peninsula land ltd Auditors report

To the Members of Peninsula Land Limited

Report on the Audit of the Standalone Ind AS Financial Statements

OPINION

We have audited the accompanying Standalone Ind AS fi nancial statements of Peninsula Land Limited ("the Company"), which comprise the Balance sheet as at March 31 2023, the Statement of Profi t and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the standalone Ind AS fi nancial statements, including a summary of signifi cant 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 Ind AS fi nancial 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, 2023, its profi t including other comprehensive income, its cash fl ows and the changes in equity for the year ended on that date.

BASIS FOR OPINION

We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing (SAs), as specifi ed under section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditors Responsibilities for the Audit of the Standalone Ind AS 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 fi nancial statements under the provisions of the Act and the Rules thereunder, and we have fulfi lled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion on the standalone Ind AS fi nancial statements.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional judgment, were of most signifi cance in our audit of the standalone Ind AS fi nancial statements for the fi nancial year ended March 31, 2023. These matters were addressed in the context of our audit of the standalone Ind AS fi nancial 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 fulfi lled the responsibilities described in the Auditors responsibilities for the audit of the standalone Ind AS fi nancial 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 Ind AS fi nancial 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 Ind AS fi nancial statements.

Key audit matters	How our audit addressed the key audit matter
Assessing the carrying value of Inventory (as described in note 11 of the standalone fi nancial statements)	Our audit procedures included considering the Companys accounting policies with respect to valuation of inventories in accordance with Ind AS 2 "Inventories".
As at March 31, 2023, the carrying value of the inventory of ongoing and completed real estate projects is Rs. 52,722 Lakhs. The inventories are held at the lower of the cost and net realisable value.
	We assessed the Companys methodology based on current economic and market conditions applied in assessing the carrying value of Inventory balance.
The cost of the inventory is calculated using actual land acquisition costs, construction costs, development related costs and interest capitalised for eligible projects.
	We performed test of controls over process of valuation of inventory and authorization for inventory write down.
	We performed the following test of details:
We identifi ed the assessment of whether carrying value of inventory were stated at the lower of cost and net realisable value ("NRV") as a key audit matter due to the signifi cance of the balance to the standalone Ind AS financial statements as a whole and the involvement of estimations in the assessment. The determination of the NRV involves estimates based on prevailing market conditions and taking into account the estimated future selling price, cost to complete projects and selling costs.	- Assessed the methods used by the management, in determining the NRV of ongoing and completed real estate projects applied in assessing the NRV.
	- Obtained, read and assessed the managements process in estimating the future costs to completion for inventory of ongoing projects.
	- Discussed with management the life cycle of the project, key project risks, changes to project strategy, current and future estimated sales prices, construction progress and impairment.
	- Compared the NRV to recent sales in the project

 

Key audit matters	How our audit addressed the key audit matter
Assessing Impairment of Investments and receivables from investee companies (as described in note 7, 8, 9 and 55 of the standalone Ind AS fi nancial statements)
	As at March 31, 2023, the carrying values of Companys investment in subsidiaries, joint venture and associate companies amounted to Rs. 1,708 Lakhs. Receivables from the subsidiaries, joint venture and associate companies including interest accrued amounted to Rs. 23,859 Lakhs. Management reviews regularly whether there are any indicators of impairment of the investments and receivables by reference to the requirements under Ind AS 36 "Impairment of Assets".	Our audit procedures included considering the Companys accounting policies with respect to impairment in accordance with Ind AS 36 "Impairment of Assets".
We performed test of controls over impairment process through inspection of evidence of performance of these controls.
We performed the following test of details:
- We assessed the Companys valuation methodology and assumptions applied, based on current economic and market conditions in determining the recoverable amount.
- We obtained and read the valuation report used by the management for determining the fair value (recoverable amount) of its investments and receivables from investee Companies.
	For investments where impairment indicators exist, signifi cant judgments are required to determine the key assumptions used in the discounted cash fl ow models, such as revenue growth, unit price and discount rates. We focused our effort on those cases with impairment indicators.
- We assessed the key assumptions included in the cash fl ow forecasts by management, including considerations due to current economic and market conditions.
- We involved our valuation expert for assisting us in reviewing and evaluating the managements assessment in this matter.
As the impairment assessment involves signifi cant assumptions and judgement, we regard this as a key audit matter.	- We compared the fair value of the investment and receivables as mentioned in the valuation report to the carrying value in books.
	- We performed sensitivity analysis on the key assumptions adopted in the impairment assessments to understand the impact of reasonable changes in assumptions on the estimated recoverable amounts.
	- We tested the disclosures in accordance with the Ind AS 36 "Impairment of Assets.

