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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

Coromandel Agro Products and Oils Ltd. (COROMANDELAGRO) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR’S REPORT

To the Members of Coromandel Agro Products and Oils Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of Coromandel AgroProducts and Oils Limited ('the Company') which comprise the Balance Sheet as at 31 March2018 the Statement of Profit and Loss (including Other Comprehensive Income) the CashFlow Statement and the Statement of changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the standalone Financial statements

2. 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 state ofaffairs (financial position) profit and loss (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (‘Ind AS’) specified under Section 133 of the Act. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that the reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. 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 thereunder. 5. we conducted our audit inaccordance with the Standards on Auditing specified under Section

143(10) of the Act. Those Standards require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether thesestandalone financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial controls relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company’s Directors as well as evaluating the over allpresentation of the financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on these standalone financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including Ind AS specified under Section133 of the Act of the state of affairs (financial position) of the Company as at 31stMarch 2018 and its loss (financial performance including other comprehensive income) itscash flows and the changes in equity for the year ended on that date.

Other Matter

9. The audited standalone financial statements for the year ended 31 March 2017 wascarried out and reported by A.Ramachandra Rao & Co. vide their unmodified auditreport dated 29th May 2017 whose report has been furnished to us by themanagement and which has been relied upon by us for the purpose of our audit of thestandalone financial statements. Our audit report is not qualified in respect of thismatter.

Report on Other Legal and Regulatory Requirements

10. As required by the Companies (Auditor’s Report) Order 2016 (‘theOrder’) issued by the

Central Government of India in terms of Section 143(11) of the Act we give in theAnnexure A a statement on the matters specified in paragraphs 3 and 4 of the Order. 11.Further to our comments in Annexure A as required by Section 143(3) of the Act we reportthat:

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 standalone financial statements dealt with by this report are in agreement withthe books of account;

d) in our opinion the aforesaid standalone financial statements comply with Ind ASspecified under Section 133 of the Act;

e) on the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors are disqualified as on 31stMarch 2018 and being appointed as a director in terms of Section 164(2) of the Act;

f) we have also audited the internal financial controls over financial reporting of theCompany as on 31st March 2018 in conjunction with our audit of the standalonefinancial statements of the Company for the year ended on that date and our report as perAnnexure B expressed an unqualified opinion;

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.

ii) the Company has no long-term contract including derivative contracts requiringdisclosure of material foreseeable losses;

iii) there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company;

For NATARAJA IYER & CO.
CHARTERED ACCOUNTANTS
ICAI FRN:002413S
Sd/-
(E.SRI RANGANATH)
Place : Chilakaluripet PARTNER
Date : 28.05.2018 ICAI Membership No. 013924

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 2018.

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 head‘Property plant and equipment’) are held 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) The company has not granted any loans whether secured or unsecured to thecompanies firms or other parties covered in the Register maintained u/s. Sec. 189 of theCompanies Act 2013 during the year. Hence sub clauses (a) and (b) of clause 3(iii) of theorder are not applicable to the company for the year.

(iv) The company has not given any loans investments guarantees and security interms of provisions of section 185 and 186 of the Companies Act 2013 and hence thesub-clause (iv) is not applicable to the 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 duesincluding employees provident fund employees’ state insurance income-tax wealthtax goods and services tax duty of customs Cess with the appropriate authorities;

(b) The net dues outstanding in respect of duty of excise on account of dispute are asfollows:

Period Forum where pending Cess No. Total (Refund) Demand Paid (to be received)
01.11.2007 to CESTAT APPEAL NO. (981132) to be
01.04.2008 ST/1587/2010 dt 05.08.2010 received
01.05.2008 to CESTAT APPEAL NO. 314152 314152
30.11.2008 CESTAT ST/1383/2010 dt 27.07.2010
01.03.2009 to SOUTHERN CESTAT APPEAL NO. 401327 NIL
30.09.2009 ZONE ST/2796/2011 dt 17.01.2012
BENCH
01.01.2012 to CESTAT APPEAL MISC 427622 213811
31.03.2012 ORDER NO. 21180/2015 dt
01.03.2011 to CESTAT NO. E/21557/2014-DB Refund to be
28.02.2012 received

(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) No fraud by the Company or on the Company by its officers or employees have beennoticed or reported during the period covered by our audit.

(xi) Managerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 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) All transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013 and details have been disclosed in the Financial Statementsto 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.

For NATARAJA IYER & CO.
CHARTERED ACCOUNTANTS
ICAI FRN:002413S
Sd/-
(E.SRI RANGANATH)
Place : Chilakaluripet PARTNER
Date : 28.05.2018 ICAI Membership No. 013924

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 2018

Independent Auditors’ Report on the Internal Financial Controls Under Clause (i)of Sub-Section 3 of Section 143 of the Act: In conjunction with our audit of thestandalone financial statements of Coromandel Agro Products and Oils Limited (the Company)as at and for the year ended 31st March 2018 we have audited the internal financialcontrols over financial reporting of the company as of that 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''). 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.

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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting:

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purpose in accordance with generallyaccepted accounting principles.

Company's internal financial control over financial reporting include those policiesand procedures that : (a) Pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe 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.

Opinion:

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 2018 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 NATARAJA IYER & CO.
CHARTERED ACCOUNTANTS
ICAI FRN:002413S
Sd/-
(E.SRI RANGANATH)
Place : Chilakaluripet PARTNER
Date : 28.05.2018 ICAI Membership No. 013924