Notes to Accounts of G G Engineering Ltd.

Mar 31, 2025

k. Provisons and Contingent Liabilities

Provisions : Provisions for legal claims, service warranties are recognised when the Company has a present
legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be
required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised
for future operating losses. Provisions are measured at the present value of management''s best estimate
of the expenditure required to settle the present obligation at the end of the reporting period. The discount
rate used to determine the present value is a pre-tax rate that reflects current market assessments of the
time value of money and the risks specific to the liability. The increase in the provision due to the passage
of time is recognised as interest expense.

Contingent Liabilities : Contingent liabilities are disclosed when there is a possible obligation arising
from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of
one or more uncertain future events not wholly within the control of the company or a present obligation
that arises from past events where it is either not probable that an outflow of resources will be required to
settle or a reliable estimate of the amount cannot be made.

l. Earnings per share

(i) Basic earnings per share: - Basic earnings per share is calculated by dividing:

• the profit attributable to owners of the Company

• by the weighted average number of equity shares outstanding during the fiscal year

(ii) Diluted earnings per share: -

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account:

• the after-income tax effect of interest and other financing costs associated with dilutive potential
equity shares, and

• the weighted average number of additional equity shares that would have been outstanding assuming
the conversion of all dilutive potential equity shares.

m. Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The management assesses the financial performance and position of the
Company and makes strategic decisions. The chief operating decision maker, consists of the Managing
Director and Chairman of the Company.

n. Cash and Cash Equivalents

The Company''s statement of cash flows is prepared using the Indirect method, whereby profit for the period
is adjusted for the effect of transaction of a non-cash nature, any deferrals or accruals of past or future
operating cash receipts or payment and item of income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
Cash and cash equivalents comprise cash and bank balances and short-term fixed bank deposits that are
subject to an insignificant risk of changes in value. These also include bank overdrafts and cash credit
facility that form an integral part of the Company''s cash management.

o. Current and Non Current Classification

The Schedule III to the Act requires assets and liabilities to be classified as either current or non-current. The
Company presents assets and liabilities in the balance sheet based on current/non-current classification.

Assets

An asset is classified as current when it satisfies any of the following criteria:

(i) it is expected to be realised in, or is intended for sale or consumption in, the Company''s normal
operating cycle;

(ii) it is expected to be realised within twelve months from the reporting date;

(iii) it is held primarily for the purposes of being traded; or

(iv) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for
at least twelve months after the reporting date. All other assets are classified as non-current

Liabilties

A liability is classified as current when it satisfies any of the following criteria:

• it is expected to be settled in the Company''s normal operating cycle;

• it is due to be settled within twelve months from the reporting date;

• it is held primarily for the purposes of being traded; or

• the Company does not have an unconditional right to defer settlement of the liability for atleast twelve
months from the reporting date.

All other liabilities are classified as non-current.

p. Operating Cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation in cash
or cash equivalents. Based on the nature of operations and the time between the acquisition of assets for
processing and their realisation in cash and cash equivalents, the Company has ascertained its operating
cycle as twelve months for current - non-current classification of assets and liabilities.

q. Recent Indian Accounting Standards (Ind AS)

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended
March 31,2025, MCA has notifies and amendmends to the existing standards. The Company has reviewed
the new pronouncements and based on its evaluation has determined that it does not have any significant
impact in its financial statements.

r. CSR Policy

2A) Reference to the cited provisions of section 135 of the Companies Act, 2013, CSR activities are
applicable on the company.

(i) The company has obtained approval from BSE for allotment of 18,50,00,000 fully covertible warrant on
preferential basis at an issue price of ? 1.32 each (face value of ? 1 /-). During the year ended 31 March 2025,
the company has received a sum of ?1831.50 Lakhs through allottment of 18,50,00,000 share warrant of ? 1.32
each having face value of ? 1/-. Out of 18,50,00,000 share warrants, 18,50,00,000 share warrants have been
converted into equity shares during the year. The effect of the same has been taken in basic and diluted EPS."
Rights, preferences and restrictions attached to shares

"The Company has only one class of share referred to as equity shares having a par value of ?1. Each holder
of equity shares is entitled to one vote per share. 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. Apart from this, During the period of five financial years immediately preceeding the Balance
Sheet date, the company has not:

(i) allotted any equity shares pursuant to any contract without payment being received in cash; and

(ii) bought back any equity shares."

Statement of Deviation

During the Financial year Ended 31 March 2025, The Company has brought Preferential Issue, wherein fully paid
18,50,00,000 equity shares of ? 1.32 each per share alloted on preferential basis to the eligible shareholders.
The company has deployed these funds as per the objects of Preferential Issue.

Proceeds from subscription to the Issue of Equity shares under Preferential Issue of 2024-25, made during the
year ended 31 March 2025 have been utilised in the following manner:

Rights, Preferences and Restrictions

The Authorised Share Capital of the Company consists of Equity Shares having nominal value of '' 1/- each.
The rights and privileges to equity shareholders are general in nature and allowed under Companies Act, 2013.
"The equity shareholders shall have:

(1) a right to vote in shareholders'' meeting. On a show of hands, every member present in person shall have one
vote and on a poll, the voting rights shall be in proportion to his share of the paid up capital of the Company;

(2) a right to receive dividend in proportion to the amount of capital paid up on the shares held.
The shareholders are not entitled to exercise any voting right either in person or through proxy at any meeting
of the Company if calls or other sums payable have not been paid on due date.