 

Key audit matters	How our audit addressed the key audit matter
Managements assessment of appropriateness of Going concern assumptions (Refer Note 53 to the standalone fi nancial statements)
The Company has current liabilities of Rs. 107,161 Lakhs and current assets of Rs. 60,921 Lakhs as at 31st March 2023.	Our procedures in relation to evaluation of going concern assumption, included, among others, the following:
Current liabilities are in excess of current asset mainly due to payable for projects and repayment dues to banks and fi nancial institutions.	- We obtained and reviewed the cash fl ow projections for next one year for all the projects and gained an understanding of managements process, approach and assumptions considered in preparation of the cash fl ow projections.
Management has made an assessment of the Companys ability to continue as a Going Concern as required by Ind AS 1 Presentation of Financial Statements considering all the available information and has concluded that the going concern basis of accounting is appropriate.	- Discussed with management and assessed the assumptions, judgements and estimates used in developing business plan and cash fl ow projections having regards to past performance and current emerging business trends affecting the business of the Company.
	- Obtained and verifi ed the supporting documents underlying the cash fl ow projections prepared by the Company.
Going Concern assessment has been identifi ed as a key audit matter considering the signifi cant judgements and estimates involved in the assessment and its dependence upon cashfl ows from operations, planned disposal of non-core assets, arranging additional long term fundings from banks and fi nancial institutions and other planned fi nancial initiatives.	- Verifi ed reasonableness of projected collection from customers basis the agreed payment milestones, project plan for completion, and past trend with respect to new bookings.
	- Verifi ed the sanction letter for long-term borrowing to refi nance debt falling due during next fi nancial year.
	- Assessed the Companys ability to collect funds from sale of inventory basis past performance and future outlook for each project.
	- Obtained and discussed managements plan to monetize non-core assets. Verifi ed the supporting documents for sale of certain non-core assets which are at advanced stage of disposal.
	- Assessed the adequacy of disclosures made by the Company in its standalone fi nancial statements in this regard.

Information Other than the Financial Statements and Auditors Report Thereon

The Companys 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 Ind AS fi nancial statements and our auditors report thereon. The annual report is expected to be made available to us after the date of this Auditors report.

Our opinion on the standalone Ind AS fi nancial 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 Ind AS fi nancial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the fi nancial 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 for the Standalone Ind AS Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone Ind AS fi nancial statements that give a true and fair view of the fi nancial position, fi nancial performance including other comprehensive income, cash fl ows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specifi ed 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 fi nancial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Ind AS fi nancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone Ind AS fi nancial statements, management is responsible for assessing the Companys 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 Board of Directors are also responsible for overseeing the Companys fi nancial reporting process.

Auditors Responsibilities for the Audit of the Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone Ind AS fi nancial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to infl uence the economic decisions of users taken on the basis of these standalone Ind AS fi nancial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Standalone Ind AS fi nancial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is suffi cient 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 fi nancial controls with reference to fi nancial 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 managements 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 signifi cant doubt on the Companys ability 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 fi nancial 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 Ind AS fi nancial statements, including the disclosures, and whether the standalone Ind AS fi nancial 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 signifi cant audit fi ndings, including any signifi cant defi ciencies 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 signifi cance in the audit of the standalone Ind AS fi nancial statements for the fi nancial year ended March 31, 2023 and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefi ts 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, we give in the "Annexure 1" a statement on the matters specifi ed in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

