Atul Ltd Annual Report 2016-17

Atul Ltd | Annual Report 2016-17

Independent Auditors’ Report

To the Members of Atul Ltd

Report on the Consolidated Indian Accounting

Standards (Ind AS) Financial Statements

01. We have audited the accompanying Consolidated Ind AS

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’) and its joint venture company;

refer Note 29.16 to the attached Consolidated Financial

Statements, comprising of the Consolidated Balance

Sheet as at March 31, 2017, the Consolidated Statement

of Profit and Loss (including Other Comprehensive

Income), the Consolidated Statement of Cash Flows for

the year then ended and the Consolidated Statement

of changes in equity 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

Ind AS Financial Statements).

Management’s responsibility for the Consolidated

Ind AS Financial Statements

02. The Board of Directors of the Holding Company is

responsible for the preparation of these Consolidated Ind

AS 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,

Consolidated Cash Flows and changes in equity of the

Group including its joint venture company in accordance

with Accounting Principles generally accepted in India

including the Indian Accounting Standards specified in

the Companies (Indian Accounting Standards) Rules,

2015 (as amended) under Section 133 of the Act. 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 Ind AS Financial Statements.

The respective Board of Directors of the companies

included in the Group and of its joint venture company

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 joint

venture company 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 Consolidated

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 Ind AS Financial

Statements by the Directors of the Holding Company, as

aforesaid.

Auditors’ responsibility

03. Our responsibility is to express an opinion on these

Consolidated Ind AS 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 andmatters

which are required to be included in the Audit Report.

04. We conducted our audit of the Consolidated Ind AS

Financial Statements 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.

Those Standards and pronouncements require that we

comply with ethical requirements and plan and perform

the audit to obtain reasonable assurance about whether

the Consolidated Ind AS Financial Statements are free

from material misstatement.

05. An audit involves performing procedures to obtain

audit evidence about the amount and disclosures in the

Consolidated Ind AS Financial Statements. The procedures

selected depend on the Auditors’ judgement, including

the assessment of the risks of material misstatement of

the Consolidated Ind AS 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 Ind AS 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 Ind AS Financial Statements.

06. 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

Ind AS Financial Statements.

Opinion

07. In our opinion and to the best of our information

and according to the explanations given to us, the

aforesaid Consolidated Ind AS 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 joint venture company as at March 31, 2017, and

their consolidated profit (including Other Comprehensive

Income), their consolidated cash flows and consolidated

changes in equity for the year ended on that date.

Other matter

08. We did not audit the Financial Statements of 32 subsidiary

companies whose Financial Statements reflect total assets

54.54 cr and net assets of

38.18 cr as at March 31,

2017, total revenue of

84.42 cr, net profit of

0.41 cr

and net cash flows amounting to

17.83 cr for the year

ended on that date, as considered in the Consolidated

Ind AS Financial Statements. The Consolidated Ind AS

Financial Statements also include the Group’s share of

net profit of

4.77 cr for the year ended March 31,

2017 as considered in the Consolidated Ind AS Financial

Statements, in respect of a joint venture company whose

Financial Statements have not been audited by us.

These Financial Statements have been audited by other

Auditors whose reports have been furnished to us by

the Management, and our opinion on the Consolidated

Ind AS Financial Statements insofar as it relates to the