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Lykis Ltd.

BSE: 530689 Sector: Consumer
NSE: N.A. ISIN Code: INE624M01014
BSE LIVE 14:40 | 23 Aug 48.00 1.45
(3.11%)
OPEN

46.05

HIGH

48.00

LOW

45.20

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 46.05
PREVIOUS CLOSE 46.55
VOLUME 5004
52-Week high 63.80
52-Week low 45.15
P/E 320.00
Mkt Cap.(Rs cr) 93
Buy Price 45.60
Buy Qty 100.00
Sell Price 48.00
Sell Qty 31.00
OPEN 46.05
CLOSE 46.55
VOLUME 5004
52-Week high 63.80
52-Week low 45.15
P/E 320.00
Mkt Cap.(Rs cr) 93
Buy Price 45.60
Buy Qty 100.00
Sell Price 48.00
Sell Qty 31.00

Lykis Ltd. (LYKIS) - Auditors Report

Company auditors report

TO THE MEMBERS OF

M/S LYKIS LIMITED

Report on the Financial Statements

We have audited the accompanying (standalone) financial statements of LYKIS LIMITED("the company") which comprise the Balance Sheet as at 31 March 2016 theStatement of Profit and Loss & the Cash Flow Statement for the year then ended and asummary of significant accounting 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 preparationand presentation of these (Standalone) financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes the maintenance ofadequate accounting records in accordance with the provision of the Act for safeguardingof the assets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial control that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these (Standalone) financial statementsbased 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 there under.

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and operating effectiveness of such controls . An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the (Standalone) financial statements.

Opinion

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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March2016 its profit and its cash flows for the year ended on that date.

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 inparagraphs 3 and 4 of the Order to the extent applicable.

2. 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 bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and cash flows dealt with bythis Report are in agreement with the books of account.

d) In our opinion the aforesaid (standalone) financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on 31 March2016 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2016 from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

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 financialstatement refer note No 31 to the financial statement.

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses

iii. There were no amounts which required to be transferred by the Company to theInvestor Education and Protection Fund.

For SANJAY P AGARWAL & ASSOCIATES
Chartered Accountants
Firm Regn. No. 325683E
Place: Kolkata (SANJAY AGARWAL)
Partner
Date: 27th May 2016 Mem. No. 062218

"Annexure A" to the Auditors' Report

[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'of our Report of even date to the members of LYKIS LIMITED on the accounts of the companyfor the year ended 31st March 2016]

On the basis of such checks as we considered appropriate and according to theinformation and Explanations given to us during the course of our audit we report that:

(I) a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of the fixed assets.

b) As explained to us fixed assets have been physically verified by the managementduring the year in accordance with the phased programme of verification adopted by themanagement which in our opinion provides for physical verification of all the fixedassets at reasonable intervals. According to the information and explanations given to usno material discrepancies were noticed on such verification.

c) The title deeds of the immovable properties are held in the name of the company.

(ii) a) As explained to us the inventories of Finished goods semifinished goodsstores spareparts and raw material physically verified at the end of the year by theManagement. In our opinion and according to the information and explanation given to usthe procedures of physical verification of inventories followed by the Management werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

b) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification as compared to book records.

(iii) According to the information and explanations given to us the Company hasnot granted any loan to companies firms or other parties covered in the Registermaintained under Section 189 of the Companies Act 2013; and therefore paragraph 3 (iii)of the Order is not applicable.

(iv) In our opinion and according to the information and explanations given to usin respect of loans investments guarantees and securities provisions of section 185 and186 of the Companies Act 2013 has been complied with.

(v) The Company has not accepted any deposits from the public and hence thedirectives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 orany other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules2015 with regard to the deposits accepted from the public are not applicable.

(vi) As informed to us the Central Government has not prescribed maintenance ofcost records under sub-section (1) of Section 148 of the Act in respect of the activitiescarried on by the Company.

(vii) a) According to information and explanations given to us and on the basis ofour examination of the books of account and records the Company has been generallyregular in depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income-Tax Sales tax Service Tax Duty of Customs Duty of Excise Valueadded Tax and others except Cess on Green Leaf which is in arrear amounting to Rs.752717.55 as at March 31 2016 for a period more than six month from the date which isbeing payable with the appropriate authorities.

(b) According to the information and explanation given to us there are dues ofAgriculture income tax outstanding on account of any dispute.

Statue Nature of Dues Forum where dispute is pending Period to which the amount relates Amount(Rs.)
Agriculture Income Tax (Assam) Agriculture Income Tax Agricuture Income tax officer (Assam) F.Y. 2007-08 679380.00

(viii) According to the information and the explanation given to us the company hasnot defaulted in repayment of loans & borrowings to financial institution bankgovernment or due to any debenture holder.

(ix) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised any money by way of term loans debtinstrument & initial public offer or further public offer during the year.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company has been noticedor reported during the year.

(xi) According to the information & explanation given to us and based on ourexamination of records of the company the company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provision ofsection 197 read with schedule v to the act.

(xii) In our opinion the Company is not a Nidhi Company. Therefore the provisionsof clause 4 (xii) of the Order are not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given tous all transactions with related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the financialstatements etc. as required by the applicable accounting standard.

(xiv) Based upon the audit procedures performed and the information andexplanations given by the management the company has made preferential issue of equityshares during the year under review. Company has complied section 42 of companies act2013.The Fund raised have been used for the purposes for which Fund were raised .

(xv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.

(xvi) In our opinion and according to information given to us the company is notRequired to obtain registration under section 45 IA of the Reserve Bank of India Act1934.

For SANJAY P AGARWAL & ASSOCIATES
Chartered Accountants
Firm Regn. No. 325683E
Place: Kolkata (SANJAY KUMAR AGARWAL)
Partner
Date: 27th May 2016 Mem. No. 062218

"Annexure B" to the Independent Auditor's Report of even date on theStandalone Financial Statements of LYKIS LIMITED Report on the Internal Financial Controlsunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financial reporting of LykisLimited as of March 31 2016 in conjunction with our audit of the standalone financialstatements 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 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.

These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information 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 ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Control s and both issued by the Institute of Chartered Accountantsof India. 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 2016 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 SANJAY P AGARWAL & ASSOCIATES
Chartered Accountants
Firm Regn. No. 325683E
Place: Kolkata (SANJAY AGARWAL)
Partner
Date: 27th May 2016 Mem. No. 062218