(g) Provisions
As per IND AS-37 Provisions are recognized in the balance sheet when the Company has a present
o igation (legal or constructive) as a result of a past event, which is expected to result in an
outflow of resources embodying economic benefits which can be reliably estimated. Each
provision is based on the best estimate of the expenditure required to settle the present
ob igation at the balance sheet date. Where the time value of money is material, provisions are
measured on a discounted basis. Constructive obligation is an obligation that derives from an
entity s actions where:
(a) by an established pattern of past practice, published policies or a sufficiently specific
current statement, the entity has indicated to other parties that it will accept certain
responsibilities and;
(b) as a result, the entity has created a valid expectation on the part of those other parties
that it will discharge those responsibilities.
(h) Government grants
In accordance with Ind AS 20 "Government Grants", duty drawback on sale of goods and Duty
credit scrip under RO DTEP Scrip scheme has been treated as a Government grants. Such income
is released to the statement of profit and loss based on fulfillment of related export obligations.
During the year, company has received 20,00,000/- as investment subsidy and the same is shown
as separate line item under Reserves and surplus account.
(i) Income taxes as per IND AS-12
a) Current tax is the amount of tax payable on the taxable income for the year as determined in
is cable tax rates and the provisions °f the ^ »*Ý
b) raeI?rred T 'S tr6 taX expected t0 be Payable or recoverable on differences between the
ying values of assets and liabilities in the financial statements and the corresponding tax
ases used in the computation of taxable profit and is accounted for using the balance sheet
liability method. Deferred tax liabilities are generally recognized for all taxable temporary
tlfl f?"ces'ln “ntrast deferred tax assets are only recognized to the extent that it is probable
utilized 3b 6 Pr0f'tS Wl be available against which the temporary differences can be
(j) Revenue
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured, regardless of when the payment is being
made. Revenue is measured at the fair value of the consideration received or receivable net of
d'S“U"“' tak'ng lnt0 account contractually defined terms and excluding taxes or duties collected
on behalf of the government.
(i) Sale of goods
Revenue from the sale of goods is recognized when the significant risks and rewards of ownership
ave been transferred to the buyer. No revenue is recognized if there are significant uncertainties
regarding recovery of the amount due, associated costs or the possible return of goods.
(ii) Interest Income
interest income is accrued on a time proportion basis, by reference to the principal outstanding
and the effective interest rate applicable.
(iii) Rental income
Rental income from investment properties is recognized on a straight line basis over the term of
the relevant let out period.
(iv) Foreign currency transactions and translations
The financial statements of the Company are presented in Indian rupees (Rs), which is the
functional currency of the Company and the presentation currency for the financial statements.
In preparing the financial statements, transactions in currencies other than the Company's
functional currency are recorded at the rates of exchange prevailing on the date of the
transaction. At the end of each reporting period, monetary items denominated in foreign
currencies are re-translated at the rates prevailing at the end of the reporting period.
(k) Borrowing costs
orodPuertionDnfAS"2rtBOrrOWinSS attributable ‘o the acquisition, construction or
p oduction of qualifying assets, which are assets that necessarily take a substantial period of time
to get ready for their intended use or sale, are added to the cost of those assets, until such time
as the assets are substantially ready for the intended use or sale..
(l) Employee Benefits:
The Company participates in a Provident Fund contribution plan on behalf of relevant personnel.
ny expense recognized in relation to these schemes represents the value of contributions
payable during the period by the Company at rates specified by the rules of those plans. The only
amounts included in the balance sheet are those relating to the prior months contributions that
were not due to be paid until after the end of the reporting period.
The Company has an obligation towards gratuity, a defined benefit retirement plan covering
eligible employees. The plan provides for a lump- sum payment to vested employees at
retirement, death while in employment or on termination of employment of an amount
equivalent to 15 to 30 days salary payable for each completed year of service. Vesting occurs upon
completion of five years of service. The Company do not have any funding arrangement. They
settle the Gratuity on Pay-N-Go basis. The Company accounts for the liability for gratuity benefits
payable in the future based on a year-end actuarial valuation report.
