REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS
We have audited the accompanying standalone Ind AS financial statements of LUX INDUSTRIES LIMITED
(“the Company”), which comprise the Balance Sheet as at March 31, 2018, the Statement of
Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes
In Equity for the year then ended, and a summary of the significant accounting policies and other explanatory
information (herein after referred to as “Standalone Ind AS financial statements).
MANAGEMENT’S RESPONSIBILITY FOR THE STANDALONE IND AS FINANcIAL STATEMENTS
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the
Companies Act, 2013 (“the Act”) with respect to the preparation of these standalone Ind AS
financial statements that give a true and fair view of the state of affairs (financial position), profit or
loss (financial performance including other comprehensive income), cashflows and changes in equity of the
Company in accordance with the accounting principles generally accepted in India, including the Indian
Accounting Standards specified under Section 133 of the Act read with relevant Rules issued thereunder
This responsibility also includes maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the standalone Ind AS financial
statements that give a true and fair view and are free from material misstatement, whether due to fraud or
error.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our
audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters
which are required to be included in the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on
Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind
AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in
the standalone Ind AS financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the standalone Ind AS financial statements,
whether due to fraud or error. In making those risk assessments, the auditor considers internal financial
control relevant to the Company’s preparation of the standalone Ind AS financial statements that give a
true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit
also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the
accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of
the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide 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 explanations given to us, the
aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the accounting principles generally accepted in
India including the Ind AS, of the state of affairs (financial position) of the Company as at March 31, 2018,
and its profit (financial performance including other comprehensive income), its cashflows and the changes in
equity for the year ended on that date.
OTHER MATTER
The comparative financial information of the Company for the year ended March 31, 2017 prepared in
accordance with applicable Accounting Standards (previous GAAP) was carried out by the predecessor auditor
vide their unmodified report dated May 25, 2017, whose report have been furnished to us by the management and
which have been relied upon by us for the purpose of our audit of the standalone financial results. Our audit
report is not modified in respect of this matter.
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 of the Act, we give in
“Annexure A”, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the
extent applicable.
II. 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 best of our knowledge
and belief were necessary for the purposes of our audit.
b. In our opinion, proper books of accounts as required by law have been kept by the Company so far as
it appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and the Statement of
Changes in Equity dealt with by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Indian
Accounting Standards specified under Section 133 of the Act, read with relevant Rules issued thereunder.
e. On the basis of the written representations received from the directors as on March 31, 2018 taken
on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being
appointed as a director in terms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure
B”.
g. With respect to the other matters to be included in the Auditor’s Report in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and 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 financial position in its
standalone Ind AS financial statements (Refer Note No. 32 to the standalone Ind AS financial statements).
ii. The Company did not have any long-term contracts including derivative contracts for which there
were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor
Education and Protection Fund by the Company.
Annexure -A to the Independent Auditors’ Report
The Annexure referred to in our Independent Auditor’s Report to the members of LUX
INDUSTRIES LIMITED (‘the Company’) on the standalone Ind AS financial statements for the
year ended on March 31, 2018. We report that:
i. (a) The Company has maintained proper records showing full particulars, including quantitative
details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed
assets are verified in a phased manner over a period of three years. In accordance with this programme,
certain fixed assets were verified during the year and no material discrepancies were noticed on such
verification. In our opinion, this periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets.
(c) According to information and explanation given to us and on the basis of our examination of the
records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii. The inventories have been physically verified during the year by the management at regular
intervals (except for materials lying with third parties which have substantially been confirmed by such
third parties at the year end). In our opinion and according to the information and explanations given to us,
no material discrepancies were noticed on physical verification.
iii. The Company has not granted any loans, secured or unsecured to companies, firms, Limited
Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies
Act, 2013 (‘the Act’). Accordingly, paragrapRs.3(iii)(a), 3(iii)(b) and 3(iii)(c) of the Order is
not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us, the Company has
complied with the provisions of sections 185 and 186 of the Companies Act, 2013 with respect to Loans and
Advances made, guarantee given and investment made.
v. According to the information and explanations given to us, the Company has not accepted any
deposits from the public.
vi. According to the information and explanation given to us, the Central Govt. of India has not
specified the maintenance of cost records under sub section (1) of section 148 of the Act for the product of
the company.
vii. According to the information and explanations given to us in respect of statutory dues:
(a) The Company has been regular in depositing undisputed statutory dues, including Provident Fund,
Employees State Insurance, Income Tax, Service Tax, Sales Tax, Value Added Tax, duty of Custom, duty of
Excise, Cess, GST and other statutory dues with the appropriate authorities during the year. According to the
information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were
outstanding as at March 31, 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of income tax and
duty of customs which have not been deposited with the appropriate authorities on account of any dispute.
