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Benara Bearings & Pistons Ltd.

BSE: 541178 Sector: Engineering
NSE: N.A. ISIN Code: INE495Z01011
BSE 00:00 | 26 Mar 27.00 -3.00
(-10.00%)
OPEN

27.20

HIGH

28.15

LOW

27.00

NSE 05:30 | 01 Jan Benara Bearings & Pistons Ltd
OPEN 27.20
PREVIOUS CLOSE 30.00
VOLUME 42000
52-Week high 68.50
52-Week low 21.80
P/E 13.43
Mkt Cap.(Rs cr) 48
Buy Price 26.15
Buy Qty 2000.00
Sell Price 30.90
Sell Qty 2000.00
OPEN 27.20
CLOSE 30.00
VOLUME 42000
52-Week high 68.50
52-Week low 21.80
P/E 13.43
Mkt Cap.(Rs cr) 48
Buy Price 26.15
Buy Qty 2000.00
Sell Price 30.90
Sell Qty 2000.00

Benara Bearings & Pistons Ltd. (BENARABEARING) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

BENARA BEARINGS & PISTONS LIMITED

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of BENARA BEARINGS & PISTONSLIMITED("the Company") which comprise the Balance Sheet as at March 31 2018the Profit and Loss Statement and the Cash Flow Statement for the year then ended and asummary of the significant 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 Accounting Standards prescribed underSection 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

AUDITORS' 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 and the Order under section 143 (11)of the Act.

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the 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 Board of Directors as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence obtained by us 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; a) in the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2018; b) in the case of the Statement of Profitand Loss of the profit for the year ended on that date; and c) in the case of the CashFlow Statement of the cash flows for the year ended on that date.

OTHER MATTERS

The reports should be read together with the Notes to the financial statements andattention to following matters be given:

a) Note no. 25 (l) in notes to the financial statements which describe the uncertaintyrelated to the outcome of the pendency of appeal filed by the Company

Our opinion is not modified in respect of these matters.

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 have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Profit and Loss Statement and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the AccountingStandards prescribed under section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 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 A".

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 its financial statements;

ii. The Company does not have any long-term contracts including derivatives contractsfor which any provision is required;

iii. The Company is not required to transfer amounts to the Investor Education andProtection Fund.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

In terms of our report of even date attached.

For Agrawal Jain & Gupta

Chartered Accountants

F R N - 013538C

CA NiteshAgrawal

(Partner)

M R N : 406155

Date : 29 MAY 2018

Place : Agra

Annexure "A" to the Independent Auditors' Report on the Standalone FinancialStatements of Benara Bearings & Pistons Limited

(Referred to in paragraph 1 (f) under ‘Report on Other Legal and RegulatoryRequirements' of our report of even date)

REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (i) OFSUBSECTION 3 OF SECTION 143 OF THE COMPANIES ACT 2013 ("THE ACT")

We have audited the internal financial controls over financial reporting of BenaraBearings & Pistons Limited ("the listed Company") as of March 31 2018 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding 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 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 and the Standards on Auditing prescribed under Section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols. 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 was established andmaintained and if such controls operated effectively 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 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 judgement 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'sinternal financial control over financial reporting is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingincludes those policies and procedures that (1) pertain to the maintenance of recordsthat 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 and paymentsof the company are being made only in accordance with authorisations of management anddirectors of the company; and (3) provide reasonable assurance regarding prevention ortimely detection of unauthorised acquisition use or disposition of the company's assetsthat 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2018 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note.

In terms of our report of even date attached.

