Atul Ltd 2016-17

Atul Ltd | Annual Report 2016-17 Independent Auditors’ Report To the Members of Atul Ltd Report on the Consolidated Indian Accounting Standards (Ind AS) Financial Statements 01. We have audited the accompanying Consolidated Ind AS Financial Statements of Atul Ltd (hereinafter referred to as ‘the Holding Company’) and its subsidiary companies (the Holding Company and its subsidiary companies together referred to as the ‘Group’) and its joint venture company; refer Note 29.16 to the attached Consolidated Financial Statements, comprising of the Consolidated Balance Sheet as at March 31, 2017, the Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Consolidated Statement of Cash Flows for the year then ended and the Consolidated Statement of changes in equity for the year then ended, and a summary of significant Accounting Policies and other explanatory information prepared based on the relevant records (hereinafter referred to as ‘the Consolidated Ind AS Financial Statements). Management’s responsibility for the Consolidated Ind AS Financial Statements 02. The Board of Directors of the Holding Company is responsible for the preparation of these Consolidated Ind AS Financial Statements in terms of the requirements of the Companies Act, 2013 (hereinafter referred to as the ‘Act’) that give a true and fair view of the Consolidated Financial Position, Consolidated Financial Performance, Consolidated Cash Flows and changes in equity of the Group including its joint venture company in accordance with Accounting Principles generally accepted in India including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act. The Board of Directors of the Holding Company is also responsible for ensuring accuracy of records including financial information considered necessary for the preparation of Consolidated Ind AS Financial Statements. The respective Board of Directors of the companies included in the Group and of its joint venture company are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and its joint venture company respectively and for preventing and detecting frauds and other irregularities; the selection and application of appropriate Accounting Policies; making judgements and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate Internal Financial Controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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, which has been used for the purpose of preparation of the Consolidated Ind AS Financial Statements by the Directors of the Holding Company, as aforesaid. Auditors’ responsibility 03. Our responsibility is to express an opinion on these Consolidated Ind AS Financial Statements based on our audit. While conducting the audit, we have taken into account the provisions of the Act and the Rules made thereunder including the Accounting Standards andmatters which are required to be included in the Audit Report. 04. We conducted our audit of the Consolidated Ind AS Financial Statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Consolidated Ind AS Financial Statements are free from material misstatement. 05. An audit involves performing procedures to obtain audit evidence about the amount and disclosures in the Consolidated Ind AS Financial Statements. The procedures selected depend on the Auditors’ judgement, including the assessment of the risks of material misstatement of the Consolidated Ind AS Financial Statements, whether due to fraud or error. In making those risk assessments, the Auditor considers Internal Financial Control relevant to the preparation of the Consolidated Ind AS Financial Statements of the Holding Company that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the Accounting Policies used and the reasonableness of the accounting estimates made by the Board of Directors of the Holding Company, as well as evaluating the overall presentation of the Consolidated Ind AS Financial Statements. 06. We believe that the audit evidence obtained by us and the audit evidence obtained by the other Auditors in terms of their reports referred to in sub-paragraph 8 of the Other matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the Consolidated Ind AS Financial Statements. Opinion 07. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Consolidated Ind AS Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the Accounting Principles generally accepted in India of the consolidated state of affairs of the Group, its joint venture company as at March 31, 2017, and their consolidated profit (including Other Comprehensive Income), their consolidated cash flows and consolidated changes in equity for the year ended on that date. Other matter 08. We did not audit the Financial Statements of 32 subsidiary companies whose Financial Statements reflect total assets of ` 54.54 cr and net assets of ` 38.18 cr as at March 31, 2017, total revenue of ` 84.42 cr, net profit of ` 0.41 cr and net cash flows amounting to ` 17.83 cr for the year ended on that date, as considered in the Consolidated Ind AS Financial Statements. The Consolidated Ind AS Financial Statements also include the Group’s share of net profit of ` 4.77 cr for the year ended March 31, 2017 as considered in the Consolidated Ind AS Financial Statements, in respect of a joint venture company whose Financial Statements have not been audited by us. These Financial Statements have been audited by other Auditors whose reports have been furnished to us by the Management, and our opinion on the Consolidated Ind AS Financial Statements insofar as it relates to the