You are here » Home » Companies » Company Overview » Benara Bearings & Pistons Ltd

Benara Bearings & Pistons Ltd.

BSE: 541178 Sector: Engineering
NSE: N.A. ISIN Code: INE495Z01011
BSE 00:00 | 11 May 12.50 0
(0.00%)
OPEN

12.60

HIGH

12.60

LOW

12.50

NSE 05:30 | 01 Jan Benara Bearings & Pistons Ltd
OPEN 12.60
PREVIOUS CLOSE 12.50
VOLUME 4000
52-Week high 16.89
52-Week low 8.05
P/E
Mkt Cap.(Rs cr) 22
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 12.60
CLOSE 12.50
VOLUME 4000
52-Week high 16.89
52-Week low 8.05
P/E
Mkt Cap.(Rs cr) 22
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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

Company auditors report

To

The Members

Benara Bearing & Piston Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Benara Bearing & PistonLimited ("the Company") which comprise the Balance Sheet as at March 31st2021 Profit and Loss statement for the year ended and notes to the financial statements.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 ('Act') in the manner so required and give a true and fair viewin conformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2021 its Profits for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the standards on auditingspecified under section 143 (10) of the Companies Act 2013. Our responsibilities underthose Standards are further described in the auditor's responsibilities for the audit ofthe financial statements section of our report. We are independent of the Company inaccordance with the code of ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and thecode of ethics.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professionaljudgement were of most significance in our audit of the financial statements of thecurrent period. Those matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

We have reviewed the financial statements of the company and in ouropinion there are no matters to be communicated as Key Audit matters.

We draw attention to Note 11 to 14 of the financial results.

(1) Due to the financial constraints there is delay in payment to Bank/financial institution. However the company has made applied for restructure of its loanaccounts.

(2) During the year Non-moving / slow moving Inventory of Rs. 912.16Lacs has been reclassified under other non-current assets. Detailed analysis of actualrecoverability from Inventories to normal operating cycle of the company must bequantified and necessary provision need to be made.

(3) During the year Sundry debtor amounting to Rs.3615.48 lacsoutstanding for more than one year has been classified as other non-current assets. Themanagement has considered these debtors as good and hence no provision has been made

(4) Company has transferred its Sundry Creditor of Worth Rs. 1815.53/-Lakhs to Other Non-Current Labilities which is pending for payable for the more than 1years. Management of company has not made any provision for these Creditor on the basis ofPrudence concepts. It will be payable in future period.

(5) Sundry Debtors/Creditors outstanding for more than 2 years has beenwritten off /written back. Detailed analysis of actual recoverability/payable which isoverdue according to normal operating cycle of the company must be quantified andnecessary provision need to be made.

(6) Unsecured Loans & Advances are having long outstanding havebeen considered good for recovery/payable by the management but very less recovery hasbeen made during the year. Also are subject to confirmation and reconciliation. Thenon-creation of provision for debts and interest has resulted into under/over statement ofbalances and loss.

(7) The outstanding balances of Sundry Debtors Sundry Creditors andloans & advances are subject of confirmation and reconciliation/ consequentialadjustment if any.

(8) The Company's operations like any other suffered on account ofCOVID-19 pandemic including lockdown imposed by the Government. There have been challengesin getting the financial support from Company's working capital lenders under varioussupport measures announced by the Government. The Company has not been able to fill thecash flow gap through additional equity resources posing threat to its smooth businessoperations and debt servicing obligations. The Company is continuing to make earnestefforts to smoothen the cash flow bumps causing supply chain disruptions by either scalingdown the business volumes or arranging the increased requirement of financial resourcesfrom its banks or other lenders. The management feels that the situation is controllablehence the going concern concept on the basis of which the financial statements are drawnremains valid.

Due to supply chain disruption factory closure during lockdowns andlater low scale operations due to COVID- 19 restrictions which resulted in challenges inmeeting commitments to customers for the supplies and after sales services the paymentsfrom the customers have been delayed with occasional counter claims. The Company believesthat as effect of the pandemic on the overall economy and business

(9) No impairment loss provision is considered necessary forCompany's investment in its subsidiaries as these are long terms strategicinvestments.

Information other than the financial statements and auditors'report thereon

The Company's board of directors is responsible for the preparation ofthe other information. The other information comprises the information included in theBoard's Report including Annexures to Board's Report but does not include the financialstatements and our auditor's report thereon.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Responsibilities of Management for the Financial Statements

The Company's board of directors are responsible for the matters statedin section 134 (5) of the Act with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the accounting standards specified under section 133 of theAct. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements the management is responsiblefor assessing the company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless the management either intends to liquidate the company or to ceaseoperations or has no realistic alternative but to do so.

