We have audited the accompanying standalone Ind AS financial statements of NRB Industrial Bearings Limited (“theCompany”), which comprise the Balance sheet as at March 31, 2025, the Statement of Profit and Loss, including theStatement of Other Comprehensive Income, the Statement of Cash Flow and the Statement of Changes in Equity for the yearthen ended, and notes to the standalone Ind AS financial statements, including a summary of material accounting policies andother explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind ASfinancial statements give the information required by the Companies Act, 2013, as amended (“the Act”) in the manner sorequired and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state ofaffairs of the Company as at March 31,2025, its profit including other comprehensive income, its cash flows and the changesin equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing (SAs), asspecified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’sResponsibilities for the Audit of the Standalone Ind AS financial statements’ section of our report. We are independent of theCompany in accordance with the ‘Code of Ethics’ issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rulesthereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the Standalone Ind AS 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 standaloneInd AS financial statements for the financial year ended March 31,2025. These matters were addressed in the context of ouraudit of the standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide aseparate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided inthat context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We havefulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the standalone Ind AS financial statementssection of our report, including in relation to these matters. Accordingly, our audit included the performance of proceduresdesigned to respond to our assessment of the risks of material misstatement of the standalone Ind AS financial statements.The results of our audit procedures, including the procedures performed to address the matters below, provide the basis forour audit opinion on the accompanying standalone Ind AS financial statements.
Key Audit Matter
How our audit addressed the key audit matter
Inventory - Provision for slow and non-moving inventory of work in progress and finished goods (as described in Note 10and Note 2 (j) of the Standalone Ind AS financial statements)
The Company is in the business of manufacturing industrialbearings and has inventory balance amounting toRs. 2,331.59 lakhs as at March 31, 2025 as disclosed inNote 10 to the standalone financial statements.
The Company has certain non-moving and slow-movingwork in progress and finished goods inventory as at March31, 2025, lying at its factory. Management appliesjudgement in determining the provision for such slow andnon-moving finished goods inventory based upon itsdetailed analysis of old inventory using the ageing report of
Our procedures included the following:
• We read the Company's accounting policy forprovisioning for obsolete and slow-moving/non-movinginventories.
• We evaluated the design and tested the implementationof internal controls including operating effectiveness ofsuch internal controls on the judgement exercised bythe management for provisions made and underlyingdata, assumptions used and records maintained fordetermination of saleability of slow moving and non-
such inventory, net realizable value, its physical condition,future use and sales projections for the said inventory. Thedetermination of saleability of such slow/ non-movinginventory requires management to rely on certainassumptions and significant judgement. Accordingly, theassessment of the provision for slow and non-movinginventory has been considered as a key audit matter.
moving finished goods including reasonableness ofsales projections;
• We performed audit procedures such as testing theinventory ageing report, testing the reasonableness ofsales projections considered for future liquidation of theslow-moving inventory and the realizable value of suchinventories based on historical sales data, orders inhand etc. We also tested the appropriateness of the netrealizable value considered by management for theslow and non-moving inventory by comparing theinventory value with the subsequent sales prices of thefinished goods/recently realized prices;
• We observed the inventory count performed bymanagement as at the year-end on a sample basis andassessed the physical condition of the inventoriessegregated as slow moving/non-moving and comparedthe same with the inventory listing to checkcompleteness;
• We assessed that the disclosures for slow and non¬moving inventory are appropriate in accordance withthe Ind AS and Schedule III of the Act.
Investments - Recoverability of Non-Current Investment in associates (as described in Note 7A and Note 2 (n) of the
Ind AS standalone financial statement)
As at March 31, 2025, the carrying values of Company'sinvestment in associate entities amounted to Rs. 525.00lakhs. The Company performs an annual impairmentassessment by comparing the carrying value of suchinvestments to their recoverable amounts in order todetermine whether any impairment provision is required.
For the purpose of such impairment assessment,management determines the value in use by usingdiscounted forecasted cashflows of the associates andconsidering the inherent nature of these calculations beingsubject to uncertainty and judgement, the assessment ofimpairment of investments in associates was determined tobe a key audit matter in our audit of the standalone financialstatements.
• We read the accounting policies with respect tovaluation of investment and its impairmentassessment;
• We evaluated the design and implementation andtested the operating effectiveness of controls over theCompany's process of impairment assessment andapproval of forecasts;
• We assessed the Company's valuation methodologyapplied in determining the recoverable amount. Weassessed the assumptions around the key drivers of thecash flow forecasts including projected sales value andmargins, discount rates, expected growth rates andterminal growth rates used and also applied sensitivitytests to the discounted cash flows and key assumptionsto determine the headroom available;
• We evaluated the objectivity and independence of theinternal experts and assessed their competence;
• We involved our internal experts to assess thereasonableness of assumptions used in valuation ofinvestments;
• We tested the arithmetical accuracy of the models;
• We assessed that the disclosures are appropriate inaccordance with the Ind AS and Schedule III of the Act.
The Company’s Board of Directors is responsible for the other information. The other information comprises the informationincluded in the Annual report, but does not include the standalone Ind AS financial statements and our auditor’s report thereon.
