2.14 Provisions, Contingent liabilities and Contingent Assets
Provisions for legal claims, discounts, and returns are recognised when the Company has a present
legalor constructive obligation as a result of past events, it is probable that an outflow of resources
will be required tosettle the obligation and the amount can be reliably estimated. Provisions are not
recognised for future operatinglosses.Where there are a number of similar obligations, the likelihood
that an outflow will be required in settlement isdetermined by considering the class of obligations as
a whole. A provision is recognised even if the likelihood of anoutflow with respect to any one item
included in the same class of obligations may be small.
Provisions are measured at the present value of management's best estimate of the expenditure
required to settlethe present obligation at the end of the reporting period. The discount rate used to
determine the present value is apre-tax rate that reflects current market assessments of the time
value of money and the risk specific to the liability.The increase in the provision due to the passage of
time is recognised as interest expense.
Contingent liabilities are possible obligations that arise from past events and whose existence will be
confirmed bythe occurrence or non-occurrence of one or more future events not wholly within the
control of the Company, suchobligation is disclosed as contingent liability.
Contingent Assets are possible assets that arise from past events and whose existence will be
confirmed only byoccurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the Company.Contingent assets are disclosed in financial statements when in
flow of economic benefits is probable on the basisof judgement of management.
22 CONTINGENT LIABILITIES AND COMMITMENTS TO THE EXTENT NOT PROVIDED FOR
Claims against the Company not acknowledged as debts Rs 66.04 lacs (PY Rs 66.04 lacs) and
interest thereon. It includes a sum of Rs 38,19,817 towards amount claimed by a trade debtor. A suit
was filed by the said trade debtor in 1996 for recovery of Rs 38,19,817 from the company together
with interest. The Hon'ble City Civil & Sessions Court, Greater Mumbai, ordered the company to pay
Rs 29,38,735 to the said party plus interest from date of filing of suit, vide their order of 20.10.2018.
The Company has filed an appeal against the said order of The Hon'ble City Civil & Sessions Court,
Greater Mumbai, before Hon'ble High Court Mumbai. Attention is also drawn to the fact that Trade
Receivables (Note No 6) include a sum of Rs 21,34,761 receivable by the company from the said
trade debtor. The management is hopeful of recovery of this amount. Effect will be considered in the
accounts on final outcome of the issue.
23 In respect of company's leasehold premises, the company has claimed certain amounts from the sub¬
lessee towards damages caused by them to the company's property during their occupation, against
which the company has witheld the security deposit. Against the same, the sub-lessee has filed a suit
against the company which according to the management is not maintainable.The matter is sub-
judice, and final effect will be considered in the accounts when the issue is finally settled.
24 Pursuant to Term Sheet entered by and between the Company & Warden Farms Private Limited, the
Company has received an advance of Rs (in '00) 4,66,100.00 from Warden Farms Private Limited, for
a Business Transaction contemplated under a Term Sheet to be completed on or before September
30, 2023.
However, since the Company could not meet its obligations under the Term Sheet, the advance
received from Warden Farms was converted into ICD w.e.f. 01.10.2023 bearing Interest @ 12% p.a.
Warden Farms has assigned the ICD to its Directors on the same terms and conditions.
The Company needed further funds urgently for its operations, and the Company requested its
Directors to fund the further requirements of the Company. The Directors agreed to fund the further
requirements of the Company by contributing an amount of Rs (in '00) 3,26,000.00 as loan.
25 As reported in Note No. 25 of the Financial Statements of the Company for the Financial Year 2022¬
23, the Lease Deed with Syama Prasad Mookerjee Port (SMP), Kolkata was executed during the
current Financial Year 2023-24. The Company has paid an amount of Rs (in '00) 6,84,161.60 to
various parties under different heads which has been capitalised including Lease Rent paid to SMP
for the period October 17, 2022 to October 16, 2024.
26 Material events occurring after the date of the Balance Sheet but before signing of the Balance
Sheet
To reduce the interest and the financial burden of the Company it was decided by the Company to
partly offset the above loan to the tune of Rs (in '00) 200,000.04 by issuing Equity to the Directors by
way of preferential allotment.
The Board of Directors vide their Meeting held on 25th April 2024, have passed a Resolution for
Conversion of Part of the ICD's into Equity Shares of the Company on Preferential Allotment basis.
The necessary actions required as per the provisions of the Companies Act, have been complied with
and the Company is awaiting In Principal Approval from Bombay Stock Exchange for allotment and
subsequent Listing of the above Shares.
The issue of Shares on Preferential basis has triggered the Open Offer under Regulation 3 of SEBI,
Substantial Acquisition of Shares and Takeovers (SAST) Regulations 2011 and the Proposed
Acquirers will comply with the applicable provisions of the Law.
27 Based on the synergies, risks and returns associated with business operations and in terms of Ind AS
- 108, the company is predominantly engaged in the business of a single reportable segment of
warehousing during the year. Therefore disclosure requirements of Ind AS - 108 on Segment
Reporting are not applicable.
28 In the opinion of the Board, any of the assests other than Fixed Assets have a value on realization, in
the ordinary course of business, at least equal to the amount at which they are stated.
29 The management is of the opinion that no case of impairment of asset exist under the provision of Ind
AS - 36 on Impairment of Assets as at 31.03.2024
Explanation for change in the ratio by more than 25% as compared to the preceding year
The increase in current ratio is owing to increase in current assets.
Increase in ROCE is due to higher capital employed compared to previous year.
As per our report attached For and on behalf of the Board of Directors
Lynx Machinery And Commercials Limited
FOR A. PATWARI & CO.
Pradyumna Jajodia Padmanabh Jajodia
Chartered Accountants
Director Director
Firm Registration No. din : 00138175 din : 0086099
326300E
ARV'ND PATWARI *?Ý"* Jajodia Palak Saini
Proprietor Chief Financial „
Company
Membership No. 065505 Officer Secretary
70, Diamond Harbour Road,
Kolkata - 700 023
The 30th day of May, 2024
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