You are here » Home » Companies » Company Overview » Lumax Industries Ltd

Lumax Industries Ltd.

BSE: 517206 Sector: Auto
NSE: LUMAXIND ISIN Code: INE162B01018
BSE 00:00 | 18 Apr 1796.60 6.80
(0.38%)
OPEN

1800.00

HIGH

1800.00

LOW

1756.05

NSE 00:00 | 18 Apr 1803.80 16.45
(0.92%)
OPEN

1808.00

HIGH

1811.00

LOW

1768.00

OPEN 1800.00
PREVIOUS CLOSE 1789.80
VOLUME 119
52-Week high 2585.00
52-Week low 1386.00
P/E 19.62
Mkt Cap.(Rs cr) 1,680
Buy Price 1773.00
Buy Qty 1.00
Sell Price 1796.60
Sell Qty 13.00
OPEN 1800.00
CLOSE 1789.80
VOLUME 119
52-Week high 2585.00
52-Week low 1386.00
P/E 19.62
Mkt Cap.(Rs cr) 1,680
Buy Price 1773.00
Buy Qty 1.00
Sell Price 1796.60
Sell Qty 13.00

Lumax Industries Ltd. (LUMAXIND) - Auditors Report

Company auditors report

To

The Members of

Lumax Industries Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying Standalone Ind AS financial statements of LumaxIndustries Limited (‘the Company') which comprise the Balance Sheet as at 31 March2018 the Statement of Profit and Loss the Statement of Changes in Equity and theStatement of Cash Flows and for the year then ended and a summary of the significantaccounting policies and other explanatory information.

Management's responsibility for the Standalone 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 Standalone Ind AS financial statements that give a true and fair view of the stateof affairs profit and other comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) prescribed under Section 133 of theAct.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Auditor's responsibility

Our responsibility is to express an opinion on these Standalone Ind AS financialstatements based on our audit.

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 thereunder.

We conducted our audit of the Standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the Standalone Ind ASfinancial statements.

We are also responsible to conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the entity's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in the auditor's report tothe related disclosures in the financial statements or if such disclosures areinadequate to modify the opinion. Our conclusions are based on the audit evidenceobtained up to the date of the auditor's report. However future events or conditions maycause an entity to cease to continue as a going concern.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS state ofaffairs of the Company as at 31 March 2018 its profit and other comprehensive incomechanges in equity and its cash flows for the year ended on that date.

Other Matters

The comparative financial information of the Company for the year ended 31 March 2017and the transition date opening balance sheet as at 01 April 2016 included in theseStandalone Ind AS financial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the Companies (Accounting Standards)Rules 2006 audited by the predecessor auditor whose report for the year ended 31 March2017 and 31 March 2016 dated 13 May 2017 and 12 May 2016 respectively expressed anunmodified opinion on those Standalone financial statements as adjusted for thedifferences in the accounting principles adopted by the Company on transition to the IndAS which have been audited by us.

Our opinion is not modified in respect of this matter.

Report on other legal and regulatory requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the ‘Annexure A' a statement on the matters specified in theparagraph 3 and 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 of account as required by law have been kept by theCompany so far as appears from our examination of those books;

c. The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement and theStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account;

d. In our opinion the aforesaid Standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under section 133 of the Act; e. On the basis ofwritten representations received from the directors as on 31 March 2018 taken on record bythe Board of Directors none of the directors is disqualified as on 31 March 2018 frombeing appointed as a director in terms of Section 164 (2) of the Act;

f. With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B"; and

g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its Standalone Ind AS financial statements – Refer to note 42 of thestandalone Ind AS financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

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

iv. The disclosures in the financial statements regarding holdings as well as dealingsin specified bank notes during the period from

08 November 2016 to 30 December 2016 have not been made since they do not pertain tothe financial year ended 31 March 2018. However amounts as appearing in the auditedStandalone Ind AS financial statements for the period ended 31 March 2017 have beendisclosed.

For B S R & Associates LLP

Chartered Accountants

Firm registration number: 116231W/W-100024

Manish Gupta

Partner

Membership No.: 095037

Place: New Delhi

Date: 28 May 2018

Annexure A to the Independent Auditor's report

The Annexure referred to in our Independent Auditor's Report to the members of theCompany on the Standalone Ind AS financial statements for the year ended 31 March 2018 wereport that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets inwhich all fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were physically verified by themanagement in the previous year. However no such verification has been made in thecurrent year. In our opinion the periodicity of physical verification is reasonablehaving regard to the size of the Company and the nature of its assets. No discrepancieswere noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company inventory except stock lying with third partiesand goods in transit has been physically verified by the management during the year. Inour opinion the frequency of such verification is reasonable. Confirmations have beenobtained for stock lying with third parties at the year-end. According to the informationand explanations given to us the discrepancies noticed on physical verification ofinventory as compared to book records were not material and have been properly dealt within the books of account.

