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Atul Ltd | Annual Report 2017-18
Annexure B
to the Independent Auditor’s Report
Referred to in paragraph 11 under ‘Report on other legal and
regulatory requirements’ Section of our report of even date.
01. a) The Company has maintained proper records
showing full particulars, including quantitative
details and situation of fixed assets.
b) The Company has a program of verification of
fixed assets to cover all the items in a phased
manner over a period of 3 years which, in our
opinion, appears reasonable having regard to the
size of the Company and the nature of its assets.
Pursuant to the program, certain fixed assets were
physically verified by the Management during the
year. According to the information and explanations
given to us, no material discrepancies were noticed
on such verification.
c) According to the information and explanations given
to us and the records examined by us and based on
the examination of the registered sale deed | transfer
deed | conveyance deed provided to us, we report
that, the title deeds, comprising all the immovable
properties of land and acquired buildings which are
freehold, are held in the name of the Company as at
the Balance Sheet date, except the following:
Particulars of
the land and
building
Carrying
value as at
March 31,
2018
Name of
entity on the
title deed
Freehold land
`
0.32 cr
Atul Products Ltd
Freehold land
`
0.02 cr
Atic Industries Ltd
Freehold land
`
1.76 cr
Agrimore Ltd
Investment
properties
`
0.94 cr
Atul products Ltd
Building in Delhi
`
0.02 cr
Atul products Ltd
In respect of immovable properties of land that have
been taken on lease and disclosed as property, plant
and equipment in the Financial Statements, the lease
agreements are in the name of the Company, where
the Company is the lessee in the agreement. There
are no buildings that have been taken on lease.
02. As explained to us, the inventories were physically verified
during the year by the Management at reasonable
intervals and no material discrepancies were noticed on
physical verification.
03. According to the information and explanations given
to us, 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 Companies Act,
2013. The Company has not granted any loans, secured
or unsecured, to firms, Limited Liability Partnerships or
other parties covered in the register maintained under
Section 189 of the Companies Act, 2013.
In respect of aforesaid loans:
a) The terms and conditions of the grant of such loans
are, in our opinion, not prejudicial to the interest of
the Company.
b) The schedule of repayment of principal and payment
of interest has been stipulated and repayments or
receipts of principal amounts and interest have been
regular as per stipulations.
c) There is no overdue amount remaining outstanding
as at the Balance Sheet date.
04. In our opinion and according to the information and
explanations given to us, the Company has complied with
the provisions of Sections 185 and 186 of the Companies
Act, 2013 in respect of grant of loans, making investments
and providing guarantees and securities, as applicable.
05. According to the information and explanations given to
us, the Company has not accepted any deposit during the
year. In respect of unclaimed deposits, the Company has
complied with the provisions of Sections 73 to 76 or any
other relevant provisions of the Companies Act, 2013.
06. The maintenance of cost records has been specified by
the Central Government under Section 148(1) of the
Companies Act, 2013. We have broadly reviewed the
cost records maintained by the Company pursuant to
the Companies (Cost Records and Audit) Rules, 2014,
as amended prescribed by the Central Government
under Sub-section (1) of Section 148 of the Companies
Act, 2013, and are of the opinion that, prima facie, the
prescribed cost records have been made and maintained.
We have, however, not made a detailed examination of
the cost records with a view to determine whether they
are accurate or complete.
07. According to the information and explanations given to
us, in respect of statutory dues:
a) The Company has been regular in depositing
undisputed statutory dues, including provident fund,
employees’ state insurance, income tax, sales tax,
service tax, customs duty, excise duty, value added
tax, cess, goods and service tax and other material
statutory dues applicable to it to the appropriate
authorities.