TO THE MEMBERS OF COASTAL ROADWAYS LIMITED Report on the Audit of the StandaloneFinancial Statements
We have audited the standalone financial statements of Coastal Roadways Limited"the Company" which comprise the Balance Sheet as at 31st March 2020 and theStatement of Profit and Loss including Other Comprehensive Income and Statement of Changesin Equity and the Statement of Cash Flows for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information
hereinafter referred to as "the standalone financial statements" .
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 the Act in the manner so required and give a true and fair viewin conformity with the accounting principles generally accepted in India including IndianAccounting Standards Ind AS prescribed under Section 133 of the Act of the state ofaffairs financial position of the Company as at 31st March 2020 and its profitfinancial performance including other comprehensive income changes in equity and its cashflows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing SAs specified undersection 143 10 of the Companies Act 2013. Our responsibilities under those Standards arefurther described in the Auditor s Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordance withthe Code of Ethics issued by the Institute of Chartered Accountants of India ICAI togetherwith the ethical requirements that are relevant to our audit of the financial statementsunder the provisions of the Companies Act 2013 and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
KEY AUDIT MATTERS
Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters.
|Sl 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 Standalone Financial Statements and Our Report thereon
The Company s management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company sannual report but does not include the standalone financial statements and our auditorsreport thereon. Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon. Inconnection with our audit of the standalone financial statements our responsibility is toread the other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.
Management s Responsibility for the Standalone Financial Statements
The Company s Board of Directors is responsible for the matters stated in section 134 5of the Companies Act 2013 "the Act" with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Ind AS specified under section 133 of the Act. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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. That Board of Directors is also responsible for overseeing thecompany s financial reporting process.
Auditor s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor s report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these financial statements. As part of an audit in accordance withSAs we exercise professional judgement and maintain professional skepticism throughoutthe audit. We also
? Identify and assess the risks of material misstatement of the standalone 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 control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143 3 i of theAct we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.
? Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
? Conclude on the appropriateness of management s use of the going concern basis ofaccounting 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor s report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
? Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation. Materiality is the magnitude of the misstatement in the standalone financialstatement that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the standalone financial statement may beinfluenced. We consider quantitative materiality and qualitative factors in i planning thescope of our audit work and evaluating the results of our work; and ii to evaluate theeffects of any identified misstatements in the standalone financial statement. Wecommunicate with those charged with governance regarding among other matters the plannedscope and timing of the audit and significant audit findings including any significantdeficiencies in internal control that we identify during our audit. We also provide thosecharged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence and to communicate with them all relationships andother matters that may reasonably be thought to bear on our independence and whereapplicable related safeguards. From the matters communicated with those charged withgovernance we determine those matters that were of most significance in the audit of thefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor s report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies Auditor s Report Order 2016 "the Order"issued by the Central Government of India in terms of subRS.section 11 of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in the paragraph3 and 4 of the order.
2. As required by Section 143 3 of the Act we report that:
a We have sought and obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purposes of our audit. b In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books; c The Balance Sheet the Statement of Profitand Loss including other comprehensive income the Statement of Changes in Equity andthe Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount;
d In our opinion the aforesaid standalone financial statements comply with Ind ASspecified under Section 133 of the Act. e On the basis of the written representationsreceived from the directors as on 31st March 2020 taken on record by the Board ofDirectors none of the directors is disqualified as on 31st March 2020 from beingappointed as a director in terms of Section 164 2 of the Act; f With respect to theadequacy of the internal financial controls over financial reporting of the Company as on31 March 2020 in conjunction with our audit of the standalone financial statement of thecompany for the year ended on that date and our report as per "Annexure B"expressed an unmodified opinion. g With respect to the other matters to be included in theAuditor s Report in accordance with Rule 11 of the Companies Audit and Auditors Rules2014 as amended in our opinion and to the best of our information and according to theexplanations given to us: i The Company does not have any pending litigation which wouldimpact its financial position. ii The Company did not have any long term contractsincluding derivative contracts for which there were any material foreseeable losses. iiiThere has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.
3. As required by section 197 16 of the Act we report that Company has paidremuneration to its directors during the year in accordance with the provisions of andlimits laid down under section 197 read with Schedule V to the Act.
For PATANJALI CO.
