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Coastal Corporation Ltd.

BSE: 501831 Sector: Others
NSE: N.A. ISIN Code: INE377E01016
BSE 00:00 | 23 Apr 343.35 -10.55
(-2.98%)
OPEN

351.00

HIGH

351.00

LOW

343.00

NSE 05:30 | 01 Jan Coastal Corporation Ltd
OPEN 351.00
PREVIOUS CLOSE 353.90
VOLUME 21186
52-Week high 443.15
52-Week low 22.08
P/E 8.27
Mkt Cap.(Rs cr) 349
Buy Price 335.05
Buy Qty 10.00
Sell Price 349.00
Sell Qty 30.00
OPEN 351.00
CLOSE 353.90
VOLUME 21186
52-Week high 443.15
52-Week low 22.08
P/E 8.27
Mkt Cap.(Rs cr) 349
Buy Price 335.05
Buy Qty 10.00
Sell Price 349.00
Sell Qty 30.00

Coastal Corporation Ltd. (COASTALCORPORAT) - Auditors Report

Company auditors report

To The Members of Coastal Corporation Limited Report on the Standalone Ind AS FinancialStatements

We have audited the accompanying standalone Ind AS financial statements of CoastalCorporation Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss (including other comprehensive income) forthe year then ended the Cash Flows and the Statement of Changes in Equity for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the Ind AS financial statements").

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 accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified undersection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS 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. 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 there under. 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 financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the standaloneInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone Ind AS financial statements that give a true and fair viewin order to design audit procedures that are appropriate in the circumstances. An auditalso includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone Ind AS financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea 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 standalone Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2018 its profit including other comprehensive income its cash flows andthe changes in equity for the year ended on that date.

Emphasis of Matter

Attention is drawn to Note no. 15 and Note no. 1.2(iii) to the standalone financialstatements wherein the company has recognised revenue on Shipment in Transit amounting toRs 41.72 crores in accordance with industry practice and entitlement of export subsidies.

Our opinion on the above matter is not modified.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Independent Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of subsection (11) ofSection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

2. 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 aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended.

e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act.

f) With respect of the adequacy of the Internal Financial Controls over FinancialReporting of the company and its operating effectiveness of such controls refer to ourseparate report in "Annexure B".

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 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact 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 were no amounts which were required to be transferred to the InvestorEducation and Protection Fund.

For K.P. Rao & Co.
Chartered Accountants
Firm Reg. No. 003135S
Sd/-
K Viswanath
Place : Visakhapatnam Partner
Date : May 25 2018 Membership No. 022812

ANNEXURE ‘A' TO INDEPENDENT AUDITORS' REPORT

[Referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date]

(i)

(a) The company is in the process of updating and maintaining records showing fullparticulars including quantitative details and situation of fixed assets.

(b) The fixed assets have not been physically verified by the management during theyear.

(c) The title deeds of the immovable properties held by the Company is in the name ofthe Company.

(ii) According to the information and explanations given to us the inventory of theCompany has been physically verified by the management during the course of the year andno material discrepancies were noticed on such physical verification.

(iii) The company has granted unsecured loan to its wholly owned Subsidiary companycovered in the register maintained under section 189 of the Companies Act 2013.

(a) The amount outstanding as at 31/03/2018 is Rs. 1020.48 lakhs and based on theinformation and explanations given by the management the terms and conditions are notprejudicial to the interest of the Company.

(b) The payment of interest has been stipulated and the repayments are regular.

(c) In our opinion reasonable steps have been taken by the Company for the recovery ofthe principal amounts and interest in respect of loan.

(iv) According to the information and explanations given to us the company does nothave any loans investments guarantees and security which are subject to provisions ofsection 185 and 186 of the Companies Act 2013. Therefore the provisions of Para 3(iv) ofthe Companies (Auditors Report) 2016 are not applicable to the Company.

(v) According to the information and explanations given to us the Company has notaccepted deposits from the public and in our opinion and according to the information andexplanation given to us the provisions of Sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed there under are not applicable.

(vi) To the best of our knowledge and as explained to us the Central Government hasnot prescribed maintenance of cost records under sub-section (1) of section 148 of theCompanies Act 2013 in the case of this company.

(vii) (a) According to the information and explanations given to us and as per ourverification of the records of the company the company has been regular in depositingundisputed statutory dues including Provident fund Employees' state insurance IncomeTax Sales Tax Goods and Service Tax Cess and other statutory dues with the appropriateauthorities during the year.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of Provident fund Employees' state insurance Income Tax Sales TaxGoods and Service Tax Cess and other statutory dues were outstanding at the year endfor a period of more than six months from the date they became payable.

(c) According to the information and explanation given to us there are no dues ofIncome tax Sales tax Goods and Service Tax Cess and other statutory dues which have notbeen deposited on account of dispute.

(viii) In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowing to financialinstitution bank government or dues to debenture holders.

(ix) According to the information and explanations given to us there were no moniesraised by way of initial public offer or further public offer (including debt instruments)and no term loans were obtained during the year. Therefore the provisions of Para 3(ix) ofthe Companies (Auditors Report) 2016 is not applicable to the Company.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the company or no fraud on the companyby the officers and employees of the Company has been noticed or reported during the year.

(xi) According to the information and explanations given by the management themanagerial remuneration has been paid/ provided in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Act.

(xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company and hence not commented upon.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 of Actwhere applicable and the details have been disclosed in the notes to the financialstatements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause 3(xiv) are not applicable tothe company

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withhim as referred to in section 192 of the Act.

(xvi) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For K.P. Rao & Co.
Chartered Accountants
Firm Reg. No. 003135S
Sd/-
K Viswanath
Place : Visakhapatnam Partner
Date : May 25 2018 Membership No. 022812

ANNEXURE ‘B' TO INDEPENDENT AUDITORS' REPORT

[Referred to in paragraph (f) under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date]

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of the Companyas at 31 March 2018 in conjunction with our audit of the Balance Sheet as at 31st March2018 the statement of profit and loss and cash flow statement annexed for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The management is responsible for establishing and maintaining internal financialcontrols based on the essential components of internal control stated in the Guidance Noteon Audit of Internal Financial Controls Over Financial Reporting (‘the GuidanceNote') issued by the Institute of Chartered Accountants of India (‘the ICAI')".These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required the Companies Act 2013 (‘the Act').

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 and the Standards on Auditing (‘the Standards') issued by theICAI and deemed to be prescribed under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both issued by the ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated 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 judgment 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. This includes those policies and procedures that :

(i) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

(ii) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the company; and

(iii) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial effect on the financial statements because of the inherent limitations ofinternal financial controls over financial reporting including the possibility ofcollusion or improper management override of controls material misstatements due to erroror 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.

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 the Company has maintained in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2018 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India. However the existing policies systems procedures and internalcontrols followed by the Company have to be appropriately documented.

For K.P. Rao & Co.
Chartered Accountants
Firm Reg. No. 003135S
Sd/-
K Viswanath
Place : Visakhapatnam Partner
Date : May 25 2018 Membership No. 022812