In the event of winding up of the Company, the distribution of available assets/losses to the equity shareholders
shall be in proportion to the paid up capital."

Description of nature and purpose of reserve :

(a) Security Premium Reserve : The Securities Premium was created on issue of shares at a premium. The
Company converted 18,50,00,000 share warrants into 18,50,00,000 equity shares of face value ?1 each at a
premium of ?0.32 per share, resulting in a securities premium addition of ?5,92,00,000.

(b) General Reserve : The general reserve comprises of transfer of profits from retained earnings for appropriation
purpose. The reserve can be distrubuted/utilised by the Group in accordance with the provisions of the Act.

(c) Capital Redemption Reserve : The Capital Redemption Reserve represents reserves created against
redemption made in past of redeemable preference shares.

(d) Retained Earnings : This represent the amount of accumulated earnings of the Group.

(e) The company has obtained approval from BSE for allotment of 18,50,00,000 fully covertible warrant on
preferential basis at an issue price of ? 1.32 each (face value of ? 1 /-). During the year ended 31 March
2025, the company has received a sum of ?1831.50 Lakhs through allottment of 18,50,00,000 share warrant
of ? 1.32 each having face value of ? 1/-. Out of 18,50,00,000 share warrants, 18,50,00,000 share warrants
have been converted into equity shares during the year. The effect of the same has been taken in basic and
diluted EPS.

Schedule of Implementation and Deployment of Funds

"Since present preferential issue is for convertible warrants, issue proceeds shall be received by the Company
in 18 months period from the date of allotment of warrants in terms of Chapter V of the SEBI (ICDR) Regulation,
and as estimated by our management, the entire proceeds received from the issue would be utilized for the all
the above-mentioned objects, in phases, as per the company''s business requirements and availability of issue
proceeds, latest by August, 2025.

Interim Use of Proceeds Our management will have flexibility in deploying the Proceeds received by our
Company from the Preferential Issue in accordance with applicable laws."

Reclassification of Prior Period Figures

(Pursuant to Ind AS 1 - Presentation of Financial Statements and Ind AS 109 - Financial Instruments)
During the current year, the Company has changed the presentation of transactions relating to the sale and
purchase of shares and securities. Previously, such transactions were presented on a gross basis, i.e., separately
showing the sale proceeds as revenue and the purchase cost as expenses. In line with the requirements of Ind
AS 109 (Financial Instruments) and to provide more relevant information, the Company has now presented
these transactions on a net basis, recognizing only the net gain or loss from such transactions under ''Revenur
From Operations''.

In accordance with Ind AS 1 - Presentation of Financial Statements (Paragraphs 41-44), the comparative
figures for the previous period have been reclassified to conform with the current year''s presentation. This
reclassification is a presentation change and does not have any impact on the net profit or loss or equity for
the previous year.

Accordingly, revenue and expenses relating to such transactions have been netted off in the segment results
for the FY 2023-24 and 2024-25 to make it comparable.

33 Contingent Liabilities

As per default summary on Traces website, demand of Rs. 2.76 Lacs pertaining to FY 2021-22 and Prior
years has been shown.

34 Employee Benefits

Post-employment benefits plans

(a) Defined Contribution Plans -

In respect of the defined contribution plans, an amount of Nil (Previous Year Nil) has been provided in the
Profit & Loss account for the year towards employer share of Pf contribution.

(b) Defined Benefit Plans -

The Liability in respect of gratuity is determined for current year as per management estimate Nil
(previous year Nil as per management estimate) carried out as at Balance Sheet date. Amount recognized
in profit and loss account Nil (previous year Nil).

36 As on 31st March 2025, the Company operates in three Primary Segments i.e. Dealing In Shares/Securties,
Entertainment services and Trading Division - Infrastructure for the purpose of IND-AS 108 Segmental
reporting.

Operating segments:

a) Trading Division - Infrastructure

b) Engineering Based Services

c) Marketing Based Services

d) Dealing In Shares/Securties
Identification of segments:

The chief operational decision maker monitors the operating results of its business segments separately for the
purpose of making decisions about resource allocation and performance assessment. Segment performance
is evaluated based on profit and loss of the segment and is measured consistently with profit or loss in these
financial statements. Operating segments have been identified on the basis of the nature of products.
Segment revenue and results

The expenses and income which are not directly attributable to any business segment are shown as unallocable
expenditure (net of unallocable income).

The measurement principles of segments are consistent with those used in preparation of these financial
statements. There are no inter-segment transfers.

