TO
THE MEMBERS OF
MENON BEARINGS LIMITED
Report on the Standalone Ind AS Financial Statements.
We have audited the accompanying Standalone Ind AS financial statements of MENON
BEARINGS LIMITED
st
("the company"), which comprise the Balance Sheet as at 31 March 2023, 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, and a summary of
significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the Companies Act, 2013 (the "Act") in the manner so required and give a true
and fair view in conformity with the Indian Accounting Standards prescribed under section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended, ("Ind AS") and other accounting principles generally accepted in India,
of the state of affairs of the
st
Company as at 31 March, 2023 and its profit, total comprehensive income, changes in
equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the
Standards on Auditing ("SA"s) specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Standalone Financial Statements section of our
report. We are independent of the Company in accordance with 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 the standalone financial statements
under the provisions of the Act and the Rules made thereunder, and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the ICAIs Code
of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate
to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. There are no
such matters identified during the audit period.
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Management Discussion and Analysis,
Boards Report including Annexures to Boards Report, Business Responsibility and
Sustainability Report, Corporate Governance and Shareholders Information, but does not
include the consolidated financial statements, standalone financial statements and our
auditors report thereon.
Our opinion on the standalone financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial statements or our knowledge
obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of the Management and those charged with Governance for the Standalone
Ind AS Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these Ind AS financial statements that give a true and fair view of the state of affairs
(financial position), profit & loss (financial performance including other
comprehensive income), cash flows and changes in equity of the Company in accordance with
the accounting principles generally accepted in India, including the Indian Accounting
Standards (Ind AS) specified under Section 133 of the Act, read with Rule 4 of the
Companies (Indian Accounting Standards) Rules, 2015.
This responsibility also includes the maintenance of adequate accounting records in
accordance with the provision of the Act for safeguarding of the assets of the Company and
for preventing and detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and maintenance of internal financial
control, that were operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the Ind AS financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the standalone financial statements, management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
the Board of Directors either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibility
Our responsibility is to express an opinion on these Standalone Ind AS financial
statements based on our audit. We have taken into account the provisions of the Act, the
accounting and auditing standards and matters which are required to be included in the
audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the Standalone Ind AS financial statements in accordance with
the Standards on Auditing specified under section 143(10) of the Act. Those Standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the Standalone Ind AS financial statements are free
from material misstatement. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the Ind AS financial statements. The
procedures selected depend on the auditors judgment, including the assessment of the
risks of material misstatement of the Ind AS financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal financial control
relevant to the Companys preparation of the Standalone Ind AS financial statements that
give true and fair view in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on whether the Company has
in place an adequate internal financial control system over financial reporting and the
operating effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of the accounting
estimates made by Companys Directors, as well as evaluating the overall presentation of
the Standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid Standalone Ind AS financial statements, give the information
required by the Act in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India including the Ind AS;
st
a) of the State of affairs (financial position) of the Company as at 31 March, 2023;
b) of the Profit (financial performance including Other Comprehensive Income) for the
year 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
1) With respect to the matter to be included in the Auditors Report under Section
197(16) of the Act: In our opinion and according to the information and explanations given
to us, the remuneration paid by the Company to its directors during the current year is in
accordance with the provisions of Section 197 of the Act. The remuneration paid to any
director is not in excess of the limit laid down under Section 197 of the Act.
2) As required by the Companies (Auditors Report) Order, 2020 ("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 the
matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
3) 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 best
of 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 the
Company so far as appears from our examination of those books
c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive
income), the Cash Flow Statement and the Statement of Changes in Equity dealt with by this
Report are in agreement with the books of account d) In our opinion, the aforesaid
Standalone Ind AS financial statements comply with the Accounting Standards 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 March,
2023, taken on record st by the Board of Directors, none of the directors is disqualified
as on 31 March, 2023, from being appointed as a director in terms of Section 164(2) of the
Act.
f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure B"
g) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rule, 2014, in our opinion
and 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 financial
position.
ii. The Company did not have any long-term contracts including derivatives contracts of
which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company.
iv. a) The management has represented that, to the best of its knowledge and belief, no
funds have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the Company to or in any other persons
or entities, including foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall:
directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or
provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.
b) The management has represented, that, to the best of its knowledge and belief, no
funds have been received by the Company from any persons or entities, including foreign
entities ("Funding Parties"), with the understanding, whether recorded in
writing or otherwise, that the Company shall:
directly or indirectly, lend or invest in other persons or entities identified in any
manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding
Party or
provide any guarantee, security or the like from or on behalf of the Ultimate
Beneficiaries; and c) Based on such audit procedures as considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under subclause (iv) (a) and (iv) (b) contain any
material mis-statement.
v. The dividend declared or paid during the year by the Company is in compliance with
Section 123 of the Act.
