Coromandel Agro Products and Oils Ltd.
|BSE: 507543||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE495D01018|
|BSE 05:30 | 01 Jan||Coromandel Agro Products and Oils Ltd|
|NSE 05:30 | 01 Jan||Coromandel Agro Products and Oils Ltd|
|BSE: 507543||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE495D01018|
|BSE 05:30 | 01 Jan||Coromandel Agro Products and Oils Ltd|
|NSE 05:30 | 01 Jan||Coromandel Agro Products and Oils Ltd|
To the Members of
Coromandel Agro Products and Oils Limited
Report on Audit of the Standalone Financial Statements
1. We have audited the standalone financial statements of Coromandel Agro Products andOils Limited ('the Company') which comprise the Balance Sheet as at 31 March 2019 and theStatement of Profit and Loss (including Other Comprehensive Income) Statement of Changesin Equity and Cash Flow Statement for the year then ended and notes to the financialstatements including a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "the standalone financialstatemens").
2. In our opinion and to the best of our information and according to the explanationgiven to us the aforesaid standalone financial statements gives the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2019 and profit (including othercomprehensive income) changes in equity and its cash flows for the year ended on thatdate.
Basis of Our Opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.
Key Audit Matters
Key audit Matters (KAM') are those that in our professional judgment were ofmost significance in our audit of standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.
We have determined depending on the facts and circumstances of the entity and theaudit performed that there are no key audit maters to communicate as there are nosignificant audit judgements relating to areas in the financial statements that involvedsignificant management judgement including accounting estimates that have been identifiedas having high estimation uncertainty.
Information Other than the Standalone Financial Statements and Auditors' Report thereon
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 and Board's Report including Annexures to Board's Report but doesnot include the standalone financial statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.
Management's Responsibility for the standalone financial statements
4. 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 financial statements that give a true and fair view of the financialposition financial performance total comprehensive income changes in equity cash flowsof the Company in accordance with the Indian Accounting Standards (Ind AS') andother accounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that the reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.
5. In preparing the standalone financial statements management and Board of Directorsare responsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
6. Board of Directors is also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibility for the Audit of Standalone Financial Statements
7. Our objectives are to obtain reasonable assurance about whether the standalonefinancial statement as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that include our opinion. Reasonable assuranceis the high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatement can arise due to fraud or error and are considered material if individuallyor in the aggregate they could reasonably expected influence the economic decisions ofusers taken on the basis of these financial statements.
8. As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional skepticism throughout the audit. We also:
Identify and assess risks of material misstatement of the standalone statementwhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidences that is sufficient and appropriate to provide a basisfor our opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryinternational omissions misrepresentation or the override of the internal control.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in circumstances. Under section 143(3)(i) ofthe Act we are responsible for expressing our opinion on whether the Company has adequateinternal financial controls with reference to standalone financial statements in place andthe operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of the management's use the going concern basisof accounting and based on the audit evidences obtained whether any material uncertaintyexists related to the events or conditions that may cast significant doubt on theCompany's ability to continue as going concern. If we conclude that a material uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the standalone financial statements or if such disclosures in adequate tomodify our opinion. Our conclusions are based on the audit evidences obtained up to thedate of our auditor' report. However future events or conditions may cause the Company tocease to continue as going concern.
Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
9. Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
10. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
11. We also provide those charged with governance with a statement that we havecomplied with the relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may be reasonably be thought to bear onour independence and where applicable related safeguards.
12. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of standalone financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
13. As required by the Companies (Auditor's Report) Order 2016 (the Order')issued by the Central Government of India in terms of Section 143(11) of the Act we givein the "Annexure A" a statement on the matters specified in paragraphs 3 and 4of the Order to the extent applicable.
14. 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 purpose 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 Profit and Loss including other comprehensiveincome Statement of Changes in Equity and Statement of Cash Flow dealt with by this reportare in agreement with the books of account;
d) in our opinion the aforesaid standalone financial statements comply with Ind ASspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rule2014.
e) on the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in termsof Section 164(2) of the Act;
f) with respect to the adequacy of the internal financial controls with respect tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B" 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 the standalone financial statements- Refer Note No.2.30 to the standalonefinancial statements.
ii) the Company has no long-term contract including derivative contracts requiringdisclosure of material foreseeable losses;
iii) there has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company except to the delay reported in theReport of Practicing Company Secretary attached to the Board of Directors Report;
15. With respect to the matters to be included in the Auditor's Report under section197(16):
In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 read with Schedule V of the Act. The remuneration paidto any director is not in excess of the limit laid down under Section 197 read withSchedule V of the Act. The Ministry of Corporate affairs has not prescribed other detailsunder Section 197( 16) which are required to be commented upon by us.
