Page 244 - KRCL ENglish

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

(ROU) asset and a lease liability arising b) Evaluated computation of lease liabilities and
from a lease on the balance sheet. challenged the key estimates such as discount
rates and lease terms.
The lease liabilities are initially
measured by discounting future lease • Assessed and tested the presentation and
payments during the lease term as per disclosure relating to Ind AS 116 including
the contract/ arrangement. disclosures relating to the transitions.

Adoption of the standard involves
signicant judgements and estimates
including, determination of the
discount rates and the lease term.

Additionally, the standard mandates
detailed disclosures in respect of
transition.

Refer Note 2(G) and Note 44 to the
consolidated nancial statements.

2 Recoverability and assessment of Our key audit procedures included and were not
Trade Receivables, Other Inter limited to the following:
Railway Financial Adjustment (IRFA)
Receivables We have performed the following procedures in
relation to the recoverability of trade receivables and
Trade Receivables of the company Inter Railway Financial Adjustment (IRFA)
comprise mainly receivables in relation Receivables:
to the Trafc Earning Receivable.
Ÿ Tested the calculations of claims on account of
Other Inter Railway Financial apportioned Trafc Earnings on sample basis.
Adjustment (IRFA) Receivables
comprise of Fuel Charges recoverable Ÿ Tested the accuracy of aging of trade receivables
from Railways. and Inter Railway Financial Adjustment (IRFA) at
year end on a sample basis.
These balances are recognised at their
anticipated realisable value, based on Ÿ Obtained the details of outstanding receivables
allocation of trafc done by Centre For and identied the claim wherever there is
Railway Information System (CRIS), a substantial delay in payment.
Central Government entity. The same
is worked on the basis of trains of one Ÿ Assessed the recoverability of the unsettled
railway plying through own as well as receivables on a sample basis through our
other railways track.

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