THE MEMBERS OF
COROMANDEL ENGINEERING COMPANY LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of Coromandel Engineering CompanyLimited ("the Company") which comprise the Balance Sheet as at 31stMarch2017 the statement of Profit and Loss Cash flow statement for the year then ended and asummary of significant accounting policies and other explanatory information.
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 positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.
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 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 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.
INDEPENDENT AUDITOR'S Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act") is enclosedin Annexure A.
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 of the state of affairs of the Company as at 31stMarch 2017 and its loss and cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
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 it appears from our examination of those books.
c. The Balance Sheet Statement of Profit & 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 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director interms of Section 164 (2) of the Act.
f. 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 No. 25 to the financial statements.
(ii) The company has made provision as required under any law or accounting standardsfor material foreseeable losses if any on long term contracts.
(iii) There has been no delay in transferring amounts required to be transferred tothe investor education and protection fund by the company.
(iv) The company had provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with thebooks of accounts maintained by company.
g. As required by the Companies (Auditor's Report) order 2016 issued by the CentralGovernment of India in terms of subsection (11) of section 143 of the Act we give in theAnnexure B a statement on the matters specified in paragraphs 3 & 4 of the Order.
| ||For SUNDARAM & SRINIVASAN |
| ||Chartered Accountants |
| ||Regn.No.004207S |
| ||M. PADHMANABHAN |
|Place: Chennai ||Partner |
|Date: 29.04.2017 ||Membership No.F13291 |
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTSOF COROMANDEL ENGINEERING COMPANY LIMITED
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 CoromandelEngineering Company Limited ("the Company") as of March 31 2017 in conjunctionwith our audit of the 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.
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 ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal
financial controls over financial reporting was established and maintained and if suchcontrols 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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.
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 SUNDARAM AND SRINIVASAN
Chartered Accountants (Firm's Registration No.004207S)
|Place : Chennai ||(M PADHMANABHAN) |
|Date : 29.04.2017 ||Partner |
| ||Membership No. F13291 |
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
(b) According to the information given to us major portion of fixed assets have beenphysically verified by the management during the year at reasonable intervals. Certaindiscrepancies which were noticed on such verification have been properly dealt with in thebooks of account.
(c) There are no immovable properties held by the company.
(ii) The inventory has been physically verified by the management at reasonableintervals. The discrepancies between the physical stocks and the book stocks were notmaterial and have been properly dealt with in the books of account.
(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 anyinvestments.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has vide notification dated 3rd June 2011prescribed maintenance of cost records by various classes of companies. We have broadlyreviewed books of accounts maintained by the company pursuant to the rules made by theCentral Government for the maintenance of the cost records under Section 148 of theCompanies Act 2013 and are of the opinion prima facie the prescribed accounts andrecords have been made and maintained.
(vii) (a) According to the records information and explanations given to us theCompany is generally regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income- taxsales-tax service tax VAT cess and other statutory dues applicable to it and noundisputed amounts payable were outstanding as on 31st March 2017 for a periodof more than six months from the date they become payable.
(b) According to the information and explanation given to us the following are thedetails of disputed VAT dues with the authorities concerned.
|NAME OF THE ||FORUM ||DISPUTED |
|STATUTORY ||WHERE ||AMOUNT (Rs. in |
|DUES ||DISPUTE IS ||lakhs) |
| ||PENDING || |
|Andhra ||The Appellate ||43.32 |
|Pradesh VAT ||Deputy Commissioner (CT) 2006-07 & 2007-08 (Rs. 20.49 lakhs deposited) || |
(viii) The company has not defaulted in repayment of loans or borrowing to a financialinstitution bank and Government. The company has not issued any debentures.
(ix) The company had not raised moneys either by way of initial public offer or furtherpublic offer (including debt instruments) and term loans were applied for the purposes forwhich those are raised.
(x) According to the information and explanations given to us by the management andbased on audit procedures performed no fraud by the company or any fraud on the companyby its officers or employees has been noticed or reported during the course of our audit.
(xi) Managerial remuneration has been provided in accordance with the requisiteapprovals mandated by section 197 read with schedule V to the Companies Act.
(xii) The company is not a Nidhi company.
(xiii) All transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013 where applicable and the details have been disclosed in thefinancial statements as required by the applicable accounting standards.
(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year.
(xv) The company has not entered into any non cash transactions with directors orpersons connected with them.
(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act1934.
For SUNDARAM & SRINIVASAN
Chartered Accountants Regn.No.004207S
|Place : Chennai ||(M PADHMANABHAN) |
|Date : 29.04.2017 ||Partner |
| ||Membership No. F13291 |