37 Financial risk management

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the
Company''s risk management framework. The Board of Directors has established the Risk Management
Committee, which is responsible for developing and monitoring the Company''s risk management policies. The
Committee reports to the Board of Directors on its activities. The Company''s risk management policies are
established to identify and analyses the risks faced by the Company, to set appropriate risks limits and controls
and to monitor risk and adherence to limits. Risk management policies and systems are reviewed periodically
to reflect changes in market conditions and the Company''s activities. The Company, through its training,
standards and procedures, aims to maintain a disciplined and constructive control environment in which all
employees understand their roles and obligations. The audit committee oversees how management monitors
compliance with the company''s risk management policies and procedures, and reviews the adequacy of the risk
management framework in relation to the risks faced by the Company. The audit committee is assisted in its
oversight role by internal audit.

Credit Risk

Credit risk is the risk of financial loss to the company if a customer or counter party to a financial instrument
fails to meet its contractual obligations, and arises principally from the company''s receivable from customers.
Credit risk is managed through credit approvals establishing credit limits and continuously monitoring the
creditworthiness of customers to which the company grants credit terms in the normal course of business. The
company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred
losses in respect of trade receivables and other financial assets.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.
The Company manages its liquidity risk by ensuring as far as possible, that it will all ways have sufficient liquidity
to meets it liabilities when due, under both normal and stressed conditions, without incurring unacceptable
losses or risk to Company''s reputation.

Market Risk

Market risk is the risk that changes in market prices- such as foreign exchange rates, interest rates and equity
prices- will affect the Company''s income or the value of its holdings of financial instruments. Market risk is
attributable to all market risk sensitive financial instruments including foreign currency receivables and payable
and long term debt. We are exposed to market risk primarily related to foreign exchange rate risk. Thus, our
exposure to market risk is a function of revenue generating and operating activities in foreign currency. The
objective of market risk management is to avoid excessive in our foreign currency revenues and costs. The
Company uses derivative to manage market risk.

38 Additional Regulatory Information

(i) Company doesnot holds immovable property in the current year

(ii) Company doesn''t have investment property to value the property as is based on the valuation by a
registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017

(iii) Company doesn''t have Property Plant and Equipment to revalue the same (including Right-of Use
Assets),based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered
Valuers and Valuation) Rules, 2017

(iv) Company doesn''t have intangible asset to revalue the same , based on the valuation by a registered
valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017

(v) Company has not provided any loans to Promoters, Directors, Key Managerial Persons or related parties.
The loans provided to other body corporates are repayble on demand

(vi) Company doesn''t have any Capital-Work-in Progress

(vii) Company doesnot have intangible assets under developments

(viii) No benami property held by company, No proceedings has been initiated or pending against the company
for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder

(ix) Company has no borrowings from banks or financial institutions on the basis of security of current assets.

(x) Company not declared as wilful defaulter by any bank or financial Institution or other lender.

(xi) Company has not done any transactions with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act, 1956.

(xii) Company has not any charges or satisfaction yet to be registered with ROC beyond the statutory period.

(xiii) Section 135 of Companies Act, 2013 relating to CSR Policy is applicable on the Company.

(xiv) Compliance with number of layers of companies is not applicable.

(xv) Compliance with approved Scheme(s) of Arrangements, if any: NA

(xvi) During the year company has not borrowed loans.

(xvii) The additional information pursuant to Schedule III to the Companies Act, 2013 are either nil or not
applicable.

39 Statement of Management

(a) The current assets, loans and advances are good and recoverable and are approximately of the values,
if realized in the ordinary courses of business unless and to the extent if any stated otherwise in the
Accounts. Provision for all known liabilities is adequate and not in excess of amount reasonably
necessary. There are no contingent liabilities except those stated in the notes.

(b) Balance Sheet, Statement of Profit & Loss and Cash Flow statement read together with the schedules
to the accounts and notes thereon, are drawn up so as to disclose the information required under the
Companies Act, 2013 as well as give a true and fair view of the statement of affairs of the Company as at
the end of the year and results of the Company for the year under review.

Notes forming integral part of the Ind AS Financial Statements- 1 to 46

As per our Report of even date attached For and on behalf of the Board Of Directors

For A. K. Bhargav & Co.

Chartered Accountants Atul Sharma Ram Manorath Gupta

FRN : 034063N Managing Director Director

DIN:08290588 DIN:10679592

CA ARUN KUMAR BHARGAV

(Proprietor) Virender Sharma Sandeep Somani

Membership No. 548396 Chief Financial Officer Company Secretary

UDIN :25548396BMJAVK6192 CCKPS4992K DJEPS6529G

Date : 24-05-2025
Place : Delhi

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Mar 31, 2024

The company has invested in 2,39,360 equity shares of Brij Gopal Construction Company Private Limited @ ?725/- during the year and sold out the investments of Adcon Capital Services Limited (? 184), Advik Capital Limited (? 90.18 Lakhs), Teamo Productions HQ Limited (? 1,260.90 Lakhs), Integra Essentia Limited (? 1,251.64 Lakhs), Hazoor Multi Projects Limited (? 7.80 Lakhs), Industrial Investment Trust Limited (? 9.09 Lakhs), Sindhu Trade Links Limited (? 20.05 Lakhs), Swastik Pipe Limited (? 71.37 Lakhs) and Sunayaana Investment Company Limited (? 238) during the year and booked profit and loss on these investments.

