Notes to Accounts of Gayatri Highways Ltd.

Mar 31, 2025

Gayatri Highways Limited (GHL) has relinquished all its rights including but not limited to rights to receive dividend, right of voting, right to appoint directors, right to receive any money from SMTL with effect from 6th January, 2025 which was approved by the members through postal ballot and SMTL is ceased to be subsidiary in GHL.

i. Sai Maatarini Tollways Limited (SMTL)

Gayatri Highways Limited (GHL) has initially impaired its Investment in FY 2022-23 based on IndAS-36 - “Impairment of Assets”. As per the clause 9 of Ind AS 36, GHL has tested it investments in SMTL for impairment and estimated the recoverable amount of the investment as zero based on the IDBI (the Lead Bank of SMTL) provided sanction letter vide dated 15 July, 2022, with the terms and conditions which contain the following:

“SMTL/its Sponsors shall recompense the lenders, from all the present and future payments from NHAI, in relation to the project, towards Termination payment or any claim by SMTL or its sponsors or any other identified/unidentified claims, if any. The said payments from NHAI shall be for the sole benefit of Lenders (Senior Lenders and Sub-debt Lenders) and shall be deposited in escrow account maintained with lead bank or in any other account identified by the lead bank for the benefit of Lenders”.

As per the above sanction letter, the bank clearly mentioned that any claims received by the SMTL is payable only to the Lenders and not to sponsors (Equity or Quasi-Equity). Further, Sai Maatarini Tollways Limited (SMTL) has entered into a settlement agreement with NHAI towards the full and final settlement of all dues and Claims vide dated 30.03.2023. As per IDBI sanction letter, the investment of GHL (Equity and Quasi-Equity (ZISL)) in SMTL is not realizable and any claim amounts will be paid only to the lenders.

Accordingly, GHL has impaired its Equity Investment and written off the instruments entirely equity in nature in SMTL. During the current financial year 2024-25, GHL has relinquised its rights in SMTL (refer above note) and derecognised the investment, accordingly impairment loss earlier recognised is derecognised.

ii. Indore Dewas Tollways Limited (IDTL)

Gayatri Highways Limited (GHL) has initially impaired its Investment in FY 2022-23 based on the clause 9 of Ind AS 36 - “Impairment of Assets”, GHL has tested it investments in IDTL for impairment and estimated the recoverable amount of the investment as zero based on the following basis:

The IDTL’s Project was terminated by NHAI and the toll collections are taken over by NHAI vide its letter dated 27.05.2022. Further, Loan accounts of IDTL have become NPA and Lenders have filed the cases before DRT and NCLT (under IBC) for recovery of loan.

The conciliation/settlement offer of the Company for Rs.270 Crores was not accepted by NHAI. Further, NHAI has informed that they will not pay anything to the company towards termination payment as the premium due to NHAI is more than the termination payment. In fact as per books of IDTL, the balance premium amount of Rs.566 Crores as on 31st March, 2023 is payable by IDTL to NHAI. The IDTL bank accounts are freezed and no operations are allowed except payment to IDTL lenders. The amount realizable from NHAI will not be sufficient to repay the senior lenders dues which are Rs.585.52 Crores as on 31st March, 2023.

As per the above, any amount realizable from NHAI the lenders will be adjusted to senior lenders dues and nothing will be available to Equity or Quasi-Equity.

Accordingly, GHL has impaired its Equity Investment and written off the instruments entirely equity in nature in IDTL. The following are the Investments impaired w.r.t. IDTL:

iii. Balaji Highways Holding Private Limited (BHHPL)

Gayatri Highways Limited (GHL) has initially impaired its Investment in FY 2023-24 based on the clause 9 of Ind AS 36 - “Impairment of Assets”, GHL has tested it investments in BHHPL for impairment and estimated the recoverable amount of the investment as zero based on following basis:

1) The net worth of the BHHPL as on 31st March 2024 is negative Rs.14.07 Lakhs.

2) There are no regular operations generating revenue.

3) Only investment of BHHPL is in IDTL which was already in losses and the value of investment is impaired. Accordingly, GHL has impaired its Equity Investment in BHHPL. Further, the net worth of the BHHPL as on 31st March, 2025 is negative Rs.15.21 Lakhs.

Note on Investments held for sale

The Company is actively looking to sell its entire stake held in HKR Roadways Limited to prospective buyers. Accordingly, the investments held by the Company in HKR Roadways Limited is reclassified as Investments held for sale (under Current Assets) in accordance with Ind AS 105 Non-Current Assets held for sale and Discontinued operations.

