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.
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
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit 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
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
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
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
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS OF OUR REPORT OF EVEN
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
(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
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
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
(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.
(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
(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.
t2„ 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
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
Place: Mumbal Partner
Date: 8thAugust2013 Membership No.103141