Atul-2013-14

Annexure

to the Independent Auditors’ Report

Referred to in paragraph 7 of the Independent Auditors’

Report of even date to the Members of Atul Ltd on the

Financial Statements as of and for the year ended March

31, 2014

(a) The Company is 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 have been noticed on such

verification.

(c) In our opinion, and according to the

information and explanations given to us, a

substantial part of fixed assets has not been

disposed off 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.

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. Therefore, the

provisions of Clause 4 (iii) (b), (c) and (d) of the

said Order are not applicable to the Company.

(b) The Company has not taken any loans, secured

or unsecured, from companies, firms or other

parties covered in the register maintained

under Section 301 of the Act. Therefore, the

provisions of Clause 4 (iii) (f) and (g) of the said

Order are not 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 and 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, we have neither come

across, nor have been informed of, any continuing

failure to correct major weaknesses in the aforesaid

Internal Control System.

v. (a) According to the information and explanations

given to us, there have been no contracts or

arrangements that need to be entered in the

register maintained under Section 301 of the

Act.

(b) In our opinion, and according to the

information and explanations given to us,

there are no transactions made in pursuance

of such contracts or arrangements exceeding

the value of

0.05 cr in respect of any party

during the year.

vi. In our opinion, and according to the information

and explanations given to us, the Company has

complied with the provisions of Sections 58A and

58AA or any other relevant provisions of the Act

and the ‘Companies (Acceptance of Deposits)

Rules, 1975’ with regard to the deposits accepted

from the public. According to the information and

explanations given to us, no order has been passed

by the Company Law Board or National Company

Law Tribunal or Reserve Bank of India or any Court

or any other Tribunal on the Company in respect of

the aforesaid deposits.

vii. In our opinion, the Company has an internal audit

system commensurate with its size and the nature

of its business.

viii. We have broadly reviewed the books of account

maintained by the Company in respect of products

where, pursuant to the rules made by the Central

Government of India, the maintenance of cost

records has been prescribed under Clause (d) of Sub-

Section (1) of Section 209 of the Act, and are of the

opinion that, prima facie, the prescribed accounts

and records have been made and maintained. We

have not, however, made a detailed examination of

the records with a view to determine whether they

are accurate or complete.