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Coromandel International Ltd.

BSE: 506395 Sector: Agri and agri inputs
NSE: COROMANDEL ISIN Code: INE169A01031
BSE LIVE 15:40 | 11 Dec 516.20 -0.35
(-0.07%)
OPEN

516.00

HIGH

526.00

LOW

514.70

NSE 15:31 | 11 Dec 517.65 -0.35
(-0.07%)
OPEN

519.95

HIGH

526.50

LOW

514.55

OPEN 516.00
PREVIOUS CLOSE 516.55
VOLUME 582843
52-Week high 542.90
52-Week low 267.35
P/E 22.32
Mkt Cap.(Rs cr) 15,083
Buy Price 516.60
Buy Qty 29.00
Sell Price 0.00
Sell Qty 0.00
OPEN 516.00
CLOSE 516.55
VOLUME 582843
52-Week high 542.90
52-Week low 267.35
P/E 22.32
Mkt Cap.(Rs cr) 15,083
Buy Price 516.60
Buy Qty 29.00
Sell Price 0.00
Sell Qty 0.00

Coromandel International Ltd. (COROMANDEL) - Auditors Report

Company auditors report

Independent Auditor's Report

TO THE MEMBERS OF COROMANDEL INTERNATIONAL LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of COROMANDELINTERNATIONAL LIMITED ("the Company") which comprise the Balance Sheet as at 31March 2017 and the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder. We conductedour audit of the standalone Ind AS financial statements in accordance with the Standardson Auditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the standalone Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31 March 2017 and its profit total comprehensive income its cash flowsand the changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account. d) In our opinion the aforesaidstandalone Ind AS financial statements comply with the Indian Accounting Standardsprescribed under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164(2) of the Act. f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company. iv. The Company has providedrequisite disclosures in the Standalone financial statements as regards its holding anddealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated the 8November 2016 of the Ministry of Finance during the period from 8 November 2016 to

30 December 2016. Based on audit procedures performed and the representations providedto us by the management we report that the disclosures are in accordance with the books ofaccount maintained by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm's Registration No. 008072S)
Ganesh Balakrishnan
(Partner)
Secunderabad 28 April 2017 (Membership No. 201193)

Annexure "A" to the Independent Auditor's Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date) Report on the Internal FinancialControls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of COROMANDELINTERNATIONAL LIMITED ("the Company") as of 31 March 2017 in conjunction withour audit of the standalone Ind AS financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 March 2017 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm's Registration No. 008072S)
Ganesh Balakrishnan
(Partner)
Secunderabad 28 April 2017 (Membership No. 201193)

Annexure "B" to the Independent Auditor's Report

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. (b) The fixed assets were physicallyverified during the year by the Management in accordance with a regular programme ofverification which in our opinion provides for physical verification of all the fixedassets at reasonable intervals. According to the information and explanations given to usno material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and the records examinedby 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 theimmovable properties of land and buildings which are freehold are held in the name of theCompany as at the balance sheet date.

In respect of immovable properties of land and buildings that have been taken on leasethe lease agreements are in the name of the Company where the Company is the lessee inthe agreement as at the balance sheet date except the following:

Particulars of the Carrying Amount Remarks
land and building (Rs. in Lakhs)
Leasehold Land 18.17 Lease deed in respect of land admeasuring 14254 square meters at Madri Udaipur taken on lease is pending to be transferred to the name of the Company.

(ii) As explained to us the inventories were physically verified during the year bythe Management at reasonable intervals and no material discrepancies were noticed onphysical verification.

(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013. (iv) In our opinion and according to theinformation and explanations given to us the Company has complied with the provisions ofSections 185 and 186 of the Companies Act 2013 in respect of grant of loans makinginvestments and providing guarantees and securities as applicable.

(v) According to the information and explanations given to us the Company has notaccepted any deposit during the year. In respect of unclaimed deposits the Company hascomplied with the provisions of Sections 73 to 76 or any other relevant provisions of theCompanies Act 2013.

(vi) The maintenance of cost records has been specified by the Central Government undersection 148(1) of the Companies Act 2013 for Fertilisers and Insecticides. We havebroadly reviewed the cost records maintained by the Company pursuant to the Companies(Cost Records and Audit) Rules 2014 as amended prescribed by the Central Governmentunder sub-section (1) of Section 148 of the Companies Act 2013 and are of the opinionthat prima facie the prescribed cost records have been made and maintained. We havehowever not made a detailed examination of the cost records with a view to determinewhether they are accurate or complete. (vii) According to the information and explanationsgiven to us in respect of statutory dues:

(a) The Company has been regular in depositing undisputed statutory dues includingProvident Fund Employees' State Insurance Income-tax Sales Tax Service Tax CustomsDuty Excise Duty Value Added Tax Cess and other material statutory dues applicable toit with the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income-tax Sales Tax Service Tax Customs Duty Excise Duty ValueAdded Tax Cess and other material statutory dues in arrears as at 31 March 2017 for aperiod of more than six months from the date they became payable.

