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KMF Builders & Developers Ltd. — Audit Report / Information 2026
May 30, 2026
63705_rns_2026-05-30_6828beba-3244-47eb-bc2f-24baf8b7217b.pdf
Audit Report / Information
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KMF
KMF BUILDERS & DEVELOPERS LTD.
Regd. Office : 508, Golf Manor NAI, Wind Tunnel Road, Murugesh Palya, Bangalore 560017 Tel. : 080-41486142
Corp. Office : 907, 9th Floor, Vikram Tower, Rajendera Place, New Delhi -110008 Tel. : 011-45636075
E-mail: [email protected] Web: www.kmfbuilders.com
CIN: L45203KA1995PLC017422
GSTIN No.: 29AAACK8497L1ZO
Date: 30/05/2026
To
The Manager
The Bombay Stock Exchange of India Ltd.
Phiroz Jeejeebhoy Tower
Dalal Street, Mumbai-400001
Fax No. 022-22723121/3719/2037
Subject: -Audited Financial Results for the quarter and year ended 31st March, 2026
Regulation 33 of SEBI LODR Regulations, 2015
BSE (SCRIP CODE: 531578)
Dear Sir/Madam,
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, we are pleased to inform you that the Board of Directors at its meeting held today (30-05-2026) which commenced at 15:30 and concluded at 17:00 have considered and approved the followings:
- The Board has approved and taken on record the audited Financial Results made in IND AS Format for the quarter and year ended 31.03.2026 along with Audit Report issued by the Statutory Auditor of the Company.
- The Board took note of the compliances under SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 for the quarter and year ended on 31st March, 2026
- No dividend is recommended by the Board of Directors of the Company for the Year ended 31st March, 2026
- The Board has evaluated the performance of Directors and Committee members and expressed their satisfaction thereof
Kindly take the above information on your records.
Thanking you,
Yours faithfully
For KMF Builders and Developers Limited
Priyanka Behl
(Company Secretary & Compliance Officer)
KMF
KMF BUILDERS & DEVELOPERS LTD.
Regd. Office : 508, Golf Manor NAI, Wind Tunnel Road, Murugesh Palya, Bangalore 560017 Tel. : 080-41486142
Corp. Office : 907, 9th Floor, Vikram Tower, Rajendera Place, New Delhi -110008 Tel. : 011-45636075
E-mail: [email protected] Web: www.kmfbuilders.com
CIN: L45203KA1995PLC017422
GSTIN No.: 29AAACK8497L1ZO
Date: 30/05/2026
To
The Manager
The Bombay Stock Exchange of India Ltd.
Phiroz Jeejeebhoy Tower
Dalal Street, Mumbai-400001
Fax No. 022-22723121/3719/2037
Subject: -Declaration with respect to unmodified opinion of the Statutory Auditors on
Audited Financial Results for the financial year ended 31st March 2026
BSE (SCRIP CODE: 531578)
Pursuant to Regulation 33(3)(d) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and as amended till date, we Hereby confirm that M/s. Kalyanasundaram and Associates, Chartered Accountants (Firm Registration Number 005455S), Statutory Auditors of the Company has issued the Audit Report with unmodified opinion on the Audited Financial Statements of the Company for the financial year ended March 31, 2026.
This is for your information and records.
Thanking you,
Yours faithfully
For KMF Builders and Developers Limited
Priyanka Behl
(Company Secretary & Compliance Officer)
KMF
KMF BUILDERS & DEVELOPERS LTD.
