Amal Ltd 2017-18

3 Dear Members, The Board of Directors (Board) presents the Annual Report of Amal Ltd together with the audited Financial Statements for the year ended March 31, 2018. 01. Financial results ( ` 000 ) 2017-18 2016-17 Sales and other income 3,19,722 2,57,926 Profit before tax 97,041 88,866 Profit for the year 97,041 88,866 Other Comprehensive Income (net of tax) 45 164 Profit after tax 97,086 89,030 Balance brought forward (3,57,755) (4,46,785) Balance carried forward (2,60,669) (3,57,755) Directors’ Report 02. Performance During 2017-18, sales and other income increased by 24% from ` 2,579 lakhs to ` 3,197 lakhs mainly due to higher volumes (17%) and prices (7%). The Companyreportedaprofitof ` 971lakhs in2017-18 against a profit of ` 890 lakhs in 2016-17. 03. Dividend Under the extant laws, the Company cannot declare a Dividend in view of its carried forward losses. 04. Conservationof energy, technologyabsorption, foreign exchange earnings and outgo Information required under Section 134(3)(m) of the Companies Act, 2013, read with Rule 8(3) of the Companies (Accounts) Rules, 2014, as amended from time to time, forms a part of this Report which is given at page number 9. 05. Insurance The Company has taken adequate insurance to cover the risks to its employees, property (land and buildings), plant, equipment, other assets and third parties. 06. Risk Management Risk Management is an integral part of business practices of the Company. The framework of Risk Management concentrates on formalising a systemtodealwith themost relevant risks, building on existing management practices, knowledge and structures. With the help of a reputed international consultancy firm, the Company has developed and implemented a comprehensive Risk Management System to ensure that risks to the continued existence of the Company as a going concern and to its growth are identified and remedied on a timely basis. While defining and developing the formalised Risk Management System, leading standards and practices have been considered. The Risk Management System is relevant to business reality, pragmatic and simple and involves the following: i) Risk identification and definition - Focused on identifying relevant risks, creating | updating clear definitions to ensure undisputed understanding along with details of the underlying root causes | contributing factors. ii) Risk classification - Focused on understanding the various impacts of risks and the level of influence on its root causes. This involves identifying various processes generating the root causes and a clear understanding of risk interrelationships. iii) Risk assessment and prioritisation - Focused ondetermining risk priority and risk ownership for critical risks. This involves assessment of the various impacts taking into consideration risk appetite and existing mitigation controls. iv) Riskmitigation - Focused on addressing critical risks to restrict their impact(s) to an acceptable level (within the defined risk appetite). This involves a clear definition of actions,