Atul Ltd 2016-17

Atul Ltd | Annual Report 2016-17 Annexure B to the Independent Auditors’ Report Referred to in paragraph 10 of the Independent Auditors’ Report of even date to the Members of Atul Ltd on the Standalone Ind AS Financial Statements as of and for the year ended March 31, 2017 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 programme 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 programme, 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) T he title deeds of immovable properties other than self-constructed immovable properties (buildings), as disclosed in Note 2 and 3 on fixed assets to the Ind AS Financial Statements, are held in the name of the Company (Atul Ltd), except for the following: Name of entity on the title deed Total number of Agreements Book value of land ( ` cr) Atul Products Ltd(*) 91 0.52 Atic Industries Ltd 1 0.78 Cibatul Ltd 3 0.15 Total 95 1.45 *  Out of above, 45 title deeds amounting to ` 0.07 cr form part of Investment properties (refer Note 3). 02. The physical verification of inventory (excluding stocks with third parties) have 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 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 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 Company’s interest. b) In respect of the aforesaid loans, the schedule of repayment of principal and payment of interest 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 90 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 Section 185 of the Act. In respect of loans granted to, guarantees or security in respect of any loan and investments made in bodies corporates by the Company, the provisions of Section 186 of the Act have been complied with. The Company has given an interest free loan of ` 7.01 cr to Amal Ltd pursuant to the Order of the Board for Industrial and Financial Reconstruction. (refer Note 27.13). 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 thereunder 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) A ccording 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, Duty of Customs and Value Added Tax which have not been deposited on account of any dispute. The particulars of dues of Income Tax and Duty of Excise as at March 31, 2017 which have not been deposited on account of a dispute, are as follows: