Deccan Bearings Ltd.
|BSE: 505703||Sector: Engineering|
|NSE: N.A.||ISIN Code: INE498D01012|
|BSE 10:49 | 14 Feb||Deccan Bearings Ltd|
|NSE 05:30 | 01 Jan||Deccan Bearings Ltd|
|BSE: 505703||Sector: Engineering|
|NSE: N.A.||ISIN Code: INE498D01012|
|BSE 10:49 | 14 Feb||Deccan Bearings Ltd|
|NSE 05:30 | 01 Jan||Deccan Bearings Ltd|
TO THE MEMBERS OF DECCAN BEARINGS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of DECCAN BEARINGS LIMITED ('theCompany') which comprise the Balance Sheet as at March 31 2017 the Statement of Profitand Loss and the Cash Flow Statement for the year then ended and a summary of thesignificant 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 of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act as applicable. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of these financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.
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 there under and the Order under Section 143(11)of the Act.
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 theauditors' 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.
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 accounting principlesgenerally
accepted in India of the state of affairs of the Company as at March 31 2017 and itsprofit and
its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. 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 purposes of our audit.
(b) In our opinion proper books of account as required by law relating to preparationof the financial statements have been kept by the Company so far as it appears from ourexamination 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 maintained for thepurpose of preparation of these financial statements.
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act as applicable.
(e) On the basis of the written representations received from the Directors as on March31 2017 taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2017 from being appointed as a Director in terms of Section 164 (2) of theAct.
(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 A'. Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
(g) With respect to the other matters to be included in the Independent Auditors'Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:
i. The Company does not have any pending litigations which would impact its financialposition.
ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.
iii. There were no amounts which required to be transferred by the Company to theInvestor Education and Protection Fund.
iv. The Company has provided disclosures in its financial statements as to holding aswell as dealing in Specified Bank Notes during the period 8th November 2016 to30th December 2016 and the same in accordance with books of accountsmaintained by the company.
2. As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government in terms of Section 143(11) of the Act we give in 'Annexure B' astatement on the matters specified in paragraphs 3 and 4 of the Order.
Axinexure 'A' to the Independent Auditor's Report of even date on financial statementsof
Deccan Bearings Limited.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of
the Companies Act 2013 ('the Act')
1. We have audited the internal financial controls over financial reporting of DeccanBearings Limited ('the Company') as of 31 March 2017 in conjunction with our audit offinancial statements of the Company for the year ended on that date.
Management's Responsibility for the Internal Financial Controls
2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India (TCAI').
3. These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.
4. 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 Standards on Auditing deemed to be prescribed under Section 143(10) of the Actand the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting('the Guidance Note') to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe ICAI.
5. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting were established andmaintained and if such controls operated effectively in all material respects.
6. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing 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.
7. 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.
8. An entity'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. An entity'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 entity; (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 entity are being made only in accordance with authorisations ofmanagement and directors of the entity; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theentity's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting.
9. 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.
10. 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 31 March 2017 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 ICAI.
Annexure "B" to the Auditors' Report.
Referred to in Paragraph 2 under "Report on other Legal and Regulatoryrequirements in independent Auditor's report of even date on the accounts of DEECANBEARINGS LTD. for the year ended March 31 2017 1. a. The Company has maintained properrecords showing full particulars including quantitative details and situation of fixedassets.
b. The fixed assets have been physically verified by the management as per a phasedprogram of verification. In our opinion the frequency of verification is reasonablehaving regard to the size of the Company and the nature of its assets. The discrepanciesreported on such verification were not material and have been properly dealt with in thebooks of account.
c. According to the information and explanations given to us and the records examinedby us and based on the examination of the conveyance deed provided to us we report thatthe title deeds comprising all the immovable properties of land and buildings are held inthe name of the Company as at the balance sheet date.
2. As explained to us the inventories were physically verified during the year by theManagement at reasonable intervals and no material discrepancies were noticed on physicalverification.
3. The Company has not granted any loans secured or unsecured to companies firmsand Limited liability partnership or other parties covered in the register maintainedunder section 189 of the Act.
4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.
5. The Company has not accepted deposits during the year and does not have anyunclaimed deposits as at March 31 2017 and therefore the provisions of the clause 3 (v)of the Order are not applicable to the Company.
6 As informed to us the maintenance of cost records has not been prescribed by theCentral Government U/s 148(1) of the Company Act2013 in respect of the activitiescarried on by the Company.
7 a) According to the records of the Company the Company has been regular in
depositing undisputed statutory dues including Provident fund Investor Education andProtection Fund Employees State Insurance Income Tax Sales Tax Wealth Tax CustomsDuty Excise Duty Cess and other material statutory dues with the appropriateauthorities.
b) According to the information and explanation given to us no undisputed amountspayable in respect of Income Tax Sales Tax Wealth Tax Customs Duty Excise Duty Cesswere in arrears as at 31st March 2017 for a period of more than six monthsfrom the date they became payable.
C) There were no dues of duty of Customs duty of Excise and Cess which have not beendeposited as at March 312017 on account of dispute.
8. The Company has not defaulted in repayment of dues to any financial institutions orBank. There are no debentures issued by the company.
9. The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments). The term loans have been applied for the purpose forwhich they were raised.
10 To the best of our knowledge and according to the information and explanations givento us no fraud by the Company and no fraud on the Company by its officers or employeeshas been noticed or reported during the year.
11. In our opinion and according to the information and explanations given to us theCompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the Act.
12. The Company is not a Nidhi Company and hence reporting under clause 3(xii) of theOrder is not applicable.
13. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177and 188 of the Act where applicable for alltransactions with the related parties and the details of related party transactions havebeen disclosed in the financial statements as required by the applicable accountingstandards.
14. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause 3(xiv) of the Order is not applicable to the Company.
15. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its Directors and hence provisions of Section 192 of theAct are not applicable.
16. The Company is not required to be registered under Section 45-1 of the Reserve Bankof India Act 1934.