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Lynx Machinery & Commercials Ltd.

BSE: 505320 Sector: Others
NSE: N.A. ISIN Code: INE732D01014
BSE 00:00 | 07 Jan Lynx Machinery & Commercials Ltd
NSE 05:30 | 01 Jan Lynx Machinery & Commercials Ltd
OPEN 28.45
PREVIOUS CLOSE 27.50
VOLUME 97
52-Week high 41.30
52-Week low 27.50
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 28.45
CLOSE 27.50
VOLUME 97
52-Week high 41.30
52-Week low 27.50
P/E
Mkt Cap.(Rs cr) 2
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 Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of LYNXMACHINERY AND COMMERCIALS LIMITED ("the Company") which comprise the BalanceSheet as at 31st March 2018 the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Cash Flows and the Statement of Changes in Equityfor the year then ended and a summary of the significant accounting policies and otherexplanatory information (herein after referred to as "the standalone Ind AS financialstatements").

Management's Responsibility for the Standalone Ind AS 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 Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act read with relevant rules issued thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the standalone Ind AS financialstatements.

Basis for Qualified Opinion

(a) The Company's 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 are unable to determinewhether any adjustments to these amounts were necessary; and

(b) The company's investment in quoted equity shares with carrying amount aggregatingto Rs 6903775 has been stated at cost and not at fair value which is not in accordancewith Indian Accounting Standard (Ind-AS) 109 Financial Instruments (para B5.2.3 to B5.2.6of the said Ind-AS). Similarly the company's entire investments in unquoted equity shareshave also been stated at cost instead of their fair value. We were unable to obtainsufficient appropriate audit evidence in support of their respective cost to be anappropriate estimate of their fair value. Consequently we are unable to determine whetherand to what extent any adjustments to these amounts were necessary.

Qualified Opinion

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 standalone Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India including the IndAS of the financial position of the Company as at 31st March 2018 its financialperformance including other comprehensive income its cash flows and its changes in equityfor the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government 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 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st 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 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 23 and 24 to theInd-AS 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 InvestorEducation and Protection Fund by the Company

FOR A. PATWARI & CO.
Chartered Accountants
Firm registration No. : 326300E
70 Diamond Harbour Road ARVIND PATWARI
Kolkata-700 023 Proprietor
The 29 Day of May 2018 Membership No. 065505

Statement on matters specified in paragraphs 3 & 4 of the Companies (Auditor'sReport) 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 March2018

(i) (a) The Company is maintaining proper records to show full particulars includingquantitative details and situation of fixed assets.

(b) The 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) As the company did not hold any inventory during the year clause (ii) of para 3of the order is not applicable.

(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 Wealth taxservice tax duty of customs duty 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 hadno dues of any financial institution bank Government or debenture holder during theyear.

(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 theInd-AS Financial 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.

FOR A. PATWARI & CO.
Chartered Accountants
Firm registration No. : 326300E
70 Diamond Harbour Road ARVIND PATWARI
Kolkata-700 023 Proprietor
The 29 Day of May 2018 Membership No. 065505

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 2018

We have audited the internal financial controls over financial reporting of LynxMachinery And Commercials Limited ("the Company") as of March 31 2018 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 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 A. PATWARI & CO.
Chartered Accountants
Firm registration No. : 326300E
70 Diamond Harbour Road ARVIND PATWARI
Kolkata-700 023 Proprietor
The 29 Day of May 2018 Membership No. 065505