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Galaxy Bearings Ltd.

BSE: 526073 Sector: Engineering
NSE: N.A. ISIN Code: INE020S01012
BSE 00:00 | 14 Oct 339.95 3.95
(1.18%)
OPEN

349.40

HIGH

349.40

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321.05

NSE 05:30 | 01 Jan Galaxy Bearings Ltd
OPEN 349.40
PREVIOUS CLOSE 336.00
VOLUME 429
52-Week high 429.85
52-Week low 155.05
P/E 12.21
Mkt Cap.(Rs cr) 108
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 349.40
CLOSE 336.00
VOLUME 429
52-Week high 429.85
52-Week low 155.05
P/E 12.21
Mkt Cap.(Rs cr) 108
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Galaxy Bearings Ltd. (GALAXYBEARINGS) - Auditors Report

Company auditors report

To

The Members of Galaxy Bearings Limited Ahmedabad

Report on the Audit of the Standalone Financial Statements

Opinion

1. We have audited the accompanying standalone financial statements of GalaxyBearings Limited (the ‘Company') which comprise the Balance Sheet as at 31stMarch 2020 the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then ended anda summary of the significant accounting policies and other explanatory information.

2. In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 (the ‘Act') in the manner so requiredand give a true and fair view in conformity with the accounting principles generallyaccepted in India including Indian Accounting Standards (‘Ind AS') specified underSection 133 of the Act of the state of affairs of the Company as at 31stMarch 2020 and its profit (including other comprehensive income) its cash flows andthe changes in equity for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing specifiedunder Section 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatement section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (‘ICAI')together with the ethical requirements that are relevant to our audit of the StandaloneFinancial Statement 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.

Emphasis of Matter

4. As described in Note 43 to the standalone annual Standalone Financial Statementthe extent to which the COVID-

19 pandemic will impact the company's operations and financial performance is dependenton future developments which are highly uncertain. Our opinion is not modified in respectof the above matters.

Key Audit Matters

5. Key audit matters are those matters that in our professional judgment were ofmost significance in our audit of the standalone financial statements of the currentperiod. These matters were addressed in the context of our audit of the standalonefinancial statement as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

6. Key audit matter identified in our audit is on Recognition of Government Grant(Export Incentives) as follows:

Key audit matter Audit Approach
Recognition of Government Grant (Export Incentives)
The Company receives government grants (Export Incentives Benefits) as per the Merchandise Exports from India Scheme (MEIS) under Foreign Trade Policy of India (FTP 2015-20). We evaluated the accounting treatment of the government grant in terms of Ind AS -20 "Accounting for Government Grants". In respect of the same our audit procedures included the following:
During the current financial year the Company has recognised an amount Rs. 149.12 Lacs as other Operating Revenue. Company has received Rs. 209.77 Lacs during the year under the said scheme including income recognised in earlier years. • On a sample basis verified the claims lodged by the Company and its approval by the concerned Government Authorities;
We considered this to be a matter of most significance to our audit due to the: • In respect of claims pending for approval at the year end we verified the empirical evidence of the claims lodged vis--vis claims approved to satisfy as regards the reliable measurement of government grant receivable.
• Significant level of Management Judgement involved in respect of reliable measurement of government grants and its accrual;
• The quantum of the Export Incentives Income is 26.52 % of PAT.

Information other than the Standalone Financial Statement and Auditor's Report thereon

7. The Company's Board of Directors is responsible for the other information. Theother information comprises the information included in the Annual Report but does notinclude the Standalone Financial Statement and our auditor's report thereon. The AnnualReport is expected to be made available to us after the date of this auditor's report.

Our opinion on the Standalone Financial Statement does not cover the other informationand we do not express rance conclusion thereon.

In connection with our audit of the Standalone Financial Statement our responsibilityis to read the other information identified above when it becomes available and in doingso consider whether the other information is materially inconsistent with the StandaloneFinancial Statement or our knowledge obtained in the audit or otherwise appears to bematerially misstated.

