1. We have audited the accompanying standalone
financial statements of Keystone Realtors Limited
(“the Company”) and its jointly controlled entities
(refer Note 55 to the standalone financial statements),
which comprise the Standalone Balance Sheet as
at March 31, 2025, and the Standalone Statement
of Profit and Loss (including Other Comprehensive
Loss), the Standalone Statement of Changes in
Equity and the Standalone Statement of Cash Flows
for the year then ended, and notes to the standalone
financial statements, including material accounting
policy information and other explanatory information.
2. In our opinion and to the best of our information
and according to the explanations given to us, the
aforesaid standalone 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 principles
generally accepted in India, of the state of affairs of
the Company and its jointly controlled entities as at
March 31, 2025, and total comprehensive income
(comprising of profit and other comprehensive loss),
changes in equity and its cash flows for the year then
ended.
BASIS FOR OPINION
3. 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 Standalone
Financial Statements” section of our report. We are
independent of the Company and its jointly controlled
entities in accordance with the Code of Ethics
issued by the Institute of Chartered Accountants
of India together with the ethical requirements that
are relevant to our audit of the standalone 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 opinion.
KEY AUDIT MATTERS
4. Key audit matters 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.
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Key audit matter
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How our audit addressed the key audit matter
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Revenue recognition from Contract with Customers
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(Refer Note 1B(a) and 32 to the standalone financial
statements).
In accordance with the requirements of Ind AS 115
‘Revenue from contract with customers', revenue from
sale of residential units are recognised at a point in time
or over time based on the contract entered with the
customers.
Significant judgement is required in identifying the
performance obligations and determining when ‘control'
of the residential units is transferred to the customer.
Further, the Company assesses various conditions
included in the contact with customer to identify whether
the Company has unconditional right to payment for
performance to date or not. Based on this revenue is
recognised at point in time or over time.
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Our audit procedures in relation to management's
assessment of revenue recognition includes following:
• Read the Company's revenue recognition accounting
policies and assessed compliance with Ind AS 115
‘Revenue from contract with customers'.
• Understood and evaluated the design and
implementation, and tested the operating effectiveness
of the Company's internal financial controls over
revenue recognition.
• Obtained and read the customer contracts on a
test check basis and evaluated the management
assessment with respect to satisfaction of performance
obligations at a point in time or over time and that
revenue is recognised in accordance with the
accounting policy.
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• Tested sales transaction during the year on a sample
basis, by examining the underlying customer contracts
and final demand letter evidencing the transfer of
control of the residential unit to the customer along
with occupation certificate based on which revenue is
recognised.
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Key audit matter
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How our audit addressed the key audit matter
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Considering the above-mentioned factors, revenue
recognition has been considered as a key audit matter.
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• Assessed the appropriateness and adequacy of
revenue-related disclosures in accordance with
applicable Indian Accounting Standards and applicable
financial reporting framework in the standalone
financial statements.
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Assessment of net realisable value (NRV) of inventories
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(Refer Note 1B(g) and 11 to the standalone financial
statements).
The Company's inventory is stated at the lower of
cost and NRV. As at March 31, 2025 the carrying value
of inventories is ' 119,178 Lakh (refer Note 11 to the
standalone financial statements).
NRV determination involves estimates based on
prevailing market conditions, current prices, the
estimated future selling price, cost to complete projects
and selling costs.
Considering the significance of the carrying value of
inventories in the standalone financial statements and
the involvement of significant estimation and judgement
in assessment of NRV, the same has been considered as
a key audit matter.
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Our audit procedures in relation to management's
assessment of valuation of inventories at lower of cost and
NRV includes following:
• Read and evaluated the accounting policies with
respect to inventories.
• Understood and evaluated the design and
implementation, and tested the operating effectiveness
of the Company's internal financial controls over
valuation of inventories.
