Page 113 - KRCL ENglish

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

(3)Fuel charges: On GTKm (Gross Ton Tested the calculations of claims on account of fuel
Kilometer) basis as per the calculation with GTKM basis i.e. the gross ton kilometre run of
of run mileage. the train belonging to Company which run on the
track of other Railways during the month.
Note No. 26 of the standalone nancial
statements for Trade Payables • Tested the accuracy of aging of trade payable at
year end on a sample basis.

• Obtained the details of outstanding payable and
identied the claim wherever there is substantial
delay in payment.

• Assessed the liability of the old overdue unpaid
claims on a sample basis through our evaluation
of management's assessment with reference to
the credit policy of other railways, historical
payment pattern to customers and latest
correspondence / reconciliation with the
customers and to consider if any extra provision
need to be reversed; and

• Tested subsequent settlement of trade payables
after the balance sheet date on a sample basis, if
any.

5. Disputed Statutory Dues Our audit procedures included and were not
The Corporation has received a limited to the following:
Demand of Rs.704.40 crore and
applicable interest thereon, from the Our audit procedures include the following
Service Tax department for the period substantive procedures:
2009-10 to 2013-14. The corporation is
engaged in providing services of • Obtained understanding of Service Tax Demand
Transportation of passenger and on providing Business Support Services and
goods by Rail but the service tax updated status of the dispute;
department has identied it as another
business transaction between KRCL • We along with our internal tax experts –
and Indian Railways stating that KRCL a) Read and analysed select key correspondences,
is providing business support services external legal opinions / consultations by
to Indian railways by making available management in this regards;
its rail infrastructure and manpower to
Indian Railways. b) Discussed with appropriate senior management
and evaluated management's underlying key

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