Atul Ltd 2019-20

Corporate Overview Statutory Reports Financial Statements 01-21 22-91 92-228 100 Atul Ltd | Annual Report 2019-20 Referred to in para 15 under ‘Report on other legal and regulatory requirements’ Section of our report of even date 01. a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. b) The Company has a program of verification of fixed assets to cover all the items in a phased manner over a period of three years which, in our opinion, is reasonable having regards to size of the Company and nature of its fixed assets. Pursuant to the program, certain fixed assets were physically verified by the Management during the year. c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed | transfer deed | conveyance deed provided to us, we report that, the title deeds, comprising all the immovable properties of land and acquired buildings which are freehold, are held in the name of the Company as at the Balance Sheet date, except the following: Particulars of land and building Carrying value as at March 31, 2020 Name of entity on the title deed Freehold land ` 0.15 cr Atul Products Ltd Freehold land ` 10.59 cr Various individuals* Building in Delhi ` 0.01 cr Atul Products Ltd *process of transfer of title deeds in the name of the Company is underway. I n respect of land that have been taken on lease and disclosed as property, plant and equipment in the Standalone Financial Statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement. There are no buildings that have been taken on lease. 02. As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals, except goods-in-transit and stocks lyingwith thirdparties. Nomaterial discrepancies were noticed on physical verification. 03. According to the information and explanations given to us, the Company has granted an interest free unsecured loan to Amal Ltd, a subsidiary, which is covered in the register maintained under Section 189 Annexure B to the Independent Auditor’s Report of the Companies Act, 2013, pursuant to an Order of the Board for Industrial and Financial Reconstruction, during financial year 2013-14. The Company has not granted any loans, secured or unsecured, to other companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. In respect of aforesaid loans: a) The terms and conditions of the grant of such loans are, in our opinion, not prejudicial to interest of the Company. b) The schedule of repayment of principal has been stipulated and repayments or receipts of principal amounts have been regular as per stipulations. c) There is no amount remaining outstanding as at the Balance Sheet date. 04. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable. 05. According to the information and explanations given to us, the Company has not accepted any deposit during the year. In respect of unclaimed deposits, the Company has complied with the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013. 06. The maintenance of cost records has been specified by the Central Government under Section 148(1) of the Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit ) Rules, 2014, as amended prescribed by the Central Government under Sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete. 07. According to the information and explanations given to us, in respect of statutory dues: a) The Company has been generally regular in depositing undisputed statutory dues of the year, including provident fund (other than provident fund on certain allowances based on order of the Honourable Supreme Court of India dated