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Coastal Corporation Ltd.

BSE: 501831 Sector: Others
NSE: COASTCORP ISIN Code: INE377E01016
BSE 13:57 | 05 Dec 269.30 0.20
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271.45

HIGH

272.00

LOW

267.40

NSE 13:49 | 05 Dec 268.90 0.25
(0.09%)
OPEN

271.00

HIGH

272.30

LOW

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OPEN 271.45
PREVIOUS CLOSE 269.10
VOLUME 2450
52-Week high 526.90
52-Week low 228.58
P/E 20.16
Mkt Cap.(Rs cr) 312
Buy Price 267.65
Buy Qty 2.00
Sell Price 268.65
Sell Qty 18.00
OPEN 271.45
CLOSE 269.10
VOLUME 2450
52-Week high 526.90
52-Week low 228.58
P/E 20.16
Mkt Cap.(Rs cr) 312
Buy Price 267.65
Buy Qty 2.00
Sell Price 268.65
Sell Qty 18.00

Coastal Corporation Ltd. (COASTCORP) - Auditors Report

Company auditors report

TO
THE MEMBERS OF
COASTAL CORPORATION LIMITED

Report on the Standalone Ind AS financial statements

Opinion

We have audited the accompanying standalone Ind AS financial statements of COASTALCORPORATION LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2021 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash flows for the year ended onthat date and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the standalone Ind AS financialstatements"). In our opinion and to the best of our information and according to theexplanations given to us the accompanying standalone Ind AS financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021the profit and total comprehensive income changes in equity and its cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing (SAs) spec-i_ed under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Ind AS financial statements section ofour report. We are independent of the Company in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made thereun-der and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone Ind AS financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements of the currentperiod. These matters were addressed in the context of our audit of the standalone Ind ASfinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

SL. No. Key Audit Matter How our audit addressed the Key Audit Matter
1 Valuation of Investments in Unquoted Equity Shares of M/s Coastal Developers Pvt Ltd and M/s Seagold Aqua Farms India Pvt Ltd
The valuation of the investments involves judgement and continues to be an area of inherent risk because quoted prices are not readily avail- able. We assessed the managements' approach to valuation for these investments by performing the following procedures:
• Understood and evaluated the procedure followed by the management to gather the data inputs used in the valuation models.
• We assessed the appropriateness of the methodology applied in determining the fair value of the investments.
Refer: Note 49.2 to the Standalone Ind AS financial statements • We evaluated the methodology and assumptions used by management including reasonableness of the market value considered for immovable properties by comparing it with the guideline values determined by the State Government for similar properties.
• We tested the calculation of the fair value based on the assumptions applied.
• We found the disclosures in the standalone Ind AS financial statements to be appropriate.
Conclusion: Based on the work performed and the evidence obtained we consider the methodology and assumptions used by management to be appropriate.
2 Purchase cost of Raw Shrimps
Company procures its principle raw materials from the agents and farmers of aquaculture and the price of the same is highly volatile to the market conditions. Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:
• We have evaluated the design and tested the implementation of internal controls relating to procurement of raw materials and payments made to the agents and suppliers of the raw materials with source documentation.
The tentative prices of the raw shrimps are published by the local farmers of aquaculture through online app. acqubrahma.in. Based upon the production requirements export com- mitments of the company and after considering the tentative prices the management decides the price at which the raw materials have to be procured. • We have performed the test of controls over procurement procedure to evaluate the operating effectiveness of the controls placed in recognition of the purchase costs.
• We have performed test of details through correlating the raw materials procured with that of the material processed based on the production reports.
• We tested the payments made to the suppliers based on the credit terms of payments.
Conclusion: Based on the work performed we found the raw material costs recorded to be correct based on available evidence.

Information Other than the Standalone Ind AS financial statements and Auditor's Reportthereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone Ind AS financial statements and our auditor's report thereon. Ouropinion on the standalone Ind AS financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon. In connection with ouraudit of the standalone Ind AS financial statements our responsibility is to read theother information and in doing so consider whether the other information is materiallyinconsistent with the standalone Ind AS financial statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of this"other information" we are required to report that fact. We have nothing toreport in this regard.

