Atul Ltd 2018-19

Annexure A to the Independent Auditor’s Report Referred to in paragraph (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 TŠ ČūŠŏƭŠČƥĿūŠ ǅĿƥĺ ūƭƑ îƭēĿƥ ūlj ƥĺĚ ūŠƙūŕĿēîƥĚē Financial Statements of Atul Ltd (hereinafter referred to as the Parent ) as of and for the year ended March 31, ǨǦǧǯȡ ǅĚ ĺîǄĚ îƭēĿƥĚē ƥĺĚ ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ ČūŠƥƑūŕƙ ūǄĚƑ ǛŠîŠČĿîŕ ƑĚƎūƑƥĿŠij ūlj ƥĺĚ ¡îƑĚŠƥȡ Ŀƥƙ ƙƭċƙĿēĿîƑǋ ČūŞƎîŠĿĚƙ îŠē î ŏūĿŠƥ ǄĚŠƥƭƑĚ ČūŞƎîŠǋ ǅĺĿČĺ îƑĚ companies incorporated in India, as of that date. qîŠîijĚŞĚŠƥɄƙ ƑĚƙƎūŠƙĿċĿŕĿƥǋ ljūƑ ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ controls 02. The respective Board of Directors of the Parent, its ƙƭċƙĿēĿîƑǋ ČūŞƎîŠĿĚƙ îŠē ŏūĿŠƥ ǄĚŠƥƭƑĚ ČūŞƎîŠǋȡ which are companies incorporated in India, are responsible for establishing and maintaining internal ǛŠîŠČĿîŕ ČūŠƥƑūŕƙ ċîƙĚē ūŠ ƥĺĚ ĿŠƥĚƑŠîŕ ČūŠƥƑūŕ ūǄĚƑ ǛŠîŠČĿîŕ ƑĚƎūƑƥĿŠij ČƑĿƥĚƑĿî ĚƙƥîċŕĿƙĺĚē ċǋ ƥĺĚ ƑĚƙƎĚČƥĿǄĚ companies 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 (ICAI). 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 respective 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 ƥĿŞĚŕǋ ƎƑĚƎîƑîƥĿūŠ ūlj ƑĚŕĿîċŕĚ ǛŠîŠČĿîŕ ĿŠljūƑŞîƥĿūŠȡ îƙ required under the Companies Act, 2013. Auditor’s responsibility ǦǩȦ ~ƭƑ ƑĚƙƎūŠƙĿċĿŕĿƥǋ Ŀƙ ƥū ĚǊƎƑĚƙƙ îŠ ūƎĿŠĿūŠ ūŠ ƥĺĚ ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ ČūŠƥƑūŕƙ ūǄĚƑ ǛŠîŠČĿîŕ ƑĚƎūƑƥĿŠij ūlj ƥĺĚ ¡îƑĚŠƥȡ Ŀƥƙ ƙƭċƙĿēĿîƑǋ ČūŞƎîŠĿĚƙ îŠē Ŀƥƙ ŏūĿŠƥ ǄĚŠƥƭƑĚ ČūŞƎîŠǋȡ which are companies incorporated in India, based on our audit. We conducted our audit in accordance with the Guidance Note issued by the Institute of Chartered Accountants of India and the Standards on Auditing, ƎƑĚƙČƑĿċĚē ƭŠēĚƑ ¬ĚČƥĿūŠ ǧǪǩȳǧǦȴ ūlj ƥĺĚ ūŞƎîŠĿĚƙ Čƥȡ ǨǦǧǩȡ ƥū ƥĺĚ ĚǊƥĚŠƥ îƎƎŕĿČîċŕĚ ƥū îŠ îƭēĿƥ ūlj ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ ČūŠƥƑūŕƙȦ ¹ĺūƙĚ ¬ƥîŠēîƑēƙ îŠē ƥĺĚ HƭĿēîŠČĚ 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 î ŞîƥĚƑĿîŕ ǅĚîŒŠĚƙƙ ĚǊĿƙƥƙ îŠē ƥĚƙƥĿŠij îŠē ĚǄîŕƭîƥĿŠij the design and operating effectiveness of internal control based on the assessed risk. The procedures ƙĚŕĚČƥĚē ēĚƎĚŠē ūŠ ƥĺĚ ŏƭēijĚŞĚŠƥ ūlj ƥĺĚ ƭēĿƥūƑȡ including the assessment of the risks of material misstatement of the Financial Statements, whether due to fraud or error. 05. We believe that the audit evidence we have obtained and the audit evidence obtained by the other Auditors of the subsidiary companies, which are companies incorporated in India, in terms of their reports referred ƥū ĿŠ ƥĺĚ ~ƥĺĚƑ ŞîƥƥĚƑƙ ƎîƑîijƑîƎĺ ċĚŕūǅȡ Ŀƙ ƙƭljǛČĿĚŠƥ and appropriate to provide a basis for our audit opinion ūŠ ƥĺĚ ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ ČūŠƥƑūŕƙ ƙǋƙƥĚŞ ūǄĚƑ ǛŠîŠČĿîŕ reporting of the Parent, its subsidiary companies îŠē Ŀƥƙ ŏūĿŠƥ ǄĚŠƥƭƑĚ ČūŞƎîŠǋȡ ǅĺĿČĺ îƑĚ ČūŞƎîŠĿĚƙ incorporated in India. qĚîŠĿŠij ūlj ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ ČūŠƥƑūŕƙ ūǄĚƑ ǛŠîŠČĿîŕ reporting ǦǬȦ ¹ĺĚ ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ ČūŠƥƑūŕƙ ūǄĚƑ ǛŠîŠČĿîŕ ƑĚƎūƑƥĿŠij of the Company is a process designed to provide reasonable assurance regarding the reliability of ǛŠîŠČĿîŕ ƑĚƎūƑƥĿŠij îŠē ƥĺĚ ƎƑĚƎîƑîƥĿūŠ ūlj GĿŠîŠČĿîŕ ¬ƥîƥĚŞĚŠƥƙ ljūƑ ĚǊƥĚƑŠîŕ ƎƭƑƎūƙĚƙ ĿŠ îČČūƑēîŠČĚ with Generally Accepted Accounting Principles. The ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ ČūŠƥƑūŕ ūǄĚƑ ǛŠîŠČĿîŕ ƑĚƎūƑƥĿŠij ūlj the Company includes those policies and procedures that (1) pertain to the maintenance of records that, ĿŠ ƑĚîƙūŠîċŕĚ ēĚƥîĿŕȡ îČČƭƑîƥĚŕǋ îŠē ljîĿƑŕǋ ƑĚǜĚČƥ ƥĺĚ 180 Atul Ltd | Annual Report 2018-19 Corporate Overview 01-22 Statutory Reports 23-105 Financial Statements 107-250