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Lynx Machinery & Commercials Ltd.

BSE: 505320 Sector: Others
NSE: N.A. ISIN Code: INE732D01014
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NSE 05:30 | 01 Jan Lynx Machinery & Commercials Ltd
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OPEN 82.45
CLOSE 82.45
VOLUME 1
52-Week high 82.45
52-Week low 24.55
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Lynx Machinery & Commercials Ltd. (LYNXMACHINERY) - Auditors Report

Company auditors report

To the Members of

LYNX MACHINERY AND COMMERCIALS LIMITED

Report on the Audit of the Standalone Financial Statements

Qualified Opinion

We have audited the standalone financial statements of LYNX MACHINERY ANDCOMMERCIALS LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2022 the Statement of Profit and Loss (Including Other Comprehensive Income)the Statement of Changes in Equity and the Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information(hereinafter referred to as the "standalone financial statements".

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion section of our report the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind-AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2022and the loss and total comprehensive loss changes in equity and its cash flows for theyear ended on that date.

Basis for Qualified Opinion

(a) The Company's trade receivables aggregating to Rs 2445169 are old and underlitigation. The said amount includes Rs 2134761 receivable from a trade debtor inrespect of which reference is invited to Note No 22. Since the Hon'ble City Civil &Sessions Court Greater Mumbai has ordered the company to pay Rs 2938735 to the saidparty (plus interest from date of filing of suit) recovery of the said sum of Rs2134761 from the same party is doubtful in our opinion more so because the debt is nowbarred by limitation. Hence in our opinion provision for doubtful debts needs to bemaintained against the said Trade Receivable of Rs 2134761. Thus Trade Receivables andOther Equity are overstated by Rs 2134761 and loss and comprehensive loss for the yearare understated by the same amount.

(b) The company's investment in unquoted equity shares have been stated at cost insteadof their fair value which is not in accordance with Indian Accounting Standard (Ind-AS)109 Financial Instruments. We were unable to obtain sufficient appropriate audit evidencein support of their respective cost to be an appropriate estimate of their fair value.Further in respect of the company's investment in quoted equity shares necessaryadjustments have not been made for changes in their fair value as at the year end whencompared to their respective fair value as at the end of the previous year. This is alsonot in accordance with the said Ind-AS 109. Consequently we are unable to determinewhether and to what extent any adjustments to these amounts were necessary.

We conducted our audit in accordance with Standards on Auditing (SAs). Ourresponsibilities under those standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the ethical requirements that are relevantto our audit of the financial statements under the provisions of the Companies Act 2013and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our qualified opinion.

Key Audit Matter

Key Audit Matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matter described below to be thekey audit matter to be communicated in our report.

KAM - 1 Evaluation of claims against the company

The company has material uncertain matters under dispute which involved significantjudgment to determine the possible outcome of these disputes. Refer Note No 22 and 23.

Auditors' Response Principal Audit Procedures

Obtained details of dispute and litigation for the year ended 31.03.2022 from themanagement. We involved our internal experts to challenge the management's underlyingassumptions in estimating the possible outcome of the disputes.

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 preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with the Ind AS and other accounting principles generally accepted in Indiaincluding the accounting Standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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 statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government in terms of sub-section (11) of Section 143 of the Actwe give in the "Annexure A" a statement on the matters specified in theparagraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143 (3) of the Act and subject to the possible effects ofthe matters described in the Basis for Qualified Opinion paragraph we report to theextent applicable 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 the Statement of Cash Flowsand the Statement of Changes in Equity dealt with by this Report are in agreement with thebooks of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards specified under Section 133 of the Act read with relevantrules issued there under subject to non-compliance with Ind-AS 109 as detailed in Basisfor Qualified Opinion paragraph;

(e) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 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 B"; and

(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 financialposition in its Ind-AS financial statements - Refer Note No 6 22 and 23 to the Ind- ASfinancial 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 InvestorEducation and Protection Fund by the Company;

IV. (a) The management has represented that to the best of it's knowledge and beliefno funds have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the company to or in any other person orentity including foreign entity ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the Intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provideany guarantee security or the like on behalf of the Ultimate Beneficiaries;

(b) The management has represented that to the best of it's knowledge and belief nofunds have been received by the company from any person or entity) including foreignentity ("Funding Parties") with the understanding whether recorded in writingor otherwise that the company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries; and

(c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material misstatement.

V. The company has not declared or paid any dividend and hence clause (f) of theaforesaid Rule 11 is not applicable.

FOR A. PATWARI & CO.
Chartered Accountants
Firm Registration No. 326300E
70 Diamond Harbour Road
Kolkata - 700 023
The 28th day of May 2022 ARVIND PATWARI
Proprietor
Membership No. 065505
UDIN : 22065505AJUJMT5971

"Annexure-A"

LYNX MACHINERY AND COMMERCIALS LIMITED

Statement on matters specified in paragraphs 3 & 4 of the Companies (Auditor'sReport) Order 2020 ("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 March2022

(i) In respect of its Property Plant & Equipment:

(a) (A) The Company has maintained proper records showing full particulars includingquantitative details and situation of the Property Plant & Equipment.

