Provisions are recognised when the Company has a present obligation (legal or
constructive) as a result of a past event, and 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. When the Company expects some
or all of a provision to be reimbursed, for example, under an insurance contract, the
reimbursement is recognised as a separate asset, but only when the reimbursement is
virtually certain. The expense relating to a provision is presented in the statement of
profit or loss net of any reimbursement.

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.

4. Critical accounting estimates and assumptions

The preparation of the Company’s financial statements requires management to make
judgements, estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of
contingent liabilities. Uncertainty about these assumptions and estimates could result in
outcomes that require a material adjustment to the carrying amount of assets or
liabilities affected in future periods.

4.1. Estimates and assumption

The key assumptions concerning the future and other key sources of estimation
uncertainty at the reporting date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial
year, are described below. The Company based its assumptions and estimates on

parameters available when the financial statements were prepared. Existing
circumstances and assumptions about future developments, however, may change due
to market changes or circumstances arising that are beyond the control of the Company.
Such changes are reflected in the assumptions when they occur.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the Balance
Sheet cannot be measured based on quoted prices in active markets, their fair value is
measured using valuation techniques. The inputs to these models are taken from
observable markets where possible, but where this is not feasible, a degree of judgement
is required in establishing fair values. Judgements include considerations of inputs such
as liquidity risk, credit risk and volatility. Changes in assumptions relating to these
factors could affect the reported fair value of financial instruments. See Note 25 for
further disclosures.

Taxes

Deferred tax assets are recognised for unused tax credits to the extent that it is probable
that taxable profit will be available against which the losses can be utilised. Significant
management judgement is required to determine the amount of deferred tax assets that
can be recognised, based upon the likely timing and the level of future taxable profits
together with future tax planning strategies. Further details on taxes are disclosed in
Note 17.

Property, plant and equipment

Refer Note 3.4 for the estimated useful life of Property, plant and equipment. The
carrying value of Property, plant and equipment has been disclosed in Note 5.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds
its recoverable amount, which is the higher of its fair value less costs of disposal and its
value in use. The fair value less costs of disposal calculation is based on available data
from binding sales transactions, conducted at arm’s length, for similar assets or
observable market prices less incremental costs for disposing of the asset. The value in
use calculation is based on a DCF model. The cash flows are derived from the budget for
the next five years and do not include restructuring activities that the Company is not
yet committed to or significant future investments that will enhance the asset’s
performance of the CGU being tested. The recoverable amount is sensitive to the
discount rate used for the DCF model as well as the expected future cash-inflows and the
growth rate used for extrapolation purposes.

(ii) Terms / Rights attached to equity shares:

The Company has one class of share having par value of Rs. 10 per share. Each shareholder
is eligible for one vote per share held. The final dividend proposed by the Board of Directors
is subject to 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.

Note:

(i) Information required to be furnished as per Section 22 of the Micro, Small and
Medium Enterprises Development Act, 2006 (MSMED Act) and Schedule III of the
Companies Act, 2013 for the year ended March 31, 2025. This information has been
determined to the extent such parties have been identified on the basis of information
available with the Company and relied upon by auditors.

c Terms and conditions of transactions with related parties

Loans taken From the related party are interest free.

d Commitments with related parties

The Company does not have any commitment to the related party as at March 31, 2025
(Previous year: Nil).

25.1 Set out below is a comparison, by class, of the carrying amounts and fair value of
the Company’s financial instruments, other than those with carrying amounts that are
reasonable approximations of fair values:

25.2 The management assessed that the fair values of cash and cash equivalents,
trade receivables, trade payables, short term borrowings, and other financial
liabilities approximates their carrying amounts largely due to the short-term
maturities of these instruments.

25.3 For Financial assets and liabilities that are measured at fair value, the carrying
amounts are equal to their fair values.

25.4 The fair value of the financial assets and financial liabilities is included at the
amount at which the instruments could be exchanged in a current transaction
between willing parties, other than in a forced or liquidation sale.

25.5 The following methods and assumptions were used to estimate the fair values:

25.5.1 The securities being listed, the fair value has been taken at the market
rates of the same as on the reporting dates. They are classified as Level 1 fair values
in fair value hierarchy.

