Page 134 - flipbook-ubp-IR

INTRODUCTION ABOUT US MANAGEMENT APPROACH
INDEPENDENT AUDITOR’S REPORT
TO THE SHAREHOLDERS OF
The United Basalt Products Limited
Report on the audit of the consolidated and separate financial statements
Opinion
We have audited the consolidated and separate financial statements of The United Basalt Products Limited (the “Company” and the “Public Interest Entity”) and its subsidiaries (the “Group”) set out on pages 136 to 208, which comprise the consolidated and separate statements of financial position as at June 30, 2022, and the consolidated and separate statements of profit or loss and other comprehensive income, consolidated and separate statements of changes in equity and consolidated and separate statements of cash flows for the year then ended, and notes to the consolidated and separate financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated and separate financial statements give a true and fair view of the financial position of the Group and the Company as at June 30, 2022, and of their consolidated and separate financial performance and consolidated and separate cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) and comply with the requirements of the Mauritius Companies Act 2001 and the Financial Reporting Act 2004.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements section of our report. We are independent of the Group in accordance with the International Ethics Standard Board for International Accountants’ Code of Ethics for Professional Accountants (including International Independence Standards) (the “IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were 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 consolidated and separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Employee benefit liabilities
Key audit matters
How our audit addressed the key audit matters
The Group and the Company have defined benefit plans and residual liability arising from Employment/Workers Right Acts for its employees and have recognised an employee benefit liabilities of Rs 419.6 million and Rs 323.6 million respectively at June 30, 2022.
The management has applied judgement in determining the employee benefit liabilities and has involved an actuary to assist with the IAS 19 provisions and disclosures. Employee benefit liabilities are considered a key audit matter due to the significance of the balance to the consolidated and separate financial statements as a whole, combined with the judgement associated with determining the amount of provision.
The significant assumptions used in respect of the employee benefit liabilities have been disclosed in Note 20.
We assessed the competence, capabilities and objectivity of management’s independent actuaries and verified the qualifications of the actuaries.
The procedures performed included the following:
• Assessed and challenged the assumptions that the management made in determining the present value of the liabilities and fair value of plan assets;
• Independently recalculated the discount rate used based on the duration of the employee benefit liabilities;
• Compared the annual salary increment with historical data; and
• Verified the data used by the actuaries with the payroll report for completeness and accuracy.
132
UBP INTEGRATED REPORT 2022