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Geekay Wires Ltd.

BSE: 535003 Sector: Engineering
NSE: GEEKAYWIRE ISIN Code: INE669X01016
BSE 05:30 | 01 Jan Geekay Wires Ltd
NSE 05:30 | 01 Jan Geekay Wires Ltd

Geekay Wires Ltd. (GEEKAYWIRE) - Director Report

Company director report

Your Directors have pleasure in presenting their 27th Annual Reporttogether with the Audited Accounts of the Company for the Year ended March 312016.

FINANCIAL SUMMARY

(Rs. in Lakhs)

Particulars

As at the end of current reporting period 31st March 2016

As at tire end of previous reporting period 31st March 2015

(i) Revenue from operations

8001.57

6070.30

(ii) Other Incomes

104.02

41.76

Total Expenses

8008.88

6083.79

Profit or Loss before Exceptional and Extraordinary items and Tax

96.71

28.27

Less: Exceptional Items

*

-

Less: Extraordinary Items

-

-

Profit or Loss before Tax

96.71

28.27

Less: Current Tax

25.52

1.07

Deferred Tax

6.07

4.66

Profit or Loss After Tax

65.12

22.53

Add: Balance as per last Balance Sheet

508.40

490.38

Less: Adjustment for Depreciation on Fixed Assets

-

(4.50)

Balance Transferred to Balance Sheet

573.52

508.40

Earnings per share Basic

1.30

0.45

Diluted

1.30

0.45

OPERATIONAL REVIEW

During the fiscal year under review the Company has achieved turnoverof Rs. 8001.57 Lakhs as against the turnover of Rs. 6070.30 Lakhs of correspondingprevious year and earned the net

profits of Rs. 65.12 Lakhs against the net profits of Rs. 22.53 Lakhsin the previous fiscal year. The turnover and net profits was increased by 32% and 189%respectively. The management is confident of doing good business in the current fiscalyear as the products of the Company have great demand in the market.

FUTURE OUTLOOK

Your company under the new management for the past three years has beenperforming exceedingly well as it is evident from the financials of the company. There hasbeen consistent growth both in turnover and profits of the company. There is great demandfor product of the company arid keeping in view the growth of the company the managementis planning to expand its business operations in future. The company apart from itsinternal accruals promoters' contributions and funding from Banks/Financial Institutionsis also looking for funds from the external sources for its future expansion program.

MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITIONS

No material changes and commitments affecting the financial position ofthe Company occurred between the end of the financial year to which this financialstatements relate on the date of this report

DIVIDEND

In view of the business expansion program of the company the companythe Board of Directors has not recommended any dividends for the financial year underreport.

TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCTION AND PROTECTION FUND

The provisions of Section 125(2) of the Companies Act 2013 do notapply as there was no dividend declared and paid last year.

SHARE CAPITAL

There was no change in the Capital Structure of the Company during theperiod under report. The Authorised Share Capital and Paid up Equity Capital as on 31March 2016 was Rs. 10.00 Crores & Rs. 5.00 Crores respectively.

DEPOSITS

Your Company has not accepted any deposits within the meaning ofSection 73 and 74 of the Companies Act 2013 and the Companies (Acceptance of Deposits)Rules 2014.

PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS

There were no loans guarantees or investments made by the Companyunder Section 186 of the Companies Act 2013 during the year under review and hence thesaid provision is not applicable.

ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIALSTATEMENTS

The Company has in place adequate internal financial controls withreference to financial statements. During the year under review such controls were testedand no reportable material weakness in the design or operation were observed.

CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION FOREIGN EXCHANGEEARNINGS AND OUTGO

The provisions of Section 134(m) of the Companies Act 2013 do notapply to our Company.

Foreign Exchange details:

Foreign Exchange inflow -26.84 Lakhs Foreign Exchange outflow- 1786.52Lakhs

DIRECTORS

The Board was duly constituted during the period under report. TheBoard of Directors comprises of Mr. Ghanshyam Dass Mr. Ashish Kandoi and Mr. Anuj Kandoi.