(m) Financial Instruments
Financial assets and financial liabilities are recognized when the Company becomes a party to the
contractual provisions of the instrument. Financial assets at stated at cost
(a) Financial assets
1. Cash and bank balances - Cash and cash equivalents include cash in hand, deposits held at call
with banks & bank balances includes balances with banks.
2. Trade Receivables -Trade receivables are initially measured at transaction costs and
subsequently measured to the extent realizable.
(a)Financial Liabilities
Trade and other payables are initially measured at transaction costs Interest bearing
bank loans, overdrafts are initially measured at cost
- e-recog nit ion of financial liabilities
(c) Non current assets held for sale and discontinued operations >
Non-current assets and disposal groups classified as held for sale are measured at the
lower of their carrying value and fair value less costs to sell. However there are no such
items identified during the year.
(n) Leases
The company has not entered into any lease transactions during the year. Hence a
provision of Ind AS 116- Leases is not applicable.
(o) lnvestments:
Investments in equity instruments issued by other than subsidiaries are classified as at
FVTPL, unless the related instruments are not held for trading and the Company
irrevocably elects on initial recognition to present subsequent changes in fair value in
Other Comprehensive Income. The companies has made non-current investment in
unquoted equity instruments of a Company and are not held for trading .The investment
is measured at cost less impairment if any.
3. NOTES TO ACCOUNTS
1) All Assets & liabilities are presented as current and noncurrent as per criteria set out in
Schedule - III to the companies Act 2013 as notified by the Ministry Of Corporate Affairs.
Based on the Nature of operation of the company and realization from the trade
receivable, the company has ascertained its operating cycle of less than 12 months period
has been considered for the purpose of current/Noncurrent classification of Assets and
Liabilities.
2) Property Plant & equipment are realizable at least to the extent of the values stated
against them. No .mpairment is recognized in the values as per lndAS-36 as management
IS of opinion that no impairment of assets is noticed.
During the year the Capital work in progress of Rs 42,45,58,998/-is considered under Property
Plant & equipment, the same is planned to complete as below.
The total CWIP as the year ended 31/03/2026 is Rs 424.,59 lacs.
3) The value of Investment property Rs 10.55 lacs is separately shown in the balance sheet as
per Ind AS -40.
Rental Income from Investment property earned during the year 2025-26 is 0/-.However
Carrying value of the investment property is separately disclosed in financial statements.
i. Inventories as on 31st March 2026 has been taken, valued as certified by the Management
and the same was physically verified by Management on 31st March 2026.
ii. Cost of material consumed during the year is Rs.3,42,91,94,927 These include purchase
cost& import duties and all the direct expenses incurred during the year.
iii. Working capital loan from City Union Bank is hypothecated on the above Stock.
6) Financial assets and liabilities
Trade Receivables, Trade payables, Loans & Advances, cash in hand has been taken at Book
Value subject to confirmation and reconciliations. Till the date of signing the report
Balance Confirmations have not been received.
Loan given during the previous year to ASP Private Limited (Common Control Entity) is in
accordance with section 186 of Companies Act 2013 and fully recovered along with
interest in the current financial year.
In the opinion of the Management, the current asset, loans & advances are approximately
of the value stated, if realized in normal course of the business of the company. The
provision for depreciation and all known liabilities made except where specifically stated
otherwise is considered adequate and not in excess of amounts reasonably considered
necessary.
7) Longterm Borrowings
Long term borrowings includes the following
Secured Long Term Borrowings are secured by Tangible Assets, hypothecation of stock &
book debts and personal guarantees by directors. The balance does not include the EMI
payable in next twelve months, the same is shown in Short term Borrowings under current
liabilities.