• Tested on a sample basis that inventories are held
at the lower of cost and NRV, by comparing cost of
inventory and estimated cost to complete the project
with corresponding selling price or the estimated future
selling price by reference to recent market prices in the
same projects or comparable properties, net of selling
cost.
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• Assessed the appropriateness and adequacy of the
inventory related disclosures in accordance with
applicable Indian Accounting Standards and applicable
financial reporting framework in the standalone
financial statements.
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Assessing impairment of Investments in and loans given to subsidiaries, joint ventures, associates and other
related parties
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(Refer Note 7 and 15 to the standalone financial
statements).
As at March 31, 2025, the carrying values of Company's
investment in subsidiaries, joint ventures, and associates
is amounting to ' 46,824 Lakh. Further, the Company
has granted loans to its subsidiaries, joint ventures,
associates and other related parties amounting to '
99,746 Lakh as at March 31, 2025 (Refer Note 15 to the
standalone financial statements).
Management reviews regularly whether there are any
indicators of impairment of the investments by reference
to the requirements under Ind AS 36 “Impairment of
Assets”. For cases where impairment indicators exist,
management estimates the recoverable amounts. An
impairment loss is recognised if the recoverable amount
is lower than the carrying value. The recoverable amount
is determined based on the higher of value in use and
fair value less costs to sell.
In respect of loans, the management performs the credit
risk assessment for each loan by assessing whether the
borrower has a financial capability to meet its cash flow
obligations.
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Our audit procedures in relation to management's
impairment assessment of investments and loans in
subsidiaries, joint ventures, associates and other related
parties includes following:
• Read and evaluated the accounting policies with
respect to impairment.
• Understood and evaluated the design and
implementation, and testing operating effectiveness
of controls over the Company's process of impairment
assessment.
• Tested samples of investment made and loans granted
by the Company and assessed the financial condition of
entities in whom the investments were made or loans
were granted by obtaining the most recent audited
financial statements of such entities.
• Performed inquiries with management on the project
status and tested future business plan of entities in
whom investments were made or to whom loans were
granted to evaluate their recoverability.
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Key audit matter
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How our audit addressed the key audit matter
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Significant judgements are required to determine the
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• Assessed the appropriateness of the Company's
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key assumptions used in determination of recoverable
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valuation methodology and model used to determine
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amount or forecast cash flow of borrowers which
includes estimation of expected selling price, cost to
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the recoverable amount.
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complete the project and discount rate.
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• Tested reasonableness of assumptions such as
expected selling price, cost to complete the project
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The assessment of the recoverable amounts requires
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and discount rate based on current economic and
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the use of significant judgements and estimates, and
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market conditions used for determining the recoverable
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thus same has been considered as a key audit matter.
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amount/financial capability and performed a sensitivity
analysis over key assumptions used in determining the
recoverable amount.
• Assessed the appropriateness and adequacy of the
disclosures made by the management in respect
of such investments and loans in subsidiaries, joint
ventures, associates and other related parties in
accordance with applicable Indian Accounting
Standards and applicable financial reporting framework
in the standalone financial statements.
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OTHER INFORMATION
5. The Company's Board of Directors is responsible
for the other information. The other information
comprises the information included in the annual
report but does not include the standalone financial
statements and our auditor's report thereon. The
annual report is expected to be made available to us
after the date of auditor's report.
Our opinion on the standalone financial statements
does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other
information and, in doing so, consider whether the
other information is materially inconsistent with the
standalone financial statements, or our knowledge
obtained in the audit or otherwise appears to be
materially misstated.
When we read the annual report, if we conclude
that there is a material misstatement therein, we are
required to communicate the matter to those charged
with governance and take appropriate action as
applicable under the relevant laws and regulations.
