We have audited the standalone financial statements of Atal Realtech Limited ("the Company"),
which comprise the standalone balance sheet as at 31 March 2025, and the standalone statement
of profit and loss (including other comprehensive income), standalone statement of changes in
equity and standalone statement of cash flows for the year ended on that date, and notes to the
standalone financial statements, including a summary of the significant accounting policies and
other explanatory information.
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, of the state of affairs of the Company as at 31
March 2025, and its 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 in accordance with the Standards on Auditing (SAs) specified under Section
143(10) of the Act. Our responsibilities under those SAs 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 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 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 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.
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The Key Audit Matter
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How the matter was addressed in our audit
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1. Accuracy of revenue recognition, measurement, presentation and disclosures as per Ind
AS 115 "Revenue from Contracts with Customers".
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Measurement of revenue recorded over time
which is dependent on the estimates of the
costs to complete
Revenue recognition involves significant
estimates related to measurement of costs to
complete for the projects. Revenue from
projects is recorded based on the Company's
assessment of the work completed, costs
incurred and accrued and the estimate of the
balance costs to complete.
Considering the significant estimate involved in
measurement of revenue, we have considered
measurement of revenue as a key audit matter.
Due to the inherent nature of the projects and
significant judgment involved in the estimate of
costs to complete, there is risk of overstatement
or understatement of revenue.
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Principle Audit Procedures
• Evaluating that the Company's revenue
recognition accounting policies are in line
with the applicable accounting standards;
• Obtaining and understanding revenue
recognition process including
identification of performance obligations
and determination of transfer of control
of the asset underlying the performance
obligation to the customer;
• Identifying and testing operating
effectiveness of key controls around
approvals of contracts, milestone billing,
intimation of possession letters /
intimation of receipt of occupation
certificate and controls over collection
from customers;
• Identifying and testing operating
effectiveness of key controls over
recording of project costs;
• Comparing the costs to complete
workings with the budgeted costs and
inquiring for variance;
• Comparison of the estimated costs with
the costing details as mentioned for
registration of the projects with the Maha
RERA website.
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2. Valuation of Inventories - Assessing the net realisable value
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Inventory represents the capitalized project costs
to date less amounts expensed on sales by
reference to the aforementioned projections. It is
held at the lower of cost and net realisable value
(NRV), the latter also being based on the forecast
for the project. As such inappropriate assumptions
in these forecasts can impact the assessment of
the carrying value of inventories.
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Principle Audit Procedures
• Discussion with the management to
understand the basis of calculation and
justification for the estimated recoverable
amounts of the unsold units ("the NRV
assessment");
• Evaluating the design and implementation
of the Company's internal controls over the
NRV assessment. Our evaluation included
assessing whether the NRV assessment was
prepared and updated by appropriate
personnel of the Company and whether the
key estimates, including estimated future
selling prices and costs of completion for all
property development projects, used in the
NRV assessment, were discussed and
challenged by management as appropriate;
• Evaluating the management's valuation
methodology and assessing the key
estimates, data inputs and assumptions
adopted in the valuations, which included
comparing expected future average selling
prices with available market data such as
recently transacted prices for similar
properties located in the nearby vicinity of
each property development project and the
sales budget plans maintained by the
Company;
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3. Tax Assessments
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Review, effect and presentation of completed tax
assessments
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Principle Audit Procedures
• Verification of details of completed tax
assessments and demands as at 31 March
2025, followed by verification of tax
refunds on completed tax assessments and
treatment of the same in books of account
and financial statements.
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Other Information
The Company's Management and Board of Directors are responsible for the other information. The
other information comprises the information included in the Company's 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 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, 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 Responsibility 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 state of affairs, profit/loss and other comprehensive income,
changes in equity and cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Indian Accounting Standards (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 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 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 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
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 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 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 and Board of
Directors.
• 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 auditors' report. However, future
events or conditions may cause the Company 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.
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 (Auditors' 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, 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 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.
c) The standalone balance sheet, the standalone statement of profit and loss (including other
comprehensive income), the standalone statement of changes in equity and the
standalone statement of cash flows 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 as on 31 March
2025 taken on record by the Board of Directors, none of the directors is disqualified as on
31 March 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 financial
statements of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure B" to this report.
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 Auditor's) 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 31 March 2025
on its financial position in its 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 has been no delay 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 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 persons or entities, including foreign entities ("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 have been received by the Company from any persons or entities,
including foreign entities ("Funding Parties"), with the understanding, whether
recorded in writing or otherwise, that the Company shall, whether, directly or
indirectly, lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
and
(c) Based on such audit procedures as 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) of the Companies
(Audit and Auditor's) Rules, 2014 contain any material misstatement.
v. The Company has neither declared nor paid any dividend during the year.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rues, 2014 for maintaining
books of account using accounting software which has a feature of recording audit
trail (edit log) facility is applicable to the Company with effect from 1st April 2024
and accordingly, reporting under Rule 11(g) of The Companies (Audit and Auditors)
Rules, 2014 is applicable for the financial year ended 31st March 2025. The
accounting software used by the company has a feature of audit trail and it has
been maintained throughout the year.
h) With respect to the matter to be included in the Auditor's Report under Section 197(16) of
the Act:
In our opinion and according to the information and explanations given to us, the
remuneration paid by the Company to its directors during the current year is in accordance
with the provisions of Section 197 of the Act. The remuneration paid to any director is not
in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate
Affairs has not prescribed other details under Section 197(16) of the Act which are required
to be commented upon by us.
For A.S. Bedmutha & Co.
Chartered Accountants
Firm Registration No - 101067W
CA Smruti R. Dungarwal
Partner
Membership No.144801
UDIN: 25144801BMUKUS4488
Place: Nashik
Date: 15 May, 2025
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