When we read the Annual Report if we conclude that there is a material misstatementtherein we are required to communicate the matter to those charged with governance and asmay be legally advised.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements

8. The Company's Board of Directors is responsible for the matters stated inSection 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the state of affairs profit (including othercomprehensive income) changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Ind AS specifiedunder Section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of 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 the Standalone Financial Statement that give a true and fair view and arefree from material misstatement whether due to fraud or error.

9. In preparing the Standalone Financial Statement management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

10. Those Board of Directors are also responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statement

11.Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statement 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 Standards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these Standalone Financial Statement.

12. As part of an audit in accordance with Standards on Auditing we exerciseprofessional judgment and maintain professional scepticism throughout the audit. We also:

? Identify and assess the risks of material misstatement of the Standalone FinancialStatement 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 in order to designaudit procedures that are appropriate in the circumstances. Under Section 143(3) (i) ofthe Act we are also responsible for explaining our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

? Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

? Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone Financial Statement or if such disclosures are inadequate to modify ouropinion.

Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report.

However future events or conditions may cause the Company to cease to continue as agoing concern.

? Evaluate the overall presentation structure and content of the Standalone FinancialStatement including the disclosures and whether the Standalone Financial Statementrepresent the underlying transactions and events in a manner that achieves fairpresentation.

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

14. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

15. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the Standalone FinancialStatement of the current period and are therefore the key audit matters. We describe thesematters in our auditor's report unless law or regulation precludes public disclosure aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

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

17. Further to our comments in Annexure A as required by Section 143(3) of theAct 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 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 standalone financial statements dealt with by this report are in agreement withthe books of account;

d) in our opinion the aforesaid standalone financial statements comply with Ind ASspecified under Section 133 of the Act;

e) on the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on 31stMarch 2020 from being appointed as a director in terms of Section 164(2) of the Act

; f) we have also audited the internal financial controls over financial reporting(IFCoFR) of the Company as on 31st March 2020 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on that date and ourreport as per Annexure B expressed an unmodified opinion;

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 (as amended) in our opinion and to the bestof 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 standalone financial statements; (Refer Note 32 to the StandaloneFinancial Statement);

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses. iii. There were no amounts which wererequired to be transferred to the Investor Education and

Protection Fund by the Company.

For Samir M Shah & Associates
Chartered Accountants
[Firm Regd. No. 122377W]
Place: Ahmedabad
Date: 27.06.2020
(Samir M Shah)
Partner
[M. No. 111052]
(UDIN: 20111052AAAAIT4845)

ANNEXURE "A" TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 16 of "Report on Other Legal and RegulatoryRequirements" of our Report of even date to the Members of GALAXY BEARINGSLIMITED for the year ended 31st March 2020

1. In respect of Fixed Assets :

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets on the basis of available information.

(b) As per the information and explanations given to us the management at reasonableintervals during the year in accordance with a programme of physical verificationphysically verified the fixed assets and no material discrepancies were noticed on suchverification as compared to the available records.

(c) As explained to us the title deeds of all the immovable properties are held in thename of the company.

2. In respect of its Inventories :

(a) The inventory has been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable.

(b) The procedures of physical verification of inventories followed by the managementare reasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) On the basis of our examination of the records of inventory we are of opinion thatthe Company is maintaining proper records of inventory. The discrepancies noticed onverification between the physical stocks and books records were not material.

3. In respect of Loans and Advances granted during the year:

As regards the loans the company has not granted any loans secured or unsecuredduring the year under audit to the companies firms Limited Liability Partnership orother parties covered in the register maintained under section 189 of the companies Act 2013 and therefore the clauses (iii) (a) to (c) of the companies (Auditor's

Report) Order 2016 are not applicable.

4. Loans Investments and guarantees:

According to the information and explanation given to us the company had neither givenany loan guarantee or security nor made any investments during the year to the partiescovered under section 185 & 186 of the

Companies Act 2013. Therefore clauses (iv) of companies (Auditor's Report) Order 2016is not applicable.

5. During the year the company has not accepted any deposits from public and hencethe directives issued by the Reserve Bank of India and the provisions of sections 73 to 76or any other relevant provisions of the Companies

Act and the rules framed there under are not applicable to the company. Thereforeclauses (v) of companies

(Auditor's Report) Order 2016 is not applicable.

