untitled

Annexure

to the Report of the Auditors

Referred to in paragraph 3 of the Auditors’ Report of

even date to the Members of Atul Ltd on the financial

statements for the year ended March 31, 2011

i. (a) The Company is generally maintaining proper

records showing full particulars, including

quantitative details and situation, of fixed

assets.

(b) The fixed assets are physically verified by

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

fixed assets has been physically verified by the

Management during the year and no material

discrepancies between the book records and

the physical inventory have been noticed.

(c) In our opinion and according to the information

and explanations given to us, a substantial part

of fixed assets has not been disposed of by the

Company during the year.

ii. (a) The 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) In 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) On 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. (a) The Company has not granted any loans,

secured or unsecured, to companies, firms or

other parties covered in the register maintained

under Section 301 of the Act.

(b) The Company has taken unsecured loans

(in nature of Fixed Deposits), from 5 parties

covered in the register maintained under

Section 301 of the Act. The maximum

amount involved during the year and the

year-end balance of such loans amounts to

0.90 crore and

0.90 crore respectively. The

Company has not taken any loans, secured or

unsecured, from companies and firms covered

in the register maintained under Section 301

of the Act.

(c) In our opinion, the rate of interest and other

terms and conditions of such loans are not

prima facie prejudicial to the interest of the

Company.

(d) In respect of the aforesaid loans, the Company

is regular in repaying the principal amounts as

stipulated and is also regular in payment of

interest, where 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 for

the purchase of inventory, 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, no major weaknesses

have been noticed or reported.

v. (a) In our opinion and according to the information

and explanations given to us, the particulars

of contracts or arrangements referred to in

Section 301 of the Act have been entered in

the register required to be maintained under

that section.

(b) In our opinion and according to the information

and explanations given to us, the transactions

made in pursuance of such contracts or

arrangements and exceeding the value of

5 lacs in respect of any party during the year

have been made at prices which are reasonable

having regard to the prevailing market prices at

the relevant time.

vi. In our opinion and according to the information

and explanations given to us, the Company has

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