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Lykis Ltd.

BSE: 530689 Sector: Consumer
NSE: N.A. ISIN Code: INE624M01014
BSE 00:00 | 20 Sep 30.60 -1.50
(-4.67%)
OPEN

33.30

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33.30

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30.50

NSE 05:30 | 01 Jan Lykis Ltd
OPEN 33.30
PREVIOUS CLOSE 32.10
VOLUME 3843
52-Week high 45.15
52-Week low 18.60
P/E
Mkt Cap.(Rs cr) 59
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 33.30
CLOSE 32.10
VOLUME 3843
52-Week high 45.15
52-Week low 18.60
P/E
Mkt Cap.(Rs cr) 59
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Lykis Ltd. (LYKIS) - Auditors Report

Company auditors report

TO THE MEMBERS OF LYKIS LIMITED

REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

Opinion

We have audited the accompanying standalone financial statements ofLYKIS LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2021 the Statement of Profit and Loss (including Other Comprehensive Income)Statement of changes in Equity and the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information (hereinafter referred to as "the Standalone financial statements"). In our opinion andto the best of our information and according to the explanations given to us theaforesaid Standalone financial statements give the information required by the CompaniesAct 2013 ("the Act") in the manner so required and give a true and fair view inconformity with the Indian Accounting Standard under section 133 of the Act read with theCompanies (Indian Accounting Standard) Rules 2015 as amended ("Ind AS") andother accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2021 the loss and total comprehensive income changes in equityand its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those SAs are further described in the Auditor'sResponsibilities for the audit of Standalone financial statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the ethical requirementsthat are relevant to our audit of the Standalone financial statements under provision ofAct and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion on the Standalonefinancial statements.

Key Audit Matters

Key audit matters (‘KAM') are those matters that in ourprofessional judgment were of most significance in our audit of the standalone financialstatements of the current period. These matters were addressed in the context of our auditof the standalone financial statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters.

We have determined the matters described below to be the key auditmatters to be communicated in our report.

Key audit matters How the matter was addressed in our audit
Sundry Balances Written Off Our audit procedures included the following:
During the FY 2020-21 the Company has written off Rs. 172.06 lakhs for advances receivables and loans which are not recoverable. Refer note no. 37 We gained an understanding of the process undertaken by the company for recoverability of such amount.
We have assessed the management's forecast and communication with the parties.
We have verified that the company has taken requisite approval from the appropriate authorities and checked proper presentation and disclosure of the same in financial statements.

Information Other than the Financial Statements and Auditor'sReport thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's ReportBusiness Responsibility Report Corporate Governance Report and Shareholder Informationbut does not include the standalone financial statements and our auditor's reportthereon. Our opinion on the standalone financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon. In connectionwith our audit of the standalone financial statements our responsibility is to read theother information and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated. If based on the workwe have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Management's Responsibility for the Standalone financialstatements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these Standalone financial statements that give a true and fair view ofthe state of affairs profit/ loss (including other comprehensive income) Statement ofchanges in Equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specifies under Section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting 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 controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the Standalone financial statements management and Boardof Directors are responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing thecompany's financial reporting process.

Auditors' Responsibilities for the Audit of the Standalonefinancial statements

Our objectives are to obtain reasonable assurance about whether theStandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also: Identifyand assess the risks of material misstatement of the Standalone financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the auditin order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the Standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of out auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of theStandalone financial statements including the disclosures and whether the Standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1.As required by the Companies (Auditors' Report) Order 2016("the Order") issued by the Central Government of India in terms of Section143(11) of the Act we give in "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extend applicable.

A. As required by section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit.

b) In our opinion proper books of account as required by law have beenkept by the company so far as it appears from our examination of those books.

c) The Balance Sheet statement of Profit and Loss Account includingOther Comprehensive Income Statement of changes in Equity and the statement of Cash Flowdealt with by this Report is in agreement with the relevant books of account.

d) In our opinion standalone financial statements comply with the IndAS specified under section 133 of the Act.

e) On the basis of the written representations received from thedirectors as on 31st March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2021 from being appointed as a director interms of Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting with reference to these Standalone financial statements of the companyand the operating effectiveness of such controls refer to our separate Report in "AnnexureB".

