1. We have audited the accompanying standalone financial
statements of Signatureglobal (India) Limited ('the
Company'), which comprise the Standalone Balance
Sheet as at 31 March 2026, the Standalone Statement
of Profit and Loss (including Other Comprehensive
Income), the Standalone Statement of Cash Flow and
the Standalone Statement of Changes in Equity 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 Indian Accounting Standards (' Ind
AS’) specified under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015
and other accounting principles generally accepted in
India, of the state of affairs of the Company as at 31
March 2026, and its profit (including other comprehensive
income), its cash flows and the changes in equity for the
year ended on that date.
BASIS FOR OPINION
3. We conducted our audit in accordance with the
Standards on Auditing 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 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.
KEY AUDIT MATTERS
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
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.
5. We have determined the matters described below to
be the key audit matters to be communicated in our
report.
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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 on sale of real estate properties
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The Company applies Ind AS 115, Revenue from Contracts
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Our audit procedures on revenue recognised from sale of real
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with Customers (Ind AS 115) for recognition of revenue from
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estate properties included, but were not limited to the following:
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sale of real estate properties. Refer note 3(p) and 41 to the
standalone financial statements for accounting policy and
related disclosures.
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• Evaluated the appropriateness of accounting policy for
revenue recognition on sale of real estate properties in
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terms of principles enunciated under Ind AS 115;
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Revenue is recognised upon transfer of control of the
constructed units to customers for an amount which reflects
the consideration the Company expects to receive in
exchange for those units. The point of revenue recognition is
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• Assessed the management evaluation of determining
revenue recognition from sale of units at a point in time in
accordance with the requirements under Ind AS 115;
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normally when the intimation for the handover of unit to the
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• Obtained and understood the revenue recognition
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customer is sent on completion of the project, builder buyer
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process, evaluated the design and tested operating
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agreement has been executed and substantial collection
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effectiveness of key controls over revenue recognition
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has been received.
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including determination of point of transfer of control and
completion of performance obligations on a sample basis;
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Key audit matter
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How our audit addressed the key audit matter
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Application of Ind AS 115 involves significant judgement in
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• Inspected, on a sample basis, underlying customer
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identifying performance obligations and determining when
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contracts and intimation of handover documents,
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‘control' of the units is transferred to the customer.
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evidencing the transfer of control of the residential units to
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Considering the significance of management judgements
and estimates involved and the materiality of amounts
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the customer based on which revenue is recognised at a
point in time;
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involved, aforementioned revenue recognition is identified
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• Visited sites during the year for selected projects to
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as a key audit matter
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understand the nature, status and progress of the projects;
• Selected projects on sample basis and tested various
reconciliations, i.e., unit reconciliation, area reconciliation
and sales value reconciliation as performed by the
management;
• Tested unusual non-standard journal entries impacting
revenue recorded during the year based on certain
risk-based criteria, and
• Assessed the adequacy of disclosures included in the
standalone financial statements in compliance with the
requirements of Ind AS 115.
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Revenue from construction contracts with related parties
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The Company recognises revenue from construction
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Our audit procedures in relation to revenue from construction
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contracts with related parties over a period of time in
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contracts with related parties included, but were not limited to
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accordance with Ind AS 115, Revenue from Contracts with
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the following:
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Customers (Ind AS 115). Refer note 3(p) and 41 to the
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• Evaluated the appropriateness of accounting policy on
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standalone financial statements for accounting policy and
related disclosures.
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revenue recognition for construction contracts with related
parties in terms of principles enunciated under Ind AS
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The Company acts as a principal contractor for providing
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115;
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construction services to its subsidiary companies and other
related parties.
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• Evaluated the design and tested operating effectiveness
of key controls around budgeting of project cost, approval
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The Company recognises revenue from construction
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of purchase orders, recording of actual cost, raising of
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contracts on the basis of stage of completion (input method)
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invoices and estimating the cost to complete the project;
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based on the proportion of contract costs incurred till
reporting date to the total estimated costs of the contract
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• Assessed management evaluation of determining
revenue recognition for contractual construction projects
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at completion. The recognition of revenue is therefore
dependent on estimates in relation to total estimated costs of
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over a period of time in accordance with the requirements
of Ind AS 115 and the process for determining probable
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each such contract, which is subject to inherent uncertainty
as it requires ascertainment of progress of the project, cost
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expected losses on contracts;
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incurred till date and balance cost to be incurred to complete
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• On a sample basis, tested cost incurred and accrued
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the project.