No trade or other receivables are due from directors or other officers of the company either severally or jointly with any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is partner, a director or a member.

Trade receivables are non-interest bearing and are generally receivable on presentation of invoice.

Trade Receivables Ageing Schedule:

(i)Undisputed Trade receivables considered good and unsecured:

- Outstanding for following periods from due date of payment

(b) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing annual general meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

iii) The above facilities carry an annual interest rate of 15% (31st March 2024: 15%).

iv) Settlement Agreement - The company entered into a settlement agreement dated 14th September 2020 with Gayatri Projects Limited and IL&FS Financial Services Limited (IFIN). As per this, the existing principal outstanding f 8,409.83 Lakhs will be repaid in 11 equal monthly instalments commencing from 15.09.2020 including interest accrued thereon.

v) The company had defaulted in repayment of Term loan of ? 3,822.65 Lakhs and interest of ,193.21 Lakhs there on and the same is outstanding to IFIN as on 31st March 2025. (refer note no.16)

vi) Interest on above term loan was recognized only on principal amount, as the company has not received any Balance confirmation from IFIN. Further the interest is recognised only upto 31st March, 2023.

vii) Short-term borrowings from related parties of ^7,904.70 Lakhs represents interest free loans repayable on demand.

viii) Terms of Preference Shares

a. The Company has only one class of 9% Non-convertible cumulative redeemable preference shares (NCRPS) having a par value of ? 10 per share. Each holder of preference shares is entitled to one vote per share in the matter of preference share holders. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing annual general meeting.

b. NCRPS shall be redeemed upon completion of a period of 10 years from the date on which they are issued. The tenure of the NCRPS may exceed 10 years from the date of issue, but shall in no circumstances exceed 20 years from the date of issue. However, any variation (extension or reduction) in the tenure of NCRPS will be subject to the mutual agreement of both parties.

c. As per the Indian accounting standard 32, a preference share that provides for mandatory redemption by the issuer for a fixed or determinable amount at a fixed or determinable future date, or gives the holder the right to require the issuer to redeem the instrument at or after a particular date for a fixed or determinable amount, is a financial liability. Accordingly, 9% Non-covertible cumulative redeemable preference shares were treated as a financial liability and the finance cost (as interest) on such liability was also recognised.

Impairment loss on certain investments in subsidiaries and joint ventures has been recognised considering the performance of these companies and their future projections.

The Company has long-term investments in subsidiaries which are measured at cost less impairment or at fair value through profit or loss. The management assesses the performance of these entities including the future projections, relevant economic and market conditions in which they operate to identify if there is any indicator of impairment in the carrying value of the investments. In case indicators of impairment exist, the impairment loss is measured by estimating the recoverable amounts based on available information. The recoverable amount estimates are based on judgments, estimates, assumptions and market data as on reporting date and ignore subsequent changes in the economic and market conditions.

During the year ended 31st March, 2024, the performance of subsidiaries coupled with the relevant economic and market indicators resulted in indicators of impairment in respect of certain entities. Accordingly, the Company determined the recoverable amounts of the long term assets and other exposures related to these entities and recorded a provision of Rs. 10 lakhs for the year ended 31st March, 2024.

28 Employee Benefits Gratuity

The Company has a defined benefit gratuity plan and governed by payment of Gratuity Act, 1972. The benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment.

The Company’s risk management is carried out by a central treasury department (of the group) under policies approved by the board of directors. The board of directors provides written principles for overall risk management, as well as policies covering specific areas, such interest rate risk, credit risk and investment of excess liquidity.

a. Credit risk

Credit risk arises from cash and cash equivalents, trade receivables, investments carried at amortized cost and deposits with banks and financial institutions.

Credit risk management

The finance function of the Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics.

Significant increase in credit risk on an on-going basis throughout each reporting period. In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 30 days past due. A default on a financial asset is when the counterparty fails to make contractual payments when they fall due. This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.

Expected credit loss for trade receivables under simplified approach

The Company recognises significant income from toll road on the basis of actual collection and hence there are no significant outstanding. Hence, as the Company does not have significant credit risk, it does not present the information related to ageing pattern. The company has widespread customer base and no single customer accounted for 10% or more of revenue in any of the years indicated.

