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
We have audited the accompanying Statement of Standalone Financial Results ofCoromandel Agro Products and Oils Limited (the Company') for the quarter and yearended 31st March 2021 (the Statement') submitted by the Company pursuant to therequirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 as amended (the Listing Regulations'). In our opinion and to thebest of our information and according to the explanations given to us the statement:
a) Is presented in accordance with the requirements of Regulation 33 of the ListingRegulations; and
b) Gives a true and fair view in conformity with the recognition and measurementprinciples laid down in the Indian Accounting Standards ("Ind AS") and otheraccounting principles generally accepted in India of the net profit for the period andtotal comprehensive income and other financial information of the Company for the quarterand year then ended 31st March 2021.
2. Basis for Opinion
We conducted our audit of the Statement in accordance with the Standards on Auditing("SA"s) specified under Section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditors' Responsibilities for the Audit ofthe Standalone Financial Results section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia ("ICAI") together with the ethical requirements that are relevant to ouraudit of the Standalone Financial Results for the quarter and year ended 31st March 2021under the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion.
3. Management's Responsibilities for the Standalone Financial Results
This statement which includes the Standalone financial results is the responsibilityof the Company's Board of Directors and has been approved by them for the issuance. TheStatement has been compiled from the related audited Interim condensed standalonefinancial statements for the three months and year ended 31st March 2021. Thisresponsibility includes preparation and presentation of the Standalone Financial Resultsfor the quarter and year ended 31st March 2021 that give a true and fair view of the netprofit and other comprehensive income and other financial information in accordance withthe recognition and measurement principles laid down in Ind AS prescribed under Section133 of the Act read with relevant rules issued thereunder and other accounting principlesgenerally accepted in India and in compliance with Regulation 33 of the ListingRegulations. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgment and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe
Standalone Financial Results that give a true and fair view and is free from materialmisstatement whether due to fraud or error.
In preparing the Standalone Financial Results the Board of Directors is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless the Board of Directors either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the financial reportingprocess of the Company.
4. Auditors' Responsibilities for the Audit of the Standalone Financial Results
Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Results as a whole is free from material misstatement whether due to fraud orerror and to issue an auditors' report that includes our opinion. Reasonable assurance isa high level of assurance but is not a guarantee that an audit conducted in accordancewith Ass will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of this Standalone Financial Results.
As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional scepticism throughout the audit. We also:
? Identify and assess the risk of material misstatement of the Standalone FinancialResults whether due to fraud or error design and perform audit procedures responsive tothose risks and obtain audit evidence 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 misrepresentations or the override of internal control.
? Obtain an understanding of internal financial controls relevant to the audit in orderto design audit procedures that are appropriate in the circumstances but not for thepurpose of expressing an opinion on the effectiveness of such controls.
? Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates made by the Board of Directors.
? Evaluate the appropriateness and reasonableness of disclosures made by the Board ofDirectors in terms of the requirements specified under Regulation 33 of the ListingRegulations.
? Conclude on the appropriateness of the Board of Directors' use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theability of the Company to continue as a going concern. If we conclude that a materialuncertinity exists we are required to draw attention in our auditors' report to therelated disclosures in the Statement or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditors' report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
? Evaluate the overall presentation structure and content of the Standalone FinancialResults including the disclosures and whether the Standalone Financial Results representthe underlying transactions and events in a manner that achieves fair presentation.
? Obtain sufficient appropriate audit evidence regarding the Standalone FinancialResults of the Company to express an opinion on the Standalone Financial Results.
Materiality is the magnitude of misstatements in the Standalone Financial Results thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Standalone Financial Results 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 Results.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationship and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
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 2021.
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 aregular program of physical verification of its Property Pland and Equipment under whichthese assets are verified in a phased manner over a reasonable period of years which inour opinion is reasonable having regard to the size of the Company and the nature of itsassets. However as informed during the year no physical verification of Property Plantand Equipment was conducted as per phased programme due to covid 19 lockdown. c) The titledeeds of all the immovable properties (which are included under the head Propertyplant and equipment') in the standalone financial statements are held in the name of theCompany.
In respect of immovable properties taken on lease and disclosed as Property Plant andEquipment in the standalone financial statements the lease agreements are in the name ofthe company (ii) As informed the management has not conducted physical verification ofinventory during the year due to covid19 restrictions. In the absence of physicalverification of inventory no comment on discrepancies. Further as informed the inventoryconsidered as at 31.03.2021 is as per stock records maintained by the company andinformation submitted to bank for its working capital loan. (iii) According to theinformation and explanation given to us the company has not granted any loans whethersecured or unsecured to the companies firms or other parties covered in the Registermaintained u/s. Sec. 189 of the Companies Act 2013 during the year. Hence sub clauses (a)and (b) of clause 3(iii) of the order are not applicable to the company for the year. (iv)According to the information and explanation given to us the company has not given anyloans investments guarantees and securityin terms of provisions of section 185 and 186of the Companies Act 2013 and hence the sub-clause (iv) is not applicable to the companyfor the year. (v) The Company has not accepted any deposits during the year and hence inour opinion 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 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 2021 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 andexplanation given to us no material fraud by the Company or on the Company by itsofficers or employees has been 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 theCompanies Act2013 and hence the sub-clause (xii) is not applicable to the company. (xiii)According to the information and explanation given to us all transactions with therelated 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 placementof shares 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 notentered into any non-cash transactions with directors or persons connected with them withregard to the provision of section 192. Hence the sub-clause (xv) is not applicable to thecompany for the year. (xvi) The company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934 andhence this clause is not applicable tothis 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 2021
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 2021 we haveaudited the internal financial controls over financial reporting of the company as of thatdate.
Basis for disclaimer
As morefully explained 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 2021based 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 in determining the nature timing and extentof audit procedures applied in our audit of the standalone financial statements of thecompany and the disclaimer does not affect our opinion on the Standalone financialstatements 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 appropriate readwith disclaimer made as above to provide a basis for our audit opinion on the Company'sinternal 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions 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 read with basis fordisclaimer an adequate internal financial controls system over financial reporting andsuch internal financial controls over financial reporting were operating effectively as at31st March 2021 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. (ICAI).