1. Identify and quantify of capital commitment, guarantee, non-cancellable lease commitment, uncalled portion of investment, other long-term service agreement and guarantee/avail given to other group companies through the following procedures:-
1) Inquire of management.
2) Read significant contracts, loan agreements, leases, service guarantees, bank guarantee etc.
3) Read minutes of meeting
2. Inquire management as to threatened, pending litigation, contingent liabilities
3. Review whether provision is adequately set up for contingencies considered to be crystallized.