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Menon Pistons Ltd.

BSE: 531727 Sector: Auto
NSE: N.A. ISIN Code: INE650G01029
BSE 00:00 | 24 Apr 2020 Menon Pistons Ltd
NSE 05:30 | 01 Jan 1970 Menon Pistons Ltd

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OPEN 13.70
PREVIOUS CLOSE 13.49
VOLUME 7591
52-Week high 21.45
52-Week low 7.76
P/E 10.22
Mkt Cap.(Rs cr) 67
Buy Price 12.31
Buy Qty 100.00
Sell Price 13.18
Sell Qty 1769.00
OPEN 13.70
CLOSE 13.49
VOLUME 7591
52-Week high 21.45
52-Week low 7.76
P/E 10.22
Mkt Cap.(Rs cr) 67
Buy Price 12.31
Buy Qty 100.00
Sell Price 13.18
Sell Qty 1769.00

Menon Pistons Ltd. (MENONPISTONS) - Auditors Report


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Company auditors report

To the Members of Menon Pistons Limited

Report on the Indian Accounting Standards (Ind AS) Financial Statements

Opinion

We have audited the accompanying Ind AS financial statements of Menon Pistons Limited("the Company") which comprises the Balance Sheet as at 31st March 2019 theStatement of Profit and Loss (including Other Comprehensive Income) Statement of changesin equity and Statement of Cash Flows for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation (hereinafter referred to as "the Ind AS Financial Statements").

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 of the state of affairs of the Companyas at 31st March 2019 its profit (including Other Comprehensive Income) changes inequity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thosestandards are further described in the Auditor's Responsibilities for the Audit of theStandalone Ind AS Financial Statements section of our report. We are independent to theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the standalone Ind AS financial statements under the provisions of the Companies Act2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Key audit matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements of the currentperiod. These matters were addressed in the context of our audit of the standalone Ind ASfinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. Following is the Key Audit Matter identified which isof most significance:

= Evaluation of Information Technology (IT) controls:

Monitoring IT controls and procedures with regards to its policies and governance toincrease credit worthiness of financial reporting is of most significance. We haveconsidered IT as a key audit matter for lapses failure incorrect input data and wrongextraction of data may result in wrong financial reporting.

Audit procedures performed:

We have performed following substantive audit procedures:

• We have reviewed the overall system controls and IT frameworks established bythe company.

• We have carried out audit procedures in accordance with standards on auditingguidelines towards implementation of IT policies and procedures followed by the companyin order to effective monitoring control and evaluate the IT applications and controls toensure effective implementation of IT policies and procedures.

• We have validated the output generated by the system for which we have manuallyverified selected cases and satisfied the accuracy of the reports.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in Annual Report but does not include thestandalone Ind AS financial statements Secretarial Report and our auditor's reportthereon which we obtained prior to the date of this auditor's report.

Our opinion on the standalone Ind AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

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

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard

Responsibilities of 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 financialposition financial performance including other comprehensive income changes in equitycash flows of the company in accordance with the accounting principles generally acceptedin India including the Indian Accounting Standards specified in the Companies (IndianAccounting Standards) Rules 2015 (as amended) under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements 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

In preparing the Ind AS financial statements management is responsible for assessingthe Company'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.

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

Auditor's Responsibility for the Audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS financialstatements are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes our opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese Ind AS financial statements. As part of an audit in accordance with SAs we exerciseprofessional judgement and maintain professional skepticism throughout the audit.

We also:

= Identify and assess the risks of material misstatement of the Ind AS financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe Company has adequate internal financial controls with reference to financialstatements in place and operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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 Ind AS financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the Ind AS financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

Report on Other Legal and Regulatory Requirements

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

2. 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 it appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the Cash Flow Statement dealt with by this Report are in agreement with the booksof account.

d. In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e. On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164 (2) of the Act.

f. With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B"; and

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

i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements Refer Note no.32 to the financial statements;

ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses as at 31 March 2019.

iii) There has been no delay in transferring amounts required to be transferred tothe investor Education and Protection Fund by the Company. Except shares in respect ofwhich dividend has not been paid or claimed for seven consecutive years or more. TheCompany is in the process of transferring such shares to Investor Education and ProtectionFund.

For M/s P. G. Bhagwat

Chartered Accountants FRN- 101118W

Akshay B. Kotkar Place : Kolhapur Partner Date : 10.05.2019 Membership No. 140581

Annexure - A to the Auditor's Report

Referred to in paragraph 1 of our Report on Other Legal and Regulatory Requirements ofeven date to the Members of Menon Pistons Limited.

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets of the Company are physically verified by the Management asper policy. In our opinion the frequency of verification is reasonable.

(c) The title deeds of immovable properties as disclosed in note 1 on fixed assets tothe financial statements are held in the name of the company.

(ii) The inventory was physically verified during the year by the management. In ouropinion the frequency of verification is reasonable. Discrepancies between the physicalstock and the book records noticed on verification were properly dealt with in the booksof accounts.

