ON AUDIT OF ANNUAL CONDENSED STANDALONE FINANCIAL STATEMENTS AND REVIEW OF QUARTERLY
AND HALF YEARLY CONDENSED STANDALONE FINANCIAL STATEMENTS
To
The Governing Board
K. Raheja Corp Investment Managers LLP (the "Investment Manager")
(Acting in capacity as the Investment Manager of Mindspace Business Parks REIT)
Opinion and Conclusion
We have :
(a) audited the Condensed Standalone Financial statements of Mindspace Business Park
REIT ("the REIT"/ "the Trust") for the year ended March 31, 2023
which comprises of the following:
• the Condensed Standalone Balance Sheet as at 31 March 2023;
• the Condensed Standalone Statement of Profit and Loss (including Other
Comprehensive Income) for the year ended 31 March 2023;
• the Condensed Standalone Statement of Cash Flows for the year ended 31 March
2023;
• the Condensed Standalone Statement of Changes in Unitholders Equity for the
year ended 31 March 2023;
• the Statement of Net Assets at fair value as at 31 March 2023;
• the Statement of Total Return at fair value for the year ended 31 March 2023;
• the Statement of Net Distributable Cash Flow for the year ended 31 March 2023;
and
• summary of the significant accounting policies and select explanatory notes
(b) reviewed the Condensed Standalone Financial Statements of the REIT which comprise
of the (refer Other Matters section below):
• the Condensed Standalone Statement of Profit and Loss (including Other
Comprehensive Income) for the quarter and half year ended 31 March 2023;
• the Condensed Standalone Statement of Cash Flows for the quarter and half year
ended 31 March 2023;
• the Statement of Total Return at fair value for the half year ended 31 March
2023;
• the Statement of Net Distributable Cash Flow for the quarter and half year ended
31 March 2023; and
• summary of the significant accounting policies and select explanatory notes.
These statements are included in the accompanying "Condensed Standalone Financial
Statements" of the REIT, ("the Condensed Standalone Financial Statements"),
being submitted by the REIT pursuant to the requirements of Securities and Exchange Board
of India (Real Estate Investment Trusts) Regulations, 2014 as amended from time to time
including any guidelines and circulars issued thereunder read with SEBI Circular No.
CIR/IMD/DF/146/2016 dated December 29, 2016 (the "REIT regulations") and
Regulation 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015, as amended.
(a) Opinion on Condensed Standalone Financial Statements
In our opinion and to the best of our information and according to the explanations
given to us, the Condensed Standalone Financial Statements for the year ended March 31,
2023:
i. is presented in accordance with the requirements the REIT regulations and Regulation
52 and Regulation 54 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended ("the Listing Regulations"); and
ii. gives a true and fair view in conformity with the Indian Accounting Standards 34
"Interim Financial Reporting" ("Ind AS 34") and other accounting
principles generally accepted in India to the extent not inconsistent with the REIT
Regulations, of the state of affairs of the REIT as at 31 March 2023 its profit (including
other comprehensive income, its cash flows, its changes in Unitholders equity, its net
assets at Fair value, total returns at fair value and net distributable cash flows and
other financial information of the for the year then ended.
(b) Conclusion on Unaudited Condensed Standalone Financial Statements for the quarter
and half year ended March 31, 2023
With respect to the Condensed Standalone Financial Statements for the quarter and half
year ended March 31, 2023, based on our review conducted and procedures performed as
stated in paragraph (b) of Auditors Responsibilities section below, nothing has come to
our attention that causes us to believe that the Condensed Standalone Financial Statements
for the quarter and half year ended March 31, 2023, prepared in accordance with the REIT
Regulations, the Ind AS 34 and other accounting principles generally accepted in India, to
the extent not inconsistent with the REIT Regulations, and has not disclosed the
information required to be disclosed in terms of the REIT Regulations and Listing
Regulations, including the manner in which it is to be disclosed, or that it contains any
material misstatement.
Basis for Opinion on the Audited Condensed Standalone Financial Statements for the year
ended March 31, 2023
We conducted our audit in accordance with the Standards on Auditing ("SAs")
issued by Institute of Chartered Accountants of India (the "ICAI"). Our
responsibilities under those Standards are further described in paragraph (a) of Auditors
Responsibilities section below. We are independent of the REIT in accordance with the Code
of Ethics issued by the ICAI together with the ethical requirements that are relevant to
our audit of the Condensed Standalone Financial Statements for the year ended March 31,
2023, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the ICAIs Code of Ethics. We believe that the audit evidence obtained by
us is sufficient and appropriate to provide a basis for our audit opinion.
Emphasis of Matter
We draw attention to Note 2 which describes the Basis of preparation of condensed
standalone financial statements and Note 13(a)(i) which describes the presentation of
"Unit Capital" as "Equity" instead of compound financial instrument to
comply with the REIT Regulations. Our opinion is not modified in respect of this matter.
