We have audited the accompanying Standalone Financial Statements
of Forbes & Company Limited (hereinafter referred to as “the
Company”), which comprise the Balance sheet as at March 31,2026,
the Statement of Profit and Loss (including Other Comprehensive
Income), the Statement of Cash Flows and the Statement of Changes
in Equity for the year then ended and Notes to the Standalone
Financial Statements, including a summary of material accounting
policies and other explanatory information (hereinafter collectively
referred 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 (hereinafter referred as “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 the
Companies (Indian Accounting Standards) Rules, 2015 as amended
(hereinafter referred as “Ind AS”) and other accounting principles
generally accepted in India, of the state of affairs (financial position)
of the Company as at March 31,2026, its profit, other comprehensive
income, its cash flows and the changes in equity for the year ended
on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on
Auditing (hereinafter referred to as “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 (hereinafter
referred as “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 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.
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S. No.
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Key Audit Matter (KAM)
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How our audit addressed the Key Audit Matters
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1
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Revenue Recognition:
Revenue recognition for Real Estate Development
Activities (Refer Notes 24 and 48 to the standalone
financial statements)
Revenue recognition for real estate development
activities is considered a key audit matter in view
of the involvement of management judgment in
establishing the timing of the transfer of control
to the customer, the enforceable right to payment
for performance completed to date and related
disclosures.
In respect of real estate development projects,
Revenue is recognized upon transfer of control of
residential units to customers for an amount that
reflects the consideration the Company expects to
receive in exchange for those units. The point of
revenue recognition is normally based on the terms
as included in the intimation for the unit handover
to the customer on completion of the project, after
which the contract becomes non-cancellable by the
parties.
The Company records revenue at a point in time
upon transfer of control of residential units to
the customers as per requirements of Ind-AS 115
involves significant judgment by the Management.
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Our audit procedures over the recognition of revenue for Real Estate
Development activities included the following:
• Obtaining an understanding and evaluating the design and testing of
the effectiveness of key internal financial controls in respect of revenue
recognition for real estate development activities;
• Obtaining an understanding of the Company’s accounting policy
on revenue recognition for real estate development activities and
assessing compliance of the policy with principles enunciated under
Ind-AS 115;
• Obtaining a listing of contracts with customers from the Management;
• On a sample basis, evaluating completeness and accuracy of the list of
contracts mentioned above;
• Examining mathematical accuracy in respect of the amount recognized
as revenue in respect of these customer contracts;
• Examining the terms of sales agreements, agreement value and other
relevant details to validate revenue recognition during the year;
• Obtaining evidence regarding the transfer of control considering criteria
as per Ind-AS 115 and evaluating the enforceability of payment for work
completed to date for validating the timing of the transfer of control to
the customer; and
• Evaluated the adequacy and appropriateness of the disclosures made in
the standalone financial statements by the management with respect to
revenue from the Real Estate Development Activities.
Based on the above audit procedures performed, we did not come across any
significant exceptions with regard to revenue recognition in respect of real
estate development activities.
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2
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Assessment of Provisions and Contingent Liabilities
(Refer Notes 18A, 18B and 38 to the standalone
financial statements)
The Company undergoes assessment proceedings
and related litigations with direct and indirect tax
authorities and with certain other parties. There
is a high level of management judgment required
in estimating the probable outflow of economic
resources and the level of provisioning and/or the
disclosures required.
The judgment of the management is supported by
advice from independent tax and legal consultants,
as considered necessary by the management. Any
unexpected adverse outcomes could significantly
impact the Company’s reported profit and financial
position.
We considered this area as a key audit matter due to
the associated uncertainty of the ultimate outcome
and significant management judgment involved in
the assessment.