(c) Details of dues of Income-tax Sales Tax Service Tax Customs Duty Excise Dutyand Value Added Tax which have not been deposited as on 31 March 2017 on account ofdisputes are given below:

Name of Statute Nature of Dues Forum where Dispute is pending Period to which the Amount relates Amount involved (Rs. in Lakhs) Amount unpaid (Rs. in Lakhs)
The Income Tax Act 1961 Income Tax Income Tax Appellate Tribunal 2003-2004 2006 108 108
-2007 to 2008 -2009.
Commissioner of Income Tax (Appeals) 2005-2006 to 2006- 677 670
2007 2009-2010 to
2011-2012 2013-14
West Bengal Sales Tax Act 1994 Sales tax Assistant Commissioner (Appeals) 2002-2003 4 4
Sales Tax Appellate Tribunal 2008-2009 2012-2013 1058 958
Senior Joint Commissioner Commercial 2012-2013 17 12
Andhra Pradesh Sales tax Additional Commissioner Legal 1995-1996 to 1997-1998 27 27
General Sales Tax Act 1957 Sales Tax Appellate Tribunal 2002-2003 to 93 62
2003-2004
Uttar Pradesh Sales tax Deputy Commissioner 2008-2009 125 111
Value Added Tax Act 2008 Deputy Commissioner Appeal 2012-2013 1 1
Appellate Deputy Commissioner 2012-2013 40 40
Assistant Commissioner 2013-2014 2 1
Gujarat Value Sales tax Joint Commissioner 2010-2011 & 2011-2012 7 7
Added Tax Act 2003 Joint Commissioner (Appeals) 2011-2012 104 104
Rajasthan Value Sales tax Deputy Commissioner Appeal 2012-2013 15 15
Added Tax Act 2003 Appellate Deputy Commissioner 2010-2011 to 2012-2013 27 24
Assistant Commissioner 2013-2014 81 81
Electricity Supply Electricity Cess High Court of Judicature at Hyderabad for the State of 2003-2004 to 293 293
Act 1948 Telangana and State of Andhra Pradesh 2013-2014
Central Excise Act Excise duty High Court of Judicature at Hyderabad for the State of 2003 to 2007 254 254
1944 Telangana and State of Andhra Pradesh
High Court of Madras 2001-2003 7 7
CESTAT 2004-2005 to 409 349
2014-2015
Commissioner (Appeals) 2003-2004 to 2004- 40 38
2005 2006-2007 &
2010 -2011 to 2015-2016
Commissioner 2004-2005 3 3
The Customs Act Customs duty CESTAT 2005-2006 to 2010- 78 73
1962 2011 & 2016-2017
Commissioner of Customs (Appeals) 2005-2006 to 344 344
2010-2011
The Finance Act Service tax Commissioner (Appeals) 2009-2010 to 2010-2011 10 9
1994 & 2015-2016
CESTAT 2011-2012 to 2015-2016 202 187
High Court of Madras 2003-2004 2 2

(viii) In our opinion and according to the information and explanations given to ushaving regard to the rollover of buyer's credit by banks the Company has not defaulted inthe repayment of loans or borrowings to financial institutions banks and government. TheCompany has not issued any debentures.

(ix) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) during the year. In our opinion and according to theinformation and explanations given to us the term loans have been applied by the Companyduring the year for the purposes for which they were obtained. (x) To the best of ourknowledge and according to the information and explanations given to us no fraud by theCompany and no material fraud on the Company by its officers or employees has been noticedor reported during the year. (xi) In our opinion and according to the information andexplanations given to us the Company has paid / provided managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Companies Act 2013.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.

(xiii) In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of the Order is not applicable to the Company. (xv) In our opinion andaccording to the information and explanations given to us during the year the Company hasnot entered into any non-cash transactions with its directors or directors of its holdingsubsidiary or associate Company or persons connected with them and hence provisions ofsection 192 of the Companies Act 2013 are not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm's Registration No. 008072S)
Ganesh Balakrishnan
(Partner)
Secunderabad 28 April 2017 (Membership No. 201193)