We have audited the accompanying standalone Ind AS financial statements of NRB Industrial Bearings Limited (“the
Company”), which comprise the Balance sheet as at March 31, 2025, the Statement of Profit and Loss, including the
Statement of Other Comprehensive Income, the Statement of Cash Flow and the Statement of Changes in Equity for the year
then ended, and notes to the standalone Ind AS financial statements, including a summary of material 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 Ind AS
financial statements give the information required by the Companies Act, 2013, as amended (“the Act”) in the manner so
required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of
affairs of the Company as at March 31,2025, its profit including other comprehensive income, its cash flows and the changes
in 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), as
specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s
Responsibilities for the Audit of the Standalone Ind AS 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 together with the
ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of
Ethics. 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.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone
Ind AS financial statements for the financial year ended March 31,2025. These matters were addressed in the context of our
audit of the standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in
that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have
fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the standalone Ind AS financial statements
section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures
designed 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 for
our audit opinion on the accompanying standalone Ind AS financial statements.
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Key Audit Matter
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How our audit addressed the key audit matter
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Inventory - Provision for slow and non-moving inventory of work in progress and finished goods (as described in Note 10
and Note 2 (j) of the Standalone Ind AS financial statements)
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The Company is in the business of manufacturing industrial
bearings and has inventory balance amounting to
Rs. 2,331.59 lakhs as at March 31, 2025 as disclosed in
Note 10 to the standalone financial statements.
The Company has certain non-moving and slow-moving
work in progress and finished goods inventory as at March
31, 2025, lying at its factory. Management applies
judgement in determining the provision for such slow and
non-moving finished goods inventory based upon its
detailed analysis of old inventory using the ageing report of
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Our procedures included the following:
• We read the Company's accounting policy for
provisioning for obsolete and slow-moving/non-moving
inventories.
• We evaluated the design and tested the implementation
of internal controls including operating effectiveness of
such internal controls on the judgement exercised by
the management for provisions made and underlying
data, assumptions used and records maintained for
determination of saleability of slow moving and non-
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Key Audit Matter
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How our audit addressed the key audit matter
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such inventory, net realizable value, its physical condition,
future use and sales projections for the said inventory. The
determination of saleability of such slow/ non-moving
inventory requires management to rely on certain
assumptions and significant judgement. Accordingly, the
assessment of the provision for slow and non-moving
inventory has been considered as a key audit matter.
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moving finished goods including reasonableness of
sales projections;
• We performed audit procedures such as testing the
inventory ageing report, testing the reasonableness of
sales projections considered for future liquidation of the
slow-moving inventory and the realizable value of such
inventories based on historical sales data, orders in
hand etc. We also tested the appropriateness of the net
realizable value considered by management for the
slow and non-moving inventory by comparing the
inventory value with the subsequent sales prices of the
finished goods/recently realized prices;
• We observed the inventory count performed by
management as at the year-end on a sample basis and
assessed the physical condition of the inventories
segregated as slow moving/non-moving and compared
the same with the inventory listing to check
completeness;
• We assessed that the disclosures for slow and non¬
moving inventory are appropriate in accordance with
the Ind AS and Schedule III of the Act.
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Investments - Recoverability of Non-Current Investment in associates (as described in Note 7A and Note 2 (n) of the
Ind AS standalone financial statement)
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As at March 31, 2025, the carrying values of Company's
investment in associate entities amounted to Rs. 525.00
lakhs. The Company performs an annual impairment
assessment by comparing the carrying value of such
investments to their recoverable amounts in order to
determine whether any impairment provision is required.
For the purpose of such impairment assessment,
management determines the value in use by using
discounted forecasted cashflows of the associates and
considering the inherent nature of these calculations being
subject to uncertainty and judgement, the assessment of
impairment of investments in associates was determined to
be a key audit matter in our audit of the standalone financial
statements.
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Our procedures included the following:
• We read the accounting policies with respect to
valuation of investment and its impairment
assessment;
• We evaluated the design and implementation and
tested the operating effectiveness of controls over the
Company's process of impairment assessment and
approval of forecasts;
• We assessed the Company's valuation methodology
applied in determining the recoverable amount. We
assessed the assumptions around the key drivers of the
cash flow forecasts including projected sales value and
margins, discount rates, expected growth rates and
terminal growth rates used and also applied sensitivity
tests to the discounted cash flows and key assumptions
to determine the headroom available;
• We evaluated the objectivity and independence of the
internal experts and assessed their competence;
• We involved our internal experts to assess the
reasonableness of assumptions used in valuation of
investments;
• We tested the arithmetical accuracy of the models;
• We assessed that the disclosures are appropriate in
accordance with the Ind AS and Schedule III of the Act.
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Information Other than the Financial Statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the other information. The other information comprises the information
included 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 any
form of assurance conclusion thereon.
In connection with our audit of the standalone Ind AS financial statements, our responsibility is to read the other information
and, in doing so, consider whether such other information is materially inconsistent with the financial statements or our
knowledge obtained in the 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 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 the
preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, 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 the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also
includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the
assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of
appropriate 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 the
accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone 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 Ind AS financial statements, management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative
but 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 are
free 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 will
always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influesnce the economic decisions of users taken on
the basis of these standalone Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone Ind AS financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud
is 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 appropriate
in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether
the Company has adequate internal financial controls with reference to financial statements in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the
audit 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 are
required to draw attention in our auditor’s report to the related disclosures in the 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’s report. However, future events or conditions may cause the Company to cease to continue as a
going concern.
• Evaluate the overall presentation, structure and content of the standalone Ind AS financial statements, including the
disclosures, and whether the standalone Ind AS financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit 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 requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the standalone Ind AS financial statements for the financial year ended March 31,2025 and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the
public 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 in
terms of sub-section (11) of Section 143 of the Act, we give in the “Annexure 1” a statement on the matters specified in
paragraphs 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 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 it appears
from our examination of those books except for the matters stated in the paragraph (i)(vi) below on reporting under
Rule 11(g);
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the
Cash Flow Statement and 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 Companies (Indian Accounting Standards) Rules, 2015, as
amended;
(e) On the basis of the written representations received from the directors as on March 31,2025 taken on record by the
Board of Directors, none of the directors is disqualified as on March 31,2025 from being appointed as a director in
terms of Section 164 (2) of the Act;
(f) The modification relating to the maintenance of accounts and other matters connected therewith are as stated in
the 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 financial
statements and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this
report;
(h) In our opinion, the managerial remuneration for the year ended March 31, 2025 has been paid / provided by the
Company 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 Ind
AS 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 any
material foreseeable losses;
iii. There were no amounts which were 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 as disclosed in the Note
44 (v) to the standalone Ind AS financial statements, 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, whether, directly
or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
b) The management has represented that, to the best of its knowledge and belief as disclosed in the Note
44 (vi) to the standalone Ind AS financial statements, 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, whether, directly or indirectly, lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding
Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries; and
c) Based on such audit procedures performed that have been considered reasonable and appropriate in
the circumstances, nothing has come to our notice that has caused us to believe that the
representations 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 for
the year;
vi. Based on our examination which included test checks, the Company has used accounting software for
maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same
has operated throughout the year for all relevant transactions recorded in the software except that, audit trail
feature 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, as
described in Note 44 (xi) to the financial statements. Audit trail for deletion of logs performed by users having
such access has not been maintained by the Company. Further, during the course of our audit we did not
come across any instance of audit trail feature being tampered with, in respect of accounting software where
the audit trail has been enabled. Additionally, the audit trail of previous year has not been preserved by the
Company as per the statutory requirements for record retention, as stated in the Note 44(xi) to the financial
statements.
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
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