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 Act with respect to the preparation of these standalone Ind AS financialstatements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing 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 stan-daloneInd AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error. In preparing the standalone Ind AS financialstatements management is responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so. The Board ofDirectors is responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Ind AS financial statements

Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial statements are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these standalone Ind AS financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol. • Obtain an understanding of internal financial controls relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls. • Evaluate the appropriateness ofaccounting policies used and the reasonableness of accounting estimates and relateddisclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone Ind AS financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern. • Evaluate the overall presentationstructure and content of the standalone Ind AS financial statements including thedisclosures and whether the standalone Ind AS financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone Ind AS financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the standalone Ind AS financial statementsmay be influenced. We consider quantitative materiality and qualitative factors in (i)planning the scope of our audit work and in evaluating the results of our work; and (ii)to evaluate the effect of any identified misstatements in the standalone Ind AS financialstatements. We communicate with those charged with governance regarding among othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant de_ciencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards. From the matters communicated withthose charged with governance we determine those matters that were of most signifi-cancein the audit of the standalone Ind AS financial statements of the current period and aretherefore the key audit matters. We describe these matters in our auditor's report unlesslaw or regulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government in terms of

Section 143(11) of the Act we give in "Annexure- A" a statement onthe matters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act based on our audit we report that:

a) We have sought and obtained all the information and explanations which to thebest of 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 the Companyso far as it appears from our examination of those books. c) The Balance Sheet theStatement of Profit and Loss including Other Comprehensive Income Statement of Changes inEquity and the Statement of Cash Flow dealt with by this Report are in agreement with therelevant books of account. d) In our opinion the aforesaid standalone Ind ASfinancial statements comply with the Ind AS specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014. e) On the basis of the writtenrepresentations received from the directors as on March 31 2021 taken on record by theBoard of Directors none of the directors is disqualified as on March 31 2021 from beingappointed as a director in terms of Section 164 (2) of the Act. f) With respect tothe adequacy of the internal financial controls over financial reporting of the Companyand the operating effectiveness of such controls refer to our separate Report in "AnnexureB". Our report expresses an unmodified opinion on the adequacy and operatingeffectiveness of the Company's internal financial controls over financial reporting. g)With respect to the other matters to be included in the Auditor's Report in accordancewith the requirements of section 197(16) of the Act as amended: The remuneration paid tothe Directors by the company is in accordance with the provisions of the sec.197.

h) 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 does not have any pending litigations that would impact itsfinancial position. ii. The Company has made provision as required under theapplicable law or accounting standards for material foreseeable losses if any onlong-term contracts including derivative contracts. iii. There is no amount whichis required to be transferred to the Investor Education and Protection Fund by thecompany.

For BRAHMAYYA & CO.
Chartered Accountants
Firm Reg No. 000513S
Sd/-
C.V. RAMANA RAO
Partner
Place: Visahakapatnam Partner Membership No. 018545
Date: 29.06.2021 UDIN: 21018545AAAADY1636

ANNEXURE "A" TO THE INDEPENDENT AUDITORS' REPORT

The Annexure A referred to in our Independent Auditor's report of even date tothe members of COASTAL CORPORATION LIMITED VISAKHAPATNAM for the year ended 31 March2021. We report that:

i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. b) The fixed assets have beenphysically verified by the management during the year. According to the informationfurnished to us no material discrepancies have been noticed on such verification. c) Thetitle deeds in respect of all immovable properties are held in the name of the company.

ii) Physical verification of inventory has been conducted during the year by themanagement at reasonable intervals. The discrepancies noticed on such verification betweenthe physical stocks and the book records were not material.

iii) The Company has granted interest-free unsecured loans to its wholly ownedSubsidiary companies covered in the register maintained under section 189 of the CompaniesAct 2013. a. The total amount outstanding as at 31.03.2021 is Rs. 603.23 lakhs andbased on the information and explanations given by the management the terms andconditions are not prejudicial to the interest of the company. b. The terms ofrepayment of loans have not been scheduled as the same were advanced to its wholly ownedsubsidiary companies. Accordingly clause 3(iii)(c) of the Order is not applicable to thecompany in respect of repayment of the principal amount.

