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 2020 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 give 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 2020 and profit (including othercomprehensive income) changes in equity and its cash flows for the year then ended.
Emphasis of matter
Without qualifying our opinion we bring to your attention to the following:
1. Due to the continuous spreading of COVID -19 across India the Indian Governmentannounced a strict 21-day lockdown on March 24 2020 which was further extended till May17 2020 across the India to contain the spread of the virus. This has resulted inrestriction on physical visit to the Company's location and to rely on alternative auditprocedures as per the Standards on Auditing prescribed by the Institute of CharteredAccountants of India (ICAI).
2. As a result of the above the entire statutory audit of the Company has been carriedout based on remote access of the data as provided by the Company. This has been carriedout based on the advisory on "Specific Considerations while conducting DistanceAudit/ Remote Audit/ Online Audit of Company under current Covid-19 situation" issuedby the Auditing and Assurance Standards Board of ICAI. We have been represented by theGeneral Manager / Chief Financial Officer of the Company that the data provided for ouraudit purposes is correct complete reliable and are directly generated by the accountingsystem of the Company without any further manual modifications.
3. If we have carried out the audit physically at the Company location we might havebeen able to verify further sufficient appropriate audit evidence regarding thedocumentation records supporting the transactions.
4. The Company has based on current information available and based on the controls oninformation systems established for remote access of data for preparation of the financialstatements for the year ended March 31 2020 represented that all documentation records inrespect of the transactions are being maintained properly and no further impact isexpected on the financial performance of the Company for the year ended March 31 2020other than those included in the trial balance of the Company.
5. The financial performance of the Company has been thus prepared and presented by thecompany and audited by us in the aforesaid conditions.
6. We have also considered the disclaimers given in our report on Internal FinancialControls over Financial Reporting and our comments on matters referred in Company AuditorsReport order 2016 in determining the nature timing and extent of audit procedures appliedin our audit of the Standalone financial statements of the company and the disclaimer doesnot affect our opinion on the standalone financial statements of the company.
7. We draw attention to Note 2.40 to the standalone financial statements for the yearended March 31 2020 which describes the uncertainties and the management's assessment ofthe financial impact of the outbreak of Corona virus (COVID-19) on the business operationsand financial position of the Company In view of the highly uncertain economicenvironment a definitive assessment of the aforesaid impact in the subsequent periods isdependent upon circumstances as they evolve. Our conclusion is not modified in thismatter.
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 (ICAI) togetherwith the ethical requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the Rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate read with disclaimer made under Emphasis of matter to provide a basis forour opinion on the standalone financial statements.
Key Audit Matters
Key audit Matters (KAM') are those matters that in our professional judgmentwere of most significance in our audit of standalone financial statements of the currentperiod. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters depending on the factsand circumstances of the entity and the audit performed that there are no key audit matersto communicate as there are no significant audit judgements relating to areas in theStandalone financial statements that involved significant management judgement includingaccounting estimates that have been identified as having high estimation and uncertainty.
Information Other than the Standalone Financial Statements and Auditors' 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 and Board's Report including Annexures to Board's Report but doesnot include the standalone financial statements and our auditor's report thereon. Ouropinion on the standalone financial statements does not cover the other information and wedo not express any form of assurance conclusion thereon. In connection with our audit ofthe standalone financial statements our responsibility is to read the other informationand in doing so consider whether the other information is materially inconsistent withthe standalone financial statements or our knowledge obtained during the course of ouraudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing 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 are 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 statements 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 it individuallyor in the aggregate they could reasonably expected to influence the economic decisions ofusers taken on the basis of these standalone 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 financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidences that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentation or the override of the internalcontrol.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to standalone financial statements inplace and the 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 are inadequate to modify our opinion. Our conclusions are based on the audit evidences obtainedup to the date of our auditor' report. However future events or conditions may cause theCompany to cease 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 Standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone 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 wereport that:
a) we have sought and obtained read with disclaimer made under Emphasis of matter allthe information and explanations which to the best of our knowledge and belief werenecessary 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 thisreport are 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 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".
g) with respect to the matters to be included in the Auditor's Report under section197(16) of the Act as amended.
h) 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.
i) 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.
Annexure A to the Independent Auditor's Report of even date to the members ofCoromandel Agro Products and Oils Limited on the standalone financial statements for theyear ended 31st March 2020.
Based on the audit procedures performed for the purpose of reporting a true and fairview on the standalone financial statements of the Company and taking into considerationthe information and explanations given to us and the information examined by us in thecourse of audit and to the best of our knowledge and belief and in light of the mattersstated in the Emphasis of Matter Paragraph. we report that:
(i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property Plant and Equipment..
b) The Company has a regular program of physical verification of its Property Plandand Equipment under which these assets are verified in a phased manner over a reasonableperiod of years which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. However as informed during the year no physicalverification of Property Plant and Equipment was conducted as per phased programme due tocovid 19 lockdown.
c) The title deeds of all the immovable properties (which are included under the headProperty plant and equipment') in the standalone financial statements are held inthe name of the Company. In respect of immovable properties taken on lease and disclosedas Property Plant and Equipment in the standalone financial statements the leaseagreements are in the name of 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) As informed the Company has made and maintained cost records and accounts asspecified by the Central Government under Section 148 of the Companies Act 2013.Howeverwe have not made a detailed examination of the cost records with a view to determinewhether they are accurate / complete.
(vii) (a) The company is generally regular in depositing the undisputed statutory duesincluding employees provident fund employees' state insurance income-tax goods andservices tax duty of customs Cess with the appropriate authorities; According to theinformation and explanation given to us no undisputed amounts payable in respect ofprovident fund Employees' State Insurance Income-tax Goods and Service Tax duty ofCustoms Cess and other material statutory dues were in arrears as at 31stMarch 2020 for a period of more than six months from the date they became payable.
(b) The net dues outstanding in respect of duty of excise and service tax on account ofdispute are as follows:
(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 officers 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 Act2013and 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 standalone Financial Statements to the extentapplicable.
(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 regard 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 andhence 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 2020
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) for the year ended 31st March 2020 we haveaudited the internal financial controls over financial reporting of the company as of thatdate.
Basis for disclaimer
As explained vividly in the Emphasis of Matters paragraph we are unable to obtainsufficient appropriate audit evidence to verify the existence of internal financialcontrols over the financial reporting and whether they are operating effectively.
Disclaimer of Opinion
In our opinion and according to the information and explanations given to us and basedon the matters specified in the Basis for Disclaimer Paragraph above we are unable toexpress our opinion on the existence of internal financial controls over the financialreporting and their operative effectiveness compliance for the year ended March 31 2020based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India (ICAI). We have considered the above disclaimers indetermining the nature timing and extent of audit procedures applied in our audit of thestandalone financial statements of the company and the disclaimer does not affect ouropinion on the Standalone financial statements of the company
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''). 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 Act.
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 prescribed under Section 143(10) of theAct to the extent applicable to an audit of internal financial controls and a guidancenote issued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls 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 Standalone financial statements whether due to fraud orerror. We believe that the audit evidence we have obtained is sufficient and appropriateread with disclaimer made as above to provide a basis for our audit opinion on theCompany's internal financial controls 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 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 in all material respects read with basis for disclaimerhas an adequate internal financial controls system over financial reporting and suchinternal financial controls over financial reporting were operating effectively as at 31stMarch 2020 based on the internal Control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India. (ICAI).