We have audited the accompanying standalone financial
statements of Macrotech Developers Limited ("the Company”),
which comprise the Balance Sheet as at March 31, 2025 and
the Statement of Profit and Loss, including Other Comprehensive
Income, Statement of Changes in Equity and Statement of Cash
Flows for the year then ended and notes to the standalone financial
statements, including material accounting policy information
and other explanatory information (hereinafter referred to as the
"standalone financial statements”).
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone financial
statements give the information required by the Companies Act,
2013 ("the Act') in the manner so required and give a true and
fair view in conformity with the Indian Accounting Standards
prescribed under section 133 of the Act read with 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 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 financial statements
in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Act. Our responsibilities under those
Standards are further described in the 'Auditor's Responsibilities
for the Audit of the Standalone Financial Statements' section of our
report. We are independent of the Company 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 obtained by us is sufficient and appropriate to provide a
basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the standalone
financial statements for the year ended March 31, 2025. These
matters were addressed in the context of our audit of the standalone
financial statements as a whole and in forming our opinion thereon
and we do not provide a separate opinion on these matters. We
have determined the matters described below to be the key audit
matters to be communicated in our report.
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Sr.
Key Audit Matters
No
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How the Key Audit Matters was addressed in our audit
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1 Revenue Recognition for Real Estate Projects
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Refer Note 1(II)(11) of standalone financial statements with
respect to the accounting policies followed by the Company for
recognizing revenue from sale of residential and commercial
properties. The Company applies Ind AS 115 "Revenue from
contracts with customers” for recognition of revenue from
sale of commercial and residential real estate, which is being
recognised at a point in time/ over the time depending upon
the Company satisfying its performance obligation under the
contract with the customer and the control of the underlying
asset gets transferred to the customer. Significant judgement/
estimation is involved in identifying performance obligations
for revenue recognition under point in time and over the time
methods. 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, has been considered as a key
audit matter
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Our audit procedures in respect of this area among others included:
• Read the Company's revenue recognition accounting policies
& evaluated the appropriateness of the same with respect to
principles of Ind AS 115 and their application to the significant
customer contracts;
• Obtained and understood the Company's process for revenue
recognition including identification of performance obligations and
determination of transfer of control of the property to the customer;
• Evaluated the design and implementation and verified, on a test
check basis, the operating effectiveness of key internal controls
over revenue recognition including controls around transfer of
control of the property and calculation of revenue recognition
which is based on various factors including contract price, total
budgeted cost and actual cost incurred;
• Obtained and read the legal opinion taken by the Company
and provided to us to determine timing when the control gets
transferred in accordance with the underlying agreements;
• Verified the sample of revenue contract for sale of residential
and commercial 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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Sr.
Key Audit Matters
No
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How the Key Audit Matters was addressed in our audit
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•
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Verified, on a test check basis, revenue transaction with the
underlying customer contract, Occupancy Certificates (OC) and
other documents evidencing the transfer of control of the asset to
the customer based on which the revenue is recognized;
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•
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Verified, on a test check basis, budgeted cost of certain
projects, actual cost incurred, balance cost to be incurred and
recomputed stage of project completion based on which the
revenue is recognized; and
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•
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Assessed the adequacy and appropriateness of the disclosures
made in standalone financial statements in compliance with
the requirements of Ind AS 115 - 'Revenue from contracts
with customers'.
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2 Inventory Valuation
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Refer Note 1(II)(5) to the standalone financial statements
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Our audit procedures in respect of this area, among others,
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which includes the accounting policies followed by the
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included the following:
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Company for valuation of inventory.
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•
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Obtained an understanding of the Management's process and
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The Company's properties under development and
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methodology of using key assumptions for determining the
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completed properties are stated at the lower of cost and Net
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valuation of inventory as at the year-end;
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Realizable Value (NRV).
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•
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Evaluated the design and implementation and verified, on a test
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As at March 31, 2025, the Company's properties under
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check basis, operating effectiveness of controls over preparation
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development and inventory of completed properties amounts
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and update of NRV workings and related to the Company's
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to H 2,89,668 million and Rs. 40,299 million respectively.
