Atul Ltd 2018-19

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