Page 112 - KRCL ENglish

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

In view of this, deferred tax asset We have analysed the management's underlying
related to carried forward unabsorbed assumptions in estimating the future taxable prot
losses & unabsorbed depreciation considering the past trend of income.
have not been created by the
company. Further Provision for Income We have analysed the management's view in
Tax is not created on taxable income estimating that huge carry forward business losses
earned during current nancial year and unabsorbed depreciation shall not be recovered
due to availability of setoff of losses / considering the past trend and consequently non-
unabsorbed depreciated. creation of deferred tax asset on accumulated losses
and unabsorbed depreciation.
Assessment of Income Tax for the
Financial Year 2007-08 to 2014-15 are We have evaluated the uncertainty of tax liability
pending at various level of Appellate which may arise due to Income Tax assessment in
Authority. However, the Management respect of the Financial Year 2007-08 to 2014-15 and
is of the opinion that, considering the compared the same with carried forward
outcome of past Assessment and accumulated losses and unabsorbed depreciation in
existing carry forward Un-absorbed order to ensure whether there will be additional
Depreciation Loss, there will not be any impact on the nancials of the company on account
impact on nancials of the company. of Income Tax Assessments.

Refer Note No. 47 to the Standalone We have drawn attention in Emphasis of Matters on
Financial Statements for Taxes on Non-creation of Income Tax Provision and Deferred
Income. Tax Asset considering the huge accumulated losses
and which in our judgement, are fundamental to the
Refer Note No. 40 to the Standalone users' understanding of the standalone nancial
Financial Statements for Contingent statements.
Liability on account of pending
assessments.

4. Inter Railway Bill Passing System Our key audit procedures included and were not
and Reconciliations limited to the following:
We have performed the following procedures in
Trade payable of the Company mainly relation to the payment / settlement of trade
comprises of the claim of various payables:
Railways on account of Loco Hire
Charges, Wagon Hire Charges, Fuel • Tested the calculations of claims on account of
charges. Loco Hire charges with number of hours operated
in the month in the territory of Company.
The claims are recognised on the
following basis: Tested the calculations of claims on account of
(1)Loco Hire Charges: Per Hour basis Wagon Hire charges with number of days operated
(2)Wagon Hire Charges:Per Day basis, in the month in the territory of Company.

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