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Lux Industries Ltd.

BSE: 539542 Sector: Industrials
NSE: LUXIND ISIN Code: INE150G01020
BSE LIVE 15:40 | 25 Sep 1133.70 -46.05
(-3.90%)
OPEN

1157.00

HIGH

1157.00

LOW

1103.05

NSE 15:31 | 25 Sep 1133.40 -44.80
(-3.80%)
OPEN

1176.00

HIGH

1180.00

LOW

1085.05

OPEN 1157.00
PREVIOUS CLOSE 1179.75
VOLUME 1686
52-Week high 1316.60
52-Week low 614.50
P/E 41.88
Mkt Cap.(Rs cr) 2,863
Buy Price 0.00
Buy Qty 0.00
Sell Price 1133.70
Sell Qty 94.00
OPEN 1157.00
CLOSE 1179.75
VOLUME 1686
52-Week high 1316.60
52-Week low 614.50
P/E 41.88
Mkt Cap.(Rs cr) 2,863
Buy Price 0.00
Buy Qty 0.00
Sell Price 1133.70
Sell Qty 94.00

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 comprise the Balance Sheet as at March 31 2016 theStatement of Profit and Loss Cash Flow Statement for the year ended other and a summaryof significant explanatory information.

Management’s Responsibility for the Financial 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company Directors as well as evaluating the overallpresentation 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 reporting of the to theexplanations given to us the aforesaid financial statements give the information requiredby the 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 March 31 2016 and its Profit and Loss Cash Flow for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 (“theOrder”) issued by the Central Government of India in terms of sub-section(11) ofsection 143 of the Act we give in the “Annexure A” a statement on thematters 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 bestof our knowledge and belief were necessary for the purpose 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account

d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act as applicable.

e. On the basis of written representations received from the directors as on March 312016 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct.

f. With respect to the adequacy of the internal financial and controls over financialthe operating effectiveness of such controls refer to our separate Report in “AnnexureB”. Our report expresses an unmodified opinion on the adequacy and operatingeffectiveness of the Company’s internal financial controls over financial reporting.

g. With respect to the other matters to be included in the Independent Auditor’sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements.

ii. The Company did not have any long term contracts including derivative contracts forwhich there would be any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

For Sanjay Modi & Co
Chartered Accountants
FRN.-322295E
Prodyat Chaudhuri
Kolkata (Partner)
May 25 2016 Membership No:065401

“ANNEXURE A” to the Independent Auditor’s Report

(Referred to in paragraph 1 under “Report on Other Legal and RegulatoryRequirements” section of our report of even date): Report on Companies(Auditor’s Report) Order 2016 (‘the Order’) issued by the CentralGovernment in terms of Section 143(11) of the Companies Act 2013 (‘the Act’) ofLux Industries Limited (‘the Company’).

(i) (a) The Company has maintained 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. is In our opinionthe frequency of verification reasonable having regard to the size of the Company andnature of its business.

(c) According to the information and explanation given to us and the records examinedby us and based on the examination of conveyance deed provided to us we report that thetitle deeds comprising all the immovable properties of land and buildings which arefreehold are in the name of the Company at the balance sheet date.

(ii) As explained to us the inventories were physically verified during the year bythe 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.

(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 withrespect to investments made. However the company has not granted any loans or providedany guarantees and securities as stated in section 185 of the Companies Act 2013.

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

(vi) According to the information and explanation given to us the Company’sbusiness activities are not covered by the Companies (Cost Records and Audit) Rules 2014.

(vii) (a) The Company has generally been regular in depositing undisputed statutorydues including provident fund Employees State Insurance income tax sales tax servicetax customs duty value added tax cess and other material statutory dues applicable toit with the appropriate authorities though there has been slight delay in deposit of thesestatutory dues in some cases.

(b) According to the information and explanation given to us there were no undisputedamounts payable in respect of income tax sales tax service tax duty of customs valueadded tax provident fund Employees state insurance cess and any other materialstatutory dues were in arrears as at March 31 2016 for a period of more than six monthsfrom the date they become payable.

(c) According to the information and explanation given to us the details of dues ofsales tax service tax which have not been deposited by the Company as at March 31 2016on account of disputes are given below:

Name of the statute Natures of dues Amount (in Rs.) Period to which the amount relates Forum where dispute is pending
Tamil Nadu Sales Tax Act1959 Penalty 12295937.00 2004-05 Sales Tax Appellate Tribunal (Addl. Bench) Coimbatore
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 Act 1944 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 Act 1944 Excise Duty And Penalty 4779126.00 2012-13 Customs Excise and Service Tax Appellate Tribunal
The Central Excise Act 1944 Excise Duty And Penalty 19797310.00 2011-12 to 2012-13 Customs Excise and Service Tax Appellate Tribunal
Punjab VAT Act 2005 VAT and Penalty 1171439.00 2015-16 Deputy Excise and Taxation Commissioner (Appeals) Ludhiana
Rajasthan Value Added Tax Act 2003 VAT Interest and Penalty 2522131.00 2010-11 to 2015-16 The Appellate Authority-I Commercial Taxes Jaipur
Madhya Pradesh VAT Act 2002 Central Sales Tax 82818.00 2013-14 Deputy Commissioner Division-2 Indore (MP)

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to banks. TheCompany does not have any loans or borrowings from financial institutions or governmentand has not issued any debentures.

(ix) According to the information and explanation given to us the company has notraised money by way of initial public offer or further public offer and the term loanshave been applied by the Company during the year for the purpose for which they wereraised.

(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 relatedtransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

(xiv) According to the information and explanations given to us the company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review. Hence reporting under clause (xiv) ofCARO 2016 order is not applicable to the Company.

(xv) According to the information and explanation given to us and based on ourexamination of the records of the company during the year the company has not enteredinto any non-cash transactions with directors or persons connected to its directors.Accordingly clause 3(xv) of the order is 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
Kolkata (Partner)
May 25 2016 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”)

We have audited the internal financial controls over financial reporting of LuxIndustries Limited (“the Company”) as of March 31 2016 in conjunction with ouraudit of the financial statements of the Company for the ear ended on that 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” These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient the company’spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the

Companies Act 2013.

Auditor’s Responsibilities

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the “Guidance Note”) and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143 (10) of the Companies Act 2013 to the extentapplicable to an Audit of Internal Financial Controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial control system over financial reporting and their operatingeffectiveness. Our Audit of internal financial control over financial reporting includedobtaining an understanding of internal financial control assessing the risk that amaterial weakness exists and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor’s judgment including the assessment of the risk of material misstatement ofthe financial 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 controlssystem over financial reporting.

Meaning of Internal Financial Control Over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1)pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2)provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 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

In our opinion to the best of our information and according to the explanation givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over conduct of itsbusiness including adherence to financial reporting were operating effectively as atMarch 31 2016 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”.

For Sanjay Modi & Co
Chartered Accountants
FRN.-322295E
Prodyat Chaudhuri
Kolkata (Partner)
May 25 2016 Membership No:065401