1. We have audited the accompanying Standalone Financial
Statements of Kalpataru Limited ('the Company'), which
comprise the Standalone Balance Sheet as at 31 March
2026, and the Standalone Statement of Profit and Loss
(including Other Comprehensive Income), Standalone
Statement of Changes in Equity and Standalone Statement
of Cash Flows for the year ended on that date, and notes
to the Standalone Financial Statements, including a
summary of material accounting policy information
and other explanatory information ('the Standalone
Financial Statements').
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 ('Act') in the manner
so required and give a true and fair view in conformity with
the Indian Accounting Standards prescribed under section
133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended, ('Ind AS') and other
accounting principles generally accepted in India, of the
State of Affairs of the Company as at 31 March 2026, and
its Loss and Other Comprehensive Income, Changes in
Equity and its Cash Flows for the year ended on that date.
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 SAs 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
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 on the
Standalone Financial Statements.
Key Audit Matter
4. Key audit matters are those matters that, in our
professional judgment, 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 matte
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Key Audit Matter
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How the matter was addressed in our audit
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Revenue recognition from sale of real estate units
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Our audit procedures included, among others:
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The Company recognize revenue from sale of real estate units
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1.
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Read the accounting policy for revenue recognition of the
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at a point in time and over period of time in compliance with
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Company and assessed compliance with the requirements of
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requirements of Ind AS 115, upon the Company satisfying
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Ind AS 115.
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performance obligations under the contract with the customer
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2.
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Assessed the management evaluation of recognising revenue
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and the control of the underlying asset gets transferred to the
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from real estate contracts over a period of time / point in time
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customer. This requires significant judgments in identifying
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in accordance with the requirements under Ind AS 115.
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the performance obligations and determining when control of
the asset underlying the performance obligation is transferred
to the customer and estimating stage of completion, basis
which revenue is recognised as per Ind AS 115.
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3.
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Tested controls and management processes for revenue
recognition including identification of performance obligations
and determination of transfer of control of the property to the
customer.
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4.
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Verified the sample of revenue contract for sale of real
estate units to identify the performance obligations of the
Company under these contracts and assessed whether these
performance obligations are satisfied over time or at a point
in time based on the criteria specified under Ind AS 115.
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5.
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Verified possession letters, registration documents and other
documents evidencing the transfer of control of the asset to
the customer based on which the revenue is recognized etc.
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Key Audit Matter
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How the matter was addressed in our audit
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Hence Revenue Recognition from the Sale of Real Estate Units
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6.
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Performed cut-off testing to ensure revenue was recognized
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has been considered a key audit matter.
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in the appropriate period.
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7.
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We evaluated the adequacy of the Company's disclosures
related to revenue recognition and compliance with the
requirements of Ind AS 115.
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Valuation of Inventory
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Our audit procedures included, among others:
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The Inventory comprises land, development rights,
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1.
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Obtained an understanding and tested the design and
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construction work-in-progress, and completed real estate
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implementation of key controls over the inventory valuation
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units. As at the reporting date, this forms a significant portion
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process.
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of the total assets.
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2.
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Verified the accuracy of cost components recorded in project-
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As per Ind AS 2 Inventories, inventory is required to be valued
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wise ledgers, including land acquisition costs, construction
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at the lower of cost and net realizable value (NRV). The cost
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costs, and overhead allocations.
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of inventory includes land acquisition costs, construction
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3.
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Assessed the reasonableness of management's estimates
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and development expenditure, and attributable overheads,
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of total project cost and cost to complete by comparing to
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which are allocated to specific projects and units based on
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historical trends, budgets, and actual costs incurred.
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management estimates. The NRV is determined based on the
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4.
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For completed units, compared the NRV with recent market
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estimated selling price in the ordinary
course of business, less the estimated costs to complete the
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5.
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transactions and sale agreements.
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Reviewed physical verification reports conducted by
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project and to sell.
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management, where applicable, relied on physical verification
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Significant management judgments are involved in:
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reports of other auditor.
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• Estimating the total project cost and expected
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6.
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Evaluated the appropriateness of the accounting policy
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costs to complete
• Allocating costs to inventory units
• Determining the NRV, particularly where projects are
incomplete or where market evidence is limited.
Given the materiality of the balance and the estimation
uncertainty involved, inventory valuation has been considered
a key audit matter.
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adopted for inventory valuation and assessed the adequacy of
related disclosures in the Standalone Financial Statements.
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Other Information
5. The Company's Board of Directors are responsible for the
other information. The other information comprises the
information included in the Company's Annual Report but
does not include the Standalone Financial Statements and
our auditors' report thereon.
