We have audited the accompanying standalone financial statements
of Prestige Estates Projects Limited (“the Company”), which includes
30 partnership entities, which comprise the Balance sheet as at March
31,2026, the Statement of Profit and Loss, including the statement of
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.
In our opinion and to the best of our information and according to the
explanations given to us and based on the consideration of reports of
other auditors on separate financial statements and on the other financial
information of the partnership entities, the aforesaid standalone financial
statements give the information required by the Companies Act, 2013,
as amended (“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 March 31, 2026,
its profit including 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 of the standalone financial statements in
accordance with the Standards on Auditing (SAs), as 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 together with
the ethical requirements that are relevant to our audit of the 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 audit opinion on the standalone financial statements.
Emphasis of Matter
We draw attention to Note 50 to the accompanying financial statements
in connection with certain ongoing legal proceedings related to real
estate project and income tax search matters. Our opinion is not
modified in respect of this matter.
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 for the financial year ended March 31,2026. 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. For each matter below,
our description of how our audit addressed the matter is provided in
that context.
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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Key audit matters
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How our audit addressed the key audit matter
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Revenue recognition from Contract with Customers (as described in note 4.2, 35 and 56 of the standalone financial statements)
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In accordance with the requirements of Ind AS 115, Company's
revenue from sale of real estate inventory property (other than projects
executed through joint development arrangements described below),
is recognised at a point in time, which is upon the Company satisfying
its performance obligation and the customer obtaining control of the
promised asset.
For revenue contract forming part of joint development arrangements
(‘JDA') that are not jointly controlled operations, the revenue from
the development and transfer of constructed area/ revenue sharing
arrangement and the corresponding land/ development rights received
under JDA is measured at the fair value of the estimated construction
service rendered to the land owner. Such revenue is recognised over
a period of time in accordance with the requirements of Ind AS 115.
For contracts involving sale of real estate inventory property, the
Company receives the consideration in accordance with the terms of
the contract in proportion of the percentage of completion of such real
estate project and represents payments made by customers to secure
performance obligation of the Company under the contract enforceable
by customers. The assessment of such consideration received from
customers involves significant judgment in determining if the contracts
with customers involves any financing element.
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Our audit procedures included, among others, the following:
• We read the accounting policy for revenue recognition of the
Company and assessed compliance of the policy in terms of
principles enunciated under Ind AS 115.
• We, on a sample basis inspected the underlying customer contracts
and assessed the management evaluation of determining revenue
recognition from sale of real estate inventory property at a point in
time in accordance with the requirements under Ind AS 115.
• We understood and tested management process and controls
around transfer of control in case of sale of real estate inventory
property and further controls related to determination of fair value
of estimated construction service rendered to the landowner in
relation to projects executed through JDA.
• We, on a sample basis inspected the sale deed and handover
documents, evidencing the transfer of control of the property to
the customer based on which revenue is recognised at a point in
time.
• We on a sample basis inspected the underlying customer contracts
to determine, whether the contracts with customers involved any
financing element.
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Key audit matters
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How our audit addressed the key audit matter
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Ind AS 115 requires significant judgment in determining when ‘control'
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• We, on a sample basis obtained and examined the computation of
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of the property underlying the performance obligation is transferred to
the customer. Further, for projects executed through JDA, significant
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the fair value of the construction service under JDA.
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estimate is undertaken by management for determining the fair value
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• We, on a sample basis obtained the joint development agreements
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of the estimated construction service.
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entered into by the Company and compared the ratio of constructed
area/ revenue sharing arrangement between the Company and
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As the revenue recognition involves significant estimates and
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the landowner as mentioned in the agreement to the computation
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judgement, we regard this as a key audit matter.
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statement prepared by the management.
• We, on a sample basis tested the computation for recognition of
revenue over a period of time for revenue contracts forming part
of JDA and the Company's assessment of stage of completion of
projects and project cost estimates on test check basis.
• We assessed the disclosures made in accordance with the
requirements of Ind AS 115.
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Assessing the recoverability of carrying value of Property, plant and equipment (PPE), Capital work-in-progress (CWIP) and Investment
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property (as described in note 4.9, 4.10, 4.11,4.13, 7, 8 and 9 of the standalone financial statements)
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As at March 31,2026, the carrying value of PPE, CWIP and Investment
property is Rs. 4,464 million, Rs. Nil million and Rs. 25,028 million
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Our audit procedures included, among others, the following:
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respectively. The carrying value of PPE, CWIP and Investment property
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• We read and evaluated the accounting policies with respect to
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(collectively referred to as ‘Assets') is calculated using land costs,
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PPE, CWIP and Investment property.