B. With respect to other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations as at31st March 2021 on its financial position in its Standalone financial statements –Refer Note 39 to the Standalone financial statements;

ii. The Company has made provision as required under the applicablelaws or Indian accounting standards for material foreseeable losses if any on derivativecontracts;

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

C. With respect to the matter to be included in the Auditors'Report under Section 197(16) of the Act:

In our opinion and according to the information and explanations givento us the remuneration paid by the Company to its directors during the current year is inaccordance with the provisions of Section 197 of the Act. The remuneration paid to anydirector is not in excess of the limit laid down under Section 197 of the Act. TheMinistry of Corporate Affairs has not prescribed other details under Section 197(16) whichare required to be commented upon by us.

For BANSHI JAIN & ASSOCIATES
Chartered Accountants
FRN: 0100990W
R. B. Golecha
Partner
Place: Mumbai Membership No.: 035348
Date: 25/06/2021 UDIN: 21035348AAAAFQ7729

"Annexure A" to the Independent Auditors' Report

The Annexure referred to in our Independent Auditors' Report tothe members of the Company on the Standalone financial statements for the year ended on31st March 2021. We report that:

i. In respect of its fixed assets:

a. The company is in process of maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets.

b. The fixed assets of the company have been physically verified by themanagement during the year and no material discrepancies between the book records and thephysical inventory have been noticed. In our opinion the frequency of verification isreasonable.

c. In respect of land and building held by the company the title deedswere not made available to us for verification and thus we are unable to comment whetherall the title deeds of land and building are held in the name of the company. The totalvalue of land and building as per the financial statements is Rs. 682.07 lakhs.

ii. In respect of its inventories: As explained to us the physicalverification of inventory is conducted on reasonable intervals by the company. In ouropinion the frequency of verification is reasonable. It has been certified by themanagement that no material discrepancies were noticed on physical verification ofinventories when compared with book records. Wherever the discrepancies were noticed thesame are dealt with in the books of accounts after due reconciliation confirmation andthe approval of the proper authority.

iii. According to the information and explanations given to us thecompany has squared off during the year the unsecured loans outstanding as on 31st March2020 given to 7 body corporates covered in the register maintained under section 189 ofthe Companies Act 2013. The balance outstanding as at the end of the year was Rs. NIL. Inour opinion and according to the information and explanations given to us:

a. The terms and conditions of the grant of aforesaid loans are notprejudicial to the company's interest.

b. In respect of the aforesaid loans the parties are repaying theprincipal amounts as stipulated and no interest has been charged on loan given to theseparties.

c. There are no amounts of loan granted to the company listed in theregister maintained under section 189 of the Act which were overdue for more than ninetydays.

iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct with respect to the loans given investments made guarantees given and securitiesprovided except the following:

a. The company has squared off the loans given to the entities in whichdirectors are interested during the year. The loans given to the entities in whichdirectors are interested was not in line with the provisions of section 185 of CompaniesAct 2013. The outstanding amount as on 31st March 2021 is Rs. NIL.

b. The company has squared off during the year the inter corporate loanas on 31st March 2020 in respect of which the company has not charged interest as per theprovisions of section 186 of the Companies Act 2013. The outstanding amount as on 31stMarch 2021 is Rs. NIL.

v. The Company has not accepted any deposits except advance receivedfrom customers amounting to Rs. 54.09 lakhs which is still outstanding for more than 365days and thus falls under the definition of Deemed Deposit from the public as per Rule 2of Companies Acceptance of Deposit Rules 2014. In respect of the deemed deposits theCompany has not fulfilled with directives issued by the Reserve Bank of India provisionsof Sections 73 to 76 of the Act any other relevant provisions of the Act and the relevantrules framed there under.

vi. The maintenance of cost records has not been specified by theCentral Government under section 148(1) of the Companies Act 2013 for the businessactivities carried out by the Company. Thus reporting under clause 3(vi) of the order isnot applicable to the Company.

vii. In respect of statutory dues:

a. According to the information and explanations given to us andaccording to the books and records as produced and examined by us in our opinion thecompany is generally regular in depositing the undisputed statutory dues during the yearincluding provident fund employees' state insurance income-tax goods and servicetax cess and any other statutory dues as applicable with the appropriate authorities.

