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Safety, HealthandEnvironment Serving the Society Directors’ Report Management Discussion andAnalysis Report on Corporate Governance
Financial Statements
Referred to in paragraph 3 of the Auditors’ Report of
even date to the members of Atul Ltd on the financial
statements for the year ended March 31, 2010
i. (a) The Company is generally 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
between the book records and the physical
inventory have been noticed.
(c) In our opinion and according to the information
and explanations given to us, a substantial part
of fixed assets has not been disposed of by the
Company during the year.
ii. (a) The inventory (excluding stockswith thirdparties)
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. In 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.
(e) The Company has taken unsecured loans (in
nature of Fixed Deposits), from 5 parties covered
in the register maintained under Section 301 of
the Act. The maximum amount involved during
the year and the year-end balance of such loans
aggregates to Rs 0.90 crore and Rs 0.90 crore
respectively. The Company has not taken any
loans, secured or unsecured, from companies
and firms covered in the register maintained
under Section 301 of the Act.
(f) In our opinion, the rate of interest and other terms
and conditions of such loans are not prima facie
prejudicial to the interest of the Company.
(g) In respect of the aforesaid loans, the Company
is regular in repaying the principal amounts
as stipulated and is also regular in payment of
interest, where 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, 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, no major weakness have
been noticed or reported.
v. (a) In our opinion and according to the information
and explanations given to us, the particulars of
contracts or arrangements referred to in Section
301 of the Act have been entered in the register
required to be maintained under that section.
(b) In our opinion and according to the information
and explanations given to us, the transactions
made in pursuance of such contracts or
arrangements and exceeding the value of
Rupees Five Lakhs in respect of any party during
the year have been made at prices which are
reasonable having regard to the prevailing
market prices at the relevant time.
vi. In our opinion and according to the information
and explanations given to us, the Company has
complied with the provisions of Sections 58A
Annexure
to the Report of the Auditors