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Menon Bearings Ltd.

BSE: 523828 Sector: Engineering
NSE: MENONBE ISIN Code: INE071D01033
BSE 12:48 | 24 Sep 72.25 -0.15
(-0.21%)
OPEN

73.00

HIGH

73.25

LOW

71.30

NSE 12:38 | 24 Sep 72.40 -0.10
(-0.14%)
OPEN

71.70

HIGH

74.00

LOW

71.70

OPEN 73.00
PREVIOUS CLOSE 72.40
VOLUME 4226
52-Week high 88.30
52-Week low 37.50
P/E 17.41
Mkt Cap.(Rs cr) 405
Buy Price 71.85
Buy Qty 54.00
Sell Price 72.15
Sell Qty 158.00
OPEN 73.00
CLOSE 72.40
VOLUME 4226
52-Week high 88.30
52-Week low 37.50
P/E 17.41
Mkt Cap.(Rs cr) 405
Buy Price 71.85
Buy Qty 54.00
Sell Price 72.15
Sell Qty 158.00

Menon Bearings Ltd. (MENONBE) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

MENON BEARINGS LIMITED

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of MENON BEARINGS LIMITED("the company") which comprise the Balance Sheet as at 31 March 2021 theStatement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period.

Impact of Covid-19 pandemic on the Going Concern assumption.

There was a minor impact of Covid-19 pandemic on the turnover of the Company. Also themanagement is of the view that the impact of Covid-19 will not affect the Going Concernassumption for our Company. Based on the circumstances and facts of the audit entity inour opinion there is no effect on the Going concern assumption.

Responsibilities of the Management and those charged with Governance for the Ind ASFinancial 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 state 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 themaintenance of adequate accounting records in accordance with the provision of the Act forsafeguarding of the assets of the Company and for preventing and detecting the frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of internal financial control that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of the Ind AS financial statements that give a true and fair view and arefree from material misstatement whether due 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 IndAS financial statements in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe Ind AS financial statements are free from material misstatement. An audit involvesperforming procedures to obtain audit evidence about the amounts and disclosures in theInd AS financial statements. The procedures selected depend on the auditor's judgmentincluding the assessment of the risks of material misstatement of the Ind AS financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of the Ind ASfinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion onwhether the Company has in place an adequate internal financial control system overfinancial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation of the Ind AS financial statements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe 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 March 31 2021;

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 and Regulatory 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. Asrequired 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. st

e) On the basis of written representations received from the directors as on 31 March2021 taken on st record by the Board of Directors none of the directors is disqualifiedas on 31 March 2021 from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure 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

Rahulprasad A. Agnihotri Partner

Membership No : 111576 FRN : 122293W

UDIN : 21111576AAAABG9497

Place : Kolhapur

Date : 14/05/2021

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 st accounts of the Company for the year ended 31 March 2021.

(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 companiesfirms Limited Liability Partnerships or other parties covered in the register maintainedunder section189 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 2013 and the rules framed there under.

(vi) As explained to us maintenance of cost records has been specified by theCentral Government under sub-section (l) of section 148 of the Companies Act 2013 we areof the opinion that prima facie such accounts and records have been made and maintained.However we have not made a detailed examination of the records with a view to determinewhether they 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 ofinitial public offer or further public offer (including debt instruments) and had appliedthe term loans 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 of 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 2034.

For M/S ARNA & Associates.

Chartered Accountants

Rahulprasad A. Agnihotri Partner

Membership No : 111576 FRN: 122293W

UDIN:- 21111576AAAABG9497

Place : Kolhapur

Date : 14/05/2021

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 st accounts of the Company for the year ended 31 March 2021 Report on theInternal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of MenonBearings Limited ("the st Company") as of March 31 2021 in conjunction withour audit of the Ind AS financial statements of the Company for the year ended on thatdate.

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 obtainaudit evidence about the adequacy of the internal financial controls system over financialreporting and their operating effectiveness. Our audit of internal financial controls overfinancial reporting included obtaining an understanding of internal financial controlsover financial reporting assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto 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 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 authorizations of management and directors of the Company; and

III. provide reasonable assurance regarding prevention or timely detection ofunauthorized 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 st March 31 2021 based 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 A. Agnihotri Partner

Membership No : 111576 FRN: 122293W

UDIN:- 21111576AAAABG9497

Place : Kolhapur

Date : 14/05/2021

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