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Lykis Ltd.

BSE: 530689 Sector: Consumer
NSE: N.A. ISIN Code: INE624M01014
BSE 00:00 | 25 Apr 23.70 0
(0.00%)
OPEN

24.50

HIGH

24.50

LOW

22.75

NSE 05:30 | 01 Jan Lykis Ltd
OPEN 24.50
PREVIOUS CLOSE 23.70
VOLUME 407
52-Week high 51.90
52-Week low 20.70
P/E
Mkt Cap.(Rs cr) 46
Buy Price 22.75
Buy Qty 598.00
Sell Price 23.65
Sell Qty 500.00
OPEN 24.50
CLOSE 23.70
VOLUME 407
52-Week high 51.90
52-Week low 20.70
P/E
Mkt Cap.(Rs cr) 46
Buy Price 22.75
Buy Qty 598.00
Sell Price 23.65
Sell Qty 500.00

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 2018 theStatement of Profit and Loss (including other comprehensive income) the statement ofchanges in Equity & the statement of Cash Flow for the year then ended and a summaryof 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 including other comprehensive incomecash flows and changes in Equity of the Company in accordance with the Indian accountingStandard (Ind AS) prescribed u/s 133 of the Act read with the companies (Indian AccountingStandard) rules 2015 as amended and other accounting principles generally accepted inIndia. This responsibility also includes the maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding of the assets of the Company andfor preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial 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 and the order issued u/s 143(11) ofthe act.

We conducted our audit of standalone financial statement in accordance with theStandards on Auditing specified under section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone financial statements are free frommaterial 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 and audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's directors as well as evaluating the overall presentationof 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 March 2018 its profit total comprehensive income the changes inEquity and its cash flows for the year ended on that date.

Report on other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit + 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 including comprehensive income theChanges in Equity and its the statement of cash flows dealt with by this Report are inagreement 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.

e) On the basis of written representations received from the directors of the companyas on 31 March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 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 refer to ourseparate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.

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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements.

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.

2. 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 B" a statement on the matters Specifiedin paragraphs 3 and 4 of the Order to the extent applicable.

For SANJAY P AGARWAL & ASSOCIATES
Chartered Accountants
Firm Registration No.: 325683E
(Sanjay Agarwal)
Place: Kolkata Partner
Date: 30/05/2018 (M. No. 062218)

"Annexure B" to the Auditors' Report

[Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' of our Report of even date to the members of LYKIS LIMITED on the accountsof the company for the year ended 31st March 2018 ]

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 particulars includingquantitative 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 programe 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 semi finished goodsstores spare parts and raw material physically verified at the end of the year by theManagement. In our opinion and according to the information and explanations 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 has notgranted any loan to companies firms or other parties covered in the Register maintainedunder Section 189 of the Companies Act 2013; and therefore paragraph 3 (iii) of the Orderis not applicable.

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

(v) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

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

(vii) According to the information and explanations given to us in respect ofstatutory dues:

a) The Company is not regular in depositing undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Sales Tax Service Tax Goods andService Tax Value Added Tax Customs Duty Excise Duty Cess and other material statutorydues applicable to it with the appropriate authorities.

b) There were undisputed amounts payable in respect of Provident Fund Employees' StateInsurance Income Tax Sales Tax Service Tax Value Added Tax Goods and Service TaxCustoms Duty Excise Duty Cess and other material statutory dues in arrears as at March31 2018 for a period of more than six months from the date they became payable as perdetail given below:

Tea Cess ` 1328435.35
Vat ` 295072.45
Agricultral Income Tax ` 1174715.00

c) Details of dues of Income Tax Sales Tax Service Tax Excise Duty and Value AddedTax which have not been deposited as at March 31 2018 on account of dispute are givenbelow:

Nature of the statute Nature of dues Forum Pending where Dispute is Period to which the Amount Relates Amount in lakhs*
The Income Tax Act 1961 Income Tax CIT Appeal Kolkata A.Y. 2015-16 9505640/-
A.Y 2014-15 272690/-
Central Sales Tax CST Deputy Commissioner of Sales tax Mumbai F.Y. 2012-13 4144217/-

• Below ` 10000/- not considered.

(viii) According to the information and the explanation given to us the Company has notdefaulted 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 & explanations 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 provisions ofclause 4 (xii) of the Order are not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given to usall transactions with related parties are in compliance with Sections 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 and explanationsgiven by the management the Company has not made any preferential issue of equity sharesduring the year under review.

(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 Registration No.: 325683E
(Sanjay Agarwal)
Place: Kolkata Partner
Date: 30/05/2018 (M. No. 062218)

"Annexure A" to the Independent Auditor's

Report of even date on the Standalone Financial Statements of LYKIS LIMITED Report onthe Internal 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 over financial reporting of LykisLimited as of March 31 2018 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 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 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement 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 2018 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 Registration No.: 325683E
(Sanjay Agarwal)
Place: Kolkata Partner
Date: 30/05/2018 (M. No. 062218)