COROMANDEL INTERNATIONAL LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
TO
THE MEMBERS OF
COROMANDEL INTERNATIONAL LIMITED
1. We have audited the attached Balance Sheet of COROMANDEL INTERNATIONAL
LIMITED ("the Company") as at 31 March 2012, the Statement of Profit and
Loss and the Cash Flow Statement of the Company for the year ended on that
date, both annexed thereto. These financial statements are the
responsibility of the Company`s Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit includes
examining, on a test basis, evidence supporting the amounts and the
disclosures in the financial statements. An audit also includes assessing
the accounting principles used and the significant estimates made by the
Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
3. As required by the Companies (Auditor`s Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a. we have obtained all the information and explanations which to the best
of 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 the Company so far as it appears from our examination of those
books;
c. the Balance Sheet, the Statement of Profit and Loss and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, the Statement of Profit and Loss and
the Cash Flow Statement dealt with by this report are in compliance with
the Accounting Standards referred to in Section 211(3C) of the Companies
Act, 1956;
e. in our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information required
by the Companies Act, 1956 in the manner so required and give a true and
fair view in conformity with the accounting principles generally accepted
in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2012;
(ii) in the case of the Statement of Profit and Loss, of the profit of the
Company for the year ended on that date and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. On the basis of the written representations received from the directors
as on 31 March 2012 taken on record by the Board of Directors, none of the
directors is disqualified as on 31 March 2012 from being appointed as a
director in terms of Section 274(1)(g) of the Companies Act, 1956.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 008072S)
Ganesh Balakrishnan
Partner
(Membership No.201193)
HYDERABAD, April 23, 2012
ANNEXURE TO THE AUDITORS` REPORT
(Referred to in paragraph 3 of our report of even date)
(i) Having regard to the nature of the Company`s business/
activities/result, clauses (x), (xii), (xiii), (xiv), (xviii), (xix) and
(xx) of CARO are not applicable.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification which, in
our opinion, provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanations given
to us, no material discrepancies were noticed on such verification.
(c) The fixed assets disposed off during the year, in our opinion, do not
constitute a substantial part of the fixed assets of the Company and such
disposal has, in our opinion, not affected the going concern status of the
Company.
(iii) In respect of its inventory:
(a) As explained to us, the inventories were physically verified during the
year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanations given
to us, the procedures of physical verification of inventories followed by
the Management were reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) In our opinion and according to the information and explanations given
to us, the Company has maintained proper records of its inventories and no
material discrepancies were noticed on physical verification.
(iv) In respect of loans, secured or unsecured, granted by the Company to
companies, firms or other parties covered in the Register under Section 301
of the Companies Act, 1956, according to the information and explanations
given to us:
(a) The Company has granted loans aggregating Rs.4950 Lakhs to three
parties during the year. All the loans granted were repaid before the year
end and the maximum amount involved during the year was Rs.4950 Lakhs
(number of parties three).
(b) The rate of interest and other terms and conditions of such loans are,
in our opinion, prima facie not prejudicial to the interests of the
Company.
(c) The receipts of principal amounts and interest have been as per
stipulations.
(d) There are no outstanding as at year end.
According to the information and explanations given to us, the Company has
not taken any loans, secured or unsecured from companies, firms or other
parties listed
in the register maintained under Section 301 of the Companies Act, 1956 and
accordingly clauses 4 (iii)(f) and (g) of CARO are not applicable.
(v) In our opinion and according to the information and explanations given
to us, there is an adequate internal control system commensurate with the
size of the Company and the nature of its business with regard to purchases
of inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in such
internal control system.
(vi) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to the
best of our knowledge and belief and according to the information and
explanations given to us:
(a) The particulars of contracts or arrangements referred to Section 301
that needed to be entered in the Register maintained under the said Section
have been so entered.
(b) Where each of such transaction is in excess of Rs.5 lakhs (other than
the loans mentioned in paragraph (iv) above) in respect of any party, the
transactions have been made at prices which are prima facie reasonable
having regard to the prevailing market prices at the relevant time.
(vii) According to the information and explanations given to us, the
Company has not accepted any deposit from the public during the year. In
respect of unclaimed deposits, the Company has complied with the provisions
of Sections 58A & 58AA or any other relevant provisions of the Companies
Act, 1956.
(viii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
(ix) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Companies Act,
1956 in respect of fertilisers and insecticides and are of the opinion that
prima facie the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of the
records with a view to determining whether they are accurate or complete.
To the best of our knowledge and according to the information and
explanations given to us, the Central Government has not prescribed the
maintenance of cost records for any other product of the Company.
(x) According to the information and explanations given to us in respect of
statutory dues:
(a) The Company has generally been regular in depositing undisputed dues,
including Provident Fund, Investor Education and Protection Fund,
Employees` State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty, Cess and other material statutory dues applicable
to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Income-tax,
Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory
dues in arrears as at 31 March, 2012 for a period of more than six months
from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on 31
March, 2012 on account of disputes are given below:
Statute & Nature Forum where Dispute is A B
of Dues pending
Karnataka Sales
Tax Act, 1957:
Value added tax Joint Commissioner (Appeals) 2005-06 to 34
2007-08
West Bengal Sales
Tax Act, 1994:
Sales tax Assistant Commissioner 2002-2003 4
(Appeals)
Andhra Pradesh
General Sales
Tax Act, 1957:
Sales tax Additional Commissioner Legal 1995-1996 to 27
1997-1998,
Sales Tax Appellate Tribunal 2000-2001to 70
2003-2004 and
2005-2006
Uttar Pradesh
Value Added
Tax Act, 2008
Sales tax Additional Commissioner 2005-2006 to 30
(Appeals) 2007-2008, 2010-11
Electricity Supply
Act, 1948
Electricity Cess High Court Andhra Pradesh 2003-2012 158
Central Excise
Act, 1944:
Excise duty High Court Andhra Pradesh 2003-04 24]
CESTAT 1998-2000,
2001-02, 2002-03,
2004-05 to 2008-09 222
Commissioner (Appeals) 2005-07 and
2011-12 14
The Customs
Act, 1962:
Customs duty CESTAT 1998-1999 11
Commissioner (Appeals) 2009-2010 25
The Finance
Act, 1994
Service tax CESTAT October 2007 to
October 2011 59
A = Period to which the amount relates
B = Amount involved (Rs. in lakhs)
(xi) In our opinion and according to the information and explanations given
to us, having regard to the rollover of buyer`s credit by the banks, the
Company has not defaulted in the repayment of dues to banks and financial
institutions. The Company has not issued any debentures.
(xii) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial institutions are
not prima facie prejudicial to the interests of the Company.
(xiii) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for which
they were obtained, other than temporary deployment pending application.
(xiv) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we report
that funds raised on short-term basis have not been used during the year
for long- term investment.
(xv) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud on
the Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 008072S)
Ganesh Balakrishnan
Partner
(Membership No.201193)
HYDERABAD,
April 23, 2012. |