Our opinion on the standalone Ind AS financial statements does not cover the other information and we do not express anyform of assurance conclusion thereon.
In connection with our audit of the standalone Ind AS financial statements, our responsibility is to read the other informationand, in doing so, consider whether such other information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, weconclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing toreport in this regard.
Responsibilities of Management for the standalone Ind AS financial statements
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to thepreparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financialperformance including other comprehensive income, cash flows and changes in equity of the Company in accordance with theaccounting principles generally accepted in India, including the Indian Accounting Standards (Ind As) specified under Section133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design,implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring theaccuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind ASfinancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone Ind AS financial statements, management is responsible for assessing the Company’s ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternativebut to do so.
Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the standalone Ind AS financial statements
Our objectives are to obtain reasonable assurance about whether the standalone Ind AS financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.Reasonable assurance is a high level of 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 fraud or error and are considered materialif, individually or in the aggregate, they could reasonably be expected to influesnce the economic decisions of users taken onthe basis of these standalone Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticismthroughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone Ind AS financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraudis higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriatein the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whetherthe Company has adequate internal financial controls with reference to financial statements in place and the operatingeffectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and relateddisclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on theaudit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we arerequired to draw attention in our auditor’s report to the related disclosures in the financial statements or, if suchdisclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as agoing concern.
• Evaluate the overall presentation, structure and content of the standalone Ind AS financial statements, including thedisclosures, and whether the standalone Ind AS financial statements represent the underlying transactions and eventsin a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of theaudit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirementsregarding independence, and to communicate with them all relationships and other matters that may reasonably be thought tobear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of mostsignificance in the audit of the standalone Ind AS financial statements for the financial year ended March 31,2025 and aretherefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes publicdisclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh thepublic interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India interms of sub-section (11) of Section 143 of the Act, we give in the “Annexure 1” a statement on the matters specified inparagraphs 3 and 4 of the Order.
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 best of our knowledge and beliefwere 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 it appearsfrom our examination of those books except for the matters stated in the paragraph (i)(vi) below on reporting underRule 11(g);
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, theCash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with thebooks of account;
(d) In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Accounting Standardsspecified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, asamended;
(e) On the basis of the written representations received from the directors as on March 31,2025 taken on record by theBoard of Directors, none of the directors is disqualified as on March 31,2025 from being appointed as a director interms of Section 164 (2) of the Act;
(f) The modification relating to the maintenance of accounts and other matters connected therewith are as stated inthe paragraph (b) above on reporting under Section 143(3)(b) and paragraph (i)(vi) below on reporting under Rule
11(g);
(g) With respect to the adequacy of the internal financial controls with reference to these standalone Ind AS financialstatements and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to thisreport;
(h) In our opinion, the managerial remuneration for the year ended March 31, 2025 has been paid / provided by theCompany to its directors in accordance with the provisions of Section 197 read with Schedule V to the Act;
(i) With respect to the other matters to be included in the Auditor’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
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone IndAS financial statements - Refer Note 33 to the standalone Ind AS financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were anymaterial foreseeable losses;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fundby the Company;
iv. a) The management has represented that, to the best of its knowledge and belief as disclosed in the Note
44 (v) to the standalone Ind AS financial statements, no funds have been advanced or loaned orinvested (either from borrowed funds or share premium or any other sources or kind of funds) by theCompany to or in any other persons or entities, including foreign entities (“Intermediaries”), with theunderstanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directlyor indirectly lend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like onbehalf of the Ultimate Beneficiaries;
b) The management has represented that, to the best of its knowledge and belief as disclosed in the Note44 (vi) to the standalone Ind AS financial statements, no funds have been received by the Companyfrom any persons or entities, including foreign entities (“Funding Parties”), with the understanding,whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf of the FundingParty (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the UltimateBeneficiaries; and
c) Based on such audit procedures performed that have been considered reasonable and appropriate inthe circumstances, nothing has come to our notice that has caused us to believe that therepresentations under sub-clause (a) and (b) contain any material misstatement.
v. The Company has not declared or paid any dividend during the year and has not proposed final dividend forthe year;
vi. Based on our examination which included test checks, the Company has used accounting software formaintaining its books of account which has a feature of recording audit trail (edit log) facility and the samehas operated throughout the year for all relevant transactions recorded in the software except that, audit trailfeature is not enabled for certain changes made at application layer for the period April 10, 2024 till April 25,2024 and at database layer for the entire year, if any, using privileged / administrative access rights, asdescribed in Note 44 (xi) to the financial statements. Audit trail for deletion of logs performed by users havingsuch access has not been maintained by the Company. Further, during the course of our audit we did notcome across any instance of audit trail feature being tampered with, in respect of accounting software wherethe audit trail has been enabled. Additionally, the audit trail of previous year has not been preserved by theCompany as per the statutory requirements for record retention, as stated in the Note 44(xi) to the financialstatements.
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Aruna Kumaraswamy
Partner
Membership Number: 219350
UDIN: 25219350BMMABM3430
Place of Signature: Mumbai
Date: May 27, 2025