Geekay Wires Ltd Management Discussions

[ANNEXURE- D]

1.INDUSTRYS STRUCTURE AND DEVELOPMENTS

Geekay Wires Limited is an ISO 9001:2008 company, located at Hyderabad, engaged in manufacturing of niche quality Galvanized Steel Wires which find applications in Power Transmission, Cable & Conductor,

General Engineering, Construction etc.

Today with robust infrastructure & testing facilities we are in the preferred-vendor list of PGCIL and in all most all State Transmission & Distribution Companies, Electrical Contractors, corporate engaged in turnkey business of creating infrastructure for Power Transmission & Distribution, Cable & Conductor Manufacturing, etc. our products are not only accepted in India but we have received accolades from overseas customers also. The company has the following major products and it also holds BIS License for most of these.

The Company has an installed capacity of 35,000 MTS P.A of Galvanized Steel Wires in various grades & sizes and 25,000 MTS PA of Nails & 10,000 MTS PA of Stainless Steel Nuts & Bolts for manufacturing of the above products. During the year the Company added a new main object of Transportation Logistic Services by Amendment in the Memorandum.

2.GLOBAL & DOMESTIC OVERVIEW

Global growth is projected at 3.3 percent both in 2025 and 2026, below the historical (2000 19) average of 3.7 percent. The forecast for 2025 is broadly unchanged from that in the October 2024 World Economic Outlook (WEO), primarily on account of an upward revision in the United States offsetting downward revisions in other major economies. Global headline inflation is expected to decline to 4.2 percent in 2025 and to 3.5 percent in 2026, converging back to target earlier in advanced economies than in emerging market and developing economies.

Medium-term risks to the baseline are tilted to the downside, while the near-term outlook is characterized by divergent risks. Upside risks could lift already-robust growth in the United States in the short run, whereas risks in other countries are on the downside amid elevated policy uncertainty. Policy-generated disruptions to the ongoing disinflation process could interrupt the pivot to easing monetary policy, with implications for fiscal sustainability and financial stability. Managing these risks requires a keen policy focus on balancing trade-offs between inflation and real activity, rebuilding buffers, and lifting medium-term growth prospects through stepped-up structural reforms as well as stronger multilateral rules and cooperation.

India

As per the first advance estimates released by the National Statistical Office, Ministry of Statistics & Programme Implementation (MoSPI), the real gross domestic product (GDP) growth for FY25 is estimated to be 6.4 per cent. From the angle of aggregate demand in the economy, private final consumption expenditure at constant prices is estimated to grow by 7.3 per cent, driven by a rebound in rural demand.

OUTLOOK

Steel Industry

As per the forecast by Indian rating agency CRISIL, Indias steel demand is projected to grow by 8-9% in 2025, significantly outpacing the growth rates of other countries. Growth in Indias construction sector is driven by government spending on infrastructure and recovery in private investment. Infrastructure investment will also support capital goods sector. Besides, healthy growth momentum is expected to continue in the automotive sector. These, in turn, will push up steel demand in the country, world steel said.

Construction Industry

Indias construction industry has experienced unprecedented growth in recent years and is on track tobecome the worlds third-largest construction market within the next 2–3 years. According to reports, the Indian construction market is projected to reach a value of $1.4 trillion by 2025.

The construction sector in India has been a key driver of the countrys economic expansion, offering significant employment opportunities. Despite facing challenges in recent times, the industry has demonstrated remarkable resilience, thanks to ongoing government support. Today, it presents a vast opportunity for individuals and businesses alike, contributing to job creation and fostering growth within the startup ecosystem.

Power sector

Indias electricity demand will grow at an average annual rate of 6.3% over the next three years, stronger than the 2015-2024 average growth rate of 5%, according to the International Energy Agencys (IEA) Global Electricity Outlook 2025. Consequently, electricity demand in residential and commercial sectors increased by approximately 60-65% between 2014 and 2024. "While strong interconnections between states and the operation of thermal power plants enable Indian utilities to meet energy demand throughout the year, the rapid rise in peak load presents a major challenge for the electricity grid and national authorities," the IEA observes.

Fastner Industry

India industrial fasteners market is projected to witness a CAGR of 6.31% during the forecast period FY2025-FY2032, growing from USD 6.08 billion in FY2025 to USD 9.93 billion in FY2032. The growth of the Indian industrial fasteners market is driven by several key factors, such as increasing construction activities, a rise in automotive production demands, and the overall expansion of industrial machinery. The boom in residential and commercial projects and government smart city initiatives are the results of the increase in the construction sector, which requires a variety of fasteners

3.FINANCIAL PERFORMANCE

The following are relevant financial performance details with respect to the operational performance of the

Company.

(Rs In Lakhs)

4.OPPORTUNITIES, THREATS

Key Opportunities include:

-Robust Demand :

Increased demand in India, USA , Europe and developing countries.

-Increasing Investments:

The industry is witnessing consolidation of players, which has led to investment by entities from other sectors. The ongoing consolidation also presents an opportunity to global players to enter the Indian market.

-Policy Support:

Implementation of production -linked incentive scheme (PLI) for the approved speciality steel

Key Threats include:

- Capital and labour intensive industry.

-Logistic Hurdles and International and local slow down.

-The high inflation impacting input cost.

-Disruptions in raw material supply

5. PERFORMANCE, RISKS AND CONCERNS, THE MANAGEMENT PERCEIVES

Your Company has segments of revenue. Audited financial results of the segments are furnished in Note 22 of Notes forming part of the Financial Statements.

The Company has put in place Risk Management Policy and Procedures for identification,assessment, management, monitoring and minimization of risks. It has identified potential risks under various categories like Business, Operations, Liquidity, Market, Industry, Human Resources and Systems. The Company is periodically reviewing the risks and their identification, assessment, monitoring and mitigation procedures. It does not perceive any major technological, operational, financial or environmental risks in the near future except for the prevailing Russian Ukraine conflict and its impact on the global economy.

6. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

Your Company has adequate internal control systems combined with delegation of powers and periodical review of the process. The control system is also supported by internal audits and management reviews of documented policies and procedures.

7. HUMAN RESOURCES

The Companys Industrial relations at all the levels remained cordial throughout the year.

8. CAUTIONARY STATEMENT

This report contains several forward-looking statements that involve risks and uncertainties, including, but not limited to, risks inherent in DP Wires growth strategy, acquisition plans, dependence on certain businesses, dependence on availability of qualified and trained manpower, economic conditions, government policies and other factors. Actual results, performances or achievements could differ materially from those expressed or implied in such forward-looking statements. This report should be read in conjunction with the financial statements included herein and the notes thereto for & on behalf of the Board of Directors.

9. DISCLOSURE OF ACCOUNTING TREATMENT:

The Financial Statements have been prepared in accordance with Indian Accounting Standards (‘IND- AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 and other relevant provisions of the Act.