Page 256 - Tata_Chemicals_yearly-reports-2021-22

Integrated Annual Report 2021-22

Employee benefits provision (refer notes 2.20, 21 and 40 to the Consolidated Financial Statements)
The Key Audit Matter How the matter was addressed in our audit
The valuation of employee benefits by the Group’s UK and US Our audit procedures included:
subsidiaries is performed annually with the assistance of external • Involving actuarial specialists to assist us in evaluating all
independent actuaries. pension plans;
This involves significant estimates and judgment. There are • Assessing and testing the valuation methodology used by
inherent uncertainties involved in estimating salary increase, the actuary;
mortality rate, return on plan assets, discount rate and changes in • Evaluating the competency of the experts appointed by the
provisions of pension laws.
Group;
These estimates of the Group and our related skeptical judgements • Challenging assumptions used by the Group based on
are considered to be significant to our overall audit strategy and externally derived data in relation to key inputs such as
planning. Accordingly, we have considered employee benefits inflationary expectations, discount rates and mortality rates
provision for certain components of the Group as a key audit with the assistance of our actuarial specialists.
matter.
• Identifying any changes in actuarial assumptions resulting
into actuarial gain or loss;
• Performing sensitivity analysis on the assumptions with the
assistance of our actuarial specialists.
• Assessing and testing the adequacy of disclosures of key
assumptions and sensitivities in respect of the employee
benefits provision.
Information Other than the Consolidated of the Act that give a true and fair view of the Consolidated state
Financial Statements and Auditor’s Report of affairs, Consolidated Profit and Other Comprehensive Income,
Thereon Consolidated Statement of Changes in Equity and Consolidated

The Holding Company’s Management and Board of Directors Cash Flows of the Group including its associate and joint ventures
are responsible for the other information. The other information in accordance with the accounting principles generally accepted in
comprises the information included in the Holding Company’s India, including the Indian Accounting Standards (Ind AS) specified
annual report, but does not include the Consolidated Financial under Section 133 of the Act. The respective Management and
Statements and our auditor’s report thereon. Board of Directors of the companies included in the Group and of
its associate and joint ventures are responsible for maintenance of
Our opinion on the Consolidated Financial Statements does not adequate accounting records in accordance with the provisions
cover the other information and we do not express any form of of the Act for safeguarding the assets of each company and for
assurance conclusion thereon.
preventing and detecting frauds and other irregularities; the
In connection with our audit of the Consolidated Financial selection and application of appropriate accounting policies;
Statements, our responsibility is to read the other information and, making judgments and estimates that are reasonable and prudent;
in doing so, consider whether the other information is materially and the design, implementation and maintenance of adequate
inconsistent with the Consolidated Financial Statements or our internal financial controls, that were operating effectively for
knowledge obtained in the audit or otherwise appears to be ensuring accuracy and completeness of the accounting records,
materially misstated. If, based on the work we have performed relevant to the preparation and presentation of the Consolidated
and based on the work done/ audit report of other auditors, Financial Statements that give a true and fair view and are free
we conclude that there is a material misstatement of this other from material misstatement, whether due to fraud or error, which
information, we are required to report that fact. We have nothing have been used for the purpose of preparation of the Consolidated
to report in this regard. Financial Statements by the Management and Board of Directors
of the Holding Company, as aforesaid.
Management’s and Board of Directors’
Responsibilities for the Consolidated Financial In preparing the Consolidated Financial Statements, the respective
Statements Management and Board of Directors of the companies included in
The Holding Company’s Management and Board of Directors the Group and of its associate and joint ventures are responsible
are responsible for the preparation and presentation of these for assessing the ability of each company to continue as a going
Consolidated Financial Statements in term of the requirements concern, disclosing, as applicable, matters related to going

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