To The Members of Coastal Roadways Limited
Report on the Audit of the Financial Statements
We have audited the financial statements of Coastal Roadways Limited ("theCompany") which comprise the Balance Sheet as at 31st March 2022 the Statement ofProfit and Loss (including Other Comprehensive Income) the Statement of Changes in Equityand the Statement of Cash Flows for the year then ended and a summary of significantaccounting policies and other explanatory information (hereinafter referred to as the"financial statements").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ('the Act') in the manner so required and give a true and fair view inconformity with the Indian Accounting Standards ('Ind AS') prescribed under Section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended('Ind AS') and other accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2022 and its profit total comprehensive incomethe changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence obtained by us issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.
Key Audit Matters
Key audit matter is the matter that in our professional judgment was of mostsignificance in our audit of the financial statements of the current period. This matterwas addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on this matter. Wehave determined the matter described below to be the key audit matter to be communicatedin our report.
|SI. No. Key Audit Matters ||How our audit addressed the Key Audit Matters |
|Estimates for provision against pending insurance claims : || We obtained an understanding of the Company's operational process in respect of the incidents with in transit vehicles and Company's contractual obligations arising therefrom. |
|The company's trade receivables includes amount kept on hold by customers on account of insurance claims against transit losses to cargo to be released by them subsequent to realisation of their claims from their underwriters and as per the management's judgement no provision has been made against the same. || |
| || We assessed the appropriateness of the management contentions with the customer contracts to ensure that the consignments were insured and such amounts are legal rights of the company. |
| || We performed substantive testing of each transaction by verifying the entire documents trail police and insurance survey reports in respect of such incidents and compliances to be done by the company under contractual obligations to be entitled to refund of the amount. |
| || We reviewed the past practices and transactions of last 3 years to ascertain the basis of judgement used. |
Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors are responsible for the other information. The otherinformation comprises the information included in the Director's Report ManagementDiscussion and Analysis Corporate Governance Report and Business Responsibility Report inthe Annual Report but does not include the financial statements and our auditor's reportsthereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.
Management's Responsibility for the Financial Statements
The Company's Board of Directors are responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance including othercomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
Those Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and vents in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial informationof the Company to express an opinion on the financial statements.
Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effects of anyidentified misstatements in the financial statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act based on our audit we report that:
(a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books.
(c) The Balance Sheet the Statement of Profit and Loss including other comprehensiveincome. Statement of Changes in Equity and the Statement of Cash Flows dealt with by thisReport are in agreement with the books of account.
(d) In our opinion the aforesaid financial statements comply with Ind AS specifiedunder Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors aredisqualified as on 31st March 2022 from being appointed as a director in terms of Section164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of Section 197(16) of the Act as amended. In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of Section 197 of the Act.
(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:
(i) The Company does not have any pending litigation which would impact its financialposition in its financial statements;
(ii) The Company does not have any long term contracts including derivative contractsfor which there were any material foreseeable losses;
(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
(iv)(a) The Management has represented that to the best of it's knowledge and beliefas disclosed in Note 43(vi) to the financial statements no funds have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person(s) or entity(ies) includingforeign entities (" Intermediaries") with the understanding whether recordedin writing or otherwise that the intermediary shall directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Company (" Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries.
(b) The Management has represented that to the best of it(s) knowledge and belief asdisclosed in Note 43(vii) to the financial statements no funds have been received by theCompany from any person(s) or entity(ies) including foreign entities ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall directly or indirectly lend or invest in any other persons or entitiesidentified in any manner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theultimate beneficiaries.
(c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representation under sub-clause (i) and (ii) of the Rule 11(e) as provided under (a)and (b) above contained any material misstatement.
2. As required by the Companies (Auditor's Report) Order 2020 ('the Order) issued bythe Central Government in terms of Section 143(11) of the Act we give in "AnnexureB" a statement on the matters specified in paragraphs 3 and 4 of the Order.
