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Lux Industries Ltd.

BSE: 539542 Sector: Industrials
NSE: LUXIND ISIN Code: INE150G01020
BSE 00:00 | 04 Aug 1126.70 6.10
(0.54%)
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1112.00

HIGH

1138.00

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1112.00

NSE 00:00 | 04 Aug 1130.35 7.70
(0.69%)
OPEN

1128.30

HIGH

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LOW

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OPEN 1112.00
PREVIOUS CLOSE 1120.60
VOLUME 573
52-Week high 1680.00
52-Week low 812.80
P/E 22.58
Mkt Cap.(Rs cr) 2,845
Buy Price 1114.30
Buy Qty 10.00
Sell Price 1126.70
Sell Qty 2.00
OPEN 1112.00
CLOSE 1120.60
VOLUME 573
52-Week high 1680.00
52-Week low 812.80
P/E 22.58
Mkt Cap.(Rs cr) 2,845
Buy Price 1114.30
Buy Qty 10.00
Sell Price 1126.70
Sell Qty 2.00

Lux Industries Ltd. (LUXIND) - Auditors Report

Company auditors report

To the Members of

Lux Industries Limited

Report on the audit of Standalone Ind AS financial statements

Opinion

We have audited the standalone financial statements of Lux Industries Limited("the Company") which comprise the balance sheet as at 31st March 2019 and thestatement of profit and loss including Other Comprehensive Income statement of changes inequity and statement of cash flows for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation for the year ended on that date (hereinafter referred to as "Ind ASfinancial statements").

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 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2019 and profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance withthe Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI)together with the independence ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate 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 financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matter described below to be the key audit matters to be communicatedin our report.

Revenue Recognition

We have identified this as an area of importance because the Company's revenue is amaterial item in view of adoption of Ind AS 115 "Revenue from Contracts withCustomers".

The application of the new revenue accounting standard involves certain key judgementsrelating to identification of distinct performance obligations determination oftransaction price of the identified performance obligations the appropriateness of thebasis used to measure revenue recognised over a period and disclosures thereof.

Our audit procedures included but were not limited to:

• Evaluation of the Company's accounting principles in relation to implementationof the new revenue accounting standard;

• Created an understanding of the Company's routines and internal controlsassociated with revenue recognition;

• Examination of a selection of transactions to ensure that they have beenreported correctly according to agreements and in the correct periods;

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in Other Section of Annual Report but doesnot include the financial statements and our auditor's report thereon.

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 ouraudit of the standalone financial statements our responsibility is to read the otherinformation identified above and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit 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.

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 Act with respect to the preparation of these Standalone Ind AS financialstatements that gives a true and fair view of the financial position financialperformance Changes in Equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsprescribed under section 133 of the Act.

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 implementation and maintenance of 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 gives a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statementsmanagementisresponsibleforassessingtheCompany's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Ind AS financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal controls relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe Company has adequate internal financial control system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the ability ofthe Company to continue as a going concern. If we conclude that a material uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the Ind AS financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the Standalone IndAS financial statements including the disclosures and whether the Standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of financial statements of the currentperiod and are therefore the key audit matters. We describe these matters in our auditor'sreport unless law or regulation precludes public disclosure about the matter or when inextremely rare circumstances we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

I. 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 Companies Act 2013 and according to the information and explanations given to us andalso on the basis of such checks as we considered appropriate we give in the"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

II. 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 purposes 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 Lossincluding Other Comprehensive Income the Statement of Changes in Equity and theStatements of Cash Flows dealt with by this report are in agreement with the books ofaccount; d. In our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards specified under section 133 of the Act read with rule 7 of theCompanies (Accounts) Rules 2014; e. On the basis of the written representations receivedfrom the directors as on March 31 2019 and taken on record by the Board of Directorsnone of the directors is disqualified as on March 31 2019 from being appointed as adirector in terms of section 164 (2) of the Act; f. With respect to the adequacy of theinternal financial controls over financial reporting of the

Company and the operating effectiveness of such controls refer to our separate Reportin "Annexure B". g. With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of section 197(16) of the Act asamended: In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act. h. With respect tothe other matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us: i. The Company has disclosedthe impact of pending litigations on its financial position in its financial statements(Refer Note no. 31 of the Ind AS financial statements). 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 betransferred to the Investor Education and Protection Fund by the Company.