RESPONSIBILITIES OF MANAGEMENT AND
THOSE CHARGED WITH GOVERNANCE FOR
THE STANDALONE FINANCIAL STATEMENTS
6. The Company's Board of Directors is responsible
for the matters stated in Section 134(5) of the Act
with respect to the preparation of these standalone
financial statements that give a true and fair view of
the financial position, financial performance, changes
in equity and cash flows of the Company and its
jointly controlled entities in accordance with the
accounting principles generally accepted in India,
including the Indian 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
its jointly controlled entities and for preventing and
detecting frauds and other irregularities; selection
and application of appropriate accounting policies;
making judgments and estimates that are reasonable
and prudent; and design, implementation and
maintenance of adequate internal financial controls,
that were operating effectively for ensuring the
accuracy and completeness of the accounting
records, relevant to the preparation and presentation
of the financial statements that give a true and fair
view and are free from material misstatement,
whether due to fraud or error.
7. In preparing the standalone financial statements,
Board of Directors 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 Board of Directors either intends
to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
8. Those Board of Directors are also responsible
for overseeing the Company's financial reporting
process.
AUDITOR'S RESPONSIBILITIES FOR THE
AUDIT OF THE STANDALONE FINANCIAL
STATEMENTS
9. Our objectives are to obtain reasonable assurance
about whether the financial statements as a whole
are free from material misstatement, whether due
to fraud or error, and to issue an auditor's report
that includes our opinion. Reasonable assurance
is a high level of assurance but is not a guarantee
that an audit conducted in accordance with SAs
will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the
aggregate, they could reasonably be expected to
influence the economic decisions of users taken on
the basis of these standalone financial statements.
10. As part of an audit in accordance with SAs, we exercise
professional judgement and maintain professional
scepticism 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, misrepresentations, or the override of
internal control.
Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances Under Section
143(3)(i) of the Act, we are also responsible for
expressing our opinion on whether the Company has
adequate internal financial controls with reference
to standalone financial statements in place and the
operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
Conclude on the appropriateness of management's
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company's ability to continue as a going concern. If
we conclude that a material uncertainty exists, we
are required to draw attention in our auditor's report
to the related disclosures in the standalone 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 standalone financial statements,
including the disclosures, and whether the
standalone financial statements represent the
underlying transactions and events in a manner that
achieves fair presentation.
11. 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.
12. We also provide those charged with governance with
a statement 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.
13. From the matters communicated with those charged
with governance, we determine those matters
that were of most significance in the audit of the
standalone financial statements of the current year
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 circumstances, 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 interest benefits of such communication.
OTHER MATTER
14. The financial statements of 2 jointly controlled entities
(refer Note 55 to the standalone financial statements)
included in the standalone financial statements
of the Company reflect total assets of ' 7,051 Lakh
and net assets of ' 1,324 Lakh as at March 31, 2025,
total revenue of ' 297 Lakh, total comprehensive
loss (comprising of loss and other comprehensive
income) of ' 36 Lakh and net cash inflows amounting
to ' 31 Lakh for the year then ended. These financial
statements and other financial information have been
audited by other auditors whose reports have been
furnished to us by the management, and our opinion
on the standalone financial statements (including
other information) in so far as it relates to the amounts
and disclosures included in respect of these jointly
controlled entities, is based on the reports of such
other auditors and the procedures performed by us.
Our opinion on the standalone financial statements
and our report on Other Legal and Regulatory
Requirements below, is not modified in respect of the
above matter of our reliance on the work done and
reports of the other auditors.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
15. 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 B"
a statement on the matters specified in paragraphs 3
and 4 of the Order, to the extent applicable.
16. 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 except for the matters stated in
paragraph 16(h)(vi) below on reporting under
Rule 11(g) of the Companies (Audit and Auditors)
Rules, 2014 (as amended).
(c) The Standalone Balance Sheet, the Standalone
Statement of Profit and Loss (including other
comprehensive loss), the Standalone Statement
of Changes in Equity and the Standalone
Statement of Cash Flows 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 Indian Accounting
Standards specified under Section 133 of the
Act.
(e) On the basis of the written representations
received from the directors as on March 31,
2025, taken on record by the Board of Directors,
none of the directors is disqualified as on March
31, 2025, from being appointed as a director in
terms of Section 164(2) of the Act.
