Report on the Financial Statement
We have audited the accompanying financial statements of LYKIS LIMITED
(the Company ), which comprise the Balance Sheet as at March 31, 2013,
and the Statement of Profit and Loss and Cash Flow \ Statement for the
year then ended, and a summary of significant accounting policies and
other explanatory ; information.
Management''s Responsibility forthe Financial Statements ''
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position
financial performance and cash flows of the Company in accordance with
the Accounting ;
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 (the Act). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We have conducted our audit in
accordance with the Standards on Auditing issued by the Institute of
Chartered Accountants of India. Those Standards require that we comply
with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation ofthe financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India: : a) in the case ofthe Balance Sheet, ofthe state of affairs
ofthe Company as at March 31,2013; b)inthecaseof statementof Profitand
Loss Account, ofthe loss for the year ended on that date; and c) in the
case ofthe Cash Flow Statement, ofthe cash flows forthe yearended on
Report on other Legal and Regulatory Requirment
1 As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the mattersSpecified in paragraphs 4 and 5 ofthe Order.
2.As required by section 227(3) of the Act,we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were | necessary for the purpose of
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this report are in agreement with the books of
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 oftheCompaniesAct, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to Independent Auditors''Report
Referred to in Paragraph I underthe heading of Report on other Legal
and regulatory requirements of our report of even date:
The Company has made available the fixed asset records showing full
particulars including quantitative details and situation of fixed
assets of the company during the audit period under review. As
explained to us, all the fixed assets have been physically verified by
the management in a phased periodical manner, which, in our opinion, is
reasonable having regard to the size of the company and the nature of
its assets. No material discrepancies were noticed on such physical
The Stock of inventories has been physically verified during the period
by the Management at reasonable intervals in our opinion, the procedure
of physical verification of inventories followed by the management are
reasonable and adequate in relation to the size of the company and the
nature of its business. The company has I maintained proper records of
inventories. The discrepancies noticed on physical verification of
stocks as compared to books record were not material. However the same
has been properly dealt with the books of account.
iii. The company has granted or taken unsecured loans and advances
to/from companies, firms and/or other parties covered in the register
maintained under section 301 oftheCompaniesAct, 1956
a)The Company has given loans to subsidiary- in respect of said loan,
the maximum amount outstanding af any time during the year was
Rs.6,60,88,130/- and the Year end balance is Rs.6,60,88,130/-(including
b) In our opinion and according to the information and explanation
given to us, the rate of interest and other |
conditionsoftheloangivenbythecompanyarenotprimefacieprejudidal to the
interest of the company.
c) In respect of said loans and interest thereon, there are n overdue
d)The Principal amounts are repayable on demand.
e) The company has taken interestfree loans of Rs.53,75,000/-from
directors during the year.
iv In our opinion and according to the information and explanations
given to us, there is adequate internal control procedure commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory and fixed assets and with regard to the sale
of goods. Further on the basis of our examination and according to the
information and explanations given to us, we have neither come across
nor have been informed . of any instance of continuing failure or
major weakness in the intemal control systems.
v. In respect ofthe contract or arrangement referred to in section
301 oftheCompaniesAct 1956:
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
section 301 of : the Companies Act, 1956 have been entered.
b) In our opinion and according to the information and explanations''
given to us, the transactions made in :
I pursuance of contracts/arrangements entered in the register
maintained under section 301 of the Companies Act, 1956 and exceeding
the value of Rs. 5,00,000/-in respect of each party during the year have
been made at : prices which appear reasonable as per information
available with the Company.
vi. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India; the
provisions of Section 58Aand 58AAor any other relevant provision of the
Companies Act, 1956 and the rules framed there under are not
vii. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
viii. The Central Government has prescribed the maintenance of cost
records under clause (d) of sub-secti6n (I) of Section 209 of the
Companies Act, 1956 in respect of activities carried out by the
company. We have broadly reviewed the cost records maintained by the
company and are of the opinion that prima facie the prescribed cost
records have been maintained. However, we have not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
ix. According to the information and explanation given to us and on
the basis of our examination of the books of account, the Company is
regular in depositing the amount of undisputed statutory dues of
Provident fund, Sale- tax, VAT, Cess on green leaf and other Statutory
dues with appropriate authorities . However, there are outstanding
settled amount of Rs. 18,83,791/-in respect of Cess on Green leaf
including interest and land revenue amounting to Rs. 2,00,072/- as on
31.03.2013. According to the information and explanation given to us,
there were no undisputed amounts payable in respect of Sales tax and
Vat, Customs Duty, Excise Duty and Cess as on 31 st March 2013 for a
period of more than six months from the date of becoming payable.
Further there were disputed demand of Rs.6,79,380/- on account of
Agricultural Income Tax for the Asst.Year2007-08
x. TheCompany''s accumulated loss at the end of the year is less than
the fifty percent of its net worth.The company: has not incurred cash
losses during the current financial year covered by the audit but
incurred cash losses in the immediately preceding six months period
ended 31st March 2012.
xi. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that Company has not
defaulted in repayment of dues to financial institutions, banks and
xii. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures during the period.
Accordingly, Clause4(xii) of the order is not applicable.
xiii. The Company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly, clause 4 (xiii) of the order is not applicable.
xiv. The company has invested in shares during the period. Proper
records have been maintained of the transactions and contracts. The
shares have been held by the company, in its own name exceptto the
extent of the exemption, if any, granted under section 49 of the
Companies Act, 1956.
xv. According to the information and explanations, the company has not
given any guarantee for loans taken by other from banks and
/orfinancial institutions. :
xvi. During the period, the company has not obtained any fresh Term
loans; accordingly, clause 4(xvi) of the order is not applicable.
xvii. According to information and explanation given to us, the fund
raised on short-term basis has not been used for long-term investments.
xviii. The Company has made preferential allotment of 25,33,335 nos.
of equity shares to parties and companies covered in the register
maintained under section 301 of the Act. However the price paid for
the same is not prejudicial to the interest of the company.
xix. The Company has not issued any debentures. Accordingly clause
4(xix) of the order is not applicable.
xx. The Company has not raised any money by public issues during the
period. Accordingly, clause 4(xx) of the order | : is not applicable.
xxi. In our opinion and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the period.
For SANJAY P AGARWAL & ASSOCIATES
Firm Regn. No. 325683E
Place : Kolkata (SANJAY AGARWAL)
Date : 30th May, 2013 Mem.No,062218