The company has provided loan to Kamlesh Kumar Rathi of ? 20 Lakhs at interest free rate (Kamlesh rathi passed away and amount will be recoverable from its legal heir), to Advik Capital Limited of ? 2470 Lakhs @ 7% p.a.

The company has provided deposit to Unity Buildwell Private limited having balance in books of ? 38.14 Lakhs.

The company has provided loans to the following parties during the year

a) Loan of ? 140 Lakhs was given to AS Confin Private Limited at an interest rate of 9% p.a.

b) Loan of ? 1150 Lakhs was given to Duddu Finance Lease Limited at an interest rate of 9% p.a.

c) Loan of ? 200 Lakhs was given to Kolab Properties Private Limited at an interest rate of 9% p.a. Outstanding balance of AS Confin Private Limited is ? 141.80 Lakhs , Duddu Finance Lease Limited is ? 1162.40 lakhs and of Kolab Properties Private Limited is ? 202.17 Lakhs.

(i) The Company has received proceeds from issuing of 49,88,20,215 equity shares @ ?1/- each on 10 August 2023 and convert 5200 Lakhs warrants into equity shares during the year.

(ii) The company has obtained approval from BSE for allotment of 7,500 Lakhs fully covertible warrant on preferential basis at an issue price of ? 1.32 each (face value of ? 1 /-).During the year ended 31 March 2024, the company has received a sum of ? 7,623 Lakhs through allottment of 5,775 Lakhs share warrant of ? 1.32 each having face value of ? 1/-. Out of 5,775 Lakhs share warrants, 5,200 Lakhs share warrants have been converted into equity shares during the year. The effect of the same has been taken in basic and diluted EPS.

b) Rights, preferences and restrictions attached to shares

The Company has only one class of share referred to as equity shares having a par value of ?1. Each holder of equity shares is entitled to one vote per share. 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. Apart from this, During the period of five financial years immediately preceeding the Balance Sheet date, the company has not:

(i) allotted any equity shares pursuant to any contract without payment being received in cash; and

(ii) bought back any equity shares.

c) Statement of Deviation

During the Financial year Ended 31 March 2024, The Company has brought right Issue on 10 August 2023, wherein fully paid 49,88,20,215 equity shares of ? 1/- each per share alloted on Rights basis to the eligible shareholders. The company has deployed these funds as per the objects of Right Issue Proceeds from subscription to the Issue of Equity shares under Rights Issue of 2023-24, made during the year ended 31 March 2024 have been utilised in the following manner:

The Proceeds from Right Issues during the year for the purpose of of meeting working capital requirements were utilized in working capital of the Company by payment to outstanding suppliers and advance payment to suppliers for purchase of goods.

During the Financial year Ended 31 March 2024, The Company has converted 5,200 Lakhs warrants into equity shares, wherein fully paid 5,200 Lakhs equity shares of ? 1/- each per share alloted on warrant holders.

The Proceeds from issue of warrants during the year for the purpose of of meeting working capital requirements were utilized in working capital of the Company by payment to outstanding suppliers and advance payment to suppliers for purchase of goods.

Rights, Preferences and Restrictions

The Authorised Share Capital of the Company consists of Equity Shares having nominal value of '' 1/- each. The rights and privileges to equity shareholders are general in nature and allowed under Companies Act, 2013.

The equity shareholders shall have:

(1) a right to vote in shareholders'' meeting. On a show of hands, every member present in person shall have one vote and on a poll, the voting rights shall be in proportion to his share of the paid up capital of the Company;

(2) a right to receive dividend in proportion to the amount of capital paid up on the shares held. The shareholders are not entitled to exercise any voting right either in person or through proxy at any meeting of the Company if calls or other sums payable have not been paid on due date. In the event of winding up of the Company, the distribution of available assets/losses to the equity shareholders shall be in proportion to the paid up capital.

Description of nature and purpose of reserve :

a) Security Premium Reserve : The Securities Premium was created on issue of shares at a premium. The reserve is utilised in accordance with the provisions of the Act.

b) Retained Earnings : This represent the amount of accumulated earnings of the Group.

c) The company has obtained approval from BSE for allotment of 7,500 Lakhs fully covertible

warrant on preferential basis at an issue price of ? 1.32 each (face value of ? 1 /-).During the year ended 31 March 2024, the company has received a sum of ? 7,623 Lakhs through allottment of 5,775 Lakhs share warrant of ? 1.32 each having face value of ? 1/- Out of 5,775 Lakhs share warrants, 5,200 Lakhs share warrants have been converted into equity shares during the year.

