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Lumax Industries Ltd.

BSE: 517206 | NSE: LUMAXIND |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE162B01018 | SECTOR: Auto Ancillaries

BSE Live

Dec 01, 14:33
1375.05 -17.85 (-1.28%)
Volume
AVERAGE VOLUME
5-Day
563
10-Day
665
30-Day
651
291
  • Prev. Close

    1392.90

  • Open Price

    1438.20

  • Bid Price (Qty.)

    1375.05 (4)

  • Offer Price (Qty.)

    1384.75 (4)

NSE Live

Dec 01, 14:33
1374.00 -17.65 (-1.27%)
Volume
AVERAGE VOLUME
5-Day
4,048
10-Day
10,328
30-Day
6,247
6,149
  • Prev. Close

    1391.65

  • Open Price

    1398.65

  • Bid Price (Qty.)

    1374.15 (1)

  • Offer Price (Qty.)

    1382.50 (2)

Annual Report

For Year :
2018 2017 2016 2015 2014 2013 2012 2011 2010

Auditor's Report

1. We have audited the attached Balance Sheet of Lumax Industries Limited (the Company) as at March 31,2009 and also the Profit and Loss account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. As required by the Companies (Auditors Report) Order, 2003 (as amended) issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 4. a) As stated in Note15(a) of Schedule 25, the Recoverable Amount of assets (including CWIP) consisting of land, building and certain plant and machinery pending installation aggregating to Rs.178,293,439 is yet to be ascertained and impairment in values thereof, if any, is accordingly not provided for which is not in accordance with the requirements of Accounting Standard 28 on Impairment of Assets. Pending such determination, we are unable to ascertain impact, if any, on these financial statements. b) As stated in Note 15(b) of Schedule 25 recoverability of claims recoverable of Rs. 8,887,465 is not ascertainable in the absence of conclusion of negotiations and confirmation of the claim by the party involved. In absence of the endorsement of the claim, we are unable to ascertain the appropriateness of recognition of such claims as required under the provisions of Accounting Standard 29 on Provisions, Contingent Liabilities and Contingent Assets consequential impact where of is not ascertainable. 5. Without qualifying our opinion, we would like to draw attention to Note 16 of Schedule 25 of the Financial Statements. The Company has incurred managerial remuneration to foreign Directors of Rs. 15,890,904 during the year, which is in excess of the limits specified by the relevant provisions of the Companies Act, 1956, by Rs.69,49,977. The Company has made an application to the appropriate regulatory authorities in this regard, for payment of such excess remuneration to managerial personnel. Pending the final outcome of the Companys application, no adjustments have been made to the accompanying financial statements in this regard. 6. Further to our comments in the Annexure referred to above, we report that: i. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit; ii. In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books; iii. The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the Books of Account; iv. In our opinion, subject to our remarks in paragraph 4(a) and 4(b) above, the balance sheet, profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956. v. On the basis of the written representations received from the directors, as on March 31, 2009, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on March 31, 2009 from being appointed as a Director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956. vi. In our opinion and to the best of our information and according to the explanations given to us, the said accounts, subject to our comments in paragraph 4(a) and 4(b) above, the effect of which on the financial statements is not currently determinable, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India; a) in the case of the Balance Sheet, of the State of Affairs of the Company as at March 31,2009; b) in the case of the Profit and Loss Account, of the Loss for the year ended on that date; and c) in the case of Cash Flow Statement, of the Cash Flows for the year ended on that date. Annexure referred to in paragraph [3] of our report of even date Re: Lumax Industries Limited (the Company) (i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. (b) All fixed assets were physically verified by the management in the previous year in accordance with a planned programme of verifying them once in three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. As informed, no material discrepancies were noticed on such verification (c) There was no substantial disposal of fixed assets during the year. (ii) (a) The management has conducted physical verification of inventory at reasonable intervals during the year. (b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. (c) The movement of inventories with the third parties was not recorded correctly in the stock records maintained at various stock locations and has resulted in material discrepancies being identified on receipt of confirmation of inventory from the third parties. The above discrepancies noticed have been properly dealt with in the books of account. Except to the extent stated above, the Company is maintaining proper records of inventory. (iii) (a) As informed, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Therefore, the provisions of clause 4 (iii) (b), (c) and (d) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company. (b) As informed, the Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Therefore, the provisions of clause 4 (iii) (f) and (g) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company. (iv) The Companys major purchases of inventory and fixed assets and major sales of components are stated to be of proprietary / specialized nature, and hence, in such cases, the comparison of prices with the market rates or with purchases from / sales to other parties can not be made. Read with the above, in our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods. The clause relating to sale of services is not applicable to the Company. During the course of our audit, no major weakness has been noticed in the internal control system in respect of these areas. (v) (a) According to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Act that need to be entered into the register maintained under section 301 have been so entered. (b) In respect of transactions made in pursuance of such contracts or arrangements exceeding the value of Rupees five lacs entered into during the financial year, as informed because of the unique and specialized nature of the items involved and absence of any comparable prices, we are unable to comment whether the transactions were made at prevailing market prices at the relevant time (vi) The Company has not accepted any deposits from the public. (vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business. (viii) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209(1)(d) of the Companies Act, 1956, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. (ix) (a) Undisputed statutory dues including provident fund, investor education and protection fund, or employees state insurance, income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty, cess have generally been regularly deposited with the appropriate authorities though there has been a slight delay in a few cases. (b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees state insurance, income-tax, wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and other undisputed statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable. (c) According to the records of the Company, the dues outstanding of income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty and cess on account of any dispute, are as follows: Name of the Nature of dues Amount (Rs.) statute The Central Excise duty demand against 7,255,448 Excise Act, the rejected goods sent on 1944 57(f) (4) challansi The Central Excise duty demand against 461,372 Excise Act, excess credit taken against 1944 the material procured from 100% EOU The Central Excise duty demand against 1,617,745 Excise Act, excess credit taken against 1944 the material procured from 100% EOU Service Tax Service tax Demand raised 3,451,809 Act, 1994 on Royalty and Technical know how The Central Excise duty demand for 343,218 Excise Act, interest on differential duty 1944 due to price escalation Local Area Demand of tax on certain 105,971 Development fixed assets including interest Tax Act, 2005 Income tax Act, Income tax demand on 2,375,490 1961 various disallowances Income tax Act, Income tax demand on 27,884,526 1961 various disallowances Period to Forum where dispute is which the pending amount relates July. 1994 to High Court, Chandigarh February, 1999 1999-00 to High Court Chandigarh 2001-02 1999-00 to Joint commissioner of 2001-02 Central Excise Gurgaon 1999-00 to Asstt, Commissioner of 2002-03 Service Tax- Gurgaon 2001-02 to Asstt commissioner of Oct 2005 Central Excise- Gurgaon 2000-2001 Jt.Excise & Taxation Commissioner (Appeals) Faridabad AY 2004-05 CIT (Appeals), New Delhi AY 2005-06 CIT (Appeals) New Delhi (x) The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year. (xi) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to banks. We have been informed that the Company does not have any loans outstanding from financial institutions during the year and has not issued any debentures. (xii) According to the information and explanations given to us and based on the documents and records produced to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. (xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company. (xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company. (xv) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions. (xvi) Based on information and explanations given to us by the management, term loans were applied for the purpose for which the loans were obtained. (xvii) According to the information and explanations given to us and on overall examination of the balance sheet of the Company, we report that the Company has used funds raised on short- term basis for long-term investment. Short term funds amounting to Rs. 202,637,218 raised by increase in current liabilities has been invested for acquisition of fixed assets whose useful life is estimated between 10 and 28 years. (xviii) The Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956. (xix) The Company did not have any outstanding debentures during the year. (xx) The Company has not raised any money through a public issue during the year. (xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit. For S.R. BATLIBOI & ASSOCIATES Chartered Accountants Pankaj Chadha Place: Gurgaon Partner Date : June 30,2009 Membership No. 91813