You are here » Home » Companies » Company Overview » Chase Bright Steel Ltd

Chase Bright Steel Ltd.

BSE: 504671 Sector: Metals & Mining
NSE: N.A. ISIN Code: N.A.
BSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN
PREVIOUS CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr)
Buy Price
Buy Qty
Sell Price
Sell Qty
OPEN
CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr)
Buy Price
Buy Qty
Sell Price
Sell Qty

Chase Bright Steel Ltd. (CHASEBRIGHTST) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

CHASE BRIGHT STEEL LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of CHASE BRIGHT STEEL LIMITED("the Company") which comprise the Balance Sheet as at March 31 2016the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of the 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 in section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation andpresentation of these financial statements that give a true and fair view of the financialposition financial performance and_cash flows_of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of internal_financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records_relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud 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 thereunder. We conducted our audit in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give true and fair view in order todesign_audit procedures_that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by Company’s Directors as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

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 March31 2016 its Loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

i. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of Section 143(11) of theAct we give in the "Annexure A" statement on the matters specified inthe paragraph 3 and 4 of the Order to the extend applicable. ii. As required by Section143(3) of the Act 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 appears from our examination of those books.

c The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the Books of Account.

d 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.

e On the basis of written representations received from the directors as on March 312016 taken on record by the Board of Directors none of the directors is_disqualified_ason March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct: and 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 B"; and g With respect to the other mattersto be included in the Auditor’s Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rule 2014 in our opinion and to our best of our information andaccording to the explanations given to us :

(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements – Refer Note "31(M) and 31(N)"to the financial statements.

(ii) The Company did not have any long-term contracts including derivativescontracts_for which there were any material foreseeable losses as required under theapplicable law or accounting standards.

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For MAHENDRA KUMBHAT & ASSOCIATES
Chartered Accountants
Firm Registration No. 105770W
(AMAR BAGRECHA)
Place : Mumbai Partner
Dated : May 24 2016 Membership No.: 056605

"Annexure A" To Independent Auditors’ Report

(Referred to in our report of even date)

[Referred in Paragraph (i) under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date to the member of CHASE BRIGHTSTEEL LIMITED on the financial statements for the year ended March 31 2016.]

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) As explained to us all the fixed assets have been physically verified by themanagement according to a phased programme designed to cover all the fixed assets atleast once during the year which in our opinion is at reasonable intervals having regardto the size of the Company and nature of its assets. As informed to us no materialdiscrepancies were noticed on such verification.

(c) In our opinion and according to information and explanation given to us and on thebasis of an examination of the records of the Company the title deeds of the immovableproperties are held in the name of the company.

(ii) (a) The Inventory except goods-in-transit and stocks lying with third partieshave been physically verified by the management during the year or at the year end. In ouropinion the frequency of such verification is reasonable and adequate in relation to thesize of the company and nature of its business. For stocks lying with third parties at theyear end confirmations of such stocks being held have been obtained. The discrepanciesnoticed on verification between the physical stocks and the book records were not materialand have been dealt with in the books of account.

(iii) As the Company has not granted any loan secured or unsecured to companiesfirms or other parties covered in the register maintained under section 189 of the Actparagraphs 3(iii)(a) 3(iii)(b) and 3(iii)(c) of the Order are not applicable to theCompany.

(iv) 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 loans and investments.

(v) In our opinion and according to the information and explanation given to us as theCompany has not accepted any deposits from the public Paragraph 3(v) of the Order tocomment on whether the Company has complied with the directives issued by the Reserve Bankof India and the provisions of Sections 73 to 76 or any other relevant provisions of theCompanies Act 2013 and the Rules framed thereunder are not applicable.

(vi) We have broadly reviewed the cost records maintained by the Company pursuant tothe Companies (Cost Records and Audit) Rules 2014 as specified by the Central Governmentunder section 148(1) of the Act in respect of its products and are of the opinion thatprima facie the prescribed accounts and records have been made and maintained. Howeverwe have not made a detailed examination of the records with a view to determine whetherthey are accurate or complete.

(vii) (a) According to the information and explanation given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingthe undisputed statutory dues including provident fund employees’ state insuranceincome-tax sales-tax wealth-tax service- tax custom duty excise and other materialstatutory dues as applicable to it with the appropriate authorities. Further Accordingto the information and explanations given to us no undisputed amounts payable in respectof income-tax wealth-tax service-tax sales- tax customs duty and other materialstatutory dues were in arrears as at March 31 2016 for a period of more than six monthsfrom the date they became payable except Income-tax and TDS dues of Rs 8.17 lakhs NMMCCess of Rs 41.87 lakhs and employees’ state insurance of Rs 0.04 lakhs.

(b) According to the information and explanations given to us and on the basis of thebooks of accounts and records examined by us as may be applicable given herein beloware the details of dues of Income-tax Sales-tax Wealth Tax Service Tax Customs DutyExcise Duty Value Added Tax Cess which have not been deposited on account of disputesand the forum where the dispute is pending:

Particulars Financial Period for which the matter pertains Forum where dispute is pending Amount in Rs
Income-tax 2009 – 2010 Income-tax Appellate Tribunal Mumbai ( Appeal Filed by Revenue) 779325
MVAT Act 2002 2008 – 2009 Dy. Commissioner of Sales-tax 512931

(viii) According to the information and explanations given to us and records of theCompany examined by us the Company has not defaulted in repayment of dues to financialinstitutions or banks or government. Further the Company has not issued any debenturesand hence Paragraph 4 (viii) of the Order to that extent is not applicable.

(ix) In our opinion and according to the information and explanations given to us theCompany has utilised the money raised by way of term loans during the year for thepurposes for which they were raised. Further the Company did not raise any money by wayof initial public offer or further public offer (including debt instruments) during theyear. Accordingly paragraph 3 (ix) of the Order is not applicable.

(x) Based on the audit procedures performed and according to the information andexplanations given to us no material fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the course of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company managerial remuneration has been paid orprovided in accordance with the requisite approvals mandated by the provisions of section197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company as prescribed under section 406 of the Act. Accordinglyparagraph 3(xii) of the Order is not applicable to the Company.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Financial Statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him / her. (xvi) According toinformation and explanations given to us the Company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934. Accordingly Paragraph 3(xvi)of the Order is not applicable to the Company.

For MAHENDRA KUMBHAT & ASSOCIATES
Chartered Accountants
Firm Registration No. 105770W
(AMAR BAGRECHA)
Place : Mumbai Partner
Dated : May 24 2016 Membership No.: 056605

"Annexure B" To Independent Auditors’ Report

(Referred to in our report 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 controls over financial reporting of ChaseBright Steel Limited ("the Company") as of 31 March 2016 in conjunction withour audit 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 Reportingissued by the Institute of Chartered Accountants of India (‘ICAI’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors’ 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 Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company’s internal financial controls system over financialreporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that(a) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (b) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (c) 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 31 March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For MAHENDRA KUMBHAT & ASSOCIATES
Chartered Accountants
Firm Registration No. 105770W
(AMAR BAGRECHA)
Place : Mumbai Partner
Dated : May 24 2016 Membership No.: 056605