1. We have audited the accompanying standalone
financial statements of Awfis Space Solutions Limited
('the Company'), which comprise the Standalone
Balance Sheet as at 31 March 2026, the Standalone
Statement of Profit and Loss (including Other
Comprehensive Income), the Standalone Statement
of Cash Flow and the Standalone Statement of
Changes in Equity for the year then ended, and notes
to the standalone financial statements, including
material accounting policy information and other
explanatory information.
2. 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 ('Ind AS') specified under
section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015 and other
accounting principles generally accepted in India, of
the state of affairs of the Company as at 31 March
2026, and its profit (including other comprehensive
income), its cash flows and the changes in equity for
the year ended on that date.
Basis for Opinion
3. We conducted our audit in accordance with the
Standards on Auditing specified under section
143(10) of the Act. Our responsibilities under those
standards are further described in the Auditor's
Responsibilities for the Audit of the Standalone
Financial Statements section of our report. We are
independent of the Company in accordance with the
Code of Ethics issued by the Institute of Chartered
Accountants of India ('ICAI') together with the
ethical requirements that are relevant to our audit
of the standalone financial statements under the
provisions of the Act and the rules thereunder, and
we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code
of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a
basis for our opinion.
Key Audit Matters
4. 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.
5. We have determined the matters described below to be the key audit matters to be communicated in our report.
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Key audit matters
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How our audit addressed the key audit matters
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Revenue recognition from Rental Income and Income
from construction and fit-out projects
Refer note 4A to the standalone financial statements for
material accounting policy information and note 22 for
details of revenue recognized and related disclosures.
Revenue from leased out co-working space (Rental
Income) is recognised on a straight-line basis over
the non-cancellable period in case of operating leases
and is recognised over the lease term, based on a
pattern reflecting a constant periodic rate of return
on the lessor's net investment in the lease in case of
finance leases, in accordance with the principles of Ind
AS 116, Leases ('Ind AS 116'). Significant management
judgement is required in assessing whether the lease
arrangement is an operating lease or a finance lease
and in estimation of 'lease term' to allocate the lease
income on a systematic basis over the period of lease.
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Our audit procedures on revenue recognition
included, but were not limited to the following:
a) Evaluated the appropriateness of accounting
policy for revenue recognition of rental income
in accordance with Ind AS 116 and revenue
recognition from construction and fit-out projects
in accordance with Ind AS 115;
b) Obtained an understanding of the systems,
processes and controls implemented by the
management for computing and recording revenue
and related contract assets and contract liabilities;
c) Evaluated the design and implementation, and
tested the operating effectiveness of controls over
the revenue recognition;
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Key audit matters
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How our audit addressed the key audit matters
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Revenue from construction and fit-out projects is
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d)
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For a sample of lease contracts:
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recognised over a period of time using output method
of measuring progress towards complete satisfaction
of performance obligation in accordance with the
principles of Ind AS 115, Revenue from contracts with
customers. Significant management judgement is
required in identification of performance obligations,
determination of the Company's rights to receive
payments for performance completed till date,
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- Evaluated management's classification of
leases into operating lease and finance lease,
based on our review of the contractual terms of
the lease arrangements;
- Ensured the lease term determined by the
management is in accordance with the
principles of Ind AS 116;
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determination of progress of the performance
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- Recomputed the lease income recognised on
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obligations as per contract and impact due to contract
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a straight-line basis over the lease term and
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modifications, if any. Changes in these judgements and
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related lease equalization reserve, in case of
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the related estimates as contracts progress can result in
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operating leases;
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material adjustments to revenue and margins.
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- Assessed appropriateness of the models used
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Considering the materiality of amounts and significance
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by the management to recognise finance
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of management judgement in estimates involved,
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income on a systematic and rational basis over
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revenue recognition from rental income and income
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the lease term, reflecting a constant periodic
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from construction and fit-out projects is identified as a
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rate of return on the lessor's net investment in
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key audit matter for the current year audit.
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the lease, in case of finance leases;
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- Tested the mathematical accuracy of
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management workings.