During the periods presented, the Company made no write-offs of trade receivables and it does not expect to receive future cash flows or recoveries from collection of cash flows previously written off.

b. Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company’s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

32 Capital Management

The Company’s objectives when managing capital are to:

Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company monitors its capital using gearing ratio, which is net debt divided by total equity. Net debt includes long term borrowings, short term borrowings, current maturities of long term borrowings less cash and cash equivalents and other bank balances.

34 Contingent liabilities
	As at	As at
	31st March 2025	31st March 2024
Pledge of equity shares held in subsidiaries and jointly controlled entities for loans taken by them Sai Maatarini Tollways Limited (GHL has relinquished its rights in equity shares of SMTL w.e.f. 6th January, 2025, the outstanding loan given is as on 31st December, 2024)	2,17,089.05	2,11,996.16
Indore Dewas Tollways Limited	62,085.31	62,085.31
Gayatri Jhansi Roadways Limited	—	303.17
Gayatri Lalitpur Roadways Limited	—	524.37
HKR Roadways Limited	69,073.88	69,075.99

36 The Company’s principal objectives are to provide infrastructural facilities either on its own or through incorporating and investing in special purpose vehicles. Consequently, the Company has significant investments in its jointly controlled companies and other entities. On the basis of assessment of the nature of business of the Company, duly supported by an independent opinion from an expert, the management is of the view that the Company is not a Non banking financial institution under the provisions of Section 45-IA of the Reserve Bank of India Act, 1934.

37 Going Concern

Company has been incurring operating losses during the past years and the current liabilities of the Company exceed its current assets. Notwithstanding the above, the accompanying financial statements have been prepared on going concern basis as the management believes that the subsidiaries, associates and jointly controlled entities will generate sufficient cash flows to support the Company in foreseeable future.

38 Segment reporting

The Company primarly engaged in the business of "construction, operations and maintenance of roads, highways, vehicle bridges and tunnels and toll roads", which is as per Indian Accounting Standard - 108 on "Operating Segment" is considered to be the only reportable business segment. The company is operating in India which is considered as a single geographical segment.

39 Other information forming part of the financial statements

a) Capital Work in Progress

No Capital Work in Progress exist in the books of accounts of the company as at the reporting date.

b) Intangible Assets under Development

No Intangible Assets under Development exist in the books of accounts of the company as at the reporting date.

c) Benami property

The company does not have any proceedings that have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

d) Borrowings from Banks or Financial Institutions on the Basis of Security of Current Assets

The company has not obtained any borrowings on the basis of security of Current Assets during the reporting period.

e) Title deeds of Immovable Property not held in name of the Company

No immovable property held in the name of the company, hence no such property exist in the company’s books of accounts as at reporting date.

f) Wilful Defaulter

The company is not declared as wilful defaulter by any bank or financial Institution or other lender from whom the borrowings are obtained.

g) Charges or Satisfaction yet to be registered with Registrar of Companies beyond the statutory period

The company has no charges or satisfaction yet to registered with Registrar of companies as at the reporting date.

j) Corporate Social Responsibilty related Disclosures

CSR is not applicable to the company , as neither of company’s turnover exceeded 1000 crores nor networth exceeded 500 crores nor net profit exceeded 5 Crores during the preceeding financial year.

k) Details of Crypto or Virtual Currency

The Company does not hold any investments in the form of Crypto or Virtual Currency.

l) Derivative Instruments and other Un-hedged foreign currency exposure

There are no derivative contracts oustanding at the close of the year.

40 Events after the reporting period

There were no events occuring after the balance sheet date affecting the aforesaid financial statement.

41 Previous year’s figures have been regrouped / reclassified wherever necessary to conform to the current year’s classification / disclosure.

42 Figures have been rounded off to the nearest rupees in Lakhs.

This is the Summary of Material

Accounting Policies and Other Explanatory Information referred to in our report of even date

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Mar 31, 2024

f) Provisions and contingent liabilities

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time
value of money is material, provisions are discounted using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to
the passage of time is recognised as a finance cost.

g) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of changes in
value.

h) Taxes

Income tax expense comprises of current and deferred tax. Current income tax assets and liabilities is
measured at the amount expected to be recovered from or paid to the tax authorities in accordance with the
Indian Income Tax Act, 1961. Current income tax relating to items recognised outside profit or loss is
recognised outside profit or loss (either in other comprehensive income or in equity). Current tax items are
recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically
evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are
subject to interpretation and establishes provision where appropriate.

