Page 176 - Annual Report 2019-20

INDEPENDENT AUDITOR’S REPORT 175
TO ThE MEMBERS OF PIDILITE InDuSTRIES LIMITED
Report on the Audit of the Consolidated Financial Statements

Opinion the current period. These matters were addressed in Information Other than the Financial Statements and from material misstatement, whether due to fraud
the context of our audit of the consolidated financial Auditor’s Report Thereon or error, which have been used for the purpose of
We have audited the accompanying consolidated statements as a whole, and in forming our opinion preparation of the consolidated financial statements by PIDILITE ANNUAL REPORT 2019-20
financial statements of Pidilite Industries Limited thereon, and we do not provide a separate opinion • The Parent’s Board of Directors is responsible the Directors of the Parent Company, as aforesaid.
(”the Parent”) and its subsidiaries, (the Parent and on these matters. We have determined the matters for the other information. The other information
its subsidiaries together referred to as “the Group”) described below to be the key audit matters to be comprises the information included in the In preparing the consolidated financial statements,
which includes the Group’s share of profit in its communicated in our report. Management Discussion and Analysis, Directors’ the respective Board of Directors of the companies
associate and share of loss in its joint venture, which Report including Annexures to Directors’ Report, included in the Group and of its associate and joint
comprise the Consolidated Balance Sheet as at Key Audit Matter Auditor’s Response Business Responsibility Report, Corporate venture are responsible for assessing the ability
31 March 2020, and the Consolidated Statement Governance and Information for Shareholder, of the respective entities to continue as a going
st
of Profit and Loss (including Other Comprehensive Existence and condition We performed the following but does not include the consolidated financial concern, disclosing, as applicable, matters related to
Income), the Consolidated Statement of Cash Flows of Inventories of raw and alternate audit procedures to statements, standalone financial statements and going concern and using the going concern basis of
and the Consolidated Statement of Changes in Equity Packing Material, Work-in- audit the existence and condi- our auditor’s report thereon. accounting unless the respective Boards of Directors
for the year then ended, and a summary of significant progress, finished goods tion of inventories of Parent • Our opinion on the consolidated financial either intends to liquidate their respective entities or to
accounting policies and other explanatory information. and stock in trade (Refer Company in India, as per the cease operations, or has no realistic alternative but to
note 17 to the consolidated guidance provided in SA 501 statements does not cover the other information do so.
In our opinion and to the best of our information and financial statements) “Audit Evidence – Specific and we do not express any form of assurance
according to the explanations given to us, and based Considerations for Selected conclusion thereon. The respective Boards of Directors of the companies
on the consideration of reports of the other auditors Items”, as at the year-end, since In connection with our audit of the consolidated included in the Group and of its associate and joint
we were not able to physically
on separate financial statements/ financial information observe the physical verification financial statements, our responsibility is to read venture are also responsible for overseeing the financial
of the subsidiaries and an associate referred to of inventories: the other information, compare with the financial reporting process of the Group and of its associate and
in the Other Matters section below, the aforesaid statements of the subsidiaries, and an associate joint venture.
consolidated financial statements give the information The Parent Company Evaluated the design and audited by the other auditors, to the extent it relates Auditor’s Responsibility for the Audit of the
required by the Companies Act, 2013 (“the Act”) in in India has a policy of implementation of the controls to these entities and, in doing so, place reliance on the Consolidated Financial Statements
the manner so required and give a true and fair view performing physical over physical verification of work of the other auditors and consider whether the
verification of inventories,
inventory on a cyclical basis
in conformity with the Indian Accounting Standards with the assistance of and tested the operating other information is materially inconsistent with the Our objectives are to obtain reasonable assurance
prescribed under section 133 of the Act read with the appointed independent effectiveness of these controls consolidated financial statements or our knowledge about whether the consolidated financial statements as
Companies (Indian Accounting Standards) Rules, 2015, third parties, on a planned throughout the year. obtained during the course of our audit or otherwise a whole are free from material misstatement, whether
as amended (‘Ind AS’), and other accounting principles cyclical basis, for all its Due to the COVID-19 related appears to be materially misstated. Other information due to fraud or error and to issue an auditor’s report
generally accepted in India, of the consolidated state locations, throughout the lock-down we were not able so far as it relates to the subsidiaries and an associate, that includes our opinion. Reasonable assurance
st
of affairs of the Group as at 31 March 2020, and year. to participate in the physical is traced from their financial statements audited by the is a high level of assurance but is not a guarantee
their consolidated profit, their consolidated total In accordance with such verification of inventory branch auditors and other auditors. that an audit conducted in accordance with SAs will
comprehensive income, their consolidated cash flows cyclical plan, physical that was carried out by the always detect a material misstatement when it exists.
