Atul Ltd 2018-19

Annexure B to the Independent Auditor’s Report Referred to in para 12 under ‘Report on other legal and regulatory requirements’ Section of our report of even date 01. a) The Company has maintained proper records showing full particulars, including quantitative ēĚƥîĿŕƙ îŠē ƙĿƥƭîƥĿūŠ ūlj ǛǊĚē îƙƙĚƥƙȦ ċȴ ¹ĺĚ ūŞƎîŠǋ ĺîƙ î ƎƑūijƑîŞ ūlj ǄĚƑĿǛČîƥĿūŠ ūlj ǛǊĚē îƙƙĚƥƙ ƥū ČūǄĚƑ îŕŕ ƥĺĚ ĿƥĚŞƙ ĿŠ î ƎĺîƙĚē manner over a period of three years which, in our opinion, appears generally reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain ǛǊĚē îƙƙĚƥƙ ǅĚƑĚ ƎĺǋƙĿČîŕŕǋ ǄĚƑĿǛĚē ċǋ ƥĺĚ Management during the year. According to the information and explanations given to us, whilst ƑĚČūŠČĿŕĿîƥĿūŠ ċĚƥǅĚĚŠ ƎĺǋƙĿČîŕ ǄĚƑĿǛČîƥĿūŠ ƑĚƎūƑƥ îŠē ǛǊĚē îƙƙĚƥƙ ƑĚijĿƙƥĚƑ ljūƑ ČĚƑƥîĿŠ ċƭĿŕēĿŠijƙȡ ūljǛČĚ ĚƐƭĿƎŞĚŠƥ îŠē ljƭƑŠĿƥƭƑĚƙȡ ĚƥČ Ŀƙ ƭŠēĚƑ progress, the discrepancies noted are, prima facie, not material. c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed | transfer deed | conveyance deed provided to us, we report that, the title deeds, comprising all the immovable properties of land and acquired buildings which are freehold, are held in the name of the Company as at the Balance Sheet date, except the following: Particulars of land and building Carrying value as at March 31, 2019 Name of entity on the title deed Freehold land ` 0.15 cr Atul Products Ltd Freehold land ` 3.85 cr Land purchased from various individuals is in process of being transferred in the name of the Company Freehold land - Investment properties ` ǦȦǯǪ ČƑ Atul Products Ltd Building in Delhi ` 0.02 cr Atul Products Ltd In respect of land that have been taken on lease and disclosed as property, plant and equipment in the Standalone Financial Statements, the lease Agreements are in the name of the Company, where the Company is the lessee in the Agreement. There are no buildings that have been taken on lease. 02. As explained to us, the inventories were physically ǄĚƑĿǛĚē ēƭƑĿŠij ƥĺĚ ǋĚîƑ ċǋ ƥĺĚ qîŠîijĚŞĚŠƥ îƥ reasonable intervals and no material discrepancies ǅĚƑĚ ŠūƥĿČĚē ūŠ ƎĺǋƙĿČîŕ ǄĚƑĿǛČîƥĿūŠȦ 03. According to the information and explanations given to us, the Company has granted 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 Companies Act, 2013. The Company has not ijƑîŠƥĚē îŠǋ ŕūîŠƙȡ ƙĚČƭƑĚē ūƑ ƭŠƙĚČƭƑĚēȡ ƥū ǛƑŞƙȡ Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. In respect of aforesaid loans: a) The terms and conditions of the grant of such loans are, in our opinion, not prejudicial to interest of the Company. b) The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal amounts and interest have been regular as per stipulations. c) There is no overdue amount remaining outstanding as at the Balance Sheet date. ǦǪȦ TŠ ūƭƑ ūƎĿŠĿūŠ îŠē îČČūƑēĿŠij ƥū ƥĺĚ ĿŠljūƑŞîƥĿūŠ îŠē explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable. 05. According to the information and explanations given to us, the Company has not accepted any deposit during the year. In respect of unclaimed deposits, the Company has complied with the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013. ǦǬȦ ¹ĺĚ ŞîĿŠƥĚŠîŠČĚ ūlj Čūƙƥ ƑĚČūƑēƙ ĺîƙ ċĚĚŠ ƙƎĚČĿǛĚē ċǋ ƥĺĚ ĚŠƥƑîŕ HūǄĚƑŠŞĚŠƥ ƭŠēĚƑ ¬ĚČƥĿūŠ ǧǪǮȳǧȴ ūlj ƥĺĚ Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to ƥĺĚ ūŞƎîŠĿĚƙ ȳ ūƙƥ ¤ĚČūƑēƙ îŠē ƭēĿƥ ȴ ¤ƭŕĚƙȡ ǨǦǧǪȡ as amended prescribed by the Central Government ƭŠēĚƑ ¬ƭċȹƙĚČƥĿūŠ ȳǧȴ ūlj ¬ĚČƥĿūŠ ǧǪǮ ūlj ƥĺĚ ūŞƎîŠĿĚƙ Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete. 07. According to the information and explanations given to us, in respect of statutory dues: Corporate Overview 01-22 Statutory Reports 23-105 Financial Statements 107-250 ǧǧǪ Atul Ltd | Annual Report 2018-19