MIRA INFORM REPORT
|
Report
Date : |
18th
January, 2007 |
IDENTIFICATION
DETAILS
|
Correct
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 |
|
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Country
: |
India |
|
|
|
|
Financials
(as on) : |
31.03.2006 |
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|
|
|
Date
of Incorporation : |
24.11.1960 |
|
|
|
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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 |
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|
|
|
Litigation
: |
Clear |
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|
|
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 |
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E-Mail
: |
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|
Website
: |
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|
|
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|
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 |
||||
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|
||||
|
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 |
|
30.09.2006 |
30.06.2006 |
|
Type |
|
2nd Quarter |
1st
Quarter |
|
Sales Turnover |
|
91.700 |
80.800 |
|
Other Income |
|
0.200 |
0.300 |
|
Total Income |
|
91.900 |
81.100 |
|
Total Expenditure |
|
84.900 |
75.800 |
|
Operating Profit |
|
7.000 |
5.300 |
|
Interest |
|
3.100 |
1.800 |
|
Gross Profit |
|
3.900 |
3.500 |
|
Depreciation |
|
0.400 |
0.400 |
|
Tax |
|
1.600 |
1.000 |
|
Reported PAT |
|
1.900 |
2.100 |
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 |
STOCK PRICES
|
Face
Value |
Rs. 10.00 |
|
High |
Rs. 73.35 |
|
Low |
Rs. 73.35 |
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.
|
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|
||||||||||||||
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.44.25 |
|
UK Pound |
1 |
Rs.87.30 |
|
Euro |
1 |
Rs.57.36 |
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 |