I. Provision for Current and Deferred Tax
Provision for current tax liability of the company is estimated considering the provisions of the Income Tax Act, 1961.
Deferred tax resulting from timing difference between book and taxable profit is accounted for using the tax rates and laws
that have been enacted or substantively enacted on the balance sheet date. The deferred tax liability is recognized and carried
forwarded.
J. Treatment of Contingent Liabilities
Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if
a) The company has a present obligation as a result of past event;
b) a probable outflow of resources is expected to settle the obligation; and
c) The amount of obligation can be reliably estimated.
Contingent liability is disclosed in case of
a) a present obligation arising from past events, when it is not probable that an outflow of resources will be required
to settle the obligation;
b) a present obligation arising from past events, when no reliable estimate is possible; and
c) a possible obligation arising from past events where the probability of outflow of resources is not remote.
Contingent assets are neither recognize nor disclosed. Provisions, contingent liabilities and contingent assets are reviewed
at each balance Sheet date.
K. Borrowing Cost:
A qualifying asset is an asset that requires a substantial period of time to get ready for its intended use. All other borrowing
costs are recognized as an expense in the period in which they are incurred.
L. Impairment of Assets:
The Company assesses at each reporting date as to whether there is any indication that an asset (tangible and intangible)
may be impaired. An asset is treated as impaired, when the carrying cost of the asset exceeds its recoverable amount.
Recoverable amount is higher of an assets or cash generating unit's net selling price and its value in use. Value in use is the
present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at
the end of its useful life.
An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The
impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable
amount.
NOTE - 37: Terms of Repayment and Security Clause in respect of Long-term Borrowings:
• Term Loan outstanding amounting to Rs. 75.93 Lakhs (P.Y.106.29 Lakhs) from Small Industrial Bank of India is secured by
hypothecation of Plant & Machinery, equipment's, spares, tools, accessories and other assets including movable assets
acquired by using this loan and also secured by collateral security by lien on SIDBI fixed deposits of Rs.40.80 lakhs.
• Term Loan outstanding amounting to Rs. 174.02 Lakhs (P.Y.-nil) from Small Industrial Bank of India is secured by following:
1) Hypothecation of Plant & Machinery, equipment's, spares, tools, accessories and other assets including movable assets
acquired by using this loan.
ii) -1) Collateral securities are as under: 1.) First charge on SIDBI the duly discharged Fixed deposit receipts [FDRs] issued by
way of constructive delivery by SIDBI for an amount of Rs. 90.00 lakh (Rupees Ninety Lakh Only). The FDR should be taken
in auto renewal mode and shall continue till the tenure of the loan. No premature withdrawal is permitted. The interest
accrued on the FDRs shall not be payable periodically and the principal amount together with interest accrued thereon shall
be payable on complete repayment of loan and all other monies payable under the Loan Agreement.
2) Extension of first charge on SIDBI the duly discharged Fixed deposit receipts [FDRs] issued by way of constructive delivery
by SIDBI for an amount of Rs. 40.80 lakh (Rupees Forty lakh Eighty Thousand Only). The FDR should be taken in auto renewal
mode and shall continue till the tenure of the loan. No premature withdrawal is permitted. The interest accrued on the FDRs
shall not be payable periodically and the principal amount together with interest accrued thereon shall be payable on
complete repayment of loan and all other monies payable under the Loan Agreement.
3) Extension of first charge by way of hypothecation in favour of SIDBI on the plant and machinery, equipment, spares, tools,
accessories and all other assets including movable assets acquired / to be acquired under the earlier project of Rs 136.00
lakh.
iii) Unconditional and Irrevocable guarantees of
> Shri Ketan Kumar Joshi
> Smt. Kusum Barhat
> Shri Narendra Singh Barhat
• The Vehicle Loans outstanding amounting to Rs.14.05 & Rs.21.92 Lakhs from Bank of Baroda are secured by hypothecation
of vehicles.
• Term Loan outstanding amounting to Rs.674.88/-Lakhs (P.Y.-843.91 lakh) from Bank of Baroda is secured by following
securities:
i) equitable mortgage of factory land & building located at plot no E/24 & E/25 Savli Industrial estate and hypothecation of
plant & Machinery, Furniture & Fixtures and other fixed assets proposed to be purchased out of bank finance.
The facilities as extended to the captioned company are secured by the following securities: -
1. Hypothecation of entire Raw Materials, stock-in-process, stores & spares, packing Materials, finished goods and book -
debts of the company, both present & future primarily securing cash credit facility shall be extended to secure all other credit
facilities too.
2. Hypothecation of plant & machineries.
3. Lien on FD of Rs. 1.31 crore
4. Equitable mortgage of following securities: -
A. Leasehold industrial property situated at plot no. E/24 & E/25 in Savli industrial estate admeasuring 8000.00 sq. mtr.
bearing R.S. No. 1723/P, 1724/P, 1739/P and 1740/P Mouje: Manjusar in the registration sub district, Savli and district
Vadodara in the name of M/S Aristo bio - tech & Lifescience Limited.
