(h) 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 that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

There is an ongoing reconciliation with EESL (Energy Efficiency Services Limited) for the services rendered in the years 2016-17 and 2017-18. The company has written off all the pending receivables based on uncertainty of realisation. However, there are some pending items with EESL, which are still under reconciliation and amount is not quantifiable which has to be mutually agreed between the Company and EESL.

There are no other Contingent liabilities as at balance sheet date hence disclosure except this in Financial statements are not arise.

(i) Investment in subsidiaries are measured at cost.

(j) Property, plant and equipment :

Property, plant and equipment are stated at cost comprising of purchase price and any initial directly attributable cost of bringing the asset to its working condition for its intended use, less accumulated depreciation (other than freehold land) and impairment loss, if any.

Depreciation is provided for property, plant and equipment on a straight line basis so as to expense the cost less residual value over their estimated useful lives based on a technical evaluation. The estimated useful lives and residual value are reviewed at the end of each reporting period, with the effect of any change in estimate accounted for on a prospective basis.

Depreciation is not recorded on capital work-in-progress until construction and installation is complete and the asset is ready for its intended use.

(K) Intangible assets:

Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably. Intangible assets purchased are measured at cost as of the date of acquisition, as applicable, less accumulated amortisation and accumulated impairment, if any.

Technical Knowhow: Salaries and other cost paid to resources working on new products are capitalized as intangible asset under the head "Technical Knowhow". Management has estimated life of this product is about 10 years subject to certain improvements to the same product/source code.

Computer Software: The Company amortizes Computer software using the straight-line method over a period of 6 years.

(l) Impairment

i) Financial assets (other than at fair value) :

The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets are impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. For all other financial assets, expected credit losses are measured at an amount equal to the 12 months expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

(ii) Non-financial assets

Tangible and intangible assets

Property, plant and equipment and intangible assets with finite life are evaluated for recoverability whenever there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognised in the statement of profit and loss.

(m) Employee benefits

(i) Defined contribution plans

Contributions to defined contribution plans are recognised as expense when employees have rendered services entitling them to such benefits.

(ii) Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages, Bonus, Earned Leave etc. and the expected cost of ex-gratia are recognised in the period in which the employee renders the related service. A liability is recognised for the amount expected to be paid when there is a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(n) Earnings per share

Basic earnings per share is computed by dividing profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year. 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 at 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.

Details of Primary and Collateral Securities (For Liabilities referred in Note No.11 & 14)

Hypothecation of Plant and Machinery, Equipment (Movable Assets), Commercial Property and Personal guarantee of the Promoter of

the Company.

Hypothecation of Movable Assets:

1. M/s. Canara Bank, Spl Mid Corporate Branch, Hyderabad, having Hypothecation of Fixed Assets financed by them through Term Loan.

2. Charge on stock (including live stock) & Receivables (excl. foreign receivables) and Current Assets except Cash and Bank balances of the company by M/s Canara Bank, Spl Mid Corporate Branch for working capital limits.

3. M/s. Department of Bio Technology, New Delhi having Hypothecation of Laboratory Equipment funded by them.

Collateral Securities :

1. EMT on land Acres 9.15 guntas in the name of M/s. Vivo Bio Labs Pvt Ltd situated at Sy No. 91,101 &102, Lakshmapalli Village, Gajwel Mandal, Medak District, Telangana for Term Loan and Working Capital loans given by M/s. Canara Bank, Spl Mid Corporate Branch, Hyderabad.

2. EMT on Land Acres 4.34 guntas in the name of M/s. Surlogic Life Consultancy Pvt Ltd situated at Sy No. 92, Lakshmapalli Village, Gajwel Mandal, Medak District, Telangana for Term Loan and Working Capital given by M/s. Canara Bank, Spl Mid Corporate Branch, Hyderabad.

3. EMT on land admeasuring 595 Sy Yards in the name of M/s. Vivo Bio Tech Limited situated at Plot No 87, Balamrai Co operative society, Mahendrahills, East Marredpally, Secunderabad for Loan against property given by The South Indian Bank Limited.

