We have audited the accompanying standalone financial
statements of Embassy Developments Limited (formerly
known as Equinox India Developments Limited and
earlier Indiabulls Real Estate Limited) (‘the Company’),
which comprise the balance sheet as at 31 March
2026, the statement of profit and loss (including other
comprehensive income), the statement of changes in
equity and the statement of cash flow for the year then
ended, and a summary of the material accounting policies
and other explanatory information (hereinafter referred to
as ‘the standalone financial statements’).
In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
standalone financial statements give the information
required by the Companies Act, 2013 (‘the Act’) in the
manner so required and give a true and fair view in
conformity with the accounting principles generally
accepted in India including Indian Accounting Standards
(‘Ind AS’) specified under section 133 of the Act, of the state
of affairs of the Company as at 31 March 2026, and its loss
and total comprehensive income, changes in equity and
its cash flows for the year ended on that date.
Basis for opinion
We conducted our audit in accordance with the Standards
on Auditing (“SA’s”) 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 made thereunder, and we have fulfilled
our other ethical responsibilities in accordance with these
requirements and the ICAI’s Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our 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 of the current period.
These matters were addressed in the context of our audit
of the standalone financial statements as a whole, and
in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our report.
|
Key audit matters
|
How our audit addressed the key audit matters
|
|
Revenue recognition
|
Our audit procedures related to the revenue recognition
|
|
Revenue recognition - The Company’s policies on revenue
|
included, but not limited to the following:
|
|
recognition is set out in Note 3.07 to the standalone financial
|
• Evaluated the appropriateness of the Company’s
|
|
statements.
|
revenue recognition policies with respect to the
|
|
As per the principles of Ind AS 115 “Revenue from Contracts
|
principles of Ind AS 115;
|
|
with Customers”, revenue from sale of residential properties
|
• Enquiring from the management and inspecting the
|
|
is recognized when the performance obligations are
|
internal controls related to revenue recognition for
|
|
essentially complete.
|
ensuring the completeness of the customer sales,
|
|
The performance obligations are considered to be complete
when control over the property has been transferred to the
|
issue of possession letters and the recording of
customer receipts;
|
|
buyer i.e. offer for possession of properties have been issued
|
• We have performed the following procedures for
|
|
to the customers.
|
revenue recognition:
|
|
The amount of revenue and cost thereon on contracts
|
a. Verification of the collection from customers for
|
|
with customers forms a substantial part of the standalone
|
the units sold from the statement of accounts on a
|
|
statement of profit and loss and management judgement is
also involved in the interpretation of these conditions.
|
sample basis to ensure receipt of the amount; and
|
|
Key audit matters
|
How our audit addressed the key audit matters
|
|
The above transaction required audit focus due to the
|
b. Performing cut-off procedures and other analytical
|
|
significant impact of the same on the accompanying
|
procedures like project wise variance analysis and
|
|
standalone financial statement of the Company. The matter
|
margin analysis to find any anomalies.
|
|
has been considered to be of most significance to the audit
|
• Ensured that the disclosure requirements of Ind AS 115
|
|
and accordingly, has been considered as a key audit matter
for the current year audit.
|
have been complied with.
|
|
Accuracy and completeness of disclosure of related
|
Our audit procedures in relation to the disclosure of related
|
|
party transactions and compliance with the provisions
|
party transactions included the following:
|
|
of Companies Act 2013 and SEBI (Listing Obligations and
|
• We obtained an understanding, evaluated the design
|
|
Disclosure Requirements Regulations, 2015, as amended
|
and tested operating effectiveness of the controls
|
|
(‘SEBI (LODR) 2015’)
|
related to capturing of related party transactions and
|
|
(Refer to note 49 of the notes forming part of the standalone
|
management’s process of ensuring all transactions
|
|
financial statements)
|
and balances with related parties have been disclosed
|
|
We identified the accuracy and completeness of disclosure
|
in the standalone financial statements.
|
|
of related party transactions as set out in respective notes
|
• We obtained an understanding of the Company’s
|
|
to the standalone financial statements as a key audit
|
policies and procedures in respect of evaluating arms-
|
|
matter due to:
|
length pricing and approval process by the audit
|
|
• the significance of transactions with related parties
|
committee and the board of directors.
|
|
during the year ended 31 March 2026.
|
• We agreed the amounts disclosed with underlying
|
|
• Related party transactions are subject to the
|
documentation and read relevant agreements,
|
|
compliance requirement under the Companies Act 2013
|
evaluation of arms-length by management, on a
|
|
and SEBI (LODR) 2015.
|
sample basis, as part of our evaluation of the disclosure.