Regd. Office : 508, Golf Manor NAI, Wind Tunnel Road, Murugesh Palya, Bangalore 560017 Tel. : 080-41486142
Corp. Office : 907, 9th Floor, Vikram Tower, Rajendera Place, New Delhi -110008 Tel. : 011-45636075
E-mail: [email protected] Web: www.kmfbuilders.com
CIN: L45203KA1995PLC017422
GSTIN No.: 29AAACK8497L1ZO
STATEMENT OF AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31ST MARCH, 2026
(Amount in Rs Lakhs)
| S.No | PARTICULARS | Quarter Ended | Year ended | |||
|---|---|---|---|---|---|---|
| 31.03.2026 | 31.12.2025 | 31.03.2025 | 31.03.2026 | 31.03.2025 | ||
| Audited | Unaudited | Audited | Audited | Audited | ||
| 1 | Income | |||||
| Revenue from operations | 0 | 0 | 279.50 | 0 | 279.50 | |
| Other income | 12.61 | 13.25 | 32.31 | 50.17 | 65.89 | |
| Total income | 12.61 | 13.25 | 311.81 | 50.17 | 345.39 | |
| 2 | Expenses | |||||
| Cost of materials consumed | -6.88 | 0 | 34.16 | 0 | 34.16 | |
| Purchases of stock-in-trade | 0 | 0 | 7.25 | 0 | 26.93 | |
| Changes in inventories of finished goods, work-in-progress and stock-in-trade | 0 | 0 | 196.06 | 0 | 196.06 | |
| Employee benefit expense | 2.47 | 7.38 | 11.52 | 33.62 | 45.67 | |
| Finance costs | 5.50 | 0.59 | 1.19 | 7.07 | 3.17 | |
| Depreciation, depletion and amortisation expense | 2.06 | 3.13 | 2.12 | 9.30 | 8.18 | |
| Other Expenses | 15.30 | 10.16 | 30.53 | 49.69 | 82.75 | |
| Total expenses | 18.45 | 21.27 | 283.23 | 99.68 | 396.92 | |
| 3 | Current tax | 0 | 0 | 0.09 | 0.00 | 0.09 |
| Deferred Tax | -0.55 | 0 | -0.51 | -0.55 | -0.51 | |
| Total Tax Expense | -0.55 | 0 | -0.42 | -0.55 | -0.42 | |
| Total profit (loss) for period | -5.29 | -8.02 | 29.00 | -48.96 | -51.11 | |
| 4 | Other comprehensive income net of taxes | 0 | 0 | 0 | 0 | 0 |
| Total Comprehensive | -5.29 | -8.02 | 29.00 | -48.96 | -51.11 |
KMF
KMF BUILDERS & DEVELOPERS LTD.
Regd. Office : 508, Golf Manor NAL Wind Tunnel Road, Murugesh Palya, Bangalore 560017 Tel. : 080-41486142
Corp. Office : 907, 9th Floor, Vikram Tower, Rajendera Place, New Delhi -110008 Tel. : 011-45636075
E-mail: [email protected] Web: www.kmfbuilders.com
CIN : L45203KA1995PLC017422
GSTIN No.: 29AAACK8497L1ZO
| Income for the period | ||||||
|---|---|---|---|---|---|---|
| 5 | Paid-up equity share capital | 609.10 | 609.10 | 609.10 | 609.10 | 609.10 |
| 6 | Face value of equity share capital | 5 | 5 | 5 | 5 | 5 |
| 7 | Earnings per share | |||||
| Earnings per equity share for continuing operations | ||||||
| Basic earnings (loss) per share from continuing operations | -0.04 | -0.07 | 0.24 | -0.40 | -0.42 | |
| Diluted earnings (loss) per share from continuing operations | 0.04 | -0.07 | 0.24 | -0.40 | -0.42 | |
| 8 | Earnings per equity share for discontinued operations | |||||
| Basic earnings (loss) per share from discontinued operations | 0 | 0 | 0 | 0 | 0 | |
| Diluted earnings (loss) per share from discontinued operations | 0 | 0 | 0 | 0 | 0 | |
FOR KMF Builders and Developers Limited
Date: 30.05.2026
Bangalore
Managing Director
DIN: 06407884
K MF
KMF BUILDERS & DEVELOPERS LTD.
