Page 111 - KRCL ENglish

Sr. The Key Audit matters How our audit addressed the key
No. audit matter / Auditor's Response

comprise of Fuel Charges recoverable year end on a sample basis.
from Railways.
• Obtained the details of outstanding receivables
These balances are recognised at their and identied the claim wherever there is
anticipated realisable value, based on substantial delay in payment.
allocation of trafc done by Centre For
Railway Information System (CRIS), a • Assessed the recoverability of the unsettled
Central Government entity. The same receivables on a sample basis through our
is worked on the basis of trains of one evaluation of management's assessment with
railway plying through own as well as reference to the credit prole of the Other
other railways track. Railways, their historical payment pattern and
latest correspondence with customers and to
Refer Note No. 13 of standalone consider if any additional provision should be
nancial statement related to Trade made; and
receivables.
• Tested subsequent settlement of trade
Refer Note No. 17 of standalone receivables after the balance sheet date on a
nancial statement related to Inter sample basis, if any.
Railway Financial Adjustment (IRFA)
Receivables. We found the key judgements and assumptions
used by management in the recoverability
Refer Note No. 46 of standalone assessment of trade receivables to be supportable
nancial statement related to Balance based on the available evidence.
Conrmation and reconciliations.
We have drawn attention in Emphasis of Matters on
trade receivables and Other Receivable accounts in
r e s p e c t o f B a l a n c e C o n  r m a t i o n s a n d
reconciliations, which in our judgement, are
fundamental to the users' understanding of the
standalone nancial statements.
3. Evaluation of Direct Tax Positions Our key audit procedures included and were not
The Company has huge carry forward limited to the following:
accumulated business loss and
unabsorbed depreciation under the Obtained details of completed tax assessments and
Income Tax Law. demands for the year ended March 31, 2020 from
management.
Considering the past trend of income,
management is of the view that the We involved our internal experts to assess whether
future taxable prot shall not be the carried forward accumulated losses and
sufcient to recoup/recover the carried unabsorbed depreciation are sufcient to discharge
forward unabsorbed losses & the Income Tax Liability arising out of the current year
unabsorbed depreciation. prots.

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