Significant judgments are also involved in determining
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to date by examining underlying invoices and other
supporting documents;
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when the underlying performance obligations are satisfied
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• Visited sites during the year for selected projects to
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and in determining whether any contract has become
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understand the nature, status and progress of the projects;
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onerous which required the Company to record expected
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• On a sample basis, reviewed management’s estimate
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losses in respect of such contracts. Cost contingencies
are included in these estimates to take into account
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of costs to complete projects determined basis internal
budgeting process of the Company, and critically
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specific risks of uncertainties, arising within each contract.
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challenged estimates basis our understanding of the
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These contingencies are reviewed by the Management on a
regular basis throughout the life of the contract and adjusted
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projects and historical accuracy of such estimates;
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where appropriate.
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• Compared actual cost with budgeted cost to determine
percentage of completion of the project;
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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 significance of management judgements
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•
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Assessed the professional competence and objectivity of
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and estimates involved and the materiality of amounts
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the management's experts and reviewed management
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involved, revenue from construction contracts with related
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expert's report on arm's length analysis for related
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parties is identified as a key audit matter.
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party transactions by involving an auditor's expert and
comparing such contracts with market available data;
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Tested unusual non-standard journal entries impacting
revenue recorded during the year based on risk-based
criteria; and
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•
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Assessed the adequacy of disclosures included in the
standalone financial statements in compliance with the
requirements of Ind AS 115.
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Recoverability of carrying value of Inventories and deposits paid under joint development arrangements (JDA)
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Refer note 3(n), 3(g), 3(m) and 3(z) to the standalone
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Our
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procedures in assessing the carrying value of the
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financial statements for accounting policies on inventories,
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inventories and deposits paid under joint development and
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advances paid towards land procurement and deposits paid
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collaboration agreements included, but were not limited to the
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against joint development and collaboration agreements
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following:
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and note 10, 15 and 16 for related financial disclosures.
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•
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Evaluated the appropriateness of accounting policies
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As at 31 March 2026, the carrying value of the inventory
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with respect to inventories and deposits paid under joint
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comprising of work in progress (including stock of units
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development and collaboration agreements in terms
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in completed projects) and stock at sites is ' 43,256.10
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of principles enunciated under applicable accounting
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million and deposits paid against joint development
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standards;
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and collaboration agreements is ' 387.25 million, which
represents a significant portion of the Company’s total
assets.
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•
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Evaluated the design and tested operating effectiveness
of key controls related to testing of NRV/ net recoverable
value vis-a-vis carrying amount of inventory and
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The inventories are carried at lower of cost and net
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deposits paid under joint development and collaboration
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realisable value ('NRV'). The determination of the NRV
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agreements;
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involves estimates based on prevailing market conditions
and taking into account the estimated future selling price,
cost to complete projects and selling costs.
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•
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Inquired with management to understand key assumptions
used in determination of the NRV/ net recoverable value;
and
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Deposits paid under joint development and collaboration
arrangements are in the nature of non-refundable and/or
refundable deposits, for acquiring the development rights.
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•
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Obtained and tested the computation of the NRV/ net
recoverable value on a sample basis.
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On the launch of the project, the non-refundable amount is
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For inventory balance:
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transferred as land cost to work-in-progress.
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•
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Obtained and assessed the Company’s methodology
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The aforesaid deposits are carried at the lower of the
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applied and assumptions used in assessing the net
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amount paid and net recoverable value, which is based on
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realizable value based on current market conditions and
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the management's assessment including the expected date
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having regard to expected launch of the project, project
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of commencement and completion of the project and the
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development plan and expected future sales less selling
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estimate of sale prices and construction costs of the project.
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costs;
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Compared the NRV to recent sales in the project or to the
estimated selling price;
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•
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Compared the estimated construction costs to complete
each project with the Company's updated budgets;
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Key audit matter
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How our audit addressed the key audit matter
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Due to the significance of the balance to the standalone
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• Where the management involved specialists to perform
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financial statements as a whole and the involvement of
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valuations, evaluated the objectivity and independence of
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estimates which require significant management judgement,
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those specialists and involved auditor's experts to review
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recoverability of carrying value of inventory and deposits
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the assumptions used by the management specialists;
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paid under joint development and collaboration agreements
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and
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is identified as a key audit matter.
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• For land stock, on a sample basis, obtained the fair
valuation reports and reviewed the valuation methodology,
key estimates and assumptions adopted in the valuation
by involving auditor's valuation experts.
For deposits paid under joint development and collaboration
agreements:
• Obtained an update on the status of the land acquisition/
project progress from the management and verified the
underlying documents for related developments to assess
Company's rights over the land parcels and evaluated
management's assessment of expected recoverability of
deposits paid under joint development and collaboration
agreements;
• Carried out external confirmation procedures on sample
basis and alternative procedures wherever confirmations
were not received to obtain evidence supporting the
carrying value of deposits paid under joint development
and collaboration agreements; and
• Assessed the adequacy of disclosures included in the
standalone financial statements in compliance with the
applicable accounting standards.
