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Lux Industries Ltd.

BSE: 539542 Sector: Industrials
NSE: LUXIND ISIN Code: INE150G01020
BSE LIVE 13:37 | 13 Dec 1516.30 21.20
(1.42%)
OPEN

1500.45

HIGH

1524.80

LOW

1497.05

NSE 13:30 | 13 Dec 1522.40 18.90
(1.26%)
OPEN

1509.70

HIGH

1524.90

LOW

1499.00

OPEN 1500.45
PREVIOUS CLOSE 1495.10
VOLUME 234
52-Week high 1540.00
52-Week low 649.95
P/E 60.85
Mkt Cap.(Rs cr) 3,829
Buy Price 1516.30
Buy Qty 3.00
Sell Price 1523.95
Sell Qty 45.00
OPEN 1500.45
CLOSE 1495.10
VOLUME 234
52-Week high 1540.00
52-Week low 649.95
P/E 60.85
Mkt Cap.(Rs cr) 3,829
Buy Price 1516.30
Buy Qty 3.00
Sell Price 1523.95
Sell Qty 45.00

Lux Industries Ltd. (LUXIND) - Auditors Report

Company auditors report

To the Members of

Lux Industries Limited

Report on the Financial Statements

We have audited the accompanying financial statements of LUX INDUSTRIES LIMITED("the Company") which comprises of the Balance Sheet as at March 31 2017 theStatement of Profit and Loss Cash Flow Statement for the year ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements The Company's Board ofDirectors is responsible for the matters stated in Section 134(5) of the Companies Act2013 ("the Act") with respect to the preparation of these financial statementsthat give a true and fair view of the financial position financial performance and cashflows of the Company in accordance with the accounting principles generally accepted inIndia. 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 judgments 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 financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act and the Rules made there underincluding the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under Section 143(10) of the Act and other applicable authoritativepronouncements issued by the Institute of Chartered Accountants of India . Those Standardsand pronouncements require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement. An audit involves performing procedures to obtain auditevidence about the amounts and the disclosures in the financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Inmaking those risk assessments the auditor considers internal financial control relevantto the Company's preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2017 and its Profit and its Cash Flow for the year ended on that date.

Emphasis of Matter

Attention is invited to note 1(J) to the financial statements regarding change inaccounting policy of inventory valuation from the FIFO to Weighted Moving Average Methodconsistent with the best accounting practices resulting decrease in value of inventoriesby H96.19 lakhs. Consequently the net profit for the year is lower by the said amount. Hadthe company followed the FIFO method of inventory valuation the surplus for the yearended would have been higher by H96.19 lakhs. Our opinion is not qualified in respect ofthis matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act ("theOrder") and on the basis of such check of the books and records of the Company as weconsidered appropriate and according to the information and explanation given to us wegive in the "Annexure A" a statement on the matters specified in paragraphs 3and 4 of the Order.

2. As required by section 143(3) of the Act we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b. In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c. The Balance Sheet the Statement of Profit and Loss and theCash Flow Statement dealt with by this Report are in agreement with the books of accountd. In our opinion the aforesaid financial statements comply with the Accounting Standardsspecified under section133 of the Act. e. On the basis of written representations receivedfrom the directors as on March 31 2017 taken on record by the Board of Directors none ofthe directors is disqualified as on March 31 2017 from being appointed as a director interms of Section 164(2) of the Act. f. With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate Report in "Annexure B".

g. With respect to the matters to be included in the Auditor's Report in accordancewith Rule11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us: i. The Company hasdisclosed the impact if any of pending litigations as at March 31 2017 on its financialposition in its financial statements. -Refer Note No. 29 ii. The Company did not have anylong term contracts including derivative contracts for which there were any materialforeseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended March 312017.

iv. The Company has provided requisite disclosures in the financial statements as toholding as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 on the basis of information available with the Company. Basedon audit procedures and relying on managements representation we report that disclosuresare in accordance with the books of accounts maintained by the Company and produced to usby the Management. - Refer Note No. 48.

For Sanjay Modi & Co
Chartered Accountants
FRN.-322295E
Prodyat Chaudhuri
Place: Kolkata (Partner)
Dated: 25.05.2017 Membership No: 065401

"Annexure A" to the Independent Auditor's Report

Referred to in paragraph 9 of the Independent Auditors Report of even date to themembers of Lux Industries Limited on the financial statements as of and for the year endedMarch 31 2017:

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) The fixed Assets have been physically verified by the management during the yearand no material discrepancies have been noticed on such verification. In our opinion thefrequency of verification is reasonable.

(c) The title deeds of immovable properties are held in the name of Company.

(ii) (a) As explained to us the inventories were physically verified during the yearby the management (except material lying with third parties and goods in transit) atreasonable intervals and no material discrepancies were noticed on physical verification.

(iii) The Company has not granted any loans secured or unsecured to Companies FirmsLimited Liability Partnerships or other parties covered in the Register maintained undersection 189 of the Act. Accordingly the provisions of clause 3(iii) (a) to (c) of theorder are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 186 of the Companies Act 2013 inrespect of making investments. However the company has not granted any loans or providedany guarantees and securities.

(v) According to the information and explanation given to us the Company has notaccepted any deposits from the public.

(vi) According to the information and explanation given to us the Central Governmentof India has not specified the maintenance of cost records under sub-section (1) ofsection 148 of the Act for the products of the Company.

