You are here » Home » Companies » Company Overview » Lexus Granito (India) Ltd

Lexus Granito (India) Ltd.

BSE: 535001 Sector: Consumer
NSE: LEXUS ISIN Code: INE500X01013
BSE 05:30 | 01 Jan Lexus Granito (India) Ltd
NSE 00:00 | 16 May 69.90 2.00
(2.95%)
OPEN

71.20

HIGH

71.20

LOW

69.00

OPEN
PREVIOUS CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty
OPEN
CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty

Lexus Granito (India) Ltd. (LEXUS) - Auditors Report

Company auditors report

To

The Members of

LEXUS GRANITO INDIA LIMITED

Morbi

Opinion

We have audited the standalone financial statements of LEXUS GRANITO INDIA LIMITED("the company") which comprise the Balance Sheet as at 31 March 2021 and theStatement of Profit and Loss and statement of cash flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the company as at March 31 2021 and its profit and its cash flows for the yearended on that date.

Basis of 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 ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key Audit Matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matter to be communicated in our report.

S. No. Key Audit Matters Auditor’s Response
1 Repayment of Dues to Financial Institution /NBFC/Bank Our audit procedures include the following:
The Company failed to repay credit facilities availed in accordance with terms of agreement entered with lenders. ? Understand the different types of credit facilities obtained by the company including agreements entered with lenders in discussion with management.
? Ascertained types of repayment required to be made by the company to fulfill non compliance in terms of agreement entered by the company with lenders.
? Checked repayment made by the during the period under audit in connection with repayment agreement in which non compliance is found.
? Discussed the non-compliance and its impact with management in terms of financial visibility of company and informed management about the negative impact on credit Worthiness the Company.
2 Payment of Trade Liabilities
The Company has written off a significant amount of trade Creditors during the period under Audit. Our audit procedures for the verification of trade liabilities include the following:
? Understanding of types/Nature of trade liabilities & procedural aspects followed by the company related to settlement of its trade liabilities.
? Evaluation of settlement or payment to the creditors which includes verification of balance written off of the creditors by the company to whom no payment is required to be made.
? Discussion with management in regards to verification or third-party confirmation for the parties in which significant balance payable is written off and booked as income. Management reply is this regard found unjustified. A further detail of the parties in which balance written off is booked is disclosed by management in point no 11 of Note 1(C) of Notes to the Accounts.

Information Other than the Standalone Financial Statements and Auditor’s ReportThereon

The Company’s Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board’s Report including Annexures to Board’s ReportBusiness Responsibility Report Corporate Governance and Shareholder’s Informationbut does not include the standalone financial statements and our auditor’s reportthereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our 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.

To express an opinion on these financial statements based on our audit. We have takeninto account the provisions of the Act the accounting and auditing standards and matterswhich are required to be included in the audit report under the provisions of the Act andthe Rules there under. Those Standards require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.

Responsibilities of the Management and Those Charged with Governance for the StandaloneFinancial Statements

The Company’s Board of Directors is responsible for the matters in section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesestandalone 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. This responsibility also includes the maintenance of adequateaccounting records in accordance with the provision of the Act for safeguarding of theassets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements Board of Directors is responsible for assessingthe Company’s ability to continue as going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so. Boards of Directors are responsible foroverseeing the Company’s financial reporting process.

Auditor’s Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free form material misstatement whether due to fraud or errorand to issue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decision of users taken on thebasis of these financial statements.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditors’ 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 paragraph 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 purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books and proper returns adequatefor the purposes of our audit have been received from the branches not visited by us.

c) The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account and the returns receivedfrom the branches not visited by us.

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

e) On the basis of written representations received from the directors as on 31 March2021 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2021 from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"

g) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditor’s) Rules 2014 in ouropinion and to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition.

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

iii. There were no amounts which required to be transferred to the Investor Educationand Protection Fund.

Place: Morbi ASHOK HOLANI AND COMPANY
Chartered Accountant
Dated: 30.06.2021 FRN : 009840C
Sd/-
RAHUL JANGIR
Partner
Membership No. 435804
UDIN: 21435804AAAADN7936

Annexure A referred to in paragraph 7 of our report of even date to the members ofLEXUS GRANITO (INDIA) LIMITED on the financial statements of the company for the yearended March 31 2021.

On the basis of the information and explanation given to us during the course of ouraudit we report that:

1. a) The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

b) According to the information and explanations given to us and based on the recordsof the company examined by us fixed assets have been physically verified by themanagement at reasonable intervals; and no material discrepancies were noticed on suchverification.

c) According to the information and explanations given to us and based on the recordsof the company examined by us the total assets of the company includes various immovableproperties and the title deeds of the immovable properties held are in the name of thecompany.

2. According to the information and explanations given to us and based on the recordsof the company examined by us physical verification of inventory has been conducted atreasonable intervals by the management and no material discrepancies were noticed on suchverification.