• We assessed management evaluation of compliance
with the provisions of Section 177 and Section 188 of the
companies Act 2013 and SEBI (LODR) 2015.
• We evaluated the disclosures through reading of
statutory information, books and records and other
documents obtained during the course of our audit.
|
|
Assessing the carrying value of inventory
|
Our procedures in relation to the valuation of inventory
|
|
The accounting policies for Inventories are set out in Note
|
held by the Company included, but not limited to the
|
|
3.11 to the standalone financial statements.
|
followings:
|
|
Inventories of the company comprises of real estate
|
• Obtained an understanding of the management
|
|
properties (including land) and are disclosed under Note 14
|
process for identification of possible impairment
|
|
to the standalone financial statements.
|
indicators and process performed by the management
for impairment testing and the management process
|
|
Impairment assessment of inventory is considered as a
significant risk as there is a risk that recoverability of the
|
of determining the Net Realizable Value (NRV);
|
|
carrying value of the inventory could not be established,
|
• Enquired of the management and inspected the
|
|
and potential impairment charge might be required to
|
internal controls related to inventory valuation along
|
|
be recorded in the standalone financial statements.
|
with the process followed to recover/adjust these and
|
|
Management’s assessment of the recoverable amounts is a
|
assessed whether impairment is required;
|
|
judgmental process which requires the estimation of the net
|
• All material properties under development as at 31
|
|
realizable value, which takes into account the valuations of
|
March 2026 were discussed on case-to-case basis with
|
|
the properties held and cash flow projections of real estate
|
the management for their plan of recovery/adjustment;
|
|
properties under development.
|
• For real estate properties under development, obtained
|
|
Due to their materiality in the context of the standalone
|
and assessed the management evaluation of the
|
|
financial statements as a whole and significant degree of
|
NRV. We also assessed the management’s valuation
|
|
judgement and subjectivity involved in the estimates and
|
methodology applied in determining the recoverable
|
|
key assumptions used in determining the cash flows used in
|
amount and tested the underlying assumptions used
|
|
the impairment evaluation, this is considered to be the area
|
by the management in arriving at those projections;
|
|
which had the greatest effect on our overall audit strategy and
|
• We challenged the management on the underlying
|
|
allocation of resources in planning and completing our audit.
|
assumptions used for the cash flow projections,
considering evidence available to support these
assumptions and our understanding of the business;
|
|
Key audit matters
|
How our audit addressed the key audit matters
|
| |
• Where the management involved specialists to
perform valuations, evaluated the objectivity and
independence of those specialists;
• For land parcels, obtained and verified the valuation of
land parcels as per the government prescribed circle
rates, wherever necessary;
• Tested the arithmetical accuracy of the cash flow
projections; and
We assessed the appropriateness and adequacy of the
disclosures made by the management for the impairment
losses recognized in accordance with applicable
accounting standards.
|
|
Impairment assessment of investments and loans made to
|
Our procedures in relation to the impairment assessment
|
|
its subsidiaries
|
of investments and loans included, but not limited to the
|
|
The Company’s policies on the impairment assessment of
|
following:
|
|
the investments and loans are set out in Note 9(a) and Note
|
• Assessed the appropriateness of the Company’s
|
|
19 to the standalone financial statements.
|
accounting policy by comparing with applicable Ind AS;
|
|
The Company has investments amounting to H 92,822.36
|
• We obtained an understanding of the management
|
|
million (net of impairment) and has outstanding loans
|
process for identification of possible impairment
|
|
amounting to H 27,344.04 million (net of impairment) to its
|
indicators and process performed by the management
|
|
subsidiaries as at 31 March 2026 as disclosed under the Note
|
for impairment testing;
|
|
9(a) and Note 19 to the standalone financial statements.