(vii) (a) According to the information and explanation given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues in respect of sales tax including value added tax employeesstate insurance provident fund and income tax though there has been a slight delay in afew cases and is regular in depositing undisputed statutory dues including service taxduty of customs and other material statutory dues as applicable with the appropriateauthorities.

(b) According to the information and explanation given to us and the records of theCompany examined by us there are no dues of Income tax and customs duty which have notbeen deposited on account of any dispute. The particulars of dues of sales tax includingvalue added tax duty of excise service tax provident fund as at March 31 2017 whichhave not been deposited on account of dispute are as follows:

Name of the statute Natures of dues Amount Period to which the amount relates Forum where dispute is pending
West Bengal Sales Tax Act Penalty 3083684.00 2003-04 High Court Kolkata
West Bengal Sales Tax Act Penalty 1917202.00 2004-05 High Court Kolkata
The Central Excise Act1944 Excise Duty and Penalty 10051976.00 2011-12 Customs Excise and Service Tax
Appellate Tribunal
Service Tax Service Tax and Penalty 13622826.00 2007-08 to 2012-13 Customs Excise and Service Tax Appellate Tribunal
The Central Excise Act1944 Excise Duty and Penalty 4779126.00 2012-13 Customs Excise and Service Tax Appellate Tribunal
The Central Excise Act1944 Excise Duty and Penalty 19797310.00 2011-12 to 2012-13 Customs Excise and Service Tax Appellate Tribunal
Punjab Vat Act2005 Vat and Penalty 1171439.00 2015-16 Deputy Excise and taxation Commissioner (Appeals) Ludhiana
Employees Provident Fund Act1952 Contribution to Provident Fund 111067801.00 2002-03 to 2005-06 Division Bench Kolkata High court

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of dues to banks. The Company has not takenany loan either from financial institutions or from the government and had not issued anydebentures.

(ix) According to the records of the Company examined by us and the information andexplanations given to us the term loans have been applied by the Company during the yearfor the purpose for which they were raised. The Company has not raised money by way ofinitial public offer or further public offer.

(x) To the best of our knowledge and according to the information and explanation givento us no fraud by the Company and no material fraud on the Company by its officers oremployees has been noticed or reported during the year.

(xi) According to the records of the Company examined by us and the information andexplanations given to us the managerial remuneration has been paid as per the provisionsof section 197 read with schedule V to the Companies Act 2013.

(xii) The Company is not a Nidhi Company. Therefore reporting under clause (xii) ofthe Order is not applicable to the Company.

(xiii)In our opinion and according to the information and explanation given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

(xiv)According to the information and explanations given to us by management theCompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year under review and hence reporting underclause (xiv) of CARO 2016 order is not applicable to the Company.

(xv) In our opinion and according to the information and explanation given to usduring the year the Company has not entered into any non-cash transactions with directorsor persons connected with him. Accordingly the provisions of Section 192 of the CompaniesAct 2013 are not applicable.

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

For Sanjay Modi & Co
Chartered Accountants
FRN.-322295E
Prodyat Chaudhuri
Place: Kolkata (Partner)
Dated: 25.05.2017 Membership No: 065401

"Annexure B" to the Independent Auditor's Report

"ANNEXURE B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF LUX INDUSTRIES LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013("the act") i. We have audited the internalfinancial controls over financial reporting of Lux Industries Limited ("theCompany") as on March 31 2017 in conjunction with our audit of the financialstatements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls ii. The Company'smanagement is responsible for establishing and maintaining internal financial controlsbased on "the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Control over Financial Reporting issued by theInstitute of Chartered Accountants of India" These responsibilities include thedesign implementation and maintenance of adequate internal financial control that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditor's Responsibilities iii Our responsibility is to express an opinion on theCompany's internal financial controls over financial reporting based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControl over Financial Reporting (the "Guidance Note") and the Standards onAuditing issued by ICAI and deemed to be prescribed under section 143 (10) of theCompanies Act 2013 to the extent applicable to an Audit of Internal Financial Controlboth applicable to an Audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate Internal Financial Controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

iv. Our audit involves performing procedures to obtain audit evidence about theadequacy of the Internal Financial Control System over financial reporting and theiroperating effectiveness. Our audit of Internal Financial Controls over financial reportingincluded obtaining an understanding of Internal Financial Control over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of the riskof material misstatement of the financial statements whether due to fraud or error.

v. 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 systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting vi. A Company'sInternal Financial Control over financial reporting is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof financial statement for external purpose in accordance with Generally AcceptedAccounting Principles. A company's internal financial control over financial reportingincludes those policies and procedures that (1) pertain to the maintenance of recordsthat in reasonable detail accurately and fairly reflect the transaction and dispositionsof the assets of the company; (2) provide reasonable assurance that transaction arerecorded as necessary to permit preparation of financial statements in accordance withGenerally Accepted Accounting Principles and that receipts and expenditures of thecompany are being made only in accordance with authorization of management and directorsof the company; and (3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting vii.Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion viii. In our opinion to the best of our information and according to theexplanation given to us the Company has in all material respects an adequate InternalFinancial Controls System over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".

For Sanjay Modi & Co
Chartered Accountants
FRN.-322295E
Prodyat Chaudhuri
Place: Kolkata (Partner)
Dated: 25.05.2017 Membership No: 065401