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Menon Bearings Ltd.

BSE: 523828 Sector: Engineering
NSE: MENONBE ISIN Code: INE071D01033
BSE 09:19 | 17 Dec 78.95 -0.55
(-0.69%)
OPEN

79.45

HIGH

79.50

LOW

78.80

NSE 09:07 | 17 Dec 78.70 0
(0.00%)
OPEN

78.70

HIGH

78.70

LOW

78.70

OPEN 79.45
PREVIOUS CLOSE 79.50
VOLUME 4180
52-Week high 127.05
52-Week low 70.00
P/E 17.62
Mkt Cap.(Rs cr) 442
Buy Price 77.50
Buy Qty 299.00
Sell Price 79.00
Sell Qty 57.00
OPEN 79.45
CLOSE 79.50
VOLUME 4180
52-Week high 127.05
52-Week low 70.00
P/E 17.62
Mkt Cap.(Rs cr) 442
Buy Price 77.50
Buy Qty 299.00
Sell Price 79.00
Sell Qty 57.00

Menon Bearings Ltd. (MENONBE) - Auditors Report

Company auditors report

TO

THE MEMBERSOF MENON BEARINGS LIMITED

Report on the Financial Statements

We have audited the accompanying Ind AS financial statements of MENON BEARINGS LIMITED("the company")which comprise the Balance Sheet as at 31st March2018 the Statement of Profit and Loss (including Other Comprehensive Income) the CashFlow Statement and the Statement of Changes in Equity for the year then ended and asummary of 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 Ind AS financial statements that give a true and fair view of the sate of affairs(financial position) profit & loss (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under Section 133 of the Act read with Rule 4 of theCompanies (Indian Accounting Standards) Rules 2015.

This responsibility also includes the maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding of the assets of the Company andfor preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the Ind AS financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the Ind AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give true and fair view in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on whether the Company has in place an adequate internalfinancial control system over financial reporting and the operating effectiveness of suchcontrols. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of the accounting estimates made by Company's Directors aswell as evaluating the overall presentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS;

a) of the State of affairs (financial position) of the Company as at 31stMarch 2018;

b) of the Profit (financial performance including Other Comprehensive Income) for theyear ended on that date;

c) of the Cash Flows for the year ended on that date; and

d) of the Changes in Equity for the year ended on that date Report on other Legal andRegulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Sub -section (11) of Section 143 (3)of the Companies Act 2013 we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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 appears from our examination of those books

c) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account

d) In our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 4 of the Companies(Indian Accounting Standards) Rules 2015.

e) On the basis of 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 interms of Section 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 B"

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) Rule 2014 in our opinionand to best of our information and according to the explanations given to us :

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 contracts ofwhich there were any material foreseeable losses.

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

For M/S ARNA & Associates.
Chartered Accountants
Place: Kolhapur Rahulprasad Agnihotri Partner
Date : 03/05/2018 Membership No : 111576 FRN : 122293W

Annexure A to Independent Auditor's Report

The Annexure referred to in our Report of even date to the members of Menon BearingsLimited on the accounts of the Company for the year ended 31st March 2018.

(I) (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) Fixed assets are physically verified by the management in accordance with a regularprogramme at reasonable intervals. In our opinion the interval is reasonable having regardto the size of the Company and the nature of its assets. No material discrepancies werenoticed on such verification;

(c) The title deeds of immovable properties of the company are held in the name of theCompany based on the confirmation received from the Company.

(ii) (a) As explained to us physical verification of inventory has been conducted atreasonable intervals by the management;

(b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.

(c) The company is generally maintaining proper records of inventory. No materialdiscrepancies were noticed on physical verification of stocks by the management ascompared to book records.

(iii) The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection189 of the Companies Act.

(iv) The Company has not granted any loans made any investments or provided anyguarantees and securities covered u/s. 185 and 186 of the Companies Act 2013.

(v) The Company has not accepted any deposits covered under the directives issued bythe Reserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act 2013and the rules framed there under.

(vi) As explained to us maintenance of cost records has been specified by the CentralGovernment under sub-section (l) of section 148 of the Companies Act 2013 we are of theopinion that prima facie such accounts and records have been made and maintained. Howeverwe have not made a detailed examination of the records with a view to determine whetherthey are accurate and complete.

(vii) (a) According to the records the company is regular in depositing undisputedstatutory dues including provident fund employees' state insurance income-tax SalesTax Service Tax GST duty of customs duty of Excise Value Added Tax Cess and anyother statutory dues with the appropriate authorities. There were no outstanding statutorydues as at the last day of the financial year concerned for a period of more than sixmonths from the date they became payable;

(b) As explained to us there are no dues of income tax Sales Tax Service Tax GSTduty of customs Duty of Excise Value Added Tax Cess or duty of customs which have notbeen deposited on account of any dispute.

(viii) The Company has not defaulted in repayment of dues to a financial institution orbank or Government or dues to debenture holders.

(ix) During the period under review the Company has not raised money by way of initialpublic offer or further public offer (including debt instruments) and had applied the termloans for the purpose for which the loans were raised.

(x) No fraud on or by the company has been noticed or reported during the year;

(xi) The managerial remuneration has been paid in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct 2013;

(xii) Since the Company is not a Nidhi Company the Nidhi Rules 2014 are notapplicable.

(xiii) All transactions with the related parties are in compliance with sections 177and 188 of the Companies Act 2013 and details of the same have been disclosed in theFinancial Statements as required by the applicable accounting standards;

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review;

(xv) As explained to us the Company has not entered into any non-cash transactionswith directors or persons connected with him

(xvi) The Company is not required to be registered under section 45 IA of the ReserveBank of India Act 1934.

For M/S ARNA & Associates.
Chartered Accountants
Rahulprasad Agnihotri
Partner
Place: Kolhapur Membership No : 111576
Date : 03/05/2018 FRN : 122293W

Annexure B to Independent Auditor's Report

The Annexure referred to in our Report of even date to the members of Menon BearingsLimited on the accounts of the Company for the year ended 31st March 2018

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 MenonBearings Limited ("the Company") as of 31st March 2018 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended 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 Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India (hereinafter"ICAI"). 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.

Auditor's 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 and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively 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's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that;

I. pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

II. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorisations of management and directors of the Company; and

III. provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 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 2018based on;

i. existing policies and procedures adopted by the Company for ensuring orderly andefficient conduct of business.

ii. continuous adherence to Company's policies.

iii. existing procedures in relation to safeguarding of Company's fixed assetsinvestments inventories receivables loans and advances made and cash and bank balances.

iv. existing system to prevent and detect fraud and errors.

v. accuracy and completeness of Company's accounting records; and

vi. existing capacity to prepare timely and reliable financial information.

For M/S ARNA & Associates.
Chartered Accountants
Rahulprasad Agnihotri
Partner
Place: Kolhapur Membership No : 111576
Date : 03/05/2018 FRN : 122293W