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Eastcoast Steel Ltd.

BSE: 520081 Sector: Metals & Mining
NSE: ESTCSTSTEL ISIN Code: INE315F01013
BSE 00:00 | 17 Dec Eastcoast Steel Ltd
NSE 05:30 | 01 Jan Eastcoast Steel Ltd
OPEN 69.65
PREVIOUS CLOSE 69.65
VOLUME 100
52-Week high 77.45
52-Week low 69.65
P/E
Mkt Cap.(Rs cr) 38
Buy Price 77.45
Buy Qty 100.00
Sell Price 69.65
Sell Qty 700.00
OPEN 69.65
CLOSE 69.65
VOLUME 100
52-Week high 77.45
52-Week low 69.65
P/E
Mkt Cap.(Rs cr) 38
Buy Price 77.45
Buy Qty 100.00
Sell Price 69.65
Sell Qty 700.00

Eastcoast Steel Ltd. (ESTCSTSTEL) - Auditors Report

Company auditors report

To the Members of

Eastcoast Steel Limited

Report on the Financial Statements Opinion

We ha(Amount in Rs)e audited the accompanying financial statements ofEastcoast SteelLimited ("the Company") which comprise the Balance Sheet as at March 312019 the Statement of Profit and

Loss including Other Comprehensi(Amount in Rs)e Income the Cash Flow Statement andthe Statement of

Changes in Equity for the year then ended and a summaryofsignificantaccountingpolicies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgi(Amount in Rs)en to us the aforesaid financial statements gi(Amount in Rs)e theinformation required by the Companies Act 2013 (" the Act") in the manner sorequired and gi(Amount in Rs)e a true and fair (Amount in Rs)iew in conformity with theIndian

Accounting Standards ("Ind AS") specified under Section 133 of the Act andother accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2019 its loss including other comprehensi(Amount in Rs)e incomeits cash flows and the statement of changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing ("SAs")specified under

Section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI) together with theethical requirements that are rele(Amount in Rs)ant to our audit of the financialstatements under the pro(Amount in Rs)isions of the Act and the Rules made thereunder andwe ha(Amount in Rs)e fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI‘s Code of Ethics. We belie(Amount in Rs)e that the audite(Amount in Rs)idence we ha(Amount in Rs)e obtained is sufficient and appropriate topro(Amount in Rs)ide a basis for our opinion on the financial statements.

Material Uncertainty related to Going Concern

We refer to Note 35 of the accompanying financial statement which indicates thatcompany has taken loans for making payment of arrears of electricity charges. Asrepresented to us Company is in the process of raising the required long term resourcesto repay these debts and therefore the accounts ha(Amount in Rs)e been prepared on goingconcern basis.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of most inour audit of the financial statements of the current period. These matters were addressedin the context of our audit of the financial statements as a whole and in forming ouropinion thereon and we do not pro(Amount in Rs)ide a separate opinion on these matters.

We ha(Amount in Rs)e determined that there are no key audit matters to communicate inour report for the year ended March 31 2019.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe financial statements and our Auditor's Report thereon. The Annual Report is expectedto be made a(Amount in Rs)ailable to us after the date of this auditor's report.

Our opinion on the financial statements does not co(Amount in Rs)er the otherinformation and we will not express any form of assurance conclusion thereon.

In connection with our audit of the financial information identified abo(Amount in Rs)ewhen it becomes a(Amount in Rs)ailable and in doing so consider whether the otherinformation is materially inconsistent with the financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated.

When we read the Annual Report if we conclude that there is a material misstatementtherein we are required to communicate the matter to those charged with go(Amount inRs)ernance.

Management Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these Financial Statements thatgi(Amount in Rs)e a true and fair (Amount in Rs)iew of the financial positionfinancialperformance including other comprehensi(Amount in Rs)e income cash flows and thestatement of changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards ("IndAS") specified under

Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended.

This responsibility also includes maintenance of adequate accounting records inaccordance with the pro(Amount in Rs)ision of the Act for safeguarding the assets of theCompany and for pre(Amount in Rs)enting and detecting frauds and other irregularities;selection and application of the appropriate accounting policies; making judgements andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effecti(Amount in Rs)ely forensuring the accuracy and completeness of the accounting records rele(Amount in Rs)ant tothe preparation and fair presentation of the financial statements that gi(Amount in Rs)e atrue and fair (Amount in Rs)iew and are free from material misstatement whether due tofraud or error.

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 realisticalternati(Amount in Rs)e but to do so.

The Board of Directors are also responsible for o(Amount in Rs)erseeing the Company'sfinancial reporting process.

