Page 144 - Arvind 2024

Key audit matters
How our audit addressed the key audit matter
Assessing carrying value of investment and other receivables in subsidiaries and joint venture (Refer Note 2.2 of the standalone financial statements)
As at March 31, 2024, the carrying value of Company’s investment in subsidiaries and joint ventures is Rs. 26,141.81 Lac and other receivable is Rs. 19,241.88 Lac. Management reviews on a periodical basis whether there are any indicators of impairment of such investments.
Management performs its impairment assessment by comparing the carrying value of these investments and other receivable to their recoverable amount
to determine whether an impairment needs to be recognized.
For investments where impairment indicators exist, management estimated the recoverable amounts of the investments, being higher of fair value less costs of disposal and value in use. Significant judgements are required to determine the key assumptions used in determination of fair value / value in use.
As the impairment assessment involves significant assumptions and judgement, we regard this as a key audit matter.
Information Other than the Standalone Financial Statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report, but does not include the standalone financial statements and our auditor’s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management for the
Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with
Our audit procedures included, among others, the following:
ƒ We evaluated the accounting policies with respect to investment.
ƒ We assessed Company’s evaluation of whether there are any indicators of impairment of such investment and other receivable.
ƒ We assessed the Company’s valuation methodology applied in determining the recoverable amount.
ƒ Assessed the financial position of the subsidiaries and joint venture to identify excess of their net assets over the aggregate of carrying amount of investment and other receivable and assessing the assumptions used for projected profitability in these subsidiaries and joint ventures where applicable.
ƒ We compared the recoverable amount of the investment to the aggregate of carrying value in books of investment and other receivable.
ƒ We assessed the disclosures made in the standalone Ind AS financial statements regarding such investments.
respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive loss, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, managementisresponsibleforassessingtheCompany’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
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