Amal Ltd 2018-19

Amal Ltd | Annual Report 2018-2019 Independent Auditor’s Report To the Members of Amal Limited Report on the Audit of the Financial Statements Opinion We have audited the accompanying Financial Statements of Amal Limited (the Company), which comprise the Balance Sheet as at March 31, 2019, and the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flows and the Statement of changes in equity for the year then ended, and a summary of significant accounting policies and other explanatory information. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Financial Statements give the information required by the Companies Act, 2013 (the Act) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (Ind AS) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2019 and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date. Basis for Opinion We conducted our audit of the Financial Statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor’s Responsibility for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the Financial Statements. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Financial Statements of the current period. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matter described below to be the key audit matter to be communicated in our report. Key audit matter Auditor’s response Revenue from sale of goods to holding company Significant revenue of the Company is generated through sale of goods to its holding company. Occurrence of such transactions and their pricing on an arm’s length basis were significant areas of audit focus. Our procedures included but were not limited to: -Obtaining a detailed understanding of the processes, controls and policies of the management with respect to related party transactions. - Evaluation of the design of controls including approvals and related compliances. - Testing implementation and operating effectiveness of the controls that address risks relating to the occurrence and the pricing. - Performing following procedures on the samples selected: - Reading and verification of the terms of the purchase orders. Performing corroborative inquiries for the business rational on pricing and relevant terms and conditions, including sighting evidences of transaction of similar products on identical terms with unrelated parties. - Verification of necessary approvals as per the authorisation matrices. - Verification of documentary evidences around deliveries and subsequent realisation, and obtaining balance confirmations. - Performing analytical procedures and trend analysis - Assessing adequacy and appropriateness of the disclosures in the Financial Statements.