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Atul Ltd | Annual Report 2015-16
Annexure B
to the Independent Auditors’ Report
Referred to in paragraph 9 of the Independent Auditors’
Report of even date to the Members of Atul Ltd on the
Standalone Financial Statements as of and for the year
ended March 31, 2016.
01. a) The Company is 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
program 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 program, a portion of the
fixed assets has been physically verified by the
Management during the year and no material
discrepancies have been noticed on such
verification.
c) The title deeds of immovable properties other
than self-constructed immovable property
(buildings), as disclosed in fixed assets to the
Financial Statements, are held in the name
of the Company, except for the following
leasehold land:
– GIDC Plot No 297 and 297/1 at
Ankleshwar in the name of the erstwhile
Gujarat Aromatics Limited which by virtue
of the Hon’ble Gujarat High Court Order
dated July 29, 1988 vests in the name of
the Atul Limited. Formalities for change of
name from Gujarat Aromatics Limited to
Atul Limited are in progress.
02. The inventory physical verification (excluding
stocks with third parties) has been conducted at
reasonable intervals by the Management during the
year. In respect of inventory lying with third parties,
these have substantially been confirmed by them.
The discrepancies noticed on physical verification of
inventory as compared to book records were not
material.
03. The Company has granted unsecured loan to a
wholly owned subsidiary company and an interest
free unsecured loan to an associate company
[Pursuant to an Order of the Board for Industrial
and Financial Reconstruction] covered in the
register maintained under Section 189 of the Act.
The Company has not granted any loan, secured or
unsecured, to firms, Limited Liability Partnerships or
other parties covered in the said register.
a) In respect of the aforesaid loans, the terms
and conditions under which such loans were
granted are not prejudicial to the interest of
the Company.
b) In respect of the aforesaid loans, the schedule
of repayment of principal and payment of
interest (where ever applicable) has been
stipulated, and the parties are repaying the
principal amounts as stipulated and are also
regular in payment of interest as applicable.
c) In respect of the aforesaid loans, there is no
amount which is overdue for more than ninety
days.
04. In our opinion, and according to the information
and explanations given to us, the Company has not
granted any loans or provided any guarantees or
security in respect of any loans to any party covered
under the Section 185 of the Act. In respect of loans
granted to, guarantees or security in respect of any
loan and Investments made in body corporates
by the Company, the provisions of Section 186 of
the Act has been complied with. The Company
has given an interest free loan of
`
14.88 cr to an
associate company pursuant to the Order of the
Board for Industrial and Financial Reconstruction.
(refer Note 28.10)
05. The Company has not accepted any deposits from
the public within the meaning of Sections 73, 74,
75 and 76 of the Act and the Rules framed there
under to the extent notified.
06. Pursuant to the rules made by the Central
Government of India, the Company is required to
maintain cost records as specified under Section
148(1) of the Act in respect of its products.
We have broadly reviewed the same, and are of the
opinion that, prima facie, the prescribed accounts
and records have been made and maintained. We
have not, however, made a detailed examination of
the records with a view to determine whether they
are accurate or complete.
07. a) According to the information and explanations
given to us and the records of the Company
examined by us, in our opinion, the Company is
regular in depositing the undisputed statutory
dues, including Provident Fund, Employees’
State Insurance, Income Tax, Sales Tax, Service
Tax, duty of customs, duty of excise, value
added tax, cess and other material statutory
dues, as applicable, with the appropriate
authorities.
b) According to the information and explanations
given to us and the records of the Company
examined by us, there are no dues of sales tax,
service tax and value added tax which have not
been deposited on account of any dispute.
The particulars of dues of Income tax, duty
of customs and duty of excise as at March
31, 2016 which have not been deposited on
account of a dispute, are as follows: