The Members of Coromandel Agro Products and Oils Limited
Report on the Financial Statements
We have audited the accompanying financial statements of M/s Coromandel Agro Productsand Oils Limited which comprise the Balance Sheet as at March 31 2017 and the Statementof Profit and Loss for the year ended on that date annexed thereto and Cash Flow Statementfor the year then ended and a summary of significant accounting policies and otherexplanatory information.
Management s Responsibility for the Financial Statements
The Company s Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ( the Act ) with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility alsoincludes the maintenance of adequate accounting records in accordance with the provisionof the Act for safeguarding of the assets of the Company and for preventing and detectingthe frauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.
Auditor s Responsibility
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe 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 financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial controls relevant to the Company s preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company s Directors as well as evaluating the overall presentation ofthe financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India;
a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2017;
b) in the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and
c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
1. As required by the Companies (Auditor s Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act we give in theAnnexure a statement on the matters specified in paragraphs 3 and 4 of the Order.
Report on other Legal and Regulatory Requirements
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 appears from our examination of those books
c) The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct.
f) As required under clause (i) a separate report on the internal financial controlsis annexed in Annexure herewith
g) With respect to the other matters included in the Auditor s Report and to our bestof our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition;
ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses; and
iii. The amounts which were required to be transferred to the Investor Education andProtection Fund by the Company have been so transferred;
h) The company has made requisite disclosures in its financial statements as itholdings as well as dealings in Specified Bank Notes during the period 08th November 2016to 30th December 2016 and such disclosures are in accordance with the books of accountsmaintained by the Company.
ANNEXURE TO THE AUDITORS REPORT (Ref. Coromandel Agro Products and Oils Limited) (Ofeven date referred to in Para 1 of our Report)
(i) a) Based on information provided and explanations offered to us the Company hasmaintained proper records showing full particulars including quantitative details andsituation of fixed assets.
b) Based on information provided to us all the Fixed Assets have not been physicallyverified by the management during the year but there is a regular program of verificationwhich in our opinion is reasonable having regard to the size of the Company and natureof its assets and to the best of our knowledge no material discrepancies were noticed onsuch verification.
c) Based on information provided and explanations offered to us the title deeds ofimmovable properties of the company are held in the name of the company.
(ii) a) As explained given to us physical verification of inventories has beenconducted by the Management at reasonable intervals.
b) In our opinion the procedures of physical verification of stocks followed by theManagement are reasonable and adequate in relation to the size of the Company and thenature of its business.
c) The Company has maintained proper records of inventories. As explained to us nomaterial discrepancies were noticed on physical verification of inventory.
(iii) Based on the information and explanations provided 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) Based on the information provided and explanations offered 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) Based on the information provided to us the Company has not accepted any depositsduring the year and hence in our opinion the sub-clause (v) is not applicable to thecompany for the year.
(vi) Based on the explanations given to us the Company has made and maintained costrecords and accounts as specified by the Central Government under Section 148 of theCompanies Act 2013.
(vii) (a) According to the records of the company the company is regular in depositingthe undisputed statutory dues including employees state insurance income-tax sales-taxwealth tax service tax duty of customs duty of excise value added tax Cess with theappropriate authorities;
(b) According to the information and explanations given to us there are no dues ofVAT income tax customs duty excise duty wealth tax service tax cess to be depositedon account of any dispute
(c) According to the information provided and explanations offered to us the companyis regular in transferring amounts to Investor Education and Protection Fund in accordancewith the relevant provisions of the Companies Act 1956 (1 of 1956) and rules made thereunder.
(viii) Based on the information provided and explanation given to us we are of theopinion that the Company has not defaulted in repayment of dues to Banks.
(ix) According to the information and explanations given to us no new term loans weretaken in the current FY 2016-17 and the term loans taken in earlier years were applied forthe purposes for which the loans were obtained.
(x) In our opinion and according to the information provided and explanations offeredto us no fraud on or by the Company has been noticed or reported during the year.
(xi) According to the explanations offered to us the Managerial remuneration has beenpaid in accordance with the requisite approvals mandated by the provisions of section 197read with Schedule V to the Companies 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 explanations 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) Based on the information provided the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review and the sub-clause (xiv) is not applicable to the company for theyear.
(xv) Based on the information provided and explanations offered to us the company hasnot entered into any non-cash transactions with directors or persons connected with themwith regards to the provision of section 192. Hence the sub-clause (xv) is not applicableto the company for the year.
(xvi) Based on the information provided and explanations offered to us the company isnot required to be registered under section 45-IA of the Reserve Bank of India Act 1934and hence this clause is not applicable to this company.
ANNEXURE TO THE AUDITORS REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF
M/s Coromandel Agro Products and Oils Limited [Re : Clause 2(f) of the independentauditors report]
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ( the Act )
We have audited the internal financial controls over financial reporting of M/sCoromandel Agro Products and Oils Ltd as on March 31 2017 in conjunction with our auditof the standalone financial statements of the Company for the year ended on that date.
Management s Responsibility for Internal Financial Controls
The Company s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company s policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.3
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingand the Standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects. Our audit involves performing procedures to obtainaudit evidence about the adequacy of the internal financial controls system over financialreporting and their operating effectiveness. Our audit of internal financial controls overfinancial reporting included obtaining an understanding of internal financial controlsover financial reporting assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor s judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) 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
(3) 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 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.
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 March 31 2017 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.
| ||For M/s A.RAMACHANDRA RAO & Co. |
| ||Chartered Accountants |
| ||ICAI FRN:002857S |
| ||Sd/- |
| ||(A.Ramachandra Rao) |
|Place : CHILAKALURIPET ||Partner |
|Date : 29th May 2017 ||Membership No. :009750 |