263 / 327
Shaping the future of software driven business
Unconsolidated Financials •
263
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 3(h) to the Standalone Financial Statements.
• 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.
• 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.
2 Provision towards fixed deposits with IL&FS Group:
The Group had unsecured deposits of Rs 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 44 to the Standalone 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.
Information other than the Financial Statements and Auditor’s Report thereon
The Company’s Board of Directors is responsible for the preparation of the other information. The other information comprises
the information included in the Overview of Financial Performance, 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 Financial Statements
The Company’s Board of Directors is responsible for thematters stated in section 134(5) of the Act with respect to the preparation
of these Financial Statements that give a true and fair view of the financial position, financial performance including other
comprehensive income, cash flows and changes in equity of the Company in accordance with the Ind AS and other accounting
principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act
for safeguarding 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 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 Financial Statements
that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the 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.
Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the 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