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax
liabilities are recognised for all taxable temporary differences.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax
asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are
recognised to the extent that it has become probable that future taxable profits will allow the deferred tax
asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or
substantively enacted at the reporting date. Deferred tax assets and deferred tax liabilities are offset if a
legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred
taxes relate to the same taxation authority.

i) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity.

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded
at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial
asset. Purchases or sales of financial assets that require delivery of assets within a time frame established
by regulation or convention in the market place (regular way trades) are recognised on the trade date,
i.e., the date that the Company commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

- Debt instruments at amortised cost

- Debt instruments at fair value through other comprehensive income (FVTOCI)

- Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

- Equity instruments measured at fair value through other comprehensive income (FVTOCI)

Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised cost if both the following conditions are met:

a. The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and

b. Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.

This category is the most relevant to the Company. After initial measurement, such financial assets are
subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is
calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses
arising from impairment are recognised in the profit or loss. This category generally applies to trade receivables
and loans.

Equity investments:

All equity investments in jointly controlled entities are measured at cost less diminution other than temporary.
All equity investments in scope of Ind AS 109 are measured at fair value. Equity investments which are held
for trading are classified as FVTPL. For all other equity investments, the Company may make an irrevocable
election to present in OCI subsequent changes in fair value. The Company makes such election on an
instrument by instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVOCI, then all fair value changes on the
instrument, excluding dividends, are recognised in OCI. There is no recycling of amounts from OCI to P&L,
even on sale of investment. Equity instruments included within the FVTPL category are measured at fair
value with all changes recognised in the P&L.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from the Company''s balance sheet) when:

a. the rights to receive cash flows from the asset have expired, or

b. the Company has transferred its rights to receive cash flows from the asset, and (i) the Company has
transferred substantially all the risks and rewards of the asset, or (ii) the Company has neither transferred
nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and
recognition of impairment loss on debt instruments.

B) Financial Liability

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss, loans and borrowings, payables as appropriate. All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
The Company''s financial liabilities include trade and other payables, loans and borrowings including bank
overdrafts, and financial guarantee contracts.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition
as at fair value through profit or loss.

Loans and borrowings

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are
recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation
process. Amortised cost is calculated by taking into account any discount or premium on acquisition and
fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the
statement of profit and loss.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made
to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in
accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a
liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the
guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined
as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or modification
is treated as the derecognition of the original liability and the recognition of a new liability. The difference in
the respective carrying amounts is recognised in the statement of profit or loss.

Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities.
For financial assets which are debt instruments, a reclassification is made only if there is a change in the
business model for managing those assets. If the Company reclassifies financial assets, it applies the
reclassification prospectively from the reclassification date which is the first day of the immediately next
reporting period following the change in business model. The Company does not restate any previously
recognised gains, losses (including impairment gains or losses) or interest.

j) Fixed assets

Tangible assets are stated at cost of acquisition, less accumulated depreciation thereon. The cost of an item
of fixed asset comprises its purchase price, including import duties and other non-refundable taxes or levies
and any directly attributable cost of bringing the asset to its working condition for its intended use; any trade
discounts and rebates are deducted in arriving at the purchase price.

Intangible assets represent commercial rights to collect toll fee in relation to roads projects which has been
accounted at the cost incurred on the project activity towards reconstruction, strengthening, widening,
rehabilitation of the roads on build, operate and transfer basis. It includes all direct material, labour and
subcontracting costs, inward freight, duties, taxes, obligation towards negative grant payable to
concessionaires, if any, and any directly attributable expenditure on making the commercial right ready for its
intended use.

k) Depreciation and amortization

Depreciation of tangible assets is provided on the basis of straight line method in accordance with Schedule
II to the Companies Act, 2013.

l) Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment
based on internal/external facto? An impairment loss is recognized wherever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and
value in use. In assessing value in use, the estimated future cash flows are discounted to their present value
at the weighted average cost of capital.

m) Borrowings Costs

In Case of concession arrangement under financial asset model, borrowing Costs that are attributable to the
acquisition and/or construction of the infrastructure are charged to The Statement of Profit and Loss in the
period in which such costs are incurred.

