Atul AR 2018-19 Cover to Cover high res

Annexure A

to the Independent Auditor’s Report

Referred to in para 11(f) under ‘Report on other legal and

regulatory requirements’ section of our report of even date.

¤ĚƎūƑƥ ūŠ ƥĺĚ ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ ČūŠƥƑūŕƙ ūǄĚƑ ǛŠîŠČĿîŕ

reporting under Clause (i) of Sub-section 3 of Section

143 of the Companies Act, 2013 (the Act)

ǦǧȦ ØĚ ĺîǄĚ îƭēĿƥĚē ƥĺĚ ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ ČūŠƥƑūŕƙ ūǄĚƑ

ǛŠîŠČĿîŕ ƑĚƎūƑƥĿŠij ūlj ƥƭŕ gƥē ȳƥĺĚ ūŞƎîŠǋȴ îƙ ūlj

March 31, 2019 in conjunction with our audit of the

Standalone Financial Statements of the Company for

the year ended on that date.

qîŠîijĚŞĚŠƥɄƙ ƑĚƙƎūŠƙĿċĿŕĿƥǋ ljūƑ ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ

controls

02. The Management of the Company is responsible for

ĚƙƥîċŕĿƙĺĿŠij îŠē ŞîĿŠƥîĿŠĿŠij ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ ČūŠƥƑūŕƙ

ċîƙĚē ūŠ ƥĺĚ ĿŠƥĚƑŠîŕ ČūŠƥƑūŕƙ ūǄĚƑ ǛŠîŠČĿîŕ ƑĚƎūƑƥĿŠij

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 (the Guidance Note) issued by

the Institute of Chartered Accountants of India. These

responsibilities include the design, implementation and

ŞîĿŠƥĚŠîŠČĚ ūlj îēĚƐƭîƥĚ ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ ČūŠƥƑūŕƙ

that were operating effectively for ensuring the

ūƑēĚƑŕǋ îŠē ĚljǛČĿĚŠƥ ČūŠēƭČƥ ūlj Ŀƥƙ ċƭƙĿŠĚƙƙȡ ĿŠČŕƭēĿŠij

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

ūlj ƑĚŕĿîċŕĚ ǛŠîŠČĿîŕ ĿŠljūƑŞîƥĿūŠȡ îƙ ƑĚƐƭĿƑĚē ƭŠēĚƑ ƥĺĚ

Companies Act, 2013.

Auditor’s responsibility

03. Our responsibility is to express an opinion on the

ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ ČūŠƥƑūŕƙ ūlj ƥĺĚ ūŞƎîŠǋ ūǄĚƑ

ǛŠîŠČĿîŕ ƑĚƎūƑƥĿŠij ċîƙĚē ūŠ ūƭƑ îƭēĿƥȦ ØĚ ČūŠēƭČƥĚē

our audit in accordance with the Guidance Note

issued by the Institute of Chartered Accountants

of India and the Standards on Auditing prescribed

ƭŠēĚƑ ¬ĚČƥĿūŠ ǧǪǩȳǧǦȴ ūlj ƥĺĚ ūŞƎîŠĿĚƙ Čƥȡ ǨǦǧǩȡ ƥū

ƥĺĚ ĚǊƥĚŠƥ îƎƎŕĿČîċŕĚ ƥū îŠ îƭēĿƥ ūlj ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ

controls. Those Standards and the Guidance Note

require that we comply with ethical requirements

and plan and perform the audit to obtain reasonable

îƙƙƭƑîŠČĚ îċūƭƥ ǅĺĚƥĺĚƑ îēĚƐƭîƥĚ ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ

ČūŠƥƑūŕƙ ūǄĚƑ ǛŠîŠČĿîŕ ƑĚƎūƑƥĿŠij ǅîƙ ĚƙƥîċŕĿƙĺĚē îŠē

maintained and if such controls operated effectively in

all material respects.

ǦǪȦ ~ƭƑ îƭēĿƥ ĿŠǄūŕǄĚƙ ƎĚƑljūƑŞĿŠij ƎƑūČĚēƭƑĚƙ ƥū ūċƥîĿŠ

audit evidence about the adequacy of the internal

ǛŠîŠČĿîŕ ČūŠƥƑūŕƙ ƙǋƙƥĚŞ ūǄĚƑ ǛŠîŠČĿîŕ ƑĚƎūƑƥĿŠij îŠē

their operating effectiveness. Our audit of internal

ǛŠîŠČĿîŕ ČūŠƥƑūŕƙ ūǄĚƑ ǛŠîŠČĿîŕ ƑĚƎūƑƥĿŠij ĿŠČŕƭēĚē

ūċƥîĿŠĿŠij îŠ ƭŠēĚƑƙƥîŠēĿŠij ūlj ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ

ČūŠƥƑūŕƙ ūǄĚƑ ǛŠîŠČĿîŕ ƑĚƎūƑƥĿŠijȡ îƙƙĚƙƙĿŠij ƥĺĚ ƑĿƙŒ ƥĺîƥ

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 Standalone Financial Statements whether due

to fraud or error.

05. We believe that the audit evidence we have obtained

Ŀƙ ƙƭljǛČĿĚŠƥ îŠē îƎƎƑūƎƑĿîƥĚ ƥū ƎƑūǄĿēĚ î ċîƙĿƙ ljūƑ ūƭƑ

îƭēĿƥ ūƎĿŠĿūŠ ūŠ ƥĺĚ ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ ČūŠƥƑūŕƙ ƙǋƙƥĚŞ

ūǄĚƑ ǛŠîŠČĿîŕ ƑĚƎūƑƥĿŠij ūlj ƥĺĚ ūŞƎîŠǋȦ

qĚîŠĿŠij ūlj ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ ČūŠƥƑūŕƙ ūǄĚƑ ǛŠîŠČĿîŕ

reporting

ǦǬȦ ¹ĺĚ ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ ČūŠƥƑūŕ ūǄĚƑ ǛŠîŠČĿîŕ ƑĚƎūƑƥĿŠij ūlj

a company is a process designed to provide reasonable

îƙƙƭƑîŠČĚ ƑĚijîƑēĿŠij ƥĺĚ ƑĚŕĿîċĿŕĿƥǋ ūlj ǛŠîŠČĿîŕ

reporting and the preparation of Standalone Financial

Statements for external purposes in accordance with

Generally Accepted Accounting Principles. Internal

ǛŠîŠČĿîŕ ČūŠƥƑūŕ ūǄĚƑ ǛŠîŠČĿîŕ ƑĚƎūƑƥĿŠij ūlj î ČūŞƎîŠǋ

includes those policies and procedures that (1) pertain

to the maintenance of records that, in reasonable

ēĚƥîĿŕȡ îČČƭƑîƥĚŕǋ îŠē ljîĿƑŕǋ ƑĚǜĚČƥ ƥĺĚ ƥƑîŠƙîČƥĿūŠƙ

and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions

are recorded as necessary to permit preparation of

Standalone 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 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 Standalone Financial

Statements.

Corporate Overview 01-22

Statutory Reports 23-105

Financial Statements 107-250

112

Atul Ltd | Annual Report 2018-19