Mar 31, 2015
We have audited the accompanying financial statements of Eastcoast
Steel Limited ("the Company"), which comprise the Balance Sheet as at
31st March, 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary 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 Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding the assets of the Company and for
preventing and detecting frauds and other irregularities; selection and
application of the appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
fair presentation of the financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143 (10) of the Act. Those standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement. An audit involves performing
procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the
auditor's judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
financial control relevant to the Company's preparation of the
financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on whether the Company has in
place an adequate internal financial controls system over financial
reporting and the operating effectiveness of such controls. An audit
also includes evaluating the appropriateness of accounting policies
used and the reasonableness of the accounting estimates made by the
Company's Directors, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide 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
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, its loss and its cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of Section
143 of the Act (18 of 2013), we give in the Annexure, a statement on
the matters specified in paragraph 3 and 4 of the Order.
2. As required under provisions of section 143(3) of the Act, we
report that:
a) We have sought and 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 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 aforesaid financial statements comply with the
accounting standards 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 31st March, 2015 taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rules 11 of the Companies (Audit and
Auditors) Rules, 2014, in our opinion and 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
financial position in its financial statements as referred to in Note
21 (a) and (b) to the financial statements.
ii) The Company did not have any long term contracts including
derivative contracts that require provision under any law or accounting
standards for which there were any material foreseeable losses.
iii) There were no amounts which are required to be transferred to the
Investor Education and Protection Fund by the Company during the year.
Annexure referred to in paragraph 1 under the heading Report on other
legal and regulatory requirements of our report of even date
i) In respect of its Fixed Assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets on the
basis of available information.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
ii) The Company does not have any inventory during the year under
audit. Therefore, the provisions of Clause (ii) of paragraph 3 of the
Order are not applicable to the Company.
iii) The Company has not granted any loans, secured or unsecured to
companies, firm or other parties covered in the register maintained
under Section 189 of the Act. Consequently, the requirement of Clause
(iii) (a) and Clause (iii) (b) of paragraph 3 of the Order not
applicable to the Company.
iv) 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 nature of its business for the
purchases of fixed assets and for the sale of services. During the
course of our audit, we have not observed any continuing failure to
correct major weaknesses in such internal control system.
v) According to the information and explanations given to us, the
Company has not accepted any deposits within the meaning of provisions
of section 73 to 76 or any other relevant provisions of the Act and
rules framed hereunder. Therefore, provisions of Clause (v) of
paragraph 3 of the Order are not applicable to the Company.
vi) To the best of our knowledge and as explained, the Central
Government has not prescribed the maintenance of cost records under sub
section (1) of Section 148 of the Act in respect of activities
undertaken by the Company.
vii) In respect of Statutory dues :
a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Employees' State Insurance, Income-Tax,
Sales- Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise,
Value Added Tax, Cess and any other statutory dues have been regularly
deposited with appropriate authorities. According to the information
and explanations given to us, no undisputed amounts payable in respect
of the aforesaid dues were outstanding as at 31st March, 2015 for a
period of more than six months from the date of becoming payable.
b) According to the information and explanations given to us, there are
no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of
Customs, Duty of Excise, Value added tax, Cess on account of any
dispute, which have not been deposited.
c) There were no amounts which are required to be transferred to the
Investor Education and Protection Fund by the Company during the year.
viii) The Company's accumulated losses at the end of the financial year
are more than fifty percent of its net worth. The Company has incurred
cash losses in the current and immediately preceding financial year.
ix) The Company has not borrowed any money by way of loan from
Financial Institutions, Banks and Debenture holders; hence there is no
question of repayments of dues or default on this account.
x) According to information and explanation given to us the Company has
not given guarantee for loans taken by others from Banks or Financial
Institutions during the year. Therefore, the provisions of clause (x)
of paragraph 3 of the Order are not applicable to the Company.
xi) The Company has not taken any term loan during the year. Therefore,
the provisions of clause (xi) of paragraph 3 of the Order are not
applicable to the Company.
xii) In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year.