3. The company has granted unsecured loan amounting to Rs.0.58 Lacs to companiesfirms Limited Liability Partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013.

a) All terms and conditions are as per the benefits of company and are not prejudicialto the company’s Interest

b) Schedule of repayment of principal and interest has been stipulated and receipts areregular.

c) There is no such amount which overdue more than 90 Days of is above mentioned loan.

4. According to the records of the company examined by us and as per the informationand explanations given to us the company has complied with the provisions of Section 185and 186 of the Companies Act 2013 in respect of grant of loans making investments andproviding guarantees and securities as applicable.

5. The company has not accepted any deposits from the public covered under section 73to 76 of the Companies Act 2013.

6. As informed to us the Central Government has not prescribed maintenance of costrecords under sub-section (1) of section 148 of the Companies Act 2013.

a) According to the information and explanations provided to us and based on therecords of 7. the company examined by us the company is not regular in depositingundisputed statutory dues including goods and service tax Tax deducted at source Taxcollection at source cess and any other statutory dues to the appropriate authorities.According to the information and explanations given to us following undisputed amountswere payable in respect of the above were in arrears as on 31st march 2021 for a periodof more than six months from the date on when they become payable

Nature of Tax Period Amount (In Lakh)
Tax collected at Source 2017-18 11.41
Coal Cess 2017-18 32.22
Excise Duty 2016-17 24.32
Tax Deducted at Source (Demand) 2011-21 43.11
CST under Karsamdhan Yojna 2011-13 5.36
Total 116.42

b) According to the information and explanations given to us and based on the recordsof the company examined by us there are no outstanding dues of Income tax or Sales tax orService tax or Duty of Customs or duty of excise or value added tax which should bedeposited on account of any dispute except as mentioned below:

Name of the statute Nature of Dues Period Forum where dispute is pending Outstanding Amount involved (Rs. In Lakh)
Income Tax Act Income Tax 2015-16 CIT (A) 64.82
Income Tax Act Income Tax 2016-17 CIT (A) 288.59
Income Tax Act Income Tax 2018-19 CPC 105.80

Grand Total

459.21

8. According to the information and explanations given to us and based on the recordsof the company examined by us the company has made defaults in repayment of loans orborrowing/interest to a financial institution bank Government or dues to debentureholders. Details as follows: -

S.no Particulars Type of Institution Amount of default (Rs. In Lakh) Period of Default
1. Mas Finance Service Ltd NBFC 50.96 10 Months
2. AAC SARL Debenture Holders 39.87 18 months
320.00 12 months
320.00 9 months
46.40 12 months
46.40 9 months
Grand Total 823.63

9. According to the information and explanations given to us and based on the recordsof the company examined by us company has not raised money by way of initial public offerduring the year. Hence clause 3(ix) of the Order is not applicable to it.

10. During our examination of the books and records of the company carried inaccordance with the auditing standards generally accepted in India we have neither comeacross any instance of fraud by the company or on the company by its officers or employeesnoticed or reported during the course of our audit nor have we been informed of any suchinstance by the Management.

11. According to the records of the company examined by us and as per the informationand explanations given to us the company has complied with the provisions of Section 197read with Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us thecompany is not a Nidhi Company. Hence clause 3(xii) of the Order is not applicable to it.

13. According to the information and explanations given to us and based on the recordsof the company examined by us the company is in compliance with Sections 177 and 188 ofCompanies Act 2013 where applicable rules and where applicable for all transactionswith the related parties and the details of the related party transaction have beendisclosed in the financial statements in note no. 25.11a and 25.11bas required by theapplicable accounting standards.

14. According to the information and explanations given to us and based on the recordsof the company examined by us the company has not made any preferential allotment orprivate placement of shares during the year. Hence clause 3(xiv) of the Order is notapplicable to it.

15. According to the records of the company examined in course of our audit and as perinformation and explanations given to us the company has not entered in any non-cashtransaction with directors or persons connected with him. Hence provisions of Section 192are not applicable to the company.

16. According to information and explanations provided to us and on the basis ofrecords of the company examined by us the company is not required to be registered undersection 45-IA of the Reserve Bank of India Act 1934.

Place: Morbi ASHOK HOLANI AND COMPANY
Chartered Accountant
Dated: 30.06.2021 FRN : 009840C
Sd/-
RAHUL JANGIR
Partner
Membership No. 435804
UDIN: 21435804AAAADN7936

Annexure B referred to in paragraph 8(g) of our report of even date to the members ofLEXUS GRANITO INDIA LIMITED on the Financial Statements of the company for the year endedMarch 31 2021.

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 LEXUSGRANITO INDIA LIMITED. ("The Company") as of 31 March 2021 in conjunctionwith our audit of the financial statements of the Company for the year 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 (‘ICAI’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors’ Responsibility

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 controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. 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.

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 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 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 31 March 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

Place: Morbi ASHOK HOLANI AND COMPANY
Chartered Accountant
Dated: 30.06.2021 FRN : 009840C
Sd/-
RAHUL JANGIR
Partner
Membership No. 435804
UDIN: 21435804AAAADN7936

.