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NRB Industrial Bearings Ltd.

BSE: 535458 Sector: Engineering
NSE: NIBL ISIN Code: INE047O01014
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OPEN 23.70
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VOLUME 76
52-Week high 33.10
52-Week low 16.75
P/E
Mkt Cap.(Rs cr) 57
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 23.70
CLOSE 23.70
VOLUME 76
52-Week high 33.10
52-Week low 16.75
P/E
Mkt Cap.(Rs cr) 57
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

NRB Industrial Bearings Ltd. (NIBL) - Auditors Report

Company auditors report

TO THE MEMBERS OF

NRB INDUSTRIAL BEARINGS LIMITED

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of NRBIndustrial Bearings Limited ("the

Company") which comprise the Balance Sheet as at 31st March2018 and the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended andasummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Ind AS Financial Statements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the Indian Accounting

Standards (Ind AS) prescribed under section 133 of the Act read withthe Companies (Indian Accounting Standards)

Rules 2015 as amended and other accounting principles generallyaccepted in India.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and 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 Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on Ind AS financialstatements based on our audit.

In conducting our audit we have taken into account the provisions ofthe Act the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules made thereunderand the Order issued under section 143(11) of the Act.

We conducted our audit of the Ind AS financial statements in accordancewith the Standards on Auditing specified under

Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the Ind

AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the Ind

AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement ofthe Ind AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to theCompany'spreparation of the Ind AS financial statements that give a true and fairview in order to design audit procedures that are appropriate in the circumstances. Anaudit also includes evaluating the appropriateness of the accounting policies used and thereasonableness of theaccounting estimates made by the

Company's Directors as well as evaluating the overallpresentation of the Ind AS financial statements.

We believe that the audit evidence obtained by usis sufficient andappropriate to provide 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 theexplanations given to us the aforesaid Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the Ind AS and other accounting principles generally accepted in India of the stateof affairs of the Company as at 31st March 2018 and its loss total comprehensive lossits cash flows and the changes in equity for the year ended on that date.

Emphasis of Matter

We draw attention to Note 38to the Financial Statements. As stated inthe Note the remuneration paid to the Managing Director of Rs. 34.81 lacs for the periodfrom 01 October 2012 to 31 March 2014 is subject to the approval of the CentralGovernment.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit wereport to the extent applicable 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 the Statement of Profit and Loss including OtherComprehensive Income the

Cash Flow Statement and Statement of Changes in Equity dealt with bythis Report are in agreement with the relevant books of account.

d) In our opinion the aforesaid Ind AS financial statements complywith the Indian Accounting

Standards prescribed under section 133 of the Act.

e) On the basis of the written representations received from thedirectors of the Company as on

31stMarch 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2018from being appointed as a director interms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the

Companyand the operating effectiveness of such controls refer to ourseparate Report in "Annexure A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controlsover financial reporting.

g) 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 as amended in our opinion and to the best of our information and accordingto the explanations given to us: i. The Company does not have any pending litigationswhich would impact its financial position. ii. The Company has long-term contractsincluding derivative contracts for which there were no material foreseeable losses. iii.There were no amounts which were required to be transferred to the Investor Education andProtection Fund by the Company. 2. As required by the Companies (Auditor's Report)Order

2016 ("the Order") issued by the Central Government in termsof Section 143(11) of the Act we give in "Annexure B" a statement on thematters specified in paragraphs 3 and 4 of the Order.

For Deloitte Haskins and Sells
Chartered Accountants
(Firm's Registration No. 117365W)
Uday M. Neogi
(Partner)
(Membership No. 30235)
Place: Mumbai
Date : 29 May 2018

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 (f) under ‘Report on Other Legal andRegulatory Requirements' of our report of even date to the members of NRB IndustrialBearings limited on the standalone financial statements for the year ended March 31 2018)

Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Sub-section 3 ofSection 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of NRB Industrial Bearings Limited ("the Company") as of March 312018 in conjunction with our audit of the standalone financial statements of the Companyfor 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 issued by the Institute of Chartered Accountants 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 offrauds and 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'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "GuidanceNote") issued by the Institute of CharteredAccountants of India and the

Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

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

Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal financial control over financial reporting isa process 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 over financial reportingincludes those policies and procedures that (1) pertain to the maintenance of recordsthat in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 maintained in all material respects adequateinternal financial controls over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Deloitte Haskins and Sells
Chartered Accountants
(Firm‘s Registration No.117365W)
Uday M. Neogi
Partner
(Membership No. 30235)
Place: Mumbai
Date: 29 May 2018

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal andRegulatory Requirements' section of our report of even date to the members of NRBIndustrial Bearings limited on the standalone financial statements for the year endedMarch 31 2018)

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situationof property plant and equipment.