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Our audit procedures included the following:
• Understanding the status of the direct and indirect tax assessments/
litigations & disputes with other parties;
• Reading recent orders and/or communication received from the tax
authorities and with certain other parties and management responses to
such communication;
• Where relevant, read the most recent available independent tax/legal
advice obtained by management and evaluate the grounds presented
therein;
• Obtaining confirmations from the Company’s legal/ tax consultants
(internal) to confirm the status of the assessments as well as having
discussions with them as and when required;
• Assessing the adequacy of disclosure in the standalone financial
statements.
Based on the above procedures, we did not identify any material exceptions
relating to management’s assessment of provisions and contingent liabilities.
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Information other than the Standalone Financial Statements
and Auditor’s Report thereon (hereinafter referred as “other
information”)
The Company’s Management and Board of Directors are responsible
for the preparation of 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.
Our opinion on the standalone financial statements does not cover
the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the standalone financial statements,
our responsibility is to read the other information identified
above and, in doing so, consider whether the other information is
materially inconsistent with the standalone financial statements, or
our knowledge obtained during the course of our audit or otherwise
appears to be materially misstated.
If, based on work we have performed, we conclude that there is a
material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Management’s and Board of Directors’ Responsibilities for the
Standalone Financial Statements
The Company’s Management and Board of Directors are responsible
for the matters stated in Section 134(5) of the Act with respect to
the preparation of these Standalone Financial Statements that give
a true and fair view of the financial position, financial performance,
total comprehensive income, cash flows and changes in equity of the
Company in accordance with the accounting principles generally
accepted in India, including the Ind AS. This responsibility also
includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding 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, the Company’s
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 management either intends to
liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors are 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 due to 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:
a) 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.
b) Obtain an understanding of internal financial 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 an adequate internal financial controls system in
place and the operating effectiveness of such controls.
c) Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures
made by management.
d) 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.
e) 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 the 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
1. As required by the Companies (Auditor’s Report) Order, 2020
(“the Order”), issued by the Central Government in terms
of Section 143 (11) of the Act, we give in “Annexure A”, 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 and based on our audit
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 of the
standalone financial statements;
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 Flows
statement dealt with by this report are in agreement
with the books of account maintained for the purpose or
preparation of the standalone financial statements;
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 as on April 01, 2026 to April 02, 2026 taken
on record by the Board of Directors, none of the directors
is disqualified as on March 31,2026 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 the Standalone Financial
Statements 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 with reference to the Standalone
Financial Statements; and
g) With respect to the other matters to be included in the
auditor’s report in accordance with the requirements of
section 197(16) of the Act, as amended, we report that
in our opinion and to the best of our information and
according to the explanations given to us, the remuneration
paid by the Company to its directors during the year is in
accordance with the provisions of section 197(16) of the
Act. The Ministry of Corporate Affairs has not prescribed
other details under Section 197(16) which are required to
be commented upon by us;
h) With respect to the other matters to be included in the
Auditor’s Report in accordance with rule 11 of the
Companies (Audit and Auditors) Rules, 2014, in our
opinion and to the best of our information and according
to the explanations given to us:
i. The Company has disclosed the impact of pending
litigations as at March 31, 2026 on its financial
position in its Standalone Financial Statements -
Refer note 38 to the Standalone Financial Statements.
ii. The Company did not have any long-term contracts
including derivatives contracts for which there were
any material foreseeable losses;
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.
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; (Refer note 54(v));
(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; (Refer note 54(v));
(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;
(Refer note 54(v));
v. During the year Company has not declared/paid any
dividend hence reporting under rule 11 (f) is not
applicable to that extent.
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. Moreover, the feature of the recording
audit trail (edit log) facility is enabled at the database
level to log any direct data changes pertaining to the
accounting software used for maintaining books
of account. 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 has been preserved by the company as per the
statutory requirements for record retention.
Sharp &Tannan Associates
Chartered Accountants
Firm’s Registration No.: 109983W
by the hand of
Parthiv S Desai
Partner
Membership No.: (F) 042624
Mumbai, May 14, 2026 UDIN- 26042624LMEBBI5983
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