4. EMT on Land Square Yards 1,12,832.5 & Building Sq 1,17,197 Yards in the name of M/s. Vivo Bio Tech Limited at Sy No. 350/A, 350/C, 350/A, 351,351/B, 349/A Pregnapur Village, Gajwel Mandal, Siddipet District, Telangana for Term Loan given by M/s. Canara Bank, Spl Mid Corporate Branch, Hyderabad for purchase of Land and Building.

Personal Guarantee

1. Mr. Viswanath Kompella has given personal guarantee for all loans

2. Smt K Madhavi Latha has given personal guarantee for all loans taken from M/s. Canara Bank

Corporate Guarantee, to M/s. Canara Bank, IF Branch, from following companies:

1. M/s Maxcell Phones Communications India Pvt Ltd

2. M/s Vira Systems Pvt Ltd

3. M/s Iron Age India Pvt Ltd

4. M/s Iragavarapu Constructions Pvt Ltd

5. M/s P K I Solutions Pvt Ltd

Note No.24:

Consumables and other than Live Stock are valued at cost or realizable value whichever is less. Since company is engaged in breeding and trading activity of Rodents and cost of rodent stock is difficult to ascertain hence rodents in stock valued at realizable Value. With regards to other stock like rodent Feed, bedding material, Transit cages, Stores and Spares are valued at cost or realizable value whichever is lower.

Note No.25: Investments

Investments are stated at cost i.e. cost of acquisition, inclusive of expenses incidental to acquisition wherever applicable. Provision for diminution in the value of investments is not created as it is not a permanent decline.

Note No.27:

The Company has been awarded soft loan given by SBIRI (Small Business Innovation Research Initiative), Department of Bio Technology, towards the project - "Production of recombinant eventide (Incretin mimetic like GLP-1) (Phase II) a new generation cure for Diabetes" given specifically for the R&D work being carried out by company's biologic division operating from the facility located at Pothaipally Village, Hakimpet recognized by DSIR (Department of Scientific and Industrial Research) as in-house R&D unit vide approval F.No. TU/ IV-RD/2740/2010

A separate mortgage is created for the whole of movable and immovable properties acquired from the loan sanctioned by the DBT under the SBIRI scheme including its movable plant and machinery, machinery spares, tools and accessories and other movables both present and future (except book debts).

Note No.28: Related Party Transactions

All related party transactions that were entered into during the financial year were on arm's length basis and were in the ordinary course of business. There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of Company at large.

Note No.30:

Foreign Currency Outflow during the year of H102.83 Lakhs (Previous Year - H40 Lakhs).

Note No.31:

Foreign Currency Inflow during the year is H496.07 Lakhs (Previous Year - H536 Lakhs.)

Note No.32:

There are no dues to MSME Units outstanding for more than 45 days.

NOTE 33: Additional Regulatory information

i. The Company is in possession of immovable property and title deeds are held in the Name of the company.

ii. The Company has not revalued any of its Property, Plant and Equipment during the year.

iii. The Company has not granted any loans or advances in the nature of loans to directors, KMPs

iv. There are no proceedings initiated or pending against the company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there under.

v. The Company has borrowings from banks or financial institutions on the basis of security of current assets and the quarterly returns or statements filed by the company with such banks or financial institutions are in agreement with the books of account of the Company.

vi. The Company is not declared as willful defaulter by any bank or financial Institution or other lenders.

vii. The Company did not have any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956 considering the information available with the Company.

NOTE: 34

The Company does not have any transactions which are not recorded in the books of accounts that has been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during the year.

NOTE: 35:

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

Previous year's numbers have been regrouped, rearranged, re casted, wherever necessary to conform to Current Year Classification

As per our Report of Even Date For and on behalf of the Board of Directors of M/s.Vivo Bio Tech Limited

FOR P.Murali & Co.

Chartered Accountants Firm Registration No.007257S

M.V. Joshi M.Kalyan Ram K.Sri Kalyan

Partner Whole Time Director Whole Time Director & CFO

M. No. 024784 DIN: 02012580 DIN: 03137506

Vaishnvi Kiran Ayinampudi

Place : Hyderabad Company Secretary

Date: 20/05/2024 M.No.A60906