Utilization of funds

a) Right issue expenses and premium received on warrants has been adjusted against security premium reserve.

b) The company has obtained approval from BSE for allotment of 7,500 Lakhs fully covertible warrant on preferential basis at an issue price of ? 1.32 each (face value of ? 1 /-).During the year ended 31 March 2024, the company has received a sum of ? 7,623 Lakhs through allottment of 5,775 Lakhs share warrant of ? 1.32 each having face value of ? 1/-. Out of 5,775 Lakhs share warrants, 5,200 Lakhs share warrants have been converted into equity shares during the year.

i) All Trade payables are non-interest bearing other than amount payable to MSME.

ii) According to information available with the Management, on the basis of intimation received from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (''MSMED Act''), the Company has amounts due to Micro, Small and Medium Enterprises under the said Note No.40.

iii) The company has obtained confirmations from MSME Creditors with respect to Non Payment of Interest on Amount Payable for more than 15 Days.

Note 30: Contingent Liabilities

There is no contingent liability in current year and previous year.

Note 31: Employee Benefits

Post-employment benefits plans

(a) Defined Contribution Plans -

In respect of the defined contribution plans, an amount of Nil (Previous Year Nil) has been provided in the Profit & Loss account for the year towards employer share of PF contribution.

(b) Defined Benefit Plans -

The Liability in respect of gratuity is determined for current year as per management estimate Nil (previous year Nil as per management estimate) carried out as at Balance Sheet date. Amount recognized in profit and loss account Nil (previous year Nil).

Note 33: As on 31st March 2024, the Company operates in three Primary Segments i.e. Dealing In Shares/ Securties, Entertainment services and Trading Division - Infrastructure for the purpose of IND-AS 108 Segmental reporting.

Operating segments:

a) Trading Division - Infrastructure

b) Engineering Based Services

c) Marketing Based Services

d) Dealing In Shares/Securties Identification of segments:

The chief operational decision maker monitors the operating results of its business segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit and loss of the segment and is measured consistently with profit or loss in these financial statements. Operating segments have been identified on the basis of the nature of products.

Segment revenue and results

The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure (net of unallocable income).

The measurement principles of segments are consistent with those used in preparation of these financial statements. There are no inter-segment transfers.

Note 34: Financial risk management

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company''s risk management policies. The Committee reports to the Board of Directors on its activities. The Company''s risk management policies are established to identify and analyses the risks faced by the Company, to set appropriate risks limits and controls and to monitor risk and adherence to limits. Risk management policies and systems are reviewed periodically to reflect changes in market conditions and the Company''s activities. The Company, through its training, standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The audit committee oversees how management monitors compliance with the company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit.

Credit Risk

Credit risk is the risk of financial loss to the company if a customer or counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the company''s receivable from customers. Credit risk is managed through credit approvals establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. The company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade receivables and other financial assets.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring as far as possible, that it will all ways have sufficient liquidity to meets it liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to Company''s reputation.

Market Risk

Market risk is the risk that changes in market prices- such as foreign exchange rates, interest rates and equity prices- will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payable and long term debt. We are exposed to market risk primarily related to foreign exchange rate risk. Thus, our exposure to market risk is a function of revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive in our foreign currency revenues and costs. The Company uses derivative to manage market risk.

Note 35: Additional Regulatory Information

(i) Company holds immovable property in the current year

(ii) Company doesn''t have investment property to value the property as is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017

(iii) Company doesn''t have Property Plant and Equipment to revalue the same (including Right-of Use Assets),based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017

(iv) Company doesn''t have intangible asset to revalue the same , based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017

(v) Company not provided any loans to Promoters, Directors, Key Managerial Persons or related parties. The loans provided to other body corporates are repayble on demand

(vi) Company doesn''t have any Capital-Work-in Progress

(vii) Company have intangible assets under developments

(viii) No benami property held by company, No proceedings has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(ix) Company has no borrowings from banks or financial institutions on the basis of security of current assets

(x) Company not declared as wilful defaulter by any bank or financial Institution or other lender

(xi) Company has not done any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956

(xii) Company has not any charges or satisfaction yet to be registered with ROC beyond the statutory period

(xiii) Section 135 of Companies Act, 2013 relating to CSR Policy is not applicable on the Company

(xiv) Compliance with number of layers of companies is not applicable

(xv) Compliance with approved Scheme(s) of Arrangements, if any: NA

(xvi) During the year company has borrowed loans and the same has been disclosed in the financials.

(xvii) The additional information pursuant to Schedule III to the Companies Act, 2013 are either nil or not applicable.

Note 36 Statement of Management

(a) The current assets, loans and advances are good and recoverable and are approximately of the values, if realized in the ordinary courses of business unless and to the extent if any stated otherwise in the Accounts. Provision for all known liabilities is adequate and not in excess of amount reasonably necessary. There are no contingent liabilities except those stated in the notes.

(b) Balance Sheet, Statement of Profit & Loss and Cash Flow statement read together with the schedules to the accounts and notes thereon, are drawn up so as to disclose the information required under the Companies Act, 2013 as well as give a true and fair view of the statement of affairs of the Company as at the end of the year and results of the Company for the year under review.

The provision applies to the companies having Net Worth of more than Rs. 500 Crores or Turnover more than Rs. 1000 Crores or Net profit more than Rs. 5 Crores in the preceding financial year. The company''s Net profit, Turnover & Net Worth of preceding financial year is below the prescribed limit so the amount required to be spent during the year is NIL.

