With reference to the information given under Para 2, what kind of factors might be there that would have indicated existence of certain…

7 As per SA 320, ‘Materiality in Planning and Performing an Audit', factors that may indicate the existence of one or more particular classes of transactions, account balances or disclosures for which misstatements of lesser amounts than materiality for the financial statements as a whole could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements include the following: Whether law, regulations or the applicable financial reporting framework affect users' expectations regarding the measurement or disclosure of certain items (for example, related party transactions, and the remuneration of management and those charged with governance).The key disclosures in relation to the industry in which the entity operates (for example, research and development costs for a pharmaceutical company).Whether attention is focused on a particular aspect of the entity's business that is separately disclosed in the financial statements (for example, a newly acquired business). In the given instance, factors, as aforesaid, might be there that would have indicated existence of certain transactions entered into by YPL for which Mr. Kailash was required to lower his materiality as for such transactions, misstatements of lesser amounts than materiality for the financial statements as a whole could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.