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Notes to Accounts of Lykis Ltd.

Mar 31, 2018

Note:

(a) These facilities are secured against the following charge on various assets of the Company :

1. Primary : Hypothecation charge on the entire current assets of the Company, both present & future.

2. Collateral : Fixed deposits of third Party and Fixed deposit of the company.

(b) Working Capital Loan from ICICI Bank Limited amounting INR 8,759.27 lakhs (March 31, 2018) and INR 6,786.26 lakhs (March 31, 2017) and DBS Bank Limited INR 683.09 lakhs (March 31, 2018) and INR 574.17 lakhs (March 31, 2017) Bank overdraft facility from Indian Bank amounting to INR 42.71 Lakhs as on March 31, 2018 and INR 44.92 Lakhs as on March 31, 2017.

Note: The above other financial liabilities includes Foreign Currency Forward and Options Contracts and Liability for Corporate Guarantee. Only observable inputs directly and indirectly are available to recognize the same at fair value, accordingly fair value measurement is done considering the Level-2 of Fair Value Hierarchy as per the Ind AS 113.

Note 41 - Financial Risk Management Objectives and Policies

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations directly or indirectly. The Company''s principal financial assets include investments, loans, trade and other receivables, cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The below note explains the sources of risk which the entity is exposed to and how the entity manages the risk :

Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.

Trade receivables

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk management. The Company is in the business of Trading of Tea and FMCG goods. Credit quality of a customer is assessed by the management on regular basis with market information and individual credit limits are defined accordingly. Outstanding customer receivables are regularly monitored and any further services to major customers are approved by the senior management.

An impairment analysis is performed at each re-equipmenting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the re-equipmenting date is the carrying value of each class of financial assets disclosed in Note 15.

On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors and the Company''s historical experience for customers.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in accordance with the Company''s policy. Investments of surplus funds are made generally in the fixed deposits and for funding to subsidiary company. The investment limits are set to minimize the concentration of risks and therefore mitigate financial loss to make payments for vendors.

The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2018 and March 31, 2017 is the carrying amounts as stated in balance sheet except for balances of subsidiary company. The Company''s maximum exposure relating to financial guarantees and financial derivative instruments is noted in the liquidity table below.

Liquidity Risk

The Company monitors its risk of a shortage of funds using a liquidity planning tool.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans, preference shares and unsecured loans. The Company has access to a sufficient variety of sources of funding which can be rolled over with existing lenders. The Company believes that the working capital is sufficient to meet its current requirements.

The table below provides details regarding the maturities of significant financial liabilities as of March 31, 2018, March 31, 2017 and March 31, 2016:

Market Risk

Market risk comprises two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include loans and borrowings, deposits and derivative financial instruments.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced Equipment folio of fixed and variable rate loans and borrowings. The Company''s policy is to keep balance between its borrowings at fixed rates of interest. To manage this, the Company enters into interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount.

Foreign Currency Fluctuation Risk

Foreign Currency Fluctuation Risk is one of the key risk impacting our business. The offshore part of the revenue remains exposed to the risk of Rupee appreciation which is the functional currency of the company vis-a-vis US Dollar, the cost incurred are in Indian rupees and the revenue inflow are in foreign currency. Any weakening of the currency of the functional currency may impact the Company''s cost of Import and cost of borrowing and consequently may increase the cost of financing the Company''s expenditure.

The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.

Equity price risk

The Company''s unlisted equity securities are of subsidiary and deemed cost of the same are taken as previous GAAP carrying value (i.e. cost of acquisition). The value of the financial instruments is not material and accordingly any change in the value of these investments will not affect materially the profit or loss of the Company.

Note 42 : Capital Management

For the purpose of the Company''s capital management, capital includes issued equity share capital, securities premium and all other reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximize the value of the share and to reduce the cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company can adjust the dividend payment to shareholders, issue new shares, etc. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

Note 43 - Segment Information I. Information about Primary Business Segment

The Company has identified business segments as its primary segment and geographic segments as its secondary segment. The Company is engaged in Trading of FMCG Goods and related activities during the year, consequently the Company is having separate reportable business segment for the year ended March 31, 2018.

