We have audited the accompanying financial statements of CHASE BRIGHT STEEL
LIMITED (“the Company”)(CIN : L99999MH1959PLC011479), which comprise the Balance
Sheet as at March 31, 2024, the Statement of Profit and Loss (including other comprehensive
income), Statement of Changes in Equity and Statement of Cash Flows for the year then ended,
and notes to the financial statements, including a summary of significant accounting policies and
other explanatory information (hereinafter referred to as “the financial statements”).
Opinion
In our opinion and to the best of our information and according to the explanations given to us,
the aforesaid financial statements give the information required by the Companies Act, 2013
( the Act”) in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of affairs of the Company as at
March 31, 2024, and Profit (including other comprehensive income), changes in equity and its
cash flows 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 further described in
the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We
are independent of the Company in accordance with the Code of Ethics issued by the Institute of
Chartered Accountants ol India together with the ethical requirements that are relevant to our
audit of the financial statements under the provisions of the Act and the Rules thereunder, and
we have fulfilled our other ethical responsibilities in accordance with these requirements and the
Code of Ethics. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Material Uncertainty Related to Going Concern
The operating results have been adversely affected due to very low level of activities and the
accumulated losses of the Company as at 31st March, 2024 stand at Rs. 1,564.10 Lakhs as
against the share capital of Rs. 167.50 Lakhs. Also current liabilities as at 31st March, 2024
exceed current assets by Rs. 1,270.73 Lakhs. At present the Company does not have any
manufacturing facility of its own and most of the workers / staff of the Company have left the
employment. These conditions indicate the existence of material uncertainty about the
Company's ability to continue as a going concern, which is dependent on the Company
establishing profitable operations and sustainable cash flows. The Management is in the process
of further rationalizing the expenses, continuously reducing its liabilities and also considering the
measures to generate additional revenue apart from revenue generated during the year.
Accordingly, the Company continues to prepare its accounts on a "Going Concern" basis. (Please
refer Note No. 27(h)).
Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters (‘KAM’) are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters were
addressed in the context of our audit of the financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
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The Key Audit Matters
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How our audit addressed the Key Audit
Matters
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As at 31 March 2024, the gross carrying
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Our audit procedures to assess the
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amount of trade receivables was Rs. 149.59
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recoverability of trade debtors included the
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lakhs, The Company determines, at each
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following:
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balance sheet date, the existence of any
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• Assessing the design and implementation of
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objective evidence of impairment of trade
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the Company’s internal control in relation to
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receivables. Basis this evaluation, the
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the revenue and collection cycle, particularly
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Company provides for impairment allowance
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the controls over receivables collection;
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which comprises of a specific element based
on individual debtors and a collective element
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based on historical experience adjusted for
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• Obtaining an understanding Company’s
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certain current factors. In computing the
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judgment about recoverability of individual
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allowance, Company considers factors such
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trade debtor balances. Evaluating the
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as type of products sold, credit terms, ageing
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provisions for doubtful debt s made by
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of receivables, current creditworthiness, past
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Company for these individual balances with
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collection history, insurance cover as also
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reference to the debtors’ financial condition,
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historical loss experience. We focused on this
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industry in which the debtors are operating,
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area because: Trade receivables and its loss
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ageing of balances, historical and post
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allowance are significant to the Company. We
identified recoverability of trade debtors as a
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yearend collection records;
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key audit matter because of delays in
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• Assessing, on a sample basis, items in the
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collections of amounts due as also the
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trade receivables’ ageing report were
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recognition of expected credit losses which is
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classified within the correct ageing bracket
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inherently subjective and requires the exercise
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by comparing individual items in the report
with underlying documentation;
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of significant company judgment.
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• Comparing, on a sample basis, cash receipts
from customers subsequent to the financial
year-end relating to trade receivable balances
as at 31 March 2024 with bank statements
and relevant remittance documentation; and
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• Evaluate the rationale of Company’s loss
allowance estimates by inspecting the
information used by the Company such as
ageing of overdue balances, extent of
insurance coverage, historical and post year-
end collection trend from debtors, legal
notices issued to overdue debtors and the
historical and estimated loss rate.
