Atul Ltd 2015-16

125 Report on the Consolidated Financial Statements 1. We have audited the accompanying Consolidated Financial Statements of Atul Ltd (hereinafter referred to as the ‘Holding Company’) and its subsidiary companies (the Holding Company and its subsidiary companies together referred to as the ‘Group’), its jointly controlled entity and associate companies; (refer Note 28.7, 28.8 and 28.9 to the attached Consolidated Financial Statements), comprising of the Consolidated Balance Sheet as at March 31, 2016, the Consolidated Statement of Profit and Loss, the Consolidated Cash Flow Statement for the year then ended, and a summary of significant Accounting Policies and other explanatory information prepared based on the relevant records (hereinafter referred to as ‘the Consolidated Financial Statements’). Management’s responsibility for the Consolidated Financial Statements 2. The Board of Directors of the Holding Company is responsible for the preparation of these Consolidated Financial Statements in terms of the requirements of the Companies Act, 2013 (hereinafter referred to as the ‘Act’) that give a true and fair view of the Consolidated Financial position, Consolidated Financial performance and Consolidated Cash Flows of the Group including its associates companies and jointly controlled entity in accordance with Accounting Principles generally accepted in India including the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014 and Accounting Standard 30, Financial Instruments: Recognition and Measurement issued by the Institute of Chartered Accountants of India to the extent it does not contradict any other Accounting Standard referred to in Section 133 of the Act read with Rule 7 of Companies (Accounts) Rules, 2014. The Board of Directors of the Holding Company is also responsible for ensuring accuracy of records including financial information considered necessary for the preparation of Consolidated Financial Statements. The respective Board of Directors of the companies included in the Group and of its associates companies and jointly controlled entity are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and its associates companies and jointly controlled entities respectively and for preventing and detecting frauds and other irregularities; the selection and application of appropriate Accounting Policies; making judgements and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate Internal Financial Controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which has been used for the purpose of preparation of the Consolidated Financial Statements by the Directors of the Holding Company, as aforesaid. Auditors’ responsibility 3. Our responsibility is to express an opinion on these Consolidated Financial Statements based on our audit. While conducting the audit, we have taken into account the provisions of the Act and the Rules made thereunder including the Accounting Standards and matters which are required to be included in the Audit Report. 4. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. These Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Consolidated Financial Statements are free from material misstatement. 5. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Consolidated Financial Statements. The procedures selected depend on the Auditors’ judgement, including the assessment of the risks of material misstatement of the Consolidated Financial Statements, whether due to fraud or error. In making those risk assessments, the Auditor considers Internal Financial Control relevant to the preparation of the Consolidated Financial Statements of the Holding Company that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the Accounting Policies used and the reasonableness of the accounting estimates made by the Board of Directors of the Holding Company, as well as evaluating the overall presentation of the Consolidated Financial Statements. 6. We believe that the audit evidence obtained by us and the audit evidence obtained by the other Auditors in terms of their reports referred to in sub-paragraph 8 of the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the Consolidated Financial Statements. Opinion 7. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Consolidated Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the Accounting Principles generally accepted in India of the consolidated state of affairs of the Group, its associates companies and jointly controlled entity as at March 31, 2016, and their Consolidated Profit and their Consolidated Cash Flows for the year ended on that date. Other Matter 8. We did not audit the Financial Statements of 15 subsidiaries companies, and one jointly controlled entity whose Financial Statements reflect total assets of ` 189.46 cr and net assets of ` 93.35 cr as at March 31, 2016, total revenue of ` 452.21 cr, net profit ` 4.47 cr and net cash outflows amounting to ` 14.72 cr for the year ended on that date, as considered in the Consolidated Financial Statements. The Consolidated Financial Statements also include the share of net profit of ` 0.17 cr of the Group for the year ended March 31, 2016 as considered in the Consolidated Financial Statements, in respect of 15 associate companies whose Financial Statements have not been audited by us. These Financial Statements have Independent Auditors’ Report To the Members of Atul Ltd