(c) The Balance Sheet, the Statement of Profi t and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specifi ed 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, 2023 taken on record by the Board of Directors, none of the directors is disqualifi ed as on March 31, 2023 from being appointed as a director in terms of Section 164(2) of the Act;

(f) With respect to the adequacy of the internal fi nancial controls with reference to these standalone Ind AS fi nancial statements and the operating effectiveness of such controls, refer to our separate Report in "Annexure 2" to this report;

(g) In our opinion, the managerial remuneration for the year ended March 31, 2023 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;

(h) With respect to the other matters to be included in the Auditors 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 fi nancial position in its standalone Ind AS fi nancial statements – Refer Note 36 to the standalone Ind AS fi nancial 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 identifi ed 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 Benefi ciaries;

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 identifi ed in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Benefi ciaries") or provide any guarantee, security or the like on behalf of the Ultimate Benefi ciaries; 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. No dividend has been declared or paid during the year by the Company.

vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only w.e.f. April 1, 2023, reporting under this clause is not applicable.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm Registration Number: 324982E/E300003

_____________________ per Firoz Pradhan

Partner

Membership Number: 109360 UDIN 23109360BGYBHJ2261 Place of Signature: Mumbai Date: May 30, 2023

ANNEXURE 1 REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE

Re: Peninsula Land Limited ("the Company")

In terms of the information and explanations sought by us and given by the company and the books of account and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that:

(i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.

(B) The Company has maintained proper records showing full particulars of intangible assets.

(b) Property, Plant and Equipment have been physically verified by the management during the year and no material discrepancies were identifi ed on such verifi cation.

(c) The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.

(d) The Company has not revalued its Property, Plant and Equipment (including Right of use assets) or intangible assets during the year ended March 31, 2023.

(e) There are no proceedings initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

(ii) (a) The inventory has been physically verified by the management during the year except for the inventories lying with third parties. In our opinion, the frequency of verifi cation by the management is reasonable and the coverage and procedures for such verifi cation is appropriate. Inventories lying with third parties have been confi rmed by them as at March 31, 2023 and no discrepancies were noticed in respect of such confi rmations. No material discrepancies were noticed on such physical verifi cation.

(b) As stated in Note 63 to the financial statements and represented by the management, no quarterly returns/statements are filed by the Company with banks and fi nancial institutions in relation to sanctioned working capital limits in excess of fi ve crores rupees, in aggregate, on the basis of security of current assets.

(iii) (a) During the year the Company has provided loans, advances in the nature of loans, stood guarantee and provided security to companies or fi rms as follows:

Aggregate amount granted/ provided during the year (Amount in Lakhs)	Guarantees	Security	Loans
- Subsidiaries	-	-	8,511
- Joint Ventures	-	-	11
- Associates	-	-	-
- Others	-	-	-
Balance outstanding as at the balance sheet date in respect of above cases net of impairment
(Amount in Rs. Lakhs)
- Subsidiaries	1,489	1,341	19,313
- Joint Ventures	-	-	3,767
- Associates	-	-	-
- Others	-	-	-

During the year the Company has not provided loans, advances in the nature of loans, stood guarantee and provided security to Limited Liability Partnerships or any other parties.

(b) The Company has granted loans and provided security for infrastructure purposes to its subsidiary companies, join venture company and associate company. We are informed by the Company that the loans granted to subsidiary companies are interest free considering the furtherance of the business objectives of the Company and accordingly, having regard to such management representation, in our opinion, the terms and conditions of the grant of all loans as stated above are not prejudicial to the Companys interest.

(c) The Company has granted loans that are repayable on demand to subsidiaries, joint venture and associate company, other companies, and other parties. The loan provided to subsidiary companies are interest free. For loans granted to join venture company, associate company and other companies, schedule of payment of interest has been stipulated.

For loans granted to joint venture, associate and other companies, interest income is not recognised considering the uncertainty of collection. Hence, we are unable to comment on the regularity of interest payment by these companies.