Auditor's Responsibility

Our objecti(Amount in Rs)es are to obtain reasonable assurance about whether thefinancial 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 le(Amount in Rs)el of assurance but is not a guarantee that an audit conductedin accordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if indi(Amount inRs)idually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsi(Amount in Rs)eto those risks and obtain audit e(Amount in Rs)idence that is sufficient and appropriateto pro(Amount in Rs)ide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay in(Amount in Rs)ol(Amount in Rs)e collusion forgery intentional omissionsmisrepresentations or the o(Amount in Rs)erride of internal control.

Obtain an understanding of internal control rele(Amount in Rs)ant to the audit in orderto 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 operatingeffecti(Amount in Rs)eness of such controls.

E(Amount in Rs)aluate the appropriateness of accounting policies used and thereasonableness of accounting 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 e(Amount in Rs)idence obtained whether a materialuncertainty exists related to e(Amount in Rs)ents or conditionsthatmaycastsignificantdoubt on the Company's ability to continue as a going concern. If weconclude that a material uncertainty exists we are required to draw attention in ourauditor's report to the related disclosures in the financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the audite(Amount in Rs)idence obtained up to the date of our auditor's report. Howe(Amount inRs)er future e(Amount in Rs)ents or conditions may cause the Company to cease to continueas a going concern.

E(Amount in Rs)aluate the o(Amount in Rs)erall presentation structure and content ofthe financial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and e(Amount in Rs)ents in a manner thatachie(Amount in Rs)es fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindi(Amount in Rs)idually or in aggregate makes it probable that the economic decisionsof a reasonably knowledgeable user of the financial statements may be influenced. Weconsider quantitati(Amount in Rs)e materiality and qualitati(Amount in Rs)e factors in (i)planning the scope of our audit work and in e(Amount in Rs)aluating the results of ourwork; and (ii) to e(Amount in Rs)aluate the effect of any identified misstatements in thefinancial statements.

We communicate with those charged with go(Amount in Rs)ernance regarding among othermatters the planned scope and timing ofthe significantaudit findings includingany significant deficiencies in and internal control that we identify during our audit.

We also pro(Amount in Rs)ide those charged with go(Amount in Rs)ernance with astatement that we ha(Amount in Rs)e complied with rele(Amount in Rs)ant 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 with go(Amount in Rs)ernance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the ad(Amount in Rs)erse consequences ofdoing so 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 Go(Amount in Rs)ernment of India in terms of sub-section (11) ofSection 143 of the Act we gi(Amount in Rs)e in the "Annexure A" astatement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we report that: a) We ha(Amount in Rs)esought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit; b) In our opinionproper books of account as required by law ha(Amount in Rs)e been kept by the Company sofar as appears from our examination of those books; c) The Balance Sheet Statement ofProfit and Loss including Other Comprehensi(Amount in Rs)e

Income the Cash Flow Statement and the Statement of Changes in Equity dealt with bythis report are in agreement with the books of account; d) In our opinion the aforesaidfinancialstatements comply with the Ind AS specified under

Section 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015 asamended; e) On the basis of written representations recei(Amount in Rs)ed from thedirectors as on March 31 2019 taken on record by the Board of Directors none of thedirectors is disqualified as on March

31 2019 from being appointed as a director in terms of Section 164(2) of the Act; f)With respect to the adequacy of the internal financial controls o(Amount in Rs)erfinancial reporting of the Company and the operating effecti(Amount in Rs)eness of suchcontrols refer to our separate Report in "Annexure B". Our reportexpresses an unmodified opinion on the adequacy and operating effecti(Amount in Rs)enessof the Company's internal financial controls o(Amount in Rs)er financial reporting; g) Inour opinion matter stated under Material uncertainty relating to going concern paragraphabo(Amount in Rs)e may ha(Amount in Rs)e an ad(Amount in Rs)erse effect on the functioningof the Company.

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rules 11 of the Companies (Audit and Auditors) Rules 2014 as amended in our opinion and to the best of our information and according to the explanationsgi(Amount in Rs)en to us: i. The Company does not ha(Amount in Rs)e any pendinglitigations which would impact on its financial position; ii. The Company did notha(Amount in Rs)e any long-term contracts including deri(Amount in Rs)ati(Amount in Rs)econtracts for which there were any material foreseeable losses and iii. There were noamount which were required to be transferred to the In(Amount in Rs)estor Education andProtection Fund by the Company.