II. Following are the reportable business segments:

(i) Tea

(ii) FMCG

Revenue and expenses directly attributable to segments are reported under each reportable business segment. Common expenses which are not directly identifiable to each reporting segment have been allocated to each reporting segment on the basis of associated revenues of the segment. All other expenses which are not attributable or allocable segments have disclosed as unallocated expenses.

III. Information about Secondary Geographical Segment

The Company does not have separate reportable geographical segment for the year ended March 31, 2018 and March 31, 2017.

IV. Sensitivity Analysis

The below sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

Notes:

1. The list of related parties above has been limited to entities with which transactions have taken place.

2. Related party transactions have been disclosed till the time the relationship existed.

Note:

a) No provision for interest has been made on the advances or loan taken or given pending reconciliation and confirmation of respective parties.

b) The company has given undertaking to pay '' 88,000/- to DGFT by way of bank guarantee for taking the EPCG Licence. The said bank guarantee is issued by Indian Bank, silchar Branch against Fixed Deposit of the same amount


Mar 31, 2016

i (a) 45,000 Equity Shares of Rs. 10/- each issued as fully paid up for consideration other than Cash.

(b) 12,75,340 Equity Shares of Rs.10/- each issued as fully paid up bonus shares through capitalization of Reserves and Surplus.

(c) The above (a) and (b) were not issued within the period of five years immediately preceding the date as at 31st March, 2016.

(d) 22,07,350 Equity shares of Rs.10 /- each are forfeited shares.

(e) During the year the Company has allotted 9,68,000 nos. of Equity Shares.

ii Terms / rights attached to equity shares.

The company has only one class of equity shares having par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

As per records of the company, including its register of shareholders / members, the above shareholding represents both legal and beneficial ownership of shares.

(a) No provision for interest has been made on the advances taken or given pending reconciliation and confirmation of respective parties.

(b) The company has given unconditional undertaking to Pay Rs. 88000/- to DGFT by way of bank Guarantee for taking the EPCG License.

The said bank guarantee is issued by Indian Bank , Silchar Branch against Fixed deposit of the same amount.

1. There is a agriculture Income Tax Demand of Rs. 6,79,380/- for the Asst. Year 2007-08 which has been disputed by the Company.

2. Pursuant to the transition provisions prescribed in Schedule II to the Companies Act, 2013, the Company has fully depreciated the carrying value of the assets, net of residual value, where the remaining useful life of the asset was determined to be Nil as on 1 April, 2014, and has adjusted an amount of Rs.52,58,387/- against the opening surplus balance in the Statement of Profit and Loss under Reserves and Surplus.

3. Previous year figure has been regrouped or rearranged wherever it is required to be done.


Mar 31, 2015

1. CONTINGENT LIABILITIES NOT PROVIDED FOR

(a) No provision for interest has been made on the advances taken or given pending reconciliation and confirmation of respective parties.

(b) The company has given unconditional undertaking to Pay Rs. 88,000/- to DGFT by way of Bank Guarantee for taking the EPCG Licence. The said bank guarantee is issued by Indian Bank , Silchar Branch against Fixed deposit of the same amount.

2. During the current financial year company has written off Rs 1,74,63,292.42 on a/c of DFIA which was receivable against the export made in earlier year but could not be claimed with the government authority due to non compliance of DGFT norms, statutory authority sanctioning the export benefit, DFIA etc.

3. There is a agriculture income Tax Demand of Rs. 6,79,380/- for the Asst.Year 2007-08 which has been disputed by the Company.

4. Pursuant to the transition provisions prescribed in Schedule Il to the Companies Act, 2013, the Company has fully depreciated the carrying value of the assets, net of residual value, where the remaining useful life of the asset was determined to be Nil as on 1 April, 2014, and has adjusted an amount of Rs.52,58,387/- against the opening surplus balance in the Statement of Profit and Loss under Reserves and Surplus.

5. Previous year figure has been regrouped or rearranged wherever it is required to be done.


Mar 31, 2014

1. (a) 45,000 Equity Shares of Rs.10/-each issued as fully paidup for consideration other than Cash.

(b) 12,75,340 Equity Shares of Rs. 10/- each issued as fully paid up bonus shares through capitalisation of Reserves and Surplus.

(c) The above (a) and (b) were not issued within the period of five years immediately preceding the date as at 31st March, 2014.