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Other Information
The Company’s management and Board of Directors are responsible for the other information.
The other information comprises the information included in the Company’s annual report, but
does not include the financial statements and our auditors’ report thereon. Our opinion on the
financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated. If, based on the work we have performed, we conclude that there is a
material misstatement of this other information; we are required to report that fact. We have
nothing to report in this regard.
Responsibility of Management and those Charged with Governance for the Financial
Statements
The Company's management and Board of Directors are responsible for the matters stated in
Section 134(5) of the Act with respect to the preparation of these financial statements that give a
true and fair view of the state of affairs, profit / loss (including other comprehensive income),
changes in equity and cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under
Section 133 of the Act.
This responsibility also includes the maintenance of adequate, accounting records in accordance
with the provision of the Act for safeguarding of the assets of the! Company and for preventing
and detecting the frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the Financial Statements that give a true and fair view and are
free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless the Board of Directors
either intends to liquidate the Company or to cease operations, or has no realistic alternative but
to do so.
The Members of the Board of Directors are also responsible for overseeing the company’s
financial reporting process.
Auditor’s Responsibilities for the Audit of the Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
Annexed herewith “Annexure A” to this report, the Auditors responsibility under Standards of
Auditing, Assurance and Limitations of Audit.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020 (“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 B”, a statement on the matters specified in the paragraph 3 and 4 of the
order.
2. As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best ol
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, including Other Comprehensive
Income, Cash Flow Statement and Statement of Change in Equity, dealt with by this
Report is in agreement with the books of account;
(d) in our opinion, the aforesaid financial statements comply with the Accounting Standards
specified under Section 133 of the Act, read with relevant Rules issued thereunder;
(e) on the basis of the written representations received from the directors as on 31 March
2024 taken on record by the Board of Directors, none of the directors is disqualified as
on 31 March 2024 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 over financial reporting of
the Company and the operating effectiveness of such controls, refer to our separate
report in “Annexure C”. Our report expresses an unmodified opinion on adequacy and
operating effectiveness of the Company’s internal financial controls over financial
reporting.
(g) with respect to the other matters to be included in the Auditor’s Report in accordance
with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to
the best of our information and according to the explanations given to us:
- (i) the Company has disclosed the impact of pending litigations on its financial position
in its financial statements, if any
(ii) The Company did not have any material foreseeable losses on long-term contracts
including derivative contracts.
- (iii) There were no amounts required to be transferred to the Investor Education and
Protection Fund by the Company.
- (iv) (a) The management has represented that, to the best of its knowledge and belief,
no funds have been advanced or loaned or invested (either from borrowed funds or
share premium or any other sources or kind of funds) by the Company to or in any other
persons or entities, including foreign entities (“Intermediaries”), with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall:
1. directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Company
or
2. provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries
(b) The management has represented, that, to the best of its knowledge and belief,
no funds have been received by the Company from any persons or entities, including
foreign entities (“Funding Parties”), with the understanding, whether recorded in
writing or otherwise, that the Company shall
1. directly or indirectly, lend or invest in other persons or entities identified in any
manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Funding
Party
or
2. Provide any guarantee, security or the like from or on behalf of the Ultimate
Beneficiaries; and
(c) Based on such audit procedures as considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub clause (d)(i) and (d)(ii) contain any material
misstatement
(d) The Company has not declared or paid any dividend during the year under
Audit.
(e) The reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules,
2014 is applicable from 1 April 2023.
Based on our examination, the Company has not used accounting softwares for
maintaining its books of account, which have a feature of recording audit trail (edit
log) facility throughout the year for all relevant transactions recorded in the
respective software.
3. With respect to the matter to be included in the Auditors’ Report under section 197(16):
In our opinion and according to the information and explanations given to us, the
remuneration paid by the Company to its directors during the current year is in accordance
with section 197 of the Act.
The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of
the Act which are required to be commented upon by us.
For MAHENDRA KUMBHAT & ASSOCIATES
Chartered Accountants
Finn’s registration No.: 105770W
MANOJ PRAVINCHANDRA SHAH
Partner
Membership number: 043290
Mumbai
May 16, 2024
LJDLN : 24043290BKFWDU1551
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