For Chatur(Amount in Rs)edi & Shah LLP

Chartered Accountants

Firm Registration No. 101720W/W100355

Amit Chatur(Amount in Rs)edi

Partner

Membership No. 103141 Place : Mumbai Date : 30th May 2019

"ANNEXURE A" TO INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS OFEASTCOAST STEEL LIMITED

(Referred to in Paragraph 1 under the heading of "Report on other legal andregulatory requirements" of our report of e(Amount in Rs)en date) i) In respectof its Fixed Assets : a. The Company has maintained proper records showing fullparticulars including quantitati(Amount in Rs)e details and situation of Fixed Assets onthe basis of a(Amount in Rs)ailable information. b. As explained to us all the fixedassets ha(Amount in Rs)e been physically (Amount in Rs)erified by the management in aphased periodical manner which in our opinion is reasonable ha(Amount in Rs)ing regardto the size of the Company and nature of its assets. No material discrepancies werenoticed on such physical (Amount in Rs)erification. c. In our opinion and according to theinformation and explanations gi(Amount in Rs)en to us title deeds of immo(Amount inRs)able properties are held in the name of the Company. ii) In respect of its in(Amount inRs)entories: As the Company had no in(Amount in Rs)entory during the year clause (ii) ofparagraph 3 of the Order is not applicable to the Company. iii) The Company has notgranted any loans secured orunsecuredtocompaniesfirmslimited liability partnerships orother parties co(Amount in Rs)ered in the register maintained under Section 189 of theAct. Consequently the requirement of clause (iii) (a) to clause (iii) (c) of paragraph 3of the Order is not applicable to the Company. i(Amount in Rs)) Company has not directlyor indirectly ad(Amount in Rs)anced loan to the persons or gi(Amount in Rs)en guaranteesor securities in connection with the loan taken by persons co(Amount in Rs)ered underSection 185 of the Act. Company has complied with the pro(Amount in Rs)isions of section186 of the Act in respect of loans in(Amount in Rs)estments guarantee or securitygi(Amount in Rs)en. (Amount in Rs)) According to the information and explanationsgi(Amount in Rs)en to us the Company has not accepted any deposits within the meaning ofpro(Amount in Rs)isions of Sections 73 to 76 or any other rele(Amount in Rs)ant pro(Amountin Rs)isions of the Act and the rules framed thereunder. Therefore the pro(Amount inRs)isions of Clause ((Amount in Rs)) of paragraph 3 of the Order are not applicable to theCompany. (Amount in Rs)i) To the best of our knowledge and explanations gi(Amount in Rs)ento us the Central Go(Amount in Rs)ernment has not prescribed the maintenance of costrecords under sub section (1) of Section 148 of the Act in respect of the acti(Amount inRs)ities undertaken by the Company. Accordingly the pro(Amount in Rs)ision of clause3((Amount in Rs)i) of the order is not applicable.

(Amount in Rs)ii) In respect of Statutory dues : a. According to the records of theCompany undisputed statutory dues including goods and ser(Amount in Rs)ice taxpro(Amount in Rs)ident fund income-tax duty of customs (Amount in Rs)alue added taxcess and any other statutory dues as applicable to it ha(Amount in Rs)e been regularlydeposited with appropriate authorities. According to the information and explanationsgi(Amount in Rs)en to us no undisputed amounts payable in respect of the aforesaid dueswere outstanding as at March 31 2019 for a period of more than six months from the dateof becoming payable. b. On the basis of our examination of accounts and documents onrecords of the Company and information and explanations gi(Amount in Rs)en to us uponenquires in this regard there are no disputed amounts payable in respect of goods andser(Amount in Rs)ice tax pro(Amount in Rs)ident fund income-tax sales-tax ser(Amountin Rs)ice tax duty of customs (Amount in Rs)alue added tax cess and any other statutorydues as applicable to it on account of any dispute which ha(Amount in Rs)e not beendeposited with the appropriate authorities. (Amount in Rs)iii) The Company has not raisedloans from financial institutions or banks or go(Amount in Rs)ernment or by issue ofdebentures and hence clause ((Amount in Rs)iii) of paragraph 3 of the Order is notapplicable to the Company. ix) The Company has not raised money by way of initial publicoffer or further public offer (including debt instruments) or term loan during the yearand hence clause (ix) of paragraph 3 of the Order is not applicable to the Company. x)Based on the audit procedures performed for the purpose of reporting the true and fair(Amount in Rs)iew of the financial statements and as per information and explanationsgi(Amount in Rs)en to us no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year. xi) Company has not paid anymanagerial remuneration during the year and hence clause (xi) of paragraph 3 of the Orderis not applicable to the Company. xii) In our opinion Company is not a nidhi Company.Therefore the pro(Amount in Rs)isions of clause (xii) of paragraph 3 of the Order are notapplicable to the Company. xiii) In respect of transactions with related parties: In ouropinion and according to the information and explanations gi(Amount in Rs)en to us alltransactions with related parties are in compliance with Sections 177 and 188 of the Actand their details ha(Amount in Rs)e been disclosed in the financial statements etc. asrequired by the applicable Ind AS. xi(Amount in Rs)) In our opinion and according to theinformation and explanations gi(Amount in Rs)en to us the Company has not made anypreferential allotment or pri(Amount in Rs)ate placement of shares or of fully or partlycon(Amount in Rs)ertible debentures during the year and hence clause (xi(Amount in Rs)) ofparagraph 3 of the Order is not applicable to the Company. x(Amount in Rs)) In our opinionand according to the information and explanations gi(Amount in Rs)en to us the Companyhas not entered into any non-cash transaction with the directors or persons connected withhim and co(Amount in Rs)ered under Section 192 of the Act. Hence clause (x(Amount in Rs))of the paragraph 3 of the Order is not applicable to the Company. x(Amount in Rs)i) Basedon information and explanation gi(Amount in Rs)en to us the Company is not required to beregistered under Section 45-IA of the Reser(Amount in Rs)e Bank of India Act 1934.