Regd. Office : 508, Golf Manor NAI, Wind Tunnel Road, Murugesh Palya, Bangalore 560017 Tel. : 080-41486142
Corp. Office : 907, 9th Floor, Vikram Tower, Rajendera Place, New Delhi -110008 Tel. : 011-45636075
E-mail: [email protected] Web: www.kmfbuilders.com
CIN : L45203KA1995PLC017422
GSTIN No.: 29AAACK8497L1ZO
| Particulars | As at March 31, 2026 | As at March 31, 2025 |
|---|---|---|
| Assets | ||
| Non Current Assets | ||
| Property Plant and Equipment | 6.29 | 13.18 |
| Right of Use Assets | - | 2.40 |
| Deferred Tax Asset(net) | 5.17 | 4.62 |
| 11.46 | 20.20 | |
| Current Assets | ||
| Inventories | 239.93 | 198.13 |
| Financial Assets | ||
| Trade Receivables | - | - |
| Cash and Cash Equivalents | 181.62 | 394.21 |
| Other Current Financial Assets | 767.75 | 657.26 |
| 1,189.29 | 1,249.60 | |
| Total Assets | 1,200.75 | 1,269.80 |
| Equity and Liabilities | ||
| Equity attributable to owners of the company | 609.10 | 609.10 |
| Other Equity | 559.39 | 608.35 |
| 1,168.49 | 1,217.45 | |
| Non - Current Liabilities | ||
| Financial Liabilities- Borrowings | 10.72 | 27.36 |
| Current Liabilities | ||
| Trade Payables | 1.19 | 1.69 |
| Provisions | 2.95 | 2.70 |
| Other Current Liabilities | 17.41 | 20.61 |
| 21.54 | 25.00 | |
| Total Equity and Liabilities | 1,200.75 | 1,269.80 |
KMF
KMF BUILDERS & DEVELOPERS LTD.
Regd. Office : 508, Golf Manor NAL Wind Tunnel Road, Murugesh Palya, Bangalore 560017 Tel. : 080-41486142
Corp. Office : 907, 9th Floor, Vikram Tower, Rajendera Place, New Delhi -110008 Tel. : 011-45636075
E-mail: [email protected] Web: www.kmfbuilders.com
CIN : L45203KA1995PLC017422
GSTIN No.: 29AAACK8497L1ZO
| Particulars | For the year ended March 31, 2026 | For the year ended March 31, 2025 |
|---|---|---|
| Cash flows from operating activities | ||
| Net Profit/(loss) Before Tax | (49.51) | (51.52) |
| Adjustments for: | ||
| Depreciation | 9.30 | 8.18 |
| Other Income | (50.17) | (65.89) |
| Interest & Finance Charges | 7.07 | 3.17 |
| Operating Profit before Working Capital Charges | (83.31) | (106.06) |
| Adjustments for: | ||
| Decrease/(Increase) in Receivables | ||
| Decrease/(Increase) in Non Current Assets | ||
| Decrease/(Increase) in Inventories | (41.80) | 196.06 |
| Decrease/(Increase) in other current assets | (110.49) | (146.62) |
| Increase/(Decrease) in Payables | (0.50) | (11.25) |
| Increase/(Decrease) in Financial Liabilities | - | 0.00 |
| Increase/(Decrease) in other current liabilities | (3.20) | (2.96) |
| Increase/(Decrease) in short term provisions | 0.25 | (11.22) |
| Cash generated from operations | (155.75) | 24.01 |
| Income Tax Paid | - | 0.09 |
| Comprehensive Income/Expense | ||
| Net Cash Flow from operating activities | (239.06) | (82.14) |
| Cash flows from investing activities | ||
| Interest Income | 50.17 | 65.89 |
| Sale of Fixed Asset | ||
| (Decrease)/Increase other non current assets | ||
| Net Cash used in investing activities | 50.17 | 65.89 |
| Cash flows from financing activities | ||
| Increase/(Decrease) in Long Term Borrowings | (16.63) | (3.26) |
| Interest Paid | (7.07) | (3.17) |
| Net cash used in Financing activities | (23.70) | (6.43) |
| - | ||
| Net change in cash & cash equivalents(A+B+C) | (212.59) | (22.68) |
| Cash and Cash equivalents at beginning of the year | 394.21 | 416.89 |
| Cash and Cash equivalents at the end of the year | 181.62 | 394.21 |
FOR KMF Builders and Developers Limited
Date: 30.05.2026
Bangalore
Managing Director
DIN: 06407884
STATUTORY AUDIT
INTERNAL AUDIT
DIRECT TAXATION
INDIRECT TAXATION
START UP SERVICES
CONSULTING
KALYANASUNDARAM & ASSOCIATES
CHARTERED ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT
To the Members of KMF BUILDERS AND DEVELOPERS LIMITED,
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of KMF BUILDERS AND DEVELOPERS LIMITED (“the Company”), which comprise the Balance Sheet as at March 31, 2026, the Statement of Profit and Loss (including other comprehensive income), the cash flow statement and the statement of change in Equity for the year then ended, and a summary of material accounting policies and other explanatory information (hereinafter referred to as “Financial Statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Indian Accounting Standards (“Ind AS”), of the state of affairs of the Company as at March 31, 2026, its loss including other comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with Standards on Auditing (SA’s) specified u/s 143 (10) of the Act. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the company according to Code of ethics issued by 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 Companies Act, 2013 and the rules made there under and we have fulfilled our other ethical requirements and code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
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. We have determined that there are no key audit matters to communicate in our report.