25.5.2 The fair valu es for loans, security deposits approximates their carrying
amounts. They are classified as Level 3 fair values in the fair value hierarchy due to
the inclusion of unobservable inputs including counterparty credit risks, which has
been assessed to be insignificant.

Note 26: Fair Value Hierarchy

The following are the judgements and estimates made in d etermining the fair values
of the financial instruments that are (a) recognized and measured at fair value and (b)
measured at amortized cost and for which fair value are disclosed in the financial
statements. To provide an indication about the reliability of the inputs used in
determining fair value, the Company has classified its financial instruments into the
three levels of fair value measurement as prescribed under the Ind AS 113 "Fair Value
Measurement”. An explanation of each level follows underneath the tables.

26.2 During the year ended March 31, 2025 and March 31, 2024, there were no
transfers between Level 1 and Level 2 fair value measurements, and no transfer into
and out of Level 3 fair value measurements

26.3 Explanation to the fair value
hierarchy

The Company measures financial instruments, such as, quoted investments at fair
value at each reporting date. Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. All assets and liabilities for which fair value is
measured or disclosed in the financial statements are categorised within the fair value
hierarchy, described as follows, based on the lowest level input that is significant to the
fair value measurement as a whole:

- Level 1 Hierarchy includes financial instruments measured using quoted prices.

This includes listed equity instruments that have quoted price. The fair
value of all equity instruments which are traded in the stock exchanges
is valued using the closing price as at the reporting period.

- Level 2 The fair value of financial instruments that are not traded in an active

market is determined using valuation techniques which maximise the
use of observable market data and rely as little as possible on entity-
specific estimates. If all significant inputs required to fair value an
instrument are observable, the instrument is included in level 2.

- Level 3 If one or more of the significant inputs is not based on observable

market data, the instrument is included in level 3. This is the case for
unlisted equity securities, contingent consideration included in level 3.

Note 27: Financial Risk Management

Interest rate risk arises from the sensitivity o f financial assets and liabilities to
changes in market rates of interest. As at March 31, 2025, none of the Company's
Borrowings are at fluctuating rate of interest (Previous year: Nil)

27.1 Credit Risk

Credit risk is the risk that a counterparty will not meet its obligations under a
financial instrument or customer contract, leading to a financial loss. The Company
is exposed to credit risk from its operating activities (primarily trade receivables) and

from its financing activities, including deposits with banks, foreign exchange
transactions and other financial instruments.

27.2 Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its present and
future cash and collateral obligations without incurring unacceptable losses. The
Company's objective is to, at all times maintain optimum levels of liquidity to meet its
cash and collateral requirements. The Company closely monitors its liquidity position
and deploys a robust cash management system. It maintains adequate sources of
financing including term loans, debt and overdraft from domestic banks at an
optimised cost.

27.3 Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument
will fluctuate because of changes in market prices. Market risk comprises three types of
risk: interest rate risk, currency risk and other price risk, such as equity price risk and
commodity risk. Financial instruments affected by market risk include borrowings,
deposits, trade and other receivables, trade and other payables.

Interest Rate Risk

The Company is exposed to risk d ue to interest rate fluctuation, on the following:

a. Interest rate risk arises from the sensitivity of financial assets and liabilities to
changes in market rates of interest.

b. As at March 31, 2025, none of the Company's Borrowings are at fluctuating rate
of interest (Previous year: Nil)

For the purpose of the Company’s capital management, capital includes issued equity
capital and all other equity reserves attributable to the equity holders of the Company.
The primary objective of the Company’s capital management is to ensure that it
maintains an efficient capital structure and healthy capital ratios in order to support
its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments to it in light of
changes in economic conditions or its business requirements. To maintain or adjust
the capital structure, the Company may adjust return capital to shareholders or issue
new shares. The Company monitors capital using a gearing ratio, which is net debt
divided by total capital plus net debt. The Company includes within net debt, interest
bearing loans and borrowings less cash and short-term deposits (including other bank
balance).

