We have audited the standalone Ind AS financial statements of Thakkers Developers Limited ('the
Company'), which comprise the Balance sheet as at 31 March 2025, the Statement of Profit and Loss
including the Statement of Other Comprehensive Income, the Cash flow statement for the year then ended,
and a Statement of changes in equity for the year ended and notes to standalone Ind AS financial
statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
standalone Ind AS financial statements give the information required by the Companies Act, 2013, as
amended (“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 as at March 31,2025, and profit
including other comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on
Auditing (SAs), as 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 Ind AS 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 together with the ethical re quirements 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 obtained by us is sufficient and appropriate to provide a basis
for our opinion on the standalone Ind AS financial statements.
Emphasis of Matter paragraph
1. We draw attention to the following matters
a) Of the total tangible assets of Rs. 657.41 Lakhs (Written down value), Vehicles of Rs. 56.65 Lakhs
(Written down value) are registered in the name of the Directors and vehicles of Rs 0.43 Lakhs are
registered in the name of relatives of the Directors.
b) Further it was noted that the internal financial controls of the company need to be strengthened to
commensurate with the nature and size of the company.
Our report is not modified in respect of above matters.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the standalone Ind AS financial statements for the financial year ended March 31,2025. These matters
were addressed in the context of our audit of the standalone Ind AS financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter
below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our
report. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the
standalone Ind AS financial statements section of our report, including in relation to these matters.
Accordingly, our audit included the performance of procedures designed to respond to our assessment of
the risks of material misstatement of the standalone Ind AS financial statements. The results of our audit
procedures, including the procedures performed to address the matters below, provide the basis for our
audit opinion on the accompanying standalone Ind AS financial statements.
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Key audit matters
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How our audit addressed the key audit matter
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1. Revenue recognition: The revenue from
estate dealing and development activities
represents 57.26% of the total revenue from
operations of the company. The Company
recognizes revenue, on execution of agreement
and letter of allotment and when control of the
goods or services are transferred to the customer,
at an amount that reflects the consideration (i.e.
the transaction price) to which the Company is
expected to be entitled in exchange for those
goods or services excluding any amount received
on behalf of third party (such as indirect taxes).
The revenue from construction activities and sale
of flats/shops represent the remaining 42.74% of
the total revenue from operations of the company.
Significant accounting judgments includes
estimation of costs to complete, determining the
stage of completion and the timing of revenue
recognition in this case.
For majority of its contracts, the Company
recognizes revenue and profit on the stage of
completion based on the proportion of contract
costs incurred for the work performed to the
balance sheet date, relative to the estimated costs
on the contract at completion. The recognition of
revenue and profit / loss therefore is based on
estimates in relation to the estimated total costs of
each contract.
The Company transfers control of a good or
service over time and, therefore, satisfies a
performance obligation and recognizes revenue
overtime. The Company recognizes revenue for
performance obligation satisfied over time only if
it can reasonably measure its progress towards
complete satisfaction of the performance
obligation. The Company would not be able to
reasonably measure its progress towards
complete satisfaction of a performance obligation
if it lacks reliable information that would be
required to apply an appropriate method of
measuring progress. In those circumstances, the
Company recognizes revenue only to the extent
of cost incurred until it can reasonably measure
outcome of the performance obligation.
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Our audit procedures on Revenue recognition included
the following:
• Evaluating that the Company's revenue recognition
accounting policies are in line with the applicable
accounting standards and their application to the key
customer contracts including consistent application;
• Sales cut-off procedures for determination of revenue
in the correct reporting period;
• Scrutinizing all the revenue journal entries raised
throughout the reporting period and comparing details
of a sample of these journals, which met certain risk-
based criteria, with relevant underlying
documentation;
• In addition, we have performed the following
procedures:
• Testing the design and implementation of internal
controls including control over process for
determining estimates used as evaluating whether
they are operating effectively.