Annexure A to the Independent Auditor's Report of even date to the members ofCoromandel Agro Produets and Oils Limited on the standalone finaneial statements for theyear ended 31st March 2019.
Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:
(i) a) The Company has maintained proper records showing full particulars includingquantitative
details and situation of fixed assets.
b) The Company has a regular program of physical verification of its fixed assets underwhich fixed assets are verified in a phased manner over a reasonable period of yearswhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. In accordance with this program certain fixed assets were verifiedduring the year and no material discrepancies were noticed on such verification.
c) The title deeds of all the immovable properties (which are included under the headProperty plant and equipment') are held in the name of the Company.
In respect of immovable properties been taken on lease and disclosed as Property Plantand Equipment in the standalone financial statements the lease agreements are in the nameof the company.
(ii) In our opinion the management has conducted physical verification of inventory atreasonable intervals during the year. No material discrepancies were noticed on theaforesaid verification.
(iii) According to the information and explanation given to us the company has notgranted any loans whether secured or unsecured to the companies firms or other partiescovered in the Register maintained u/s. Sec. 189 of the Companies Act 2013 during theyear. Hence sub clauses (a) and (b) of clause 3(iii) of the order are not applicable tothe company for the year.
(iv) According to the information and explanation given to us the company has notgiven any loans investments guarantees and security in terms of provisions of section185 and 186 of the Companies Act 2013 and hence the sub-clause (iv) is not applicable tothe company for the year.
(v) The Company has not accepted any deposits during the year and hence in ouropinion the sub-clause (v) is not applicable to the company for the year.
(vi) The Company has made and maintained cost records and accounts as specified by theCentral Government under Section 148 of the Companies Act 2013. However we have not madea detailed examination of the cost records with a view to determine whether they areaccurate / complete.
(vii) (a) The company is generally regular in depositing the undisputed statutory duesincludingemployees provident fund employees' state insurance income-tax goods andservices tax duty of customs Cess with the appropriate authorities;
According to the information and explanation given to us no undisputed amounts payablein respect of provident fund Employees' State Insurance Income-tax Goods and ServiceTax duty of Customs Cess and other material statutory dues were in arrears as at 31stMarch 2019 for a period more than six months from the date they became payable.
(b) The net dues outstanding in respect of duty of excise on account of dispute are asfollows :
( viii) The Company has not defaulted in repayment of loans or borrowings to banks. TheCompany has no loans or borrowings payable to government and does not have any outstandingdebentures.
(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and did not have any term loans outstandingduring the year. Accordingly the provisions of Clause 3(ix) of the Order are notapplicable.
(x) To the best of our knowledge and according to the information and explanation givento us no material fraud by the Company or on the Company by its offers or employees hasbeen noticed or reported during the period covered by our audit.
(xi) In our opinion and according to the information and explanation given to usmanagerial remuneration has been paid / provided by the Company in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013.
(xii) The Company is not a Nidhi Company as per section 406 of the Companies Act 2013and hence the sub-clause (xii) is not applicable to the company.
(xiii) According to the information and explanation given to us all transactions withthe related parties are in compliance with sections 177 and 188 of Companies Act 2013 anddetails have been disclosed in the Financial Statements to the extent applicable.
(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review and thesub-clause (xiv) is not applicable to the company for the year.
(xv) The company has not entered into any non-cash transactions with directors orpersons connected with them with regards to the provision of section 192.Hence thesub-clause (xv) is not applicable to the company for the year.
(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 and hence this clause is not applicable to this company.
Annexure B to the Independent Auditors' Report of even date to the members ofCoromandel Agro Products and Oils Limited on the standalone financial statements for theyear ended 31st March 2019
Independent Auditors' Report on the Internal Financial Controls Under Clause (i) ofSubSection 3 of Section 143 of the Act:
In conjunction with our audit of the standalone financial statements of Coromandel AgroProducts and Oils Limited (the Company) as at and for the year ended 31st March 2019 wehave audited the internal financial controls over financial reporting of the company as ofthat date.
Management's Responsibility For Internal Financial Controls :
The Company's Board of Directors 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 ("ICAl").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 under 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 Standards on Auditing issued by ICAI and deemed to be prescribed under Section143(10) of the Act to the extent applicable to an audit of internal financial controlsand a guidance note issued by the ICAI. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
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.
Moaning 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 purpose in accordance with generallyaccepted accounting principles. A Company's internal financial controls over financialreporting include those policies and procedures that:
(a) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(b) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statement 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
(c) 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.
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 of 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.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2019 based on theinternal Control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.