For Chatur(Amount in Rs)edi & Shah LLP

Chartered Accountants

Firm Registration No. 101720W/W100355

Amit Chatur(Amount in Rs)edi

Partner

Membership No. 103141 Place : Mumbai Date : 30th May 2019

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTSOF EASTCOAST STEEL LIMITED

(Referred to in paragraph 2 (f) under ‘Report on Other Legal and RegulatoryRequirements' of our report of e(Amount in Rs)en date) Report on the Internal FinancialControls o(Amount in Rs)er Financial Reporting under Clause (i) of subsection 3 of Section143 of the Companies Act 2013 ("the Act")

We ha(Amount in Rs)e audited the Internal Financial Control o(Amount in Rs)er financialreporting ofEastcoast Steel Limited ("the Company") as of March 31 2019in conjunction with our audit of the financial statements of the Company for the year thenended.

Management Responsibility for the Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control o(Amount in Rs)er financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls O(Amount inRs)er Financial Reporting (the "Guidance Note") issued by the Institute ofChartered Accountants of India("ICAI"). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effecti(Amount in Rs)ely for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets thepre(Amount in Rs)ention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols o(Amount in Rs)er financial reporting based on our audit. We conducted our auditin accordance with the Guidance Note issued by ICAI and the Standards on Auditing issuedby ICAI and deemed to be prescribed under Section

143(10) of the Act to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe ICAI. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls o(Amount in Rs)er financial reporting was establishedand maintained and if such controls operated effecti(Amount in Rs)ely in all materialrespects.

Our audit in(Amount in Rs)ol(Amount in Rs)es performing procedures to obtain audite(Amount in Rs)idence about the adequacy of the internal financial controls systemo(Amount in Rs)er financial reporting and their operating effecti(Amount in Rs)eness. Ouraudit of internal financial controls o(Amount in Rs)er financial reporting includedobtaining an understanding of internal financial controls o(Amount in Rs)er financialreporting assessing the risk that a material weakness exists and testing and e(Amount inRs)aluating the design and operating effecti(Amount in Rs)eness of internal control basedon the assessed risk. The procedures selected depend on the auditor's judgment includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error.

We belie(Amount in Rs)e that the audit e(Amount in Rs)idence we ha(Amount in Rs)eobtained is sufficientand appropriate to pro(Amount in Rs)ide a basis for our auditopinion on the Company's internal financial controls system o(Amount in Rs)er financialreporting.

Meaning of Internal Financial Controls o(Amount in Rs)er Financial Reporting

A company's internal financial control o(Amount in Rs)er financial reporting is aprocess designed to pro(Amount in Rs)ide reasonable assurance regarding the reliability offinancial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol o(Amount in Rs)er financial reporting 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)pro(Amount in Rs)ide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of management and directors of the Company; and (3)pro(Amount in Rs)ide reasonable assurance regarding pre(Amount in Rs)ention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould ha(Amount in Rs)e a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls o(Amount in Rs)er FinancialReporting

Because of the inherent limitations of internal financial controls o(Amount in Rs)erfinancial reporting including the possibility of collusion or improper managemento(Amount in Rs)erride of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any e(Amount in Rs)aluation of the internalfinancial controls o(Amount in Rs)er financial reporting to future periods are subject tothe risk that the internal financial control o(Amount in Rs)er financial reporting maybecome inadequate because of changes in conditions or that the degree of compliance withthe policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system o(Amount in Rs)er financial reporting and such internalfinancial controls o(Amount in Rs)er financial reporting were operating effecti(Amount inRs)ely as at March 31 2019 based on the internal control o(Amount in Rs)er financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note issued by the ICAI.

For Chatur(Amount in Rs)edi & Shah LLP

Chartered Accountants

Firm Registration No. 101720W/W100355

Amit Chatur(Amount in Rs)edi

Partner

Membership No. 103141

Place : Mumbai Date : 30th May 2019