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Impairment assessment of investments, loans and other balances receivable from its subsidiaries and its joint
venture
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Refer note 3(k), 3(m) and 3(z) to the standalone financial
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Our procedures in relation to the impairment assessment
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statements for the accounting policies on the impairment
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of investments, loans and other balances receivable from
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assessment of the investments, loans and other balances
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subsidiaries and joint venture included, but not limited to the
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(including trade receivables, unbilled receivables and
security deposits) receivable from its subsidiaries and joint
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following:
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venture and note 37 for related financial disclosures.
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• Assessed the appropriateness of the relevant accounting
policies of the Company, including those relating to
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As at 31 March 2026, the carrying value of investments
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recognition and measurement of investments, loans
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in, loans extended to and other recoverable from the
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and other balances receivable by comparing with the
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subsidiaries and its joint venture aggregate to ' 3,086.08
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applicable accounting standards;
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million, ' 12,903.53 million and ' 5,410.29 million
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• Obtained an understanding of the management process
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respectively (net of impairment of ' 20.08 million, ' 34.08
million and ' 47.47 million on investments, loans and other
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for identification of possible impairment indicators and
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recoverables respectively).
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process performed by the management for impairment
testing in accordance with Ind AS 36 and Ind AS 109;
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Management reviews regularly whether there are any
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• Evaluated the design and tested operating effectiveness
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indicators of impairment as per the requirements under Ind
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of Company’s key controls in respect of identification of
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AS 36 “Impairment of Assets” (Ind AS 36) and Ind AS 109
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impairment indicators and consequential impairment tests
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“Financial Instruments” ('Ind AS 109').
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performed, wherever necessary;
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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 involved in determining
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• Assessed the valuation methods used, financial position
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impairment/recoverability of the carrying value, which
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of the subsidiaries and joint venture to identify excess of
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includes assessment of conditions and financial indicators
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their net assets over their carrying amount of investment
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of the investee such as assessing net worth of investee,
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by the Company and assessing profit history of those
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future business plans, upcoming projects and estimation
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subsidiaries and joint venture;
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of projected cash flow from the real estate projects in the
underlying entities.
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• Where the Company involved management's expert
to perform valuations, we also performed the following
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Considering the materiality of carrying value of investments,
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procedures:
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loans, and other receivables from subsidiaries in the
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• Obtained and read the valuation report used by
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context of the Company’s standalone financial statements
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the management for determining the fair value
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as a whole and significant degree of judgement and
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('recoverable amount');
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subjectivity involved in the estimates and key assumptions
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• Considered the competence and objectivity of the
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used in determining the cash flows used in the impairment
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management's expert involved in determination of
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evaluation, impairment assessment of investments, loans
and other balances receivable from subsidiaries and joint
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recoverable value; and
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venture is considered to be the area of most significance
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• Involved auditor's experts to review the key
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to the audit and accordingly, has been identified as a key
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assumptions used by the management's expert.
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audit matter.
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• Tested the assumptions and obtained understanding of
the forecasted cash flows of subsidiaries and joint venture
based on our knowledge of the Company and the markets
in which they operate and assessed the comparability
of the forecasts with historical information. Traced such
projections to approved business plans; and
• Assessed the adequacy of disclosures included in the
standalone financial statements in compliance with the
applicable accounting standards.
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INFORMATION OTHER THAN THE STANDALONE
FINANCIAL STATEMENTS AND AUDITOR'S
REPORT THEREON
6. The Company’s Board of Directors are 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 this auditor's report.
Our opinion on the standalone financial statements does
not cover the other information and we will 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 identified above when it becomes available
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.
RESPONSIBILITIES OF MANAGEMENT AND
THOSE CHARGED WITH GOVERNANCE FOR THE
STANDALONE FINANCIAL STATEMENTS
7. The accompanying standalone financial statements have
been approved by the Company's Board of Directors.
The Company's Board of Directors are responsible
for the matters stated in section 134(5) of the Act with
respect to the preparation and presentation of these
standalone financial statements that give a true and
fair view of the financial position, financial performance
including other comprehensive income, changes in
equity and cash flows of the Company in accordance
with the Ind AS specified under section 133 of the Act
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 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.
8. 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.
9. The Board of Directors is also responsible for overseeing
the Company’s financial reporting process.