Emphasis of Matter
We draw attention to Note 7 to the Standalone Financial Statements, which describes that the Company is holding a cash balance of Rs. 16,68,646 as at March 31, 2026. The management has confirmed that the surplus funds are temporarily parked and will be utilized for the Company’s business operations, strategic investments, or other appropriate purposes in due course. Our opinion is not modified in respect of this matter.
We draw attention to Note 23 under Related Party Disclosures to the Standalone Financial Statements, which specifies that the Company has granted loan to RGGC Builders Pvt Ltd, which has a common director with the Company. This transaction has been entered in accordance with the provisions of the Companies Act, 2013 and has been duly approved by the Board of Directors. Our opinion is not modified in respect of this matter.
We draw attention to Note 15 to the Standalone Financial Statements, which indicates that the Company has not generated any revenue from operations during the year ended March 31, 2026. The management has represented that the Company continues to have adequate financial resources and is in the process of pursuing its business objectives and, accordingly, the accompanying Financial Statements have been prepared on a going concern basis. In view of the management’s assessment and based on the information and explanations made available to us, no material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
36, Ground Floor, 5th Cross, 6th Main, KSRTC (E) Layout, JP Nagar - 2nd Phase, Karnataka, Bengaluru - 560 078.
Mob: +91 97403 82534, email: [email protected]
CHENNAI | DELHI (NCR) | BENGALURU | KOLKATA
www.ksaca.com
Other Information
The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Company’s annual report, but does not include the Financial Statements and our auditor’s report thereon.
Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibility of Management and Those Charged with Governance for the Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (“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, changes in equity and cash flows of the Company in accordance with accounting principles generally accepted in India, including Indian Accounting Standards (Ind AS) prescribed 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 implementation and maintenance of accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statement 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.
The Board of Directors are also responsible for overseeing the company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our responsibility is to express an opinion on these Standalone Financial Statements based on our audit.
We have taken into account the provisions of the act, the accounting and auditing standards and matters which are required to be included in the report under the provisions of the act and rules made thereunder.
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:
-
Identify and assess the risks of material misstatement of the Standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
- 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 Ind AS 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 financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the 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) evaluating the effect of any identified misstatements in the Standalone Financial Statements.
We communicate with management 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 management a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2020 ("the Order"), as amended, issued by the Central Government of India in term of sub-section (11) of section 143 of the Act, we give in "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the order, to the extent applicable,
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 appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, and the statement of cash flows and statement of changes in Equity dealt with by this Report are in agreement with the books of accounts.
d) In our opinion, the aforesaid Standalone Financial Statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Rules issued thereunder.
e) On the basis of 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) With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in "Annexure B".
g) With respect to other matters to be included in the Auditor's report in accordance with the requirements of section 197(16) of the Act, as amended, in our opinion, Section 197 read with the Schedule V of the Act is not applicable to Company.
h) With respect to the other matters to be included in the Auditor's report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 in our opinion and to the best of our information and according to the explanation given to us:
-
The Company does not have any pending litigations which would impact its financial position.
-
The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.
-
There were no amounts which required to be transferred to the Investor Education and Protection Fund by the Company.
-
(i) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) 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 person or entity, including foreign entity (“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.
(ii) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (“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.