(B) The Company has no Intangible Assets.

(b) The Property Plant & Equipment were physically verified during the year by theManagement in accordance with a regular programme of verification which in our opinionprovides for physical verification of all the Property Plant & Equipment atreasonable intervals. According to the information and explanations given to us nodiscrepancies noticed on physical verification of Property Plant & Equipment ascompared to book records.

(c) The company does not hold any immovable property at the end of the financial year.In respect of property where the Company is the lessee the lease agreements are dulyexecuted in favour of the lessee.

(d) The Company has not revalued any of its Property Plant and Equipment (includingRight of Use assets) or intangible assets or both during the year.

(e) No proceedings have been initiated or are pending against the company for holdingany Benami property under the "Benami Transactions (Prohibition) Act 1988 and Rulesmade there under.

(ii) (a) The company did not hold any inventory during the year.

(b) The Company has not been sanctioned any working capital limits in excess of Rs. 5crores in aggregate from banks or financial institutions on the basis of security ofcurrent assets at any time during the year.

(iii) The company has not made any investments in provided any guarantee or securityor granted any loans or advances in the nature of loans secured or unsecured tocompanies firms Limited Liability Partnerships or any other parties during the year

(iv) In respect of loans investments guarantees and security made or provided by thecompany the provisions of sections 185 and 186 of the Companies Act 2013 have beencomplied 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 subsection (1) of section 148 of the Companies Act 2013.

(vii) (a) The Company is regular in depositing of all undisputed statutory duesincluding Goods & Service Tax Provident Fund Employees' State Insurance Income-taxSales-tax Wealth tax service tax duty of customs duty of excise Value added tax cessand any other statutory dues so far as applicable to the Company with the appropriateauthorities and the company has no outstanding statutory dues as at the last day of thefinancial year concerned for a period of more than six months from the date they becamepayable.

(b) The Company has no statutory dues of the nature referred to above which has notbeen deposited on account of any dispute.

(viii) There were no such transactions which were not recorded in the books of accountof the company that have been surrendered or disclosed as income during the year in thetax assessments under the Income Tax Act 1961.

(ix) (a) The company has not defaulted in repayment of loans or other borrowings or inthe payment of interest thereon to any lender.

(b) The company has not been declared as a wilful defaulter by any bank or financialinstitution or other lender;

(c) The company has not obtained any term loan during the year.

(d) Funds raised on short term basis have not been utilised for long term purposes

(e) The company does not have any subsidiary associates or joint ventures hencesub-clause (e) and (f) are not applicable.

(x) (a) The company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) during the year.

(b) The Company has not made any preferential allotment or private placement of sharesor convertible debentures (fully partially or optionally convertible) during the year

(xi) (a) 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.

(b) No report under sub-Section (12) of Section 143 of the Companies Act has been filedby the auditors during the year

(c) There were no whistle-blower complaints received during the year by the Companyto be considered by the auditors.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theCARO 2020 Order is not applicable.

(xiii) In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

(xiv) a) The company has an internal audit system commensurate with the size and natureof its business

(b) The reports of the Internal Audit for the period under audit have been consideredby us in the process of our audit of the financial statements.

(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or directors of its holding or persons connected with them and hence provisionsof section 192 of the Companies Act 2013 are not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 and therefore sub clauses (b) (c) & (d) of clause (xvi) ofthe Order are not applicable.

(xvii) The Company has not incurred cash losses in the Financial Year but has incurredcash losses in the immediately preceding Financial year amounting to Rs. 4248666.

(xviii) There has been no resignation of the statutory auditors during the year.

(xix) On the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements of the company our knowledge of the Board of Directors andmanagement plans we are of the opinion that no material uncertainty exists as on the dateof the audit report that the company is capable of meeting its liabilities existing at thedate of balance sheet as and when they fall due within a period of one year from thebalance sheet date.

(xx) Provisions of section 135 relating to Corporate Social Responsibility are notapplicable to the company.

(xxi) The company is not required to prepare Consolidated Financial Statements andtherefore provisions of clause (xxi) of the Order are not applicable.

FOR A. PATWARI & CO.
Chartered Accountants
Firm Registration No. 326300E
70 Diamond Harbour Road
Kolkata - 700 023
The 28th day of May 2022 ARVIND PATWARI
Proprietor
Membership No. 065505
UDIN : 22065505AJUJMT5971

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 2022

We have audited the internal financial controls over financial reporting of LynxMachinery And Commercials Limited ("the Company") as of March 31 2022 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor 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 considering the essential components of internal financial controls asper section 134(5)(e) of the Act and as stated in the applicable Standards of Auditingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

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 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 auditor's 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 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 2022 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 A. PATWARI & CO.
Chartered Accountants
Firm Registration No. 326300E
70 Diamond Harbour Road
Kolkata - 700 023
The 28th day of May 2022 ARVIND PATWARI
Proprietor
Membership No. 065505
UDIN: 22065505AJUJMT5971

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