(**) The ComPar|y has made an application under Advance Ruling on reversal of input tax
credit of goods destroyed in fire. The outcome of the same is not in company's favour.The
company has filed an appeal against Advance Ruling before the Appelate Authority for
clarification & Advance Ruling, Commercial Taxes Department. However there may be a
contingent liability regarding reversal of input tax credit amounting to Rs 35, 72,577/-
based on the calculation, in which input tax credit availed on cost of production is reduced
by GST payable on scrap sales based on the outcome of Appeal. The company has not
made any provision in this year and the liability will be determined only on the outcome
of the appeal petition pending before the Authority for clarification & Advance Ruling
Commercial Taxes Department.
b) Contingent Assets not recognized:
The company is having a pending case regarding recovery of Dues amounting to RS
98,91,556.00 from M/s Punjab State Forest Corporation. During the year 2022-23 company
has submitted certificate claiming interest amounting to Rs l,03,24,331/-( till
31/03/2023) to be received as per the provisions of Clause Number 16 of Chapter V of
MSME Act 2006.The same is not considered during the year as Contingent assets are not
recognized in financial statements since this may result in the recognition of income that
may never be realized. However, when the realization of income is virtually certain, then
the related asset is not a contingent asset and its recognition is appropriate calculation of
Interest & Outstanding Balance on Monthly Compounding Basis is asfollows:
* The company further on 26/09/2025 has sub divided each of the Equity Shares of the
company haying face value of Rs 2/- each in Authorised, Issued, Subscribed and paid up
Share Capital of the company into one (1) Equity Shares having a face value of Rs 1/- each
fully paid, of the Company before the National Stock Exchange. All the relevant procedures
and execution is in progress to give effect to this decision from the record date.
During the year, the Company has sub-divided/split its equity shares from face value of *
2 each into equity shares of * 1 each, pursuant to approval of the shareholders obtained
on 26/09/2025. Consequently, the number of equity shares outstanding has increased
from 5,22,60,000 shares to 10,45,20,000 shares.
In accordance with the requirements of Ind AS 33 - Earnings Per Share, the Basic and
Diluted Earnings Per Share (EPS) for the current year and comparative previous year
presented in the financial statements have been computed/restated considering the
revised number of equity shares consequent upon the aforesaid share split, as if the event
had occurred at the beginning of the earliest period presented.
21) Corporate social responsibility
Corporate Social Responsibility (CSR) As per Section 135 of the Companies Act, 2013, a
company, meeting the applicability threshold, needs to spend at least 2% of its average
net profit for the immediately preceding three financial years on corporate social
responsibility (CSR) activities. The areas for CSR activities are promoting education,
promoting gender equality by empowering women, healthcare, environment
sustainability, art and culture, destitute care and rehabilitation, disaster relief, COVID-19
relief and rural development projects. A CSR committee has been formed by the Company
as per the Act. The funds were primarily utilized through the year on these activities which
are specified in Schedule VII of the Companies Act, 2013. The CSR Policy can be accessed
on the company's website at https://www.geekavwires.com/odf/policv/csr-Dolicies.ndf
(1) Effective February 2, 2022, Geekay wires Trust a trust jointly controlled by the KMP of Geekay
wires Limited is a related party. For the year ending March 31, 2026, the Company has made
contributions to Geekay wires Trust to fulfill its corporate social responsibilities. Geekay wires
Trust supports programs in the areas of Promoting education, promoting gender equality by
empowering women, healthcare, environment sustainability, art and culture, destitute care and
rehabilitation, disaster relief, COVID-19 relief and rural development projects
(2) Kandoi Industries India Private limited a private limited company jointly controlled by the KMP
of Geekay wires Limited is a related party. For the year ending March 31, 2026, the Company has
paid advance for purchase of property for Old Age Home to Kandoi Industries India Private limited
to fulfill its corporate social responsibilities.
* The unspent amount will be transferred to unspent CSR account within 30 days from the end of
the financial year, in accordance with the Companies Act, 2013 read with the CSR Amendment
Rules. Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules
2021 ("the Rules")
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