xiii) Provisions and contingencies:
Provisions are recognised when the Company has a present obligation (legal or constructive)
as a result of a past event, it is probable that the Company will be required to settle the
obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to
settle the present obligation at the end of the reporting period, taking into account the risks and
uncertainties surrounding the obligation. When a provision is measured using the cash flows
estimated to settle the present obligation, its carrying amount is the present value of those cash
flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, a receivable is recognised as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable can be measured reliably.
Contingent liabilities acquired in a business combination
Contingent liabilities acquired in a business combination are initially measured at fair value at
the acquisition date. At the end of subsequent reporting periods, such contingent liabilities are
measured at the higher of the amount that would be recognised in accordance with Ind AS 37
and the amount initially recognised less cumulative amortisation recognised in accordance with
Ind AS 18 - Revenue.
xiv) Earnings per equity share:
Basic earnings per equity share is computed by dividing the net profit attributable to the equity
holders of the company by the weighted average number of equity shares outstanding during
the period. Diluted earnings per equity share is computed by dividing the net profit attributable to
the equity holders of the company by the weighted average number of equity shares considered
for deriving basic earnings per equity share and also the weighted average number of equity
shares that could have been issued upon conversion of all dilutive potential equity shares. The
dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares
been actually issued at fair value (i.e. the average market value of the outstanding equity
shares). Dilutive potential equity shares are deemed converted as of the beginning of the
period, unless issued at a later date. Dilutive potential equity shares are determined
independently for each period presented.
The number of equity shares and potentially dilutive equity shares are adjusted retrospectively
for all periods presented for any share splits and bonus shares issues including for changes
effected prior to the approval of the financial statements by the Board of Directors.
xv) Dividend:
Final dividends on shares are recorded as a liability on the date of approval by the shareholders
and interim dividends are recorded as a liability on the date of declaration by the company's
Board of Directors.
xvi) Operating Cycle:
Based on the nature of products / activities of the Company and the normal time between
acquisition of assets and their realisation in cash or cash equivalents, the Company has
determined its operating cycle as 12 months for the purpose of classification of its assets and
liabilities as current and non-current.
xvii) Use of estimates:
The preparation of these financial statements in conformity with the recognition and
measurement principles of Ind AS requires the management of the Company to make
estimates and assumptions that affect the reported balances of assets and liabilities,
disclosures relating to contingent liabilities as at the date of the financial statements and the
reported amounts of income and expense for the periods presented. The estimates and
assumptions used in the accompanying financial statements are based upon management's
evaluation of relevant facts and circumstances as at the date of the financial statements. Actual
results could differ from estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimates are revised and future
periods are affected.
Key source of estimation of uncertainty at the date of the financial statements, which may cause
a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, is in respect of useful lives of property, plant and equipment, valuation of deferred tax
assets and provisions and contingent liabilities.
Useful lives of property, plant and equipment
As described in Note 1 (ii), the Company reviews the estimated useful lives and residual values
of property, plant and equipment at the end of each reporting period. During the current financial
year, the management determined that there were no changes to the useful lives and residual
values of the property, plant and equipment.
Valuation of deferred tax assets
The Company reviews the carrying amount of deferred tax assets at the end of each reporting
period. The policy for the same has been explained under Note 1 (xii).
Provisions and contingent liabilities
A provision is recognised when the Company has a present obligation as a result of past event
and it is probable than an outflow of resources will be required to settle the obligation, in respect
of which the reliable estimate can be made. Provisions (excluding retirement benefits and
compensated absences) are not discounted to its present value and are determined based on
best estimate required to settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date adjusted to reflect the current best estimates. Contingent liabilities are
not recognised in the financial statements. A contingent asset is neither recognised nor
disclosed in the financial statements.
(c) Rights preferences and restrictions attached to equity shares
The Company has only one class of equity shares having a par value of ? 10 per share. Each
holder of equity share is eligible for one vote per share. The dividend, if any, proposed by the
Board of Directors of the Company is subject to the approval of the shareholders in the ensuing
Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the Company after distribution of all preferential amounts, in
proportion to their shareholding. The Company declares and pays dividend in Indian
rupees.
Pursuant to the Company entering into Business Transfer Agreement (BTA) in November 2016 for
transfer of business undertaking of manufacturing and selling of starch and its derivatives along with
its two units, no interest has been charged on the basis of mutual agreement from October 01,2016
on the outstanding loan given by Mr T Sandeep Reddy, Director of the Company (Promoter & Related
Party). This loan was originally carried an interest of 15% per annum during the earlier years.
The loan does not have a fixed repayment term and shall be repaid subject to Company having
adequate cash profits.
Inter Corporate loan carried at an interest rate of 18% per annum
(i) The Company is not been declared as a Wilful Defaulter by any Bank, Financial Institution or
other lenders.
(ii) The Company has not advanced or loaned or invested funds to any other person(s) or
entity(ies), including foreign entities (Intermediaries) with the understanding that the
Intermediary shall.a) Directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever by on or behalf of the company (Ultimate Beneficiaries) orb) Provide
any guarantee, security, or the like to or on behalf of the ultimate beneficiaries.(B) The Company
has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall.a) Directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the company (Ultimate Beneficiaries), orb) Provide any
guarantee, security, or the like to or on behalf of the ultimate beneficiaries.
The Company is subject to legal proceedings and claims, which have arisen in the ordinary course
of business. The Company is contesting the above demand and the management including its tax
advisors believes that its position will likely be upheld in the appellate process. The management
believes that the ultimate outcome of these proceedings will not have a material adverse effect on
the Company's financial position and results of operations. Future cash outflows in respect of the
above matters are determinable only on receipt of judgments / decisions pending at various forums
/ authorities.
