Page 177 - Kolte Patil AR 2019-20

Sr. No. Key Audit Matter Auditors’ Response
1 Revenue recognition under Ind AS 115 – Revenue Principal Audit Procedures
from Contracts with Customers – Revenue recognition Our audit approach consisted testing of the design and operating
in terms of appropriate accounting period and effectiveness of the internal controls and substantive testing as follows:
completeness of revenue in respect of possessions
given to customers. • Assessed the consistency of the accounting principles applied by
the Company to measure its revenue from sales of properties / flats
The Company recognises revenue primarily from the with the applicable regulatory financial reporting framework.
sale of properties/flats (residential and commercial)
with revenue being recognised on possession given to • Evaluated the design, implementation and operational effectiveness
customers. Revenue recognition is a significant audit of the relevant controls implemented by the Company to ensure
risk within the Company. There is a risk that Revenue recognition of revenue in appropriate period and completeness of
may be mis-stated on account of recognition in wrong the revenue recognition in the books of accounts. We carried out a
accounting period and completeness of the revenue. combination of procedures involving enquiry and observation, re-
performance and inspection of evidence in respect of operation of
Refer Notes 2K and 27 to the Standalone Financial these controls.
Statements.
• Tested completeness of total number of units sold and total amount
of revenue recognised by reconciling the possession report with the
books of accounts.
• Selected samples of agreements with customers and for the samples
selected, performed the following procedures:
- Read, analysed the Sale Agreement for the terms of the contract
and verified the Agreement Value, Date of Agreement, Carpet
Area and other relevant details.
- Verified the possession declaration date is before year end date
to ensure revenue is recorded in the appropriate period.
Verified the possession and key handover letter duly signed by both the
parties. Assessed the consistency of the accounting principles applied by
the Company to measure its revenue from sales of properties / flats with
the applicable regulatory financial reporting framework.

INFORMATION OTHER THAN THE FINANCIAL in doing so, place reliance on the work of the other auditors and
STATEMENTS AND AUDITOR’S REPORT THEREON consider whether the other information is materially inconsistent
The Parent’s Board of Directors is responsible for the other with the consolidated financial statements or our knowledge
information. The other information comprises the information obtained during the course of our audit or otherwise appears to
included in the Management Report and Chairman’s Statement, be materially misstated. Other information so far as it relates to the
but does not include the consolidated financial statements and our subsidiaries, is traced from their financial statements audited by the
auditor’s report thereon. The Management Report and Chairman’s other auditors.
Statement is expected to be made available to us after the date of • When we read the Management Report and Chairman’s
this auditors’ report. Statement, if we conclude that there is a material misstatement

• Our opinion on the consolidated financial statements does not therein, we are required to communicate the matter to those
cover the other information and we do not express any form of charged with governance as required under SA 720 ‘The
assurance conclusion thereon. Auditor’s responsibilities Relating to Other Information’.
In connection with our audit of the consolidated financial MANAGEMENT’S RESPONSIBILITY FOR THE
statements, our responsibility is to read the other information, CONSOLIDATED FINANCIAL STATEMENTS
compare with the financial statements of the subsidiaries audited The Parent’s Board of Directors is responsible for the matters stated
by the other auditors, to the extent it relates to these entities and,
in section 134(5) of the Act with respect to the preparation of

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