The management is responsible for overseeing the company's financialreporting process.

Auditor's Responsibilities for the Audit of the FinancialStatements

Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinionon whether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide the management with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2016("the Order") issued by the Central Government of India in terms of Section143(11) of the Act we give in "Annexure A" a statement on the matters specifiedin paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143 (3) of the Act we report that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet and the Statement of Profit and Loss dealt with bythis Report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of the written representations received from thedirectors as on 31st March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2021 from being appointed as a director interms of Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls withreference to financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B"

g) With respect to the matter to be included in the Auditors'Report under Section 197(16) of the Act:

In our opinion and according to the information and explanations givento us the remuneration paid by the Company to its directors during the current year is inaccordance with the provisions of Section 197 of the Act. The remuneration paid to anydirector is not in excess of the limits laid down under Section 197 of the Act. TheMinistry of Corporate Affairs has not prescribed other details under Section 197(16) whichare required to be commented upon by us.

h) 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 litigations as at 31March 2021 on its financial position in its standalone financial statements - ReferNote-25(i) to the standalone financial statements

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company

For AGRAWAL JAIN & GUPTA
Chartered Accountants
Firm Registration No. 0013538C
UDIN: 21409759AAAABL7659
CA Narayan Swami
Partner
Membership No. 409759
Agra: 30 June 2020

Annexure "B"

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 andRegulatory Requirements' of our report of even date)

REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTINGUNDER CLAUSE (i) OF SUBSECTION 3 OF SECTION 143 OF THE COMPANIES ACT 2013 ("THEACT")

We have audited the internal financial controls over financialreporting of Benara Bearings & Pistons Limited ("the listed Company") as ofMarch 31 2021 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note and the Standards on Auditing prescribed under Section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally 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 payments 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 FINANCIALREPORTING

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion to the best of our information and according to theexplanations given to us 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 March 31 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components 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
UDIN: : 21409759AAAABL7659
CA Narayan Swami
(Partner)
M R N : 409759
Date : 30th June 2021
Place : Agra

Annexure "A"

to the Independent Auditors' Report on the Standalone FinancialStatements of BenaraBearings & Pistons Limited

(Referred to in paragraph 2 under 'Report on Other Legal andRegulatory Requirements' section of our Report of even date)

i. In respect of its fixed assets:

a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets on the basis of availableinformation.

b) As explained to us all the fixed assets have been physicallyverified by the management in a phased periodical manner which in our opinion isreasonable having regard to the size of the Company and nature of its assets. No materialdiscrepancies were noticed on such physical verification.

c) As per the information and explanations provided to us title deedsof immovable properties are in the name of the Company.

ii. In our opinion the inventories have been physically verifiedduring the year by the Management at reasonable intervals and as explained to us nomaterial discrepancies were noticed on physical verification.

iii. The Company has granted loans to following companies covered inthe Register maintained under section 189 of the Act. Further the terms and conditions ofthe grant of such loan is not prejudicial to the company's interest. The loan is repayableon demand.

S.No. Name of the company Relation Loan & Advances as on 31st March 2021 Loan &Advances as on 31st March 2020
1. Benara solar Private company Wholly Owned Subsidiary 53673734 53231734

iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 in respect of grant of loans making investments and providingguarantees and securities.

v. According to the information and explanations given to us theCompany has not accepted any deposit from the public. Therefore the provisions of Clause(v) of paragraph 3 of the Order are not applicable to the Company.

vi. As informed to us the maintenance of Cost Records as specified bythe Central Government 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 Company undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Sales Tax Service TaxCustoms Duty Excise Duty Value Added Tax Cess and other material statutory dues havebeen generally regularly deposited with the appropriate authorities. According to theinformation and explanations given to us no undisputed amounts payable in respect of theaforesaid dues were outstanding as at March 31 2020 for a period of more than six monthsfrom the date of becoming payable.

b. Details of dues of Income Tax Sales Tax Service Tax Customs DutyExcise Duty and Value Added Tax which have not been deposited as on March 31 2019 onaccount of disputes are given 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)
A.Y. 2017-18 2434730/- Deputy Commissioner CIT-1(A)
A.Y. 2018-19 606930/- CPC
Tax deduction at source F.Y 2019-20 831194 Income Tax Officer -TDS-1
F.Y. 17-18 3689/- Income Tax Officer -TDS-1
F.Y.2016-17 58316/- Income Tax Officer -TDS-1
F.Y.2015-16 1970/- Income Tax Officer -TDS-1
Prior to F.Y. 2012-13 980336/- Income Tax Officer -TDS-1
Sales tax Demand 3115899/- Pending before Appeal
Central excise Act 1944 3036098/- Pending before Appeal

viii. In our opinion and according to the information and explanationsgiven to us the Company has been defaulted in the repayment of various loans orborrowings to financial institutions banks and Government and dues to debenture holders.Details of loan defaulted as below (a) Bank Overdraft and cash Credit

