We have audited the standalone financial statements of LYNX MACHINERY AND
COMMERCIALS LIMITED (“the Company”), which comprise the Balance Sheet as at
March 31, 2025, 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 ended, and 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 explanations
given to us, except for the effects of the matter described in the Basis for Qualified
Opinion section of our report, the aforesaid standalone financial statements give the
information required by the Companies Act, 2013 (“the Act”), in the manner so
required and give a true and fair view in conformity with the Indian Accounting
Standards prescribed under section 133 of the Act, read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended, (“Ind-AS”) and other accounting
principles generally accepted in India, of the state of affairs of the Company as at
March 31, 2025, and the loss and total comprehensive loss, changes in equity and its
cash flows for the year ended on that date.
Basis for Qualified Opinion
The Company’s trade receivables aggregating to Rs 2,445,169 are old and under
litigation. The said amount includes Rs 2,134,761 receivable from a trade debtor, in
respect of which reference is invited to Note No 19. Since the Hon'ble City Civil &
Sessions Court, Greater Mumbai, has ordered the company to pay Rs 29,38,735 to
the said party (plus interest from date of filing of suit), recovery of the said sum of Rs
2,134,761 from the same party is doubtful in our opinion, more so because the debt is
now barred by limitation. Hence, in our opinion, provision for doubtful debts needs
to be maintained against the said Trade Receivable of Rs 2,134,761. Thus Trade
Receivables and Other Equity are overstated by Rs 2,134,761 and loss and
comprehensive loss for the year are understated by the same amount.
We conducted our audit in accordance with Standards on Auditing (SAs). Our
responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the ethical requirements that are
relevant to our audit of the financial statements under the provisions of the
Companies Act, 2013, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the ICAI’s Code of Ethics. We believe that
the audit evidence we have obtained 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 most
significance 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
financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. We have determined the matter
described below to be the key 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
significant judgment to determine the possible outcome of these disputes. Refer
Note No 19 and 20.
Auditors’ Response
Principal Audit Procedures
Obtained details of dispute and litigation for the year ended 31.03.2025 from the
management. We involved our internal experts to challenge the management’s
underlying assumptions 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 section
134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of
these standalone financial statements that give a true and fair view of the financial
position, financial performance, changes in equity and cash flows of the Company
in accordance with the Ind AS and other accounting principles generally accepted
in India, including the accounting Standards specified under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial statement that give a
true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company’s financial
reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due 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 audit
conducted in accordance with SAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design
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
whether the company has adequate internal financial controls system in place and
the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast significant
doubt on the Company’s ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the 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’s report. However, future events or
conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a statement that we have
complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we
determine those matters that were of most significance in the audit of the financial
statements of the current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be 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 Act, we
give in the "Annexure A", a statement on the matters specified in the paragraphs 3
and 4 of the Order, to the extent applicable.
2. A. As required by Section 143 (3) of the Act, and subject to the possible effects of
the matters described in the Basis for Qualified Opinion paragraph, we report to the
extent applicable that:
(a) We have sought and obtained all the information and explanations which to the
best of 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
the Company 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 Flows
and the Statement of Changes in Equity dealt with by this Report are in agreement
with the books of account;
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with
the Indian Accounting Standards specified under Section 133 of the Act read with
relevant rules issued there under;
(e) On the basis of the written representations received from the directors as on 31st
March, 2025 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2025 from being appointed as a director in terms of
Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to
our separate Report in "Annexure B"; and
B. With respect to the other matters to be included in the Auditor’s Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our
opinion and to the best of our information and according to the explanations given
to us:
I. The Company has disclosed the impact of pending litigations on its financial
position in its Ind-AS financial statements - Refer Note No 5, 19 and 20 to the
Ind-AS financial statements;
II. The Company did not have any long-term contracts including derivative
contracts for which there were any material foreseeable losses;
III. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company;
IV. (a) The management has represented that, to the best of it’s knowledge and
belief, no funds have been advanced or loaned or invested (either from
borrowed funds or share premium or any other sources or kind of funds) by
the company to or in any other person or entity, including foreign entity
(“Intermediaries”), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, whether, directly or indirectly lend or
invest in other persons or entities identified in any manner whatsoever by or
on behalf of the company (“Ultimate Beneficiaries”) or provide any
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, no funds have been received by the company from any person or
entity), including foreign entity (“Funding Parties”), with the understanding,
whether recorded in writing or otherwise, that the company shall, whether,
directly or indirectly, lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Party (“Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries; and
(c) Based on the audit procedures that have been considered reasonable
and appropriate in the circumstances, nothing has come to our notice that
has caused us to believe that the 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
the aforesaid Rule 11 is not applicable.
VI. Based on our examination, the company has used accounting software for
maintaining its books of account which has a feature of recording audit trail
(edit log) facility and the same has operated throughout the year for all
relevant transactions recorded in the software. Further, during the course of
our audit we did not come across any instance of audit trail feature being
tampered with. Additionally, the audit trail has been preserved by the
company as per the statutory requirements for record retention.
FOR A. PATWARI & CO.
Chartered Accountants
Firm Registration No. 326300E
70, Diamond Harbour Road,
Kolkata - 700 023
The 13th day of May, 2025
UDIN : 25065505BMMMVI6289
ARVIND PATWARI
Proprietor
Membership No. 065505
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