Fair value measurements recognised in the statement of financial position:

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable.

Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

Cash and cash equivalents, Trade receivables, Other current Financial assets, Trade payable and other current Financial liabilities approximate their carrying amounts largely due to the short-term maturities or nature of these instruments.

Note 39: Previous year figures have been regrouped / reclassifed wherever necessary to conform to current year''s classification.

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Mar 31, 2023

2.15 Provisions and contingencies
Provisions:

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. Provisions are measured at the best estimate of the expenditure required to settle the
present obligation at the Balance Sheet date.

If the effect of the time value of money is material, provisions are discounted to reflect its present
value using a current pre- tax rate that reflects the current market assessments of the time value of
money and the risks specific to the obligation. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.

Where the Company expects some or all of a provision to be reimbursed, the reimbursement is
recognised as a separate asset but only when the reimbursement is virtually certain. The expense
relating to any provision is presented in the income statement net of any reimbursement.

Contingencies:

Contingent liabilities

A contingent liability is:

• a possible obligation arising from past events, the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the Company, or

• a present obligation that arises from past events but is not recognised because :

- it is not probable that an outflow of resources embodying economic benefits will be
required to settle the obligation; or

- the amount of the obligation cannot be measured with sufficient reliability
Contingent liabilities are not recognized but disclosed unless the contingency is remote.
Contingent assets

A contingent asset is a possible asset that arises from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Company.

Contingent assets are not recognised but are disclosed when the inflow of economic benefits is
probable. When inflow is virtually certain, an asset is recognized.

2.16 Related party

A related party is a person or entity that is related to the reporting entity and it includes :

(a) A person or a close member of that person''s family if that person:

(i) has control or joint control over the reporting entity;

(ii) has significant influence over the reporting entity; or

(iii) is a member of the key management personnel of the reporting entity or of a parent of the
reporting entity.

(b) An entity is related to the reporting entity if any of the following conditions apply:

(i) The entity and the reporting entity are members of the same Group.

(ii) One entity is an associate or joint venture of the other entity.

(iii) Both entities are joint ventures of the same third party.

(iv) One entity is a joint venture of a third entity and the other entity is an associate of the third
entity.

(v) The entity is a post-employment benefit plan for the benefit of employees of either the
reporting entity or an entity related to the reporting entity.

(vi) The entity is controlled or jointly controlled by a person identified in (a).

(vii) A person identified in (a) (i) has significant influence over the entity or is a member of the
key management personnel of the entity (or of a parent of the entity).

(viii) The entity, or any member of a Group of which it is a part, provides key management
personnel services to the reporting entity or to the parent of the reporting entity.

Close members of the family of a person are those family members who may be expected to
influence, or be influenced by, that person in their dealings with the entity including :

(a) that person''s children, spouse or domestic partner, brother, sister, father and mother;

(b) children of that person''s spouse or domestic partner; and

(c) dependents of that person or that person''s spouse or domestic partner.

Key management personnel are those persons having authority and responsibility for planning,
directing and controlling the activities of the entity, directly or indirectly, including any director
(whether executive or otherwise) of that entity.

Related party transactions and outstanding balances disclosed in the financial statements are in
accordance with the above definition as per Ind AS 24.

2.17 Cash and cash equivalents

Cash and cash equivalents in the Balance Sheet comprise cash at banks and cash on
hand and short term deposits/investments with an original maturity of three months or less from
the date of acquisition, which are subject to an insignificant risk of changes in value. These exclude
bank balances (including deposits) held as margin money or security against borrowings,
guarantees etc. being not readily available for use by the Company.

For the purpose of the Statement of cash flows, cash and cash equivalents consist of cash and
short term deposits and exclude items which are not available for general use as on the date of
Balance Sheet, as defined above, net of bank overdrafts which are repayable on demand where
they form an integral part of an entity''s cash management.

2.18 Dividend to equity share holders of the Company

The company recognises a liability to make dividend distributions to equity holders of the Company
when the distribution is authorised and the distribution is no longer at the discretion of the
Company. As per the corporate laws in India, a distribution is authorised when it is approved by the
shareholders. A corresponding amount is recognised directly in equity.

2.19 Cash Flow Statement

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and
financing activities. Cash flow from operating activities is reported using indirect method as set out
in Ind AS 7 ''Statement of Cash Flows'', adjusting the net profit for the effects of:

(i) changes during the period in inventories and operating receivables and payables transactions
of a non-cash nature;

(ii) non-cash items such as depreciation, provisions, deferred taxes, unrealised foreign currency
gains and losses, and

(iii) all other items for which the cash effects are investing or financing cash flows.

2.20 Earnings per share

The Basic Earnings per equity share (''EPS'') is computed by dividing the net profit or loss
after tax before other comprehensive income for the year attributable to the equity shareholders
of the Company by weighted average number of equity shares outstanding during the year.
Ordinary shares that will be issued upon the conversion of a mandatorily convertible instrument are
included in the calculation of basic earnings per share from the date the contract is entered into.
Contingently issuable shares are treated as outstanding and are included in the calculation of basic
earnings per share only from the date when all necessary conditions are satisfied (i.e. the events
have occurred).

