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ABC Bearings Ltd.

BSE: 505665 Sector: Engineering
NSE: ANTFRIBEAR ISIN Code: INE779A01011
BSE LIVE 14:00 | 08 Dec 160.00 4.10
(2.63%)
OPEN

156.30

HIGH

161.00

LOW

156.30

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 156.30
PREVIOUS CLOSE 155.90
VOLUME 3730
52-Week high 199.65
52-Week low 85.00
P/E 21.86
Mkt Cap.(Rs cr) 184.80
Buy Price 160.00
Buy Qty 101.00
Sell Price 160.10
Sell Qty 1.00
OPEN 156.30
CLOSE 155.90
VOLUME 3730
52-Week high 199.65
52-Week low 85.00
P/E 21.86
Mkt Cap.(Rs cr) 184.80
Buy Price 160.00
Buy Qty 101.00
Sell Price 160.10
Sell Qty 1.00

ABC Bearings Ltd. (ANTFRIBEAR) - Auditors Report

Company auditors report

To

The Members of

ABC Bearings Limited

Report on the Financial Statements

We have audited the accompanying financial statements of ABC Bearings Limited ("theCompany") which comprise the Balance Sheet as at 31st March 2016 the Statement ofProfit and Loss the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with the Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate Accounting records in accordance withthe provision of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgement and estimates that are reasonable and prudent; anddesign; implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provision of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovision of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 31stMarch 2016 and its profit and its cash flows for the year ended on that date.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the Annexure I a statement on the matters specified in the paragraph 3and 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 bestof our knowledge and belief were necessary for the purpose of our audit.

b. In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books .

c. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with 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 the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms ofSection 164 (2) of the Act.

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 II "; and

g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in the financial statements (refer note 26 (ii) & (iii) to the financialstatements).

II. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.

III. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

For PARIKH & SHAH
Chartered Accountants
Firm's Registration No. 107528W
Place : Mumbai H.K. Desai
Date : 10th May 2016. Partner
Membership No.13719

ANNEXURE TO INDEPENDENT AUDITORS' REPORT ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH2016

1. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of all its fixed assets.

b) We are informed that the Company has a regular programme of physical verification ofits fixed assets in a phased manner over a period of three years. Accordingly thephysical verification of part of the fixed assets has been carried out by the Managementduring the year and no material discrepancies have been noticed on such verification.

c) According to the information and explanation given to us and on the basis ofexamination of the records the title deeds of immovable properties are held in the nameof the Company.

2. The inventory has been physically verified at reasonable intervals during the yearby the Management except stocks with third parties for which confirmations are obtained.The discrepancies noticed on physical verification between physical stocks and booksrecords were not material in relation to the operations of the Company and have beenproperly dealt with in the books of accounts.

3. The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under Section 189 of the Companies Act2013.

4. The Company has not advanced any loan or given guarantee and made any investment interms of Section 185 and 186 respectively of the Companies Act 2013 accordingly clause3(iv) of the Order is not applicable to the Company.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit during the year in terms of provision of Section 73to 76 or any other relevant provision of the Companies Act 2013 and the rules framedthereunder. According to the information and explanations given to us no order has beenpassed by the Company Law Board or the National Company Law Tribunal or the Reserve Bankof India or any Court or any other Tribunal.

6. We have broadly reviewed the books of Accounts maintained by the Company pursuant tothe Order made by the Central Government for the maintenance of cost records under Section148(1) of the Companies Act 2013 and are of the opinion that prima facie the prescribedaccounts and records have been maintained. We have not however made a detailedexamination of the records with a view to determining whether they are accurate orcomplete.

