Page 174 - FBL AR 2019-20

Fermenta Biotech Limited
Annual Report 2019-20

• Identify and assess the risks of material misstatement of the We communicate with those charged with governance of the
consolidated financial statements, whether due to fraud or Parent and such other entities included in the consolidated financial
error, design and perform audit procedures responsive to statements of which we are the independent auditors regarding,
those risks, and obtain audit evidence that is sufficient and among other matters, the planned scope and timing of the audit
appropriate to provide a basis for our opinion. The risk of not and significant audit findings, including any significant deficiencies
detecting a material misstatement resulting from fraud is in internal control that we identify during our audit.
higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or We also provide those charged with governance with a statement
the override of internal control. that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships
• Obtain an understanding of internal financial control relevant and other matters that may reasonably be thought to bear on our
to the audit in order to design audit procedures that are independence, and where applicable, related safeguards.
appropriate in the circumstances. Under section 143(3)(i) of From the matters communicated with those charged with
the Act, we are also responsible for expressing our opinion on governance, we determine those matters that were of most
whether the Parent has adequate internal financial controls significance in the audit of the consolidated financial statements
system in place and the operating effectiveness of such of the current period and are therefore the key audit matters. We
controls.
describe these matters in our auditor’s report unless law or regulation
• Evaluate the appropriateness of accounting policies used precludes public disclosure about the matter or when, in extremely
and the reasonableness of accounting estimates and related rare circumstances, we determine that a matter should not be
disclosures made by the management. communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public
• Conclude on the appropriateness of management’s use of the
going concern basis of accounting and, based on the audit interest benefits of such communication.
evidence obtained, whether a material uncertainty exists Other Matters
related to events or conditions that may cast significant doubt
on the ability of the Group and its associate to continue as a (a) We did not audit the financial statements of 3 subsidiaries,
going concern. If we conclude that a material uncertainty exists, whose financial statements reflect total assets of H146.18 Lakhs
we are required to draw attention in our auditor’s report to the as at 31 March, 2020, total revenues of H18.02 Lakhs and net
related disclosures in the consolidated financial statements cash outflows amounting to H1.64 Lakhs for the year ended
or, if such disclosures are inadequate, to modify our opinion. on that date, as considered in the consolidated financial
Our conclusions are based on the audit evidence obtained up statements. The above figures are before giving effects of any
to the date of our auditor’s report. However, future events or consolidation adjustments. These financial statements have
conditions may cause the Group and its associate to cease to been audited by other auditors whose reports have been
continue as a going concern. furnished to us by the Management of the Parent and our
opinion on the consolidated financial statements, in so far as
• Evaluate the overall presentation, structure and content of the it relates to the amounts and disclosures included in respect
consolidated financial statements, including the disclosures, of these subsidiaries and our report in terms of subsection (3)
and whether the consolidated financial statements represent of Section 143 of the Act, in so far as it relates to the aforesaid
the underlying transactions and events in a manner that subsidiaries is based solely on the reports of the other auditors.
achieves fair presentation.
(b) We did not audit the financial information of 2 subsidiaries,
• Obtain sufficient appropriate audit evidence regarding the whose financial information reflect total assets of H2,327.99
financial information of the entities within the Group and its Lakhs as at 31 March, 2020, total revenues of H85.71 Lakhs
associate to express an opinion on the consolidated financial and net cash inflows amounting to H35.44 Lakhs for the year
statements. We are responsible for the direction, supervision ended on that date, as considered in the consolidated financial
and performance of the audit of the financial statements of statements. The above figures are before giving effects of
such entities included in the consolidated financial statements any consolidation adjustments. The consolidated financial
of which we are the independent auditors. For the other entities statements also include the Group’s share of net profit/loss of
included in the consolidated financial statements, which have H Nil for the year ended March 31, 2020, as considered in the
been audited by the other auditors, such other auditors remain consolidated financial statements, in respect of an associate,
responsible for the direction, supervision and performance of whose financial information have not been audited by us. These
the audits carried out by them. We remain solely responsible financial information are unaudited and have been furnished
for our audit opinion. to us by the Management of the Parent and our opinion on
Materiality is the magnitude of misstatements in the consolidated the consolidated financial statements, in so far as it relates
financial statements that, individually or in aggregate, makes to the amounts and disclosures included in respect of these
it probable that the economic decisions of a reasonably subsidiaries and an associate, is based solely on such unaudited
knowledgeable user of the consolidated financial statements may financial information. In our opinion and according to the
be influenced. We consider quantitative materiality and qualitative information and explanations given to us by the Management
factors in (i) planning the scope of our audit work and in evaluating of the Parent, these financial information are not material to the
the results of our work; and (ii) to evaluate the effect of any identified Group.
misstatements in the consolidated financial statements. Our opinion on the consolidated financial statements above
and our report on Other Legal and Regulatory Requirements

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