(b) The Company has a program of verification of property plant andequipment to cover all the items once over a period of three yearswhich in our opinionis reasonable having regards to the size of the Company and the nature of its assets. Inaccordance with the programme all the items of property plant and equipment werephysically verified during the previous period.

(c) According to the information and explanations given to us and therecords examined by us and based on the examination of the registered tittle deed providedto us we report that the tittle deed of the flat is held in the name of the company as atthe balance sheet date.

In respect of immovable property of building constructed on leaseholdland disclosed as Property Plant and Equipment in the financial statements the leaseagreement has been pledged as security for loans based on the confirmation directlyreceived by us from Lenders the lease agreement is in the name of the Company where thecompany is lessee in the agreement.

(ii) As explained to us the inventories were physically verifiedduring the year by the Management at reasonable intervals and no material discrepancieswere noticed on physical verification.

(iii) The Company has not granted any loans secured or unsecured tocompanies or other parties covered in the register maintained under section 189 of theCompanies

Act 2013.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has not granted any loans or provided guarantees.In respect ofinvestmentsmade the Company has complied with the provisions of section 186 of theCompanies Act 2013.

(v) According to the information and explanations given to us theCompany has not accepted any deposit during the year.

(vi) The maintenance of cost records has been specified by the CentralGovernment under section 148(1) of the Companies Act 2013. We have broadly reviewed thecost records maintained by the Company pursuant to the Companies (Cost Records and Audit)Rules 2014 as amended prescribed by the Central Government under sub-section (1) ofSection 148 of the Companies Act 2013 and are of the opinion that prima facie theprescribed cost records have been made and maintained

We have however not made a detailed examination of the cost recordswith a view to determine whether they are accurate or complete.

(vii) According to the information and explanations given to us inrespect of statutory dues:

(a) The Company has generallybeen regular in depositing otherundisputed statutory dues including Provident Fund Employee's State InsuranceIncome Tax Excise Duty/Goods and Services TaxSales TaxValue Added Tax cess and othermaterial statutory dues applicable to it to the appropriate authorities.

(b) There were no undisputed amounts payable in respect of ProvidentFund Income Tax Sales Tax Service tax Excise Duty/Goods and Services Tax Value AddedTaxcessand other material statutory dues in arrears as atMarch 31 2018 for a period ofmore than six months from the date they became payable.

(c) There are no dues of Income-tax Sales Tax Service Tax CustomsDuty Excise Duty/Goods and Services Tax Value Added Tax and Goods and Services TaxasonMarch 31 2018on account of disputes.

(viii) In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in the repayment of loans or borrowings tofinancial institution and banks.The

Company has not issued any debentures.

(ix) The Company has not raised moneys by way of initial public offeror further public offer (including debt instruments).Further the term loans have beenapplied by the Company during the year for the purposes for which they were raised.

(x) To the best of our knowledge and according to the information andexplanations given to us no fraud by the Company and no material fraud on the Companybyits officers or employees 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 managerial remuneration for the year 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 the Order is not applicable.

(xiii) In our opinion and according to the information and explanationsgiven to us the Company is in compliance with Section 188 and 177 of the Companies Act2013 where applicable for all transactions with the related parties and the details ofrelated party transactions have been disclosed in the financial statements etc. asrequired by the applicable accounting standards.

(xiv) According to the information and explanations given to us theCompany has made private placement of shares during the year under review.

In respect of the above issue we further report that:

a) the requirement of Section 42 of the Companies

Act 2013 as applicable have been complied with; and b) the amountsraised have been applied by the Company during the year for the purposes for which thefunds 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 provisions of section 192 ofthe Companies Act 2013 are not applicable.

(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

For Deloitte Haskins and Sells
Chartered Accountants
(Firm's Registration No. 117365W)
Uday M. Neogi
(Partner)
(Membership No. 30235)
Place: Mumbai
Date: 29 May 2018