• Testing sample sales of units for projects with the
underlying contracts, completion status and proceeds
received from customers;
• Identified and tested operating effectiveness of key
controls around approvals of contracts, intimation of
possession letters and controls over collection from
customers; and
• Compared, on a sample basis, revenue transactions
recorded during the year with the underlying
contracts, progress reports, invoices raised on
customers and collections in bank accounts and
whether the related revenue had been recognized in
accordance with the Company's revenue recognition
policies;
• Identification and testing operating effectiveness of
key controls over recording of actual costs incurred
for the projects;
• Review of the costs to complete workings, comparing
the costs to complete with the budgeted costs and
inquiring into reasons for variance; and
• Sighting approvals for changes in budgeted costs with
the rationale for the changes and assessment of
contract costs to determine no revenue nature costs
are taken to inventory.
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2. Inventories: Inventories comprising of finished
goods and construction work in progress along
with respective development costs represents
37.74% of the Company's total assets. The
development costs incurred on stock, have been
directly debited to the stock value under the
current assets without routing the same through
the Profit and Loss Account. The same is taken
into consideration while arriving profit from sale
of any stock item and proportionate value is
debited to profit and loss account at the time of
sale.
Construction materials
The construction materials and consumables
not separately valued. It is treated as part of
project cost on purchase for a particular project.
Project work in progress is accordingly valued.
Construction work in progress
The construction work in progress is valued at
lower of cost or net realizable value. Work in
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Our audit procedures to assess the net realizable
value (NRV) of inventories included the following:
• Evaluating the design and operative effectiveness of
internal controls relating to valuation of inventories.
• Discussion with the management to understand the
basis of calculation and justification for the estimated
recoverable amounts of the unsold units and TDR
(“the NRV assessment”);
• Evaluating the design and implementation of the
Company's internal controls over the NRV
assessment. Our evaluation included assessing
whether the NRV assessment was prepared and
updated by appropriate personnel of the Company
and whether the key estimates, including estimated
future selling prices and costs of completion for all
property development projects, used in the NRV
assessment, were discussed and challenged by
management as appropriate;
• Evaluating the management's valuation methodology
and assessing the key estimates, data inputs and
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Progress in respect of tenement of Flats/shops
booked is valued at proportionate sale value.
Cost includes cost of land, development rights,
rates and taxes, construction costs, borrowing
costs, other direct expenditure, allocated
overheads and other incidental expenses. Net
realizable value is the estimated selling price in
the ordinary course of business, less estimated
costs of completion and the estimated costs
necessary to make the sale.
Finished stock of completed projects (ready
units)
Finished stock of completed projects comprises
of 55.39% of the total inventory of the company.
Finished stock of completed projects and stock
in trade of units is valued at lower of cost or net
realizable value.
Estate Dealing/development activity
At cost including attributable development
expenses or net realizable value whichever is
less.
T ransfer of Development Rights
Self-generated TDR is valued at stipulated
percentage of cost of area in respect of which
TDR is generated.
TDR purchased is valued at cost or net
realizable value whichever is lower.
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assumptions adopted in the valuations, which
included comparing expected future average selling
prices with available market data such as recently
transacted prices for similar properties located in the
nearby vicinity of each property development project
and the sales budget plans maintained by the
Company;
• Re-performing the calculations of the NRV
assessment and comparing the estimated
construction costs to complete each development
with the Company’s updated budgets on sample
basis.
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3. Accuracy and completeness of related party
transactions and disclosures
Advances to related parties represent 28.40% of
the total assets and Advances from related
parties represent 9.75% of the total liabilities of
the company. The Company has undertaken
transactions with its related parties in the normal
course of business at arm’s length. These
transactions include making new or additional
investments, lending and borrowing of advances
in the related parties. We identified the accuracy
and completeness of the said related party
transactions and its disclosure as set out in
respective notes to the financial statements as a
key audit matter due to the significance of
transactions with related parties during the year
ended March 31, 2025 and regulatory
compliance thereon.
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• Obtained and read the Company’s policies,
processes and procedures in respect of identifying
related parties, evaluation of arm’s length, obtaining
approval, recording and disclosure of related party
transactions.
• We tested, on a sample basis, related party
transactions with the underlying contracts and other
supporting documents and for appropriate
authorization and approval for such transactions.
