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Key audit matters
Auditor's responses
Contingent liabilities and provisions
The Company has received certain
claims from the government
authorities and customers, which
are disputed. These involve a high
degree of judgement to determine
the possible outcomes, and estimates
relating to the timing and the amount
ūlj ūƭƥǜūDžƙ ūlj ƑĚƙūƭƑČĚƙ ĚŞċūēNjĿŠij
ĚČūŠūŞĿČ ċĚŠĚǛƥƙȦ
The audit procedures included but were not limited to:
- Obtaining a detailed understanding processes and controls of the Management
with respect to claims or disputes.
- Evaluation of the design of the controls relating to compilation of the claims;
assessment of probability of outcome, estimates of the timing and the amount
ūlj ƥĺĚ ūƭƥǜūDžƙȡ îŠē îƎƎƑūƎƑĿîƥĚ ƑĚƎūƑƥĿŠij ċNj ƥĺĚ qîŠîijĚŞĚŠƥ îŠē ƥĚƙƥĿŠij
implementation and operating effectiveness of the key controls.
- Performing following procedures on samples selected:
ȟ ÀŠēĚƑƙƥîŠēĿŠij ƥĺĚŞîƥƥĚƑƙ ċNj ƑĚîēĿŠij ƥĺĚ ČūƑƑĚƙƎūŠēĚŠČĚƙ ʈ ČūŞŞƭŠĿČîƥĿūŠƙȡ
minutes of the Audit Committee and | or the Board meetings and discussions
with the appropriate Management personnel.
ȟ ¡ĚƑljūƑŞĿŠij ČūƑƑūċūƑîƥĿDŽĚ ĿŠƐƭĿƑĿĚƙ DžĿƥĺ îƎƎƑūƎƑĿîƥĚ ŕĚDŽĚŕ ūlj ƥĺĚ qîŠîijĚŞĚŠƥ
personnel including status update, expectation of outcomes with the basis,
and the future course of action contemplated by the Company, and perusing
legal opinions, if any, obtained by the Management.
ȟ ~ċƥîĿŠĿŠij ēĿƑĚČƥ ČūŠǛƑŞîƥĿūŠ ljƑūŞ ƥĺĚ ŕĚijîŕ îƥƥūƑŠĚNjƙ ūlj ƥĺĚ ūŞƎîŠNj îŠē
considering their opinions | probability assessment of the outcomes.
ȟ /DŽîŕƭîƥĿŠij ƥĺĚ ĚDŽĿēĚŠČĚƙ ƙƭƎƎūƑƥĿŠij ƥĺĚ ŏƭēijĚŞĚŠƥ ūlj ƥĺĚ qîŠîijĚŞĚŠƥ îċūƭƥ
possible outcomes and the reasonableness of the estimates. We involved our
internal experts for technical guidance and evaluation of the assessments of
the Management, as appropriate.
- Evaluating appropriateness of adequate disclosures in accordance with the
applicable accounting standards.
Adoption of Ind AS 115, Revenue
from contracts with customers (new
revenue accounting standard)
The Company sells products to the
customers under different types of
contractual terms. The application
of the new revenue accounting
standard involved assessing if distinct
performance obligations exist under
each type of the contracts, and
ensuring appropriate and adequate
disclosures in the Standalone
Financial Statements.
The audit procedures included but were not limited to:
- Assessment of the processes of the Company for adoption of the new Accounting
Standards.
- Selecting a sample from each type of the contracts with the customers, and
ƥĚƙƥĿŠij ƥĺĚ ūƎĚƑîƥĿŠij ĚljljĚČƥĿDŽĚŠĚƙƙ ūlj ƥĺĚ ĿŠƥĚƑŠîŕ ČūŠƥƑūŕȡ ƑĚŕîƥĿŠij ƥū ĿēĚŠƥĿǛČîƥĿūŠ
of the distinct performance obligations and determination of transaction price.
Carrying out a combination of procedures involving enquiry and observation, re-
performance and inspection of evidence in respect of operation of these controls.
- Testing the relevant controls including access and change management
controls of information technology systems, which are relevant for appropriate
measurement and presentation of revenue and related account balances.
- Performing following procedures on the samples selected:
ȟ ¤ĚîēĿŠijȡ îŠîŕNjƙĿŠij îŠē ĿēĚŠƥĿljNjĿŠij ƥĺĚ ēĿƙƥĿŠČƥ ƎĚƑljūƑŞîŠČĚ ūċŕĿijîƥĿūŠƙ ĿŠ
these contracts.
ȟ ūŞƎîƑĿŠij ƥĺĚƙĚ ƎĚƑljūƑŞîŠČĚ ūċŕĿijîƥĿūŠƙ DžĿƥĺ ƥĺîƥ ĿēĚŠƥĿǛĚē îŠē ƑĚČūƑēĚē
by the Company.
ȟ ūŠƙĿēĚƑĿŠij ƥĺĚ ƥĚƑŞƙ ūlj ƥĺĚ ČūŠƥƑîČƥƙ ƥū ēĚƥĚƑŞĿŠĚ ƥĺĚ ƥƑîŠƙîČƥĿūŠ ƎƑĿČĚ îŠē
Ŀƥƙ îŕŕūČîƥĿūŠ ƥū ƥĺĚ ĿēĚŠƥĿǛĚē ƎĚƑljūƑŞîŠČĚ ūċŕĿijîƥĿūŠƙȦ
ȟ ¹ĚƙƥĿŠij ƙîŞƎŕĚ ūlj ƑĚDŽĚŠƭĚƙ DžĿƥĺ ƥĺĚ ƎĚƑljūƑŞîŠČĚ ūċŕĿijîƥĿūŠƙ ƙƎĚČĿǛĚē ĿŠ ƥĺĚ
underlying contracts.
ȟ ¡ĚƑljūƑŞĿŠij îŠîŕNjƥĿČîŕ ƎƑūČĚēƭƑĚƙ ljūƑ ƑĚîƙūŠîċŕĚŠĚƙƙ ūlj ƑĚDŽĚŠƭĚƙ ēĿƙČŕūƙĚē
by segments.
- Evaluating the appropriateness of adequate disclosures in accordance with the
standards.
Corporate Overview 01-22
Statutory Reports 23-105
Financial Statements 107-250
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Atul Ltd | Annual Report 2018-19