(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 Companies Act 2013.

(iv) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not entered into anytransactions in respect of loans investments guarantees and security which are coveredunder section 185 and 186 of the Companies Act 2013. Accordingly provisions of paragraph3(iv) of the Order are not applicable to the Company.

(v) The Company has not accepted any deposits covered under Section 73 to 76 or anyother provisions of the Act and the rules framed thereunder.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules prescribed by the Central Government for maintenance of cost records undersub-section (1) of section 148 of the Companies Act 2013 in respect of its products andare of the opinion that prima facie the prescribed accounts and records have been madeand maintained. However we have not made a detailed examination of such records with aview to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund Employees StateInsurance Income-tax Sales tax Service tax Duty of customs Duty of excise Valueadded tax Cess and other statutory dues have been regularly deposited during the year bythe Company with the appropriate authorities in all cases during the year.

(b) According to the information and explanations given to us except as stated belowthere are no dues of Income tax Sales tax Service tax Duty of customs Duty of exciseor Value added tax that have not been deposited with the appropriate authorities onaccount of any dispute.

Name of the Statute Nature of the dues Amount Rs. ( in lakhs) Amount paid (` in lakhs) Period to which amount relates Forum where dispute is pending
Finance Act 1994 Demand for disallowance of Cenvat credit in respect of service tax paid on catering and CHA (export) services 9.26 - 2010-11 and 2012-13 Assistant Commissioner of Excise
Name of the Nature of the dues Amount Amount paid Period to which Forum where dispute is
Statute ( Rs. in Lakhs) ( Rs. in Lakhs) amount relates pending
Finance Act 1994 Demand for disallowance of Cenvat credit in respect of outward transportation 12.84 - 2013-14 Central excise and service tax appellate tribunal
Finance Act 1994 Demand for disallowance of Cenvat credit in respect of outward transportation 2.83 - 2014-15 and 2015-16 Commissioner of Excise (Appeals)
Customs Act 1962 Demand on account of classification of certain imported goods 6.51 - 2016-17 Commissioner of customs (Appeals)
Customs Act 1962 Demand for wrongful availment of duty drawback 1.16 - 2015-16 Commissioner of customs (Appeals)
Customs Act 1962 Demand for wrongful availment of duty drawback. 42.61 - 2003-04 to 2014-15 Assistant commissioner of customs
Income tax Act 1961 Disallowance of royalty on account of arm length's price. 405.67 - Assessment year 2011-12 Income tax appellate tribunal
Central Sales Tax Act 1961 Demand against non- submission of various Forms 4.97 0.50 2007-08 Commissioner of Sales tax (Appeals)
Central Sales Tax Act 1961 Demand against non- submission of various Forms 21.40 7.00 2010-11 Joint Commissioner of Sales tax (Appeals)

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

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

(x) According to the information and explanations given to us no material fraud by thecompany or on the Company by its offcers or employees has been noticed or reported duringthe year.

(xi) According to the information and explanations given to us and based on ourexamination of the records the Company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company.

(xiii) According to information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable. The details of suchrelated party transactions have been disclosed in the standalone Ind AS financialstatements as required by applicable accounting standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with directors. Accordingly paragraph3(xv) of the Order is not applicable.

(xvi) In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For B S R & Associates LLP

Chartered Accountants

Firm registration number: 116231W/W-100024

Manish Gupta

Partner

Membership No.: 095037

Place: New Delhi

Date: 28 May 2018

Annexure B to the Independent Auditor's Report to the Members of even date on theStandalone Ind AS financial statements of Lumax Industries Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section (3) ofSection 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls with reference to financial statementsof Lumax Industries Limited ("the Company") as of 31 March 2018 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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 FinancialReporting' issued 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 effcientconduct of its business including adherence to company's policies the safeguarding ofits 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 Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note on ‘Audit of Internal Financial Controls OverFinancial Reporting' (the "Guidance Note") and the Standards on Auditing issuedby Institute of Chartered Accountants of India ("ICAI") and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls with reference to financial statementswas established and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting with reference tofinancial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to financial statements included obtaining an understanding ofinternal financial controls assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error.

We believe that the audit evidence we have obtained is suffcient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls withreference to financial statements.

Meaning of internal financial controls with reference to financial statements

A company's internal financial control over financial reporting with reference tofinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sinternal financial control over financial reporting includes those policies and proceduresthat (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) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent Limitations of internal financial controls with reference to financialstatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial control over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial control were operating effectively as at 31 March 2018 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note issued by the ICAI.

For B S R & Associates LLP

Chartered Accountants

Firm registration number: 116231W/W-100024

Manish Gupta

Partner

Membership No.: 095037

Place: New Delhi

Date: 28 May 2018