Notes to Accounts of Lynx Machinery & Commercials Ltd.

Mar 31, 2024

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 PA}T^WARI *?¦"* ^Jajo^dia 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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Mar 31, 2015

1. The above Cash Flow Statement has been compiled i prepared based on the audited accounts of the Company under the 'Indirect Method'as set out in the Accounting Standard -Son Cash Flow Statements issued by die Institute of Chartered Accountants of India.

2. Figures for the previous year have been rearranged and regrouped wherever necessary. The accom- panying Notes 1 and 2 are an integral part of the Financial Statements.

Amounts in the Financial statements are presented in Rupees including per share data. Previous year figures have been regrouped/reclassified wherever necessary to conform to the current period presentation.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Term Loans from a body corporate is secured by way of hypothecation of asset (vehicle) financed. Terms of Repayment-The loan is repayable in equated monthly installments of Rs 65,484, the last installment felling due in April 2015.

Deferred tax assets and deferred tax liabilities have been offset wherever the Company has a legally enforceable right to set off current tax assets against current fax liabilities and where the deferred tax asset© and deferred tax liabilities relate to income taxes levied by the same taxation authority.

3. CONTINGENT LIABILITIES AND COMMITMENTS TO THE EXTENT NOT PROVIDED FOR

Claims against the Company not acknowledged as debts Rs 74.42 lacs (PY Rs 46,58 lacs) and interest thereon.

4. 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 manage- ment is not maintainable.The matter is sub-judice. and final effect will be considered in the accounts when the issue is finally settled.

5. This Is a single segment company in accordance with AS-17 (Segment Reporting) issued by the ICAi. Hence, disclosure of segment information is not applicable.

6. 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.

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Mar 31, 2014

1. CONTINGENT LIABILITIES AND COMMITMENTS TO THE EXTENT NOT PROVIDED FOR Claims against the Company not acknowledged as debts Rs 46.58 lacs and interest thereon (Previous year same position).

2. This is a single segment company in accordance with AS-17 (Segment Reporting) issued by the ICAI. Hence, disclosure of segment information is not applicable.

3. 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.

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Mar 31, 2013

1.1 CONTINGENT LIABILITIES AND COMMITMENTS TO THE EXTENT NOT PROVIDED FOR

Claims against the Company not acknowledged as debts Rs 46.58 lacs and interest thereon (Previous yearsame position).

1.2 This is a single segment company in accordance with AS-17 (Segment Reporting) issued bythe ICAI. Hence, disclosure of segment information is not applicable

1.3 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.

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Mar 31, 2012

Amounts in the Financial statements are presented in Rupees including per share data. Previous yearfigures have been regrouped/reclassified wherever necessary to conform to the current period.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Deferred tax assets and deferred tax liabilities have been offset wherever the Company has a legally enforceable right to set off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.

The company's liability in respect of Gratuity payable to employees has been funded with Life Insurance Corporation of India (LICI). The contribution for the year to LICI amounting to Rs 678,101/- (PY Rs 38,796) has been duly paid and provided for in the Accounts.

1.1 CONTINGENT LIABILITIES AND COMMITMENTS TO THE EXTENT NOT PROVIDED FOR

Claims against the Company not acknowledged as debts Rs 46.58 lacs and interest thereon (Previous year same position).

1.2 This is a single segment company in accordance with AS-17 (Segment Reporting) issued by the ICAI. Hence, disclosure of segment information is not applicable.

1.3 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.

Note: There are no provisions for doubtful debts or amounts written off or written back during the year for debts due from or to related parties.

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Mar 31, 2010

1. Claims against the Company not acknowledged as debts Rs 46.58 lacs and interest thereon (Previous year same position).

2. The companys liability in respect of Gratuity payable to employees has been funded with Life Insurance Corporation of India (LICI). The contribution for the year to LICI Rs. 3,108/- has been duly paid and provided for in the Accounts.

3. The total managerial remuneration paid/payable to the Managing Director amounted to Rs 2,377,428/- (Previous year Rs 2,492,448/-).

4. This is a single segment company in accordance with AS-17 (Segment Reporting) issued by the ICAI. Hence the question of disclosure of segment information does not arise.

5. Interest charged to Profit & Loss Account includes Rs Nil paid (payable) to a Director (Previous Year Rs 81,536).

6. Sundry Debtors outstanding for more than six months include Rs 2,134,761 which are under litigation. The management is hopeful of recovering the same.

7. As regards payment of managerial remuneration, the management has sought opinion from experts. The management, based on the said opinion of the experts, is of the view that the payment of managerial remuneration is in compliance with the conditions stipulated under Schedule XIII to the Companies Act, 1956.

8. With regard to Storage & Hire Income, the sub-lease deed with Oil & Natural Gas Corporation Limited (ONGC) has expired on 31st December, 2009. The Company served a Notice to the sub-lessee to vacate and handover peaceful possession of the premises. However, the sub- lessee has not vacated the premises so far and negotiations are under progress for the renewal of sub-lease deed. Considering the fact that the management is negotiating fresh lease terms with the sub-lessee, Storage & Hire Income (Lease Rentals) has been taken into account as per the prevailing terms with the sub-lessee. In case of any changes, the same shall be considered in the accounts when the fresh sub-lease deed is signed with the sub- lessee.

NOTES :

1. The above Cash Flow Statement has been compiled / prepared based on the audited accounts of the Company under the ‘Indirect Method’ as set out in the Accounting Standard - 3 on Cash Flow Statements issued by the Institute of Chartered Accountants of India and the reallocations made as required for the purpose.

2. The Schedule referred to above forms an integral part of the Cash Flow Statement.

3. Figures for the previous year have been rearranged and regrouped wherever necessary.