Page 173 - FBL AR 2019-20

CORPORATE STATUTORY FINANCIAL
OVERVIEW STATEMENTS STATEMENTS

Sr. No. Key Audit Matter Auditor’s Response
1 Recoverability of MAT credit entitlement - (See Notes 2(j) and Our principal audit procedures performed included, among
59C to the consolidated financial statements) others:
Unused tax credits in the form of MAT credits is recognized to 1. Evaluated the design and tested the operating
the extent it is reasonably certain that sufficient taxable profits effectiveness of controls related to the assessment of
will be available in the future against which such MAT credits recoverability of MAT credit entitlement.
can be utilized. 2. Evaluated and discussed with the Parent’s Management
During the year, the Parent Company has reassessed the the appropriateness of assumptions and evidences
recoverability of MAT credit entitlement and recognized MAT for the underlying profitability forecasts. Assessed the
credit of H5,072.14 Lakhs (presented within deferred tax asset). assumptions used in the profitability forecasts along with
the Parent Company’s tax position including the timing
The recoverability of such MAT credit entitlement is considered of future taxable profits. We also performed sensitivity
as a key audit matter as it involves significant management analysis on the key assumptions in respect of recoverability
judgement including accounting estimates relating to of MAT credit entitlement.
profitability forecasts, availability of sufficient taxable income
in the future and recoverability within the specified period of 3. Assessed the adequacy of disclosures made in the
time. consolidated financial statements of the Group.

Information Other than the Financial Statements the Act for safeguarding the assets of the Group and its associate
and Auditor’s Report Thereon and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies;
• The Parent’s Board of Directors is responsible for the other making judgements and estimates that are reasonable and prudent;
information. The other information comprises the information and design, implementation and maintenance of adequate internal
included in the Annual report, for example, management financial controls, that were operating effectively for ensuring the
discussion & analysis, board’s report, etc. but does not include accuracy and completeness of the accounting records, relevant to
the consolidated financial statements, standalone financial the preparation and presentation of the financial statements that
statements and our auditor’s report thereon. give a true and fair view and are free from material misstatement,
• Our opinion on the consolidated financial statements does not whether due to fraud or error, which have been used for the
cover the other information and we do not express any form of purpose of preparation of the consolidated financial statements by
assurance conclusion thereon. the Directors of the Parent, as aforesaid.
• In connection with our audit of the consolidated financial In preparing the consolidated financial statements, the respective
statements, our responsibility is to read the other information, Board of Directors of the companies included in the Group and of its
compare with the financial statements of the subsidiaries associate are responsible for assessing the ability of the respective
audited by the other auditors, to the extent it relates to these entities to continue as a going concern, disclosing, as applicable,
entities and, in doing so, place reliance on the work of the matters related to going concern and using the going concern
other auditors and consider whether the other information basis of accounting unless the respective Board of Directors either
is materially inconsistent with the consolidated financial intends to liquidate their respective entities or to cease operations,
statements or our knowledge obtained during the course or has no realistic alternative but to do so.
of our audit or otherwise appears to be materially misstated.
Other information so far as it relates to the subsidiaries is traced The respective Board of Directors of the companies included in the
from their financial statements audited by the other auditors. Group and of its associate are also responsible for overseeing the
financial reporting process of the Group and of its associate.
• If based on the work we have performed, we conclude that
there is a material misstatement of this other information, we Auditor’s Responsibility for the Audit of the
are required to report that fact. We have nothing to report in
this regard. Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether
Management’s Responsibility for the the consolidated financial statements as a whole are free from
Consolidated Financial Statements material misstatement, whether due to fraud or error and to issue

The Parent’s Company’s Board of Directors is responsible for an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance but is not a guarantee that an audit
the matters stated in section 134(5) of the Act with respect to conducted in accordance with SAs will always detect a material
the preparation of these consolidated financial statements that misstatement when it exists. Misstatements can arise from fraud or
give a true and fair view of the consolidated financial position, error and are considered material if, individually or in the aggregate,
consolidated financial performance including other comprehensive they could reasonably be expected to influence the economic
income, consolidated cash flows and consolidated changes in decisions of users taken on the basis of these consolidated financial
equity of the Group including its Associate in accordance with the statements.
Ind AS and other accounting principles generally accepted in India.
The respective Board of Directors of the companies included in As part of an audit in accordance with SAs, we exercise professional
the Group and of its associate are responsible for maintenance of judgment and maintain professional skepticism throughout the
adequate accounting records in accordance with the provisions of audit. We also:

171