Amal Ltd 2018-19

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, 2019. 01. Financial results ( ` 000 ) 2018-19 2017-18 Sales and other income 3,34,413 3,19,722 Profit before tax 99,797 97,041 Profit for the year 77,505 97,041 Other comprehensive income (net of tax) (77) 45 Profit after tax 77,428 97,086 Balance brought forward (2,60,669) (3,57,755) Balance carried forward (1,83,241) (2,60,669) 02. Performance During 2018-19, sales and other income increased by 5% from ` 3,197 lakhs to ` 3,344 lakhs mainly due to lower volumes (19%) and higher prices 24%. The Company reported a profit before tax of ` 998 lakhs in 2018-19 against a profit before tax of ` 971 lakhs in 2017-18. 03. Dividend Under the extant laws, the Company cannot declare a dividend in view of its carried forward losses. 04. Conservationof energy, technology absorption, 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 system to deal with the most 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 - Directors’ Report