KEY AUDIT MATTERS IN AUDIT REPORT – RELATED PARTY TRANSACTIONS

Refer Note No. 39 to the Standalone Financial Statements.

We identified the accuracy and completeness of disclosure of
related party transactions as set out in respective notes to the Standalone
Financial Statements as a key audit matter due to:

• the significance of transactions with related parties during
the year ended 31^st March, 2021

• compliance with applicable laws and Regulatory Directives

• the fact that related party transactions are subject to the
compliance requirements under the Companies Act, 2013 and SEBI (LODR), 2015

Obtaining an understanding of the Company’s policies and
procedures in respect of the capturing of related party transactions and how
management ensures all transactions and balances with related parties have
been disclosed in the Standalone Financial Statements

• Obtaining an understanding of the Company’s policies and
procedures in respect of evaluating arm’s length pricing and approval process
by the audit committee and the Board of Directors

• Designing and performing audit procedures in accordance with
the guidelines laid down by ICAI in the Standard on Auditing (SA 550) to
identify, assess and respond to the risks of material misstatement arising
from the entity’s failure to appropriately account for or disclose material
related party transactions, which includes obtaining necessary approvals at
appropriate stages of such

(continued)

transactions as mandated by applicable laws and regulations

• Assessing management evaluation of compliance with the
provisions of section 177 and section 188 of the Act and SEBI (LODR), 2015

• Evaluating the disclosures through reading of statutory
information, books and records and other documents obtained during the course
of our audit

• Our examination has showed that the related party transactions
have been evaluated and disclosed appropriately

The Company has undertaken transactions with its related parties
in the ordinary course of business at arm’s length. These include making new
or additional investments in its subsidiaries; lending loans to related
parties; sales and purchases to and from related parties, etc., as disclosed
in Note 44 to the standalone Ind AS financial statements

We identified the accuracy and completeness of the related party
transactions and its disclosure as set out in respective Notes to the
financial statements as a key audit matter due to the significance of
transactions with related parties and regulatory compliances thereon, during
the year ended 31^st March, 2021

Our procedures / testing included the following:

• Obtained and read the Company’s policies, processes and
procedures in respect of identifying related parties, obtaining approval,
recording and disclosure of related party transactions;

• Read minutes of shareholder meetings, Board meetings and
minutes of meetings of those charged with governance in connection with
Company’s assessment of related party transactions being in the ordinary
course of business at arm’s length;

• Tested related party transactions

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with the underlying contracts, confirmation letters and other
supporting documents;

• Agreed with the related party information disclosed in the
financial statements with the underlying supporting documents, on a sample
basis.

The Company has related party transactions which include,
amongst others, sale and purchase of goods / services to its subsidiaries,
associates, joint ventures and other related parties and lending and
borrowing to its subsidiaries, associates and joint ventures

Identification and disclosure of related parties was a
significant area of focus and hence considered as a Key Audit Matter

Our audit procedures amongst others included the following:

• Evaluated the design and tested the operating effectiveness of
controls over identification and disclosure of related party transactions

• Obtained a list of related parties from the Company’s
management and traced the related parties to declarations given by Directors,
where applicable, and to Note 50 of the standalone Ind AS financial
statements

• Read minutes of the meetings of the Board of Directors and
Audit Committee to trace related party transactions with limits approved by
Audit Committee / Board

• Tested material creditors / debtors, loan given / loans taken
to evaluate existence of any related party relationships; tested transactions
based on declarations of related party transactions given to the Board of
Directors and Audit Committee

• Verified the disclosures in the standalone Ind AS financial
statements for compliance with Ind AS 24

Identification and compliance of related party transactions
(RPTs)

In view of the significance of the matter, the auditor of the
subsidiary has reported that the

(continued)

The Group has numerous transactions with related parties during
the year. The related party balances as at 31^st March, 2021 and
related party transactions are disclosed in Note 31 to the consolidated
financial statements

Transactions with related parties mainly comprise transactions
between the Group and other entities which are directly / indirectly
controlled by the shareholders with significant influence of the Group

We identified related party transactions as a key audit matter
because of risks with respect to completeness of disclosures made in the
consolidated financial statements; compliance with statutory regulations
governing related party relationships such as the Companies Act, 2013 and
SEBI Regulations and the judgment involved in assessing whether transactions
with related parties are undertaken at arm’s length

(continued)

following audit procedures were applied in this area, among
others, to obtain sufficient appropriate audit evidence:

• We tested key controls to identify and disclose related party
relationships and transactions in accordance with the relevant accounting
standard and also tested controls on the required approval process of such
related party transactions

• We carried out an assessment of compliance with the listing
regulations and the regulations under the Companies Act, 2013, including
checking of approvals as specified in sections 177 and 188 of the Companies
Act, 2013 with respect to the related party transactions. In cases where the
matter was subject to varied interpretations, we have relied on opinions
obtained by management from independent legal practitioners

• We considered the adequacy and appropriateness of the
disclosures in the consolidated financial statements, relating to the related
party transactions

• For transactions with related parties, we inspected relevant
ledgers, agreements and other information that may indicate the existence of
related party relationships or transactions. We also tested completeness of
related parties with reference to the various registers maintained by the
Company statutorily

• We have tested on a sample basis, Management’s assessment of related
party transactions for arm’s length pricing

The Company has undertaken transactions with its related parties
in the ordinary course of business at arm’s length. These include
transactions in the nature of investments, loans, sales, etc.,

Our procedures / testing included the following:

• Obtained and read the Company’s policies, processes and
procedures in  respect of

(continued)

as disclosed in Note 44 to the standalone Ind AS financial
statements.

Considering the significance of transactions with related
parties and regulatory compliances thereon, related party transactions and
their disclosure as set out in respective notes to the financial statements
have been identified as key audit matters

(continued)

related parties, obtaining approval, recording and disclosure of
related party transactions;

• Read minutes of shareholder meetings, Board meetings and
minutes of meetings of those charged with governance in connection with
Company’s assessment of related party transactions being in the ordinary
course of business at arm’s length;

• Tested related party

(continued)

transactions with the
underlying contracts, confirmation letters and other supporting documents;

• Agreed the related party information disclosed in the
financial statements with the underlying supporting documents, on a sample
basis;

• Also reviewed the assessment of the recoverability from the
related parties based on group’s cash flow plan prepared by the Management.