6. Our opinion on the Standalone Financial Statements does
not cover the other information and we do not express any
form of assurance conclusion thereon.
7. In connection with our audit of the Standalone Financial
Statements, our responsibility is to read the other
information and, in doing so, to 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. 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.
8. 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
9. 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 State of Affairs, Loss
and Other Comprehensive Income, Changes in Equity
and Cash Flows of the Company in) conformity with the
Indian Accounting Standards prescribed under section
133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended 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 of the assets of the Company and for
preventing and detecting frauds and other irregularities;
selection of the appropriate accounting software for
ensuring compliance with applicable laws and regulations
including those related to retention of audit logs; 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.
10. In preparing the Standalone Financial Statements,
the 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 the Board of Directors either intends to liquidate
the Company or to cease operations, or has no realistic
alternative but to do so.
11. The Board of Directors is also responsible for overseeing
the Company's financial reporting process.
Auditor’s responsibilities for the audit of the
Standalone Financial Statements
12. 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 Financial Statements.
13. As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional
skepticism throughout the audit. We also:
13.1. 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.
13.2. 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) 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.
13.3. Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by the Management.
13.4. 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 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.
13.5. 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.
14. 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.
15. 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.
16. 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
17. We did not audit the financial information pertaining to the
Company's share of net loss in 9 (Nine) LLPs/partnership
firms aggregating to H 263 lakhs for the year ended 31
March 2026. The financial information pertaining to
these entities has been audited by other auditors, whose
reports have been furnished to us, and the Company's
share of profit/loss from the said entities included in the
20.7. In our opinion and according to information
and explanation given to us, the Company has
not declared or paid dividend during the year,
accordingly compliance with section 123 of the Act
by the Company is not applicable.
20.8. Based on our examination which included test checks,
the company has used an accounting software along
with access management tool viz. Privileged Access
Management (PAM) for maintaining its books of
accounts which has a feature of recording audit
trail (edit log) facility and the same was operational
throughout the year for all relevant transactions
recorded in the software.
Further, during the course of our audit, we did not come
across any instance where the audit trail feature, had
been tampered with.
accompanying standalone financial statements is solely
based on the reports of such other auditors. Our opinion
is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
18. 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 paragraphs 3 and 4 of the Order, to
the extent applicable.
19. As required by Section 143(3) of the Act, we report that:
19.1. 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.
19.2. In our opinion, proper books of accounts as required
by law have been kept by the Company so far as it
appears from our examination of those books .
19.3. The standalone balance sheet, the standalone
statement of profit and loss (including Other
Comprehensive Income), the Statement of Changes
in Equity and the Standalone Cash Flow Statement
dealt with by this Report are in agreement with the
books of account.
19.4. In our opinion, the aforesaid Standalone Financial
Statements comply with the Ind AS specified
under Section 133 of the Act read with the relevant
rules thereunder.
19.5. On the basis of the written representations received
from the directors as on 31 March 2026 taken
on record by the Board of Directors, none of the
directors is disqualified as on 31 March 2026 from
being appointed as a director in terms of Section
164(2) of the Act.
19.6. 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 B'.
19.7. 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 read with Schedule V.
20. 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:
20.1. The Company has disclosed the impact of pending
litigations as at 31 March 2026 on its financial position
in its Standalone Financial Statements - Refer Note
35(I) to the Standalone Financial Statements.
20.2. The Company did not have any long-term contracts
including derivative contracts for which there were
any material foreseeable losses- Refer Note 35(I)(e)
to the Standalone Financial Statements
20.3. There were no amounts which were required to be
transferred to the Investor Education and Protection
Fund by the Company.
20.4. The Management has represented, to best of
their knowledge and belief, that 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, 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.
20.5. The Management has represented, to best of their
knowledge and belief, that 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, 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.
20.6. Based on such audit procedures, that have been
considered reasonable and appropriate in the
circumstances, performed by us, nothing has come
to our notice that has caused us to believe that the
representation under para 20.4 and 20.5 contain any
material misstatement.
Additionally, the Company has preserved the audit trail in
accordance with statutory record retention requirements,
excluding audit trail logs at the database level for the
earlier period where the PAM logs are retained from
1st April 2024.
For KKC & Associates LLP
Chartered Accountants
(formerly Khimji Kunverji & Co LLP)
Firm Registration Number: 105146W/W100621
Bharat Jain
Partner
Place: Mumbai ICAI Membership No: 100583
Date: 12 May 2026 UDIN: 26100583KVNSNC9522
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