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ABC Bearings Ltd.

BSE: 505665 Sector: Engineering
NSE: ANTFRIBEAR ISIN Code: INE779A01011
BSE 15:40 | 18 Jan 523.55 -14.45
(-2.69%)
OPEN

538.00

HIGH

550.00

LOW

522.05

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 538.00
PREVIOUS CLOSE 538.00
VOLUME 3103
52-Week high 568.90
52-Week low 152.10
P/E 67.55
Mkt Cap.(Rs cr) 605
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 538.00
CLOSE 538.00
VOLUME 3103
52-Week high 568.90
52-Week low 152.10
P/E 67.55
Mkt Cap.(Rs cr) 605
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

ABC Bearings Ltd. (ANTFRIBEAR) - Auditors Report

Company auditors report

To

The Members of

ABC Bearings Limited

Report on the Financial Statements

of We have audited the accompanying financial ABC Bearings Limited ("theCompany") which comprise the Balance Sheet as at 31st March 2017 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 positionfinancialperformance 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 also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgement and estimates that are reasonable and prudent; and design; implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true materialmisstatement whether due to fraud or error.

Auditor’s Responsibility

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

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

We conducted our audit in 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 ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the financial statements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe 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 2017 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 ("theOrder") issued by the Central Government of India in terms of Sub-Section (11) ofSection 143 of the Act we give in the "Annexure I" a statement on thematters 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 andobtained all the information and explanations which to the best of our knowledge andbelief 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 Sheetthe Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report arein agreement with the books of account. d. In our opinion the aforesaid financialstatements comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014 . e. On the basis of the writtenrepresentations received from the directors as on 31st March 2017 taken on record by theBoard of Directors none of the directors is disqualified as on 31st March 2017 frombeing appointed as a director in terms of Section 164 (2) of the Act. f. With respect tothe adequacy of the internal financial controls over financial reporting of the Companyand the operating effectiveness of such controls refer to our separate report in "AnnexureII"; and g. With respect to the other matters to be included in theAuditor’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 theexplanations given to us : i) The Company has disclosed the impact of pending litigationson its financial position in the financial statements (refer note 26 (a) to the financialstatements). ii) The Company did not have any long term contracts including derivativecontracts for which there were any material foreseeable losses. iii) There has been nodelay in transferring amounts required to be transferred to the Investor Education andProtection Fund by the Company. iv) The Company has provided requisite disclosures in itsfinancial statements for holding as well as dealing in specified bank notes during theperiod of 08.11.2016 to 30.12.2016 and the same are in accordance with the books ofaccounts maintained by the Company (refer note 30 to the financial statements).

For PARIKH & SHAH
Chartered Accountants
Firm’s Registration No. 107528W
Place : Mumbai H.K. Desai
Date : 24th May 2017 Partner
Membership No.13719

ANNEXURE - I ABC Bearings Limited

ANNEXURE TO INDEPENDENT AUDITORS’ REPORT ON THE ACCOUNTS FOR THE YEAR ENDED 31STMARCH 2017

1. a) The Company has maintained proper records showing full particularsincluding quantitative 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 two years. Accordingly the physicalverification of part of the fixed by the Management during the year and no materialdiscrepancies 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 discrepanciesnoticed verificationbetween physical stocks and physical booksrecords were not material in relation to the operations of the company and have beenproperly dealt with in the books of account.

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 provisions of Section 73to 76 or any other relevant provisions of the Companies Act 2013 and the rules framedthere under.

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 account 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 31st March 2017 for a period ofmore than 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 Income Tax and Provident Fund that have not beendeposited by the Company are as follows:

Name of Statute Nature of Dues Amount (Rs in lacs) Period to which it relates Forum where the dispute is pending
Financial Year
State and Central Sales Tax Sales Tax 1.98 2000-01 Jt. Commissioner of Sales Tax (Appeal) Worli
Acts Division Mumbai.
The Employees Provident Funds and Miscellaneous provisions Act1952 Provident Fund 13.04 July 1999 to March 2016 Employees Provident Fund Appellate Tribunal New Delhi.
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 Act1994 Service Tax 1.74
2008-09 CESTAT - Ahmedabad.
0.43
5.23 2010-11 Commissioner (Appeal)Vadodara-II.
2.89 2011-12 CESTAT Ahmedabad.
0.56 2012-13 Commissioner (Appeal)Vadodara-II.
1.36 2013-14 Commissioner (Appeal)Vadodara-II.
184.49 September 2009 to May 2014 CESTAT - Ahmedabad.
34.62 June 2014 to March 2015 CESTAT - Ahmedabad.
25.70 April 2015 to January 2016 Assessment Year Commissioner (Appeal)Vadodara-II Surat.
Income Tax Act1961 Income Tax 26.93 2006-07 High Court of Mumbai.
16.55 2006-07 ITAT Mumbai.
14.16 2009-10 ITAT Mumbai.
9.37 2011-12 ITAT Mumbai.
3.97 2012-13 ITAT Mumbai.
4.69 2013-14 CIT(Appeals) Mumbai.
9.61 2014-15 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 debenture.

9. The term loan 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 recordsin the course of our audit and information and explanation given to us no fraud by theCompany or on the Company by its officers or employees has been reported during the year.

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 giventhe transaction with related parties during the yearare in compliance with provisions of Section 177 and 188 of the Companies Act 2013 whereapplicable and requisite disclosure has been made in the Financial Statements as requiredby the applicable Accounting Standard.

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 him. 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
H.K. Desai
Place : Mumbai Partner
Date : 24th May 2017 Membership No.13719

ANNEXURE - II ABC Bearings Limited

Annexure to Independent Auditors’ Report on the accounts for the year ended 31stMarch 2017

Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section143 of the Companies Act 2013 ("the Act")

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 internalfinancial controls over financial reporting of ABC Bearings Limited ("theCompany") as of 31st March 2017 in conjunction with our audit of the standalonefinancial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for ensuring that adequate internalfinancial controls systems is operational as stated in the Guidance Note on Audit ofInternal Financial 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 safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI 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 obtainaudit evidence about the adequacy of the internal financial controls system over financialreporting and their operating effectiveness. Our audit of internal financial controls overfinancial reporting included assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor’s judgmentincluding the assessment of the risks of material misstatement of the financialstatements 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 financial projections of any evaluation of the internal financial the internalfinancial control over financial reporting may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

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 2017 based on theinternal control over financial reporting criteria established by the Company consideringcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India.

For PARIKH & SHAH
Chartered Accountants
Firm’s Registration No. 107528W
Place : Mumbai H.K. Desai
Date : 24th May 2017 Partner
Membership No.13719