For M/S A R N A & Associates. Chartered Accountants
|
Rahulprasad A. Agnihotri, Partner |
Place : Kolhapur th |
Membership No : 111576 FRN : 122293W |
Date : 28 April, 2023 |
UDIN : 23111576BGWRAH5196 |
Annexure A to Independent Auditors Report
The Annexure referred to in our Report of even date to the members of Menon Bearings
Limited on the st accounts of the Company for the year ended 31 March, 2023.
(i) (a) The Company has maintained proper records, showing full particulars including
quantitative details and situation of Property, Plant and Equipment. The Company has
maintained proper records, showing full particulars of intangible assets.
(b) Property, plant and equipments are physically verified by the management in
accordance with a regular programme at reasonable intervals. In our opinion the interval
is reasonable having regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on such verification;
(c) The title deeds of immovable properties of the company are held in the name of the
Company based on the confirmation received from the Company except lease hold land from
MIDC.
(d) None of the Property Plant and Equipments and Intangible assets are revalued
during the current financial year.
(e) No proceedings have been initiated or are pending against the company for holding
any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder.
(ii) (a) As explained to us, physical verification of inventory has been conducted at
reasonable intervals by the management; (b) The procedures of physical verification of
inventory followed by the management are reasonable and adequate in relation to the size
of the company and the nature of its business. (c) The company is generally maintaining
proper records of inventory. No material discrepancies were noticed on physical
verification of stocks by the management as compared to book records.
(d) The company has utilised working capital limits in excess of five crore rupees, in
aggregate, from banks or financial institutions on the basis of security of current
assets. (Details are provided in notes to accounts) (e) The quarterly returns or
statements filed by the company with financial institutions or banks are in agreement with
the books of account of the Company.
(iii) The Company has not granted any loans or provided any guarantees and securities
covered u/s. 185 and 186 of the Companies Act, 2013. However, the company has made an
investment of Rs.8,25,00,000 in its fully owned subsidiary "Menon Brakes Private
Limited" in current year. The said investment is well within the limits prescribed
under the said sections.
(iv) The company has not granted any loans, secured or unsecured or has not made any
investments in companies, firms, Limited Liability Partnerships or other parties covered
in the register maintained under section 189 of the Companies Act.
(v) The Company has not accepted any deposits covered under the directives issued by
the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant
provisions of the Companies Act, 2013 and the rules framed there under.
(vi) As explained to us, maintenance of cost records has been specified by the Central
Government under sub-section (l) of section 148 of the Companies Act, 2013, we are of 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 determine whether
they are accurate and complete.
(vii) (a) According to the records, the company is regular in depositing undisputed
statutory dues including Provident Fund, Employees State Insurance, Income-tax, Sales
Tax, Service Tax, GST, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any
other statutory dues with the appropriate authorities. There were no outstanding statutory
dues as at the last day of the financial year concerned for a period of more than six
months from the date they became payable;
(b)As explained to us, there are no dues of Income Tax, Sales Tax, Service Tax, GST,
Duty of Customs, Duty of Excise, Value Added Tax, Cess or Duty of Customs which have not
been deposited on account of any dispute.
(viii) There are no such transactions which are not recorded in the accounts that have
been disclosed or surrendered before the tax authorities as income during the year.
(ix) a) The Company has not defaulted in repayment of dues to a financial institution
or bank or Government or dues to debenture holders.
b) The company has not been declared a willful defaulter by any bank or financial
institution or any other lender.
c) The Company has utilized the term loans for the object for which they were obtained.
d) The Company has not utilized short term funds for long term purposes.
e) The company has not raised any money from any person or entity for the account of or
to pay the obligations of its associates, subsidiaries or joint ventures.
f) The company has not raised any loans during the year by pledging securities held in
their subsidiaries, joint ventures or associate companies.
