In respect of the samples selected tested that the revenue has been recognized as per the sales agreements Performed sample tests of individual sales transaction and traced to sales invoices sales orders and other related documents. Assessed the design and tested the operating effectiveness of internal controls related to sales and related rebates and discounts The risk is therefore that revenue is not recognised in accordance with Ind AS 115 Revenue from contracts with customers' and accordingly it was determined to be a key audit matter in our audit of the financial statements.Ĭonsidered the appropriateness of Company's revenue recognition policy and its compliance in terms of Ind AS 115 Revenue from contracts with customers' Our audit procedures included the following: 2020- 21 the Company's Statement of Profit and Loss included Sales of INR 25357.39 lakhs The terms of sales arrangements including the timing of transfer of control the nature of discount and rebates arrangements and delivery specifications create complexity and judgment in determining sales revenues.
In determining the sales price the Company considers the effects of rebates and discounts (variable consideration). The Company recognizes revenues when control of the goods is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. Revenue from sale of goods (as described in Note 23 to the financial statements) How our audit addressed the key audit matter We have determined the matters described below to be the key audit mattersto be communicated in our report.
Sale of goods act s 52 professional#
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. Our opinion is not modified inrespect of this matter. We draw attention to Note 44 to the financial statements which explainthe management's assessment of the financial & operational impact due to thelock-down and conditions related to the COVID 19 and its consequential impact onthe carrying values of assets as at 31st March 2021. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the financial statements.
Sale of goods act s 52 code#
We are independent of the Company in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. Responsibilities for the Audit of the Financial Statements section ofour report. Ourresponsibilities under those Standards are further described in the Auditor's We conducted our audit of the financial statements in accordance withthe Standards on Auditing specified under section 143(10) of the Act (SAs). In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2021 its profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate. We have audited the accompanying financial statements of Linc Pen &Plastics Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2021 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year ended on thatdate and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the financial statements").
Report on the Audit of the Financial Statements Opinion