(d) 22,07,350 Equity shares of Rs. 10/-each are forfeited shares.

(e) During the year the Company has allotted 40,00,005 nos. of Equity Shares.

2 Terms / rights attached to equity shares.

The company has only one class of equity shares having par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Based on the information/documents available with the Company no creditors is covered under Micro, Small and Medium Enterprise Development Act, 2006. As a result, no interest provision/payments have been made by the Company to such creditors, if any, and no disclosures thereof are made in this financial statement.

3 CONTINGENT LIABILITIES NOT PROVIDED FOR

(a) The liabilties for future payment of Gratuity to employees is roughly estimated and provided to the extent of Rs. 33,712.54 and not based on actuarial basis.

(b) No provision for interest has been made on the advances taken or given pending reconciliation and confirmation of respective parties.

(c) The company has given unconditional undertaking to Pay Rs. 88,000/- to DGFT by way of Bank Guarantee for taking the EPCG Licence. The said bank guarantee is issued by Indian Bank, Silchar Branch aginst Fixed deposit of the same amount.


Mar 31, 2013

1 CONTINGENT LIABILITIES NOT PROVIDED FOR

(a) The liabilties for future payment of Gratuity to employees is roughly estimated and provided to the extent of Rs. 1,03,948.34 and not based on acturial basis.

(b) No provision for interest has been made on the advances taken or given pending reconciliation and confirmation of balances from parties. Balances of Trade receivable .Trade Payable & Advances are subject to confirmation from respective parties.

(c) The company has given unconditional undertaking to Pay Rs. 88,000/- to DGFT by way of Bank Guarantee for taking the EPCG Licence. The said bank guarantee is issued by Indian Bank , Silchar Branch aginst Fixed deposit of the same amount.

2 RELATED PARTY DISCLOSURE

In terms of Accounting Standard 18 -the related party disclosure are given below :

(i) List of Related Parties where control exists and related parties with whom transactions have taken place and relationships:

Name of the Related Party Relationship

Jin-X Marketing Pvt. Ltd. Subsidiary Company

Lykis Pharma Pvt. Ltd Subsidiary Company

Sanzi Group Import & Export Enterprises over which key Managerial personnel are able to exercise significant influence

Kedia Securities Pvt. Ltd. Enterprises over which key Managerial personnel are able to exercise significant influence

Sanzi International Pvt. Ltd. Enterprises over which key Managerial personnel are able to exercise significant influence

Vljay Kishanlal Kedia Key Managerial Personnel

Prince Tulsian Key Managerial Personnel

3. Previous year figure has been regrouped or rearranged wherever necessary.


Mar 31, 2012

I (a) 45,000 Equity shares of Rs10/- each issued as fully paid up for consideration other than Cash.

(b) 12,75,340 Equity shares of Rs 10/- each issued as fully paid up bonus shares through Capitalisation of Reserves and Surplus.

(c) The above (a) and (b) were not issued within the period of five years immediately preceding the date as at 31 st March, 2012.

(d) 22,07,350 Equity shares of Rs10 /- each are forfeited shares.

ii Terms / rights attached to equity shares.

The company has only one class of equity shares having par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

i Terms and conditions : Company has received part Share Application money amounting to Rs.4,00,00,050/- against issue of Preferential Equity Shares.

ii Number of shares proposed to be issued - 53,33,340 nos of Equity Shares of Rs.10/-each

iii Theamountof premium, ifany- Premium ofRs 5/- per equity share.

iv The period before which shares are to be alloted - 53,33,340 nos of Equity Shares to be alloted on or before 09.04.2012.

v Whether the company has sufficient authorized share capital to cover the share capital amount on allotment of shares Out of share application money - Yes the Company has sufficient Authorised Capital to cover up the allotment of above Shares.

vi The period for which the share application money has been pending beyond the period for allotment as mentioned in the share application form along with the reasons for such share - application money being pending.- There is no Application money pending beyond the period as mentioned in the Share Application Form.

1 CONTINGENT LIABILITIES NOT PROVIDED FOR

(a) The liabilties for future payment of Gratuity to employees is roughly estimated and provided to the extent of Rs1,27,900.34 and not based on actuarial basis.

