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Coromandel Engineering Company Ltd.

BSE: 533167 Sector: Infrastructure
NSE: COROENGG ISIN Code: INE312J01012
BSE 00:00 | 25 Apr 26.65 -0.50
(-1.84%)
OPEN

27.00

HIGH

27.85

LOW

26.65

NSE 05:30 | 01 Jan Coromandel Engineering Company Ltd
OPEN 27.00
PREVIOUS CLOSE 27.15
VOLUME 680
52-Week high 52.25
52-Week low 17.70
P/E
Mkt Cap.(Rs cr) 89
Buy Price 26.40
Buy Qty 100.00
Sell Price 27.85
Sell Qty 100.00
OPEN 27.00
CLOSE 27.15
VOLUME 680
52-Week high 52.25
52-Week low 17.70
P/E
Mkt Cap.(Rs cr) 89
Buy Price 26.40
Buy Qty 100.00
Sell Price 27.85
Sell Qty 100.00

Coromandel Engineering Company Ltd. (COROENGG) - Auditors Report

Company auditors report

TO THE MEMBERS OF COROMANDEL ENGINEERING COMPANY LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of M/s COROMANDEL ENGINEERINGCOMPANY LIMITED ("the Company") which comprise the Balance sheet as at 31stMarch 2018 the Statement of Profit and Loss and the Cash Flow Statement for the financialperiod then ended and a summary of significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Financial Statements

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 financial statements that give a true and fair view of the financial posifionfinancial performance and cash flows of the Company in accordance with the accounfingprinciples generally accepted in India including the Accounfing Standards specified underSection 133 of the Act read with Rule 3 of the Companies (Indian Accounfing Standards)Rules 2015 and Companies (Indian Accounfing Standards) Amendment Rules 2016. Thisresponsibility also includes maintenance of adequate accounfing records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecfing frauds and other irregularifies; selection and application of appropriateaccounfing policies; making judgments and esfimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effecfively for ensuring the accuracy and completeness of the accounfingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 accounfing and audifingstandards and

matters which are required to be included in the audit report underthe provisions ofthe Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Audifing 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 andthe 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 control 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 accounfing policies used and the reasonableness of the accounfingesfimates made by the Company's Directors as well as evaluating the overall presentationofthefinancial 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.

Opinion

In our opinion and to the best of our information and according to the explanafionsgiven 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 accounfingprinciples generally accepted in India:

(a) of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2018;

(b) in the case of the Statement of Profit and Loss of the loss for the year ended onthat date; and

(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the "Annexure 1" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. As required by Sectionl43 (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 it appears from our examination ofthose books.

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of accounts.

(d) In our opinion the aforesaid financial statements comply with the AccounfingStandards specified under Section 133 of the Act read with Rule 3 of the Companies(Indian Accounfing Standards) Rules 2015 and Companies (Indian Accounfing Standards)Amendment Rules 2016.

(e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 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 Group and the operating effectiveness of such controls refer to ourseparate report in "Annexure 2".

(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 in our opinionand to the best of our information and according to the explanations given to us:

i. the Company has disclosed the impact of pending litigations on its financialposition in its financial statements- Refer Note 30.

ii. The company did not have any longterm contracts including derivafive contracts forwhich there were any 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.

For CNGSN & ASSOCIATES LLP
Chartered Accountants
F.R.NO.004915S/S200036
C N GANGADARAN
Place: Chennai Partner
Date: 26.04.2018 Membership No 011205

ANNEXURE 1 TO THE AUDITOR'S REPORT

Referred to in Paragraph 1 of Report on Other

Legal and Regulatory Requirements of our Report

of even date

i) a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. According to the informationand explanations given to us no material discrepancies were noticed on such physicalverification.

c) There are no immovable properties held by the company.

ii. Physical verification of inventory has been conducted at reasonable intervals bythe management and no material discrepancies were noticed on such verification.

iii. According to the information and explanations given to us during the year theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under Section189 of the Companies Act 2013.

iv. In our opinion and according to the information and explanations given to us theCompany has

not given any loans guarantees and securities and has not made any investments.

v. In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits during the year. Accordingly reporting under thisclause does not arise.

vi. The Central Government has vide notification dated 3rd June 2011prescribed the maintenance of cost records by various classes of companies. We havebroadly reviewed books of accounts maintained by the company pursuant to the rules undersection 148 (1) of the Companies Act 2013 and are of the opinion prima facie theprescribed accounts and records have been made and maintained

vii. a) According to the records of the Company

and information and explanations given to us the company is regular in depositingundisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax wealth tax service tax duty of customs duty of excise valueadded tax cess and any other statutory dues with the appropriate authorities. There areno undisputed statutory dues outstanding for more than six months.

b) As at 31st March 2018 according to the records of the Company thefollowing are the particulars of the disputed dues on account of value added tax and entrytax:

S.No Nature of Dues Amount Disputed (Rs in Lakhs) Amount paid under protest (Rs in Lakhs) Forum where Pending
1 Andhra Pradesh VAT 43.32 28.37 The Appellate Deputy Commissioner(CT) (2006-07 & 2007-08)
2 Telangana VAT 86.50 26.62 STAT Hyderabad (2010-11 to 2012-13)
3 Tamil Nadu Entry Tax 2.99 2.99 Additional Commissioner Chennai (AY 2012-13)

viii. Based on our audit procedures and according to the information and explanationsgiven to us by the management we are of the opinion that the company has not defaulted inrepayment of loans or borrowings to a financial institution bank Government. The companyhas not issued any debentures.

ix. The company has not raised money by way of initial public offer or further publicoffer during the Current year and the term loans were applied for the purposes for whichthose were raised.

x. In our opinion and according to the information and explanations given to us nofraud by the company or any fraud on the company by its officers or employees has beennoticed or reported during the financial period.

xi. In our opinion and according to the information and explanations given to usmanagerial remuneration has been provided in accordance with the requisite approvalsmandated by Section 197 read with Schedule V of the Companies Act2013.

xii. I n our opinion the Company is not a Nidhi Company. Accordingly clause xii ofPara 3 of Companies (Auditors Report) Order 2016 is not applicable.

xiii. In our opinion and according to the information and explanation given to us alltransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where applicable and the details have

been disclosed in the Financial Statements as required by the applicable accountingstandards.

xiv. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.

Based on the above para matters referred in clause (xiv) of paragraph 3 of Companies(Auditors Report) Order 2016 is not applicable.

xv. I n our opinion and according to the information and explanations given to us theCompany has not entered into any non - cash transactions with directors or personsconnected with the Directors. Accordingly clause xv of Para 3 of Companies (AuditorsReport) Order 2016 is not applicable.

xvi. In our opinion and according to the information and explanations given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934. Accordingly clause xvi of Para 3 of Companies (Auditors Report) Order 2016 isnot applicable.

For CNGSN & ASSOCIATES LLP
Chartered Accountants
LLP - F.R.NO.004915S/S200036
Place : Chennai C.N GANGADARAN
Date : 26.04.2018 Partner
Membership No.11205

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S 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 ENGINEERING COMPANY LIMITED ("the Company") as of March 31 2018 inconjunction with our audit of the financial statements of the Company for the year endedon 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.

Auditors' 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 Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require

that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 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 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material 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.

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 March 31 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 CNGSN & ASSOCIATES LLP
Chartered Accountants
LLP - F.R.NO.004915S/S200036
Place : Chennai C.N GANGADARAN
Date : 26.04.2018 Partner
Membership No.011205