Coromandel Engineering Company Limited reported a net profit of ₹16.88 lakh for the financial year ended March 31, 2026, reversing the net loss of ₹95.98 lakh recorded in the previous year. Revenue from operations for the year stood at ₹4,308.84 lakh, a significant increase from ₹3,128.89 lakh in FY25. The board of directors approved the audited standalone financial results at its meeting held on May 25, 2026.

The statutory auditors, M/s. CNGSN & Associates LLP, included an emphasis of matter paragraph in their report regarding delays in the remittance of statutory dues. Specifically, delays were observed in the payment of Goods and Services Tax (GST), Tax Deducted at Source (TDS), Employees' Provident Fund (EPF), and Employees' State Insurance (ESI) contributions. Additionally, TDS for the months of February and March remained unpaid as of the reporting date.

Financial Performance

The company's total income for FY26 rose to ₹4,325.14 lakh from ₹3,130.77 lakh in the prior year. Total expenses also increased to ₹4,308.26 lakh compared to ₹3,226.75 lakh in FY25, driven largely by sub-contracting expenses which surged to ₹2,653.30 lakh from ₹756.75 lakh. Profit before exceptional items and tax improved to ₹16.88 lakh from a loss of ₹95.98 lakh.

Auditor's Observations

The auditors also drew attention to unpaid dues to Micro, Small and Medium Enterprises (MSMEs), including interest, aggregating to ₹10,05,21,229. These payments remain unpaid beyond the due dates prescribed under the Micro, Small and Medium Enterprises Development Act, 2006. The auditors noted that owing to the voluminous nature of transactions, a comprehensive verification of GST and Input Tax Credit (ITC) claims was difficult, necessitating reliance on internal audit reports.

Coromandel Engineering Company announced key changes to its Board and auditor appointments following a meeting on May 25, 2026. The Board approved the appointment of Dr. Swetha as an Additional Director and re-appointed M/s. B. Thiagarajan & Co. as Internal Auditor. Concurrently, Mr. S Baskaran resigned from his position as a Non-Executive Director.

Dr. Swetha (DIN: 01728751) was appointed as an Additional Director in the category of Non-Executive, Non-Independent Director, effective May 25, 2026. This appointment is subject to the approval of the shareholders and was made pursuant to Section 161 of the Companies Act, 2013. Dr. Swetha is related to Mr. Sundeep Anand Jegath Rekshagan, a Promoter of the Company, but is not related to any other Directors.

The Board also re-appointed M/s. B. Thiagarajan & Co., Chartered Accountants, as the Internal Auditor for a two-year term covering the financial years 2026-2027 and 2027-2028. This decision was based on the recommendation of the Audit Committee.

Mr. S Baskaran (DIN: 01918525) tendered his resignation as a Non-Executive Non-Independent Director, effective May 25, 2026. The resignation was attributed to preoccupation and other personal commitments.

Director and Auditor Details