In Case of concession arrangement under intangible asset model, borrowing cost of qualifying assets are
capitalized as part of cost of such assets till such time the asset is ready for its intended use. A qualifying
asset is one that requires substantial period of time to get ready for its intended use. Any income on the
temporary investments of borrowings is deducted from the borrowing cost. All borrowing cost subsequent to
the capitalization of the intangible assets are charged to the Statement of Profit and Loss in the period in
which such costs are incurred.

n) Foreign currency transactions and derivatives

a. The reporting currency of the company is the Indian Rupee.

b. Foreign currency transactions are recorded on initial recognition in the foreign currency, using the exchange
rate on the date of the transaction.

c. At each Balance Sheet date, foreign currency monetary items are reported using the closing rate.
Exchange differences that arise on settlement of monetary items or on reporting at each balance sheet
date of monetary items at the closing rate are adjusted in pre-operative expenses.

o) Employee benefits

GRATUITY - Company''s liability towards gratuity is determined by independent actuaries, using the projected
unit credit method.

Past service costs are recognised immediately in the statement of profit and loss. The net interest cost is
calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value
of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions for
defined benefit obligation and plan assets are recognised in OCI in the period in which they arise. When the
benefits under a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to

past service or the gain or loss on curtailment is recognised immediately in the statement of profit and loss.
The Company recognises gains or losses on the settlement of a defined benefit plan obligation when the
settlement occurs.past service or the gain or loss on curtailment is recognised immediately in the statement
of profit and loss. The Company recognises gains or losses on the settlement of a defined benefit plan
obligation when the settlement occurs.

p) Recent Accounting Pronouncements:

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA
amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian
Accounting Standards) Amendment Rules, 2023, applicable from April 1st, 2023, as below:

1) Ind AS 1 - Presentation of Financial Statements: The amendments require companies to disclose
their material accounting policies rather than their significant accounting policies. Accounting policy
information, together with other information included in an entity''s financial statements, is material when
it can reasonably be expected to influence decisions of primary users of general purpose financial
statements. The Company does not expect this amendment to have any significant impact in its financial
statements.

2) Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors: The amendments
will help entities to distinguish between accounting policies and accounting estimates. The definition of
a change in accounting estimates has been replaced with a definition of accounting estimates. Under
the new definition, accounting estimates are "monetary amounts in financial statements that are subject
to measurement uncertainty". Entities develop accounting estimates if accounting policies require items
in financial statements to be measured in a way that involves measurement uncertainty. The Company
does not expect this amendment to have any significant impact in its financial statements.

3) Ind AS 12 - Income Taxes: The amendments clarify how companies account for deferred tax on
transactions such as leases and decommissioning obligations. The amendments narrowed the scope
of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no
longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible
temporary differences. The Company does not expect this amendment to have any significant impact in
its financial statements.

A. Actuarial Risk:

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:
Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result
into an increase in Obligation at a rate that is higher than expected.

Variability in mortality rates: If a ctual mortality rates are higher than assumed mortality rate assumption than
the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death
benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of
the assumed salary growth and discount rate.

Variability in withdrawal rates: I factual withdrawal rates are higher than assumed withdrawal rate assumption
than the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the
benefits are vested as at the resignation date.

B. Investment Risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may
not be the fair value of instruments backing the liability. In such cases, the present value of the assets is
independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded
status if there are significant changes in the discount rate during the inter-valuation period.

C. Liquidity Risk:

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of
benefits. If some of such employees resign/retire from the company there can be strain on the cashflows.

28 Employee Benefits Gratuity (continued...)

D. Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial
markets.One actuarial assumption that has a material effect is the discountrate. The discountrate reflects the
time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan
benefits & viceversa. This assumption depends on the yields on the corporate/government bonds and hence
the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

E. Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the
legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies
to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit
Obligation and the same will have to be recognized immediately in the year when any such amendment is
effective.

a. Credit risk

Credit risk arises from cash and cash equivalents, trade receivables, investments carried at amortized cost and
deposits with banks and financial institutions.

Credit risk management

The finance function of the Company assesses and manages credit risk based on internal credit rating system.
Internal credit rating is performed for each class of financial instruments with different characteristics.

The Company considers the probability of default upon intitial recognition of asset and whether there has been a
significant increase in credit risk on an on-going basis throughout each reporting period. In general, it is presumed
that credit risk has significantly increased since initial recognition if the payments are more than 30 days past due. A
default on a financial asset is when the counterparty fails to make contractual payments when they fall due. This
definition of default is determined by considering the business environment in which entity operates and other
macro-economic factors.

Expected credit loss for trade receivables under simplified approach

The Company recognises significant income from toll road on the basis of actual collection and hence there are no
significant outstanding. Hence, as the Company does not have significant credit risk, it does not present the information
related to ageing pattern. The company has widespread customer base and no single customer accounted for 10%
or more of revenue in any of the years indicated.

