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Shaping the future of software driven business
Consolidated Financials •
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Additionally, new revenue accounting standard contains
disclosures which involves collation of information in respect of
disaggregated revenue and periods over which the remaining
performance obligations will be satisfied subsequent to the
balance sheet date.
Refer Note 4(k) to the Consolidated Financial Statements.
• In respect of samples relating to fixed price contracts, progress
towards satisfaction of performance obligation used to compute
recorded revenue was verified with actual and estimated efforts
from the time recording and budgeting systems. We also tested the
access and change management controls relating to these systems.
• Performed analytical procedures for reasonableness of revenues
disclosed by type and service offerings.
• We reviewed the collation of information and the logic of the report
generated from the revenue tracking system used to prepare
the disclosure relating to the periods over which the remaining
performance obligations will be satisfied subsequent to the balance
sheet date.
• Samples in respect of revenue recorded for time and material
contracts were tested using a combination of approved time sheets
including customer acceptances, subsequent invoicing and historical
trend of collections and disputes.
2
Provision towards fixed deposits with IL&FS Group:
The Group had unsecured deposits of
`
430 million with IL&FS
Group as on balance sheet date. Due to liquidity constraints
faced by IL&FS and defaults in repayment till 31 March 2019,
the management has provided an expected credit loss (ECL) of
Rs. 182.50 million as of 31 March 2019. Estimation of ECL, in the
present scenario, involves significant amount of judgement.
Refer to Note 46 to the Consolidated Financial Statements.
Principal Audit Procedures
• Evaluated the design and implementation of controls over
accounting of critical accounting estimate which included testing of
provision of impairment for deposit with IL&FS Group.
• We reviewed the basis adopted by the management in estimating
the ECL and past as well as forward looking information available
around the matter, against the requirements of applicable Indian
Accounting Standards.
3
Accounting estimate - Impairment of investments in
subsidiaries:
Provision towards impairment of investments in the subsidiaries
requires significant amount of judgement where the individual
entity’s net-worth is eroded or there are substantial losses.
Principal Audit Procedures
• We have tested and evaluated the company’s control for analysis of
impairment of investment in subsidiaries.
• We have assessed subsidiary company’s business plans and future
expected cash flows. Our testing included review of assumptions
used in estimating future expected cash flows and overall
appropriateness of the underlying calculations vis-à-vis past
performance trends.
Information other than the Consolidated Financial Statements and Auditor’s Report thereon
The Parent’s Board of Directors is responsible for the preparation of the other information. The other information comprises the
information included in the Report of the Directors, Report on Corporate Governance, Business Responsibility Report, Management
Discussion and Analysis, and Report on Risk Management (collectively referred as “other information”) but does not include the
Financial Statements and our auditor’s report thereon. Other information is expected to be made available to us after the date of this
auditor’s report.
Management’s Responsibility for the Consolidated Financial Statements
The Parent Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation
of these Consolidated Financial Statements that give a true and fair view of the consolidated financial position, consolidated financial
performance including other comprehensive income, consolidated cash flows and consolidated changes in equity of the Group including
its associate in accordance with the Ind AS and other accounting principles generally accepted in India.
The respective Board of Directors of the companies included in the Group and of its associate are responsible for maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group, its associate
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 design, implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation
and presentation of the Consolidated Financial Statements that give a true and fair view and are free from material misstatement,
whether due to fraud or error, which have been used for the purpose of preparation of the Consolidated Financial Statements by the
Directors of the Parent Company, as aforesaid.
In preparing the Consolidated Financial Statements, the respective Board of Directors of the companies included in the Group and of
its associate are responsible for assessing the ability of the Group and of its associate to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting unless the management either intends to
liquidate or cease operations, or has no realistic alternative but to do so.