AUDITOR'S RESPONSIBILITIES FOR THE AUDITOF THE STANDALONE FINANCIAL STATEMENTS
10. 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 Standards on Auditing 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.
11. As part of an audit in accordance with Standards
on Auditing, specified under section 143(10) of the
Act 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 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 Board of
Directors' 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; and
• 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.
12. 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.
13. 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.
14. 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 REGULATORYREQUIREMENTS
15. As required by section 197(16) of the Act, based on our
audit, we report that the Company has paid remuneration
to its directors during the year in accordance with the
provisions of and limits laid down under section 197 read
with Schedule V to the Act.
16. As required by the Companies (Auditor’s Report) Order,
2020 (‘the Order’) issued by the Central Government of
India in terms of section 143(11) 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.
17. Further to our comments in Annexure A, as required by
section 143(3) of the Act based on our audit, we report,
to the extent applicable, 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 purpose of our
audit of the accompanying standalone financial
statements;
b) Except for the matters stated in paragraph 17(h)
(vi) below on reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014 (as
amended), 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 standalone financial statements dealt with
by this report are in agreement with the books of
account;
d) In our opinion, the aforesaid standalone financial
statements comply with Ind AS specified under
section 133 of the Act;
e) On the basis of the written representations received
from the directors and 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;
f) The modification relating to the maintenance of
accounts and other matters connected therewith
are as stated in paragraph 17(b) above on reporting
under section 143(3)(b) of the Act and paragraph
17(h)(vi) below on reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014 (as
amended);
g) With respect to the adequacy of the internal financial
controls with reference to financial statements of the
Company as on 31 March 2026 and the operating
effectiveness of such controls, refer to our separate
report in Annexure B wherein we have expressed
an unmodified opinion; and
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, as detailed in note 36 to the
standalone financial statements, has disclosed
the impact of pending litigations on its financial
position as at 31 March 2026;
ii. The Company did not have any long-term
contracts including derivative contracts for
which there were any material foreseeable
losses as at 31 March 2026;
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 31 March 2026;
iv. a. The management has represented that,
to the best of its knowledge and belief, as
disclosed in note 45C to the standalone
financial statements, no funds have
been advanced or loaned or invested
(either from borrowed funds or securities
premium or any other sources or kind of
funds) by the Company to or in any person
or entity, including foreign entities ('the
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 (‘the Ultimate Beneficiaries’) or
provide any guarantee, security or the
like on behalf the Ultimate Beneficiaries;
b. The management has represented that,
to the best of its knowledge and belief,
other than as disclosed in note 45D to the
standalone financial statements, no funds
have been received by the Company from
any person or entity, including foreign
entities ('the 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; and
c. Based on such audit procedures performed as considered reasonable and appropriate in the circumstances,
nothing has come to our notice that has caused us to believe that the management representations under
sub-clauses (a) and (b) above contain any material misstatement.
v. The Company has not declared or paid any dividend during the year ended 31 March 2026; and
vi. As stated in note 44 to the standalone financial statements and based on our examination which included test checks, the
Company, in respect of financial year commencing on 1 April 2025, has used an accounting software for maintaining its
books of account which has a feature of recording audit trail (edit log) facility and the same has been operated throughout
the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come
across any instance of audit trail feature being tampered with, other than the consequential impact of the exceptions given
below. Furthermore, except for the instances mentioned below, the audit trail has been preserved by the Company as per
the statutory requirements for record retention from the date the audit trail was enabled for the software.
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Nature of exception noted
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Details of exception
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Instances of accounting software
maintained by a third party where we
are unable to comment on the audit
trail feature at database level
|
The accounting software used for maintaining accounting records of the Company
are operated by third party software service provider. The Independent Service
Auditor's Assurance Report on the Description of Controls, their Design and
Operating Effectiveness’ (‘Type 2 report’) issued in accordance with ISAE 3402,
Assurance Reports on Controls at a Service Organization) was available for part
of the year. In the absence of any information on existence of audit trail (edit logs)
for any direct changes made at the database level in the Type 2 report, we are
unable to comment on whether the audit trail feature with respect to the database
level of the said software was enabled and operated throughout the year.
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Instances of accounting software
for maintaining books of account
for which the feature of recording
audit trail (edit log) facility was not
operated for all relevant transactions
recorded in the software
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The audit trail logs in the accounting software used for maintenance of the
customer and channel partners master are retained only for six months for any
direct data changes made at the database level throughout the year, by the
Company.
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Instances of non-preservation of the
audit trail
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The audit trail logs in the accounting software used for maintenance of the
customer and channel partners master are not preserved as per the statutory
requirements for record retention for any direct data changes made at the
database level.
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