(iii) Based on the audit procedures 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 (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
-
The Company has not declared or paid dividends during the year, hence no compliance with section 123 of the Companies Act, 2013 is applicable.
-
Based on the examination which included test checks, carried out in accordance with the implementation guidance on reporting on Audit Trail under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 issued by ICAI, we report that the company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, the audit trail has not been tampered with and has been preserved by the Company as per the statutory requirements for record retention.
For Kalyanasundaram and Associates
Chartered Accountants
Firm Reg No. 005455S
K M
RANJITH
Digitally signed
by K M RANJITH
Date: 2026.05.30
13:14:58 +05'30'
K M Ranjith
(Partner)
Membership No: 219645
UDIN: 26219645FLYELT5665
Place: Bengaluru
Date: May 30, 2026
"Annexure A" to the Independent Auditors' Report of even date on Standalone Financial Statements of KMF BUILDERS AND DEVELOPERS LIMITED Referred to in paragraph 1 under the heading 'Reports on Other Legal & regulatory Requirement' of our report of even date to the financial statements of the Company for the year ended March 31, 2026:
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant & Equipment (PPE);
(b) There is no immovable properties and intangible assets in the name of the Company.
(c) The PPE have been physically verified by the management in a phased manner, designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the Company and nature of its business. Pursuant to the program, a portion of the PPE has been physically verified by the management during the year and no material discrepancies between the books records and the physical PPE have been noticed.
(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company does not have any immovable property.
(e) According to information and explanation given to us, the company has not revalued its property, plant and equipment or intangible assets during the year.
(f) There are no proceedings against the Company for holding any benami property under Benami Transactions (Prohibition) Act, 1988 and rules made there under.
ii. (a) The Company is a Construction Company, primarily constructing residential flats and buildings. According to information and explanation given to us, the management of the Company has conducted physical verification of inventory at reasonable intervals and no material discrepancies were noticed on such physical verification during the year.
(b) The Company has not been sanctioned working capital limit in excess of Rupees five crores, in aggregate, from banks or financial institutions on the basis of security of current assets.
iii. According to the information and explanations given to us and based on the audit procedures performed,
(a) The Company has provided loans to entities which has common directorship during the year. The amount of loan given during the year and balance outstanding at the balance sheet date with respect to such loans are as follows:
| Category | Amount given during the year (Rs.) | Balance Outstanding as on March 31, 2026 (Rs.) |
|---|---|---|
| Others | ||
| 1. RGGC Builders Pvt Ltd | 1,31,30,976 | 6,58,09,401 |
| 2. KMF Ltd. | - | 59,10,600 |
| Total | 1,31,30,976 | 7,27,20,001 |
(b) In our opinion, the terms and conditions of the grant of such loans are not prejudicial to the company's interest.
iv. According to the information and explanations given to us and based on our audit procedures, the company has granted loans to its directors during the year, the details of which are provided below. In our opinion, the company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 with respect to the said loans.
| Director Name | Loans granted during the year (Rs.) | Loans recovered during the year (Rs.) | Balance Outstanding as on March 31, 2026 (Rs.) |
|---|---|---|---|
| Gorve Chadha | 11,48,397 | 19,19,233 | 160,000 |
v. The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and provisions of section 73 to 76 or any other relevant provisions of the Act and The Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
vi. As informed to us, the maintenance of Cost Records has not been specified by the Central Government under subsection (1) of Section 148 of the Act, in respect of the activities carried on by the Company.
vii. (a) According to the information and explanations given to us and on the basis of our examination of books of accounts and records, the Company is generally regular in depositing undisputed statutory dues including Income tax, Duty of Customs and any other applicable statutory dues with the appropriate authorities. According to the information and explanation given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2026 for the period of more than six months from the date on which they become payable.
(b) According to the information and explanations given to us, disputed Income Tax dues aggregating to Rs. 36,65,581 are pending before the Income Tax authorities/portal, the details of which are disclosed under Note 28 to the Financial Statements as at March 31, 2026.
viii. There are no transactions that were not recorded in the books of account which were surrendered or disclosed as income during the year in the tax assessments under Income Tax Act, 1961. Hence clause 3 (viii) of the Order is not applicable.
ix. (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender.
