Page 56 - Honeywell Annual Report 2021 comm 10 09 v17a.cdr

Report of the Independent Auditors
To the Members of Honeywell Flour Mills Plc cont’d

Key Audit Matter

Key Audit Matter How our audit addressed the key audit matter
Borrowings We adopted a substantive test approach to check the correctness,
completeness and the figures of borrowings included in the financial
A s a t 3 1 M a r c h , 2 0 2 1 t h e
statements. Specifically, we:
company's total bank loans facility
stood at N60.48 billion. Ÿ Obtained and reviewed all existing loan covenant establishing the
facilities;
We considered borrowing a key
audit matter because of its Ÿ Reviewed all loans amortisation schedule to ensure they are in
materiality on the company's agreement with the respective loan covenants;
Financial position as at 31 March,
Ÿ Reviewed all correspondences with the banks to establish
2021.
communication around loan performances during the year;
Ÿ Reviewed loan repayment during the year to confirm that they agree with
the loan covenants and the relevant amortisation schedule;
Ÿ Reviewed the appropriateness of the foreign exchange rate used in
converting the foreign currency denominated facilities;

Ÿ Obtained an independent confirmation from the banks stating the
balances and the status of the facilities at the year-end; and

Ÿ Reviewed the disclosures on borrowings for reasonableness.
Our audit test did not reveal any material misstatement.

Other Information
The directors are responsible for the other information. The other information comprises the information included in
the document titled "Honeywell Flour Mills Plc. financial statements for the year ended March 31, 2021", which includes
the Directors' Report and the Audit Committee's Report as required by the Companies and Allied Matters Act 2020
and the Detailed Income Statement, which we obtained prior to the date of this report. The other information
does not include the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we do not express an audit
opinion or any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information; we are required to report
that fact. We have nothing to report in this regard.

Going Concern
The Company's financial statements have been prepared using the going concern basis of accounting. The use of
this basis of accounting is appropriate unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Management has not identified a material uncertainty that may cast significant doubt on the entity's ability to
continue as a going concern, and accordingly none is disclosed in the financial statements. Based on our audit
of the financial statements, we also have not identified such a material uncertainty.

World of Possibilities HONEYWELL FLOUR MILLS | ANNUAL REPORT | 2021 57