Amal Ltd 2020-21

5 Directors’ Report 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, 2021. 01. Financial results ( ` lakhs ) 2020-21 2019-20 Sales and other income 3,166 3,434 Profit before tax 1,086 1,269 Provision for tax 202 350 Profit for the year 885 919 Other comprehensive income (net of tax) (1) 0 Profit after tax 884 919 Balance brought forward (913) (1,832) Balance carried forward (29) (913) 02. Performance During 2020-21, sales and other income decreased by 8% (reduction in selling prices by 5% and sales volume of 3%) from ` 3,434 lakhs to ` 3,166 lakhs. The Company reported a profit before tax of ` 1,086 lakhs in 2020-21 against a profit before tax of ` 1,269 lakhs in 2019-20. 03. Dividend Under the extant laws, the Company shall not declare a dividend in view of its carried forward losses of ` 29 lakhs. 04. Conser vat i on of energy, techno l ogy absorption, foreign exchange earnings and outgo Information required under Section 134(3) (m) of the Companies Act , 2013, read wi th 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 12. 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 - Focuses on identifying relevant risks, creating | updating clear definitions to ensure undisputed understanding along with details of the underlying root causes | contributing factors. ii) Ri sk c lass i f i cat i on - Focuses on