32.2 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.
32.3 For Financial assets and liabilities that are measured at fair value, the carrying amounts are equal to their fair values.
32.4 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.
32.5 The following methods and assumptions were used to estimate the fair values:
32.5.1 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.
32.5.2 The fair values 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.
33 Fair Value Hierarchy
The following are the judgements and estimates made in determining 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.
33.2 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.
33.3 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:
33.3.1 Level 1 - 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.
33.3.2 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.
33.3.3 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.
34 Financial Risk Management
Interest rate risk arises from the sensitivity of financial assets and liabilities to changes in market rates of interest. As at March 31, 2024, none of the Company's Borrowings
are at fluctuating rate of interest (Previous year: Nil)
34.1 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.
Trade receivables
Refer Note 8 for ageing analysis.
34.2 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.
34.3 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.
34.3.1 Interest Rate Risk
The Company is exposed to risk due 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, 2024, none of the Company's Borrowings are at fluctuating rate of interest (Previous year: Nil)
35 Capital Management
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.
36 Segment Reporting
36.1 Primary Segment
The Company is primarily engaged in the business of trading of Real Estate materials, which in the context of Indian Accounting Standard 108 'Operating Segment',
constitutes a single reportable primary business segment.
36.2 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.
37 Other Notes:
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 declared 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 entered into an scheme of arrangement as disclosed in note 43. The accounting effect of such scheme has been accounted for in the books of account of
the Company in accordance with "the Scheme" and Ind AS.
i Valuation of Property, Plant and 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.
38 The shareholders of the Company have approved the program of initiating a pre-packaged Insolvency resolution process under section 54 read with section 10 of the
Insolvency and Bankruptcy Code, 2016 as amended vide the Insolvency, and Bankruptcy Code (Amendment) Ordinance, 2021 dated April 26, 2021, through special
resolution in the extraordinary general meeting held on May 27, 2021. The National Company Law Tribunal, Ahmedabad has passed an order approving the Resolution Plan
on September 05, 2023. Pursuant to the order, the Company is in the process of completing statutory, financial and operational formalities including amalgamation, effect of
such plan has not been given in the above financial statement, however under the resolution plan, share capital of the Company is reduced from 600.55 lakhs to 38.24 lakhs
resulting into reduction of 562.31 lakhs which is credited to Capital Reserve and it has been duly filed and recorded with the Ministry of Corporate Affairs. The requisite
intimations and filings in respect of the said capital reduction with BSE and NSE are currently in process.
39 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 the period of notification of the relevant provisions.
40 Events occurring 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 23, 2025 there were no subsequent events and transactions to
be recognized or reported that are not already disclosed.
41 Material regroupings
Appropriate adjustments have been made in the statements of assets and liabilities, 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 Sorab S. Engineer & Co. For GCCL Infrastructure & Projects Limited
Chartered Accountants
Firm Registration No. 110417W
SD/- SD/- SD/-
CA. Chokshi Shreyas B. AMAM SHREYANS SHAH PRIYANK SHRIRAJBHAI JHAVERI
Partner Director Director
Membership No. 100892 DIN:01617245 DIN:02626740
Ahmedabad
June 23, 2025
UDIN: 25100892BMIFSL9154
| 