(f) With respect to the maintenance of accounts
and other matters connected therewith,
reference is made to our remarks in paragraph
16(b) above on reporting under Section 143(3)
(b) and paragraph 16(h)(vi) below on reporting
under Rule 11(g) of the Rules.
(g) With respect to the adequacy of the internal
financial controls with reference to standalone
financial statements of the Company and the
operating effectiveness of such controls, refer to
our separate Report in "Annexure A".
(h) With respect to the other matters to be included
in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules,
2014 (as amended), in our opinion and to the
best of our information and according to the
explanations given to us:
i. The Company has disclosed the impact of
pending litigations on its financial position
in its standalone financial statements-
Refer Note 51 to the standalone financial
statements.
ii. The Company was not required to recognise
a provision as at March 31, 2025 under
the applicable law or Indian Accounting
Standards, as it does not have any material
foreseeable losses on long-term contract.
The Company did not have any derivative
contracts as at March 31, 2025.
iii. There were no amounts which were
required to be transferred to the Investor
Education and Protection Fund by the
Company during the year ended March 31,
2025.
iv. (a) The management has represented
that, to the best of its knowledge and
belief, as disclosed in Note 59(vii) to the
standalone financial statements, no
funds have been advanced or loaned
or i nvested (either from borrowed funds
or share premium or any other sources
or kind of funds) by the Company to or
in any other person or entity, including
foreign entities (“Intermediaries”), with
the understanding, whether recorded
in writing or otherwise, that the
Intermediary shall, whether, directly
or indirectly, lend or invest in other
persons or entities identified in any
manner whatsoever by or on behalf of
the Company (“Ultimate Beneficiaries”)
or provide any guarantee, security
or the like on behalf of the Ultimate
Beneficiaries (Refer Note 59(vii) to the
standalone financial statements);
(b) The management has represented
that, to the best of its knowledge
and belief, other than as disclosed
in the Note 59(vii) to the standalone
financial statements, no funds have
been received by the Company from
any person or entity, including foreign
entities (“Funding Parties”), with the
understanding, whether recorded in
writing or otherwise, that the Company
shall, whether, directly or indirectly,
lend or invest in other persons or
entities identified in any manner
whatsoever by or on behalf of the
Funding Party (“Ultimate Beneficiaries”)
or provide any guarantee, security
or the like on behalf of the Ultimate
Beneficiaries (Refer Note 59(vii) to the
standalone financial statements); and
(c) Based on such audit procedures
that we considered reasonable and
appropriate in the circumstances,
nothing has come to our notice that
has caused us to believe that the
representations under sub-clause
(a) and (b) contain any material
misstatement.
v. As stated in note 61 to the standalone
financial statements, the Board of Directors
of the Company has proposed final dividend
for the year which is subject to the approval
of the members at the ensuing Annual
General Meeting. The dividend declared is
in accordance with section 123 of the Act
to the extent it applies to declaration of
dividend.
vi. Based on our examination, which included
test checks, the Company has used
accounting software for maintaining its
books of account which has a feature of
recording audit trail (edit log) facility and
that has operated throughout the year for
all relevant transactions recorded in the
software, except that the audit trail is not
maintained for certain transactions, for
changes made through specific access
and for direct database changes. During
the course of performing our procedures,
other than the aforesaid instances of audit
trail not maintained where the question of
our commenting does not arise, we did not
notice any instance of audit trail feature
being tampered with, or not preserved
by the Company as per the statutory
requirements for record retention.
17. The Company has paid/provided for managerial
remuneration in accordance with the requisite
approvals mandated by the provisions of Section 197
read with Schedule V to the Act.
For Price Waterhouse Chartered Accountants LLP
Firm Registration No. 012754N/N500016
Pankaj Khandelia
Partner
Membership No. 102022
UDIN: 25102022BMOKWI3622
Place: Mumbai
Date: May 14, 2025
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