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e)
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Evaluated the appropriateness of the
management's assessment that the satisfaction
of performance obligations relating to construction
and fit-out projects is over time in accordance with
Ind AS 115;
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f)
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Understood the process for determining the progress
of performance obligations which has been reviewed
periodically by independent experts based on
surveys of the construction and fit-out projects and
approved by appropriate levels of management;
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g)
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Assessed the professional competence and
objectivity of the management's expert;
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h)
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Tested on a sample basis and recomputed revenue
recognised during the year with respect to ongoing
and completed construction and fit-out projects, by
inspecting underlying contracts, work completion
certificates supporting the progress of satisfaction
determined by the management's expert for
ongoing projects and handover documents for
completed projects;
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i)
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Performed substantive analytical procedures on
revenue which included centre and project-wise
analysis, occupancy analysis, margin analysis,
customer analysis, etc. to determine any unusual
variances;
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j)
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Performed other substantive audit procedures
including obtaining debtor confirmations on a
sample basis and reconciling revenue recorded
during the year with statutory returns;
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k)
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Tested unusual non-standard journal entries
impacting revenue recorded during the year based
on risk-based criteria; and
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l)
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Ensured the adequacy and appropriateness of
the disclosures made in the standalone financial
statements in accordance with the requirements of
applicable accounting standards.
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Key audit matters
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How our audit addressed the key audit matters
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Accounting for leases
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Our audit procedures on accounting for leases
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Refer note 4M to the standalone financial statements for
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included, but were not limited to the following:
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material accounting policy information and note 38 for
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a) Assessed the appropriateness of the Company's
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lease related disclosures.
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accounting policy for leases in accordance with the
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As at 31 March 2026, the carrying value of right-of-use
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requirements of Ind AS 116;
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assets and lease liabilities amounts to ?10,629.31 million
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b) Obtained an understanding of the management's
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and J 14,502.69 million representing 37% and 50% of
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process for identification and accounting of
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total assets, respectively.
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leasing arrangements as per Ind AS 116. Evaluated
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The Company applies Ind AS 116, Leases to account
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the design and implementation, and tested the
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for lease contracts which requires the Company to
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operating effectiveness of management's controls
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recognise 'lease liabilities' representing the obligation
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relating to identification and accounting of lease
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with respect to unpaid lease payments under such
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contracts;
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contracts, and 'right-of-use assets' representing the
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c) Obtained and examined, on a sample basis, the
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right to use the underlying assets for the lease term.
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lease agreements that were new or modified
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Significant management judgement is required in
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during the current financial year to verify that the
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determining whether a contract contains a lease,
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particulars considered for calculation of right-of-
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assessment of lease term and determination of
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use assets and lease liabilities as at the reporting
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appropriate discount rate. The Company has multiple
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date were consistent with the corresponding terms
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lease contracts with varying terms which requires
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of such contracts. Further, for such new or modified
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significant effort to ensure compliance with the
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contracts, evaluated whether management's
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accounting standard requirements.
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determination of the lease term is accurate,
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Considering the materiality of amount involved and
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including assessment of appropriateness of
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large volume of individual lease agreements that
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management's estimation relating to the probability
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require significant management and auditor judgement
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of management exercising lease renewal options
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and efforts, accounting for leases is identified as a key
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given under such contracts, basis our discussion
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audit matter for current year audit.
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with the management and understanding of the
business plans;
d) Assessed the appropriateness of the discount rate
used for determining the present value of unpaid
lease payments for calculating the lease liabilities
at initial recognition;
e) Assessed the integrity and appropriateness of the
model used by the management to account for
leases as per Ind AS 116, including its mathematical
accuracy. On a sample basis, recalculated the
amount of lease liability, right-of-use assets,
depreciation and interest expense recorded by the
Company for the current financial year; and
f) Ensured the adequacy and appropriateness of
disclosures made in the standalone financial
statements in accordance with the requirements of
applicable accounting standards.
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Information other than the Standalone
Financial Statements and Auditor's Report
thereon
6. The Company's Board of Directors are 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.
When we read the Annual Report, if we conclude
that there is a material misstatement therein, we
are required to communicate the matter to those
charged with governance.