For PATANJALI & CO.
Firm Reg. No. 308163E
Membership No. 061553
Date: 25th day of May 2022
TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 1(f) under 'Report on Other Legal and RegulatoryRequirements') section of our report to the members of Coastal Roadways Limited of evendate)
Report on the Internal Financial Controls over Financial Reporting under clause (I) ofsubsection 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of CoastalRoadways Limited ("the Company") as of 31st March 2022 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India('ICAI'). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note issued by the ICAI and the Standards onAuditing prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 March 2022 based on the criteria forinternal control over financial reporting established by the Company considering theessential components of internal control stated in the Guidance Note issued by theInstitute of Chartered Accountants of India.
For PATANJALI & CO.
Firm Reg. No. 308163E
Membership No. 061553
Date: 25th day of May 2022
TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements')section of our report to the members of Coastal Roadways Limited of even date)
In terms of the information and explanations sought by us and given by the Company andthe books of account and records examined by us in the normal course of audit and to thebest of our knowledge and belief we state that:
i. (a)A. The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipmentcapital-work-in-progress and right-of-use assets.
B. The Company has maintained proper records showing full particulars of intangibleassets.
b) The Company has a programme of verification of property plant and equipmentcapital work-inprogress and right-of-use assets so to cover all the items in a phasedmanner on annual basis which in our opinion is reasonable having regard to the size ofthe Company and the nature of its assets. Pursuant to the programme certain propertyplant and equipment were due for verification during the year and were physically verifiedby the Management during the year. According to the information and explanations given tous no material discrepancies were noticed on such verification.
c) Based on our examination of the registered sale deed/transfer deed/conveyance deedprovided to us we report that the title deeds of all the immovable properties (otherthan immovable properties where the Company is the lessee and the lease agreements areduly executed in favour of the Company) disclosed in the financial statements included in(property plant and equipment and capital work-in-progress) are held in the name of theCompany as at the balance sheet date. No property has been pledge as security forborrowings based on the examination of relevant documents by us.
d) The Company has not revalued any of its property plant and equipment (includedRight of Use Assets) and intangible assets during the year.
e) No proceedings have been initiated during the year or are pending against theCompany as at March 31 2022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (as amended in 2016) and Rules made thereunder.
H. a) The Company does not have any stock of inventory during the year under audit andhence reporting under clause (ii) (a) of the Order is not applicable.
b) The Company has not been sanctioned any working capital limits in excess of Rs. 5crores in aggregate at any points of time during the year and hence reporting underclause (ii)(b) of the Order is not applicable.
iii. a) The Company has not made any investments provided/stood guarantee and grantedloans secured or unsecured in respect of subsidiary and related parties.
The Company has not provided any advances in the nature of loans or security to anyother entity during the year.
b) The Company has not made any investments guarantees and loans during the year andhence reporting under clause (ill) (b) of the Order is not applicable.
c) The Company has no subsidiaries and hence reporting under clause (ill) (c) of theOrder is not applicable.
d) According to information and explanations given to us and based on the auditprocedures performed in respect of loans granted by the Company there is no overdueamount remaining outstanding as at the Balance Sheet date.
e) No loan to related party was given during the year or earlier years has been renewedor extended.
f) The Company has no subsidiaries and hence reporting under clause (ill) (f) of theOrder is not applicable.
iv. No Loans has been granted or outstanding in our opinion and according to theinformation and explanation given to us the Company has complied with the provisions ofsection 185 and 186 of the Act in respect of grant of loans making investment andproviding guarantees and securities during the year as applicable and hence reportingunder clause (iv) of the Order is not applicable
V. The Company has not accepted any deposit or amounts which are deemed to be deposits.Hence reporting under clause (v) of the Order is not applicable.
vi. The maintenance of cost records has not been specified by the Central Governmentunder section 148(1) of the Companies Act 2013. Hence reporting under clause (vi) of theOrder is not applicable.
vii.a) In respect of statutory dues: Undisputed statutory dues including Goods andService tax. Provident Fund Income-tax Sales tax duty of Custom duty of Excise ValueAdded Tax cess and other material statutory dues applicable to the Company have generallybeen regularly deposited by it with the appropriate authorities.