B. Leasehold industrial property situated at plot No. E - 26 in Savli industrial Estate admeasuring 4000.00 sq. mtr. bearing
R.S. No. 1723/P & 1724/P , 1739/P and 1740/P part Paiki Mouje : Manjusar in the registration sub district, Savli and
district Vadodara belonging of M/S Aristo bio - tech & life science PVT Ltd.
C. Freehold industrial land at block No. 165/A/P1/1 bearing old survey No. 353,354 &355 in Mouje: Alindra in the
registration sub district , Savli and district Vadodara. the said property admeasuring about 19712.00 sq. Mrts. belonging
to M/S Aristo bio - tech & life science PVT Ltd.
D. Residential flat no. A 201, 2nd floor , admeasuring 120.77 sq. Mtrs. Situated in North - West direction of A - tower of
Nakshatra Heights with proportionate share of 75.48 sq. mtr. Paikee 2127 sq. mtr. FP NO .145 , VUDA T.P. No.1 in
registration sub - district Vadodara and district Vadodara belonging to Mr. Narendra Singh Barhat & Mrs. Kusum
Narendra singh Barhat.
E. Residential Flat No. 101, 1nd floor, Paiki tower - O of scheme - Shravan paradise admeasuring 111.00 sq. mtrs with
undivided land for common road and common plot at Block no. 1770 adm. 11510 sq. mtr. Old RS No. 2475 & 2477/2 of
registration sub - district Savli and district Vadodara belonging to M/S Aristo Bio - tech & Lifescience Private limited.
Inter Branch sale and purchase transactions are treated as supply as per GST Law while as per general accounting norms
Interbranch transactions are branch transfer hence inter branch sales and purchases are excluded from overall sales and
purchases for the year.
NOTE - 45:
With regard to the creditors appearing in the balance sheet, it is hereby stated that the details as to which creditors are classified
as Micro, Small or Medium Enterprises as per the MSME Act were available with the company, so the creditors are shown in
totality in the financial statements and even the interest on delayed payment to MSME's as per the government regulations, if
any, is thus known and is provided in the books of accounts.
During the year, the company has deposited Rs. 0.50 Lakh as guarantee deposit for court case ongoing on company for misbrand
of product and the deposit is considered under deposits. (Reference note no. 34)
NOTE - 49
The company has recognized deposit received from dealer as long-term deposits under other long-term liabilities.
NOTE - 50: NOTE ON GST
Balance shown in Cash/Credit Ledger (GST Input and GST Output account) under the head Loans & Advances may not necessarily
reconcile with the GSTR-3B, GSTR 1 and GSTR 2A returns filled by the Company and the Suppliers of the Company. The same are
subject to reconciliation and rectification, whenever necessary and shall be finalized at the time of filling GST Annual Return by
the Company. The current GST Input credit/GST output liabilities are stated based on the books of accounts maintained by the
Company. Financial Impact on account of such reconciliation/rectification shall be quantified and accounted for only at the time
of the GST Annual return GSTR-9 of the Company.
NOTE - 51:
The Company has made Direct Export i.e., Bill to ship to model in which the goods are not physically arrived in Indian territory and
directly transferred to buyer's county from sellers' country, this transaction is not covered under supply definition under section
7 of Goods and Service Tax Act, 2017 and the same has been not considered under GST Turnover for the year.
NOTE - 52:
Interest Subsidy receivable: - The Industry Policy 2020 scheme for assistance to Micro, Small & Medium Enterprise interest
subsidy scheme, has become operational since 07/08/2020. The scheme has been introduced by the Government of Gujarat to
facilitate ease of doing business for the MSME sector in state of Gujarat. This scheme provides assistance for interest subsidy @
5% on term loan with maximum amount of ^ 25 lakhs per annum for a period of 5 years, the company after receiving the formal
sanction from the Competent authorities have calculated eligible interest subsidy receivable for the interest paid and the same is
accounted for the year under the head Interest subsidy receivables account.
The Company had provisioned Rs. 8.07 Lakh towards CSR based on profits calculated under Section 198 of the Companies Act,
2013 by March 31, 2025. However, based on a legal opinion obtained post completion of FY 2024-25, since the Profit After Tax
(PAT) for FY 2023-24 did not exceed Rs. 5 crores, the Company is not mandatorily required to spend on CSR under Section 135(1)
in FY 2024-25.
The Company intends to incur the CSR expenditure relating to this provision in FY 2025-26. As CSR is not applicable for FY 2024¬
25, the amount will be adjusted against CSR liability in subsequent years in accordance with Rule 7(1)(b) of the Companies
(Corporate Social Responsibility Policy) Rules, 2014, and Section 135 of the Companies Act, 2013.
For, Prakash Chandra Jain & Co. For, Aristo Bio-Tech and Lifescience Limited
Chartered Accountants
CA Dinesh C Jain Narendra Singh Barhat Ketan H Joshi
B.Com. FCA, FAFD (Chairman & Managing Director) (CFO & Whole time
Membership No.: 041235 (DIN-00310306) Director)
FRN No.:0002438C (DIN: 02089127)
Date: 29/05/2025
UDIN: 25041235BMFXXL2915 Kusum Barhat Diksha Peswani
(Director) (Company Secretary)
(DIN: 00310065) M No: ACS 76634
Place: Vadodara Date: 29/05/2025
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