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 impairment is recognized in the values as per IndAS-36 as management is of opinion that no impairment of assets is noticed.

3) The value of Investment property Rs 12,79,164/- is separately shown in the balance sheet as per Ind AS -40.

Rental Income from Investment property earned during the year 2023-24 is 7,99,500/-. Carrying value of the investment property is separately disclosed in financial statements.

The investment property is recognized and measured at cost. During the year the company has not carried out valuation from independent valuer. In absence of any such report the property is disclosed at cost.

4) Depreciation on Property plant & Equipment has been provided during the year to the tune of Rs.5.39 Crores as per the revised rates prescribed under Schedule II of the Companies Act, 2013.

i. Inventories as on 31st March 2024 has been taken, valued as certified by the Management and the same was physically verified by Management on 31st March 2024.

ii. Cost of material consumed during the year is Rs. 323,25,11,758.00. 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.

b) Trade payables are classified as dues outstanding to entities registered under MSME Act and entities not registered under MSME Act. Accordingly dues outstanding to MSME is Rs 1,14,92,793/-. Further in the view of management the impact of interest provisions under the MSME Act is not expected to be material and the same shall be accounted while payment in next financial year.

Loan given during the year to ASP Private Limited (Common Control Entity) is in accordance with section 186 of Companies Act 2013.

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) Long term 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. Hie balance does not include the EMI payable in next twelve months, the same is shown in Short term Borrowings under current liabilities.

(**) Hie Company 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 Appellate 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.

The company is having a pending case regarding recovery of Dues amounting to RS 11435087.00 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 as follows:

(*)The company on 31 /08/2023 has sub divided each of the Equity Shares of the company having face value of Rs 10/- each in Authorized, Issued, Subscribed and paid up Share Capital of the company into Five (5) Equity Shares having a face value of Rs 2/- 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.

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. Tire CSR Policy can be accessed on the company's website at https:// www.geekaywires.com/ pdf/ policy / csr-policies.pdf

(l)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, 2024, the Company has made contributions to Geekay wires Tmst 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

* Tire 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")

24) Previous Year figures have been regrouped wherever necessary to confirm to the current year classification and figure are presented to the nearest rupee value.