According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees' state insuranceincome tax duty of customs goods and service tax and cess and other statutory dues wereoutstanding at the year end for a period of more than six months from the date theybecame payable except the following statutory liabilities.

(Rs. in lakhs)

Nature of Statutory Liability Amount
Liability for Tea Cess 19.82
Liability for Land Revenue 5.16
Liability for Gram Panchayat Tax 0.41
Value Added Tax 2.95

b. According to the information and explanations given to us there areno material dues of duty of customs and cess which have not been deposited with theappropriate authorities on account of any dispute. However according to the informationand explanations given to us the particulars of dues of excise duty Income tax as at31st March 2021 which have not been deposited on account of any dispute are as follows:

(Rs. in lakhs)

Nature of the Statute Nature of Dues Forum where dispute is pending Period to which the Amount (Rs.)
The Income Tax Act1961 Income Tax CIT Appeal Kolkata A.Y. 2015-16 73.72

viii. In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in the repayment of dues to banks and financialinstitutions. The Company does not have any outstanding loans or borrowings from thegovernment and has not issued any debentures during the year.

ix. In our opinion and according to the information and explanationsgiven to us the Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) or term loans during the year. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.

x. During the course of our examination of the books and records of thecompany carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanation given to us we have neither comeacross any instance of fraud done by the company or any fraud done on the company by itsofficers or employees noticed or reported during the year nor have we been informed ofsuch case by the management.

xi. According to the information and explanations provided by themanagement the managerial remuneration has been paid/provided in accordance with theprovision of section 197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.

xiii. According to the information and explanations given to us andbased on our examination of the records of the Company all transactions with the relatedparties are in compliance with Section 177 and 188 of the Act where applicable and therequisite details have been disclosed in the notes to Standalone financial statements asrequired by the applicable Ind AS.

xiv. According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly Paragraph 3(xiv) of the Order is not applicableto the Company.

xv. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable.

xvi. According to the information and explanations given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934.

For BANSHI JAIN & ASSOCIATES
Chartered Accountants
FRN: 0100990W
R. B. Golecha
Partner
Place: Mumbai Membership No.: 035348
Date: 25/06/2021 UDIN: 21035348AAAAFQ7729

"Annexure-B" to the Independent Auditors' Report

(Referred to in Paragraph 1(A)(f) under ‘Report On Other Legal andRegulatory Requirements' section of our report of even date') Report on theInternal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act 2013 ("the Act")

We have audited the internal financial controls with reference toStandalone financial statements of LYKIS LIMITED ("the Company") as of31st March 2021 in conjunction with our audit of the Standalone financial statements ofthe Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control with reference toStandalone financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting (the "Guidance Notes") issued by theInstitute of Chartered Accountants of India ("ICAI").These responsibilitiesinclude the design implementation and maintenance of internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's 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.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to Standalone financial statements based on ouraudit. We conducted our audit in accordance with the Guidance Note and the Standards onAuditing issued by ICAI and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth are applicable to an audit of Internal Financial Controls and both issued by theICAI. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherinternal financial controls with reference to Standalone financial statements wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system with reference to Standalonefinancial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to Standalone financial statements included obtaining anunderstanding of internal financial controls with reference to Standalone financialstatements assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the Standalone financial statements whether due tofraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system with reference to Standalone financial statements.

Meaning of Internal Financial Controls over financial statement

A company's internal financial control over Standalone financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of Standalone financial statements for externalpurposes in accordance with generally accepted accounting principles. A company'sinternal financial control with reference to Standalone financial statements includesthose policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of Standalone financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assetsthat could have a material effect on the Standalone financial statements.

Inherent Limitations of Internal Financial Controls over Standalonefinancial statements

Because of the inherent limitations of internal financial controls withreference to Standalone financial statements including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols with reference to Standalone financial statements to future periods are subjectto the risk that the internal financial control with reference to Standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an internal financialcontrols system with reference to Standalone financial statements and such internalfinancial controls with reference to Standalone financial statements were operatingeffectively as at 31st March 2021 based on the internal control with reference toStandalone financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For BANSHI JAIN & ASSOCIATES
Chartered Accountants
FRN: 0100990W
R. B. Golecha
Partner
Place: Mumbai Membership No.: 035348
Date: 25/06/2021 UDIN: 21035348AAAAFQ7729

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