There were no undisputed amounts payable in respect of Goods and Service tax. ProvidentFund Income-tax Sales tax duty of Custom duty of Excise Value Added Tax cess andother material statutory dues in arrears as at March 312022 for a period of more than sixmonths from the date they became payable.
b) There are no disputed statutory dues and hence reporting under clause (vii) (b) ofthe Order is not applicable.
viii. There were no transactions relating to previously unrecorded income that weresurrendered or disclosed as income in the tax assessments under the Income Tax Act 1961(43 of 1961) during the year.
ix. a) In our opinion the Company has not defaulted in the repayment of loans or otherborrowings or in the payment of interest thereon to any lender during the year.
b) The Company has not been declared wilful defaulter by any bank or financialinstitution or government authority.
c) To the best of our knowledge and belief in our opinion term loans availed by theCompany were applied by the Company during the year for the purposes for which the loanswere obtained.
d) On an overall examination of the financial statements of the Company funds raisedon short-term basis have prima facie not been used during the year for long termpurposes by the Company.
e) On an overall examination of the financial statements of the Company the Companyhas not taken funds from any entity or person on account of or to meet the obligations ofits subsidiaries an associate or a joint venture.
f) The Company has not raised loans during the year on the pledge of securities held inits subsidiaries or joint ventures or associate companies.
X. a) The Company has not issued any of its securities (including debt instruments)during the year and hence reporting under clause (x)(a) of the Order is not applicable.
b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause (x)(b) of the Order is not applicable to the Company.
xi. a) To the best of our knowledge no fraud by the Company and no material fraud onthe Company has been noticed or reported during the year.
b) To the best of our knowledge no report under sub-section (12) of Section 143 of theCompanies Act has been filed in Form ADT-4 as prescribed under rule 13 of the Companies(Audit and Auditors) Rules 2014 with the Central Government during the year and upto thedate of this report.
c) No whistle blower complaints have been received by the Company. Hence reportingunder clause xi(c) of the Order is not applicable.
xii. The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.
xiii. In our opinion the Company is in compliance with Section 177 and 188 of theCompanies Act where applicable for all transactions with the related parties and thedetails of related party transactions have been disclosed in the financial statementsetc. as required by the applicable accounting standards.
xiv. a) In our opinion the Company has an adequate internal audit system commensuratewith the size and the nature of its business.
b) We have considered the internal audit reports issued to the Company during the yearand covering the period up to March 2022.
XV. In our opinion during the year the Company has not entered into any non-cashtransactions with any of its directors or directors of its subsidiaries an associatecompany and a joint venture or person connected with such directors and hence provisionsof section 192 of the Companies Act 2013 are not applicable to the Company.
xvi. a) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Hence reporting under clause (xvi)(a) (b) and (c) of the Orderis not applicable.
b) The Group has no CIC as part of the group. Hence reporting under clause (xvi) (d)of the Order is not applicable.
xvii. The Company has not incurred cash losses during the financial year covered by ouraudit and the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors of the Company duringthe year.
xix. On the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has to ourattention which causes us to believe that any material uncertainty exists as on the dateof the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this not an assurance as to thefuture viability of the Company. We further state that our reporting is based on the factsup to the date of the audit report and we neither give ant guarantee nor any assurancethat all liabilities falling due within a period of one year from the balance sheet datewill get discharged by the Company as and when they fall due.
XX. a) The Company does not fall within the mandatory ambit of Corporate SocialResponsibility (CSR) Accordingly reporting under clause (xx)(a) and (xx)(b) of the Orderis not applicable for the year.
For PATANJALI & CO.
Firm Reg. No. 308163E
Membership No. 061553
Date: 25th day of May 2022.