2.12Employee benefits
Defined contribution Plan:
The Company makes contributions, determined as a specified percentage of employee's salaries,
in respect of qualifying employees towards provident fund which is defined contribution plans. The
Company has no obligations other than the above to make specified contributions. The
contributions are charged to the Statement of Profit and Loss. The amount recognised as an
expense towards contribution to provident fund aggregated to ? 0.73 in lakhs (Previous year: ? 2.47
lakhs including employee state insurance).
Defined benefit plan:
The Company operates defined benefit plans that provide gratuity benefits to employees. The
gratuity plan entitles an employee, who has rendered at least 5 years of continuous service to
receive one-half month's basic salary for each year of completed service at the time of
retirement/resignation/ termination of employment. But as the company has transferred all the
employees as a condition of BTA, it has only employees recruted in the previous financial year with
liability only as Provident Fund for Contribution plans and hence no defined benifit obligation in the
financial year.
Discount rate: The discount rate is based on the prevailing market yields of Indian government
securities as at the balance sheet date for the estimated term of the obligations.
Salary escalation rate: The estimates of future salary increases considered takes into account the
inflation, seniority, promotion and other relevant factors.
The Company does not have any plan assets.
Leave encashment :
The Company has recognized amount of ? NIL lakhs (previous year: Rs. Nil lakhs) as expense in
the Statement of Profit and Loss in respect of compensated absences.
2.13. Leases
The Company has taken office facilities on lease under cancellable and non-cancellable operating
lease arrangements. The total rental expenses under cancellable operating lease was ? NIL lakhs
(previous year: Rs.Nil lakhs) has been included under “Rent” in the Statement of Profit and Loss.
Tax losses includes business losses, short term and long term capital loss that can be carried
forward under Income Tax Act, 1961 up to eight assessment years immediately succeeding the
assessment year for which the loss was first computed, including unabsorbed depreciation can be
carried forward to indefinite period.
Deferred tax assets on carry forward unused tax losses have been recognised to the extent of
deferred tax liabilities on taxable temporary differences available. It is expected that any reversals
of the deferred tax liability would be offset against the reversal of the deferred tax asset.
The management assessed that the fair values of financial assets approximate their carrying
amounts largely due to the short-term maturities of these instruments.The fair value of the financial
assets and liabilities is included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale. For fianncial
assets and financial liabilities that are measured at fair value, the carrying amounts are equal to the
fair value."
2.18 Financial Risk Management Objectives and Strategy:
Major risk belongs to the discontinued operations of the Company which are Credit risk and Liqudity
risk etc.Credit Risk: Credit risk is the risk of financial loss to the Company if a customer or
counterparty to a financial instrument fails to meet its contractual obligations. Financial instruments
that potentially subject the Company to concentration of credit risk consist principally of cash and
bank balances and trade receivables."
Liqudity Risk: Liquidity risk is the risk that the Company will not be able to meet its financial
obligations as they become due. The Company invests its surplus funds in various marketable
securities and other financial intruments to ensure that the sufficient liquidity is available. The
Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due. The Company requires funds both for short-term operational
needs as well as for long-term investment programmes mainly in growth projects.
2.19 Capital Management
The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and
market confidence and to sustain future development of the business. The Company monitors the
return on capital as well as level of dividend on its equity shares. The Company's objective when
managing capital is to maintain and optimal structure so as to maximize shareholder's value.
No changes were made in the objectives, policies or processes for managing capital during the
current period.
2.20
i. No proceedings have been initiated or are pending against the Company for holding any
Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the
rules made thereunder."
ii. The Company has not been sanctioned working capital limits in excess of five crore rupees, in
aggregate, from banks or financial institutions on the basis of security of Current
Assets."
iii. During the current financial year, to the best knowledge of the company, it didn't have any
relationship with Struck-off Companies.
iv. The Company has no Charges or Satisfaction yet to be registered with the Registrar of
Companies beyond the statutory period."
v. The Company has not made any investment and do not have subsidiaries, therefore clause (87)
of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, is
not applicable."
vi. The Company has not entered into any Scheme of Arrangement in terms of sections 230 to 237
of the Companies Act, 2013. Hence there will be no accounting impact on the current or
previous financial year
vii. There is no income surrendered or disclosed as income during the current or previous year in
the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of
account."
viii. The Company has not traded or invested in Crypto Currency or Virtual Currency during the
current or previous year."
ix. The Company has not revalued its property, plant, and equipment during the current or previous
year.
x. The provisions of Corporate Social Responsibility Under Section 135 of Companies Act 2013
are not applicable to the Company.
xi. The Company does not have any Immovable Properties where title deeds are not held in the
name of the Company.
xii. The Company has not raised any funds through the Issue of Securities during the current or
previous year.
2.21. CIF value of imports
There are no imports made during the current year and previous year.
2.22. Expenditure in foreign currency
There is no expenditure in foreign currency in current year and previous year
2.23. Earnings in foreign currency
2.25. Balances in the accounts of various parties appearing in these statements are subject to confirmations
and reconciliations.
2.26. Figures for the previous year have been regrouped / rearranged, wherever necessary, to conform to
current year’s classification.
As per our report attached For Gayatri BioOrganics Limited
Foi- MGR & Co Sd/- Sd/-
Cfiarterecl /^coiir^ante T.V. Sandeep Kumar Reddy Sreedhara Reddy Kanaparthi
Firm Registration No: 012787S Chairman and Director Whole-time Director
DIN:00005573 DIN : 09608890
Sd/-
M.G.Rao
Partner
Membership No. 029893 Sd/- Sd/-
Aamir Tak A Prabhakar Rao
Place: Hyderabad Company Secretary and Chief Financial Officer
Date: May 28, 2025 Compliance Officer
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