For Chaturvedi & Shah
Chartered Accountants
Registration No : 101720W
Sd/-
Amit Chaturvedi
Place : Mumbai Partner
Date : 30th May, 2015 Membership No. : 103141
Mar 31, 2014
We have audited the accompanying financial statements of Eastcoast
Steel Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th September 2013
of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and fair presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgement, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act 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 31st March, 2014;
(ii) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditor''s Report) Order 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by sub-section (3) of section 227 of the Act, 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 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 comply with the Accounting Standards
notified under the Companies Act, 1956 read with the General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013;
e. On the basis of the written representations received from the
directors and taken on record by the Board of Directors, none of the
directors is disqualified as on 31st March, 2014, from being appointed
as a director in terms of clause (g) of sub-section (1) of section 274
of the Act.
Annexure referred to in paragraph 1 under the heading of Report on
other legal and regulatory requirements of our Report of even date Re:
Eastcoast Steel Limited ("the Company")
1. In respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of f ixed assets.
(b) Fixed assets have been physically verified by the management in a
phased periodical manner as per regular programme of verification,
which in our opinion is reasonable, having regard to the size of the
Company and nature of its assets. No material discrepancies were
noticed on such physical verification.
(c) There are no substantial disposals of fixed assets during the year.
2. In respect of its Inventory:
The Company does not hold any physical inventories. Thus, provision of
clause(ii) of paragraph 4 of the Order is not applicable to the
Company.
3. In respect of the loans. secured or unsecured, granted or taken by
the Company to / from companies , f irms or other parties covered in
the register maintained under section 301 of the Act:
(a) The Company has not given any loan during the year to companies,
firms or other parties covered in the Register maintained under Section
301 of the Companies Act, 1956. Consequently, the requirements of
Clauses (iii) (a) to (iii) (e) of paragraph 4 of the Order are not
applicable
(b) The Company has taken interest free unsecured loans from two
companies covered in the Register maintained under section 301 of the
Companies Act, 1956. In respect of the said loan, the maximum amount
outstanding at any time during the year is Rs. 29,816,393/- and the
year-end balance is Rs. 25,541,393/-.
(c) In our opinion and according to the information and explanation
given to us, terms and conditions of the loan taken by the Company are
not prima facie prejudicial to the interest of the Company.
(d) The principal amounts are payable over the period of three to five
years. In respect of the said loans, there are no overdue amounts.
4. The Company has not carried on any activity during the year. Hence,
in our opinion clause (iv) and (v) of the paragraph 4 of the Order is
not applicable to the Company.
5. In our opinion and according to the information and explanation
given to us the Company has not accepted any deposits from the public
within the meaning of Section 58A & 58AA of the Companies Act, 1956 and
the Companies (Acceptance of Deposit) Rules, 1975.
6. The Company does not have a formal internal audit system,
Management does not think necessary, establishing an internal audit
system in view of suspension of production. However, according to
information and explanation given to us, its internal control systems
provide reasonable internal checking of its financial transactions.
7. The Company has not carried on any manufacturing operation during
the year. Hence the question of cost record required to be maintained
under section 209 (1)
(d) of the Companies Act, 1956 does not arise.
8. In respect of statutory dues:
(a) According to the information and explanations given and records
produced and examined by us, the Company is regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, employees'' state
insurance, income-tax, professional tax, sales-tax, wealth-tax, service
tax, customs duty, cess and other statutory dues applicable to it.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, professional
tax, income-tax, wealth-tax, service tax, sales-tax, customs duty, cess
and other undisputed statutory dues were outstanding, as at 31st March,
2014 for a period of more than six months from the date they become
payable.
(b) According to the information and explanation given to us, there are
no dues of sales tax, income tax, wealth tax, service tax, custom duty,
excise duty and Cess which have not been deposited on account of any
dispute.
9. The Company''s accumulated losses at the end of the financial year
are more than fifty percent of its net worth. The Company has incurred
cash losses in the current and immediately preceding financial year.
10. The Company has not borrowed any money by way of loan from
Financial Institutions, Banks, Debenture holders; hence there is no
question of repayments of dues or default on this account.
