You are here » Home » Companies » Company Overview » SNL Bearings Ltd

SNL Bearings Ltd.

BSE: 505827 Sector: Engineering
NSE: N.A. ISIN Code: INE568F01017
BSE 00:00 | 08 Mar 205.25 -2.45
(-1.18%)
OPEN

207.25

HIGH

213.75

LOW

205.20

NSE 05:30 | 01 Jan SNL Bearings Ltd
OPEN 207.25
PREVIOUS CLOSE 207.70
VOLUME 289
52-Week high 269.90
52-Week low 65.25
P/E 16.21
Mkt Cap.(Rs cr) 74
Buy Price 206.00
Buy Qty 7.00
Sell Price 215.00
Sell Qty 10.00
OPEN 207.25
CLOSE 207.70
VOLUME 289
52-Week high 269.90
52-Week low 65.25
P/E 16.21
Mkt Cap.(Rs cr) 74
Buy Price 206.00
Buy Qty 7.00
Sell Price 215.00
Sell Qty 10.00

SNL Bearings Ltd. (SNLBEARINGS) - Auditors Report

Company auditors report

To The Members of SNL Bearings Limited Report on the Audit of the Financial StatementOpinion

1. We have audited the accompanying financial statements of SNL Bearings Limited(‘the Company') which comprise the Balance Sheet as at 31 March 2020 the Statementof Profit and Loss (including Other Comprehensive Income) the Statement of Cash Flow andthe Statement of Changes in Equity for the year then ended and a summary of thesignificant

2. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 (‘Act') in the manner so required and give a true and fair viewin conformity with the accounting principles generally accepted in India including IndianAccounting Standards (‘Ind AS') specified under Section 133 of the Act of the stateof affairs of the Company as at 31 March 2020 and its profit (including othercomprehensive loss) its cash flows and the changes in equity for the year ended on thatdate.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the "Auditor's Responsibilities for the Audit of the FinancialStatements" section of our report. We are independent of the Company in accordancewith the Code of Ethics issued by the Institute of Chartered Accountants of India(‘ICAI') 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.

Emphasis of Matter – Impact of COVID 19

4. We draw attention to Note 43 of the accompanying financialstatements whichdescribes the uncertainties relating to the COVID-19 pandemic outbreak and management'sevaluation of the impact on the financial statements of the Company as at the balancesheet date. The impact of these uncertainties on the

Company's operations is significantly dependent on future developments. Our opinion isnot modified in respect of this matter.

Key Audit Matter

5. 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. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

6. We have determined that there are no key audit matters to communicate in our report.

Information other than the Financial Statements and Auditor's Report thereon

7. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Corporate Governance report butdoes not include the financial statements and our auditor's report thereon which weobtained prior to the date of this auditor's report and the Annual Report which isexpected to be made available to us after that date.

Our opinion on the financial statements does not cover the other information and we donot and will not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above and in doing so consider whether the otherinformation is materially inconsistent with the financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated.

If based on the work we have performed on the other information that we obtained priorto the date of this auditor's report we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

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.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

8. The accompanying financial statements have been approved by the Company's Board ofDirectors. The

Company's Board of Directors is responsible for the matters stated in Section 134(5) ofthe Act with respect to the preparation of these financial statements that give a true andfair view of the financial position financial performance including other comprehensiveincome changes in equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the

Ind AS specifiedunder Section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

9. In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

10. Those Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

11. 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 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 financial statements.

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

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional 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) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern;

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements in a manner that achievesfair presentation; 13. 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.

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.

Report on Other Legal and Regulatory Requirements

15. As required by Section 197(16) of the Act based on our audit we report that theCompany has paid remuneration to its directors during the year in accordance with theprovisions of and limits laid down under Section 197 read with Schedule V to the Act.

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 give in the Annexure Aa statement on the matters specified in paragraphs 3 and 4 of the Order.

