The Members of
CHASE BRIGHT STEEL LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of CHASEBRIGHT STEEL LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2017 the Statement of Profit and Loss and the Cash Flow Statement forthe year then ended and a summary of the significant accounting policies and otherexplanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters insection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation and presentation of these financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes the maintenance ofadequate accounting records in accordance with the provision of the Act for safeguardingof the assets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of internal financial controls that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financialstatements based on our audit.
We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement. An audit involves performing procedures to obtain audit evidenceabout the amounts and disclosures in the financial statements. 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. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by Company's Directors as well asevaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the
Company as at March 31 2017 its Loss and its cash flows for the yearended on that date.
Report on Other Legal and Regulatory Requirements i. As required bythe Companies (Auditor's Report) Order 2016 ("the Order") issued by theCentral Government of India in terms of Section 143(11) of the Act and on the basis ofsuch checks of books and records of the Company as we considered appropriate and accordingto the information and explanation given to us we give in the "Annexure A"statement on the matters specified in the paragraph 3 and 4 of the Order to the extendapplicable. ii. As required by Section 143(3) of the Act we report that: a We have soughtand obtained 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 the Statement of Profit and Loss and theCash Flow Statement dealt with by this Report are in agreement with the Books of Account.d In our opinion the aforesaid financial statements comply with the Accounting Standardsspecified 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 onMarch 31 2017 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2017 from being appointed as a director in terms of Section164(2) of the Act: and f with respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B"; and g With respect to theother matters to be included in the Auditor's Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rule 2014 in our opinion and to our best of ourinformation and according to the explanations given to us : (i) The Company has disclosedthe impact of pending litigations on its financial position in its financial statements Refer Note "31(K) and 31(L)" to the financial statements.
(ii) The Company did not have any long-term contracts includingderivatives contracts for which there were any material foreseeable losses as requiredunder the applicable law or accounting standards.
(iii) There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.
(iv) The Company has provided requisite disclosers in its financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016. Based on auditprocedures and relying on the management representation we report that the disclosures arein accordance with books of account maintained by the Company and as produced to us by themanagement Refer Note 31(W).
| ||For MAHENDRA KUMBHAT & ASSOCIATES |
| ||Chartered Accountants |
| ||Firm Registration No. 105770W |
| ||(AMAR BAGRECHA) |
|Place : Mumbai ||Partner |
|Dated : May 27 2017 ||Membership No.: 056605 |