Chartered Accountants Firm Reg. No. 308163E
Membership No. 061553 UDIN:20061553AAAABM2858 Place: Kolkata Date: 29th dayof June 2020
ANNEXURE A TO THE INDEPENDENT AUDITOR S REPORT OF EVEN DATE TO THE MEMBERS OF COASTALROADWAYS LIMITED ON THE STANDLONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31STMARCH2020
Annexure [ A
Based on the audit procedure performed for the purpose of reporting a true and fairview on the standalone financial statements of the Company and taking into considerationthe information and explanation given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that: 1. In respect of its fixed assets: a The company has maintainedproper records showing full particulars including quantitative details and situation ofits fixed assets on the basis of available information. b As explained to us all thefixed assets have been physically verified by the management in a phased periodicalmanner which in our opinion is reasonable having regard to the size of the Company andnature of its assets. No material discrepancies were noticed on such verification. cAccording to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties areheld in name of company.
2. The Company does not have any stock of inventory during the audit hence theprovisions of clause 3 ii of the Order are not applicable to the Company.
3. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under Section 189 of theAct. Accordingly the provisions of clause 3 iii a b and c of the Order are notapplicable to the Company.
4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Act with respectto the investments made and loans guarantees and securities granted as applicable.
5. The Company has not accepted any deposits from the public to which directives issuedby Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed there under apply.
6. To the best of our knowledge and according to the information given to us theCentral Government has not prescribed the maintenance of Cost Records under subRS.section1 of section 148 of the Companies Act 2013 for any of the services provided by theCompany.
7. According to the information and explanations given to us in respect of statutorydues: a The undisputed statutory dues including Provident Fund Employees State InsuranceIncomeRS.tax SalesRS.tax Wealth Tax Service Tax Custom Duty Excise Duty Goods andService Tax Value Added Tax Cess and to the extent applicable and any other statutorydues to the appropriate authorities have generally been regularly deposited with theappropriate authorities. There is no undisputed statutory dues arrear as at March 312020 for a period not exceeding six months from the date they became payable. b Accordingto the information and explanations given to us there is no disputed statutory dues as atMarch 31 2020.
8. The company has not defaulted in repayment of loans or borrowings to any financialinstitution and banks. The Company has not taken any loans from government. The Companyhas not issued any debenture.
9. Based on our audit procedures and on the information and explanations given to uswe are of the opinion that the Company has not raise any money by way of initial publicoffer or further public Offer including debt instrument and term loan during the year.Accordingly the provisions of clause 3 ix of the Order are not applicable to the Company.
10. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit. 11. According to the information and explanations given to us andbased on our examination of the records of the company the company has provided formanagerial remuneration in accordance with the requisite approvals mandated by provisionof section 197 read with schedule V to the Act. 12. According to the information andexplanations given to us the company is not a Nidhi company. Accordingly the provisionsof clause 3 xii of the Order are not applicable to the Company. 13. According to theinformation and explanations given to us and based on our examination of the records ofthe company transactions with the related parties are in compliance with section 177 188of the Act where applicable and details of such transaction have been disclosed infinancial statements as required by the applicable Accounting Standards. 14. According tothe information and explanations given to us and based on our examination of the recordsof the company the company has not made any preferential allotment or private placementof shares or fully or partly convertible debenture during the year. 15. According to theinformation and explanations given to us and based on our examination of the records ofthe company the company has not entered into non cash transaction with Director orpersons connected with him. Accordingly the provisions of clause 3 xv of the Order arenot applicable to the Company. 16. The company is not required to registered under section45RS.IA of the Reserve Bank of India Act 1934.
For PATANJALI CO.
Chartered Accountants Firm Reg. No. 308163E
Membership No. 061553
Date: 29th day of June 2020
ANNEXURE B TO THE INDEPENDENT AUDITOR S REPORT OF EVEN DATE TO THE MEMBERS OF COASTALROADWAYS LIMITED ON THE STANDLONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH2020
Annexure [ B
Independent Auditor s Report on the Internal Financial Controls under Clause i ofsub[section 3 of section 143 of the Companies Act 2013 the "Act"
In conjunction with our audit of the standalone financial statements of CoastalRoadways Limited the "Company" as at and for the year ended 31 March 2020we have audited the internal financial controls over financial reporting of the Company asof 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 of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company s policies thesafeguarding 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 based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reportingthe "Guidance Note" and the Standards on Auditing issued by ICAI and deemed tobe prescribed under section 143 10 of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects. Our audit involves performingprocedures to obtain audit evidence about the adequacy of the internal financial controlssystem over financial reporting and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on the auditors judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe Company s internal financial controls system over 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
2 provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and
3 provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the company s assets that could have a material effecton 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theInstitute of Chartered Accountants of India.
For PATANJALI CO.
Chartered Accountants Firm Reg. No. 308163E
Membership No. 061553
Date: 29th day of June 2020