For S K AGRAWAL AND CO
Chartered Accountants
Firm Registration No.-306033E
Sd/-
Sandeep Agrawal
Place: Kolkata (Partner)
Dated: 22nd April 2019 Membership No. 058553

Annexure-A to the Independent Auditors' Report

The Annexure referred to in our Independent Auditor's Report to the members of LuxIndustries Limited (the Company) on the standalone Ind AS financial statements for theyear ended on March 31 2019. We report that: i. (a) The Company has maintained properrecords showing full particulars including quantitative details and situation of fixedassets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to information and explanation 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. The inventories have been physically verified duringthe year by the management at regular intervals (except for materials lying with thirdparties which have substantially been confirmed by such third parties at the year end). Inour opinion and according to the information and explanations given to us no materialdiscrepancies were noticed on physical verification. iii. The Company has not granted anyloans secured or unsecured to Companies Firms Limited Liability Partnerships or otherparties covered in the register maintained under section 189 of the Companies Act 2013.Accordingly paragraph 3(iii)(a) 3(iii)(b) and 3(iii)(c) of the Order is not applicableto the Company. iv In our opinion and according to the information and explanations givento us the Company has complied with the provisions of sections 185 and 186 of theCompanies Act 2013 with respect to Loans and Advances made guarantee given andinvestment made. v. According to the information and explanations given to us the Companyhas not accepted any deposits from the public. vi. According to the information andexplanation given to us the Central Govt. of India has not specified the maintenance ofcost records under sub section (1) of section 148 of the Act for the product of theCompany. vii According to the information and explanations given to us in respect ofstatutory dues: (a) The Company has been regular in depositing undisputed statutory duesincluding Provident Fund Employees State Insurance Income Tax Service Tax Sales TaxValue Added Tax duty of Custom duty of Excise Cess GST and other statutory dues withthe appropriate authorities during the year. According to the information and explanationsgiven to us no undisputed amounts payable in respect of the aforesaid dues wereoutstanding as at 31st March 2019 for a period of more than six months from the date theybecame payable.

(b) According to the information and explanations given to us there are no dues ofincome tax and duty of customs which have not been deposited with the appropriateauthorities on account of any dispute. However according to information and explanationsgiven to us the following dues of service tax sales tax duty of excise and value addedtax have not been deposited by the Company on account of disputes:

Name of the Statue Nature of dues Amount (H in Lakhs) Period to which amount relates Forum where the dispute is pending
West Bengal Sales Tax Act Penalty 30.84 2003-04 High court Kolkata
West Bengal Sales Tax Act Penalty 19.17 2004-05 High court Kolkata
Punjab Vat Act 2005 Vat and Penalty 11.71 2002-03 to 2005-06 Division Bench Kolkata High court
The Finance Act 1994 Service Tax and Penalty 136.23 2007-08 to2012-13 Customs Excise and Service Tax Appellate Tribunal
The Central Excise Act 1944 Excise Duty and Penalty 47.79 197.97 2012-13 2011-12 to 2012-13 Customs Excise and Service Tax Appellate Tribunal
100.52 2011-12

viii. In our opinion and according to information and explanations given by themanagement we are of the opinion that the Company has not defaulted in the repayment ofdues to financial institution and banks. The Company does not have any loans or borrowingsfrom Government and has not issued any debentures. ix. To the best of our knowledge andbelief and according to the information and explanations given to us the term loan havebeen applied by the Company during the year for the purpose for which they were raised.The Company did not raise any money by way of initial public offer or further public offer(including debt instruments) during the year. x. According to the information andexplanations given to us no material fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the year. xi. According to theinformation and explanations given to us the Company has paid/provided for managerialremunerations in accordance with the requisite approvals mandated by the provisions of Sec197 read with Schedule V to the Act. xii. In our opinion and according to the informationand explanations given to us the Company is not a Nidhi company. Accordingly paragraph3(xii) of the Order is not applicable. xiii. According to the information and explanationsgiven to us and based on our examination of the records of the Company transactions withthe related parties are in compliance with sections 177 and 188 of the Act whereapplicable and details of such transactions have been disclosed in the standalone Ind ASfinancial statements as required by the applicable Indian accounting standards. xiv.According to the information and explanations given to us and based on our examination ofthe records the Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year. xv. According to theinformation and explanations given to us and based on our examination of the records ofthe Company the Company has not entered into non-cash transactions with directors orpersons connected with them. Accordingly paragraph 3(xv) of the Order is not applicable.xvi. The Company is not required to be registered under section 45-IA of the Reserve Bankof India Act 1934.

For S K AGRAWAL AND CO
Chartered Accountants
Firm Registration No.-306033E
Sd/-
Sandeep Agrawal
Place: Kolkata (Partner)
Dated: 22nd April 2019 Membership No. 058553

Annexure-B to the Independent Auditors' Report

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 2019 in conjunction withour audit of the standalone Ind AS financial statements of the Company for the year endedon 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 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 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. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 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 2019 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.

For S K AGRAWAL AND CO
Chartered Accountants
Firm Registration No.-306033E
Sd/-
Sandeep Agrawal
Place: Kolkata (Partner)
Dated: 22nd April 2019 Membership No. 058553