|
• Enquired of the management and understood the
|
|
Impairment assessment of these investments and loans
|
internal controls related to completeness of the list of
|
|
is considered as a significant risk as there is a risk that
|
loans and investment along with the process followed
|
|
recoverability of the investments and loans could not
|
to recover/adjust these and assessed whether further
|
|
be established, and potential impairment charge might
|
provisioning is required;
|
|
be required to be recorded in the standalone financial
statements. The recoverability of these investments is
|
• Performed test of details:
|
|
inherently subjective due to reliance on either the net worth
|
a. For all significant additions made during the year,
|
|
of investee or valuations of the properties held or cash
|
underlying supporting documents were verified to
|
|
flow projections of real estate properties in these investee
|
ensure that the transaction has been accurately
|
|
companies.
|
recorded in the standalone financial statements;
|
|
However, due to their materiality in the context of the
|
b. For all significant investments and loans outstanding
|
|
Company’s standalone financial statements as a whole and
|
as at 31 March 2026, confirmations were circulated
|
|
significant degree of judgement and subjectivity involved
|
and received. Further, all the significant reconciling
|
|
in the estimates and key assumptions used in determining
|
items were tested;
|
|
the cash flows used in the impairment evaluation, this is
|
c. All material investments and significant loans
|
|
considered to be the area to be of most significance to the
|
as at 31 March 2026 were discussed on case-to-
|
|
audit and accordingly, has been considered as a key audit
|
case basis with the management for their plan of
|
|
matter for the current year audit.
|
recovery/adjustment;
d. Compared the carrying value of material
investments and significant loans to the net assets
of the underlying entity, to identify whether the net
assets, being an approximation of their minimum
recoverable amount, were in excess of their
carrying amount; and
e. Wherever the net assets were lower than the
recoverable amount, for material amounts:
i. We obtained and verified the management
certified cash flow projections of real
estate properties and tested the underlying
assumptions used by the management in
arriving at those projections;
|
|
Key audit matters
|
How our audit addressed the key audit matters
|
| |
ii. We examined the managements’ underlying
assumptions used for the cash flow projections,
considering evidence available to support these
assumptions and our understanding of the
business;
iii. We obtained and verified the valuation of land
parcels as per the government prescribed circle
rates; and
iv. We assessed the appropriateness and adequacy
of the disclosures made by the management for
the impairment losses recognized in accordance
with applicable accounting standards.
|
|
Impairment testing of goodwill
|
Our audit procedures with respect to this matter included,
|
|
The accounting policies for impairment of goodwill are set
|
but were not limited to, the following:
|
|
out in note 3.04 to the standalone financial statements.
|
• Obtained an understanding of the impairment process
|
|
The goodwill balance as of March 31, 2026 is of H 18,542.15
|
and tested the design, implementation and operating
|
|
millions pertain to business combination as disclosed in
|
effectiveness of internal controls over impairment
|
|
Note 50 to the standalone financial statements.
|
assessment process for goodwill and other intangible
assets with indefinite useful lives arising out of business
|
|
Carrying value of goodwill is material as at March 31, 2026
and inherent uncertainty is involved in forecasting and
|
reconstruction and acquisition transactions.
|
|
discounting future cash flows, determination of discount
|
• Assessed reasonableness of the future revenue
|
|
rates for computing the value in use and the assessment of
|
and margin projections, the historical accuracy of
|
|
its recoverability. This audit area is considered a key audit
|
the estimates and its ability to produce accurate
|
|
matter.
|
long-term forecasts.
|
|
The management of the Company has carried out an
|
• Evaluated the sensitivity in the valuation, resulting from
|
|
impairment assessment using the value-in-use (“ViU”)
|
changes to key assumptions applied and compared
|
|
calculations which is based on discounted cash flow
|
the assumptions to corroborating information
|
|
with exit multiple method. Determination of ViU involves
|
including industry reports and data from competitors
|
|
significant estimates, assumptions and judgements
|
and historic performance.
|
|
as regards reasonableness of assumptions involved in
|
• Compared the reasonableness of future operating
|
|
developing projections of entity’s financial performance,
|
cash flow forecasts with the business plan and budgets
|
|
exit multiples, and discount rates to be considered.
|
approved by the Board and tested the mathematical
accuracy of management’s calculations.
• Assessed the adequacy and appropriateness
of the disclosures made in the standalone
financial statements.
|
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 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.
If, based on the work we have performed on the other
information obtained prior to the date of this auditor’s
report, we conclude that there is a material misstatement
of this other information, we are required to report that fact.
Reporting under this section is not applicable as no other
information is obtained at the date of this auditor’s report.