Responsibilities of Management and
Those Charged with Governance for the
Standalone Financial Statements
7. The accompanying standalone financial statements
have been approved by the Company's Board
of Directors. The Company's Board of Directors
are responsible for the matters stated in section
134(5) of the Act with respect to the preparation
and presentation of these standalone financial
statements that give a true and fair view of the
financial position, financial performance including
other comprehensive income, changes in equity
and cash flows of the Company in accordance
with the Ind AS specified under section 133 of the
Act 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 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.
8. In preparing the standalone financial statements,
the Board of Directors 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 the Board of Directors
either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
9. The Board of Directors is also responsible
for overseeing the Company's financial
reporting process.
Auditor's Responsibilities for the Audit of the
Standalone Financial Statements
10. 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 Standards on Auditing 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.
11. As part of an audit in accordance with Standards
on Auditing, specified under section 143(10) of
the Act 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
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 management;
• Conclude on the appropriateness of Board of
Directors' 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.
12. 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.
13. 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.
14. 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
15. As required by section 197(16) of the Act, based
on our audit, we report that the Company has
paid remuneration to its directors during the
year in accordance with the provisions of and
limits laid down under section 197 read with
Schedule V to the Act.
16. As required by the Companies (Auditor's Report)
Order, 2020 ('the Order') issued by the Central
Government of India in terms of section 143(11) 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.
17. Further to our comments in Annexure A, as required
by section 143(3) of the Act based 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 of the accompanying
standalone financial statements;
b) Except for the matters stated in paragraph
17(h)(vi) below on reporting under Rule 11(g) of
the Companies (Audit and Auditors) Rules, 2014
(as amended), 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 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 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, 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 qualification relating to the maintenance
of accounts and other matters connected
therewith are as stated in paragraph 17(b)
above on reporting under section 143(3)(b)
of the Act and paragraph 17(h) (vi) below on
reporting under Rule 11(g) of the Companies
(Audit and Auditors) Rules, 2014 (as amended).
g) With respect to the adequacy of the internal
financial controls with reference to financial
statements of the Company as on 31 March
2026 and the operating effectiveness of
such controls, refer to our separate report in
Annexure B wherein we have expressed an
unmodified opinion; and
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 33 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 were no amounts which were 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, as disclosed in note 47(v) to
the standalone financial statements,
no funds have been advanced or
loaned or invested (either from
borrowed funds or securities premium
or any other sources or kind of
funds) by the Company to or in any
person(s) or entity(ies), including
foreign entities ('the 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 ('the
Ultimate Beneficiaries') or provide
any guarantee, security or the like on
behalf the Ultimate Beneficiaries;
b. The management has represented
that, to the best of its knowledge and
belief, as disclosed in note 47(v) to
the standalone financial statements,
no funds have been received by the
Company from any persons or entities,
including foreign entities ('the 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
performed as considered reasonable
and appropriate in the circumstances,
nothing has come to our notice that
has caused us to believe that the
management representations under
sub-clauses (a) and (b) above
contain any material misstatement.
v. The Company has not declared or
paid any dividend during the year
ended 31 March 2026.
vi. As stated in Note 45 to the standalone
financial statements and based on our
examination which included test checks,
except for instance mentioned below,
the Company, in respect of financial year
commencing on 1 April 2025, 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 have been operated throughout
the year for all relevant transactions
recorded in the software. Further, during
the course of our audit we did not come
across any instance of audit trail feature
being tampered with other than the
For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
Nitin Toshniwal
Partner
Place: New Delhi Membership No.: 507568
Date: 25 May 2026 UDIN: 26507568IAPDKR9032
consequential impact of the exception given below. Furthermore, except for the instance mentioned
below, the audit trail has been preserved by the Company as per the statutory requirements for
record retention:
Nature of exception noted Details of exception
Instances of accounting software The accounting software used for maintenance of
maintained by a third party where we accounting records is operated by a third-party software
are unable to comment on the audit trail service provider. In the absence of any information on
feature at database level existence of audit trail (edit logs) for any direct changes
made at the database level in the 'Independent Service
Auditor's Assurance Report on the Description of Controls,
their Design and Operating Effectiveness' ('Type 2 report'
issued in accordance with SAE 3402, Assurance Reports
on Controls at a Service Organization), we are unable to
comment on whether audit trail feature with respect to the
database of the said software was enabled and operated
throughout the year.
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