Atul Ltd 2013-14

105 Report of Auditors on the Consolidated Financial Statements To the Members To the Board of Directors of Atul Ltd 1. We have audited the accompanying Consolidated Financial Statements (‘the Consolidated Financial Statements’) of Atul Ltd (‘the Company’) and its subsidiary companies, its jointly controlled entity and associate companies; hereinafter referred to as the ‘Group’ (refer Note 27.8, 27.9 and 27.10 to the attached Consolidated Financial Statements) which comprise the consolidated Balance Sheet as at March 31, 2014, and the consolidated Statement of Profit and Loss and the consolidated Cash Flow Statement for the year then ended, and a summary of significant Accounting Policies and other explanatory information which we have signed under reference to this report. Responsibility of the Management for the Consolidated Financial Statements 2. The Management of the Company is responsible for the preparation of these Consolidated Financial Statements that give a true and fair view of the consolidated financial position, consolidated financial performance and consolidated cash flows of the Group in accordance with accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the Consolidated Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Responsibility of the Auditors 3. Our responsibility is to express an opinion on these Consolidated Financial Statements based on our audit. We conducted our audit in accordance with the Standards on Auditing and other applicable authoritative pronouncements issued by The Institute of Chartered Accountants of India. These Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Consolidated Financial Statements are free from material misstatement. 4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Consolidated Financial Statements. The procedures selected depend on the judgement of the Auditors, including the assessment of the risks of material misstatement of the Consolidated Financial Statements, whether due to fraud or error. In making those risk assessments, the Auditors consider internal control relevant to preparation and fair presentation of the Consolidated Financial Statements of the Company in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of Accounting Policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the Consolidated Financial Statements. 5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion 6. We report that the Consolidated Financial Statements have been prepared by the Management of the Company in accordance with the requirements of Accounting Standard - 21 – Consolidated Financial Statements, Accounting Standard - 23 – Accounting for Investments in Associates companies in Consolidated Financial Statements, and Accounting Standard - 27 – Financial Reporting of Interests in Joint Ventures notified under Section 211(3C) of the Companies Act, 1956’)|notified under the Companies Act, 1956 read with the General Circular 15 | 2013 dated September 13, 2013 of the Ministry of Corporate Affairs, Government of India in respect of Section 133 of the Companies Act, 2013. 7. Based on our audit and on consideration of reports of other Auditors on separate Financial Statements and on the other financial information of the components of the Group as referred to in paragraph 9 and 10 below, and to the best of our information and according to the explanations given to us, in our opinion, the accompanying Consolidated Financial Statements give a true and fair view in conformity with the accounting principles generally accepted in India: (a) in the case of the Consolidated Balance Sheet, of the state of affairs of the Group as at March 31, 2014; (b) in the case of the Consolidated Statement of Profit and Loss, of the profit for the year ended on that date; and (c) in the case of the Consolidated Cash Flow Statement, of the cash flows for the year ended on that date. Other Matters 8. The Financial Statements of (i) fifteen subsidiary companies and one jointly controlled entity included in the Consolidated Financial Statements, which constitute total assets of ` 275.70 cr and net assets of ` 200.61 cr as at March 31, 2014, total revenue of ` 458.05 cr, net profit of ` 9.80 cr and net cash flows amounting to ` 5.08 cr for the year then ended; and (ii) seventeen associate companies which constitute net loss of ` 1.16 cr for the year then ended have been audited by us | audited by other Auditors| as certified by the Management. 9. We did not audit the Financial Statements of (i) thirteen subsidiary companies and one jointly controlled entity included in the Consolidated Financial Statements, which constitute total assets of ` 225.08 cr and net assets of ` 178.35 cr as at March 31, 2014, total revenue of ` 420.49 cr, net profit of ` 7.59 cr and net cash flows amounting to ` 5.53 cr for the year then ended; and (ii) seventeen associate companies which constitute net profit of ` 1.16 cr for the year then ended. These Consolidated Financial Statements and other financial information have been audited by other Auditors whose reports have been furnished to us, and our opinion on the Consolidated Financial Statements to the extent they have been derived from such Financial Statements is based solely on the report of such other Auditors. 10. We did not audit the Financial Statements of two subsidiary companies which constitute total assets of ` 2.16 cr and net assets of ` 2.12 cr as at March 31, 2014, total revenue of ` 0.07 cr, net loss of ` 0.40 cr and net cash flows amounting to ` 0.31 cr for the year then ended. The unaudited financial information has been certified and provided to us by the Management, and our opinion on the Consolidated Financial Statements to the extent they relate to these subsidiary companies is based solely on such unaudited financial information furnished to us. For Dalal & Shah Firm Registration Number: 101020W Chartered Accountants Anish P Amin Mumbai Partner May 02, 2014 Membership Number: 040451