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construction costs, interest costs and other related costs. The Company
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• We, on a sample basis evaluated management's identification of
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reviews on a periodical basis whether there are any indicators of
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CGU's and the methodology applied in assessing the carrying
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impairment of Assets, i.e., ensuring that Assets are carried at no more
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value of each CGU in compliance with the applicable accounting
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than their recoverable amount.
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standards.
• We, on a sample basis examined the management assessment in
determining whether any impairment indicators exist.
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We considered the assessment of carrying value of Assets as a key
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• We, on a sample basis assessed the Company's valuation
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audit matter due to significance of the balance and significant estimates
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methodology and assumptions based on current economic and
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and judgement involved in impairment assessment.
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market conditions, applied in determining the recoverable amount.
• We, on a sample basis compared the recoverable amount of the
Assets to the carrying value in books.
• We assessed the disclosures made in the standalone financial
statements in this regard.
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Assessing the recoverability of carrying value of Inventory (as described in note 4.14 and 16 of the standalone financial statements)
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As at March 31, 2026, the carrying value of inventory comprising
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Our audit procedures included, among others, the following:
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of Work in progress and Stock of units in completed projects is Rs.
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• We evaluated the design and operation of internal controls related
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86,177 million. The inventory is valued at the lower of the cost and
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to testing recoverable amounts with carrying amount of inventory,
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net recognized value (“NRV”). The determination of the NRV involves
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including evaluating management processes for estimating future
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estimates based on prevailing market conditions and taking into
account the estimated future selling price, cost to complete projects
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costs to complete projects.
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and selling costs.
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• We assessed the Company's methodology based on current
economic and market conditions, applied in assessing the carrying
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We identified the assessment of the carrying value of inventory as a key
audit matter due to the significance of the balance to the standalone
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value.
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financial statements as a whole and the involvement of estimates and
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• We, on a sample basis obtained and tested the computation
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judgement in the assessment.
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involved in assessment of carrying value including the NRV.
• We, on a sample basis made inquiries with management to
understand key assumptions used in determination of the NRV.
• We, on a sample basis compared the total projected budgeted cost
to the total budgeted sale value from the project.
• We, on a sample basis compared the NRV to recent sales in the
project or to the estimated selling price, applied in assessing the
NRV.
• We compared the NRV to the carrying value in books.
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Key audit matters
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How our audit addressed the key audit matter
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Assessing the recoverability of carrying value of Investments and loans and advances made by the Company in subsidiaries, joint ventures
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and associate (as described in note 4.16, 11, 12 and 21 of the standalone financial statements)
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As at March 31, 2026, the carrying values of Company's investment
in subsidiaries, joint ventures and associate amounted to Rs. 46,687
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Our audit procedures included, among others, the following:
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million. Further, the Company has granted loans and advances to its
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• We read and evaluated the accounting policies with respect to
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subsidiaries, joint ventures and associate amounting to Rs. 112,702
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investments and loans and advances.
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million as at March 31,2026.
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• We, on sample basis examined the management assessment in
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Management reviews regularly whether there are any indicators of
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determining whether any impairment indicators exist.
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impairment of the investments and loans and advances by reference to
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• We, on sample basis assessed the Company's methodology applied
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the requirements under Ind AS.
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in assessing the carrying value under the relevant accounting
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For cases where impairment indicators exist, management estimated
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standards.
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the recoverable amounts of the investments, being higher of fair value
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• We, on sample basis assessed the Company's valuation
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less costs of disposal and value in use. Significant judgements are
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methodology and assumptions based on current economic
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required to determine the key assumptions used in determination of
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and market conditions, applied in determining the recoverable/
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fair value/ value in use.
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realisable amount.
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We focused our effort on those cases with impairment indicators. As
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• We, on a sample basis compared the recoverable/ realisable
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the impairment assessment involves significant assumptions and
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amount of the investment and loans and advances to the carrying
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judgement, we regard this as a key audit matter.
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value in books.
• We, on a sample basis read the most recent audited financial
statements of component entities and performed inquiries with
management on the project status and future business plan of
component entities.
• We assessed the disclosures made in the standalone financial
statements regarding such investments and loans and advances.
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OTHER INFORMATION
The Company’s Board of Directors is responsible for the other information.
The other information comprises the information included in the Annual
report, but does not include the standalone financial statements and
our auditor’s report thereon. The Annual report is expected to be made
available to us after the date of this auditor’s report.
Our opinion on the standalone financial statements does not cover
the other information and we 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 such other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated.
RESPONSIBILITIES OF MANAGEMENT AND
THOSE CHARGED WITH GOVERNANCE FOR THE
STANDALONE FINANCIAL STATEMENTS
The Company’s Board of Directors is responsible for the matters stated
in section 134(5) of the Act with respect to the preparation of these
standalone financial statements that give a true and fair view of the
financial position, financial performance 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
Indian Accounting Standards (Ind AS) specified under section 133 of
the Act read with the Companies (Indian Accounting Standards) Rules,
2015, as amended. 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 the design, implementation and
maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the standalone
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is
responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless management either
intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those charged with governance are also responsible for overseeing the
Company’s financial reporting process.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF
THE STANDALONE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether
the standalone financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these
standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional
judgment and maintain professional skepticism throughout the audit.
