Auditor Report of Chase Bright Steel Ltd.

Mar 31, 2024

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.

The Key Audit Matters	How our audit addressed the Key Audit Matters
As at 31 March 2024, the gross carrying	Our audit procedures to assess the
amount of trade receivables was Rs. 149.59	recoverability of trade debtors included the
lakhs, The Company determines, at each	following:
balance sheet date, the existence of any	• Assessing the design and implementation of
objective evidence of impairment of trade	the Company’s internal control in relation to
receivables. Basis this evaluation, the	the revenue and collection cycle, particularly
Company provides for impairment allowance	the controls over receivables collection;
which comprises of a specific element based on individual debtors and a collective element
based on historical experience adjusted for	• Obtaining an understanding Company’s
certain current factors. In computing the	judgment about recoverability of individual
allowance, Company considers factors such	trade debtor balances. Evaluating the
as type of products sold, credit terms, ageing	provisions for doubtful debt s made by
of receivables, current creditworthiness, past	Company for these individual balances with
collection history, insurance cover as also	reference to the debtors’ financial condition,
historical loss experience. We focused on this	industry in which the debtors are operating,
area because: Trade receivables and its loss	ageing of balances, historical and post
allowance are significant to the Company. We identified recoverability of trade debtors as a	yearend collection records;
key audit matter because of delays in	• Assessing, on a sample basis, items in the
collections of amounts due as also the	trade receivables’ ageing report were
recognition of expected credit losses which is	classified within the correct ageing bracket
inherently subjective and requires the exercise	by comparing individual items in the report with underlying documentation;

of significant company judgment.	• 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
	• 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.

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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Mar 31, 2014

We have audited the accompanying financial statements of CHASE BRIGHT STEEL LIMITED ("the Company"), which comprise the Balance Sheet as at March 31,2014, the Statement of Profit and Loss and Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information, which we have signed under reference to this report.

Management''s Responsibility for the Financial Statements

The Company Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including Accounting Standards notified under the Companies Act, 1956 (the Act) read with the General Circular No. 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control 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.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of accounting policies use and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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 Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) In the case of the Balance Sheet, of the state of affairs of the company as at March 31, 2014;

(b) In the case of the Statement of Profit and Loss, of the loss for the year ended on that date; and

(c) In the case of the Cash Flow Statement, of the 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, 2003, as amended by the Companies (Auditor''s Report) (Amendment) Order, 2004, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act (hereinafter referred to as "the Order"), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanation given to us, we give in the Annexure a statement on the matters specified in Paragraphs 4 and 5 of the Order.

ii. As required by Section 227(3) of the Act, we report that:

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 appears from our examination of those books.

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

d. In our opinion, the Balance sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report comply with the Accounting Standards notified under the Act read with the General Circular No. 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013 to the extent applicable.

e. On the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274of the Act.

ANNEXURE TO INDEPENDENT AUDITORS'' REPORT [Referred in Paragraph (i) under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date to the member of CHASE BRIGHT STEEL LIMITED on the financial statements for the year ended March 31,2014.]

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

(b) All the fixed assets have been physically verified by the management, according to a phased programme designed to cover all the fixed assets at least once during the year, which in our opinion, is at reasonable intervals having regard to the size of the Company and nature of its assets. As informed to us, no material discrepancies were noticed on such verification.

(c) In our opinion, and according to the information and explanation given to us, the Company has not disposed off a substantial part of its fixed assets during the year so as to affect its going concern.

(ii) (a) The management has conducted physical verification of inventories during the year.

In our opinion, the frequency of verification is reasonable.

(b) In our opinion, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of inventories and the discrepancies noticed on physical verification between the physical stocks and book records were not material and have been properly dealt with in the books of account

(iii) (a) As per information furnished, the Company has not granted any loans, secured or unsecured to companies, firms other parties listed in the register maintained under section 301 of the Companies Act, 1956. Accordingly, clauses (b), (c) and (d) of paragraph 4(iii) of the said Order are not applicable.

(b) The company has taken unsecured loans from five parties covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 378.10 lakhs and the year-end balance of loans taken from such parties was Rs. 350.10 lakhs.

(c) In our opinion and according to the information and explanation given to us, the rate of interest and other terms and conditions for such loans, are not, prima facie, prejudicial to the interest of the Company.

(d) The Company is regular in repaying the principal amounts as stipulated.

(iv) In our opinion, and according to the information and explanation given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weakness in such internal control system.

(v) (a) On the basis of the audit procedures performed by us and according to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements that need to be entered in the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion, and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices / rates which are reasonable having regard to the prevailing market price / rates at the relevant time.

(vi) In our opinion and according to the information and explanation given to us, the Company has not accepted any deposits from the public and hence the question of complying with the directives issued by the Reserve Bank of India, the provisions of sections 58A and 58AA or any other relevant provisions of the Act and the Rules framed thereunder are not applicable.

(vii) In our opinion, the Company has an internal audit system commensurate with its size and nature of its business.

(viii) We have broadly reviewed the books of accounts maintained by the Company in respect of products where, pursuant to the rules made by the Central Government of India, the maintenance of cost records has been prescribed under clause (d) of section (1) of section 209 of the Act and are the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the records with a view to determine whether they are accurate or complete.

(ix) (a) According to the information and explanation given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, wealth-tax, service-tax, custom duty, excise and other material statutory dues, as applicable to it, with the appropriate authorities.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of income-tax, wealth-tax, service-tax, sales- tax, customs duty and other material statutory dues were in arrears, as at March 31,2014 for a period of more than six months from the date they became payable except Income-tax dues of Rs. 5.71 lakhs and NMMC Cess of Rs. 18.09 lakhs.

(c) According to the information and explanations given to us, there are no dues of income-tax, sales-tax service tax, custom duty, excise duty and cess which have not been deposited on account of any dispute.

(x) As on March 31,2014, the accumulated losses of the Company are not more than 50% of its net worth. The Company has incurred cash losses during the year ended on that date but not in the immediately preceding financial year.

(xi) According to the information and explanations given to us and records of the Company examined by us, the Company has not defaulted in repayment of dues, if any, to a financial institution or bank. Further, the Company has not issued any debentures and hence clause 4 (xi) of the Order, to that extent, is not applicable.

(xii) In our opinion and according to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Therefore the provisions of Clause 4(xii) of the Order are not applicable to the Company.

(xiii) In our opinion, the Company is not a chit fund, nidhi, mutual benefit fund or a society. Accordingly, paragraph 4(xiii) of the said Order is not applicable.

(xiv) According to the information and explanations given to us, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Order are not applicable to the Company.

(xv) According to the information and explanations given to us, the Company has not given guarantees for loans taken by others from banks or financial institutions.

(xvi) Based on the information and explanation given to us by the management, the proceeds from the term loans availed were, prima facie, have been applied for the purpose for which they were raised.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that the funds raised on short term basis have not been utilised for long term investment.

(xviii) According to the information and explanations given to us, as the Company has not made any preferential allotment of shares during the year, Accordingly, Clause 4(xviii) of the Order is not applicable.

(xix) According to the information and explanations given to us, as the Company has not issued any debentures, the question of creating security or charge in respect thereof does not arise.

(xx) As the Company has not raised any money by way of public issues during the year, the provisions of Clause 4(xx) of the Order are not applicable.

(xxi) Based on the audit procedure performed and information and explanations given to us by the management, we report that no fraud (i.e. intentional material misstatements resultant from fraudulent financial reporting and misappropriation of assets) on or by the Company has been noticed or reported during the course of our audit.

For A. J. MEHTA & ASSOCIATES

Chartered Accountants Firm Registration No. 106179W

(ATUL J. MEHTA)

Place : Mumbai Proprietor

Dated : May 30, 2014 Membership No.: 36959

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Mar 31, 2012

We have audited the attached Balance Sheet of CHASE BRIGHT STEEL LTD. as at March 31, 2012 the Statement of Profit and Loss account and also the Cash Flow statement for the year ended on that date 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.

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 misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors' Report) Order, 2003 (CARO 2003) (as amended) issued by the Central Government of India in terms of section 227(4A) of the Companies Act, 1956, we enclose in the Annexure, a statement on the matters specified in Paragraphs 4 and 5 of the said Order.

Further to our comments in the Annexure referred to above, we report that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit;

(ii) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books.

(iii) The Balance Sheet, the Statement of Profit and Loss Account and Cash Flow statement dealt with by this report are in agreement with the books of account of the Company;

(iv) In our opinion, the Balance Sheet, the Statement of Profit and Loss Account and the Cash Flow statement dealt with by this report comply with the Accounting Standards referred to in the section 211(3C) of the Companies' Act, 1956 to the extent applicable;

(v) On the basis of written representations received from the directors, as on March 31, 2012 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on March 31, 2012 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies' Act, 1956.

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said financial statements together with the "Significant Accounting Policies" and the Notes thereto and subject to Note No. 31 relating to non provision for doubtful debts of 10,09,374/, give the information required by the Companies' Act, 1956, in the manner so required and present a true and fair view in conformity with the accounting principles generally accepted in India :

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2012;

(b) in the case of the Statement of Profit and Loss Account, of the Profit for the year ended on that date; and

(c) in the case of the Cash Flow statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS' REPORT

(Referred to in paragraph 3 of our Report of even date)

On the basis of the records produced to us for our verification / perusal, such checks as we considered appropriate and in terms of information and explanations given to us on our enquiries, we state that

(1) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) As explained to us, all the assets have been physically verified by the management at reasonable intervals during the year. No material discrepancies were noticed on such verification.

(c) The Company has not disposed off a substantial / major part of Fixed Assets during the year.

(2) (a) As explained to us, the inventories have been physically verified by the management at regular intervals during the year and at the close of the year.

(b) In our opinion and according to the information and explanations given to us the procedures of physical verification of inventories followed by the management as explained to us are, in our opinion, reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been properly dealt within the books of account.

(3) (a) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Accordingly, Clauses (b), (c) and (d) of paragraph 4(iii) of the Order are not applicable.

(b) The company has taken loans from six parties covered in the register maintained under section 301 of the Companies Act, 1956. The maximum balance involved during the year was Rs. 362.10 lakhs and the year end balance of loans taken from such parties was 350.10 lakhs

(c) In our opinion, the rate of interest and other terms and conditions on which loans have been taken from companies and other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the company.

(d) The Company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest, wherever applicable.

(4) In our opinion and according to the information and explanations given to us, there are in general adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and also with regard to the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

(5) (a) On the basis of the audit procedures performed by us and according to the information and explanations provided by the management, the contracts or arrangements that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party have been made at prices / rates which are reasonable having regard to the prevailing market price / rates at the relevant time.

(6) In our opinion and according to the information and explanation given to us, the Company has not accepted any deposits from the public and consequently the directives issued by the Reserve Bank of India, the provisions of sections 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the Rules framed thereunder are not applicable.

(7) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

(8) We have broadly reviewed the books of account maintained by the Company in respect of products, where pursuant to the rules made by the Central Government of India, the maintenance of Cost Records has been prescribed under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

(9) (a) According to records of the Company, and on the basis of our examination of the books of accounts and other records, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, Employee's State Insurance, Income - tax, Service tax, Sales tax / VAT, Customs Duty, Excise Duty and other material statutory dues applicable to it but there have been some delays in few instances. However, according to information and explanation given to us, there is no liability towards Investor Education & Protection Fund, Wealth- tax for the year under audit.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, service tax, sales tax, customs duty, excise duty and cess were in arrears, as at March 31, 2012 for a period of more than six months from the date they became payable except Income-tax dues of Rs. 25.20 lakhs and NMMC Cess of Rs. 21.41 lakhs.

(c) According to the information and explanation given to us, there are no dues of income tax, sales tax, wealth tax, excise duty, service tax or custom duty which have not been deposited on account of any dispute.

(10) As on March 31, 2012, the accumulated losses of the Company are not more than 50% of its net worth. The Company has not incurred cash losses during the year ended on that date and in the immediately preceding financial year.

(11) Based on our audit procedure and on the basis of information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to financial institutions or banks. Further, the Company has not issued any debentures and hence clause 4 (xi) of the Order, to that extent, is not applicable.

(12) In our opinion and according to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(13) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Order are not applicable to the company.

(14) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Order are not applicable to the company.

(15) According to the information and explanations given to us, the company has not given guarantees for loans taken by others from banks or financial institutions.

(16) To the best of our knowledge and belief and according to the information and explanation given us, the proceeds from term loans availed were, prima, facie, applied by the Company during the year for the purpose for which the loans were obtained.

(17) According to the Cash Flow Statement and records examined by us and according to the information and explanations given to us, on overall basis, funds raised on short term basis have, prima facie, has not been used during the year for long term investment.

(18) The Company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

(19) The Company has not issued any debentures. Accordingly, clause 4(xix) of the Order is not applicable.

(20) The Company has not raised any money by way of public issue during the year.

(21) According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For A. J. MEHTA & ASSOCIATES

Chartered Accountants Firm Registration No. 106179W

(ATUL MEHTA)

Place : Mumbai Proprietor

Dated : August 14, 2012 Membership No.: 36959

---

Mar 31, 2011

We have audited the attached Balance Sheet of CHASE BRIGHT STEEL LTD. as at March 31,2011 the Profit and Loss account and also the Cash Flow statement for the year ended on that date 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.

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 misstatement. An audit includes examining. on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors' Report) Order, 2003 (CARO 2003) (as amended) issued by the Central Government of India in terms of section 227(4A) of the Companies Act, 1956, we enclose in the Annexure, a statement on the matters specified in Paragraphs 4 and 5 of the said Order.

Further to our comments in the Annexure referred to above, we report that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit:

(ii) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books.

(iii) The Balance Sheet, Profit and Loss Account and Cash Flow statement dealt with by this report are in agreement with the books of account of the Company;

(iv) In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow statement dealt with by this report comply with the Accounting Standards referred to in the section 211 (3C) of the Companies' Act, 1956 to the extent applicable:

(v) On the basis of written representations received from the directors, as on March 31, 2011 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on March 31, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies' Act, 1956.

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said financial statements together with the "Significant Accounting Policies" and "Notes to Accounts" and other notes appearing else where in the accounts and subject to Note No. 5 of Schedule 20 relating to non provision for doubtful debts of Rs. 10,09,374/-, give the information required by the Companies' Act, 1956, in the manner so required and present a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2011;

(b) in the case of the Profit and Loss Account, of the Profit for the year ended on that date; and

(c) in the case of the Cash Flow statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS' REPORT (Referred to in paragraph 3 of our Report of even date)

On the basis of the records produced to us for our verification / perusal, such checks as we considered appropriate and in terms of information and explanations given to us on our enquiries, we state that

(1) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) As explained to us, all the assets have been physically verified by the management at reasonable intervals during the year No material discrepancies were noticed on such verification.

(c) The Company has not disposed off a substantial part of Fixed Assets during the year.

(2) (a) As explained to us, the inventories have been physically verified by the management at regular intervals during the year and at the close of the year.

(b) In our opinion and according to the information and explanations given to us the procedures of physical verification of inventories followed by the management as explained to us are, in our opinion, reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been properly dealt within the books of account.

(3) (a) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Accordingly, Clauses (b), (c) and (d) of paragraph 4(iii) of the Order are not applicable.

(b) The company has taken loans from seven parties covered in the register maintained under section 301 of the Companies Act, 1956. The maximum balance involved during the year was Rs. 362.49 lakhs and the year end balance of loans taken from such parties was Rs. 296.46 lakhs.

(c) In our opinion, the rate of interest and other terms and conditions on which loans have been taken from companies and other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima lacie, prejudicial to the interest of the company.

(d) The Company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest, wherever applicable.

(4) In our opinion and according to the information and explanations given to us, there are in general adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and also with regard to the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

(5) (a) On the basis of the audit procedures performed by us and according to the information and explanations provided by the management, the contracts or arrangements that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party have been made at prices / rates which are reasonable having regard to the prevailing market price / rates at the relevant time.

(6) The Company has not accepted any deposits from the public and consequently the directives issued by the Reserve Bank of India, the provisions of sections 58A and 58AA or any other relevant provisions of the Act and the Rules framed thereunder are not applicable.

(7) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

(8) According to information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956 in respect of the manufacturing activities carried on by the Company and therefore, clause 4(viii) of the Order is not applicable.

(9) (a) According to records of the Company, and on the basis of our examination of the books of accounts and other records, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, Employee's State Insurance, Income-tax, Service tax, Sales tax/VAT, Customs Duty, Excise Duty and other material statutory dues applicable to it but there have been some delays in few instances. However, according to information and explanation given to us, there is no liability towards Investor Education & Protection Fund, Wealth- tax for the year under audit.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, service tax, sales tax, customs duty, excise duty and cess were in arrears, as at March 31,2011 for a period of more than six months from the date they became payable except Income-tax dues of Rs.88 lakhs and NMMC Cess of Rs. 25.56 lakhs.

(c) According to the information and explanation given to us, there are no dues of income tax, sales tax, wealth tax, excise duty, service tax or custom duty which have not been deposited on account of any dispute.

(10) As on March 31, 2010, the accumulated losses of the Company are more than 50% of its net worth. The Company has not incurred cash losses during the year ended on that date and in the immediately preceding financial year.

(11) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to financial institutions or banks. Further, the Company has not issued any debentures and hence clause 4 (xi) of the Order, to that extent, is not applicable.

(12) In our opinion and according to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(13) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Order are not applicable to the company.

(14) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Order are not applicable to the company.

(15) According to the information and explanations given to us, the company has not given guarantees for loans taken by others from banks or financial institutions.

(16) The Company has raised new loans during the year. The loans so raised have been utilized for the purpose for which they were raised.

(17) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we are of the opinion that the Company has utilised short term funds towards financing of losses incurred in the past.

(18) The Company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

(19) The Company has not issued any debentures. Accordingly, clause 4(xix) of the Order is not applicable.

(20) The Company has not raised any money by way of public issue during the year.

(21) According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For A. J. MEHTA & ASSOCIATES

Chartered Accountants Firm Registration No. 106179W

(ATUL MEHTA)

Proprietor Membership No.: 36959

Place: Mumbai Dated: August 06, 2011

---

Mar 31, 2010

We have audited the attached Balance Sheet of CHASE BRIGHT STEEL LTD. as at March 31,2010 the Profit and Loss account and also the Cash Flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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 misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) Order, 2003 (CARO 2003) (as amended) issued by the Central Government of India in terms of section 227(4A) of the Companies Act, 1956, we enclose in the Annexure, a statement on the matters specified in Paragraphs 4 and 5 of the said Order.

Further to our comments in the Annexure referred to above, we report that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit;

(ii) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books.

(iii) The Balance Sheet, Profit and Loss Account and Cash Flow statement dealt with by this report are in agreement with the books of account of the Company;

(iv) In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow statement dealt with by this report comply with the Accounting Standards referred to in the section 211 (3C) of the Companies Act, 1956 to the extent applicable;

(v) On the basis of written representations received from the directors, as on March 31,2010 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on March 31, 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said financial statements together with the "Significant Accounting Policies" and "Notes to Accounts" and other notes appearing else where in the accounts and subject to Note No. 5 of Schedule 20 relating to non provision for doubtful debts of ? 10,09,374/-, give the information required by the Companies Act, 1956, in the manner so required and present a true and fair view in conformity with the accounting principles generally accepted in India :

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2010;

(b) in the case of the Profit and Loss Account, of the Profit for the year ended on that date; and

(c) in the case of the Cash Flow statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

(Referred to in paragraph 3 of our Report of even date)

On the basis of the records produced to us for our verification / perusal, such checks as we considered appropriate and in terms of information and explanations given to us on our enquiries, we state that

(1) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) As explained to us, all the assets have been physically verified by the management at reasonable intervals during the year. No material discrepancies were noticed on such verification.

(c) The Company has not disposed off a substantial part of Fixed Assets during the year.

(2) (a) As explained to us, the inventories have been physically verified by the management at regular intervals during the year and at the close of the year.

(b) In our opinion and according to the information and explanations given to us the procedures of physical verification of inventories followed by the management as explained to us are, in our opinion, reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been properly dealt within the books of account.

(3) (a) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Accordingly, Clauses (b), (c) and (d) of paragraph 4(iii) of the Order are not applicable.

(b) The company has taken loans from seven parties covered in the register maintained under section 301 of the Companies Act, 1956. The maximum balance involved during the year was ? 333.82. lakhs and the year end balance of loans taken from such parties was ? 322.30 lakhs

(c) In our opinion, the rate of interest and other terms and conditions on which loans have been taken from companies and other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the company.

(d) The Company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest, wherever applicable.

(4) In our opinion and according to the information and explanations given to us, there are in general adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and also with regard to the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

(5) (a) On the basis of the audit procedures performed by us and according to the information

and explanations provided by the management, the contracts or arrangements that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs Jn respect of any party have been made at prices / rates which are reasonable having regard to the prevailing market price / rates at the relevant time.

(6) The Company has not accepted any deposits from the public and consequently the directives issued by the Reserve Bank of India, the provisions of sections 58A and 58AA or any other relevant provisions of the Act and the Rules framed thereunder are not applicable.

(7) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

(8) According to information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956 in respect of the manufacturing activities carried on by the Company and therefore, clause 4(viii) of the Order is not applicable.

(9) (a) According to records of the Company, and on the basis of our examination of the bookS of accounts and other records, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, Employees State Insurance, income - tax, Service tax, sales tax / VAT, Customs Duty, Excise Duty and other material statutory dues applicable to it but there have been some delays in few instances. However, according to information and explanation given to us, there is no liability towards Investor Education & Protection Fund, Wealth- tax for the year under audit.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, service tax, sales tax, customs duty, excise duty and cess were in arrears, as at March 31,2010 for a period of more than six months from the date they became payable except NMMC Cess of 719,24,420/-.

(c) According to the information and explanation given to us, there are no dues of income tax, sales tax, wealth tax, excise duty, service tax or custom duty which have not been deposited on account of any dispute.

(10) As on March 31,2010, the accumulated losses of the Company are more than 50% of its net worth. The Company has not incurred cash losses during the year ended on that date and in the immediately preceding financial year.

(11) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to financial institutions or banks. Further, the Company has not issued any debentures and hence clause 4 (xi) of the Order, to that extent, is not applicable.

(12) In our opinion and according to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(13) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Order are not applicable to the company.

(14) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Order are not applicable to the company.

(15) According to the information and explanations given to us, the company has not given guarantees for loans taken by others from banks or financial institutions.

(16) The Company has raised new loans during the year. The loans so raised have been utilized for the purpose for which they were raised.

(17) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we are of the opinion that the Company has utilised short term funds towards financing of losses incurred in the past.

(18) The Company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

(19) The Company has not issued any debentures. Accordingly, clause 4(xix) of the Order is not applicable.

(20) The Company has not raised any money by way of public issue during the year.

(21) According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For A. J. MEHTA & ASSOCIATES

Chartered Accountants

Firm Registration No. 106179W



Place: Mumbai

Dated : July 31,2010 (ATUL MEHTA)

Proprietor

Membership No.: 36959