(x) During the period under review, the Company has not raised money by way of initial
public offer or further public offer (including debt instruments) and hence reporting
under clause 3(x)(a) of the Order is not applicable.
During the year, the Company has not made any preferential allotment or private
placement of shares or convertible debentures (fully or partly or optionally) and hence
reporting under clause 3(x)(b) of the Order is not applicable.
(xi) a) No fraud on or by the company has been noticed or reported during the year;
b) As represented by the management, there are no whistle blower complaints received by
the Company during the year.
(xii) Since, the Company is not a Nidhi Company, the Nidhi Rules, 2014 are not
applicable.
(xiii) All transactions with the related parties are in compliance with sections 177
and 188 of the Companies
Act, 2013 and details of the same have been disclosed in the Financial Statements as
required by the applicable accounting standards;
(xiv) The company has an internal audit system in accordance with its size and business
activities. The reports of the internal auditors have been considered by the statutory
auditor.
(xv) As explained to us, the Company has not entered into any non-cash transactions
with directors or persons connected with him.
(xvi) a) The Company is not required to be registered under section 45 IA of the
Reserve Bank of India Act.
b) The company has not carried on any Non-Banking Financial or Housing Finance
activities (NBFC or HFC).
c) The company is not a Core Investment Company (CIC) under the RBI regulations.
d) The company does not belong to any group that has more than one CIC as part of it.
(xvii) The company has not incurred any cash losses in the financial year and the
immediately preceding financial year.
(xviii) During the year, there has been no resignation of statutory auditors.
(xix) On an evaluation of: The ageing report, financial ratios and expected dates of
realisation of financial assets and payment of financial liabilities, any other
information accompanying the financial statements, the auditors knowledge of the Board of
Directors and management plans, there exists no material uncertainty as on the date of
audit report and the company can meet its liabilities which exist as at the balance sheet
date when such liabilities are due in the future.
(xx) There are no unspent amounts towards Corporate Social Responsibility (CSR) on
other than ongoing projects requiring a transfer to a Fund specified in Schedule VII to
the Companies Act in compliance with second proviso to sub-section (5) of Section 135 of
the said Act.
In respect of ongoing projects, the Company has transferred unspent Corporate Social
Responsibility (CSR) amount as at the end of the previous financial year, to a Special
account within a period of 30 days from the end of the said financial year in compliance
with the provision of section 135(6) of the Act.
(xxi) The company is having one subsidiary, "Menon Brakes Private Limited".
There no qualifications or adverse remarks in the audit reports of the same.
For M/S A R N A & Associates. Chartered Accountants
|
Rahulprasad A. Agnihotri, Partner |
Place: Kolhapur : th |
Membership No : 111576 FRN: 122293W |
|
Date 28 April, 2023 |
UDIN:- |
23111576BGWRAH5196 |
Annexure B to Independent Auditors Report
The Annexure referred to in our Report of even date to the members of Menon Bearings
Limited on the st accounts of the Company for the year ended 31 March, 2023
Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Menon
Bearings Limited ("the st Company") as of 31 March, 2023 in conjunction with our
audit of the Ind AS financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting issued by the Institute of Chartered Accountants of India (hereinafter
"ICAI"). These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively for
ensuring the orderly and efficient conduct of its business, including adherence to
companys policies, the safeguarding of its assets, the prevention and detection of frauds
and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls, and both issued by ICAI. Those Standards and the Guidance
Note require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether adequate internal financial controls over
financial reporting was established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A Companys internal financial control over financial
reporting includes those policies and procedures that;
I. pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the Company;
II. provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the Company are being made only in
accordance with authorizations of management and directors of the Company; and
III. provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31 March, 2023, based on;
i. existing policies and procedures adopted by the Company for ensuring orderly and
efficient conduct of business.
ii continuous adherence to Companys policies.
iii. existing procedures in relation to safeguarding of Companys fixed assets,
investments, 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 Companys accounting records; and
vi. existing capacity to prepare timely and reliable financial information.
For M/S A R N A & Associates. Chartered Accountants
|
Rahulprasad A. Agnihotri, Partner |
Place : Kolhapur |
Membership No : 111576 FRN: 122293W |
th |
|
|
Date : 28 April, 2023 |
UDIN: |
23111576BGWRAH5196 |
+91-9892691696
