We have audited the accompanying standalone financial
statements of TARC Limited ("the Company"), which comprise
the Balance Sheet as at March 31,2026, the Statement of Profit
and Loss (including Other Comprehensive Income/(loss)), the
Statement of changes in Equity and the Statement of Cash Flows
for the year then ended, and Notes to Standalone Financial
Statement including a summary of the significant accounting
policies and other explanatory information (hereinafter referred
to as "the standalone financial statements").
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 Indian Accounting
Standards prescribed under section 133 of the Act read with
Companies (Indian Accounting Standards) Rules,2015, as
amended and accounting principles generally accepted in
India, of the state of affairs of the Company as at March 31,
2026, and loss (including other comprehensive income/(loss)),
changes in equity and its cash flows for the year then ended.
Basis for Opinion:
We conducted our audit of the standalone financial statements
in accordance with the Standards on Auditing specified under
section 143(10) of the Act (SAs). 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 in accordance
with the Code of Ethics issued by the Institute of Chartered
Accountants of India (ICAI) together with the independence
requirements that are relevant to our audit of the standalone
financial statements under the provisions of the Act and the
Rules made thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the
ICAI's 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 standalone financial statements.
Key Audit Matters
Key audit matters ("KAM") are those matters that, in our
professional judgement, were of the most significance in our
audit of the standalone financial statements of the current
period. 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. We have determined the
matters described below to be the key audit matters to be
communicated in our report.
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Description of Key Audit Matters
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S r.
Key Audit Matters
No.
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How that matter was addressed in our audit report
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1 Revenue recognition as per Ind AS 115
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Our audit procedures on revenue recognition included the
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The company follows Ind AS 115 for revenue recognition.
Revenue from sale of real estate properties/constructed
properties is recognized at a point of time when the
company satisfies performance obligations, by offering
possession/ registration and the customer obtaining
control of the underlying asset. Considering application of
Ind AS 115 involves significant judgement in identifying
performance obligation and determining when control of
assets underlying the performance obligation is transferred
to the customer, the same have been considered as key audit
matter.
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following:-
• We have evaluated that the company's revenue
recognition policy is in accordance with Ind AS 115.
• We tested performance obligation satisfied by
the company.
• We verified builder buyer agreements, occupancy
certificates (OCs), possession letter, sale proceeds of
customers, credit notes to test transfer of control for
revenue recognition.
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Sr.
No.
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Key Audit Matters
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How that matter was addressed in our audit report
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2
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Inventories
The company's inventories comprise mainly of land, plots,
finished real estate properties and construction work in
progress.
The inventories are carried at lower of cost and net realizable
value (NRV). NRV of land, stock of completed property,
project in progress is assessed by reference to market price
existing at the reporting date and based on comparable
transactions made by the company and/or identified by the
company for properties in same geographical area. NRV of
properties under construction is assessed with reference to
market value of completed property as at the reporting date
less estimated cost to complete.
The carrying value of inventories is significant part of the total
assets of the company and involves significant estimates and
judgments in assessment of NRV. Accordingly, it has been
considered as key audit matter.
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Our audit procedures to assess the net realizable value (NRV)
of the inventories include the following:
• We had discussions with Management to understand
Management's process and methodology to estimate
NRV, including key assumptions used.
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3
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Investment in subsidiaries
The company has significant investments in the subsidiary
companies. These investments are carried at cost.
Management reviews whether there are any indicators
of impairment of investments. For impairment testing,
management has to do assessment of the cash flows of these
entities and/or value of underlying assets in these entities.
Impairment assessment involves estimates and judgements
in forecasting future cash flows, accordingly, it has been
considered as key audit matter.
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Our audit procedures include:
• We compared carrying value of investment in the books
of company with Net Asset Value (NAV) of relevant
subsidiaries considering fair value of stocks of land,
projects in progress/completed real estate projects (Refer
Note no. 4.3 of Standalone Financial Statements).
• Verified that required disclosures in respect of these
investments has been made in the financial statements.
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4
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Recognition and measurement of deferred tax assets
Under Ind AS, the company is required to reassess recognition
of deferred tax asset at each reporting date. The company has
deferred tax assets in respect of brought forward losses and
other temporary differences, as set out in Note no. 8 to the
Standalone Financial Statements.
The company's deferred tax assets in respect of brought
forward business losses are based on the projected profitability
of upcoming real estate projects. This is determined on the
basis of business plans demonstrating availability of sufficient
taxable income to utilize such deferred tax asset.
We have identified recognition of deferred tax assets as
key audit matter because of the related complexity and
subjectivity of the assessment process. The assessment
process is based on assumptions affected by expected future
market or economic conditions.