Diluted earnings per equity share are computed by dividing the net profit or loss before OCI
attributable to equity holders of the Company by the weighted average number of equity shares
considered for deriving basic earnings per equity share and also the weighted average number of
equity shares that could have been issued upon conversion of all dilutive potential equity shares
(including options and warrants). The dilutive potential equity shares are adjusted for the proceeds
receivable had the equity shares been actually issued at fair value. Dilutive potential equity shares
are deemed converted as of the beginning of the period unless issued at a later date. Anti-dilutive
effects are ignored.

2.21 Events after Reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at
the end of the reporting period, the impact of such events is adjusted within the financial
statements. Where the events are indicative of conditions that arose after the reporting period, the
amounts are not adjusted, but are disclosed if those non-adjusting events are material.

2.22 Exceptional Items

An item of Income or expense which by its size, type or incidence requires disclosure in order to
improve an understanding of the performance of the Company is treated as an exceptional item
and the same is disclosed in the financial statements.

2.23 Standards notified but not yet effective

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On
March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules,
2022, as below.

Ind AS 16 - Property, Plant and equipment-The amendment clarifies that excess of net sale
proceeds of items produced over the cost of testing, if any, shall not be recognised in the profit or
loss but deducted from the directly attributable costs considered as part of cost of an item of
property, plant and equipment. The effective date for adoption of this amendment is annual periods
beginning on or after April 1, 2022. The Company has evaluated the amendment and there is no
impact on its financial statements.

Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets-The amendment specifies
that the ‘cost of fulfilling'' a contract comprises the ‘costs that relate directly to the contract''. Costs
that relate directly to a contract can either be incremental costs of fulfilling that contract (examples
would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling
contracts (an example would be the allocation of the depreciation charge for an item of property,
plant and equipment used in fulfilling the contract). The effective date for adoption of this
amendment is annual periods beginning on or after April 1, 2022, although early adoption is
permitted. The Company has evaluated the amendment and the impact is not expected to be
material.

Ind AS 103 - Reference to Conceptual Framework - The amendments specify that to qualify for
recognition as part of applying the acquisition method, the identifiable assets acquired and
liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework
for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the
Institute of Chartered Accountants of India at the acquisition date. These changes do not
significantly change the requirements of Ind AS 103. The Company does not expect the
amendment to have any impact in its financial statements.

Ind AS 109 - Annual Improvements to Ind AS (2021) - The amendment clarifies which fees an
entity includes when it applies the ‘10 percent'' test of Ind AS 109 in assessing whether to
derecognise a financial liability. The Company does not expect the amendment to have any
significant impact in its financial statements.

2.24 CSR Policy

Reference to the cited provisions of section 135 of the Companies Act, 2013, CSR activities are not
applicable on the company.

The company had received an demand order of ? 75,22,748 u/s 156 of the Incoma Tax Act 1961 for AY 17-18.

The company had filed for appeal against this demand order to CIT(A) which has come to the favour of the
company and hence the contingent liability has been removed for current financial year ended.

Note 33 : Employee Benefits

Post-employment benefits plans

(a) Defined Contribution Plans -

In respect of the defined contribution plans, an amount of Rs. Nil (Previous Year : Rs. Nil) has been
provided in the Profit & Loss account for the year towards employer share of PF contribution.

(b) Defined Benefit Plans -

The Liability in respect of gratuity is determined for current year as per management estimate Rs. Nil
(previous year Rs. Nil as per management estimate) carried out as at Balance Sheet date. Amount
recognized in profit and loss account Rs. Nil (previous year Rs. Nil).

Note 34 :

Balances of Trade Receivables and Trade Payables as at the balance sheet are subject to confirmation and
reconciliation.

Note 35 :

Previous year figures have been re-grouped and reclassified wherever necessary to conform to this year’s
classification. Trade Receivables, advances and Trade Payables are subject to confirmations.

The fair value of the financial assets and liabilities are included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The
following methods and assumptions were used to estimate the fair values:

Cash and cash equivalents, Trade receivables, Other current Financial assets, Trade payable and other
current Financial liabilities approximate their carrying amounts largely due to the short-term maturities or
nature of these instruments.

C. Fair values hierarchy

All assets and liabilities for which fair value is measured or disclosed in the Standalone Financial Statements
are categorised within the fair value hierarchy, described as follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

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 rely as little as possible on entity
specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3.

Valuation process and technique used to determine fair value

(i) The management assessed that fair value of cash and cash equivalents, trade receivables, trade
payables, bank overdrafts and other current financial assets and liabilities approximate their carrying
amounts largely due to the short-term maturities of these instruments.

(ii) The fair values of the equity investment which are quoted, are derived from quoted market prices in active
markets. The Investments measured at fair value and falling under fair value hierarchy Level 3 are valued
on the basis of valuation reports provided by external valuers with the exception of certain investments,
where cost has been considered as an appropriate estimate of fair value because of a wide range of
possible fair value measurements and cost represents the best estimate of fair values within that range.