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review of key estimates, including estimated future selling prices
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Determination of the NRV involves estimates based on
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and costs of completion for property development projects;
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prevailing market conditions, current prices and expected
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•
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Assessed the appropriateness of the selling price estimated by
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date of commencement and completion of the project, the
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the management and verified the same on a test check basis, by
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estimated future selling price, cost to complete projects and
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comparing the estimated selling price to recent market prices in
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selling costs.
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the same projects or comparable properties;
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The cost of the inventory is calculated using actual land
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Compared the estimated construction cost to complete the
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acquisition costs, construction costs, development related
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project with the Company's updated budgets and
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costs and interest capitalized for eligible project.
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•
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Assessed the adequacy and appropriateness of the disclosures
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We have considered the valuation of inventory as a key
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made in the standalone financial statements with respect to
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audit matter on account of the significance of the balance
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Inventory in compliance with the requirements of applicable
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to the standalone financial statements and involvement of
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Indian Accounting Standards and applicable financial
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significant judgement in estimating future selling prices and
costs to complete project.
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reporting framework.
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Information Other than the Standalone Financial
Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other
information. The other information comprises the Director's report
& Management Discussion and Analysis but does not include the
standalone financial statements and our auditor's report thereon. The
Director's report & Management Discussion and Analysis 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 Director's report & Management Discussion and
Analysis, if we conclude that there is a material misstatement therein,
we are required to communicate the matter to those charged with
governance under SA 720 'The Auditor's responsibilities Relating to
Other Information'
Responsibilities of Management and Those Charged with
Governance for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters
stated in section 134(5) of the Act with respect to the preparation of
these standalone financial statements that give a true and fair view
of the financial position, financial performance, changes in equity
and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting
Standards specified under section 133 of the Act. This responsibility
also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the
assets of the Company and for preventing and detecting frauds
and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and
presentation of the standalone financial statement that give a true
and fair view and are free from material misstatement, whether due
to fraud or error.
In preparing the standalone! financial statements, 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 intends to
liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors are also responsible for overseeing the
Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone
Financial Statements
Our objectives are to obtain reasonable assurance about whether
the standalone financial statements as a whole are free from material
misstatement, whether due to fraud or error and to issue an auditor's
report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted
in accordance with SAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of
users taken on the basis of these standalone financial statements.
We give in "Annexure A” a detailed description of Auditor's
responsibilities for Audit of the Standalone Financial Statements.
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 "Annexure B” a statement on the matters specified in
paragraphs 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, the Statement
of Changes in Equity and the Statement of Cash Flow
dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial
statements comply with the Indian Accounting Standards
specified under Section 133 of the Act.
(e) On the basis of the written representations received from
the directors as on March 31, 2025 taken on record
by the Board of Directors, none of the directors are
disqualified as on March 31, 2025 from being appointed
as a director in terms of Section 164 (2) of the Act.
(f) With respect to the 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 C”.
(g) 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 standalone
financial statements - Refer Note 37(c) to the
standalone 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. 1) The Management has represented 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,
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.
2) The Management has represented, 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, as on the date of this audit
report, that the Company shall, 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.
3) Based on the audit procedures performed
that have been considered reasonable
and appropriate in the circumstances
and according to the information and
explanations provided to us by the
Management in this regard 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 (1) and (2) above, contain any
material mis-statement.
v. The final dividend paid by the Company during
the year in respect of the same declared for the
previous year is in accordance with section 123 of
the Companies Act 2013 to the extent it applies to
payment of dividend.
The Board of Directors of the Company have
proposed final dividend for the year which is
subject to the approval of the members at the
ensuing Annual General Meeting. The dividend
declared is in accordance with section 123 of
the Act to the extent it applies to declaration
of dividend. (Refer Note 61 to the Standalone
financial statements).
vi. Based on our examination, which included test
checks, the Company 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 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. Additionally, the
audit trail of prior year has been preserved by the
Company as per the statutory requirements for
record retention.
3. In our opinion, according to information, explanations given
to us, the remuneration paid by the Company to its directors is
within the limits laid prescribed under Section 197 read with
Schedule V of the Act and the rules thereunder.
For M S K A & Associates
Chartered Accountants
ICAI Firm Registration No. 105047W
Mayank Vijay Jain
Partner
Place: Mumbai Membership No. 512495
Date: April 24, 2025 UDIN: 255512495BMJBNP7542
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