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Our Audit procedures include:
• Obtaining the business plans, projected profitability
statements for the upcoming real estate projects.
• Evaluating the design and testing the operating
effectiveness of controls over assessment of deferred tax
balances and underlying data.
• We tested the computations of amount and tax rate used
for recognition of deferred tax assets.
• We verified the disclosure made by the company in
respect of deferred tax assets.
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Other Information
The Company's Management and Board of Directors are responsible for the preparation of the other information. The other
information comprises the information included in the Management Discussion and Analysis, Board's Report including Annexures
to Board's Report, Business Responsibility Report, Corporate Governance and Shareholder's Information, but does not include the
standalone financial statements and our auditor's report thereon. The other information is expected to make available to us after
the date of audit 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 during the course of our audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that
there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in
this regard.
Management's Responsibility for the Standalone
Financial Results
The Company's Management and Board of Directors are
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, total comprehensive income, changes in
equity and cash flows of the Company in accordance with the
Ind AS and other accounting principles generally accepted in
India. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act
for safeguarding the assets of the Company 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 standalone
financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, 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 realistic alternative but to do so.
The Board of Directors are responsible for overseeing the
Company's financial reporting process.
Auditor's Responsibilities for the Audit of the
Standalone Financial Results
Our objectives are to obtain reasonable assurance about
whether the standalone 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.
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,
misrepresentations, 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 whether the Company has adequate
internal financial controls system 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.
Materiality is the magnitude of misstatements in the standalone
financial statements that, individually or in aggregate, makes
it probable that the economic decisions of a reasonably
knowledgeable user of the standalone financial statements
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 misstatements in the standalone
financial statements.
guarantee, security or the like on behalf of the
Ultimate Beneficiaries;
(c) ased on the audit procedures that have been
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 (i) and (ii) of
Rule 11(e), as provided under (a) and (b) above,
contain any material misstatement.
v. (a) No final dividend was proposed in the previous
year which was required to be paid by the
company during the year.
(b) No interim dividend was declared or paid
during the year.
(c) The Board of Directors of the company have not
proposed any final dividend for the year.
vi. ased on our examination, which included test checks,
the Company has used an accounting software for
maintaining its books of account for the financial
year ended March 31, 2026 which has a feature of
recording audit trail (edit log) facility and the same
has operated for all relevant transactions recorded
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
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.
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 period 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.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our
audit, 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, the Statement of Profit and Loss
(including other comprehensive income), the Statement
of Cash Flow and the Statement of Changes in Equity dealt
with by this report are in agreement with the relevant
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 31,2026 taken on record by the
Board of Directors, none of the directors is disqualified as
on March 31,2026 from being appointed as a director in
terms of Section 164(2) of the Act.
f. With respect to the adequacy of the internal financial
controls over financial reporting of the Company and
the operating effectiveness of such controls, refer to our
separate report in "Annexure-N". Our report expresses
an unmodified opinion on the adequacy and operating
effectiveness of the Company's internal financial controls
over financial reporting.
g. With respect to the other matters to be included in the
Auditor's Report in accordance with the requirements of
section 197(16) of the Act:
In our opinion and to the best of our information and
according to the explanations given to us, remuneration
paid by the Company to its directors during the current
year is in accordance with the provisions of 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
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.
ii. The Company has made provision, as required
under the applicable law or accounting standards,
for material foreseeable losses, if any, on long-term
contracts. The Company did not have any derivative
contracts as at March 31,2026.
iii. There are no amounts, required to be transferred,
to the Investor Education and Protection Fund by
the Company.
iv. (a) The Management has represented that, to
the best of its knowledge and belief, no funds
(which are material either individually or in
the aggregate) have been advanced or loaned
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
person or entity, including foreign entity
("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;
(b) The Management has represented, that, to
the best of its knowledge and belief, no funds
(which are material either individually or in
the aggregate) have been received by the
Company from any person or entity, including
foreign entity ("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
in the software after implementation of audit trail in
accounting software. However, due to the inherent
limitation of the accounting software, we are unable
to comment whether there were any instances of the
audit trail feature been tempered during the audit
period and further audit trail has been preserved
by the Company as per the statutory requirements
for record retention (refer note no 49 (xii) of the
standalone financial statements).
2. 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 Companies Act, 2013, we give in the "Annexure I" a
statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
For Doogar & Associates
Chartered Accountants
Firm's Registration No: 000561N
Madhusudan Agarwal
Partner
Place: New Delhi Membership No: 086580
Date: May 29, 2026 UDIN: 26086580MUULAZ8555
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