7. a) On the basis of our examination of the books of accounts and other relevantrecords the Company has been generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund income tax sales tax service taxcustom duty value added tax excise duty cess and other material statutory duesapplicable to it and no such dues were outstanding as at 31-03-2016 for a period of morethan six months from the date they became payable.

b) According to information and explanation given to us the disputed dues in respect ofSales Tax Excise Duty Service Tax and Income Tax that have not been deposited by theCompany are as follows:

Name of Statute Nature of Dues Amount (K in lacs) Period to which it relates Forum where the dispute is pending
Financial Year
State and Central Sales Tax Acts Sales Tax 1.98 2000-01 Jt. Commissioner of Sales Tax (Appeal) Worli Division Mumbai
The Central Excise Act 1944 Excise Duty 3.08 1998-99 CEGAT Commissioner Mumbai
6.56 2011-12 Commissioner (Appeal) Central Excise Vadodara II
The Finance Act Service Tax 1.741
1994 0.43 2008-09 CESTAT - Ahmedabad
5.23 2010-11 Commissioner (Appeal) Vadodara-II
2.89 2011-12 CESTAT - Ahmedabad
0.56 2012-13 Commissioner (Appeal) Vadodara-II
1.36 2013-14J
184.49 September 2009
to May 2014 CESTAT - Ahmedabad
34.62 June 2014 to
March 2015 Commissioner (Appeal) Vadodara-II
Assessment Year
Income Tax Act 1961 Income Tax 26.93 2006-07 High Court of Mumbai
Income Tax 16.55 2006-07 ITAT Mumbai.
Income Tax 16.381 2009-10 ITAT Mumbai
Income Tax 14.16J
Income Tax 9.37 2011-12 CIT (Appeals) Mumbai.
Income Tax 7.76 2012-13 CIT (Appeals) Mumbai.
Income Tax 4.69 2013-14 CIT (Appeals) Mumbai.

8. According to the records of the Company examined by us and on the basis ofinformation and explanations given to us the Company has not defaulted in repayment ofdues to banks during the year. The Company has not taken any loans or borrowings fromfinancial institution and government or by issue of debentures.

9. The term loans have been applied for the purpose for which they were obtained. Nomoneys are raised by way of initial public offer or further public offer (including debtinstruments).

10. On the basis of examination of books of accounts and other relevant records in thecourse of our audit and information and explanation given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during theyear.

11. According to information and explanation given to us and based on our examinationof the records of the Company the managerial remuneration has been paid/provided inaccordance with the requisite approval mandated by the provisions of Section 197 read withSchedule V of the Companies Act 2013.

12. The Company is not a Nidhi Company accordingly the requirement of Clause 3 (xii)of the Order is not applicable.

13. According to the records of the Company examined by us and on the basis ofinformation and explanations given the transaction with related parties during the yearare in compliance with provision of Section 177 of the Companies Act 2013 and requisitedisclosure has been made in the Financial Statements as required by the applicableaccounting standard. There are no transactions with related parties in terms of provisionsof Section 188 of the Companies Act 2013.

14. The Company has not raised any money by preferential allotment or private placementof Shares or by issue of fully or partly Convertible debentures during the year underreview accordingly Clause 3(xiv) of the Order is not applicable.

15. According to information and explanation given to us and based on our examinationof the records of the company the Company has not entered into non-cash transactions withdirectors or persons connected with them. Accordingly Clause 3(xv) of the Order is notapplicable.

16. The Company is not required to be registered under Section 45 - IA of the ReserveBank of India Act 1934.

For PARIKH & SHAH
Chartered Accountants
Firm's Registration No. 107528W
Place : Mumbai H.K. Desai
Date : 10th May 2016. Partner
Membership No.13719

Annexure to Independent Auditors' Report on the accounts for the year ended 31st March2016

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 ABCBearings Limited ("the Company") as of 31st March 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for ensuring that adequate internal financialcontrols systems is operational as stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India (‘ICAI'). These responsibilities include implementation ofpolicies and procedures adopted by the Company for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits 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 to theextent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) 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 31st 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 PARIKH & SHAH
Chartered Accountants
Firm's Registration No. 107528W
Place : Mumbai H.K. Desai
Date : 10th May 2016. Partner
Membership No.13719

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