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Demerger of Consumer Products Business (refer note 36 to the Consolidated Financial Statements)
The Key Audit Matter How the matter was addressed in our audit
the group has demerged its Consumer products Business our audit procedures included:
(CpB) division to tata Consumer products limited (“tCpl”) (‘the • obtaining and evaluating the Scheme for identification of
demerger’) pursuant to a Scheme of arrangement (‘the scheme’). the assets and liabilities to be transferred;
the Scheme of arrangement was approved by the national • evaluating the accounting treatment of the demerger in line
Company law tribunal (nClt) with an appointed date of april 1, with the applicable accounting standards and applicable tax
2019.
and other statutes;
the demerger of the CpB division has significant measurement • assessing and testing the accounting entries recorded
and disclosure impacts on the group’s Consolidated Financial in the books by the group in respect of the demerger for
Statements. this involves identification of assets and liabilities to compliance with the accounting treatment assessed above;
be transferred which is subject to provisions of the Scheme and is
accordingly considered a key audit matter. • assessing and testing the adequacy of the group’s disclosures
in respect of the demerger for compliance with applicable
accounting standards.

Information Other than the Consolidated Financial under section 133 of the act. the respective Management and
Statements and Auditors’ Report Thereon” Board of directors of the companies included in the group and
the Holding Company’s management and Board of directors of its joint ventures are responsible for maintenance of adequate
are responsible for the other information. the other information accounting records in accordance with the provisions of the act
comprises the information included in the Holding Company’s for safeguarding the assets of each company. and for preventing
annual report, but does not include the Consolidated Financial and detecting frauds and other irregularities; the selection and
Statements and our auditors’ report thereon. application of appropriate accounting policies; making judgments

our opinion on the Consolidated Financial Statements does not and estimates that are reasonable and prudent; and the design,
cover the other information and we do not express any form of implementation and maintenance of adequate internal financial
assurance conclusion thereon. controls, that were operating effectively for ensuring accuracy
and completeness of the accounting records, relevant to the
In connection with our audit of the Consolidated Financial preparation and presentation of the Consolidated Financial
Statements, our responsibility is to read the other information and, Statements that give a true and fair view and are free from material
in doing so, consider whether the other information is materially
inconsistent with the Consolidated Financial Statements or our misstatement, whether due to fraud or error, which have been
knowledge obtained in the audit or otherwise appears to be used for the purpose of preparation of the Consolidated Financial
materially misstated. If, based on the work we have performed Statements by the Management and directors of the Holding
and based on the work done/audit reports of other auditors, Company, as aforesaid.
we conclude that there is a material misstatement of this other In preparing the Consolidated Financial Statements, the respective
information, we are required to report that fact. We have nothing Management and Board of directors of the companies included in
to report in this regard. the group and of its joint ventures are responsible for assessing the
ability of each company to continue as a going concern, disclosing,
Management’s and Board of Directors’ as applicable, matters related to going concern and using the
Responsibilities for the Consolidated Financial
Statements going concern basis of accounting unless the respective Board
of directors either intends to liquidate the Company or to cease
the Holding Company’s Management and Board of directors operations, or has no realistic alternative but to do so.
are responsible for the preparation and presentation of these
Consolidated Financial Statements in term of the requirements the respective Board of directors of the companies included in
the group and its joint ventures is responsible for overseeing the
of the act that give a true and fair view of the consolidated state financial reporting process of each company.
of affairs, consolidated profit and other comprehensive income,
Consolidated Statement of Changes in equity and Consolidated Auditor’s Responsibilities for the Audit of the
Statement of Cash Flows of the group including its joint ventures in Consolidated Financial Statements
accordance with the accounting principles generally accepted in our objectives are to obtain reasonable assurance about whether
India, including the Indian accounting Standards (Ind aS) specified the Consolidated Financial Statements as a whole are free from

238 I Integrated annual report 2019-20