Page 114 - KRCL ENglish

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

KRCL has challenged the order as assumptions of not creating provisions in this
unconstitutional and against service regards;
tax law and a matter of double taxation.
c) Assessed management's estimate of the possible
Refer Note No 40 to the Standalone outcome of the disputed cases.
Financial Statement regarding
contingent liabilities.

6. Impact of COVID-19 on the Comp- Our audit procedures included and were not
any's operations and standalone limited to the following:
nancial statement.
On 11 March 2020, the World Health - Obtained and reviewed the management impact
Organisation declared the Novel assessment on account of reduction in revenue
Coronavirus (COVID-19) outbreak to during current nancial year, including judgement
be a pandemic. and estimates applied in determining the areas of
impact.
The outbreak of Corona virus (COVID- - Assessed the determination of impact on trafc
19) pandemic in India has resulted in a earnings on account of travel restrictions due to
nationwide lock down and travel nationwide lockdown consequent to COVID-19.
restriction by the Government of India
which has signicantly impacted - Assessed the determination of reduction in direct
business operation of the Corporation. operating expenses during lockdown period
consequent to COVID-19.
We have identied the impact of, and - Assessment of how the management has factored
uncertainty related to the COVID-19 the deterioration in the overall economic
pandemic as a key event and environment arising from COVID-19.
consideration for Company's - Assessed management's cost reduction
Operations on account of: measures taken by the company in order to
reduce the impact COVID-19.
- Short and long term effect on
company's business operations and - Assessed and evaluated the possible recovery in
its consequential rst order and other operating segment apart from open line
cascading negative impact on operations i.e. Project revenue.
revenue; - Assessed and evaluated expenditure incurred
towards preventive health measures as an
- impact of the pandemic on the additional cost for prevention of COVID-19.
Revenue and Expenses; and
- Performed subsequent event procedures upto the
date of the audit report
- Assessed and tested the disclosure relating to
COVID-19 Impact on nancial position for FY 19-
20 and for the period April'20 to 25th July'20.

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