iv) The company has neither given during the year any loans to the directors orany other persons in whom the director(s) is interested nor given /provided anyguarantee/security in connection with any loan taken by directors or such other persons asper the provisions of section 185 of the Companies Act 2013. The investments made by thecompany in earlier years does not exceed the limits prescribed under section 186 of theCompanies Act 2013.

v) The Company has not accepted any deposits from the public. Consequently theclause 3(v) of the order is not applicable to the Company.

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

vii) a) According to the information and explanations given to us and on thebasis of examination of the records of the Company amounts deducted/ accrued in the booksof account in respect of undisputed statutory dues including provident fund employees'state insurance income-tax sales-tax service tax duty of customs duty of excisevalue added tax cess and other material statutory dues have been regularly depositedduring the year by the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amounts arepayable in respect of income tax sales tax service tax duty of customs duty of excisevalue added tax or cess and other material statutory dues which were in arrears as at 31stMarch 2021 for a period of more than six months from the date they became payable. b) Asat 31st March 2021 there have been no disputed dues which have not been deposited withthe respective authorities in respect of Income tax Service tax duty of customs duty ofexcise value added tax and Cess except the following:

Name of the Statute Name of Dues Amount in Lakhs Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 5.02 AY 2017-18 Commissioner of Income Tax (Appeals) Visakhapatnam
Income Tax Act 1961 Income Tax 0.95 AY 2018-19 Asst. Commissioner Circle 1(1) Visakhapatnam

viii) The Company has not defaulted in repayment of any loan instalments in respectof term loans taken from financial institutions and banks.

ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) whereas term loans raised during the financialyear under report have been applied for the purposes for which they were raised.

x) During the course of our examination of the books of account and records of theCompany carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of material fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the course of our audit.

xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

xii) In our opinion the company is not a Nidhi Company. Consequently the clause3(xii) of the order is not applicable.

xiii) According to the information and explanations given to us and on overallexamination of the records of the Company we report that all transactions with relatedparties are in compliance with the provisions of sections 177 and 188 of the CompaniesAct 2013 and the related party disclosures as required by relevant Indian AccountingStandards are disclosed in the standalone Ind AS financial statements.

xiv) According to the information and explanations given to us and on overallexamination of the records of the Company we report that the company has made apreferential allotment of convertible equity warrants in compliance with the provisions ofsection 42 of the Companies Act 2013 and the amount raised have been used for thepurposes for which the funds were raised.

xv) The Company has not entered into any non cash transactions with the directorsor persons connected with them during the year under report. Consequently the clause3(xv) of the order is not applicable.

xvi) The Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934. Consequently the clause 3

(xvi) of the order is not applicable.

For BRAHMAYYA & CO.
Chartered Accountants
Firm Reg No. 000513S
Sd/-
C.V. RAMANA RAO
Partner
Place: Visahakapatnam Partner Membership No. 018545
Date: 29.06.2021 UDIN: 21018545AAAADY1636

Annexure "B" to the Independent Auditors' Report

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of COASTALCORPORATION LIMITED ("the Company") as of 31st March 2021 in conjunctionwith our audit of the standalone Ind AS financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial controls

The Board of directors of the company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India ('ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") issued by ICAI and the Standards on Auditingprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 standalone Ind AS financial statements whether due to fraudor error. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over 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 Ind AS standalone Ind AS financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol over financial reporting includes those policies and procedures that: (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company. (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind ASstandalone Ind AS financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorised acquisitionuse or disposition of the company's assets that could have a material effect on thestandalone Ind AS 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 2021 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 BRAHMAYYA & CO.
Chartered Accountants
Firm Reg No. 000513S
SD/-
C.V. RAMANA RAO
Place: Visahakapatnam Partner
Date: 29.06.2021 Partner Membership No. 018545
UDIN: 21018545AAAADY1636

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