11. According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
12. In our opinion, the Company is not a chit fund or a nidhi/ mutual
benefit fund/ society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
13. The Company is not dealing or trading in shares, securities,
debentures and other investments. Therefore, the provisions of clause
(xiv) of paragraph 4 of the Order are not applicable to the Company.
14. According to information and explanation given to us the Company
has not given any guarantee for loans taken by others from bank or
financial institutions. Therefore, the provisions of Clause (xv) of
paragraph 4 of the Order are not applicable to the Company.
15. The Company has not taken any term loan during the year. Therefore,
the provisions of clause (xvi) of paragraph 4 of the Order are not
applicable to the Company.
16. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
17. The Company has not made any preferential allotment of shares to
parties and companies covered under Register maintained under section
301 of the Act.
18. The Company did not have any outstanding debenture during the
year.
19. The Company has not raised any monies by way of public issue
during the year.
20. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no material fraud on or by the Company has been noticed or
reported during the year.
For Chaturvedi & Shah
Firm Registration No. 101720W
Chartered Accountants
Sd/-
Amit Chaturvedi
Place : Mumbai Partner
Date : 12th May, 2014 Membership No.: 103141
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Eastcoast
Steel Limited ("the Company"),which comprise the Balance Sheet as at
March 31,2013, and Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management''s responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and fair presentation of the financial statements
that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgement, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
- In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements give
the information required by the Act 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 March
31,2013; (ii) in the case of the Statement of Profit and Loss, of the
loss for the year ended on that date; and
(Mi) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditor''s Report) Order 2003 ("the
Order")issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by sub-section (3) of section 227 of the Act, 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 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 comply with the accounting standards
referred to in sub-section (3C) of section 211 of the Act; and
e. On the basis of the written representations received from the
directors and taken on record by the Board of Directors, none of the
directors is disqualified as on March 31, 2013, from being appointed as
a director in terms of clause (g) of sub-section (1) of section 274 of
the Act.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS OF OUR REPORT OF EVEN
DATE
Re : Eastcoast Steel Limited("the Company")
1. In respect Of Fixed Assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified by the management during
the year. No material discrepancies were noticed during such
verification.
(c) The Company has not disposed off significant amount of fixed assets
during the year and therefore do not affect the going concern status of
the Company.
2. In respect of Inventory :
The Company does not hold any physical inventories. Thus provision of
clause (ii) of paragraph 4 of the Order is not applicable to the
Company.
3. In respect of the loans, secured or unsecured, granted or taken by
company to/from Companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
(a) The Company has not given any loan during the year to companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. Consequently, the requirement of clause
(iii) (b) (c) and clause (iii) (d) of the paragraph ,4 of the Order are
not applicable.
(b) The Company has taken unsecured loan from a Company covered in the
register maintained under section 301 of the Companies Act, 1956. In
respect of the said loan, the maximum amount outstanding at any time
during the year is Rs. 2,55,41,393/- and the year-end balance is Rs.
2,25,41,393/-.
(c) In our opinion and according to information and explanation given
to us, the rate of interest and other terms and conditions of the loan
taken by the Company, are not prima facie prejudicial to the interest
of the Company.
(d) The principal amounts are payable over the period of three to five
years, where the interest is payable annually at the discretion of the
company, However company has able to obtain waiver of interest for
current and previous financial year.
4. The Company has not carried on any activities during the year.
Hence in our opinion clause (iv) and (v) of the paragraph 4 of the
Order are not applicable to the Company.
5. In our opinion and according to information and explanation given
to us, the Company has not accepted any deposits from the public within
the meaning of Section 58A & 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposit) Rules, 1975.
6. The Company does not have a formal internal audit system,
Management does not think necessary, establishing an internal audit
system in view of suspension of production. However, according to
information and explanation given to us, its internal control systems
provide reasonable internal checking of its financial transactions.
7. The Company has not carried on any manufacturing operation during
the year. Hence the question of cost record required to be maintained
under section 209 (1) (d) of Companies Act, 1956 does not arise.
8. In case of Statutory dues:
(a) According to the records of the Company, the Company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, employees'' state insurance, income-tax, sales
tax, customs duty, and other statutory dues applicable to it. According
to the information and explanations given to us, no undisputed amounts
payable in respect of the aforesaid dues were outstanding as at 31st
March, 2013 for a period o* more than six months from the date they
became payable.
(p) According to the information and explanations given to us, there
are no statutory dues outstanding on account of disputes.
9. The accumulated loss of the Company at close of the year is more
than fifty percent of its net worth. The Company has incurred cash
losses during the financial year covered by our audit and in the
immediately preceding financial year.
1Q). The Company has not borrowed any money by way of loan from
financial Institutions, bonks and debenture holders; hence there is no
question of repayments of dues or default ort this account. The
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
t2Â In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
T3. The Company is not dealing or trading in shares, securities,
debentures and other investments. Therefore, the provisions of clause
(xiv) of paragraph 4 of the Order are not applicable to the Company.
14. According to infoonation and explanation given to us the Company
has not given any guarantee for loans taken by others from bank or
financial institutions. Therefore, the provisions of clause (xv) ot
paragraph 4 of the Order are not applicable to the Company.
15. The Company has not taken any term loans during the year
Therefore, the provision of clause (xvi) of paragraph 4 of the order
are not applicable to the Company.
16. According to the information and explanation given to us and on an
overall examination of the Balance Sheet of the Company, the funds
raised on short-term basis have not been used for long-term investment.
17. The Company has not made any preferential allotment of shares to
any party listed in the register maintained under Section 301 of the
Companies Act, 1956.
1 8. The Company has not issued any secured debentures during the year
covered by our audit.
19. The Company has not raised any money by way of public issue during
the year.
20. According to information and explanation given to us, no fraud on
or by the Company has been noticed or reported during the year.
For Chaturvedi and Shah
Firm Registration No. 101720W
Chartered Accountants
Sd/-
Amit Chaturvedi
Place: Mumbal Partner
Date: 8thAugust2013 Membership No.103141
Mar 31, 2011
1. We have audited the attached Balance Sheet of EASTCOAST STEEL
LIMITED ("the Company") as at 31st March 2011, the Profit and Loss
Account and the Cash Flow Statement for the year ended on that date.
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 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 prepared are free of material misstatements. An
audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant
estimates made by 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 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act 1956, we enclose 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 above, we
report that:
(a) We have obtained all the information & explanations, which to the
best of our knowledge & belief were necessary for the purpose of our
audit;
(b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of the
books;
(c) The Balance Sheet, Profit & Loss Account and the Cash flow dealt
with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss account and Cash
flow dealt with by this report comply with the Accounting Standards
referred to in sub-section (3C) of Section 211 of the Companies Act,
1956;
(e) On the basis of written representation received from the directors
as on 31st March 2011, and taken on the record by the board of
directors ,we report that none of the directors are disqualified as at
31st March 2011 from being appointed as a director u/ s 274 (1) (g) of
the Companies Act 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said Accounts read together with the
significant accounting policies and notes thereof required by the
Companies Act, 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 31st March 2011; and
ii. In the case of Profit & Loss Account, of the Loss for the year
ended on that date.
iii. In the case of Cash flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
RE : EASTCOAST STEEL LIMITED
REFERRED IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE
1. In respect of Fixed Assets:
(a) The company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified by the management during
the year. No material discrepancies were noticed during such
verification.
(c) The Company has not disposed off significant amount of fixed assets
during the year and therefore do not affect the going concern status of
the company.
2. In respect of Inventory :
The Company does not hold any Physical Inventories. Thus provision of
clause 4(ii) of the Companies (Auditor's Report) Order, 2003 is not
applicable to the Company.
3. In Respect of the loans secured or unsecured, granted or taken by
company to / from Companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
(a) The company has not given any loan during the year to companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. Consequently, the requirement of clause
(iii)(b) (c)and clause (iii) (d) of the paragraph 4 of the order are
not applicable.
(b) The Company has taken unsecured loan from a Company covered in the
register maintained under section 301 of the Companies Act, 1956. In
respect of the said loan, the maximum amount outstanding at any time
during the year is Rs. 1,90,49,908/ - and the year-end balance is Rs.
1,90,49,908/-.
(c) In our opinion and according to information and explanation given
to us, the rate of interest and other terms and conditions of the loan
taken by the company, are not prima facie prejudicial to the interest
of the company.
(d) The principal amounts are payable on demand and there is no
repayment schedule. The interest is payable on demand.
(e) In respect of the said loan, the same are repayable on demand and
therefore the question of overdue amount does not arise.
4. The Company has not carried on any activities during the year.
Hence in our opinion clause (iv) and (v) of the Companies (Auditor
Report) Order, 2003 not applicable to the company.
5. In our opinion and according to information and explanation given
to us, the company has not accepted any deposits from the public within
the meaning of Section 58A & 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposit)Rules,1975.
6. The Company does not have a formal internal audit system,
commensurate with size of the Company and nature of its business,
management does not think necessary, establishing an internal audit
system in view of suspension of production. However, according to
information and explanation given to us, its internal control systems
provide reasonable internal checking of its financial transactions.
7. The company has not carried on any manufacturing operation during
the year. Hence the question of cost record required to be maintained
under section 209 (1) (d) of Companies Act, 1956 does not arise.
8. In case of Statutory dues:
(a) According to the records of the Company, the Company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, employees' state insurance, income-tax, sales
tax, customs duty and other statutory dues applicable to it. According
to the information and explanations given to us, no undisputed amounts
payable in respect of the aforesaid dues were outstanding as at 31st
March 2011 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, there
are no statutory dues outstanding on account of disputes.
9. The accumulated loss of the company at close of the year is more
than 50% of its net worth. The Company has incurred cash losses during
the financial year covered by our audit and in the immediately
preceding financial year.
10. The Company has not borrowed any money by way of loan from
financial Institutions, banks and debenture holders. Hence there is no
question of repayments of dues or default on this account.
11. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
12. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause (xiii) of
the Order are not applicable to the Company.
13. The Company is not dealing or trading in shares, securities,
debentures and other investments. Therefore, the provisions of clause
(xiv) of the Order are not applicable to the Company.
14. According to information and explanation given to us, the Company
has not given any guarantee for loans taken by others from bank or
financial institutions. Therefore, the provisions of clause (xv) of the
Order are not applicable to the Company.
15. The company has not taken any term loans during the year .Hence
clause (xvi) of the order are not applicable to the company.
16. According to the information and explanation given to us and on an
overall examination of the Balance Sheet of the Company, the funds
raised on short-term basis have not been used for long-term investment.
17. The Company has not made any preferential allotment of shares to
any party listed in the register maintained under Section 301 of the
Companies Act, 1956.
18. The Company has not issued any secured debentures during the year
covered by our audit.
19. The company has not raised any money by way of public issue during
the year.
20. According to information and explanation given to us ,no fraud on
or by the company has been noticed or reported during the year.
For Chaturvedi and Shah
Firm Registration No. 101720W
Chartered Accountants
Sd/-
Amit Chaturvedi
Partner
Membership No.103141
Place : Mumbai
Date : 12th August, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of EASTCOAST STEEL LIMITED
as at 31st March, 2010, the Profit and Loss Account and the Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the management of the
company. Our responsibility is to express an opinion on these financial
statements based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those statements require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditors Report) Order, 2003 issued
by the Company Law Board in terms of Section 227 (4A) of the Companies
Act, 1956, we enclose in the annexure a statement on the matters
specified in paragraphs 4 & 5 of the said order.
2. Further to our comments in the Annexure referred to in paragraph
1 above :-
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion, proper books of account as required by law have
been maintained by the Company so far as it appears from our
examination of such books.
c. The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts.
d. In our opinion, the Balance Sheet, the Profit & Loss A/c 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. On the basis of written representation received from the Directors
as on March 31,2010, and taken on record by the Board of Directors, we
report that none of the directors are disqualified as at March 31,2010
from being appointed as a director u/ s 274 (1) (g) of the Companies
Act, 1956.
f. In our opinion and to the best of our information and explanations
given to us, the said accounts read together with the notes thereon,
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 Balance Sheet of the state of affairs of the company
as at 31st March 2010 and
ii. in the case of Profit and Loss Account of the Loss for the year
ended as on that date; and
iii. in the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS REPORT
RE : EASTCOAST STEEL LIMITED. PONDICHERRY REFERRED TO IN PARAGRAPH (1)
OF OUR REPORT OF EVEN DATE
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets. All the
assets have been physically verified by the management during the year
which in our opinion is reasonable having regard to the size of the
Company and the nature of its assets. No serious discrepancies were
noticed on such verification. None of the Fixed Assets were disposed
off during the year and therefore do not affect the going concern
status of the company.
2. The company has no stock of raw materials or finished goods during
the year. Further it has not carried out any manufacturing activity nor
procured any materials during the year under review. Therefore, we have
no observation in respect of its inventory.
3. In our opinion, the terms and conditions on which loans have been
taken from the parties listed in the register maintained under Section
301 of the Companies Act, 1956, are prima facie not prejudicial to the
interests of the Company. The company has taken loan from one party and
the balance amount due as on the close of the year is Rs. 136.35 Lakhs.
The company has not advanced amounts to any party listed in the
register maintained under Section 301 of the Companies Act, 1956.
4. The company has not carried on any activities during the year.
Hence in our opinion clauses 4 (iv) and (v) regarding adequate internal
control system and particulars of contracts or arrangements are not
applicable to the company.
5. In our opinion, and according to the information and explanations
given to us, the company has not accepted any deposit within the
meaning of the provisions of Section 58A and 58AA of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975.
6. In our opinion the Companys internal audit system is commensurate
with the size and nature of its business.
7. The Company has not carried on any manufacturing operations during
the year. Hence the question of cost records required to be maintained
Under Section 209 (1) (d) of the Companies Act, 1956 does not arise.
8. (a) According to the information and explanations given to us,
Provident Fund dues and
Employees state Insurance dues have been regularly deposited during the
year with the appropriate authorities.
(b) According to the information and explanations given to us, there
are no arrears of undisputed statutory dues including Income Tax, Sales
tax, Customs Duty, Provident Fund and Employees State Insurance
outstanding as on 31st March, 2010 for a period of more than six months
from the date they became payable.
(c) Dues not deposited on account of disputes - Nil
9. On the basis of the audited financial statements, the accumulated
loss of the company at the close of the year is more than 50% of its
net worth. Further, it has incurred cash loss during the year (previous
year cash loss Rs. 62.58 Lacs).
10. Since the company has not borrowed any money by way of secured
loans, there are no repayment of dues or default on this account.
11. The company has not issued any debentures nor does it have any
secured loans.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The company is not a Chit fund, Nidhi, Mutual benefit fund or a
Society. Accordingly, clause 4 (xiii) of the Order is not applicable.
14. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4 (xiv) of the Order is not
applicable.
15. On the basis of information and explanations given to us, the
company has not given guarantee to any Bank or other financial
institutions on behalf of other parties.
16. The company has not taken any term loans during the year. Hence
clause 4 (xvi) is not applicable to the company.
17. In our opinion and according to the information and explanations
given to us, and on an overall examination of the financial statements,
the funds raised on short term basis have not been used for long term
investment.
18. The company has not made any preferential allotment of shares to
any party listed in the register maintained under Section 301 of the
Companies Act, 1956.
19. The company has not issued debentures. Hence, clause 4 (xix) of
the Order is not applicable to the company.
20. The company has not raised any money by way of public issues
during the year.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
For KRISHNAN & GIRI
Chartered Accountants
Firm Registration No: 1512S
R. SAPTAGIRI
Place : Chennai Partner
Date : 29,th July 2010 Membership No: 38623