Corporate Overview Statutory Reports Financial Statements 7 In respect of the aforesaid accounting software, after thorough testing and validation, the audit trail was not enabled for direct data changes at the database level in view of the possible impact on the efficient performance of the system. In respect of audit trail at the database level, the Company has established and maintained an adequate internal control framework over its financial reporting and based on its assessment, concluded that the internal controls for the year ended March 31, 2024, were effective. It is in the process of upgrading the system to meet the database level audit trail requirement and expects to implement this from May 01, 2024. 07. Internal financial controls The internal financial controls over financial reporting are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Financial Statements. These include policies and procedures that: a) pertain to the maintenance of records, which in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company, b) provide reasonable assurance that transactions are recorded as necessary to permit the preparation of the Financial Statements in accordance with Generally Accepted Accounting Principles and that receipts and expenditures are being made only in accordance with the authorisations of the Management and Directors of the Company, c) provide reasonable assurance regarding the prevention or timely detection of unauthorised acquisition, use, or disposition of the assets that can have a material effect on the Financial Statements. A reputed international consultancy firm has reviewed the adequacy of the internal financial controls concerning to the Financial Statements. The Management assessed the effectiveness of the internal financial controls over financial reporting as of March 31, 2024, and the Board believes that the controls are adequate. 08. Fixed deposits During 2023-24, the Company did not accept any fixed deposits. 09. Loans, guarantees, investments and security Particulars of loans, guarantees, investments and security provided are given on page numbers 137 and 139. During 2023-24, the Company has received all stipulated amounts of principal and interest as per schedule in respect of loans granted, except that, in respect of the secured loan given to Anaven LLP, the amount of ` 4.58 cr as principal and an amount of ` 1.29 cr as interest are overdue (net of tax deducted at source) as at March 31, 2024. The principal amount is secured and hence, the Company has not made any provision. As a matter of abundant precaution, the Company has made provision for the interest of ` 1.29 cr (net of tax deposited at source) in the books as at March 31, 2024, though the Company is expecting to recover the same. The Company is evaluating various options to mitigate the unprecedented adverse business conditions which Anaven LLP is facing. 10. Subsidiary, joint venture and associate companies | entities and joint operation During 2023-24, there were no changes in the number of subsidiary, joint venture and associate companies | entities and joint operation. Details of subsidiary, joint venture and associate companies | entities and joint operation are given on page number 13. 11. Related party transactions All the transactions entered into with the related parties were in the ordinary course of business and on an arm’s length basis. Details of such transactions are given on page number 151. No transactions were entered into by the Company that required disclosure in Form AOC-2. 12. Corporate social responsibility The Corporate Social Responsibility (CSR) Policy, the CSR report and the composition of the CSR Committee are given on page number 15. 13. Annual return Annual return is available on the website of the Company at: www.atul.co.in/investors/annual-general-meetings/ 14. Auditors Statutory Auditors Deloitte Haskins & Sells LLP, Chartered Accountants were reappointed as the Statutory Auditors of the Company at the 45th Annual General Meeting (AGM) held on July 29, 2022, until the conclusion of the 50th AGM. The Auditor’s Report for the financial year ended on March 31, 2024, does not contain any qualification, reservation or adverse remark. The report is enclosed with the Financial Statements in this annual report. Cost Auditors The Company has maintained cost records as required under the Act and the Companies (Cost Records and Audit ) Rules, 2014. The members ratified the appointment of R Nanabhoy & Co as the Cost Auditors for 2023-24, on July 28, 2023.
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