1.  We have audited the attached Balance Sheet of Coastal Roadways
 Limited, as at 31st March, 2011 and the related Profit & Loss Account
 and the Cash Flow Statement of the Company for the year ended on that
 date, 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 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 misstatement. An audit
 includes examining, on 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 the management, as well as evaluating the overall financial
 statement presentation. We believe that our audit provides a reasonable
 basis for bur opinion.
 
 3.  As required by the Companies (Auditor''s Report) Order, 2003, (as
 amended) issued by the Central Government of India in terms of Section
 227(4A) of the Companies Act, 1956 and on the basis of such checks as
 we have considered appropriate and according to the information and
 expJanations given to us, we set out 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 state that:
 
 a) We have obtained all the information and explanations which to
 thebest 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
 kept by the Company so far as appears from our examination of such
 books.
 
 c) The Balance Sheet, the Profit & Loss Account and the Cash Flow
 Statement referred to in this report are in agreement with the books of
 account.
 
 d) In our opinion, the Balance Sheet, the Profit and Loss Account and
 the Cash Flow Statement dealt with by this report have been prepared in
 compliance with the applicable accounting standards referred to in
 Section 211 (3C) of the Act subject to note 14B(2), for non compliance
 of Accounting Standard 15 (Revised) for non provision of liability for
 gratuity.
 
 e) On the basis of written representations received from the Directors,
 as on 31st March, 2011 and taken on record by the Board of Directors of
 the Company, none of the Directors is disqualified as on 31st March,
 2011 from being appointed as a Director in terms of clause(g) or
 sub-section (1) of Section 274 of the Act.
 
 5. In our opinion and to the best of our information and according to
 the explanations given to us, the said accounts read in conjunction
 with Schedules 1 to 14 and subjed to note (2) regarding non provisions
 of gratuity liabilities for gf.33,60,954/-, and note (5) for
 non-provision for doubtful debts for? 3,30,118/- of schedule 14B, give
 a true and fair view:
 
 i) In the case of the Balance Sheet, of the State of affairs of the
 Company as al 31st March, 2011
 
 ii) In the case of the Profit & Loss Account, of the Profit of the
 Company for the year ended on that date.
 
 iii) In the case of the Cash Flow Statement, of the cash flows, for the
 year ended on that date.
 
 
 ANNEXURE TO THE AUDITORS'' REPORT
 
 1.  a) The Company has maintained proper records showing full
 particulars including quantitative details and situation of the Fixed
 Assets.
 
 b) As explained to us, the management has physically verified most of
 the fixed assets during the year, other than patterns lying with third
 parties for which confirmations have been obtained from parties in most
 of the cases, and no material discrepancies were noticed on such
 verification. In our opinion, the frequency of physical verification of
 fixed assets is reasonable having regard to the size of the Company and
 the nature of the assets.
 
 c) The fixed assets disposed off during the period are not substantial
 and hence it has not affected the going concern assumption.
 
 2.
 
 a) The stores and operating supplies have been physically verified
 during the period by the management. There is no stock with third
 parties. In our opinion, the frequency of verification is reasonable.
 
 b) In our opinion, the procedures of physical verification of stocks
 and operating supplies followed by the management are reasonable and
 adequate in relation to the size of the Company and the natrue of its
 business.
 
 c) The Company has maintained proper records of stroes and operating
 supplies. The discrepancies noticed on verification between the
 physical stocks and book stocks were not material having regard to the
 size of operations of the Company and have been properly dealt with in
 the books of accounts.
 
 3.  The Company has not accepted/granted any loans during the year
 from/to the parties covered in the register maintained under Section
 301 of the Companies Act, 1956.
 
 4.  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 natrue of its business with regard
 to purchase of inventory and fixed assets and for the sale of goods.
 During the course of our audit, no major weakness was noticed in the
 internal control system.
 
 5.
 
 a) According to the information and explanation given to us, contracts
 or arrangements that need to be entered into the register maintained in
 pursuance of Section 301 of the Companies Act, 1956 have been so
 entered.
 
 b) Sub-clause (b) is not applicable as there are no such transactions
 exceeding the value of five lakh rupees in respect of any part.
 
 6.  The Company has not accepted any deposits from the public during
 the year.
 
 7.  In our opinion, the Company has an internal audit system
 commensurate with the size and nature of its business.
 
 8.  To the best of our knowledge and according to the information given
 to us, the Central Government has not prescribed the maintenance of
 cost records under Section 209(1 )(d) of the Companies Act, 1956 for
 any of the services provided by the Company.
 
 9.
 
 a) According to the information and explanations given to us and the
 records examined by us, the Company is regular in depositing undisputed
 statutory 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
 statutory dues with the appropriate authorities and there are no
 undisputed statutory dues outstanding as at 31st march, 2011, for a
 period of more than six months from the date they became payable.
 
 10.  The Company has not incurred cash loss in the current year and in
 the immediately preceding financial year and there are no accumulated
 losses in the Balance Sheet as on 31st March, 2011.
 
 11.  Based on the information and explanations given to us, the Company
 has not defaulted during the year in repayment of dues to any financial
 institutions or banks.
 
 12.  Based on our examination of the records and the information and
 explanations given to us, the Company has not granted any loans and
 advances on the basis of security by way of pledge of shares,
 debentures and other securities.
 
 13.  As the Company is not a chit fund, nidhi, mutual benefit fund or
 society the provisions of clause 4 (xiii) of the Companies (Auditor''s
 Report) Order, 2003 are not applicable to the Company.
 
 14.  As the Company is not dealing or trading in shares, securities,
 debentures and other investments, the provisions of cluse 4 (xiv) of
 the Companies (Auditor''s Report) Order, 2003 are not applicable to the
 Company.
 
 15.  According to the information and explanations received, the
 Company has not given any guarantees for loans taken by others from
 bank or financial institutions.
 
 16.  According to the informaton and explanations received, the term
 loans were applied for the purpose for which the loans were obtained.
 
 17.  Based on our examination of the records and according to the
 information and explanations received, the Company has not applied
 short-term borrowings for longterm use.  ''
 
 18.  The Company has not made any preferential allotment of shares
 during the year.
 
 19.  The Company has not issued any debentures during the year.
 
 20.  The Company has not raised any money by way of public issue during
 the year.
 
 21.  As per the information and explanations given to us, no fraud on
 or by the Company has oeen noticed during the year.
 
 
 Dr.D.R.AGARWAL
 Partner
 Membership No.51484
 For and behalf of
 AGARWAL MAHESHWARI & CO.
 Chartered Accountants
 FRN No.: 314030E
 Kolkata 27th Day of May 2011