Atul Ltd 2014-15

Atul Ltd | Annual Report 2014-15 Annexure to the Independent Auditors’ Report Referred to in paragraph 9 of the Independent Auditors’ Report of even date to the Members of Atul Ltd on the Standalone Financial Statements for the year ended March 31, 2015. i) a) T he Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets. b) T he fixed assets are physically verified by the Management according to a phased program 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 program, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification. ii) a) T he inventory (excluding stocks with third parties) has been physically verified by the Management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. In our opinion, the frequency of verification is reasonable. b) I n our opinion, the procedures of physical verification of inventory followed by the Management are reasonable and adequate in relation to the size of the Company and the nature of its business. c) O n the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material. iii) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3(iii)(a) and (iii)(b) of the said Order are not applicable to the Company. 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 for the purchase of inventory and fixed assets and 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) The Company has not accepted any deposit from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extent notified. vi) 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 specified under sub-section (1) of Section 148 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. vii) a) A ccording to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing the undisputed statutory dues, including Employees’ state insurance, Provident Fund, customs duty, excise duty, sales tax, service tax, income tax, wealth tax, value added tax and other material statutory dues, as applicable, with the appropriate authorities. b) A ccording to the information and explanations given to us and the records of the Company examined by us, there are no dues of sales tax, service tax, and wealth tax, which have not been deposited on account of any dispute. The particulars of dues of customs duty, excise duty and income tax as at March 31, 2015 which have not been deposited on account of a dispute, are as follows: