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125
Report on the Consolidated Financial Statements
1. We have audited the accompanying Consolidated
Financial Statements of Atul Ltd (hereinafter referred to
as the ‘Holding Company’) and its subsidiary companies
(the Holding Company and its subsidiary companies
together referred to as the ‘Group’), its jointly controlled
entity and associate companies; (refer Note 28.7,
28.8 and 28.9 to the attached Consolidated Financial
Statements), comprising of the Consolidated Balance
Sheet as at March 31, 2016, the Consolidated Statement
of Profit and Loss, the Consolidated Cash Flow Statement
for the year then ended, and a summary of significant
Accounting Policies and other explanatory information
prepared based on the relevant records (hereinafter
referred to as ‘the Consolidated Financial Statements’).
Management’s responsibility for the Consolidated
Financial Statements
2. The Board of Directors of the Holding Company is
responsible for the preparation of these Consolidated
Financial Statements in terms of the requirements of
the Companies Act, 2013 (hereinafter referred to as the
‘Act’) that give a true and fair view of the Consolidated
Financial position, Consolidated Financial performance
and Consolidated Cash Flows of the Group including
its associates companies and jointly controlled entity
in accordance with Accounting Principles generally
accepted in India including the Accounting Standards
specified under Section 133 of the Act read with
Rule 7 of the Companies (Accounts) Rules, 2014
and Accounting Standard 30, Financial Instruments:
Recognition and Measurement issued by the Institute
of Chartered Accountants of India to the extent it
does not contradict any other Accounting Standard
referred to in Section 133 of the Act read with Rule 7
of Companies (Accounts) Rules, 2014. The Board of
Directors of the Holding Company is also responsible
for ensuring accuracy of records including financial
information considered necessary for the preparation of
Consolidated Financial Statements. The respective Board
of Directors of the companies included in the Group
and of its associates companies and jointly controlled
entity are responsible for maintenance of adequate
accounting records in accordance with the provisions
of the Act for safeguarding the assets of the Group and
its associates companies and jointly controlled entities
respectively and for preventing and detecting frauds
and other irregularities; the selection and application
of appropriate Accounting Policies; making judgements
and estimates that are reasonable and prudent; and
the design, implementation and maintenance of
adequate Internal Financial Controls, that were operating
effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and
presentation of the Financial Statements that give a true
and fair view and are free from material misstatement,
whether due to fraud or error, which has been used for
the purpose of preparation of the Consolidated Financial
Statements by the Directors of the Holding Company, as
aforesaid.
Auditors’ responsibility
3. Our responsibility is to express an opinion on these
Consolidated Financial Statements based on our audit.
While conducting the audit, we have taken into account
the provisions of the Act and the Rules made thereunder
including the Accounting Standards and matters which
are required to be included in the Audit Report.
4. We conducted our audit in accordance with the Standards
on Auditing specified under Section 143(10) of the Act
and other applicable authoritative pronouncements
issued by the Institute of Chartered Accountants of India.
These Standards and pronouncements require that we
comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether
the Consolidated Financial Statements are free from
material misstatement.
5. An audit involves performing procedures to obtain
audit evidence about the amounts and disclosures in
the Consolidated Financial Statements. The procedures
selected depend on the Auditors’ judgement, including
the assessment of the risks of material misstatement
of the Consolidated Financial Statements, whether due
to fraud or error. In making those risk assessments, the
Auditor considers Internal Financial Control relevant to
the preparation of the Consolidated Financial Statements
of the Holding Company that give a true and fair view, in
order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the
appropriateness of the Accounting Policies used and the
reasonableness of the accounting estimates made by the
Board of Directors of the Holding Company, as well as
evaluating the overall presentation of the Consolidated
Financial Statements.
6. We believe that the audit evidence obtained by us and the
audit evidence obtained by the other Auditors in terms of
their reports referred to in sub-paragraph 8 of the Other
Matters paragraph below, is sufficient and appropriate to
provide a basis for our audit opinion on the Consolidated
Financial Statements.
Opinion
7. In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
Consolidated Financial Statements give the information
required by the Act in the manner so required and give
a true and fair view in conformity with the Accounting
Principles generally accepted in India of the consolidated
state of affairs of the Group, its associates companies
and jointly controlled entity as at March 31, 2016, and
their Consolidated Profit and their Consolidated Cash
Flows for the year ended on that date.
Other Matter
8. We did not audit the Financial Statements of 15
subsidiaries companies, and one jointly controlled entity
whose Financial Statements reflect total assets of
`
189.46
cr and net assets of
`
93.35 cr as at March 31, 2016, total
revenue of
`
452.21 cr, net profit
`
4.47 cr and net cash
outflows amounting to
`
14.72 cr for the year ended
on that date, as considered in the Consolidated Financial
Statements. The Consolidated Financial Statements also
include the share of net profit of
`
0.17 cr of the Group
for the year ended March 31, 2016 as considered in
the Consolidated Financial Statements, in respect of 15
associate companies whose Financial Statements have
not been audited by us. These Financial Statements have
Independent Auditors’ Report
To the Members of Atul Ltd