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Litigations and claims (refer notes 2.3.4, 2.22, 19 and 45 to the Standalone Financial Statements)
The Key Audit Matter How the matter was addressed in our audit
The Company operates in various States within India, exposing Our audit procedures included:
it to a variety of different Central and State laws, regulations and
interpretations thereof. The provisions and contingent liabilities • Obtaining an understanding of actual and potential
relate to ongoing litigations and claims with various authorities. outstanding litigations and claims against the Company
Litigations and claims may arise from direct and indirect tax from the Company’s in-house Legal Counsel and other senior
proceedings, legal proceedings, including regulatory and other personnel of the Company and assessing their responses;
government/department proceedings, as well as investigations • Assessing status of the litigations and claims based on
by authorities and commercial claims.
correspondence between the Company and the various
Resolution of litigations and claims proceedings may span over tax/legal authorities and legal opinions obtained by the
multiple years beyond March 31, 2020 due to the complexity Company;
and magnitude of the legal matters involved and may involve • Testing completeness of litigations and claims recorded by
protracted negotiation or litigation.
verifying the Company’s legal expenses and the minutes of
The determination of a provision or contingent liability requires the board meetings;
significant judgement by the Company because of the inherent • Assessing and challenging the Company’s estimate of the
complexity in estimating future costs. The amount recognised as possible outcome of litigations and claims. This is based on
a provision is the best estimate of the possible expenditure. The applicable tax laws and legal precedence by involving our
provisions and contingent liabilities are subject to changes in the tax specialists in taxation related matters and internal legal
outcomes of litigations and claims over time as new facts emerge counsel;
as each legal case progresses and positions taken by the Company.
• Evaluating judgements made by the Company by comparing
There is an inherent complexity and magnitude of potential the estimates of prior year to the actual outcome;
exposures is significant across the Company. Significant judgment
is necessary to estimate the likelihood, timing and amount of the • Assessing and testing the adequacy and completeness of the
cash outflows, interpretations of the legal aspects, legislations and Company’s disclosures in respect of litigations and claims.
judgements previously made by the authorities. Accordingly, this
is identified as a key audit matter.

Information Other than the Standalone Financial Management’s and Board of Directors’
Statements and Auditors’ Report Thereon Responsibility for the Standalone Financial
Statements
The Company’s management and Board of Directors are
responsible for the other information. The other information The Company’s Management and Board of Directors are
comprises the information included in the Company’s annual responsible for the matters stated in Section 134(5) of the Act
report, but does not include the Financial Statements and our with respect to the preparation of these Standalone Financial
auditors’ report thereon. Statements that give a true and fair view of the state of affairs,
profit/loss and other comprehensive income, changes in
Our opinion on the Standalone Financial Statements does not equity and cash flows of the Company in accordance with the
cover the other information and we do not express any form of accounting principles generally accepted in India, including the
assurance conclusion thereon. Indian Accounting Standards (Ind AS) specified under Section
133 of the Act. This responsibility also includes maintenance of
In connection with our audit of the Standalone Financial Statements,
our responsibility is to read the other information and, in doing so, adequate accounting records in accordance with the provisions
consider whether the other information is materially inconsistent of the Act for safeguarding of the assets of the Company and for
with the Standalone Financial Statements or our knowledge preventing and detecting frauds and other irregularities; selection
obtained in the audit or otherwise appears to be materially and application of appropriate accounting policies; making
misstated. If, based on the work we have performed, we conclude judgments and estimates that are reasonable and prudent; and
that there is a material misstatement of this other information, we design, implementation and maintenance of adequate internal
are required to report that fact. We have nothing to report in this financial controls that were operating effectively for ensuring the
regard. accuracy and completeness of the accounting records, relevant

166 I INTEGRATED ANNuAL REPORT 2019-20