B S R & Co. LLP
Independent Auditor’s Report
(Continued)
Tata Motors Limited
Regulation 63 of the Listing Regulations. The respective Management
and Board of Directors of the Company and its joint operation are
responsible for maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the
assets of each 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 accuracy and completeness of the
accounting records, relevant to the preparation and presentation of
the standalone financial results that give a true and fair view and
are free from material misstatement, whether due to fraud or
error.
In preparing the standalone financial results, the respective
Management and the Board of Directors are responsible for assessing
each company’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 the respective Board of
Directors either intends to liquidate the company or to cease
operations, or has no realistic alternative but to do so.
The respective Board of Directors are also responsible for
overseeing the financial reporting process of each company.
Auditor’s Responsibilities for the Audit of the Standalone
Financial Results
Our objectives are to obtain reasonable assurance about whether the
standalone financial results as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit
conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these standalone
financial results.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
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Identify and assess the risks of material misstatement of the
standalone financial results, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal
control.
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Obtain an understanding of internal control relevant to the audit
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the company’s internal control.
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Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures in
the standalone financial results made by the Management and Board
of Directors.
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Conclude on the appropriateness of the Management and Board of
Directors’ use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant
doubt on the Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures
in the standalone financial results or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company to cease
to continue as a going concern.
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Evaluate the overall presentation, structure and content of the
standalone financial results, including the disclosures, and
whether the standalone financial results represent the underlying
transactions and events in a manner that achieves fair
presentation.
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We communicate with those charged with governance of the Company
and such other entity included in standalone financial results of
which we are the independent auditors regarding, among other
matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that
we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.