Page 110 - FBL AR 2019-20

Fermenta Biotech Limited
Annual Report 2019-20

Management’s Responsibility for the Standalone • Obtain an understanding of internal financial control relevant
Financial Statements to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of
The Company’s Board of Directors is responsible for the matters the Act, we are also responsible for expressing our opinion on
stated in section 134(5) of the Act with respect to the preparation whether the Company has adequate internal financial controls
of these standalone financial statements that give a true and fair system in place and the operating effectiveness of such
view of the financial position, financial performance including other controls.
comprehensive income, cash flows and changes in equity of the
Company in accordance with the Ind AS and other accounting • Evaluate the appropriateness of accounting policies used
principles generally accepted in India. This responsibility also includes and the reasonableness of accounting estimates and related
maintenance of adequate accounting records in accordance with disclosures made by the management.
the provisions of the Act for safeguarding the assets of the Company • Conclude on the appropriateness of management’s use of the
and for preventing and detecting frauds and other irregularities; going concern basis of accounting and, based on the audit
selection and application of appropriate accounting policies; evidence obtained, whether a material uncertainty exists
making judgments and estimates that are reasonable and prudent; related to events or conditions that may cast significant doubt
and design, implementation and maintenance of adequate internal on the Company’s ability to continue as a going concern. If we
financial controls, that were operating effectively for ensuring the conclude that a material uncertainty exists, we are required to
accuracy and completeness of the accounting records, relevant draw attention in our auditor’s report to the related disclosures
to the preparation and presentation of the standalone financial in the standalone financial statements or, if such disclosures are
statements that give a true and fair view and are free from material inadequate, to modify our opinion. Our conclusions are based
misstatement, whether due to fraud or error. on the audit evidence obtained up to the date of our auditor’s
In preparing the standalone financial statements, management is report. However, future events or conditions may cause the
responsible for assessing the Company’s ability to continue as a Company to cease to continue as a going concern.
going concern, disclosing, as applicable, matters related to going • Evaluate the overall presentation, structure and content of the
concern and using the going concern basis of accounting unless standalone financial statements, including the disclosures, and
management either intends to liquidate the Company or to cease whether the standalone financial statements represent the
operations, or has no realistic alternative but to do so. underlying transactions and events in a manner that achieves
Those Board of Directors are also responsible for overseeing the fair presentation.
Company’s financial reporting process. Materiality is the magnitude of misstatements in the standalone
Auditor’s Responsibility for the Audit of the financial statements that, individually or in aggregate, makes
Standalone Financial Statements it probable that the economic decisions of a reasonably
knowledgeable user of the standalone financial statements may
Our objectives are to obtain reasonable assurance about whether be influenced. We consider quantitative materiality and qualitative
the standalone financial statements as a whole are free from factors in (i) planning the scope of our audit work and in evaluating
material misstatement, whether due to fraud or error, and to issue the results of our work; and (ii) to evaluate the effect of any identified
an auditor’s report that includes our opinion. Reasonable assurance misstatements in the standalone financial statements.
is a high level of assurance, but is not a guarantee that an audit We communicate with those charged with governance regarding,
conducted in accordance with SAs will always detect a material among other matters, the planned scope and timing of the audit
misstatement when it exists. Misstatements can arise from fraud or and significant audit findings, including any significant deficiencies
error and are considered material if, individually or in the aggregate, in internal control that we identify during our audit.
they could reasonably be expected to influence the economic
decisions of users taken on the basis of these standalone financial We also provide those charged with governance with a statement
statements. that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships
As part of an audit in accordance with SAs, we exercise professional and other matters that may reasonably be thought to bear on our
judgment and maintain professional skepticism throughout the independence, and where applicable, related safeguards.
audit. We also:
From the matters communicated with those charged with
• Identify and assess the risks of material misstatement of the
standalone financial statements, whether due to fraud or error, governance, we determine those matters that were of most
design and perform audit procedures responsive to those risks, significance in the audit of the standalone financial statements
and obtain audit evidence that is sufficient and appropriate of the current period and are therefore the key audit matters. We
to provide a basis for our opinion. The risk of not detecting a describe these matters in our auditor’s report unless law or regulation
material misstatement resulting from fraud is higher than for precludes public disclosure about the matter or when, in extremely
one resulting from error, as fraud may involve collusion, forgery, rare circumstances, we determine that a matter should not be
intentional omissions, misrepresentations, or the override of communicated in our report because the adverse consequences
internal control. of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
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