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Report of the Auditors
1. We have audited the attached consolidated balance
sheet of Atul Ltd. (the “Company”) and its subsidiary
companies and associate companies; hereinafter
referred to as the “Group” (refer Note 9 on Schedule
16 to the attached consolidated financial statements)
as at March 31, 2011, the related consolidated Profit
and Loss Account and the consolidated Cash Flow
Statement for the year ended on that date annexed
thereto, which we have signed under reference to
this report. These consolidated financial statements
are the responsibility of the Company’s management.
Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the
auditing standards generally accepted in India. Those
standards require that we plan and perform
the audit to obtain reasonable assurance about
whether the financial statements are free of material
misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also
includes assessing the accounting principles used
and significant estimates made by management,
as well as evaluating the overall financial statement
presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. We did not audit the financial statements of three
foreign subsidiary companies which constitute
total assets of
`
55.01 crores and net assets of
`
3.06 crores as at March 31, 2011, total revenues of
`
199.28 crores, net profit of
`
3.54 crores and net
cash out flows amounting to
`
1.26 crores for the
year then ended. These financial statements and
other financial information have been audited by
other auditors whose reports have been furnished
to us, and our opinion on the consolidated financial
statements to the extent they have been derived
from such financial statements is based solely on the
report of such other auditors.
4. We also did not audit the financial statements of
(i) two other subsidiary companies (including one
foreign subsidiary) included in the consolidated
financial statements, which constitute total assets of
`
15.31 crores and net assets of
`
14.53 crores
as at March 31, 2011 and total revenue of
`
1.15 crores, net loss of
`
0.10 crore and net
cash flows of
`
3.29 crores for the year then
To the Board of Directors
of Atul Ltd on the Consolidated Financial Statements of Atul Ltd
ended and (ii) seven associate companies which
constitute net profit of
`
0.54 crore for the year
then ended. These financial statements and other
financial information are unaudited and have been
prepared and certified by the management of these
companies as a result of which, any adjustments
to their balances could have consequential effect
on the attached consolidated financial statements.
However, the size of these subsidiary companies
and the associate companies, in the consolidated
position, is not significant in relative terms.
5. We report that the consolidated financial statements
have been prepared by the Company’s management
in accordance with the requirements of Accounting
Standard (AS) 21 - Consolidated Financial Statements
and Accounting Standard (AS) 23 - Accounting for
Investments in Associates in Consolidated Financial
Statements notified under sub-section 3C of Section
211of the Companies Act, 1956.
6. Based on our audit and on consideration of reports
of other auditors on separate financial statements
and on the other financial information of the
component of the Group as referred to above, and
to the best of our information and according to
the explanations given to us, in our opinion, the
attached consolidated financial statements give a
true and fair view in conformity with the accounting
principles generally accepted in India:
(a) in the case of the consolidated Balance Sheet,
of the state of affairs of the Group as at March
31, 2011;
(b) in the case of the consolidated Profit and Loss
Account, of the profit of the Group for the
year ended on that date: and
(c) in the case of the consolidated Cash Flow
Statement, of the cash flows of the Group for
the year ended on that date.
For and on behalf of
Dalal & Shah
Chartered Accountants
Firm Registration No. 102020W
S Venkatesh
Mumbai
Partner
May 13, 2011
Membership No. F-037942
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