non-ferrous Metals and for Cutting and Chamfering
applications. Its’ special range
includes Filler Wires for Mild Steel, Stainless
Steel, Low Alloy and Maintenance Electrodes for specialized and critical
applications as well.
The company manufactures a wide range of welding electrodes for application on general fabrication to construction of Nuclear Equipment.
As
per Website Details:
They
are popularly known to welding industry here in India and abroad as GEE
since the last three and half decades and more. Their company General
Electrodes and Equipments Limited manufactures the widest range of welding
electrodes and other consumables since 1969 with technical tie up from Messer
Griesheim GmbH of Frankfurt, West Germany. They enjoy the coveted Det Norske
Veritas accreditation as an ISO 9001:2000 company
Their plant set up is at Thane, Mumbai, India. With one-ton
capacity dry mixer and hefty extruders, which above normal industry
configuration, one is assured of volume production. In other words prompt
supply in various sizes and quantity with ISO certified quality. The reqired
support is assured off by their welding expertise and well-establised
distribution and sales channel partnerships.
Research and development plays a vital role in their
operations. Customer feed back in terms of welding challenges are taken in the
right spirit and tremendous efforts are put in by the chemist and metallurgists
to create new formulations in electrode making. Small wonder in over a
reasonable period of time GEE is able to bring out a good number of new welding
electrodes and thus build an enviable product portfolio. GEE also reaches out
to international data centers for product making intelligence and to be at par
with other welding consumables makers at a global level.
GEE does not wish to tie down the end users to GEE's own
in-house operations. In other word GEE wants to give metal fabricators global
access to welding technologies, products and services. This is achieved by
establishing a close technical and commercial tie-up with european giant, Air
Liquide, a Fortune 500 company. This conglomerate owns and operates the
triumvirate, the three best known welding companies of Europe called SAF,
OERLIKON and FRO. And to be conduit for the smooth flow of European
technology, products and services to the Indian shopfloor GEE had engaged the
best known talents with decades of experience in welding metallurgy and power
source and systems engineering. And to add to a new dimension to this operation
and as reinforcement GEE signed up with Hyundai Welding Company of Korea
which has an offer a wide range of consumables and equipments.
Profile:
General
Electrodes and Equipments Limited
better known as GEE Limited as established in 1969, in technical
alliance with Messer Griesheim Gmbh of Frankfurt, Germany for the
manufacture of Quality Welding Electrodes. GEE Limited is an ISO
9001:2000 company accredited by Det Norske Veritas.
At
GEE Limited, they manufacture an extensive range of welding electrodes
for application on General Fabrication to construction of Nuclear Equipment.
Their entire manufacturing of the Electrodes is done at Thane where they have a
1 ton dry mixer which is one of the biggest setup in the industry. Thus, GEE
Limited being one of the biggest Extruders has an edge over the other
manufacturers in the industry when it comes to reliability and consistency in
the quality of the product and bigger sizes. This is possible with the joint
effort of a dedicated team of enthusiastic professionals who deliver value
products that congregate the stringent quality code requirements of various
agencies and clients.
Product:
v
For Mild Steed
v
Low Hydrogen
v
Cast Iron
v
Non Ferrous
v
Cutting and Chamfering
v
Hard facing
v
High Tensile
v
Stainless Steel
v
Filler Wires
v
Tubular
v
Maintenance
ITES:
Rapidly
changing and increasingly complex business forces are bringing fundamental
shifts in management and organization. The steady advance of technology, the
complexity of business operations and the need for constant growth are
conditions that require core competence in too many functional areas. This
business climate demands that companies adapt to keep up with the changes.
Outsourcing has helped companies improve business focus, free management from
day-to-day operations oversight and implement significant cost-saving measures.
As business practices continue to change and evolve within organizations
looking to remain competitive, the nature of outsourcing is undergoing a
transformation in both its use and its impact
The
vision of GEE is to meet each client's particular needs and to provide support
for each phase of their consulting engagements. They continuously discover
innovative solutions to today's BPO demands and use their resources to research
and Analysis of the Business Process Outsourcing (BPO) market to better
understand its future and to implement step-head measures to guarantee the best
solutions to their clients.
GEE
is led by world-class management team and their Call and Contact centers offer
different types of services:
- Technical
and Non-Technical Helpdesk
- Telemarketing
- Market
Surveys
- Data
Collection for Market Research
- After
sales support and service
- Data
Entry -Transactions, Account payables, Account receivables, Journal,
General Ledger, Order Processing.
- Specializing
in conversion from PDF/PEG/Tiff images to word Documents
- Scanning
from Text
- Imaging
& Animation
They provide round-the-clock
support with lower average handling time, skill based routing, low wrap-up
time, low abandon rates and they have 100% ability for data process. Their
highly skilled and well-trained workforce manages their clients' services to
deliver customer support.
|
||||||||||||||
|
||||||||||||||
CMT REPORT [Corruption, Money laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the
subject of any formal or informal allegations, prosecutions or other official
proceeding for making any prohibited payments or other improper payments to
government officials for engaging in prohibited transactions or with designated
parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered against
subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.
8] Affiliation
with Government :
No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.
9] Compensation
Package :
Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on the subject.
CORPORATE
GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN
EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.44.64 |
|
UK
Pound |
1 |
Rs.86.51 |
|
Euro |
1 |
Rs.58.62 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
43 |
This score
serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial condition (40%) Ownership background (20%) Payment record (10%)
Credit history (10%) Market trend (10%) Operational
size (10%)
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely
sound financial base with the strongest capability for timely payment of
interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate
working capital. No caution needed for credit transaction. It has above
average (strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not
cause fatal effect. Satisfactory capability for payment of interest and
principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are
apparent. Repayment of interest and principal sums in default or expected to
be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit not recommended |