The relevant information in relation to these loans granted and outstanding as of the balance sheet date is as follows:

Name of the entity	Relationship	Gross amount before impairment	Due date Extent of Remarks, delay if any
Peninsula Holdings and Investment Private Limited	Subsidiary	30,236	All the loans are repayable on demand. We are informed that the Company has not demanded repayment of any such loans during the year, and thus, there has been no default on the part of the parties to whom the money has been lent. Accordingly, information relating to due date and extent of delay has not been provided.
Rockfi rst Real Estate Limited	Subsidiary	8,736
Inox Mercantile Company Private Limited	Step down Subsidiary	2,812
Truewin Realty Limited	Step down Subsidiary	8,038
Peninsula Pharma Research Centre Private Limited	Step down Subsidiary	2,185
Top Value Real Estate Development Limited	Step down Subsidiary	1,095
Planetview Mercantile Company Private Limited	Step down Subsidiary	1,039
Take Now Property Developers Private Limited	Step down Subsidiary	309
Peninsula Mega City Development Private Limited	Step down Subsidiary	44	Refer reporting in point (d) below for Other Companies
Midland Township Private Limited	Step down Subsidiary	58
Goodhome Realty Limited	Step down Subsidiary	32
Bridgeview Real Estate Development LLP	Joint Venture	7,734
Hem – Bhattad (AOP)	Step down investment	779
RA Realty Ventures LLP	Associate	19,418
RAK Construction Project Private Limited	Other Companies	375
RAK Realty Private Limited	Other Companies	491
KS Enterprises	Other Companies	274

(d) The following amounts are overdue for more than ninety days from companies, fi rms, Limited Liability Partnerships or any other parties to whom loan has been granted during the earlier year, and reasonable steps have not been taken by the Company for recovery of the overdue amount of principal and interest.

Number of	Principal Amount	Interest	Total	Remarks
Cases	Overdue	Overdue	Overdue	(if any)
3	1,140	-	1,140

(e) There were no loans or advance in the nature of loans granted to companies, fi rms, Limited Liability Partnerships or any other parties which was fallen due during the year, that have been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties.

(f) As disclosed in note 9 to the fi nancial statements, during the year, the Company has granted loans or advances in the nature of loans, either repayable on demand or without specifying any terms or period of repayment to companies, fi rms, Limited Liability Partnerships or any other parties. Of these, following are the details of the aggregate amount of loans or advances in the nature of loans granted to promoters or related parties as defi ned in clause (76) of section 2 of the Companies Act, 2013:

	All Parties	Promoters	Related Parties
Aggregate amount of loans/	8,522	-	8,522
advances in nature of loans -
Repayable on demand
Percentage of loans/	100%	-	100%
advances in nature of loans
to the total loans

(iv) Loans, investments, guarantees, and security in respect of which provisions of sections 185 and 186 of the Companies Act, 2013 are applicable have been complied with by the Company.

(v) The Company has neither accepted any deposits from the public nor accepted any amounts which are deemed to be deposits within the meaning of sections 73 to 76 of the Companies Act and the rules made thereunder, to the extent applicable. Accordingly, the requirement to report on clause 3(v) of the Order is not applicable to the Company.

(vi) The Central Government has prescribed the maintenance of cost records for the products/services of the Company under sub-section (1) of Section 148 of the Act and the rules framed thereunder. However, as represented by the management of the Company, these records are not required to be made and maintained in case the projects are only residential in nature. Accordingly, the management has not made and maintained the prescribed accounts and records.

(vii) (a) Undisputed statutory dues including goods and services tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, cess and other statutory dues have generally been regularly deposited with the appropriate authorities though there has been a slight delay in a few cases. According to the information and explanations given to us and based on audit procedures performed by us, no undisputed amounts payable in respect of these statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.

