Auditor Report of Grand Continent Hotels Ltd.

Mar 31, 2025

We have audited the accompanying financial statements of Grand Continent Hotels Limited (Formerly Known as Grand
Continent Hotels Private Limited) (“the Company”) which comprises the Balance Sheet as at 31^st March, 2025, the
Statement of Profit and Loss, Statement of Cash Flows for the year then ended on that date, and notes to the financial
statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred
to as “Standalone Financial Statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial
statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true
and fair view in conformity with the Accounting Standards prescribed under Section 133 of the Act, (“IGAAP”) and other
accounting principles generally accepted in India, of the state of affairs of the Company as at 31^st March, 2025, its Profit, and
its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. 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 (ICAI) together with the ethical requirements that are relevant to our audit of
the financial statements under the provisions of the Act 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 audit opinion on the financial statements.

Key Audit matters

Key audit matters (“KAM”) are those matters that, in our professional judgement, were of most significance in our audit of
the standalone financial statements of the current year. These matters were addressed in the context of our audit of the
standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.

Sr. No.	Key Audit Matter	Auditor’s Response
1	Revenue Recognition: The Company derives its revenue primarily from room rentals, food and beverage sales, and allied services. Under Indian GAAP, revenue is recognized when there is reasonable certainty of its ultimate collection and it is measurable, generally when the services are rendered. Given the multiple revenue streams, high volume of low-value transactions, and reliance on IT systems for capturing and recording revenue across properties, there is a risk of incorrect timing or measurement of revenue.	Our audit procedures included evaluating the revenue recognition policy of the Company for compliance with applicable accounting standards. We performed walkthroughs to understand and assess the design and implementation of key internal controls over revenue processes. We tested the operating effectiveness of such controls on a sample basis, including IT system. Substantive testing was conducted on a sample of transactions to verify the timing of revenue recognition, corroborating with occupancy records and other supporting documentation. We also performed analytical procedures and cut-off testing around the year-end.
2	Utilisation of Proceeds from Initial Public Offering (IPO): During the year, the Company has come out with IPO alongwith offer for sale of 3,28,800 shares. 62,60,400 shares were issued by the Company pursuant to its IPO. The Company got listed on SME segment of NSE on 27th March, 2025. The Company received a sum of Rs.6,124.38 lakhs (net of IPO expenses of Rs. 949.87 lakhs) consequent upon its successful IPO. As stated in the offer document, the proceeds from the fresh issue were intended for specific purposes including the expansion of hotel properties, repayment of certain borrowings, and general corporate purposes. Given the regulatory requirements governing the end-use of IPO proceeds and the importance of transparent and accurate reporting to stakeholders, ensuring the proper utilisation and classification of these funds represents a key audit matter.	We obtained and reviewed the IPO offer document to understand the intended utilisation of the proceeds from the fresh issue. We examined the schedule of fund utilisation prepared by management and verified the amounts spent up to the balance sheet date by tracing them to supporting documentation such as vendor agreements, invoices, payment records, and bank statements. For the portion of proceeds that remained unutilised as at year-end, we verified the amounts held in designated bank accounts, and assessed whether these were in compliance with applicable regulatory requirements. We also reviewed the disclosures made in the financial statements to ensure that they were complete, accurate, and in line with the requirements of the Companies Act, 2013 and SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Information Other than the Standalone Financial Statements and Auditor’s Report thereon

The Company’s Board of Directors is responsible for the preparation of the other information. The other information
comprises the information included in the Company’s annual report, but does not include the financial ftatements and
auditor’s report(s) thereon. Our opinion on the ftandalone financial ftatements does not cover the other information and we
do not express any form of assurance conclusion thereon.

In connection with our audit of the ftandalone financial ftatements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsiftent with the Standalone Financial Statements or
our knowledge obtained during the course of our audit or otherwise appears to be materially misftated.

