Atul Ltd 2008-09

Report of the Auditors to the Members 1. We have audited the attached Balance Sheet of Atul Ltd as at March 31, 2009 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the management of the Company. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. As required by the Companies (Auditors’ Report) Order, 2003 as amended by the Companies (Auditors’ Report) (Amendment) Order, 2004 (together the ‘Order’) issued by the Central Government of India in terms of sub-section (4A) of Section 227 of ‘The Companies Act, 1956’ of India (the ‘Act’) and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. 4. Further to our comments in the Annexure referred to in paragraph 3, above: a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit; b) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books; c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account; d) In our opinion, the Balance Sheet, Profit and Loss Account and the Cash Flow Statement dealt with by this report, comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 except, where the Company has not recognised the mark-to-market losses of Rs5,484.09 lacs on its derivative contracts to hedge highly probable forecast transactions and firm commitments not covered under AS-11, either by way of creating a Hedge Reserve as recommended by the ICAI or by prudently charging the same to the Profit and Loss Account as recommended under AS-1, consequently the profit for the year and the reserves and surplus at the close of the year, both resulting higher by Rs5,484.09 lacs; e) On the basis of written representations received from the Directors, as on March 31, 2009, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as at March 31, 2009 from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956; f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts subject to the matter referred to in paragraph 4(d) above and read together with other notes thereon, give the information required by the Companies Act, 1956, in the manner so required and the said Accounts give a true and fair view in conformity with the accounting principles generally accepted in India; (i) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2009; (ii) in the case of the Profit and Loss Account, of the Profit for the year ended on that date; and (iii) in the case of the Cash Flow Statement of the Cash Flows for the year ended on that date; For and on behalf of Dalal & Shah Chartered Accountants (Ashish S Dalal) Mumbai Partner June 05, 2009 Membership No 033596 48