In order to achieve this overall objective, the Company’s capital management, amongst
other things, aims to ensure that it meets financial covenants attached to the interest¬
bearing loans and borrowings that define capital structure requirements. Breaches in
meeting the financial covenants would permit the bank to immediately call loans and
borrowings. There have been no breaches in the financial covenants of any interest¬
bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital
during the years ended March 31, 2025 and March 31, 2024.

Loan covenants

Under the terms of the major borrowing facilities, the Company has complied with the
required financial covenants through out the reporting periods.

Note 29: Segment Reporting
Primary Segment

The Company's business activity falls within a single operating business segment of
"Building of complete constructions or part thereof, Civil Engineering" which in the
context of Indian Accounting Standard 108 'Operating Segment', constitutes a single
reportable primary business segment.

Secondary Segment

The risk and returns of the Company are not influenced by geographical location of its
operations or location of its customers. Both are situated in India.

Note 30: Additional Disclosure required as per Schedule III of Companies Act, 2013

a. Utilisation of borrowed funds

During the year ended March 31, 2025, and March 31, 2024, the Company has not
advanced or loaned or invested funds (either borrowed funds or share premium or kind
of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries)
with the understanding (whether recorded in writing or otherwise) that the
Intermediary shall:

i) 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

ii) provide any guarantee, security or the like to or on behalf of the ultimate
beneficiaries.

Further, during the year ended March 31, 2025, and March 31, 2024, 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:

i) 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

ii) provide any guarantee, security, or the like on behalf of the ultimate beneficiaries.

b. Details of crypto currency or virtual currency

The Company has not invested or traded in Crypto Currency or Virtual Currency
during the year ended March 31, 2025. (PY: Nil)

c. Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding
benami property under the Prohibition of Benami Property Transactions Act, 1988 (as
amended in 2016) (formerly the Benami Transactions (Prohibition) Act, 1988 (45 of
1988)) and Rules made thereunder during the year ended March 31, 2025 (PY: Nil).

d. Willful Defaulter

The Company has not been de clared Willful Defaulter by any bank or financial
institution or government or any government authority during the year ended March
31, 2025 (PY: Nil).

e. Undisclosed Income

The Company has not surrendered or disclosed as income any transactions not
recorded in the books of accounts in the course of tax assessments under the Income
Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income
Tax Act, 1961) during the year ended March 31, 2025 (PY: Nil).

f. Relationship with struck off companies

The Company does not have any transactions with the companies struck off under
section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956
during the year ended March 31, 2025 (PY: Nil)

g. Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under clause (87) of
section 2 of the Act read with the Companies (Restriction on number of Layers) Rules,
2017.

h. Compliance with approved Scheme(s) of Arrangements

The Company has not entered into any scheme of arrangement during the year.

i. Valuation of Property, Plant a nd Equipments, right-of-use assets and intangible asset

The Company has not revalued its Property, Plant and Equipments, right-of-use assets
and intangible asset during the current or previous year.

Note 31: Code of Social Security

The Code of Social Security, 2020 ('Code') has been notified in the Official Gazette of
India on September 29, 2020, which could impact the contributions of the Company
towards certain employment benefits. The effective date from which changes are
applicable is yet to be notified. Impact, if any, of the change will be assessed and
accounted in th period of notification of the relevant provisions.

Note 32: Events occuring after the reporting period

The Company evaluates events and transactions that occur subsequent to the balance
sheet date but prior to the approval of financial statements to determine the necessity
for recognition and/or reporting of subsequent events and transactions in the financial
statements. As of June 26, 2025, there were no subsequent events and transactions to
be recognized or reported that are not already disclosed.

Note 33: Material Regrouping

Appropriate adjustments have be en made in the statements of assets and liabili ties,
statement of profit and loss and cash flows, wherever required, by a reclassification of
the corresponding items of income, expenses, assets, liabilities and cash flows in order
to bring them in line with the groupings as per the audited financials of the Company
as at March 31, 2025.

In terms of our report attached For and on behalf of the boards of directors of

For Sorab S. Engineer & Co. GCCL Construction & Realities Limited

Chartered Accountants
Firm Registration No. 110417W

CA Chokshi Shreyas B. Devang Jhaveri Amam Shah

Partner Director Director

Membership No. 100892 DIN: 02372402 DIN: 01617245

Place : Ahmedabad
Date : June 26, 2025