Sr. No. Name of Bank/ Institution Closing Balance
1 AXIS LOAN NO.920060049786438 ECGL 38577739/-
2 Axis Loan No.920060050247027 FITL 5772516/-
3 Bandhan CC - 68190000001841 99992982/-
4 CC AXIS-911030054073238 205707266/-
Total 350050503/-
(b) Secured loans from Banks and Financial institutions
Sr. No. Name of Bank/ Institution Closing Balance
1 ADITYA BIRLA HOUSING FINANCE LTD. 3182121
2 AXIS BANK (M.BEZN V CLASS) 120858 7184004
3 Bandhan Bank Lap**68200000000260 (LAP) 18017623
4 Bandhan Bank Loan A/c 68200000002287 30150813
5 Bandhan Term Loan 68190000001501 (Machinery) 26635778
6 HDFC BANK - CRETA - 20759 977497
7 HDFC BANK - JAGUAR NEW 110160 4703332
8 HDFC BANK - KIA SALTOS-19922 1279958
9 HDFC BANK - Nissan Terrano 24080 465762
10 HDFC BANK - TEMPO - 9000 348488
11 ICICI BANK - CAR INNOVA - 34569 1274117
12 ICICI BANK - FORTUNER ** 65960 3232756
13 ICICI BANK - INNOVA 2.4G - 31065 1156420
14 ICICI BANK - INNOVA- 40008 965834
15 ICICI BANK - LOAN INNOVA**31170 1432868
16 ICICI BANK - MARUTI CIAZ - 17218 773929
17 ICICI BANK - Mercedes 87101 3784373
18 ICICI (TOPUP CAR LOAN) 12519 520172
19 ICICI (TOPUP CAR LOAN) 17079 709686
20 ICICI (TOPUP CAR LOAN) 18731 778337
21 ICICI (TOPUP CAR LOAN) 3328 138255
22 ICICI (TOPUP CAR LOAN) 51051 2121324
23 ICICI (TOPUP CAR LOAN) 55844 2320504
24 MAHINDRA & MAHINDRA FIN. (M. BALENO) 11330 479216
Total 112633171

(c) Un-Secured loans from Banks and Financial institutions

Sr. No. Name of Bank/ Institution Closing Balance
1 ADITYA BIRLA FINANCE (Business Loan)- 146418 3622630
2 Bajaj Finance Ltd-105309 201236
3 DEUTSCHE BANK - 177022 876486
4 Edelweiss Retail Finance- 197307 394626
5 HDFC BUSINESS LOAN- 175785 675000
6 ICICI BUSINESS LOAN - 116729 1941237
7 INDIA BULL FINANCE LTD.- 182118 1018270
8 INDIA INFOLINE FINANCE LIMITED - 180762 2261465
9 MAGMA FINANCE CORP LTD -124984 37984
10 PINNACLE CAPITAL SOLUTIONS PVT LTD- 126022 1934688
Total 13173394

ix. In our opinion and according to the information and explanationsgiven to us monies raised by way of debt instruments and the term loans during the yearhave been applied by the Company for the purposes for which they were raised.

x. In our opinion and according to the information and explanationsgiven to us no material fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year.

xi. In our opinion and according to the information and explanationsgiven to us the Company has paid / provided managerial remuneration in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V tothe Companies Act 2013.

xii. The Company is not a Nidhi Company and hence reporting underclause (xii) of Paragraph 3 of the Order is not applicable.

xiii. In our opinion and according to the information and explanationsgiven to us the Company's transactions with its related party are in compliance withSections 177 and 188 of the Companies Act 2013 where applicable and details of relatedparty transactions have been disclosed in the financial statements etc. as required by theapplicable accounting 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 explanationsgiven to us during the year the Company has not entered into any non-cash transactionswith its directors or persons connected with him and hence reporting under clause (xv) ofParagraph 3 of the Order is not applicable to the Company.

xvi. In our opinion and according to information and explanationsprovided to us the Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934.

In terms of our report of even date attached.
For Agrawal Jain & Gupta
Chartered Accountants
F R N - 013538C
UDIN: : 21409759AAAABL7659
CA Narayan Swami
(Partner)
M R N :409759
Date :30th June 2021
Place :Agra

.