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Atul Ltd | Annual Report 2015-16
Annexure A
to the Independent Auditors’ Report
Referred to in paragraph 10(f) of the Independent
Auditors’ Report of even date to the Members of Atul
Ltd on the Standalone Financial Statements for the year
ended March 31, 2016.
Report on the Internal Financial Controls under
Clause (i) of Sub-section 3 of Section 143 of the
Act
1. We have audited the Internal Financial
Controls over financial reporting of Atul Ltd
(‘Company’) as of March 31, 2016 in conjunction
with our audit of the Standalone Financial
Statements of the Company for the year ended on
that date.
Management’s Responsibility for Internal
Financial Controls
2. The Management of the Company is responsible
for establishing and maintaining Internal Financial
Controls based on the internal control over
financial reporting criteria established by the
Company considering the essential components
of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial
Reporting issued by the Institute of Chartered
Accountants of India (ICAI). These responsibilities
include the design, implementation and
maintenance of adequate Internal Financial
Controls that were operating effectively for ensuring
the orderly and efficient conduct of its business,
including adherence to the policies of the Company,
the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and
completeness of the accounting records, and the
timely preparation of reliable financial information,
as required under the Act.
Auditors’ Responsibility
3. Our responsibility is to express an opinion on the
Internal Financial Controls over financial reporting
of the Company based on our audit. We conducted
our audit in accordance with the Guidance Note on
Audit of Internal Financial Controls Over Financial
Reporting (‘Guidance Note’) and the Standards on
Auditing deemed to be prescribed under Section
143(10) of the Act to the extent applicable to an
audit of Internal Financial Controls, both applicable
to an audit of Internal Financial Controls and
both issued by the ICAI. These Standards and the
Guidance Note require that we comply with ethical
requirements and plan and perform the audit
to obtain reasonable assurance about whether
adequate Internal Financial Controls over financial
reporting was established and maintained and if
such controls operated effectively in all material
respects.
4. Our audit involves performing procedures to
obtain audit evidence about the adequacy of the
Internal Financial Controls system Over Financial
Reporting and their operating effectiveness. Our
audit of Internal Financial Controls over financial
reporting included obtaining an understanding
of Internal Financial Controls over financial
reporting, assessing the risk that a material
weakness exists, and testing and evaluating the
design and operating effectiveness of internal
control based on the assessed risk. The procedures
selected depend on the Auditor’s judgement,
including the assessment of the risks of material
misstatement of the Financial Statements, whether
due to fraud or error.
5. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a
basis for our audit opinion on the Internal Financial
Controls system Over Financial Reporting of the
Company.
Meaning of Internal Financial Controls Over
Financial Reporting
6. The Internal Financial Control over financial
reporting of a Company is a process designed
to provide reasonable assurance regarding the
reliability of financial reporting and the preparation
of Financial Statements for external purposes in
accordance with Generally Accepted Accounting
Principles. The Internal Financial Control over
financial reporting of a Company includes those
policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and
dispositions of the assets of the Company; (2)
provide reasonable assurance that transactions are
recorded as necessary to permit preparation of the
Financial Statements in accordance with Generally
Accepted Accounting Principles, and that receipts
and expenditures of the Company are being
made only in accordance with authorisations of
Management and the Directors of the Company;
and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised
acquisition, use, or disposition of the assets of the
Company that could have a material effect on the
Financial Statements.