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Eastcoast Steel Ltd.

BSE: 520081 Sector: Metals & Mining
NSE: ESTCSTSTEL ISIN Code: INE315F01013
BSE 00:00 | 14 Dec Eastcoast Steel Ltd
NSE 05:30 | 01 Jan Eastcoast Steel Ltd
OPEN 81.20
PREVIOUS CLOSE 81.20
VOLUME 200
52-Week high 85.45
52-Week low 39.90
P/E
Mkt Cap.(Rs cr) 44
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 81.20
CLOSE 81.20
VOLUME 200
52-Week high 85.45
52-Week low 39.90
P/E
Mkt Cap.(Rs cr) 44
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Eastcoast Steel Ltd. (ESTCSTSTEL) - Auditors Report

Company auditors report

To the Members of

Eastcoast Steel Limited 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 31stMarch 2017 and the

Statement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese

statements that give a true and fair view of the financial position financialperformance and the cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under section133 of the Act read with rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provision of the Act for safeguarding the assets of the Company and for preventing anddetecting frauds and other irregularities; selection and application of the appropriateaccounting policies; making judgements 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 fair presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.

Opinion

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 the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31st

March 2017 and its loss and its cash flows for the year ended on that date.

Emphasis of Matter

We draw attention to Note No. 32 of the accompanying Statement relating to demand of `105354632/- towards the arrears accrued of electricity charges of the previous years.Company has paid an amount of ` 5000000/- towards the said liability during the year andthe Board is seized with expediting to extinguish the remaining part of it.

The management is confident of raising required resources to meet the liability andtherefore the accounts have been prepared on going concern basis.

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 sub-section (11) of section

143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books.

c) The Balance Sheet Statement of Profit and Loss and the Cash Flow Statement dealtwith by this report are in agreement with the books of account.

d) The qualification relating to the maintenance of accounts and other mattersconnected herewith.

e) In our opinion the aforesaid financial statements comply with the accountingstandards specified under section 133 of the Act read with Rule 7 of the

Companies (Accounts) Rules 2014. f) On the basis of written representations receivedfrom the directors as on 31st March 2017 taken on record by the Board ofDirectors none of the directors is disqualified as on 31st March 2017 frombeing appointed as a director in terms of section 164(2) of the Act.

g) 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 B". h) With respect to the other matters to beincluded in the Auditor's Report in accordance with Rules 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: i. The Company has disclosed the impact of pendinglitigations on its financial position in its financial statements as referred to in Note23 to the financial statements. ii. The Company did not have material foreseeable losseson long term contracts including derivative contracts that require provision under any lawor accounting standards for which there were any material foreseeable losses. iii. Therewere no amounts which are required to be transferred to the Investor Education andProtection Fund by the Company during the year and

iv. The Company has provided requisites disclosures in the financial statements as toholdings as well as dealing in Specified Bank

Noted during the period from 8th November 2016 till 30thDecember 2016. Based on audit procedures and replying on the management representation wereport that disclosure are in accordance with the books of account maintained by theCompany and as produced to us by the Management.

For Chaturvedi & Shah

Chartered Accountants

Firm Registration No : 101720W

Sd/-

Amit Chaturvedi

Partner

Membership No. : 103141

Place : Mumbai

Date : 23rd May 2017

"Annexure A" to Independent Auditors' Report referred to in Paragraph 1 underthe heading of "Report on other legal and regulatory requirements" of our reportof even date. i. In respect of its fixed assets : a) The Company has maintained properrecords showing full particulars including quantitative details and situation of fixedassets on the basis of available information.

b) As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. No material discrepancies werenoticed on such physical verification. c) In our opinion and according to the informationand explanations given to us title deeds of immovable properties are held in the name ofthe Company. ii. As the Company did not have Inventories during the year clause (ii) ofparagraph of 3 of the order is not applicable to the Company. iii. 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. Consequently the requirement of clause (iii) (a) to clause (iii) (c) of paragraph 3of the Order is not applicable to the Company. iv. Company has not directly or indirectlyadvanced loan to the persons or given guarantees or securities in connection with the loantaken by persons covered under Section 185 of the Act. Company has complied with theprovisions of section 186 of the Act in respect of loans investments guarantee orsecurity given. v. According to the information and explanations given to us the Companyhas not accepted any deposits within the meaning of provisions of sections 73 to 76 or anyother relevant provisions of the Act and the rules framed there under. Therefore theclause (v) of paragraph 3 of the Order is not applicable to the Company. vi. To the bestof our knowledge and explanations given to us the Central Government has not prescribedthe maintenance of cost records under sub section (1) of Section 148 of the Act in respectof the activities undertaken by the Company vii. In respect of Statutory dues : a)According to the records of the Company undisputed statutory dues including providentfund employees' state insurance income tax service tax cess and any other statutorydues have been regularly deposited with appropriate authorities. According to theinformation and explanations given to us no undisputed amounts payable in respect of theaforesaid dues were outstanding as at March 31 2017 for a period of more than six monthsfrom the date they became payable. b) According to the information and explanations givento us there are no dues of income tax service tax and cess on account of any disputewhich have not been deposited.

viii. The Company has not raised loans from financial institutions banks governmentor by issue of debentures and hence clause (viii) 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 and hence clause(ix) of paragraph 3 of the Order is not applicable to the Company. x. Based on the auditprocedures performed for the purpose of reporting the true and fair view of the financialstatements and as per information and explanations given to us no fraud by the Company oron the Company by its officers or employees has been noticed or reported during the year.xi. Company has not paid any managerial remuneration during the year and hence clause (xi)of paragraph 3 of the Order is not applicable to the Company. xii. In our opinion Companyis not a nidhi Company. Therefore the provisions of clause (xii) of paragraph 3 of theOrder are not applicable to the Company. xiii. In our opinion and according to theinformation and explanations given to us all transactions with related parties are incompliance with sections 177 and 188 of the Act as applicable and their details have beendisclosed in the financial statements etc. as required by the applicable accountingstandards. xiv. In our opinion and according to the information and explanations given tous the Company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year and hence clause (xiv) of paragraph3 of the Order is not applicable to the Company. xv. In our opinion and according to theinformation and explanations given to us the Company has not entered into any non-cashtransaction with the directors or persons connected with him and covered under section 192of the Act. Hence clause (xv) of the paragraph 3 of the Order is not applicable to theCompany. xvi. To the best of our knowledge and as explained the Company is not requiredto be registered under section 45-IA of the Reserve Bank of India Act 1934.

For Chaturvedi & Shah

Chartered Accountants

Firm Registration No : 101720W

Sd/-

Amit Chaturvedi

Partner

Membership No. : 103141

Place : Mumbai

Date : 23rd May 2017

"Annexure B" to Independent Auditors' Report referred to in paragraph 2(f)under the heading "Report on other legal and regulatory requirements" of ourreport of even date.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the Internal Financial Control over financial reporting of EastcoastSteel Limited ("the Company") as of 31st March 2017 inconjunction 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 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 Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditor's Responsibility

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 Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 unauthorised 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.

Opinion

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 31st March 2017based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the ICAI.

For Chaturvedi & Shah

Chartered Accountants

Firm Registration No : 101720W

Sd/-

Amit Chaturvedi

Partner

Membership No. : 103141

Place : Mumbai

Date : 23rd May 2017