Atul Ltd 2008-09

Annexure to Auditors’ Report | Annual Report 2008-09 Referred to in paragraph 3 of the Auditors’ Report of even date to the members of Atul Ltd on the financial statements for the year ended March 31, 2009 i. (a) The Company has generally maintained proper records showing particulars including quantitative details and situation of fixed assets; (b) As explained to us, fixed assets, according to the practice of the Company, are physically verified by the management at reasonable intervals, in a phased verification-programme, which, in our opinion, is reasonable, looking to the size of the Company and the nature of its business. According to the information and explanations given to us, discrepancies noticed on physical verification have been adjusted in the books of account; (c) The Company has not disposed off any substantial part of its fixed assets so as to affect its going concern status; ii. (a) As explained to us, inventories have been physically verified during the year by the management; (b) The procedures explained to us, which are followed by the management for physical verification of inventories, are, in our opinion, reasonable and adequate in relation to the size of the Company and the nature of its business; (c) On the basis of our examination of the inventory records of the Company, we are of the opinion that, the Company is maintaining proper records of its inventory. Discrepancies which were noticed on physical verification of inventory as compared to book records, have been properly dealt with in the books of account; iii. (a) The Company has not granted any loan, secured or unsecured, to the companies, firms or other parties covered in the register maintained under section 301 of the Companies Act 1956; (b) According to the information and explanations given to us, the Company has taken unsecured loan (in the nature of fixed deposits) from party listed in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs1.75 lacs and the year end balance of loan taken from such parties was Rs1.75 lacs. The Company has not taken any loan, secured or unsecured, from the companies and firms covered in the register maintained under Section 301 of the said Act; (c) In our opinion, the rate of interest and other terms and conditions on which loan has been taken from the parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima-facie, prejudicial to the interest of the company; (d) The Company is regular in repaying the principal amounts as stipulated and have been regular in the payment of interest; (e) There is no overdue amount of loans taken from the parties listed in the register maintained under section 301 of the Companies Act, 1956; iv. In our opinion and according to the information and explanations given to us, there are generally adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventory, fixed assets and for sale of goods and services. During the course of our previous assessment, no major weakness in internal control system, had come to our notice; v. (a) On the basis of the audit procedures performed by us, and according to the information, explanations and representations given to us, we are of the opinion that, the particulars of contracts or arrangement in which directors were interested and which were required to be entered in the register maintained under Section 301 of the Companies Act, 1956, have been so entered; (b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contract or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 exceeding the value of rupees five lacs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at that time; vi. In our opinion and according to the information and explanations given to us the company has complied with the directives issued by Reserve Bank of India and the Provisions of section 58A and 58AA or any other relevant provision of the Act and the rules framed there-under since 49