(iii) The fair value of non-current borrowings carrying floating-rate of interest is not impacted due to interest
rate changes, and will not be significantly different from their carrying amounts as there is no significant
change in the under-lying credit risk of the Company (since the date of inception of the loans).

For the year ended March 31st, 2023
Note 38 : Additional Regulatory Information
During the Period or previous years

(i) Company doesn''t have any immovable property

(ii) Company doesn''t have investment property to value the property as is based on the valuation by a
registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules,
2017.

(iii) Company doesn''t have Property Plant and Equipment to revalue the same (including Right-of Use
Assets),based on the valuation by a registered valuer as defined under rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017.

(iv) Company doesn''t have intangible asset to revalue the same , based on the valuation by a
registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules,
2017.

(v) Company not provided any loans to Promoters, Directors, Key Managerial Persons or related
parties. The loans provided to other body corporates are repayble on demand.

(vi) Company doesn''t have any Capital-Work-in Progress.

(vii) Company doesn''t have any intangible assets under developments.

(viii) No benami property held by company, No proceedings has been initiated or pending against the
company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988
(45 of 1988) and rules made thereunder.

(ix) Company has no borrowings from banks or financial institutions on the basis of security of current
assets.

(x) Company not declared as wilful defaulter by any bank or financial Institution or other lender.

(xi) Company has not done any transactions with companies struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies Act, 1956,

(xii) Company has not any charges or satisfaction yet to be registered with ROC beyond the statutory
period.

(xiii) Section 135 of Companies Act, 2013 relating to CSR Policy is not applicable on the Company.

(xiv) The Company has utilized funds raised from Right Issue for the sspecific purposes for which they
were issued.

(xv) Company has complied with the number of layers prescribed under clause (87) of section 2 of the
Companies Act'' 2013 read with Companies (Restriction on Number of Layers) Rules'' 2017

(xvi) The additional information pursuant to Schedule III to the Companies Act, 2013 are either nil or not
applicable.

NOTES TO ACCOUNTS: forming part of Financial Statement 1 - 38

For A. K. Bhargav & Co. For & on behalf of the Board of Directors of

Chartered Accountants G G Engineering Limited

FRN : 034063N

(CA ARUN KUMAR BHARGAV) Atul Sharma Deepak Kumar Gupta

(Proprietor) Managing Director Whole Time Director

Membership No. : 548396 DIN No. : 08290588 DIN No. : 00057003

UDIN : 23548396BGXHOK8965

Meghna Kashtwal Prakash Kukreja
Company Secretary Chief Financial Officer
CXCPK5668K ASTPK1748E

Place : Delhi
Date : April 19, 2023

---

Mar 31, 2018

General Information

GG Engineering Limited (“the Company”) is a company limited by shares having its registered office at Shop No. 15, 1st Floor, Evershine Mall, Chincholi, Malad (West), Mumbai - 400 064. It has factory at Bharuch, Gujrat were it has business of assembling and selling of electrical generator sets and acoustic enclosures.

From Ghaziabad, Uttar Pradesh, the company is trading into Iron and Steel Metals. Its equity shares at listed in India on SME plaftform of Bombay Stock Exchange.

Rights, preferences and restrictions attached to equity shares

The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. 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.

Fresh Issue of shares

The Company has issued 12,000 equity shares in April, 2017 at Rs. 10 per share.

IPO-Fresh Issue of shares

The Company has completed the initial Public offering of Fresh Issue of 11,16,000 equity shares of Rs. 10 each at issue price of Rs. 20 each. Its equity shares at listed in India on SME platform of Bombay Stock Exchange w.e.f July 17, 2017.

* The company has issued 20 Lacs convertible warrant at issue price of Rs. 22 per warrant on October 13, 2017. Subsequently, the price was revised to Rs. 37 on February 2, 2018 as per regulation 76(3) of SEBI (ICDR), Regulation, 2009.

The subscription money paid on warrant shall be forfeited if the warrants are not exercised within a period of 18 months from the date of allotment.

Note 1: Segment Reporting

The Company has considered the business segment as the primary reporting segment on the basis that the risk and returns of the Company is primarily determined by the nature of products and services.

The business segment have been identified on the basis of the nature of products and services, the risks and returns, internal organisation and management structure and the internal performance reporting systems.

The business segment comprises of the following:

Genset Manufacturing: It has factory at were it has business of assembling and selling of electrical generator sets and acoustic enclosures.

Iron and Steel Trading: From Ghaziabad, Uttar Pradesh, the Company is trading into iron and Steel Metals.

There are no Geographical segment to be considered, since the entire business is in India.

* Specified Bank Notes (SBNs) mean the bank notes of denominations of the existing series of the value of five hundred rupees and one thousand rupees as defined under the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs no. S.O. 3407(E), dated the 8th November, 2016.

Note 2: Previous year figures have been re-grouped and reclassified wherever necessary to conform to this year’s classification.