Atul Ltd 2008-09

Auditor’s Report to the Board of Directors of Atul Ltd on the Consolidated Financial Statements of Atul Ltd and Its Subsidiaries | Annual Report 2008-09 We have examined the attached Consolidated Balance Sheet of Atul Ltd and its subsidiaries as at March 31, 2009, the Consolidated Profit and Loss Account and the Consolidated Cash Flow Statement for the year then ended. 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. We conducted our audit in accordance with generally accepted auditing standards in India. These standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework and are free of material misstatements. 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 statements. We believe that our audit provides a reasonable basis for our opinion. We did not audit the financial statements of Atul Americas Inc., Atul Europe Ltd and Atul International Trading (Shanghai) Co. Ltd - China whose financial statements reflect total assets of Rs4,639.29 lacs as at March 31, 2009 and total revenues of Rs16,493.80 lacs for the year then ended. These financial statements have been audited by other auditors whose reports have been furnished to us, and our opinion, in so far as it relates to the amounts included in respect of the subsidiaries, is based solely on the report of the other auditors. We also did not audit the financial statement of Atul Deutschland GmbH – Germany whose financial statements are compiled by the management and are also not audited. Any adjustment to their balances could have consequential effect on the attached Consolidated Financial Statements. We are not auditing the financial statement of associate companies viz. Amal Ltd. whose financial statement as at March 31, 2008 have been audited by other auditor whose report have been furnished to us, and our opinion, in so far as it relates to the amounts included is based on the report of other auditor reflects total assets of Rs883.12 lacs as at March 31, 2008 and total revenue of Rs45.89 lacs for the year ended on that date. The financial statements of other associates as at March 31, 2008 are audited by us. We report that the Consolidated Financial Statements have been prepared by the Company in accordance with the requirements of Accounting Standard AS 21, “Consolidated Financial Statements”, Accounting Standard AS – 23 “Accounting for Investments in Associates in consolidated financial statements” issued by the Institute of Chartered Accountants of India. Based on our audit and on consideration of reports of other auditor on separate financial statements and on the other financial information of the components and to the best of our information and according to the explanations given to us, we are of the opinion that attached consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India, except, where the Company has not recognized 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. (a) in the case of the Consolidated Balance Sheet, of the state of affairs of Atul Ltd and its subsidiaries as at March 31, 2009; (b) in the case of Consolidated Profit and Loss Account, of the profit for the year then ended on that date; and (c) in the case of the Consolidated 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 87