and their consolidated changes in equity for the year verification of inventories management subsequent If based on the work we have performed, we conclude Misstatements can arise from fraud or error and are
ended on that date. at certain locations of to the year end at certain that there is a material misstatement of this other considered material if, individually or in the aggregate,
Parent Company in India, locations. Consequently, we information, we are required to report that fact. We they could reasonably be expected to influence the
Basis for Opinion which was planned to be have performed the following have nothing to report in this regard. economic decisions of users taken on the basis of these
performed as at year-end, alternate procedures to audit
We conducted our audit of the consolidated financial was performed by the the existence and condition of Management’s Responsibility for the Consolidated consolidated financial statements.
statements in accordance with the Standards on management subsequent inventory: Financial Statements As part of an audit in accordance with SAs, we exercise
Auditing specified under section 143 (10) of the Act to the year-end, which we professional judgment and maintain professional
(SAs). Our responsibilities under those Standards are were unable to physically a. Observed the physical The Parent’s Company’s Board of Directors is skepticism throughout the audit. We also:
further described in the Auditor’s Responsibility for observe, due to the verification of inventories responsible for the matters stated in section 134(5)
carried out by the
the Audit of the Consolidated Financial Statements restrictions imposed on Management at the selected of the Act with respect to the preparation of these • Identify and assess the risks of material
section of our report. We are independent of the account of COVID-19. locations subsequent to consolidated financial statements that give a true misstatement of the consolidated financial
Group, its associate and joint venture in accordance The total value of year-end through virtual and fair view of the consolidated financial position, statements, whether due to fraud or error, design
with the Code of Ethics issued by the Institute of inventory as at mediums, to determine consolidated financial performance including and perform audit procedures responsive to those
Chartered Accountants of India (ICAI) together with 31 March 2020 is 929.47 existence and condition of other comprehensive income, consolidated cash risks, and obtain audit evidence that is sufficient
st
the ethical requirements that are relevant to our audit crores. inventory and on a sample flows and consolidated changes in equity of the and appropriate to provide a basis for our opinion.
of the consolidated financial statements under the basis performed roll back Group including its associate and joint ventures in The risk of not detecting a material misstatement
provisions of the Act and the Rules made thereunder, procedures to arrive at the accordance with the Ind AS and other accounting resulting from fraud is higher than for one resulting
and we have fulfilled our other ethical responsibilities quantities at the balance principles generally accepted in India. The respective from error, as fraud may involve collusion, forgery,
sheet date.
intentional omissions, misrepresentations, or the
in accordance with these requirements and the ICAI’s b. For stocks held at third party Board of Directors of the companies included in • Obtain an understanding of internal financial
override of internal control.
Code of Ethics. We believe that the audit evidence
the Group and of its associate and joint venture are
PIDILITE ANNUAL REPORT 2019-20 in the sub-paragraph (a) of the Other Matters section c. Performed additional Act for safeguarding the assets of the Group and its control relevant to the audit in order to design
locations, obtained direct
responsible for maintenance of adequate accounting
obtained by us and the audit evidence obtained by
confirmation of the inventory
records in accordance with the provisions of the
the other auditors in terms of their reports referred to
held by them as at the
year end.
audit procedures that are appropriate in the
associate and its joint venture and for preventing and
below, is sufficient and appropriate to provide a basis
circumstances. under section 143(3)(i) of the Act,
detecting frauds and other irregularities; selection and
for our audit opinion on the consolidated financial
we are also responsible for expressing our opinion
alternate procedures which
application of appropriate accounting policies; making
statements.
on whether the Parent has adequate internal
included inspection of
judgments and estimates that are reasonable and
financial controls system in place and the operating
Key Audit Matters
supporting documentation
prudent; and design, implementation and maintenance
effectiveness of such controls.
Key audit matters are those matters that, in our
and production records
operating effectively for ensuring the accuracy and
professional judgment, were of most significance in
relating to inventory as at
policies used and the reasonableness of accounting
completeness of the accounting records, relevant
our audit of the consolidated financial statements of relating to purchases, sales of adequate internal financial controls, that were • Evaluate the appropriateness of accounting
year end.
174 to the preparation and presentation of the financial estimates and related disclosures made by the
statements that give a true and fair view and are free management.