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, 2022. 01. Financial results (` lakhs) 2021-22 2020-21 Sales and other income 4,530 3,166 Profit before tax 332 1,086 Provision for tax 90 202 Profit for the year 242 885 Other comprehensive income (net of tax) (1) (1) Profit after tax 241 884 Balance brought forward (29) (913) Balance carried forward 212 (29) 02. Performance During 2021-22, sales and other income increased by 43% (increase in selling price by 30% and sales volume of 13%) from ` 3,166 lakhs to ` 4,530 lakhs. The Company reported a profit before tax of ` 332 lakhs in 2021-22 against a profit before tax of ` 1,086 lakhs in 2020-21 due to high input cost. 03. Dividend The Directors have not declared a dividend to partially meet the requirement of fund for the on-going project in Amal Speciality Chemicals Ltd, a wholly-owned subsidiary company. 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 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.
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