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Key audit matters
Auditor’s responses
Contingent liabilities and provisions
Certain claims received from
the government authorities and
customers are under dispute. These
ĿŠDŽūŕDŽĚ ĺĿijĺ ēĚijƑĚĚ ūlj ŏƭēijĚŞĚŠƥ ƥū
determine the possible outcomes and
estimates relating to the timing and
ƥĺĚ îŞūƭŠƥ ūlj ūƭƥǜūDžƙ ūlj ƑĚƙūƭƑČĚƙ
ĚŞċūēNjĿŠij ĚČūŠūŞĿČ ċĚŠĚǛƥƙȦ
The audit procedures included but were not limited to:
- Obtaining a detailed understanding of 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 Committees and | or the Board meetings and discussions
with the appropriate Management personnel.
ȟ ¡ĚƑljūƑŞĿŠij ČūƑƑūċūƑîƥĿDŽĚ ĿŠƐƭĿƑĿĚƙ DžĿƥĺ îƎƎƑūƎƑĿîƥĚ ŕĚDŽĚŕ ūlj ƥĺĚ qîŠîijĚŞĚŠƥ
ƎĚƑƙūŠŠĚŕ ĿŠČŕƭēĿŠij ƙƥîƥƭƙ ƭƎēîƥĚȡ ĚNJƎĚČƥîƥĿūŠ ūlj ūƭƥČūŞĚƙ DžĿƥĺ ƥĺĚ ċîƙĿƙ
and the future course of action as contemplated and perusing legal opinions,
if any, obtained by the Management.
ȟ ~ċƥîĿŠĿŠij ēĿƑĚČƥ ČūŠǛƑŞîƥĿūŠ ljƑūŞ ƥĺĚ ŕĚijîŕ îƥƥūƑŠĚNjƙ ūlj ƥĺĚ HƑūƭƎ îŠē
considering their opinions | probability assessment of the outcomes.
ȟ /DŽîŕƭîƥĿŠij ƥĺĚ ĚDŽĿēĚŠČĚƙ ƙƭƎƎūƑƥĿŠij ƥĺĚ ŏƭēijĚŞĚŠƥ ūlj ƥĺĚqîŠîijĚŞĚŠƥ îċūƭƥ
possible outcomes and the reasonableness of the estimates. We involved our
ĿŠƥĚƑŠîŕ ĚNJƎĚƑƥƙ ljūƑ ƥĚČĺŠĿČîŕ ijƭĿēîŠČĚ îŠē ĚDŽîŕƭîƥĿūŠ ūlj îƙƙĚƙƙŞĚŠƥƙ ūlj ƥĺĚ
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 products are sold to the
customers under different types of
contractual terms. The application
of the new revenue accounting
standard involved assessing if distinct
ƎĚƑljūƑŞîŠČĚ ūċŕĿijîƥĿūŠƙ ĚNJĿƙƥ ƭŠēĚƑ
each type of the contracts and
ensuring appropriate and adequate
disclosures in the Consolidated
Financial Statements.
The audit procedures included but were not limited to:
- Assessment of the processes of the Management for adoption of the new
accounting standard.
- 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 of Information Technology (IT)
systems and changemanagement controls relevant for appropriatemeasurement
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 ĿēĚŠƥĿljĿĚē îŠē ƑĚČūƑēĚē
by the Management.
ȟ ūŠƙĿēĚƑĿŠij ƥĺĚ ƥĚƑŞƙ ūlj ƥĺĚ ČūŠƥƑîČƥƙ ƥū ēĚƥĚƑŞĿŠĚ ƥĺĚ ƥƑîŠƙîČƥĿūŠ ƎƑĿČĚ îŠē
its allocation to the identified performance obligations.
ȟ ¹ĚƙƥĿŠij ƙîŞƎŕĚ ūlj ƑĚDŽĚŠƭĚƙ DžĿƥĺ ƥĺĚ ƎĚƑljūƑŞîŠČĚ ūċŕĿijîƥĿūŠƙ ƙƎĚČĿljĿĚē 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
standard.
Consolidated
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Independent Auditor’s Report
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