6. We have broadly reviewed the books of accounts relating to materials labour andother items of cost maintained by the company pursuant to the Rules made by the CentralGovernment for the maintenance of cost records as per the provisions of Companies (CostRecords and Audit) Rules 2014 and we are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have not however made a detailedexamination of the records with a view to determine whether they are accurate or complete.

7. In respect of Statutory Dues :

(a) According to the records of the Company the Company is by and large regular indepositing with appropriate authorities undisputed statutory dues including providentfund employees' state insurance income tax sales tax service tax duty of customsduty of excise value added tax & Goods and Service Tax cess and any other statutorydues with the appropriate authorities applicable to it.

(b) According to the information and explanations given to us there is no such arrearsin respect statutory dues were outstanding as at 31st March 2020 for a periodof more than six months from the date they became payable.

(c) According to the records of the company there is no dues of income tax sales taxwealth tax or service tax or duty of customs or duty of excise or value added tax whichhave not been deposited on account of dispute.

8. Based on our audit procedure and according to the information and explanationgiven to us we are of the opinion that the Company has not defaulted in repayment of duesto a Financial Institutions Banks or debenture holders.

9. According to the information and explanations given to us the company had notraised any money by way of public issue during the year. According to the information andexplanations given to us and on an overall examination of the balance sheet of thecompany in our opinion the term loans taken during the year were applied for the purposefor which they were obtained.

10. Based upon the audit procedures performed and information and explanationsgiven by the management we report that no fraud by the Company or any fraud on thecompany by it's officer or employees has been noticed or reported during the course of ouraudit.

11. In our opinion and according to the information and explanations given to usthe company had paid managerial remuneration which is in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V of The CompaniesAct 2013.

12. In our opinion and according to the information and explanations given to usthe provisions of special statute applicable to chit funds and nidhi / mutual benefitfunds / societies are not applicable to the company. Hence clause (xii) of the Company's(Auditor's Report) Order 2016 is not applicable.

13. In our opinion and according to the information and explanations given to usthe transactions entered by the company with related parties are in compliance with theprovisions of section 177 and 188 of The Companies Act 2013 and details thereof areproperly disclosed in the Standalone Financial Statement. 14. In our opinion andaccording to the information and explanation given to us no preferential allotment orprivate placement of shares or fully or partly convertible debentures made during theyear under review and hence clause (xiv) of the Company's (Auditor's Report) Order 2016is not applicable.

15. The company had not entered in to any non-cash transactions with the directorsor persons connected with him during the year and hence clause (xv) of Company's(Auditor's Report) Order 2016 is not applicable.

16. In our opinion and according to the information and explanation given to us thecompany is not registered under section 45-IA of Reserve Bank of India Act 1934 henceclause (xvi) of Company's (Auditor's Report) Order 2016 is not applicable.

For Samir M Shah & Associates
Chartered Accountants
[Firm Regd. No. 122377W]
Place: Ahmedabad
Date: 27.06.2020
(Samir M Shah)
Partner
[M. No. 111052]
(UDIN: 20111052AAAAIT4845)

ANNEXURE "B" TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 17(f) of "Report on Other Legal and RegulatoryRequirements" of our Report of even date to the Members of GALAXY BEARINGLIMITED for the year ended 31st March 2020.

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 GALAXYBEARING LIMITED as of 31st March 2020 in conjunction with our auditof the standalone financial 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 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 Auditingissued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls both applicableto an audit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. 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 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 judgment including the assessment of the risks ofmaterial misstatement of the Standalone Financial Statement whether due to fraud orerror.

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 Standalone Financial Statement 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 StandaloneFinancial Statement in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the StandaloneFinancial Statement.

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 2020based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Samir M Shah & Associates
Chartered Accountants
[Firm Regd. No. 122377W]
Place: Ahmedabad
Date: 27.06.2020
(Samir M Shah)
Partner
[M. No. 111052]
(UDIN: 20111052AAAAIT4845)

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