2.14 Provisions, Contingent liabilities and Contingent Assets
Provisions for legal claims, discounts, and returns are recognised when the Company has a present
legal or constructive obligation as a result of past events, it is probable that an outflow of resources
will be required to settle the obligation and the amount can be reliably estimated. Provisions are not
recognised for future operating losses. Where there are a number of similar obligations, the likelihood
that an outflow will be required in settlement is determined by considering the class of obligations as
a whole. A provision is recognised even if the likelihood of an outflow 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 settle the present obligation at the end of the reporting period. The discount rate used to
determine the present value is a pre-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 by the occurrence or non-occurrence of one or more future events not wholly within the
control of the Company, such obligation is disclosed as contingent liability.
Contingent Assets are possible assets that arise from past events and whose existence will be
confirmed only by occurrence 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 basis of judgement of management.
19 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 5) 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.
20 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.
21 As reported in Note No. 25 of the Financial Statements of the Company for the immediately preceding
Financial Year, the Lease Deed with Syama Prasad Mookerjee Port (SMP), Kolkata was executed
during the Financial Year 2023-24. The Company has paid / incurred an amount of Rs (in '00)
11,02,211.37 (PY 6,84,161.60) to various parties under different heads which has been capitalised.
22 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.
23 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.
24 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 31.03.2025
Explanation for change in the ratio by more than 25% as compared to the preceding year
The decrease in current ratio is owing to increase in current liabilities.
The decrease in Return on Equity ratio is due to higher losses incurred during the year as 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.
Chartered Accountants
Firm Registration No.
326300E
Pradyumna Jajodia Padmanabh Jajodia
ARVIND PATWARI
Managing Director Director
ProPr‘etor (DIN:00138175) (DIN:00086099)
70, Diamond Harbour Road,
Kolkata - 700 023 Devang Jajodia Palak Saini
The 13th day of May, 2025 Chief Financial Officer Company Secretary
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