If based on the work we have performed, we conclude that there is a material misftatement of this other information, we
are required to report that fact. We have nothing to report in this regard, since the Company’s annual report is expected to
be made available to us after the date of this auditor’s report.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters ftated in section 134(5) of the Act with respect to the
preparation of these financial ftatements that give a true and fair view of the financial position and financial performance, and
cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting
Standards 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 accounting policies; making judgments
and eftimates 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 ftatement that give a true and fair view and are free from material
misftatement, whether due to fraud or error.

In preparing the ftandalone financial ftatements, 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 realiftic alternative but to do
so.

The Board of Directors is also responsible for overseeing the company’s financial reporting process.

Auditor’s Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial ftatements as a whole are free from material
misftatement, 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 misftatement when it exifts. Misftatements 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 the financial ftatements. 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 standalone 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, misrepresenta¬
tions, or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion
on the internal financial controls with reference to the financial statements 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 au¬
dit 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. However, future events or conditions may cause the Company to cease to continue as a
going concern.

• 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 pre-

sentation.

Materiality is the magnitude of misftatements that, individually or in aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of the ftatement may be influenced. We consider quantitative materiality and
qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate
the effect of any identified misftatements in the consolidated financial ftatements.

We communicate 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 we identify during our audit.

We also provide those charged with governance with a ftatement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of moft
significance in the audit of the Standalone Financial Statements for the financial year ended March 31, 2025 and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumftances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to outweigh the public intereft benefits
of such communication.

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 Act, we give in the “Annexure A” ftatement of mattes specified in
paragraphs 3 and 4 of the order, to the extent possible.

2. As required by Section 143(3) of the Act, we report that:

a. 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;

b. 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;

c. The Balance Sheet and the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are
in agreement with the books of account;

d. In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

e. On the basis of the written representations received from the directors as on 31^st March, 2025 taken on record by
the Board of Directors, none of the directors is disqualified as on 31^st March, 2025 from being appointed as a direc¬
tor in terms of Section 164 (2) of the Act;

f. With respect to the adequacy of the internal financial controls with reference to financial statement of the Com¬
pany and the operating effectiveness of such controls, refer to our separate Report in “Annexure B”.

g. In our opinion and according to the information and explanations given to us, the remuneration paid by the Com¬
pany to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The
remuneration paid to any director is not in excess of the limit laid down under Section 197 read with Schedule V of
the Act.

h. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Com¬
panies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the
explanations given to us:

i. The Company does not have any pending litigations which would impact its financial position in its standalone
financial statements;

ii. The Company did not have any long-term contracts, including derivative contracts for which there were any
material foreseeable losses;

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund
by the Company.

iv. The management has represented that, to the best of its knowledge and belief,

a. The management has represented that, to the best of its knowledge and belief, no funds have been
advanced or lent 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 persons or entities, including foreign entities (“Intermediar-

ies”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:

• directly or indirectly lend or invest in other persons or entities identified in directly any manner what¬
soever (“Ultimate Beneficiaries”) by or on behalf of the Company or

• provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

b. The management has represented that, to the best of its knowledge and belief, no funds have been
advanced or lent 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 persons or entities, including foreign entities (“Intermediar¬
ies”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:

• directly or indirectly lend or inveft in other persons or entities identified in any manner whatsoever
(“Ultimate Beneficiaries”) by or on behalf of the Company or

• provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

c. Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing
has come to our notice that has caused us to believe that the representations under subclause (iv)(a) and
(iv)(b) contain any material misstatement.

v. According to the information and explanations given to us and based on the records of the Company
examined by us, there were no dividend declared or paid during the year by the Company.

vi. Based on our examination which included test checks, the company has used an ac¬
counting software for maintaining its books of account which has a feature of
re cording audit trail (edit log) facility and the same has operated throughout
the year for all relevant transactions recorded in the software. Further, during the course of our audit,
we did not come across any inftance of audit trail feature being tampered with.

For Bhuta Shah and Co LLP
Chartered Accountants
Firm Registration No.: 101474W/W100100

Atul Gala
Partner

Place:- Mumbai Membership No. 048650

Date:- 30th May, 2025 UDIN- 25048650BMLHQY9504