17. Further to our comments in Annexure A as required by Section 143(3) of the Actbased on our audit we report to the extent applicable that: a) we have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit of the accompanying financialstatements; b) in our opinion proper books of account as required by law have been keptby the Company so far as it appears from our examination of those books; c) the financialstatements dealt with by this report are in agreement with the books of account; d) in ouropinion the aforesaid financial statements comply with Ind AS specified the Act; e) thematter described in paragraph 4 under the Emphasis of Matter section in our opinion mayhave an adverse effect on the functioning of the Company; f) on the basis of the writtenrepresentations received from the directors and taken on record by the

Board of Directors none of the directors is disqualified as on 31 March 2020 frombeing appointed as a director in terms of Section 164(2) of the Act; g) we have alsoaudited the internal financial controls with reference to financial statements Company ason 31 March 2020 in conjunction with our audit of the financial statements of Company forthe year ended on that date and our report as per Annexure B expressed an unmodifiedopinion; and h) with respect to the other matters to be included in the Auditor's Reportin 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 according to the explanations givento us: i. the Company has disclosed the impact of pending litigations on its financialposition as at 31

March 2020; ii. the Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses as at 31 March 2020; iii.there were no amounts which were required to be transferred to the Investor Education and

Protection Fund by the Company during the year ended 31 March 2020; and iv. thedisclosure requirements relating to holdings as well as dealings in specifiedbank noteswere applicable for the period from 8 November 2016 to 30 December 2016 which are notrelevant to these financial statements. Hence reporting under this clause is notapplicable.

For Walker Chandiok & Co. LLP

Chartered Accountants

Firm's Registration No.: 001076N/N500013

Adi P. Sethna

Partner

Membership No.: 108840 UDINo.: 20108840AAAABZ2095

Place: Mumbai Date : 23 June 2020

Annexure A to the Independent Auditor's Report of even date to the members of

SNL Bearings Limited on the financial statements for the year ended 31 March 2020

Annexure A

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment("PPE").

(b) The Company has a programme of verification of PPE to cover all the items once inwhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. Pursuant to the programme all PPE were physically verified by themanagement during the year ended 31 March 2019. According to the information andexplanations given to us no material discrepancies were noticed on such verification.

(c) The title deeds of all the immovable properties (which are included under the head‘Property plant and equipment') are held in the name of the Company.

(ii) In our opinion the management has conducted physical verification of inventory atreasonable intervals during the year except for goods-in-transit and stocks lying withthird parties. For stocks lying with third parties at the year-end writtenconfirmationshave been obtained by the management. No material discrepancies were noticedon the aforesaid verification.

(iii) The Company has not granted any loan secured or unsecured to companies firmslimited liability partnerships (LLPs) or other parties covered in the register maintainedunder Section 189 of the Act. Accordingly the provisions of clauses 3(iii)(a) 3(iii)(b)and 3(iii)(c) of the Order are not applicable.

(iv) In our opinion the Company has complied with the provisions of Section 186 inrespect of investments. Further in our opinion the Company has not entered into anytransaction covered under Section 185 and Section 186 of the Act in respect of loansguarantees and security.

(v) In our opinion the Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersub-section (1) of Section 148 of the Act in respect of Company's products and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii) (a) Undisputed statutory dues including employees' state insurance income-taxsales-tax service tax goods and service tax duty of customs duty of excise valueadded tax cess and other material statutory dues as applicable have been regularlydeposited with the appropriate authorities except for delays in certain amounts ofprovident fund. Further the amount of provident fund outstanding at the year-end for aperiod of more than six months from the date they became payable and which have not paidtill date are as follows: Statement of arrears of statutory dues outstanding for morethan six months

Name of the statute Name of Dues Amount (Rs. in Lakhs) Period to which amount relates Due date
The Employees Provident Provident fund 0.87 April 2019 15 May 2019
Funds and Miscellaneous Provisions Act 1952 0.85 May 2019 15 June 2019
0.86 June 2019 15 July 2019
0.90 July 2019 15 August 2019
0.85 August 2019 15 September 2019

(b) There were no dues in respect of service tax goods and service tax duty ofcustoms and duty of excise that have not been deposited with the appropriate authoritieson account of any dispute. The dues outstanding in respect of income-tax sales-tax valueadded tax on account of disputes are as follows:

Statement of Disputed Dues

Name of the statute Nature of dues Amount (Rs. in Lakhs) Amount paid under protest (Rs. in Lakhs) Period to which the amount relates Forum where dispute is pending
Income-Tax Act 1961 Income Tax 7.07 - A.Y. 2013-14 Assistant Commissioner of Income tax –
26.27 - A.Y. 2017-18 Mumbai
The Central Sales Tax Act 1956 Central Sales Tax 13.49 3.07 FY 2011-12 and FY 2012-13 Deputy Commissioner of
The Jharkhand Value Added Tax Act 2005 Value Added Tax 1.85 0.69 FY 2011-12 and FY 2012-13 Commercial taxes - Ranchi

(viii) The Company has not defaulted in repayment of loans or borrowings to a bankduring the year. There are no loans or borrowings payable to financial institutions orgovernment and the Company did not have any outstanding debentures during the year.

(ix) The Company did not raise moneys by way of initial public offer or further publicoffer (including debt instruments) and did not avail any term loans during the year.Accordingly the provisions of clause 3(ix) of the Order are not applicable.

(x) No fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the period covered by our audit.

(xi) Managerial remuneration has been paid and provided by the Company in accordancewith the requisite approvals mandated by the provisions of Section 197 of the Act readwith Schedule V to the Act. (xii) In our opinion the Company is not a Nidhi Company.Accordingly provisions of clause 3(xii) of the Order are not applicable.

(xiii) In our opinion all transactions with the related parties are in compliance withSections 177 and 188 of

Act where applicable and the requisite details have been disclosed in the financialstatements etc. as required by the applicable Ind AS.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures. Accordingly the provisionsof clause 3(xiv) of the Order are not applicable.

(xv) In our opinion the Company has not entered into any non-cash transactions withthe directors or persons connected with them covered under Section 192 of the Act.Accordingly the provisions of clause 3(xv) of the Order are not applicable.

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

For Walker Chandiok & Co LLP

Chartered Accountants

Firm's Registration No.: 001076N/N500013

Adi P. Sethna

Partner

Membership No.: 108840 UDINo.: 20108840AAAABZ2095

Place: Mumbai Date : 23 June 2020

Annexure B to the Independent Auditor's Report of even date to the members of

SNL Bearings Limited on the financial statements for the year ended 31 March 2020

Annexure B

Independent Auditor's Report on the internal financial controls with reference to thefinancial statements under Clause (i) of Sub-section 3 of Section 143 of the CompaniesAct 2013 (‘the Act')

1. In conjunction with our audit of the financial statements of SNL Bearings Limited(‘the Company') as at and for the year ended 31 March 2020 we have audited theinternal financial controls with reference to financial statements of the Company as atthat date.

Responsibilities of Management and Those Charged with Governance for Internal FinancialControls

2. The Company's Board of Directors is responsible for establishing and maintaininginternal financialcontrols based on the internal financial controls with reference tofinancial statements criteria established by the

Company considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by theInstitute of Chartered Accountants of

India ("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of the Company's business including adherenceto the Company'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 Act.

Auditor's Responsibility for the Audit of the Internal Financial Controls withReference to Financial Statements

3. Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India prescribed under Section 143(10) of the Act to the extent applicableto an audit of internal financial controls with reference to financial statements and theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting

(‘the Guidance Note') issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about controls with reference to financial statements wereestablished and whetheradequateinternalfinancial maintained and if such controls operatedeffectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controlswithreferencetofinancialstatements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements includes obtaining an understanding of such internal financial controlsassessing 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.

5. 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 withreference to financial statements.

Meaning of Internal Financial Controls with Reference to Financial Statements

6. A company's internal financial controls with reference to financial statements 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 controlswith reference to financial statements include those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company;

(2) 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

(3) 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 with Reference to FinancialStatements

7. Because of the inherent limitations of internal financial controls with reference tofinancial statements 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 withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls with reference to financial statements and such controls were operatingeffectively as at 31 March 2020 based on the internal financial controls with referenceto financial statements criteria established by the

Company considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm's Registration No.: 001076N/N500013

Adi P. Sethna

Partner

Membership No.: 108840 UDINo.: 20108840AAAABZ2095

Place: Mumbai Date : 23 June 2020

.