Amal Ltd 2019-20

3 Directors’ Report 02. Performance During 2019-20, sales and other income increased by 3% from ` 3,344 lakhs to ` 3,434 lakhs. Reduction in selling prices by 25% was compensated by higher sales volume of 28%. The Company reported a profit before tax of ` 1,270 lakhs in 2019-20 against a profit before tax of ` 998 lakhs in 2018-19. 03. Dividend Under the extant laws, the Company cannot declare a dividend in view of its carried forward losses. 04. Conservation of 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 10. 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 Riskmanagement 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 - Focuses 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 - Focuses 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. 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, 2020. 01. Financial results ( ` lakhs ) 2019-20 2018-19 Sales and other income 3,434 3,344 Profit before tax 1,270 998 Provision for tax 350 223 Profit for the year 920 775 Other comprehensive income (net of tax) 0 (1) Profit after tax 920 774 Balance brought forward (1,832) (2,607) Balance carried forward (912) (1,832)