Page 178 - Annual Report 2019-20

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• Conclude on the appropriateness of management’s From the matters communicated with those charged
use of the going concern basis of accounting and, with governance, we determine those matters
based on the audit evidence obtained, whether that were of most significance in the audit of the
a material uncertainty exists related to events or consolidated financial statements of the current
conditions that may cast significant doubt on the period and are therefore the key audit matters. We
ability of the Group and its associate and joint describe these matters in our auditor’s report unless
venture to continue as a going concern. If we law or regulation precludes public disclosure about the
conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to matter or when, in extremely rare circumstances, we
the related disclosures in the consolidated financial determine that a matter should not be communicated
statements or, if such disclosures are inadequate, in our report because the adverse consequences of
to modify our opinion. Our conclusions are based doing so would reasonably be expected to outweigh
on the audit evidence obtained up to the date of the public interest benefits of such communication.
our auditor’s report. however, future events or Other Matters
conditions may cause the Group and its associate
and joint venture to cease to continue as a going (a) We did not audit the financial statements/
concern. financial information of 32 subsidiaries, whose
• Evaluate the overall presentation, structure and financial statements/ financial information reflect
st
content of the consolidated financial statements, total assets of 1,552.94 crores as at 31 March
including the disclosures, and whether the 2020, total revenues of 945.53 crores and net
consolidated financial statements represent the cash inflows (net) amounting to 60.34 crores
underlying transactions and events in a manner that for the year ended on that date, as considered
achieves fair presentation. in the consolidated financial statements. The
• Obtain sufficient appropriate audit evidence consolidated financial statements also include the
regarding the financial information of the entities Group’s share of net profit of 3.03 crores for the
st
or business activities within the Group and its year ended 31 March 2020, as considered in the
associate and joint venture to express an opinion consolidated financial statements, in respect of
on the consolidated financial statements. We are an associate, whose financial statements have not
responsible for the direction, supervision and been audited by us. These financial statements/
performance of the audit of the financial statements financial information have been audited by other
of such entities or business activities included in auditors whose reports have been furnished to
the consolidated financial statements of which we us by the Management and our opinion on the
are the independent auditors. For the other entities consolidated financial statements, in so far as it
or business activities included in the consolidated relates to the amounts and disclosures included
financial statements, which have been audited
by the other auditors, such other auditors remain in respect of these subsidiaries and associate,
responsible for the direction, supervision and and our report in terms of subsection (3) of
performance of the audits carried out by them. We Section 143 of the Act, in so far as it relates to the
remain solely responsible for our audit opinion. aforesaid subsidiaries and associate is based solely
on the reports of the other auditors.
Materiality is the magnitude of misstatements in the
consolidated financial statements that, individually (b) We did not audit the financial information of 2
or in aggregate, makes it probable that the economic subsidiaries, whose financial information reflect
decisions of a reasonably knowledgeable user of the total assets of nIL as at 31 March 2020,
st
consolidated financial statements may be influenced. total revenues of nIL and net cash inflows/
We consider quantitative materiality and qualitative (outflows) amounting to nIL for the year ended
factors in (i) planning the scope of our audit work and on that date, as considered in the consolidated
in evaluating the results of our work; and (ii) to evaluate financial statements. The consolidated financial
the effect of any identified misstatements in the statements also include the Group’s share of
consolidated financial statements.
net loss of nIL for the year ended 31 March
st
We communicate with those charged with governance 2020, as considered in the consolidated financial
of the Parent and such other entities included in the statements, in respect of a joint venture, whose
consolidated financial statements of which we are financial information have not been audited by
PIDILITE ANNUAL REPORT 2019-20 and significant audit findings, including any significant and our opinion on the consolidated financial
the independent auditors regarding, among other
us. These financial information are unaudited and
matters, the planned scope and timing of the audit
have been furnished to us by the Management
deficiencies in internal control that we identify during
statements, in so far as it relates to the amounts
our audit.
and disclosures included in respect of these
We also provide those charged with governance with
subsidiaries and joint venture, is based solely
a statement that we have complied with relevant
on such unaudited financial information. In our
ethical requirements regarding independence, and
opinion and according to the information and
matters that may reasonably be thought to bear on
these financial information are not material to
our independence, and where applicable, related
the Group.
safeguards.
176 to communicate with them all relationships and other explanations given to us by the Management,
Our opinion on the consolidated financial f) With respect to the adequacy of the internal
statements above and our report on Other Legal
and Regulatory Requirements below, is not
modified in respect of the above matters with
respect to our reliance on the work done and the
reports of the other auditors and the financial
information certified by the Management.
Report on Other Legal and Regulatory
Requirements
As required by Section 143(3) of the Act, based on
our audit and on the consideration of the reports
of the other auditors on the separate financial g) With respect to the other matters to be included
statements/ financial information of the subsidiaries
and an associate referred to in the Other Matters
section above we report, to the extent applicable
that:
a) We have sought and obtained all the information
and explanations which to the best of our
knowledge and belief were necessary for h) With respect to the other matters to be included
the purposes of our audit of the aforesaid
consolidated financial statements.
b) In our opinion, proper books of account as
required by law relating to preparation of the
aforesaid consolidated financial statements
have been kept so far as it appears from our
examination of those books and the reports of
the other auditors.
c) The Consolidated Balance Sheet, the
Consolidated Statement of Profit and Loss
including Other Comprehensive Income, the
Consolidated Statement of Cash Flows and the
Consolidated Statement of Changes in Equity
dealt with by this Report are in agreement with
the relevant books of account maintained for
the purpose of preparation of the consolidated
financial statements
d) In our opinion, the aforesaid consolidated
financial statements comply with the Ind AS
specified under Section 133 of the Act.
e) On the basis of the written representations
received from the directors of the Parent as on
31 March 2020 taken on record by the Board of
st
Directors of the Company and the reports of the
statutory auditors of its subsidiary companies
and associate company incorporated in India,
none of the directors of the Group companies
and its associate company incorporated in India
is disqualified as on 31 March 2020 from
st
being appointed as a director in terms of
Section 164 (2) of the Act.
financial controls over financial reporting and the
operating effectiveness of such controls, refer
to our separate Report in “Annexure A” which
is based on the auditors’ reports of the Parent, PIDILITE ANNUAL REPORT 2019-20
subsidiary companies and associate company
incorporated in India. Our report expresses
an unmodified opinion on the adequacy and
operating effectiveness of internal financial
controls over financial reporting of those
companies.
in the Auditor’s Report in accordance with the
requirements of section 197(16) of the Act, as
amended, In our opinion and to the best of our
information and according to the explanations
given to us, the remuneration paid by the Parent to
its directors during the year is in accordance with
the provisions of section 197 of the Act.
in the Auditor’s Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules,
2014, as amended in our opinion and to the best of
our information and according to the explanations
given to us:
i. The consolidated financial statements disclose
the impact of pending litigations on the
consolidated financial position of the Group
and its associate
ii. The Group and its associate did not have
any material foreseeable losses on long-term
contracts including derivative contracts.
iii. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund by the
Parent, its subsidiary companies and associate
company incorporated in India.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration no. 117366W/W-100018)
N. K. Jain
Partner
(Membership no. 045474)
uDIn 20045474AAAABG3573
Place: Mumbai
th
Date: 17 June 2020