Atul Ltd 2012-13

57 Annexure to the Report of the Auditors Referred to in paragraph 7 of the Report of the Auditors of even date to the Members of Atul Ltd on the Financial Statements as of and for the year ended March 31, 2013 i. (a) The Company is maintaining proper records showing full particulars, including quantitative GHWDLOV DQG VLWXDWLRQ RI À[HG DVVHWV E 7KH À[HG DVVHWV DUH SK\VLFDOO\ YHULÀHG E\ the Management according to a phased programme designed to cover all the items over a period of 3 years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the À[HG DVVHWV KDV EHHQ SK\VLFDOO\ YHULÀHG E\ WKH Management during the year and no material discrepancies have been noticed on such YHULÀFDWLRQ (c) In our opinion, and according to the information and explanations given to us, a VXEVWDQWLDO SDUW RI À[HG DVVHWV KDV QRW EHHQ disposed off by the Company during the year. ii. (a) The inventory (excluding stocks with third SDUWLHV KDV EHHQ SK\VLFDOO\ YHULÀHG E\ WKH Management during the year. In respect of inventory lying with third parties, these have VXEVWDQWLDOO\ EHHQ FRQÀUPHG E\ WKHP ,Q RXU RSLQLRQ WKH IUHTXHQF\ RI YHULÀFDWLRQ LV reasonable. (b) In our opinion, the procedures of physical YHULÀFDWLRQ RI LQYHQWRU\ IROORZHG E\ WKH Management are 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, in our opinion, the Company is maintaining proper records of inventory. The GLVFUHSDQFLHV QRWLFHG RQ SK\VLFDO YHULÀFDWLRQ of inventory as compared to book records were not material. iii. (a) The Company has not granted any loans, VHFXUHG RU XQVHFXUHG WR FRPSDQLHV ÀUPV RU other parties covered in the register maintained under Section 301 of the Act. Therefore, the provisions of Clause 4(iii) (b), (c) and (d) of the said Order are not applicable. (b) The Company has not taken any loans, secured RU XQVHFXUHG IURP FRPSDQLHV ÀUPV RU RWKHU parties covered in the register maintained under Section 301 of the Act. Therefore, the provisions of Clause 4(iii) (f) and (g) of the said Order are not applicable. iv. In our opinion, and according to the information and explanations given to us, there is an adequate Internal Control System commensurate with the size of the Company and the nature of its business IRU WKH SXUFKDVH RI LQYHQWRU\ DQG À[HG DVVHWV DQG for the sale of goods and services. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, we have neither come across, nor have been informed of, any continuing failure to correct major weaknesses in the aforesaid internal control system. v. (a) According to the information and explanations given to us, there have been no contracts or arrangements that need to be entered in the register maintained under Section 301 of the Act. (b) In our opinion, and according to the information and explanations given to us, there are no transactions made in pursuance of such contracts or arrangements exceeding the value of ` 0.05 cr in respect of any party during the year. vi. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Sections 58A and 58AA or any other relevant provisions of the Act and the ‘Companies (Acceptance of Deposits) Rules, 1975’ with regard to the deposits accepted from the public. According to the information and explanations given to us, no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal on the Company in respect of the aforesaid deposits. vii. In our opinion, the Company has an internal audit system commensurate with its size and the nature of its business. viii. We have broadly reviewed the books of account maintained by the Company in respect of products where, pursuant to the rules made by the Central Government of India, the maintenance of cost records has been prescribed under clause (d) of sub- section (1) of Section 209 of the Act, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.