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Atul Ltd | Annual Report 2016-17
Annexure B
to the Independent Auditors’ Report
Referred to in paragraph 10 of the Independent Auditors’
Report of even date to the Members of Atul Ltd on the
Standalone Ind AS Financial Statements as of and for the year
ended March 31, 2017
01. 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) The title deeds of immovable properties other than
self-constructed immovable properties (buildings),
as disclosed in Note 2 and 3 on fixed assets to
the Ind AS Financial Statements, are held in the
name of the Company (Atul Ltd), except for the
following:
Name of entity
on the title
deed
Total
number of
Agreements
Book value
of land
(
`
cr)
Atul Products
Ltd(*)
91
0.52
Atic Industries Ltd
1
0.78
Cibatul Ltd
3
0.15
Total
95
1.45
*Out of above, 45 title deeds amounting to
`
0.07 cr form
part of Investment properties (refer Note 3).
02. The physical verification of inventory (excluding stocks
with third parties) have been conducted at reasonable
intervals by the Management during the year. In respect of
inventory lying with third parties, these have substantially
been confirmed by them. The discrepancies noticed on
physical verification of inventory as compared to book
records were not material.
03. The Company has granted an interest bearing unsecured
loan to a wholly owned subsidiary company Atul
Bioscience Ltd and an interest free unsecured loan to
Amal Ltd [Pursuant to an Order of the Board for Industrial
and Financial Reconstruction] covered in the register
maintained under Section 189 of the Act. The Company
has not granted any loan, secured or unsecured, to firms,
Limited Liability Partnerships or other parties covered in
the said register.
a) In respect of the aforesaid loans, the terms and
conditions under which such loans were granted
are not prejudicial to the Company’s interest.
b) In respect of the aforesaid loans, the schedule of
repayment of principal and payment of interest
has been stipulated, and the parties are repaying
the principal amounts, as stipulated, and are also
regular in payment of interest as applicable.
c) In respect of the aforesaid loans, there is no amount
which is overdue for more than 90 days.
04. In our opinion, and according to the information and
explanations given to us, the Company has not granted
any loans or provided any guarantees or security
in respect of any loans to any party covered under
Section 185 of the Act. In respect of loans granted
to, guarantees or security in respect of any loan and
investments made in bodies corporates by the Company,
the provisions of Section 186 of the Act have been
complied with. The Company has given an interest free
loan of
`
7.01 cr to Amal Ltd pursuant to the Order of
the Board for Industrial and Financial Reconstruction.
(refer Note 27.13).
05. The Company has not accepted any deposits from the
public within the meaning of Sections 73, 74, 75 and 76
of the Act and the Rules framed thereunder to the extent
notified.
06. Pursuant to the rules made by the Central Government of
India, the Company is required to maintain cost records
as specified under Section 148(1) of the Act in respect
of its products. We have broadly reviewed the same,
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.
07. a) According to the information and explanations given
to us and the records of the Company examined
by us, in our opinion, the Company is regular in
depositing the undisputed statutory dues, including
Provident Fund, Employees’ State Insurance, Income
Tax, Sales Tax, Service Tax, Duty of Customs, Duty of
Excise, Value Added Tax, Cess and other material
statutory dues, as applicable, with the appropriate
authorities.
b) According to the information and explanations given
to us and the records of the Company examined
by us, there are no dues of Sales-Tax, Service-Tax,
Duty of Customs and Value Added Tax which have
not been deposited on account of any dispute.
The particulars of dues of Income Tax and Duty of
Excise as at March 31, 2017 which have not been
deposited on account of a dispute, are as follows: