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57
Annexure
to the Report of the Auditors
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, 2012
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 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. 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.
The other Clauses, (iii)(b), (iii)(c), and (iii)(d)
of paragraph 4 of the Companies (Auditor’s
Report) Order, 2003, as amended by the
Companies (Auditor’s Report) (Amendment)
Order, 2004, are not applicable in the case of
the Company for the year, since in our opinion
there is no matter which arises to be reported
in the aforesaid order.
(b) 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 amounts to
`
0.84 cr
and
`
0.83 cr respectively.
(c) 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.
(d) 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 weaknesses
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
`
0.05 cr 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