MEETINGS

During the year Five (5) Board Meetings were held on 19.06.201502.09.2015 24.09.2015 31.12.2015 & 31.03.2016 and in respect of which meetingsproper notices were given and the proceedings were properly recorded and signed. TheMinute Book/registers maintained for the

purpose and the same have been signed. The intervening gap between theMeetings was within the period prescribed under the Companies Act 2013.

DIRECTOR S RESPONSIBILITY STATEMENT

In terms of Section 134 (5) of the Companies Act 2013 the directorswould like to state that:

i) In the preparation of the annual accounts the applicable accountingstandards have been followed.

ii) The directors have selected such accounting policies and appliedthem consistently and made judgments and estimates that were reasonable and prudent so asto give a true and fair view of the state of affairs of the Company at the end of thefinancial year and of the profit or loss of the Company for the year under review.

iii) The directors have taken proper and sufficient care for themaintenance of adequate accounting records in accordance with the provisions of this Actfor safeguarding the assets of the Company and for preventing and detecting fraud andother irregularities.

iv) The directors have prepared the annual accounts on a going concernbasis.

v) The directors had laid down internal financial controls to befollowed by the company and that such internal financial controls are adequate and wereoperating effectively.

vi) The directors had devised proper system to ensure compliance withthe provisions of all applicable laws and that such system were adequate and operatingeffectively

STATUTORY AUDITORS

The existing Auditors M/s Anjaneyulu & Co Chartered AccountantsHyderabad were appointed as Statutory Auditors for a period of 5 years in the AnnualGeneral Meeting held in the year 2014 and are eligible for reappointment subject toratification of members at ensuing Annual General Meeting of the Company. Your Directorsrecommends their re-appointment. The Report given by the Auditors on the financialstatements of the Company is part of the Annual Report.

MANAGEMENT REPLY TO AUDIT OBSERVATION

The observation made in the Auditors' Report read together withrelevant notes thereon are self explanatory and hence do not call for any furthercomments under Section 134 of the Companies Act 2013.

RELATED PARTY TRANS ACTIONS

The related party transactions entered during the period under reviewin terms of Section 188 of the Companies Act 2013 is enclosed as per Annexure -A.

SUBSIDIARIES JOINT VENTURES AND ASSOCIATE COMPANIES

The Company by virtue of merger of accounts between Kandoi Industries(India) Private Limited & Kandoi Ispat Forging (India) Ltd being holders of 43% and9% respectively as per the Scheme of Amalgamation effective from 01-04-2015 to 31-03-2016has become the Subsidiary Company of M/s Kandoi Industries India Private Limited which isholding 52% of the Equity Share Capital of the Company and does not have any SubsidiaryCompany(ies) or Joint venture(s).

DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORSCOURTS AND TRIBUNALS

No significant and material order has been passed by the regulatorscourts tribunals impacting the going concern status and Company's operations in future.

PARTICULARS OF EMPLOYEES

Information required as under the provisions of Section 197 read withrule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules2014 is not applicable to the Company as no employee is exceeds the limits as prescribed.

DISCLOSURE AND SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTIONPROHIBITION & REDRESSAL) ACT 2013

The Company is committed to provide a safe and conducive workenvironment to its employees. Your director further states that during the year underreview there were no cases filed pursuant to the (PREVENTION PROHIBITION &REDRESSAL) ACT 2013

INDUSTRIAL RELATIONS

During the year under review your Company enjoyed cordial relationshipwith workers and employees at all levels.

ANNUAL RETURN

The extracts of Annual Return pursuant to the provisions of Section 92read with Rule 12 of the Companies (Management and Administration) Rules 2014 isfurnished in Annexure - B and is attached to this Report.

ACKNOWLEDGEMENTS

Your Directors wish to place on record their gratitude for the valuableguidance and support rendered by the Banks Financial Institutions Government Authoritiesand various stakeholders such as shareholders customers and suppliers among others.The Directors also commend the continuing commitment and dedication of the employees atall levels which has been critical for the Company's success. The Directors look forwardto their continued support in future.

For and on behalf of the Board of Directors M/s Geekay Wires PrivateLimited

Place: Hyderabad Date: 01.09.2016

(Ashish Kandoi)

(Ghanshyam Dass)

Director

Director