Page 181 - Annual Report 2019-20

ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT 179
TO ThE MEMBERS OF PIDILITE InDuSTRIES LIMITED FOR ThE yEAR EnDED 31 MARCh 2020
ST
(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our
report of even date)

Report on the Internal Financial Controls Over ethical requirements and plan and perform the audit to generally accepted accounting principles, and Our aforesaid report under Section 143(3)(i) of the PIDILITE ANNUAL REPORT 2019-20
Financial Reporting under Clause (i) of Sub-section 3 obtain reasonable assurance about whether adequate that receipts and expenditures of the company are Act on the adequacy and operating effectiveness of
of Section 143 of the Companies Act, 2013 (“the Act”) internal financial controls over financial reporting being made only in accordance with authorisations the internal financial controls over financial reporting
was established and maintained and if such controls of management and directors of the company; and insofar as it relates to 10 subsidiary companies and an
In conjunction with our audit of the consolidated Ind operated effectively in all material respects. associate company, which are companies incorporated
AS financial statements of the Company as of and for (3) provide reasonable assurance regarding in India, is based solely on the corresponding reports
st
the year ended 31 March 2020, we have audited the Our audit involves performing procedures to obtain prevention or timely detection of unauthorised of the auditors of such companies incorporated
internal financial controls over financial reporting of audit evidence about the adequacy of the internal acquisition, use, or disposition of the company’s in India.
Pidilite Industries Limited (hereinafter referred to as financial controls system over financial reporting and assets that could have a material effect on the
“Parent”) and its subsidiary companies, its associate their operating effectiveness. Our audit of internal financial statements Our opinion is not modified in respect of the above
company, which are companies incorporated in India, financial controls over financial reporting included matters.
as of that date. obtaining an understanding of internal financial Inherent Limitations of Internal Financial Controls For DELOITTE HASKINS & SELLS LLP
controls over financial reporting, assessing the risk Over Financial Reporting
Management’s Responsibility for Internal Financial that a material weakness exists, and testing and Chartered Accountants
Controls evaluating the design and operating effectiveness Because of the inherent limitations of internal (Firm’s Registration no. 117366W/W-100018)
financial controls over financial reporting, including
The respective Board of Directors of the Parent, its of internal control based on the assessed risk. the possibility of collusion or improper management N. K. Jain
Partner
subsidiary companies and its associate companies, The procedures selected depend on the auditor’s override of controls, material misstatements due to (Membership no. 045474)
which are companies incorporated in India, are judgement, including the assessment of the risks of error or fraud may occur and not be detected. Also, uDIn 20045474AAAABG3573
responsible for establishing and maintaining internal material misstatement of the financial statements, projections of any evaluation of the internal financial
Place: Mumbai
financial controls based on the internal control whether due to fraud or error. controls over financial reporting to future periods are Date: 17 June 2020
th
over financial reporting criteria established by the We believe that the audit evidence we have obtained subject to the risk that the internal financial control
respective Companies considering the essential and the audit evidence obtained by other auditors over financial reporting may become inadequate
components of internal control stated in the of the subsidiary companies and associate company, because of changes in conditions, or that the degree
Guidance note on Audit of Internal Financial Controls which are companies incorporated in India, in terms of compliance with the policies or procedures may
Over Financial Reporting issued by the Institute of their reports referred to in the Other Matters deteriorate.
of Chartered Accountants of India (ICAI). These paragraph below, is sufficient and appropriate to
responsibilities include the design, implementation provide a basis for our audit opinion on the internal Opinion
and maintenance of adequate internal financial financial controls system over financial reporting of In our opinion to the best of our information and
controls that were operating effectively for ensuring the Parent, its subsidiary companies and its associate according to the explanations given to us and based
the orderly and efficient conduct of its business, company, which are companies incorporated in India on the consideration of the reports of the branch
including adherence to the respective company’s where such reporting under Section 143(3) of the auditors and other auditors referred to in the Other
policies, the safeguarding of its assets, the prevention Companies Act, 2013 is applicable. Matters paragraph below, the Parent, its subsidiary
and detection of frauds and errors, the accuracy and companies and its associate company, which are
completeness of the accounting records, and the Meaning of Internal Financial Controls Over Financial companies incorporated in India, have, in all material
timely preparation of reliable financial information, as Reporting respects, an adequate internal financial controls
required under the Companies Act, 2013. A company’s internal financial control over financial system over financial reporting and such internal
Auditor’s Responsibility reporting is a process designed to provide reasonable financial controls over financial reporting were
st
assurance regarding the reliability of financial operating effectively as at 31 March 2020, based on
Our responsibility is to express an opinion on the reporting and the preparation of financial statements the criteria for internal financial control over financial
internal financial controls over financial reporting of for external purposes in accordance with generally reporting established by the respective companies
the Parent, its subsidiary companies and its associate accepted accounting principles. A company’s internal considering the essential components of internal
company, which are companies incorporated in financial control over financial reporting includes those control stated in the Guidance note on Audit of
PIDILITE ANNUAL REPORT 2019-20 Internal Financial Controls Over Financial Reporting (1) pertain to the maintenance of records that, in of India.
Internal Financial Controls Over Financial Reporting
India, based on our audit. We conducted our audit
policies and procedures that
issued by the Institute of Chartered Accountants
in accordance with the Guidance note on Audit of
reasonable detail, accurately and fairly reflect the
(the “Guidance note”) issued by the Institute of
transactions and dispositions of the assets of the
Chartered Accountants of India and the Standards
company;
on Auditing, prescribed under Section 143(10) of the
Companies Act, 2013, to the extent applicable to an
(2) provide reasonable assurance that transactions
and the Guidance note require that we comply with
of financial statements in accordance with
178 audit of internal financial controls. Those Standards are recorded as necessary to permit preparation