• We read minutes of shareholder meetings, board
meetings and minutes of meetings of those charged
with governance in connection with Company’s
assessment of related party transactions being in the
ordinary course of business at arm’s length.
• Agreed the related party information disclosed in the
financial statements with the underlying supporting
documents, on a sample basis.
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Other Information
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 Ind AS financial
statements and our auditor’s report thereon.
Our opinion on the standalone Ind AS 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 Ind AS financial statements, our responsibility is to read the
other information and, in doing so, consider whether such other information is materially inconsistent with
the financial statements or our knowledge obtained in the 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.
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 necessary actions, as applicable
under the relevant laws and regulations.
Management’s and Board of Directors’ Responsibilities for the Standalone Ind AS Financial
Statements
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 Ind AS financial statements that give a true
and fair view of the financial position, financial performance including other comprehensive income, cash
flows and changes in equity of the Company in accordance with the accounting principles generally accepted
in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with
the Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 estimates that are reasonable and
prudent; and the 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 Ind AS 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 Ind AS financial statements, the management and board of directors are
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 the board of
directors either intend to liquidate the Company or to cease operations, or has no realistic alternative but to
do so.
Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone Ind AS 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 Ind AS 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 Ind AS 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 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 the 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 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 Ind AS financial statements,
including the disclosures, and whether the standalone Ind AS financial statements represents the
underlying transactions and events in a manner that achieves fair presentation.
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 Ind AS 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
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 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”,
a statement on the matters specified in the paragraph 3 and 4 of the order, to the extent applicable.
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, the statement of profit and loss (including other comprehensive income) and
the cash flow statement and the Statement of Changes in Equity dealt with by this Report are in
agreement with the books of account;
(d) In our opinion, the aforesaid Ind AS financial statements comply with the applicable Indian
Accounting Standards specified under Section 133 of the Act read with Companies (Indian
Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors as on 31 March 2025 taken
on record by the Board of Directors, none of the directors is disqualified as on 31 March 2025 from
being appointed as a director in terms of Section 164 (2) of the Act;
(f) the modifications relating to the maintenance of accounts and other matters connected therewith
are as stated in the paragraph 2(b) above on reporting under Section 143(3)(b) and paragraph
2(h)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
(g) With respect to the adequacy of the internal financial controls over financial reporting of the
Company with reference to these standalone Ind AS financial statements and the operating
effectiveness of such controls, refer to our separate Report in “Annexure B” to this report;
(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, 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 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.
(i) The management of the Company and its joint operation companies incorporated in India whose
financial statements has been audited under the Act has represented to us that, to the best of
its knowledge and belief, no funds 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(s) or entity(ies), including foreign entities (“Intermediaries”), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether,
(a) 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
(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ii) The management of the Company and its joint operation companies incorporated in India whose
financial statements has been audited under the Act has represented to us that, to the best of
its knowledge and belief, no funds have been received by the company from any person(s) or
entity (ies), including foreign entities. (“Funding Parties”), with the understanding, whether
recorded in writing or otherwise, that the Company shall, whether,
(a) 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”)
(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(iii) Based on the audit procedures performed 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. The company has not declared/proposed any interim and final dividend for the year and previous
financial year.
vi. Based on our examination which included test checks, except for the instances mentioned below,
the Company has used accounting software for maintaining its books of account, which have a
feature of recording audit trail (edit log) facility and the same has operated throughout the year for
all relevant transactions recorded in the software
The feature of recording audit trail (edit log) facility was not enabled at the database level to log
any direct data changes for the accounting software used for maintaining the books of account.
Further, for the periods where audit trail (edit log) facility was enabled and operated for the
accounting software, we did not come across any instance of the audit trail feature being tampered
with.
3. With respect to the matter to be included in the Auditors’ Report under section 197(16):
In our opinion and according to the information and explanations given to us, the remuneration paid by
the Company 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 of the Act.
The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) which are
required to be commented upon by us.
For and on behalf of
M/s. Karwa Malani Kalantri & Associates
Chartered Accountants
Firm Registration No-136867W
CA Sagar R Malani
Partner
Membership No. 145049
UDIN: 25145049BMOBSJ8319
Place: Nashik
Date: May 29, 2025
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