We also:
• I dentify 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 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 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.
• 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.
• For the partnership entities included in the standalone financial
statements, which have been audited by other auditors, such
other auditors remain responsible for the direction, supervision
and performance of the audits carried out by them. We remain
solely responsible for our audit opinion.
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 for the financial year ended March
31, 2026 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.
OTHER MATTER
We did not audit the financial statements and other financial information
as regards Company’s share in net profit (loss) after tax of partnership
firm/ limited liability partnership entities amounting to Rs. 814 million for
the year ended March 31, 2026, as considered in these standalone
financial statements, in respect of 30 entities. These financial statements
and other financial information of the said partnership firm/ limited liability
partnership entities have been audited by other auditors, Our opinion on
the standalone financial statements, in so far as it relates to the amounts
and disclosures included in respect of these partnership firm/ limited
liability partnership entities and our report in terms of sub-sections (3)
of Section 143 of the Act, in so far as it relates to the these partnership
firm/ limited liability partnership entities, is based solely on the reports of
such other auditors. Our opinion is not modified in respect of this matter.
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 of India in terms of sub¬
section (11) of section 143 of the Act, we give in the “Annexure
1” a statement on the matters specified in paragraphs 3 and 4 of
the Order.
2. As required by Section 143(3) of the Act, 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 purposes of our audit;
(b) I n our opinion, proper books of account as required by law
have been kept by the Company, in electronic mode on
servers physically located in India so far as it appears from
our examination of those books, except that for the matters
stated in the paragraph (i)(vi) below on reporting under Rule
11(g);
(c) The Balance Sheet, the Statement of Profit and Loss
including the Statement of Other Comprehensive Income,
the Statement of Cash Flows and Statement of Changes in
Equity dealt with by this Report are in agreement with the
books of account;
vi. Based on our examination which included test checks,
the Company has used 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 except for audit
trail feature is not enabled for direct changes to data
when using certain access rights, as described in note
51 to the standalone financial statements. Further,
during the course of our audit we did not come across
any instance of audit trail feature being tampered with,
in respect of accounting software where the audit
trail has been enabled. Additionally, the audit trail of
the relevant prior years have been preserved by the
(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 is disqualified as on
March 31,2026 from being appointed as a director in terms
of Section 164 (2) of the Act;
(f) The modification relating to the maintenance of accounts
and other matters connected therewith are as stated in the
paragraph (b) above on reporting under section 143(3)(b)
and paragraph (i)(vi) below on reporting under Rule 11(g);
(g) With respect to the adequacy of the internal financial
controls with reference to standalone financial statements
and the operating effectiveness of such controls, refer to our
separate Report in “Annexure 2" to this report;
( h) I n our opinion, the managerial remuneration for the year
ended March 31, 2026 has been paid / provided by the
Company to its directors in accordance with the provisions
of section 197 read with Schedule V to the Act;
(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 44 and 50 to the
standalone financial statements;
ii. The Company has made provision, as required
under the applicable law or accounting standards,
for material foreseeable losses, if any, on long-term
contracts including derivative contracts - Refer Note
34 to the standalone financial statements;
i ii. Following are the instances of delay in transferring
amounts, required to be transferred, to the Investor
Education and Protection Fund by the Company:
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Particulars
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Date of
payment
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Amount
involved
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No of
day’s
delay
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Amount in the
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December
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Rs. 0.03
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35 days
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Unpaid Dividend 30, 2025
Account relating
to FY 2017-18
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million
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iv. a) The management has represented that, to the
best of its knowledge and belief, other than as
disclosed in the note 59(v) to the standalone
financial statements, 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, as disclosed
in the note 59(vi) to the standalone financial
statements, 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 performed
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 (a) and
(b) contain any material misstatement.
v. The final dividend paid by the Company during the
year in respect of the same declared for the previous
year is in accordance with section 123 of the Act to
the extent it applies to payment of dividend.
As stated in note 25.6 to the standalone financial
statements, the Board of Directors of the Company
has proposed final dividend for the year which is
subject to the approval of the members at the ensuing
Annual General Meeting. The dividend declared is in
accordance with section 123 of the Act to the extent
it applies to declaration of dividend.
Company as per the statutory requirements for record
retention to the extent it was enabled and recorded in
the respective years.
For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Sudhir Kumar Jain
Partner
Membership Number: 213157
UDIN: 26213157PTEAMM3632
Place: Bengaluru, India
Date: May 21,2026
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