(b) According to the information and explanations given to us, the Company has not been declared as wilful defaulter by any bank or financial institution or other lender.
(c) According to the information and explanations given to us, term loans were applied for the purpose for which the same were obtained.
(d) In our opinion and according to the information and explanation given to us, the company has not raised any funds on short term basis which have been utilized for long term purposes. Accordingly, the provisions of Clause 3(ix) of the order are not applicable to the Company.
(e) On an overall examination of the financial 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.
x. (a) On the basis of examination of relevant records and according to the information and explanations given to us, the Company has not raised moneys by way of initial public offer or further public offer including debt instruments during the year. Accordingly, the provisions of Para 3(x)(a) of the Order are not applicable to the Company.
(b) The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3(x)(b) of the order are not applicable to the company.
xi. (a) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have not come across any instance of fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of such case by the Management.
(b) We have not filed any report under sub-section (12) of section 143 of the Companies Act in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.
(c) The Company has not received any whistle-blower complaints during the year.
xii. The Company is not a 'Nidhi Company'; Therefore, Para 3(xiii) of the Companies (Auditor's Report) Order 2020 is not applicable to the Company.
xiii. On the basis of examination of relevant records and according to the information and explanations given to us, all transactions with the related parties are in compliance with sections 177 and 188 of Act, where applicable. The Company has disclosed the details of transactions with related parties in the financial statements as required by the applicable accounting standards.
xiv. In our opinion and based on the information and explanations provided to us, the Company has not appointed an internal auditor during the year as required under Section 138 of the Companies Act, 2013. Accordingly, the Company does not have an internal audit system commensurate with its size and nature of its business. Consequently, internal audit reports were not available for our consideration.
xv. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly, the provisions of section 192 of the Companies act, 2013 are not applicable to the Company.
xvi. On the basis of examination of relevant records and according to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvii) of the Order are not applicable to the Company.
xvii. In our opinion and according to the information and explanation provided to us, the Company has incurred cash losses amounting to Rs. 82,01,793 during the current financial year.
xviii. There has been no resignation of the Statutory auditors of the Company during the year.
xix. On the basis of financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the Standalone financial statements, our knowledge of the Board of Directors and management plans we are of the opinion that no material uncertainty exists as on the date of the audit report that Company is 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.
xx. The Provisions of Corporate Social Responsibility under section 135 of the Companies Act 2013 are not applicable to the Company hence not commented upon.
xxi. The Company does not have any subsidiaries and does not require preparation of consolidated financial statement.
For Kalyanasundaram and Associates
Chartered Accountants
Firm Reg No. 005455S
K M
RANJITH
Digitally signed by K M RANJITH
Date: 2026.05.30
13:15:49 +05'30'
K M Ranjith
(Partner)
Membership No: 219645
UDIN: 26219645FLYELT5665
Place: Bengaluru
Date: May 30, 2026
"Annexure B" to the Auditor's Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013:
We have audited the internal financial controls over financial reporting of KMF BUILDERS AND DEVELOPERS LIMITED (“the Company”) as of March 31, 2026, in conjunction with our audit of the Standalone financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls:
The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial 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 financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the company’s 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 financial information, as required under the Companies Act, 2013.
Auditor’s Responsibility:
Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the guidance note on audit of Internal Financial Control over Financial Reporting (the “Guidance Note”) and the standards on auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of Internal Financial Controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. 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 financial controls over financial reporting were 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 financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, 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 auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting:
A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. It includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding the prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
Inherent limitations of Internal Financial Controls Over Financial Reporting:
Because of the inherent limitations of internal financial controls over financial reporting, 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 financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting 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, an adequate internal financial controls system over financial reporting, and such internal financial controls over financial reporting were operating effectively as of March 31, 2026, based on the internal control over financial 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.
For Kalyanasundaram and Associates
Chartered Accountants
Firm Reg No. 005455S
K M
RANJITH
Digitally signed by
K M RANJITH
Date: 2026.05.30
13:16:18 +05'30'
K M Ranjith
(Partner)
Membership No: 219645
UDIN: 26219645FLYELT5665
Place: Bengaluru
Date: May 30, 2026