ESSAR PORTS LIMITED
(FORMERLY KNOWN AS ESSAR SHIPPING PORTS AND LOGISTICS LIMITED)
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
TO,
THE MEMBERS OF,
ESSAR PORTS LIMITED.
(FORMERLY KNOWN AS ESSAR SHIPPING PORTS & LOGISTICS LIMITED).
1. We have audited the attached Balance Sheet of ESSAR PORTS LIMITED
(formerly known as Essar Shipping Ports & Logistics Limited) ("the
Company") as at March 31, 2012, the Statement of Profit and Loss and the
Cash Flow Statement of the Company for the year ended on that date, both
annexed thereto. These financial statements are the responsibility of the
Company`s Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit includes
examining, on a test basis, evidence supporting the amounts and the
disclosures in the financial statements. An audit also includes assessing
the accounting principles used and the significant estimates made by the
Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
3. As required by the Companies (Auditor`s Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
a. We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit;
b. In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c. The Balance Sheet, the Statement of Profit and Loss and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss and
the Cash Flow Statement dealt with by this report are in compliance with
the Accounting Standards referred to in Section 211(3C) of the Companies
Act, 1956;
e. In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information required
by the Companies Act, 1956 in the manner so required and give a true and
fair view in conformity with the accounting principles generally accepted
in India:
i. In the case of the Balance Sheet, of the state of affairs of the Company
as at March 31, 2012;
ii. In the case of the Statement of Profit and Loss, of the loss of the
Company for the year ended on that date; and
iii. In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. On the basis of the written representations received from the Directors
as on March 31, 2012 taken on record by the Board of Directors, none of the
Directors is disqualified as on March 31, 2012 from being appointed as a
director in terms of Section 274(1)(g) of the Companies Act, 1956.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm Registration No.117365W)
Khurshed Pastakia
Partner
(Membership No.31544)
Place: Mumbai
Date : May 30, 2012.
ANNEXURE TO THE AUDITORS` REPORT
(REFERRED TO IN PARAGRAPH 4 OF OUR REPORT OF EVEN DATE)
(i) Having regard to the nature of the Company`s business/activities/
result, clauses (vi), (viii), (xii), (xiii), (xiv), (xviii), (xix) and (xx)
of CARO are not applicable.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification which, in
our opinion, provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanation given to
us, no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations given
to us, the Company has not made substantial disposals of fixed assets
during the year and the going concern status of the Company is not
affected.
(iii) In respect of its inventory, as explained to us, the Company is not
required to maintain any inventories for its operation. Hence the
provisions of clause (ii) (a) to (ii) (c) of the Order is not applicable to
the Company.
(iv) In our opinion and according to the information and explanations given
to us, the Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the Register
maintained under Section 301 of the Companies Act, 1956. Hence, the
provisions of clause (iii) (b) to (iii) (g) of the Order are not applicable
to the Company.
(v) In our opinion and according to the information and explanations given
to us, there is an adequate internal control system commensurate with the
size of the Company and the nature of its business with regard to purchases
of inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in such
internal control system.
(vi) In our opinion and according to information and explanation given to
us, there are no contracts or arrangements that need to be entered into the
register maintained in pursuance of Section 301 of the Companies Act, 1956.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
(viii) According to the information and explanations given to us in respect
of statutory dues:
(a) The Company has generally been regular in depositing undisputed dues,
including Provident Fund, Income-tax, Tax Deducted at source, Sales Tax,
Service Tax, Custom Duty, Cess and other material statutory dues applicable
to it with the appropriate authorities. As informed to us, the provisions
for Investors Education and Protection Fund, Employee`s State Insurance,
Sales Tax, Wealth Tax and Excise duty were not applicable to the Company
during the year.
(b) There were no undisputed amounts payable in respect of above statutory
dues in arrears as at March 31, 2012 for a period of more than six months
from the date they became payable.
(c) There were no due pending to be deposited on account of any dispute in
respect of Income-tax, Service Tax, Custom Duty and Cess as on March 31,
2012.
(ix) The Company does not have accumulated losses as at the end of the
financial year. The Company has incurred cash losses in the financial year
covered by the audit; however no cash loss were incurred in the immediately
preceding financial year.
(x) In our opinion and according to the information and explanations given
to us, the Company has not defaulted in the repayment of dues to banks,
financial institutions and debenture holders.
(xi) In our opinion and according to the information and explanations given
to us, the terms and conditions of the guarantees given by the Company for
loans taken by others from banks and financial institutions are not prima
facie prejudicial to the interests of the Company.
(xii) In our opinion and according to the information and explanations
given to us, working capital loans of Rs. 30,000 lakhs have been applied by
the Company for purchase of investment in the equity of subsidiary
companies.
(xiii) On the basis of an overall examination of the balance sheet as at
March 31, 2012 and the cash flow statement of the Company for the year then
ended and according to the information and explanation given to us, we
report that funds raised on short-term basis amounting to Rs. 29,744.01
lakhs have, prima facie, been used for long term purpose.
(xiv) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud on
the Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm Registration No.117365W)
Khurshed Pastakia
Partner
(Membership No.31544)
Place: Mumbai
Date : May 30, 2012. |