Lumax Auto Technologies Limited , a prominent player in the auto components sector, has released its financial results for the third quarter and nine months ended December 31, 2019, along with several strategic business decisions.

Financial Performance

The company reported a net profit of Rs 1,228.82 lakhs for Q3 2019, showing a slight decrease from Rs 1,289.08 lakhs in the corresponding quarter of the previous year. Revenue from operations stood at Rs 24,263.35 lakhs for the quarter under review.

Strategic Business Decisions

Joint Venture Termination

In a significant move, the Board of Directors has decided to terminate the joint venture agreement with Gill-Austem LLC. This decision comes in the wake of non-performance of obligations by the partner, even after the expiry of the cure period. The joint venture company, Lumax Gill-Austem Auto Technologies Private Limited, was previously held on a 50:50 shareholding basis between the partners.

New Investment and Entity Formation

Lumax Auto Technologies has approved investments totaling Rs 7.01 crores for incorporating a new entity called Lumax Yokowo Technologies Private Limited. This strategic investment signals the company's commitment to expanding its portfolio and capabilities in the auto technology sector.

Corporate Governance

In line with best practices in corporate governance, the Board has appointed Maneesh Gupta as the Secretarial Auditor for the financial year 2019-2020.

Future Outlook

While the company faces challenges, as evidenced by the slight dip in quarterly profits, the strategic decisions taken by the Board indicate a focus on streamlining operations and exploring new growth avenues. The termination of the underperforming joint venture and the investment in a new entity suggest that Lumax Auto Technologies is actively repositioning itself in the competitive auto components market.

Note: All financial figures are in Indian Rupees (INR).

Lumax Auto Technologies Limited , a prominent player in the auto components sector, has disclosed a significant change in its material subsidiary's audit arrangements. IAC International Automotive India Private Limited (formerly known as Lumax Integrated Ventures Private Limited), a material subsidiary of Lumax Auto Technologies, announced the resignation of its statutory auditors, S.R. Batliboi & Co. LLP, Chartered Accountants.

Key Details of the Resignation

The resignation, effective August 12, 2025, comes as part of a strategic move to align the subsidiary's auditors with those of the parent company. S.R. Batliboi & Co. LLP had been appointed as statutory auditors for IAC International Automotive India Private Limited on September 18, 2024, with a term scheduled to expire at the conclusion of the Annual General Meeting (AGM) for the financial year 2027-28.

Reasons for the Change

The primary reason cited for this change is the completion of S.R. Batliboi & Co. LLP's tenure as statutory auditors for Lumax Auto Technologies Limited (the holding company) at the AGM held on September 27, 2024. The management of IAC International Automotive India Private Limited is proposing to align its statutory auditors with the holding company's auditor, prompting this resignation.

Audit Status and Transition

Prior to their resignation, S.R. Batliboi & Co. LLP had completed the following:

• Audit of financial statements for the year ended March 31, 2025, issuing their audit report on May 22, 2025.
• Limited review for the quarter ended June 30, 2025, with an unmodified conclusion in their review report dated August 02, 2025.

Implications and Next Steps

This change in auditors for a material subsidiary could potentially impact the overall audit process for Lumax Auto Technologies Limited. The company will likely appoint new auditors for IAC International Automotive India Private Limited in the near future, aligning with the auditors of the parent company.

The move underscores Lumax Auto Technologies' commitment to maintaining consistency in its financial reporting and audit processes across its group companies. It also reflects the company's proactive approach to corporate governance and transparency in its financial operations.

Investors and stakeholders will be keen to see how this transition unfolds and its potential impact on the financial reporting processes of both the subsidiary and the parent company in the coming quarters.