Managements Responsibilities for the Condensed Standalone Financial Statements
The Condensed Standalone Financial Statements is the responsibility of the Investment
Manager (the "Management") and has been approved by them for the issuance. The
Condensed Standalone Financial Statements for the year ended March 31, 2023 has been
compiled from the related audited standalone financial statements. This responsibility
includes the preparation and presentation of the Condensed Standalone Financial Statements
for the quarter and year ended March 31, 2023 that give a true and fair view of the state
of affairs as at 31 March 2023, its profit/(loss)including other comprehensive
income/(loss) and cash flows for the quarter, half year and year ended 31 March 2023, its
changes in Unitholders equity for the year ended 31 March 2023, its net assets at fair
value as at 31 March 2023, its total return at fair value for the half year and year ended
31 March 2023, its net distributable cash flows for the quarter, half year and year ended
31 March 2023 and other financial information of the REIT in conformity with the REIT
Regulations. Ind AS 34 and other accounting principles generally accepted in India, to the
extent not inconsistent with REIT Regulations and in compliance with the REIT Regulations
and Listing Regulations. This responsibility also includes maintenance of adequate
accounting records for safeguarding the assets of the REIT 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 Condensed Standalone
Financial Statements that give a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the Condensed Standalone Financial Statements, the Investment Managers is
responsible for assessing the REITs 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 either intends to liquidate the REIT or to cease
operations, or has no realistic alternative but to do so.
The Investment Managers is also responsible for overseeing the financial reporting
process of the REIT.
Auditors Responsibilities
Our Audit of the Condensed Standalone Financial Statements for the year ended March 31,
2023
Our effectives are to obtain reasonable assurance about whether the Condensed
Standalone Financial
Statements for the year ended March 31, 2023 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 the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of this Condensed
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 Annual Condensed
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, but not for the purpose
of expressing an opinion on the effectiveness of the Companys internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by the Investment Manager.
• Evaluate the appropriateness and reasonableness of disclosures made by the
Investment Manager in terms of the requirements specified under the REIT Regulations and
Listing Regulations.
• Conclude on the appropriateness of the Investment Managers 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
ability of the REIT to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditors report to the
related disclosures in the Condensed 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 REIT to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Annual Condensed
Standalone Financial Statements, including the disclosures, and whether the Annual
Condensed Standalone Financial Statements represent the underlying transactions and events
in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the Annual Condensed
Standalone Financial Statements of the REIT to express an opinion on the Annual Condensed
Standalone Financial Statements.
Materiality is the magnitude of misstatements in the Annual Condensed Standalone
Financial Statements that, individually or in aggregate, makes it probable that the
economic decisions of a reasonably knowledgeable user of the Annual Condensed Standalone
Financial Statements may be influenced. We consider quantitative materiality and
qualitative factors in (i) planning the scope of our audit work and in evaluating the
results of our work; and (ii) to evaluate the effect of any identified misstatements in
the Annual Condensed 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.
(b) Review of the Condensed Standalone Financial Statements for the quarter and half
year ended March 31, 2023
We conducted our review of the Condensed Standalone Financial Statements for the
quarter and half year ended March 31, 2023 in accordance with the Standard on Review
Engagements ("SRE") 2410 Review of Interim Financial Information Performed by
the Independent Auditor of the Entity, issued by the ICAI. A review of interim financial
information consists of making inquiries, primarily of the Investment Managers personnel
responsible for financial and accounting matters and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in accordance
with SAs Act and ^Sn^equently does not enable us to obtain assurance that we would become
aware of all significant matters rfjiciht be identified in an audit. Accordingly, we do
not express an audit opinion.
Other Matter
• As stated in Note 35(a) of the Condensed Standalone Financial Statements, the
financial information for the quarter and half year ended 31 March 2023 are the balancing
figures between the audited figures in respect of the full financial year and the
published year to date figures up to the third quarter and second quarter of the current
financial year which were subject to limited review by us. Our report on the Condensed
Standalone Financial Statements is not modified in respect of this matter.
• As stated in Note 35(b) of the Condensed Standalone Financial Statements, the
financial information for the Quarter and Half Year ended March 31, 2022 are the balancing
figures between the annual audited figures in respect of the full financial year and the
published year to date figures up to the third quarter and first half of the previous
financial year which were subject to limited review by us. Our report on the Statement is
not modified in respect of this matter.
|
For DELOITTE HASKINS & SELLS LLP |
|
Chartered Accountants |
|
(Firms Registration No. 117366W/W-100018) |
|
Nilesh Shah |
|
Partner |
| Place: Mumbai |
Membership No. 49660 |
| Date: May 04, 2023 |
UDIN: 130^ 4kDBAY FEE 12.21 |
+91-9892691696
