Lynx Machinery & Commercials Ltd.
|BSE: 505320||Sector: Others|
|NSE: N.A.||ISIN Code: INE732D01014|
|BSE LIVE 14:15 | 15 Nov||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 505320||Sector: Others|
|NSE: N.A.||ISIN Code: INE732D01014|
|BSE LIVE 14:15 | 15 Nov||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
To the Members of
LYNX MACHINERY AND COMMERCIALS LIMITED
We have audited the accompanying financial statements of LYNX MACHINERY ANDCOMMERCIALS LIMITED ("the Company") which comprise the Balance Sheet as at31st March 2016 the Statement of Profit and Loss the Cash Flow Statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
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 performingprocedures to obtain audit evidence about the amounts and the disclosures in the financialstatements. The procedures selected depend on the auditors judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Companys preparation of the financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstances but not for the purpose of expressing an opinion on whether the Companyhas in place an adequate internal financial controls system over financial reporting andthe operating effectiveness of such controls. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Companys 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 qualified audit opinion.
Basis for Qualified Opinion
(a) The Companys trade receivables aggregating to Rs 2445169 are old and underlitigation. We were unable to obtain sufficient appropriate audit evidence about theextent to which these amounts are realisable. Consequently we were unable to determinewhether any adjustments to these amounts were necessary. This matter was also qualified inour report on the financial statements for the year ended 31st March 2015; and
(b) In respect of the companys investment in quoted equity shares a sum of Rs8044525 has been invested in equity shares of companies which are not actively traded onstock exchanges. We were unable to obtain sufficient appropriate audit evidence about thecarrying amount of the companys investments in such equity shares as at March 312016 because we did not have access to the financial information of the investeecompanies. Consequently we were unable to determine whether any adjustments to theseamounts were necessary.
In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matters described in the Basis forQualified Opinion paragraph the aforesaid financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2016 and its loss and its cash flows for the year ended on thatdate.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure "A" statement on the mattersspecified in the paragraph 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 the Cash Flow State- mentdealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls reefer to ourseparate Report In "Annexure B".
(g) With respect to the other matters to be included in the Auditors Report inaccor- dance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion 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 finan- cialposition in its financial statements-Refer Note 2.21 and 2.22 to the financial statements.
II. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
III. There were no amounts which were required to be transferred to the In- vestorEducation and Protection Fund by the Company.
Statement on matters specified in paragraphs 3 & 4 of the Companies (AuditorsReport) Order 2016 ("the order") issued by the Central Government in terms ofSub-section (11) of section 143 of the Companies Act 2013 for the year ended 31st March2016
(i) (a) The company is maintaining proper records to show full particulars includingquantitative details and situation of fixed assets.
(b) These fixed assets have been physically verified by the Management at reasonableintervals during the year and no material discrepancies were noticed on suchverification.
(c) The title deeds of immovable properties are held in the name of the Company.
(ii) The inventory has been physically verified by the Management at reasonableintervals. In our opinion the procedures of physical verification of above followed bythe Management are reasonable and adequate in relation to the size of the Company andnature of its business. In our opinion the company is maintaining proper records ofinventory and no material discrepancy was noticed on physical verifications.
(iii) The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Companies Act. 2013. Therefore clause (iii) of para 3 of the order isnot applicable.
(iv) In respect of loans investments guarantees and security made or provided by thecompany during the year the provisions of Sections 185 and 186 of the Companies Act 2013have been complied with.
(v) In accordance with information and explanations given to us the company has notaccepted any deposits during the year and hence directives issued by the Reserve Bank ofIndia and provisions of section 73 to 76 and other applicable provisions of the CompaniesAct 2013 and rules framed there under are not applicable. No order in this regard inrespect of the company has been passed by the Company Law Board or Reserve Bank of Indiaor National Company Law Tribunal or any other court or any other tribunal.
(vi) As explained to us the Central Government has not prescribed maintenance of costrecords for the Company under sub-section (1) of Section 148 of the Companies Act 2013.
(vii) (a) The Company is regular in depositing of all undisputed statutory duesincluding provident fund employees state insurance income-tax Sales-tax Wealthtax Service tax duty of customs dutry of excise Value added tax cess and any otherstatutory dues so far as applicable to the Company with the appropriate authorities andthe company has no outstanding statutory dues as at the last day of the financial yearconcerned for a period of more than six months from the date they became payable.
(b) The Company has no disputed statutory dues on account of Income-tax Sales-taxWealth tax service tax duty of customs duty of excise or value added tax or cess.
(viii) In accordance with the information and explanations given to us the company hasnot defaulted in repayment of loans or borrowings to a financial institution. The companyhad no dues of any bank Government or debenture holder during the year.
(ix) No moneys have been raised by way of initial public offer or further public offer(including debt instruments) and term loans by the company during the year. Thereforeclause (ix) of para 3 of the order is not applicable.
(x) In accordance with our audit as per generally accepted auditing practices and theinformation and explanation given to us no fraud by or on the Company by its officers orits employees has been noticed or reported during the year nor have we been informed ofany such case by the management.
(xi) No managerial remuneration has been paid or provided by the company during theyear. Therefore clause (xi) of para 3 of the order is not applicable.
(xii) The company is not a Nidhi Company as defined in section 406(1) of the CompaniesAct 2013. Therefore clause (xii) of para 3 of the order is not applicable.
(xiii) All transactions with the related parties are in compliance with Sections 177and 188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc as required by the applicable accounting standards.
(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review. Thereforeclause (xiv) of para 3 of the order is not applicable.
(xv) The company has not entered into any non-cash transactions with directors orpersons connected with him and therefore compliance of the provisions of section 192 ofCompanies Act 2013 is not applicable.
(xvi) The company is required to be registered under Section 45-IA of the Reserve Bankof India Act 1934. The company has not obtained the registration.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") for the year ended 31st March 2016
We have audited the internal financial controls over financial reporting of LYNXMACHINERY AND COMMERCIALS LIMITED ("the Company") as of March 31 2016 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys 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 includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to companys policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Companys 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 168 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 auditors judgment 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 Companys internal financial controlssystem over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A companys internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 thecompanys 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.
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.