Coromandel Engineering review flags Rs 8.59 crore MSME dues

Coromandel Engineering Company Limited’s limited-review report for the quarter ended September 30, 2026 highlighted Rs 8.59 crore of overdue dues to micro and small enterprises, including interest, alongside delayed statutory remittances. The reviewer also identified Rs 26.85 lakh of unpaid Tax Deducted at Source and Rs 7.24 lakh of unpaid Employees’ Provident Fund contributions.

What did Coromandel Engineering’s reviewer flag?

Coromandel Engineering’s reviewer flagged Rs 8.59 crore of dues, including interest, owed to micro and small enterprises that remained unpaid beyond deadlines prescribed under the Micro, Small and Medium Enterprises Development Act, 2006. The matter appeared in the emphasis-of-matter section of the limited-review report dated November 14, 2026, covering standalone unaudited results for the quarter ended September 30, 2026.

The report also drew attention to delayed remittance of Goods and Services Tax, or GST; Tax Deducted at Source, or TDS; Employees’ Provident Fund, or EPF; and Employees’ State Insurance, or ESI, together with applicable interest. It said provisions had been made in the books for these delayed statutory items, unlike a separate Rs 13.75 lakh outstanding TDS demand for which no provision was recognised.

The reviewer specifically quantified Rs 26.85 lakh of TDS for April to September 2026 and Rs 7.24 lakh of EPF contributions for June to September 2026 as unpaid beyond their due dates. The supplied review-report text names GST and ESI among the delayed obligations but does not clearly disclose their individual unpaid amounts.

How large are the MSME dues compared with the stated statutory delays?

Coromandel Engineering’s Rs 8.59 crore overdue MSME balance was larger than the Rs 26.85 lakh TDS remittance and Rs 7.24 lakh EPF contribution specifically quantified in the report. The MSME amount includes interest and covers dues overdue under the MSMED Act, while the TDS and EPF items relate to statutory remittances over specified months of 2026.

The explicitly stated TDS and EPF delays total Rs 34.09 lakh, but that amount is not the total for all delayed statutory obligations. GST and ESI were also named in the November 14, 2026 review report, yet their individual balances were not legible or separately stated in the supplied disclosure.

The filing therefore identifies two distinct payment categories as of September 30, 2026. The Rs 8.59 crore item concerns supplier dues to micro and small enterprises, whereas GST, TDS, EPF and ESI relate to tax and employee-benefit remittances. Both categories were reported as overdue, but the report quantified the MSME exposure in crore terms.

Did the reviewer modify its conclusion on Coromandel Engineering?

No, the reviewer did not modify its conclusion in respect of the Rs 8.59 crore MSME dues, delayed statutory remittances or the Rs 13.75 lakh TDS demand. CNGSN & Associates LLP said nothing had come to its attention that caused it to believe Coromandel Engineering’s statement did not disclose required information or contained a material misstatement.

This was a limited review under Standard on Review Engagement 2410, rather than a full audit conducted under Standards on Auditing. The report says a review provides moderate assurance through enquiries, analytical procedures and other review work, and is substantially less extensive than an audit.

The reviewer also noted that the three-month figures ended September 30, 2026 were balancing figures between audited full-year figures and unaudited half-year figures. That observation concerns the preparation of quarterly results, while the overdue dues and statutory-payment matters were separately included in the emphasis-of-matter section.

What is the issue with the Rs 13.75 lakh TDS demand?

Coromandel Engineering had an outstanding TDS demand of Rs 13.75 lakh that remained unpaid at September 30, 2026, with no provision recognised in its books. This was distinct from the Rs 26.85 lakh delayed TDS remittance for April to September 2026, for which the reviewer said a provision had been made.

The November 14, 2026 filing does not state the assessment period, origin, expected settlement date or management’s basis for not recognising a provision for the Rs 13.75 lakh demand. The disclosure therefore does not establish whether Coromandel Engineering disputes the demand, expects relief or plans to settle it.

The accounting treatment separates the two TDS observations. Provisions were made for delayed statutory remittances and applicable interest, while no provision was recognised for the separately outstanding Rs 13.75 lakh demand. Future filings may show whether the demand is paid, provided for or otherwise resolved.

What should readers watch after this limited review?

Coromandel Engineering’s next results can show whether the Rs 8.59 crore of overdue MSME dues and delayed statutory remittances have been reduced or settled after September 30, 2026. The review report does not disclose a payment schedule, settlement target or cash-management plan for these items.

The board also approved a plan on November 14, 2026 to establish either a subsidiary or a wholly owned subsidiary in Sri Lanka, subject to applicable regulations. Coromandel Engineering cited global expansion and construction-business opportunities, but disclosed no entity structure, funding amount or implementation timetable.

Subsequent announcements can therefore be assessed for two disclosed developments: movement in the overdue balances and progress on the proposed Sri Lanka entity. The filing provides the November 14, 2026 board approval but does not link the overseas proposal to the payment matters identified by the reviewer.

Conclusion

Coromandel Engineering received an unmodified limited-review conclusion for the quarter ended September 30, 2026, while the reviewer specifically highlighted Rs 8.59 crore of MSME dues overdue under the MSMED Act. The report also identified delayed statutory payments, including Rs 26.85 lakh of TDS and Rs 7.24 lakh of EPF, plus a separate Rs 13.75 lakh TDS demand without a provision.

The next issue to watch is whether later financial results disclose payment or reduction of the overdue MSME and statutory balances, or recognition and settlement of the Rs 13.75 lakh demand. Separately, the Sri Lanka subsidiary or wholly owned subsidiary plan approved on November 14, 2026 remains subject to applicable regulations, with no implementation timetable disclosed.