For Agrawal Jain & Gupta

Chartered Accountants

F R N - 013538C

CA Nitesh Agrawal

(Partner)

M R N : 406155

Date : 29May 2018

Place : Agra

Annexure "B" to the Independent Auditors' Report on the Standalone FinancialStatements of Benara Bearings & Pistons Limited

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our Report of even date) i. In respect of its fixed assets:

a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.
b) As explained to us all the fixed assets have been physically verified by the management in a phased periodical manner which in our opinion is reasonable having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification.
c) As per the information and explanations provided to us title deeds of immovable properties are in the name of the Company.
ii. In our opinion the inventories have been physically verified during the year by the Management at reasonable intervals and as explained to us no material discrepancies were noticed on physical verification.
iii. The Company has granted loans to following companies covered in the Register maintained under section 189 of the Act. Further the terms and conditions of the grant of such loan is not prejudicial to the company's interest. The loan is repayable on demand.
Name of the company Relation Loan & Advances as on 31st March 2018 Loan &Advances as on 31st March 2017
Benara solar Private company Wholly Owned Subsidiary 38065873 Nil

iv. 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 Companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities.

v. According to the information and explanations given to us the Company has notaccepted any deposit from the public. Therefore the provisions of Clause (v) of paragraph3 of the Order are not applicable to the Company.

vi. As informed to us the maintenance of Cost Records as specified by the CentralGovernment under sub-section (1) of Section 148 of the Actis not applicable.

vii. In respect of statutory dues: a. According to the records of the Companyundisputed statutory dues including Provident

Fund Employees' State Insurance Income Tax Sales Tax Service Tax Customs DutyExcise Duty Value Added Tax Cess and other material statutory dues have been generallyregularly deposited with the appropriate authorities. According to the information andexplanations given to us no undisputed amounts payable in respect of the aforesaid dueswere outstanding as at March 31 2018 for a period of more than six months from the dateof becoming payable.

b. Details of dues of Income Tax Sales Tax Service Tax Customs Duty Excise Duty andValue

Added Tax which have not been deposited as on March 31 2018on account of disputes aregiven below:

Name of the Statute Period to which amount relates Amount of Dues (Rs.) Forum where dispute is pending
Income Tax Act 1961 A.Y 2010-11 193210/- Deputy Commissioner CIT-1(A)
A.Y 2014-15 3204340/- Deputy Commissioner CIT-1(A)
Tax deduction at source F.Y. 2017-18 621294/- Income Tax Officer –TDS-1
F.Y.2016-17 52653/- Income Tax Officer –TDS-1
F.Y.2015-16 192312/- Income Tax Officer –TDS-1
F.Y. 2014-15 13890/- Income Tax Officer –TDS-1
F.Y 2013-14 213853/- Income Tax Officer –TDS-1
Prior to F.Y. 2012- 13 1275786/- Income Tax Officer –TDS-1

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of loans or borrowings to financialinstitutions banks and Government and dues to debenture holders.

ix. In our opinion and according to the information and explanations given to usmonies raised by way of debt instruments and the term loans during the year have beenapplied by the Company for the purposes for which they were raised.

x. In our opinion and according to the information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the year.

xi. In our opinion and according to the information and explanations given to us theCompany has paid

/ provided managerial remuneration in accordance with the requisite approvals mandatedby the provisions of section 197 read with Schedule V to the Companies Act 2013.

xii. The Company is not a Nidhi Company and hence reporting under clause (xii) ofParagraph 3 of the

Order is not applicable.

xiii. In our opinion and according to the information and explanations given to us theCompany's transactions with its related party are in compliance with Sections 177 and 188of the Companies Act 2013 where applicable and details of related party transactionshave been disclosed in the financial statements etc. as required by the applicableaccounting standards. xiv. During the year the Company has not made preferentialallotment/private placement of equity shares and the requirement of Section 42 of theCompanies Act 2013 have been complied with and the amount raised have been used for thepurposes for which the funds were raised.

xv. 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 its directors or personsconnected with him and hence reporting under clause (xv) of Paragraph 3 of the Order isnot applicable to the Company.

xvi. In our opinion and according to information and explanations provided to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

In terms of our report of even date attached.

For Agrawal Jain & Gupta

Chartered Accountants

F R N - 013538C

CA Nitesh Agrawal

(Partner)

M R N : 406155

Date :29 May 2018

Place :Agra