(b) The dues of goods and services tax, provident fund, employees state insurance, income tax, sales tax, service tax, duty of custom, duty of excise, value added tax, cess and other statutory dues which have not been deposited on account of any dispute, are as follows:

Name of the statute	Nature of the dues	Amount (Rs.Lakhs)	Period to which the amount relates	Forum where the dispute is pending
Maharashtra Value Added Tax , 2002	Value Added Tax	1,722.00	FY 2006-07 to FY 2017-18	Deputy Commissioner of Sales Tax Appeals
Maharashtra Value Added Tax , 2002	Value Added Tax	184.00	FY 2011-12	Deputy Commissioner of Sales Tax Appeals
Maharashtra Value Added Tax , 2002	Value Added Tax	687.00	FY 2017-18	Deputy Commissioner of State Tax GST
Finance Act, 1994	Service Tax	105.43	FY 2016-17	Additional Commissioner GST
Finance Act, 1994	Service Tax	574.00	FY 2015-16 and 2016-17	Director General of Goods and Services Tax Intelligence
Finance Act, 1994	Goods and Service Tax	67.00	FY 2017-18	Director General of Goods and Services Tax Intelligence

(viii) The Company has not surrendered or disclosed any transaction, previously unrecorded in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the year. Accordingly, the requirement to report on clause 3(viii) of the Order is not applicable to the Company.

(ix) (a) The Company has defaulted in repayment of dues to fi nancial institutions, banks and Government / debenture holders during the year as stated below. This matter has been disclosed in note 22 to the fi nancial statements:

Nature of borrowing, including debt securities	Name of lender	Amount not paid on due date	Whether principal or interest	No. of days delay or unpaid	Remarks, if any
Secured Loan for Project	SBI Bank	5,38,03,404	Interest	Delay in days ranging from 01-31 Days.
Secured Loan for Project	RBL Loan	3,84,31,115	Interest	Default in days ranging from 30-275 Days.
Overdraft	RBL	3,95,55,235	Interest	Default in days ranging from 30-275 days.
Interest Accrued	RBL	8,60,98,198	Interest accrued	Delay by 305 Days.
Secured Loan for Project	RBL	36,61,23,592	Principal	Default in days ranging from 30-275 Days.
Overdraft	RBL	34,48,00,000	Principal	Default in days ranging from 30-275 Days.
Overdraft	HDFC	2,62,93,099	Interest	Delay in Days ranging from 1-3 Days.

* There were no continuing defaults as at March 31, 2023 and all the delays were regularized as at the year-end (Refer note 61 to the fi nancial statement for restructuring of borrowings with one of the lenders)

(b) The Company has not been declared willful defaulter by any bank or fi nancial institution or government or any government authority.

(c) Term loans were applied for the purpose for which the loans were obtained.

(d) On an overall examination of the fi nancial statements of the Company, the Company has used funds raised on short-term basis in the form of short-term borrowings and working capital aggregating to Rs. 24,073 Lakhs for long-term purposes representing acquisition of investment properties and loans to Group Companies.

(e) On an overall examination of the fi nancial statements of the Company, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures.

(f) The Company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies. Hence, the requirement to report on clause (ix)(f) of the Order is not applicable to the Company.

(x) (a) The Company has not raised any money during the year by way of initial public offer / further public offer (including debt instruments) hence, the requirement to report on clause 3(x)(a) of the Order is not applicable to the Company.

(b) The Company has complied with provisions of sections 42 and 62 of the Companies Act, 2013 in respect of the preferential allotment or private placement of shares during the year. The funds raised, have been used for the purposes for which the funds were raised.

(xi) (a) No fraud by the Company or no material fraud on the Company has been noticed or reported during the year.

(b) During the year, no report under sub-section (12) of section 143 of the Companies Act, 2013 has been fi led by cost auditor, secretarial auditor or by us in Form ADT – 4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.

(c) As represented to us by the management, there are no whistle blower complaints received by the Company during the year.

(xii) The Company is not a nidhi company as per the provisions of the Companies Act, 2013. Therefore, the requirement to report on clause 3(xii)(a), (b) and (c) of the Order are not applicable to the Company.

(xiii) Transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the fi nancial statements, as required by the applicable accounting standards.

(xiv) (a) The Company has an internal audit system commensurate with the size and nature of its business.

(b) The internal audit reports of the Company issued till the date of the audit report, for the period under audit have been considered by us.

(xv) The Company has not entered into any non-cash transactions with its directors or persons connected with its directors and hence requirement to report on clause 3(xv) of the Order is not applicable to the Company.