(b) No provision for interest has been made on the advances or loan taken or given pending reconciliation and confirmation of balances from parties. Balances of Trade Receivable .Trade Payable and Loans and Advances are subject to confirmation from respective parties.

(c) The company has given unconditional undertaking to Pay Rs 88,000/- to DGFT by way of Bank Guarantee for taking the EPCG Licence. The said bank guarantee is issued by Indian Bank, Silchar Branch against Fixed deposit of the same amount.

2 EXPENDITURE IN FOREIGN CURRENCY & EARNINGS IN FOREIGN EXCHANGE

During the year company has neither incurred any expenditure in foreign currency nor earned any foreign exchange.

3 DIVERSIFICATION OF BUSINESS

During the year the company has diversified its business and entered in to the business of Fast Moving Consumer Goods (FMCG). It has launched multiple FMCG Products in various brands and has started marketing these products through - out India.

4 The Company has prepared these financial statements as per the format prescribed by Revised Schedule VI to the Companies Act ,1956 issued by Ministry of corporate affairs.Previous period's figure have been recasted/restated to conform to the classification required by the Revised Schedule VI.


Sep 30, 2011

A. Contingent Liabilities no provided or :

i. The liabilities for future payment of gratuity to employees is roughly estimated and provided ' to the extent of Rs. 1,77,295.34 and not based on actuarial basis. ,

ii. Liabilities if any that may arise due to late payment of Central and Agricultural Income Tax, Fringe Benefit Tax, VAT, Tax deducted at source, P. F. Accumulations etc, has not been provided for the actual quantum and its effect on the profitability of current periods profit has ' not been ascertained by the management.

b. No provision for interest has been made on the advances or loan taken or given pending , reconciliation and confirmation of balances from the parties. Balances of Sundry Debtors and ' creditors, loans and advances and others are subject of the confirmation from the respective parties.


Sep 30, 2010

A. Contingent Liabilities not provided or:

i. The liabilities for future payment of gratuity to employees is roughly estimated and provided to the extent of Rs 3,02,295.34 and not based on actuarial basis.

ii. Liabilities if any that may arise due to late payment of Central and Agricultural Income Tax, Fringe Benefit Tax, VAT, Tax deducted at source, P. F. Accumulations etc. has not been provided for the actual quantum and its effect on the profitability of current periods profit has not been ascertained by the management.

b. Share Capital

Share Capital for the period of audit was rectified to the extent of Rs. 28,000/- as compared to the previous year due to reversal of clerical error made in the year 1995-96 on account of excess amount received erroneously transferred to the share allotment account, in respect of which no shares were allotted.

c. No provision for interest has been made on the advances or loan taken or given pending reconciliation and confirmation of balances from the parties. Balances of Sundry Debtors and creditors, loans and advances and others are subject of the confirmation from the respective parties.

d. Segment Information:

Since the companys listing is suspended at stock exchanges for more than three years, the company is exempted to provide the segment information as per the Accounting Standard-17 issued by the Institute of Chartered Accountants of India accordingly the information required under segment information has not been provided.

h. Due from Director or Managing Directors Amount due Max Amount Due

NIL NIL

ii. Previous years figures have been re-arranged and/or re-grouped wherever considered necessary


Jun 30, 2009

A. Contingent Liabilities not provided or:

(i) The liabilities for future payment of gratuity to employees is roughly estimated and provided to the extent of Rs 3,02,295.34 and not based on actuarial basis. (iii) Liabilities if any that may arise due to late payment of Central and Agricultural Income Tax,

Fringe Benefit Tax, VAT, Tax deducted at source, P. F. Accumulations etc. has not been provided for the actual quantum and its effect on the profitability of current periods profit has not been ascertained by the management.

b. No provision for interest has been made on the advances or loan taken or given pending reconciliation and confirmation of balances from the parties. Balances of Sundry Debtors and creditors, loans and advances and others are subject of the confirmation from the respective parties.

c. Segment Information :

Since the companys listing is suspended at stock exchanges for more than two years, the company is exempted to provide the segment information as per the Accounting Standard-17 issued by the Institute of Chartered Accountants of India accordingly the information required under segment information has not been provided.

(i) Previous years figures have been re-arranged and/or re-grouped wherever considered necessary.

(ii) Previous year figures are not comparable with current periods figure since current period covers a period of fifteen Months.

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