During the periods presented, the Company made no write-offs of trade receivables and it does not expect to receive
future cash flows or recoveries from collection of cash flows previously written off.

b. Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability
of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the
nature of the business, the Company maintains flexibility in funding by maintaining availability under committed
facilities.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the
basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.
In addition, the Company''s liquidity management policy involves projecting cash flows in major currencies and
considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against
internal and external regulatory requirements and maintaining debt financing plans.

32 Capital Management

The Company''s objectives when managing capital are to:

Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders
and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company monitors its capital using gearing ratio, which is net debt divided by total equity. Net debt includes long
term borrowings, short term borrowings, current maturities of long term borrowings less cash and cash equivalents
and other bank balances.

36 The Company''s principal objectives are to provide infrastructural facilities either on its own or through incorporating
and investing in special purpose vehicles. Consequently, the Company has significant investments in its jointly
controlled companies and other entities. On the basis of assessment of the nature of business of the Company, duly
supported by an independent opinion from an expert, the management is of the view that the Company is not a Non
banking financial institution under the provisions of Section 45-IA of the Reserve Bank of India Act, 1934.

37 Going Concern

The Company has been incurring operating losses during the past years and the current liabilities of the Company
exceed its current assets. Notwithstanding the above, the accompanying financial statements have been prepared
on going concern basis as the management believes that the subsidiaries, associates and jointly controlled
entities will generate sufficient cash flows to support the Company in foreseeable future.

38 Segment reporting

The Company primarly engaged in the business of "construction, operations and maintenance of roads, highways,
vehicle bridges and tunnels and toll roads", which is as per Indian Accounting Standard - 108 on "Operating
Segment" is considered to be the only reportable business segment. The company is operating in India which is
considered as a single geographical segment.

39 Other information forming part of the financial statements

a) Capital Work in Progress

No Capital Work in Progress exist in the books of accounts of the company as at the reporting date.

b) Intangible Assets under Development

No Intangible Assets under Development exist in the books of accounts of the company as at the reporting
date.

c) Benami property

The company does not have any proceedings that have been initiated or pending against the company for
holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the
rules made thereunder.

d) Borrowings from Banks or Financial Institutions on the Basis of Security of Current Assets

The company has not obtained any borrowings on the basis of security of Current Assets during the reporting
period.

e) Title deeds of Immovable Property not held in name of the Company

No immovable property held in the name of the company, hence no such property exist in the company''s
books of accounts as at reporting date.

f) Wilful Defaulter

The company is not declared as wilful defaulter by any bank or financial Institution or other lender from whom
the borrowings are obtained.

g) Charges or Satisfaction yet to be registered with Registrar of Companies beyond the statutory period

The company has no charges or satisfaction yet to registered with Registrar of companies as at the reporting
date.

h) Relationship with Struck off Companies

The company has no Relationship with Struck off Companies as at the reporting date.

39 Other information forming part of the financial statements (continued)

j) Corporate Social Responsibilty related Disclosures

CSR is not applicable to the company , as neither of company''s turnover exceeded 1000 crores nor networth
exceeded 500 crores nor net profit exceeded 5 Crores during the preceeding financial year.

k) Details of Crypto or Virtual Currency

The Company does not hold any investments in the form of Crypto or Virtual Currency.

l) Derivative Instruments and other Un-hedged foreign currency exposure

There are no derivative contracts oustanding at the close of the year.

40 Events after the reporting period

There were no events occuring after the balance sheet date affecting the aforesaid financial statement.

41 Previous year''s figures have been regrouped / reclassified wherever necessary to conform to the current year''s
classification / disclosure.

42 Figures have been rounded off to the nearest rupees in Lakhs.

This is the Summary of Significant Accounting Policies and Other
Explanatory Information referred to in our report of even date

For PRSV & Co. LLP For and on behalf of Board of directors of

Chartered Accountants Gayatri Highways Limited

Firm Regn. No: S200016

Y.Venkateswarlu M.V.Narasimha Rao Ch. Krishnamurthy

Partner Director Director

M.No.:222068 DIN: 06761474 DIN: 08661228

Place : Hyderabad K.G.Naidu P.K.Sahoo P.Raj Kumar

Date : 29th May 2024 Chief Executive Officer Chief Financial Officer Company Secretary

Place : Hyderabad
Date : 29th May 2024