(xvi) (a) The provisions of section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934) are not applicable to the Company. Accordingly, the requirement to report on clause (xvi)(a) of the Order is not applicable to the Company.

(b) The Company is not engaged in any Non-Banking Financial or Housing Finance activities. Accordingly, the requirement to report on clause (xvi)(b) of the Order is not applicable to the Company.

(c) The Company is not a Core Investment Company as defi ned in the regulations made by Reserve Bank of India. Accordingly, the requirement to report on clause 3(xvi)(c) of the Order is not applicable to the Company.

(d) There is no Core Investment Company as a part of the Group, hence, the requirement to report on clause 3(xvi)(d) of the Order is not applicable to the Company.

(xvii) The Company has not incurred cash losses in the current year and in the immediately preceding fi nancial year.

(xviii) There has been no resignation of the statutory auditors during the year and accordingly requirement to report on Clause 3(xviii) of the Order is not applicable to the Company.

(xix) On the basis of the fi nancial ratios disclosed in note 56 and note 53 to the fi nancial statements, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the fi nancial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.

(xx) The provisions of Section 135 to the Companies Act, 2013 in relation to Corporate Social Responsibility is not applicable to the Company. Accordingly, the requirement to report on clause 3(xx)(a) and 3(xx)(b) of the Order is not applicable to the Company.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm Registration Number: 324982E/E300003

_____________________ per Firoz Pradhan

Partner

Membership Number: 109360 UDIN 23109360BGYBHJ2261 Place of Signature: Mumbai Date: May 30, 2023

Annexure 2 to the Independent auditors report of even date on the standalone fi nancial statements of Peninsula Land Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal fi nancial controls with reference to standalone Ind AS fi nancial statements of Peninsula Land Limited ("the Company") as of March 31, 2023 in conjunction with our audit of the standalone Ind AS fi nancial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys Management is responsible for establishing and maintaining internal fi nancial controls based on the internal control over fi nancial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India ("ICAI"). These responsibilities include the design, implementation and maintenance of adequate internal fi nancial controls that were operating effectively for ensuring the orderly and effi cient conduct of its business, including adherence to the Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable fi nancial information, as required under the Act.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal fi nancial controls with reference to these standalone Ind AS fi nancial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, as specifi ed under section 143(10) of the Act, to the extent applicable to an audit of internal fi nancial controls, both issued by ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal fi nancial controls with reference to these standalone Ind AS fi nancial statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal fi nancial controls with reference to these standalone Ind AS fi nancial statements and their operating effectiveness. Our audit of internal fi nancial controls with reference to standalone Ind AS fi nancial statements included obtaining an understanding of internal fi nancial controls with reference to these standalone Ind AS fi nancial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion on the Companys internal fi nancial controls with reference to these standalone Ind AS fi nancial statements.

Meaning of Internal Financial Controls With Reference to these Standalone Ind AS Financial Statements

A companys internal fi nancial controls with reference to standalone Ind AS fi nancial statements is a process designed to provide reasonable assurance regarding the reliability of fi nancial reporting and the preparation of fi nancial statements for external purposes in accordance with generally accepted accounting principles. A companys internal fi nancial controls with reference to standalone Ind AS fi nancial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly refl ect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of fi nancial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companys assets that could have a material effect on the fi nancial statements.

Inherent Limitations of Internal Financial Controls With Reference to Standalone Ind AS Financial Statements

Because of the inherent limitations of internal fi nancial controls with reference to standalone Ind AS fi nancial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal fi nancial controls with reference to standalone Ind AS fi nancial statements to future periods are subject to the risk that the internal fi nancial control with reference to standalone Ind AS fi nancial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, adequate internal fi nancial controls with reference to standalone Ind AS fi nancial statements and such internal fi nancial controls with reference to standalone Ind AS fi nancial statements were operating effectively as at March 31, 2023, based on the internal control over fi nancial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm Registration Number: 324982E/E300003

per Firoz Pradhan

Partner

Membership Number: 109360 UDIN 23109360BGYBHJ2261 Place of Signature: Mumbai Date: May 30, 2023