Management’s responsibility for the standalone
financial statements
The accompanying standalone financial statements have
been approved by the Company’s Board of Directors. 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, total comprehensive income, changes in
equity and cash flows of the Company in accordance with
the accounting principles generally accepted in India,
including the Ind AS 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
statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the standalone financial statements,
management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the
going concern basis of accounting unless management
either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those 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.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement
of the standalone financial statements, whether due
to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or
the override of internal control;
• Obtain an understanding of internal 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
standalone financial statements system in place and
the operating effectiveness of such controls;
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management;
• Conclude on the appropriateness of management’s
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report
to the related disclosures in the standalone financial
statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions
may cause the Company to cease to continue as a
going concern; 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.
Materiality is the magnitude of misstatements in the
standalone financial statements that, individually or
in aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of the
standalone financial statements may be influenced.
We consider quantitative materiality and qualitative
factors in (i) planning the scope of our audit work and in
evaluating the results of our work; and (ii) to evaluate the
effect of any identified misstatements in the standalone
financial statements.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and
to communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the standalone financial
statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated
in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public
interest benefits of such communication.
Report on other legal and regulatory requirements
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.
As required by section 143(3) of the Act, bases 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;
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 except
for the matters stated in the paragraph h(vi) below
on reporting under Rule 11(g) of the Companies (Audit
and Auditors) Rules, 2014;
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 the 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 as on 01 April 2026, 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 modifications relating to the maintenance of
accounts and other matters connected therewith
are as stated in the paragraph (b) above on reporting
under Section 143(3)(b) of the Act and paragraph 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 and
the operating effectiveness of such controls, refer
to our separate report in ‘Annexure B’. Our report
expresses an unmodified opinion on the adequacy
and operating effectiveness of the Company’s
internal financial controls over financial reporting;
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 45 and Note
46 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 has been no delay in transferring amounts,
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, no
funds (which are material either individually
or in the aggregate) have been advanced
or loaned or invested (either from borrowed
funds or share premium or any other
sources or kind of funds) by the Company
to or in any other person or entity, including
foreign entity (“Intermediaries”), with the
understanding, whether recorded in writing
or otherwise, that the Intermediary shall,
whether, directly or indirectly lend or invest
in other persons or entities identified in
any manner whatsoever by or on behalf of
the Company (“Ultimate Beneficiaries”) or
provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that,
to the best of its knowledge and belief, no
funds (which are material either individually
or in the aggregate) have been received
by the Company from any person or entity,
including foreign entity (“Funding Parties”),
with the understanding, whether recorded
in writing or otherwise, that the Company
shall, whether, directly or indirectly, lend or
invest in other persons or entities identified
in any manner whatsoever by or on behalf of
the Funding Party (“Ultimate Beneficiaries”)
or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that
have been considered reasonable and
appropriate in the circumstances, nothing
has come to our notice that has caused
us to believe that the representations
under sub-clause (i) and (ii) of Rule 11(e), as
provided under (a) and (b) above, contain
any material misstatement.
v. The Company has not declared and paid any
dividend during the year ended 31 March 2026;
vi. As stated in Note 77 to the standalone financial
statements and based on our examination which
included test checks, the Company, in respect of
financial year ended on 31 March 2026, has used
accounting softwares for maintaining its books
of account which has a feature of recording
audit trail (edit log) facility at application level as
well as database level and the same has been
operated throughout the year for all relevant
transactions recorded in the softwares. However,
recording of audit trail (edit logs) can be disabled
using restricted privileged rights for direct data
changes at database level. 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
exception given above. Furthermore, the audit
trail has been preserved by the Company as per
the statutory requirements for record retention.
i) With respect to the matter to be included
in the Auditor’s Report in accordance with
the requirements of section 197(16) of the
Act, as amended:
In our opinion and according to the
information and explanations given to us,
the remuneration paid by the Company
to its directors during the year ended 31
March 2026 is in accordance with the
provisions of Section 197 of the Act except
for remuneration paid to one Director, and is
subject to the approval of the shareholders
in the ensuing meeting.
For Agarwal Prakash & Co.
Chartered Accountants
Firm’s registration number: 005975N
sd/-
Vikas Aggarwal
Partner
Place: Bengaluru Membership number: 097848
Date: 20 May 2026 UDIN: 26097848ICZHZY4266
|