We have audited the accompanying standalone financial
statements of Imagicaaworld Entertainment Limited ("the
Company"), which comprises of Standalone Balance Sheet
as at March 31, 2026, the Standalone Statement of Profit
and Loss (including Other Comprehensive Income), the
Standalone Cash Flow Statement 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 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, 2026,
its profit, total 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 (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 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 obtained by us is
sufficient and appropriate to provide a basis for our audit
opinion on the Standalone Financial Statements.
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 year. These
matters were addressed in the context of our audit of the
Standalone Financial Statements as a whole and in forming
our opinion thereon, and we do not provide a separate
opinion on these matters.
We have determined the matters described below to be the
key audit matters to be communicated in our report. We
have fulfilled the responsibilities described in the Auditor's
responsibilities for the audit of the Standalone Financial
Statements section of our report, including in relation to
these matters.
Accordingly, our audit included the performance of
procedures designed to respond to our assessment of the
risks of material misstatement of the Standalone Financial
Statements. The results of our audit procedures, including
the procedures performed to address the matters below,
provide the basis for our audit opinion on the accompanying
Standalone Financial Statements.
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Sr.
No.
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Key Audit Matters
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Auditors Response
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1.
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Recognition of Deferred Tax Asset.
Refer to accounting policy information in Note 2.5 to the Standalone Financial Statements and Note 36 to the
Standalone Financial Statements.
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As detailed in Note 36 to the Standalone Financial
Statements, the Company had recognized deferred tax
asset (DTA) of R 18,000.66 as on March 31, 2026 in the
Standalone Financial Statements.
The Company assesses its ability to recover the DTA at
the end of each reporting period which is based on an
assessment of the probability that future taxable income
will be available against which the carried forward unused
tax losses can be utilised.
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In view of the significance of the matter, we applied
the following audit procedures in this area to obtain
sufficient appropriate audit evidence.
Test of Controls:
We obtained an understanding of management's
process and tested the design, implementation, and
operating effectiveness of management review controls
over the key inputs and assumptions used to produce
future projections of taxable profits.
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There is inherent uncertainty involved in forecasting
future taxable profits, which determines the extent to
which deferred tax assets are, or are not, recognised.
There is judgement involved in determining the extent to
which it is probable that future profits will arise to utilise
the net deferred tax asset.
Recognition of deferred tax asset involves the assessment
of its recoverability within the permissible time frame
requiring a significant estimate of the financial projections,
and availability of sufficient future taxable income. In effect
we have determined that the recognition of deferred tax
assets has a high degree of estimation uncertainty, with
a potential range of reasonable outcomes greater than
our materiality for the Standalone Financial Statements
as a whole. Considering the history of losses, complexity,
and judgment involved in the assessment of recovery of
deferred tax assets, the matter is considered to be a key
audit matter.
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Test of details:
• Obtained the business projections of future taxable
profits estimated by the management of the Company
and critically reviewed the key assumptions used
therein, including future growth rates and relevant
economic and industry estimates, based on their
understanding of the business and market factors.
• Checked arithmetical accuracy of the computation of
future taxable profits and calculation of deferred tax.
• Assessed the reasonableness of the period
of projections used in the deferred tax asset
recoverability assessment in accordance with the
time period allowed under the applicable tax laws
with respect to utilisation of the said tax losses against
future taxable profits.
• Verified the computation of Income, related tax, and
the impact of open litigations on the tax provision.
• Performed necessary procedures to verify the accuracy
of amounts disclosed in the financial statements,
and adequacy of disclosures made for compliance
with applicable Indian Accounting Standards and
accounting principles generally accepted in India.
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2.
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Revenue Recognition
Refer to accounting policy information in Note 2.4 to the Standalone Financial Statements and Note 26 to the
Standalone Financial Statements
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The revenue recognition policy followed by the Company
includes, ticket revenue being recognized at the time
when entry tickets are issued to visitors for entry into
the amusement park; hotel revenue comprising of
room rentals which are recognized when the rooms are
occupied and for banquet services when the services have
been provided as per the contracts with the customer and
sale of items such as, merchandise, that are recognized
when the control is transferred to the customers. There is
an inherent risk that revenue may be misstated because
of fraud, resulting from the pressure local management
may fail to achieve performance targets. Revenue is also
an important element of how the Company measures its
performance. The Company focuses on revenue as a key
performance measure, which could create an incentive
for revenue to be recognized before control has been
transferred.
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In view of the significance of the matter, principal audit
procedures followed by us in this area to obtain sufficient
appropriate audit evidence.
Test of Controls:
• Evaluated the design, tested the implementation
and operating effectiveness of key internal controls
including general IT controls and key IT application
controls over recognition of revenue.
Test of Details:
• Assessed whether the revenue recognition accounting
policies are in compliance with the accounting
standards.
• Performed substantive testing by selecting samples
of revenue transactions recorded during the year and
verifying the underlying documents.
• We carried out analytical procedures on revenue
recognised during the year to identify unusual
variances
• We tested manual journal entries posted to revenue
to identify unusual items.
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3,
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Impairment Assessment of Goodwill related to a Cash Generating Unit (CGU) viz park business acquired and
recoverability of investments in and loans given to a subsidiary - Malpani Parks Indore private limited (MPIPL)
Refer to accounting policy information in Note 2.8 to the Standalone Financial Statements and Notes 4,5 and 6 to the
Standalone Financial Statements.
