We have audited the accompanying financial statements of GCCL Construction & Realities Limited
(“the Company”), which comprise the Balance Sheet as at 31st March, 2024, and the Statement of
Profit and Loss, the Cash Flow Statement, Statement of Changes in Equity for the year ended on that
date and notes to the financial statements, including a summary of significant accounting policies and
other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, except
for the possible effects of the matter described in the Basis for Qualified Opinion section of our report,
the aforesaid standalone financial statements give the information required by the Companies Act,
2013 (Act") in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of affairs of the Company as at 31 March 2024,
and its profit and other comprehensive loss, changes in equity and its cash flows for the year ended on
that date.
Basis for Qualified Opinion:
a) Company has failed to follow Proper Indian Accounting Standard as per companies act, 2013,
During the Financial year and in previous year company having long term Borrowings with zero
rate interest. As per Ind AS 109, Company is failed to provide notional interest as per EIR
method.
b) Company has failed to justify bifurcation of prior period items since many years.
c) Company has investment in quoted equity shares which required subsequent recognized at fair
value as per Ind AS 109 and 113. Company is failed to comply such Indian Accounting
Standard.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section
143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described
in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the Code of Ethics issued by the Institute of
Chartered Accountants of India together with the ethical requirements that are relevant to our audit of
the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder,
and we have fulfilled our other ethical responsibilities in accordance with these requirements and the
Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
Emphasis of Matter paragraph
In accordance with Ind AS 109, the initial assessment of all financial assets involves their fair value,
with potential adjustments. For financial assets not initially categorized as fair value through profit or
loss (FVTPL), transaction costs are also taken into account. Regarding the subsequent evaluation of
equity instruments, the standard practice is to measure them using the Fair Value through Profit and
Loss (FVTPL) method, unless management chooses the irrevocable option of Fair Value through
Other Comprehensive Income (FVTOCI). However, it's worth noting that management has opted to
follow the Acquisition Cost method for the subsequent assessment of all financial assets, deviating
from the typical FVTPL or FVTOCI approaches outlined in the Ind AS guidelines.
In line with Ind AS 109 guidelines, the initial assessment of Financial Liabilities that are not part of
regular trading and hedging operations is performed at their acquisition cost. As time goes on, these
liabilities are re-evaluated at amortized cost using the effective interest method. The accrued interest
is recognized as an expense in the profit and loss account. Nevertheless, when it comes to Non¬
current Financial Liabilities (referred to as Long Term borrowings), the management opts to measure
them at amortized cost, not applying the effective interest method and without incorporating interest
charges on the borrowings. These practices are deviating as per the Guidelines of Ind AS.
Other Information
The company’s Board of Directors is responsible for the other information. The other information
comprises the Annual report, but does not include the financial statements and our auditor’s report
thereon.
Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether such other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in
this regard.
Responsibility of Management for the Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the
Companies Act, 2013 (“the Act”) with respect to the preparation of these financial statements that give
a true and fair view of the financial position, financial performance and cash flows of the Company in
accordance with the accounting principles generally accepted in India, including the Indian accounting
Standards (Ind AS) specified under section 133 of the Act. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate implementation and maintenance of accounting
policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statement that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the Company or
to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the company’s financial reporting process.
Auditor’s Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the
Companies Act, 2013, we are also responsible for expressing our opinion on whether the
company has adequate internal financial controls system in place and the operating
effectiveness of such controls
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report.
• Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
The auditor communicates with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that the auditor identifies during the audit.
The auditor provides those charged with governance with a statement that the auditor has complied
with relevant ethical requirements regarding independence and communicate with them all
relationships and other matters that may reasonably be thought to bear on the auditor’s
independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the
Central Government of India in terms of sub-section (11) of section 143 of the Companies Act,
2013, we give in the “Annexure A’ statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
(1) We have sought and obtained all the information and explanations which to the best of
our knowledge and belief were necessary for the purposes of our audit;
(2) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books
(3) The Balance Sheet, the statement of Profit and Loss, and the Cash Flow Statement dealt
with by this Report are in agreement with the books of account.
(4) In our opinion, the aforesaid financial statements comply with the applicable Indian
Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.
(5) On the basis of written representations received from the directors as on 31 March, 2024,
taken on record by the Board of Directors, none of the directors is disqualified as on 31
March, 2024, from being appointed as a director in terms of Section 164(2) of the Act.
(6) With respect to the adequacy of the internal financial controls over financial reporting of
the Company and the operating effectiveness of such controls, refer to our separate
Report in “Annexure B”; and
(7) The provisions of section 197 read with schedule V of the Act are not applicable to the
Company for the year ended 31 March, 2024.
(8) Based on our examination, which included test checks, the Company has used an
accounting software(s) for maintaining its books of account for the financial year ended
March 31,2024 which has a feature of recording audit trail (edit log) facility and the same
has operated throughout the year for all relevant transactions recorded in the
software(s).
(9) Further, during the course of our audit we did not come across any instance of the audit
trail feature being tampered with. As proviso to Rule 3(1) of the Companies (Accounts)
Rules, 2014 is applicable from April 1, 2023, reporting under Rule 11 (g) of the
Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the
statutory requirements for record retention is not applicable for the financial year ended
March 31,2024.
(10)With respect to the other matters to be included in the Auditor’s Report in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the
best of our information and according to the explanations given to us:
a. The Company does not have any pending litigations which would impact its financial
position.
b. The management has represented that, to the best of it’s knowledge and belief, other
than as disclosed in the notes to the accounts, no funds have been advanced or
loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the company to or in any other person(s) or entity(ies),
including foreign entities (“Intermediaries”), with the understanding, whether recorded
in writing or otherwise, that the Intermediary shall, whether, 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”) or provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries;
c. The management has represented, that, to the best of it’s knowledge and belief, other
than as disclosed in the notes to the accounts, no funds have been received by the
company from any person(s) or entity(ies), including foreign entities (“Funding
Parties”), with the understanding, whether recorded in writing or otherwise, that the
company shall, whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Party
(“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries ; and
d. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
e. There is no transferring amount required to be transferred to Investor Education and
Protection Fund by the company. Hence, question of delay in transferring such
amount does not arise.
For, Hiren D Shah & Associates
Chartered Accountants
FRN: 135212W
Yash N Desai (Partner)
Place: Ahmedabad Membership No.: 179659
Date: 29/04/2024 UDIN:24179659BKGXAF4141
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