However, according to information and explanations given to us, the following dues of service tax, sales tax,
duty of excise and value added tax have not been deposited by the Company on account of disputes:
|
Name of the Statue
|
Nature of dues
|
Amount (INR 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 & Penalty
|
11.71
|
2002-03 to 2005-
|
Division Bench, Kolkata High
|
| |
|
|
06
|
Court.
|
|
The Finance Act. 1994
|
Service Tax and
|
136.23
|
2007-08 to 2012-13
|
Customs, Excise and Service Tax
|
| |
Penalty
|
|
|
Appellate Tribunal
|
|
The Central Excise Act.
|
Excise Duty and
|
47.79
|
2012-13
|
Customs, Excise and Service Tax
|
|
1944
|
Penalty
|
|
|
Appellate Tribunal
|
|
The Central Excise Act.
|
Excise Duty and
|
197.97
|
2011-12 to 2012-13
|
Deputy Excise and Service Tax
|
|
1944
|
Penalty
|
|
|
Appellate Tribunal
|
|
The Central Excise Act.
|
Excise Duty and
|
100.52
|
2011-12
|
Customs, Excise and Service Tax
|
|
1944
|
Penalty
|
|
|
Appellate Tribunal
|
viii. In our opinion and according to information and explanations given by the management, we are of
the opinion that the Company has not defaulted in the repayment of dues to financial institution and banks.
The Company does not have any loans or borrowings from Government and has not issued any debentures.
ix. To the best of our knowledge and belief and according to the information and explanations given to
us, the term loan have been 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 and explanations given to us, no material fraud by the Company or on
the Company by its officers or employees has been noticed or reported during the year
xi. According to the information and explanations given to us, the Company has paid/provided for
managerial remunerations in accordance with the requisite approvals mandated by the provisions of Sec 197
read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not
a Nidhi company. Accordingly, paragrapRs.3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the
records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of
the Act where applicable and details of such transactions have been disclosed in the standalone Ind AS
financial statements as required by the applicable Indian accounting standards.
xiv. According to the information and explanations give to us and based on our examination of the
records, the Company has not made any preferential allotment or private placement of shares or fully or
partly convertible debentures during the year
xv. According to the information and explanations given to us and based on our examination of the
records of the Company, the Company has not entered into non-cash transactions with directors or persons
connected with them. Accordingly, paragrapRs.3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India
Act, 1934.
Annexure -B to the Independent Auditors’ Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of LUX INDUSTRIES
LIMITED (“the Company”) as of March 31, 2018 in conjunction with our audit of the
standalone Ind AS 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 internal financial
controls based on the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India
(‘ICAI’). These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of
its business, including adherence to company’s policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Companies Act, 2013.
AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on the Company’s internal financial controls over
financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit
of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards
on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to
the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal
Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and
the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal financial controls over financial reporting was
established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls system over financial reporting and their operating effectiveness. Our audit of internal
financial controls over financial reporting included obtaining an understanding of internal financial
controls over financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion on the Company’s internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A company’s internal financial control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles. A
company’s internal financial control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in accordance with
generally accepted accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorisations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the
company’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 financial reporting, including
the possibility of collusion or improper management override of controls, material misstatements due to error
or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls
over financial reporting to future periods are subject to the risk that the internal financial control over
financial reporting may become inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.
OPINION
In our opinion, the Company has, in all material respects, an adequate internal financial controls system
over financial reporting and such internal financial controls over financial reporting were operating
effectively as at March 31, 2018, based on the internal control over financial reporting criteria established
by the Company considering the essential components of internal control stated in the Guidance Note on Audit
of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India.
For, S. K. AGRAWAL & CO.
Chartered Accountants
Firm’s Registration Number- 306033E
Sandeep Agrawal
Place: Kolkata
Partner
Dated: May 17, 2018
Membership No: 058553 |
12.35 (0.92%)