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The carrying amounts of Goodwill of ^ 4,125.45 Lakhs
arising from past acquisition of park business as at March
31, 2026,
The excess of the fair value consideration over the total
identified net assets has been recognized as Goodwill in
accordance with Ind AS 103.
The Company has Investment in a subsidiary company
- MPIPL with a carrying value of R 5,500,83 Lakhs as at
March 31, 2026. Further, the Company has also provided
loans to this subsidiary with a carrying value of ^ 10,045,10
Lakhs. This subsidiary has been incurring losses.
Judgment is required in estimating the recoverable amount
of the CGU. The estimation of recoverable amount involves
making assumptions regarding the future performance
of the CGU, market and economic conditions. Inherent
uncertainty is also involved in preparing forecasts,
discounted future cash flow projections, terminal value
growth rates and in determining an appropriate discount
rate. The significance of the amounts involved, the
judgement required and the uncertainties inherent in
estimating the recoverable amount makes this a key audit
matter.
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In view of the significance of the matter, we applied
the following audit procedures in this area to obtain
sufficient appropriate audit evidence.
Test of Controls:
• Evaluated the design and tested the operating
effectiveness of the internal controls relating to
impairment assessment of underlying CGUs.
Test of Details:
• Evaluated the reasonableness of the Management's
estimates and judgements in corroboration with
management enquiry, underlying evidence and past
trends,
• Evaluated the reasonableness of the valuation
methodology and key assumptions used in the
assessment,
• Tested mathematical accuracy and performed
sensitivity analysis of the valuation models.
• Evaluated the adequacy of disclosures made in the
financial statements.
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Information Other than the Standalone Financial Statements and Auditors' report thereon
The Company's Management and Board of Directors are responsible for the other information. The other information
comprises the information included in the Annual Report including annexures to the Annual report but does not include the
Standalone Financial Statement and our auditors' 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 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 the work we have performed, we conclude that
there is a material misstatement of this other information,
we are required to report that fact. We have nothing to
report in this regard,
Responsibilities of Management and those charged with
Governance 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 (including other
comprehensive income), cash flows and changes in equity of
the Company in accordance with the accounting principles
generally accepted in India, including the Accounting
Standards (Ind AS) specified under Section 133 of the Act
read with the Companies (Indian Accounting Standards)
Rules, 2015, as amended and other accounting principles
generally accepted in India.
This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of
the Act for safeguarding 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
Management and the 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 Management and 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 is also responsible for overseeing the
Company's financial reporting process.
Auditors' 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 auditors' 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 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 the Standalone
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 the 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 entity to cease to
continue as a going concern.
• 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 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
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 to 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 their 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 to 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 representation under Sub Clause (i) and
(ii) of Rule 11(e) of The Companies (Audit
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 auditors'
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. Pursuant to 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, and on the basis of
such checks of the books and records of the Company
as we considered appropriate and according to the
information and explanations given to us, we give in the
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, 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,
except for the matters stated in the paragraph 2(h)
(vi) below on reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014.
(c) The standalone Balance sheet, the standalone
Statement of profit & Loss including other
comprehensive income, the standalone Cash Flow
Statement and Statement of Changes in Equity
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 Accounting Standards
specified under Section 133 of the Act, read with
Companies (Indian Accounting Standards) Rules,
2015, as amended,
(e) On the basis of the written representations received
from the directors as on March 31, 2026 taken
on record by the Board of Directors, none of the
directors are disqualified as on March 31, 2026 from
being appointed as a Directors 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 paragraph 2(b) above on reporting
under Section 143(3) of the Act and paragraph 2(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 with reference to 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 Standalone Financial
Statements.
(h) 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, in our opinion and to the best of our
information and explanations given to us, no
remuneration is paid by the Company to its directors
during the year. Hence the reporting on compliance
with the provisions of section 197 of the Act is not
applicable,
(i) 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 has disclosed the impact of
pending litigations on its financial position in its
Standalone Financial Statements. (Refer note
no 34 to 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 have been no delays in transferring
amounts required to be transferred to the
Investor Education and Protection Fund by the
Company.
iv. (a) The Management has represented, that to
the best of their knowledge and belief, no
funds (which are material either individually
or in the aggregate) have been advanced or
loaned or invested (either from borrowed
and Auditors) Rules, 2014, as provided under
(a) and (b) above, contains any material
misstatement, [Refer note no 51 (a) and 51 (b)
to the standalone financial statements.]
v. The Board of Directors of the Company has not
proposed, declared or paid dividend during the
year.
vi. The reporting under Rule 11(g) of the Companies
(Audit and Auditors) Rules, 2014 is as under:
Based on our examination which included test
checks, the Company has used accounting software
for maintaining its books of accounts which has a
feature of recording audit trail (edit log) facility
except in respect of a frontend software used to
record revenue of Parks Business wherein the
accounting software did not have the audit trail
feature enabled throughout the year. Further, the
audit trail facility has been operating throughout
the year for all relevant transactions recorded in the
software except that no audit trail enabled at the
database level for two accounting software to log
any direct data changes.
Further, for the periods where the audit trail (edit
log) facility was enabled and operated throughout
the year for the respective accounting software,
we did not come across any instance of audit trail
feature being tampered with and the audit trail has
been preserved by the Company as per statutory
requirement for record retention.
For Suresh Surana and Associates LLP
Chartered Accountants
Firm's Registration. No.: 121750W / W-100010
Santosh Mailer
Partner
Place: Mumbai Membership No.: 143824
Date: May 15, 2026 UDIN:26143824GPXFZY6758
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