Comment if it is a qualified opinion/ unqualified opinion and your view of the company's practices in preparation of the financial statements?
Deloitte. nona Independent auditor's report to the shareholders of Oman Oil Marketing Company SAOG and its subsidiaries Report on the audit of the consolidated financial statements Opinion We have audited the consolidated financial statements of Oman Oil Marketing Company SAOG (he Parent Company), and its subsidiaries together referred to as the Group" which comprise the consolidated statement of financial position as at 31 December 2019, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and statement of cash sous for the year then ended, and notes to the consolidated financial statements, including summary of explanatory information In our opinion, the accompanying consolidated financial statements present fairly, in all material respects the financial position of the Group as at 31 December 2019, and its financial performance and cash flows for the year then ended in accordance with international Financial Reporting Standards (IFRSs) Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISA). Our responsibilities under those standards are further described in the auditor's responsibilities for the suit of the consolidated financial statements section of our report. We are independent of the Group dance with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the Group'consolidated financial statements in the Sultanate of Oman, and we have fulfilled out other ethical responsibilities in accordance with these requirements and 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 judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and informing our opinion there, and we do not provide a separate opinion on these matters Deloitte Independent auditor's report to the shareholders of Oman Oil Marketing Company SAOG and its subsidiaries (continued) Key audit matters (continued) Key audit matter How the matter was addressed in the audit Impact of IFRS 16 The Group has applied IFRS 16 love with We obtained an understanding of the Group's adoption effect from 1 January 2019, which resulted in of IFRS 16 and identified the internal controls changes to the accounting policies. The Group including entity level controls adopted by the Group for has elected not to restate comparative the accounting processes and systems under the new information in accordance with the transitional accounting standard. provisions contained within IFRS 16. We assessed the design and implementation of key The impact of IFRS 16 is a change in the controls pertaining to the application of IFRS 16, accounting policy for operating leases. This change in accounting policy results in right-of- We assessed the appropriateness of the discount rates use assets and lease liabilities being recognised applied in determining lease liabilities in the statement of financial position. The incremental borrowing rate ("IBR") method has We verified the accuracy of the underlying lease data been applied where the implicit rate in a lease is by agreeing a representative sample of lenses to not readily determinable original contracts or other supporting information and checked the integrity and mechanical accuracy of the The adoption of IFRS 16 has resulted in changes IFRS 16 calculations for each loase sampled through to processes, systems and controls recalculation of the expected IFRS 16 adjustment Because of the number of judgements which we considered the completeness of the lease data by have been applied and the estimates made in testing the reconciliation of the Group's lease liability determining the impact of IFRS 16, this area is to operating lease commitments disclosed in the 2018 considered as a key audit matter financial statements and considering if we had knowledge of any other contracts which may contain a The transitional impact of IFRS 16 has been lease, disclosed in Note 2 to the consolidated financial statements. We determined if the disclosure made in the financial statements pertaining to leases, including disclosure relating to the transition to IFRS 16, were in compliance with IFRSs. Other matter The consolidated financial statements of the Group for the year ended 31 December 2018 were audited by another auditor who expressed an unmodified opinion on those statements on 24 February 2019. Deloitte. Independent auditor's report to the shareholders of Oman Oil Marketing Company SAOG and its subsidiaries (continued) 3 Other information The Board of Directors (the Board") is responsible for the other information. The other information comprises the Directors Report, Corporate Governance Report and Management Discussion and Analysis Report. The other information does not include the consolidated financial statements and our audit report thereon. Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated 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. Responsibilities of Board of Directors and those charged with governance for the consolidated financial statements The Board is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS and their preparation in compliance with the relevant disclosure requirements of the Commercial Companies Law of 2019 and the disclosure requirement of issued by the Capital Market Authority of Sultanate of Oman (the "CMA"), and for such internal control as the Board determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error In preparing the consolidated financial statements, the Board is responsible for assessing the Group's ability to continue as a going concem, disclosing, as applicable matters related to going concern and using the going concern basis of accounting unless the Board either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Group's financial reporting process Deloitte Independent auditor's report to the shareholders of Oman Oil Marketing Company SAOG and its subsidiaries (continued) 4 Auditor's responsibilities for the audit of the consolidated financial statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management . Conclude on the appropriateness of management's use of the going concem basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concem. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation Come Touch Deloitte. Independent auditor's report to the shareholders of Oman Oil Marketing Company SAOG and its subsidiaries (continued) Auditor's responsibilities for the audit of the consolidated financial statements (continued) We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication Report on other legal and regulatory requirements In our opinion, the consolidated financial statements comply, in all material respects, with relevant disclosure requirements of the Commercial Companies Law of 2019, and the disclosure requirements issued by the CMA. Deloitte & Touch Deloitte & Touche (M.E.) & Co. LLC Muscat, Sultanate of Oman 16 February 2020 Deloitte. Signed by Ahmed Al Qassabi Partner