(iii) According to information and explanations given to us the Company had grantedunsecured loans to a company covered in the register maintained under section 189 of theCompanies Act 2013 in respect of which; (a) The terms and conditions of the grant of suchloan are in our opinion prima facie not prejudicial to the Company's interest. (b) Theprincipal amount is repayable on demand and schedule of payment of interest has beenstipulated and repayments or receipts of principal amounts and interest have been regular.(c) There is no amount due for more than 90 days at the balance sheet date.

iv) According to information & explanations given to us in our opinion in respectof loan investment guarantees and security provision of Sections 185 and 186 of theCompanies Act 2013 has been complied with.

v) According to information and explanation given to us the Company has not acceptedany deposits from public accordingly the reporting under Clause 3 (v) of the Companies(Auditor's report) Order 2016 is not applicable to the Company.

(vi) We have broadly reviewed the books of accounts and records maintained by theCompany relating to manufacture of base metals castings (Auto-components of Aluminium& Steel) pursuant to the rules made by Central Government for the maintenance of costrecords under sub-section (1) of Section 148 of the Companies Act 2013 and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. We have however not made a detailed examination of the records with a viewto determining whether they are accurate or complete.

(vii) (a) According to information and explanation given to us the Company isgenerally regular in depositing undisputed statutory dues with appropriate authoritiesincluding provident fund employees' state insurance income tax sales tax service taxduty of customs duty of excise value added tax Goods and Services tax cess and anyother statutory dues applicable to it.

(b) According to the information and explanations provided to us no undisputed amountspayable in respect of Provident Fund Employees' State Insurance Income-Tax Service TaxSales-Tax Goods and Services Tax Duty of Custom Duty of Excise Value Added Tax Cessand Other Statutory Dues were outstanding at the year end for a period of more than sixmonths from the date they became payable.

(c) According to information and explanation given to us there are no dues of Incometax Sales Tax Service Tax Duty of Custom Duty of Excise Goods and Services tax andCess which have not been deposited on account of any dispute other than those mentionedbelow:

Rupees in Lakhs

Statutory Dues Forum Outstanding Balance
1 Sales Tax Dy. Commissioner of Sales Tax (Appeals) Pune. 5.00
2 Service Tax Liability (2007- 09) CCE (Appeals) Pune-II. 3.31
3 Service Tax Liability (2009-10) CCE (Appeals) Pune-II. 0.96
4 Central Sales Tax (2009-10) Sales Tax Tribunal Mumbai. 8.62
5 Maharashtra Value Added Tax (2009-10) Sales Tax Tribunal Mumbai. 4.61

(viii) According to information and explanations given to us in our opinion theCompany has not defaulted in repayment of loans and borrowings to any bank. Alsoaccording to information and explanations given to us in our opinion Company neither hasany loans or borrowings from financial institution Government nor issued any debentures.

(ix) According to the information and explanation given to us in our opinion theCompany has not raised money by way of initial public offer or further public offer(including debt instruments) and term loans. Accordingly the reporting under Clause 3(ix) of the Companies (Auditor's report) Order 2016 is not applicable to the Company.

(x) According to information and explanation given to us no fraud by the Company orany fraud on the Company by its officers or employees has been noticed or reported duringthe year.

(xi) According to information and explanation given to us and based on our examinationof the records of the Company managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provision of Section 197 read withschedule V to the Companies Act 2013.

(xii) The Company is not a Nidhi Company accordingly the reporting under Clause 3(xii) of the Companies (Auditor's report) Order 2016 is not applicable to the Company.

(xiii) According to information & explanation given to us in our opinionall transactions with related parties are in compliance with sections 177 & 188 ofCompanies Act 2013 wherever applicable and the details have been disclosed in notes toaccounts of Financial Statements as per Indian Accounting Standard 24 - Related PartyDisclosures.

(xiv) According to Information & Explanation given to us the Company hasnot issued shares by way of preferential allotment/private placement of shares or fully orpartly convertible debentures during the year under review accordingly provisions ofsection 42 of the Companies Act 2013 are not applicable to the Company.

(xv) According to information & explanation given to us the Company has notentered into non-cash transactions with directors or persons connected with him;accordingly provisions of section 192 are not applicable to the Company.

(xvi) According to information & explanation given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For M/s P. G. Bhagwat

Chartered Accountants FRN- 101118W

Akshay B. Kotkar Place : Kolhapur Partner Date : 10.05.2019 Membership No. 140581

Annexure - B to the Auditor's Report

(Referred to in paragraph 2(f) of our Report on Other Legal and Regulatory Requirementsof even date to the Members of Menon Pistons Limited)

Report on the Internal Financial Controls with reference to Standalone Ind AS FinancialStatements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")

We have audited the internal financial controls with reference to Standalone Ind ASFinancial Statements of

Menon Pistons Limited ("the Company") as of 31 March 2019 in conjunctionwith our audit of the Ind AS financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

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 Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether internal financial controls with reference to Financial Statements wereestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the existenceof the internal financial controls with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference toFinancial Statements included obtaining an understanding of internal financial controlswith reference to Financial Statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements 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 with reference to financialstatements.

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 (1) pertain to the maintenance ofrecords that 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting with reference to Standalone Ind AS Financial Statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto Standalone Ind AS Financial Statements to future periods are subject to the risk thatthe internal financial control over financial reporting with reference to Standalone IndAS Financial Statements 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 with reference to financial statements and such internal financialcontrols were operating effectively as at March 31 2019 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For M/s P. G. Bhagwat

Chartered Accountants FRN- 101118W

Akshay B. Kotkar Place : Kolhapur Partner Date : 10.05.2019 Membership No. 140581


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