Lynx Machinery And Commercials Limited reported a widened net loss of ₹155.37 lakh for the financial year ended March 31, 2026, compared to a net loss of ₹126.86 lakh in the previous year, as zero revenue from operations and rising finance costs impacted its bottom line. For the quarter ended March 31, 2026, the company posted a net loss of ₹64.61 lakh, a significant increase from the loss of ₹36.04 lakh recorded in the corresponding quarter of the previous year. The statutory auditors issued a modified opinion on the financial results, highlighting that trade receivables aggregating to ₹21.34 lakh are old and under litigation, requiring provisions that the company has not made.

The financial performance was primarily driven by expenses, with total expenditure for FY26 rising to ₹156.16 lakh from ₹127.50 lakh in FY25. Finance costs constituted the largest expense component, increasing to ₹112.45 lakh in FY26 from ₹78.16 lakh in the prior year. Other expenses stood at ₹37.28 lakh, while employee benefit expenses were recorded at ₹5.60 lakh. The company reported no revenue from operations for the quarter or the year, relying solely on other income, which totaled ₹0.79 lakh for the full year.

Standalone Financial Results for FY26

Figures in ₹ Lakhs except EPS

Audit Qualification and Management Response

A. Patwari & Co., the statutory auditors, qualified their opinion stating that trade receivables aggregating to ₹21.34 lakh are old and under litigation. The auditors noted that the Hon'ble City Civil & Sessions Court, Greater Mumbai, has ordered the company to pay a sum to a trade debtor, making the recovery of the said amount doubtful, especially as the debt is barred by limitation. Consequently, the auditors asserted that trade receivables and other equity are overstated by ₹21.34 lakh, while the loss for the year is understated by the same amount.

In its response, the management stated that while the company lost the suit regarding the specific debtor, it has filed an appeal in the Honorable High Court of Mumbai. The company expressed hope of recovering the debt and is attempting to hold discussions with the concerned debtor to settle the issue. Based on this expectation, the management decided not to make a provision for bad debts in the accounts. The adjusted figures, accounting for the auditor's qualification, reflect a wider net loss of ₹176.72 lakh and a negative net worth of ₹204.79 lakh for FY26.

Balance Sheet and Cash Flow Highlights

The company's balance sheet size expanded to total assets of ₹1,663.98 lakh as of March 31, 2026, up from ₹1,255.61 lakh in the previous year. This increase was driven largely by other current assets, which rose to ₹1,552.22 lakh. However, shareholder's funds turned more negative, decreasing to a deficit of ₹183.44 lakh from a deficit of ₹28.07 lakh. Long-term borrowings increased significantly to ₹1,362.82 lakh, compared to ₹827.47 lakh in the prior year, indicating a reliance on debt to fund operations.

Cash flow from operating activities remained negative at ₹536.13 lakh for FY26, compared to a negative outflow of ₹142.13 lakh in FY25. The company generated cash inflows from financing activities amounting to ₹535.35 lakh, primarily through proceeds from borrowings, which helped offset the operational cash drain. Cash and cash equivalents at the end of the year stood at ₹1,825.09 ('00), a slight decrease from the previous year's closing balance.

Lynx Machinery and Commercials Limited has disclosed related party transactions for the year ended March 31, 2026, revealing loans and deposits amounting to ₹110,400,000. The disclosure, submitted to the Bombay Stock Exchange, details financial transactions with directors and entities identified as being able to exercise significant influence over the company. These transactions were approved by the audit committee in accordance with Regulation 23(9) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The primary recipients of the funds were directors of the company. Pradyumna Jajodia, Managing Director, received two separate loan approvals of ₹20,000,000 and ₹25,000,000. Paidmanabh Jajodia and Devang Jajodia, both directors, were each approved for loans of ₹20,000,000. Additionally, Srwan Kumar Jajodia, identified as a person able to exercise significant influence, was approved for a loan of ₹25,000,000. The company also reported a deposit of ₹400,000 made to Amisha Engineering Pvt Ltd, another entity falling under the significant influence category.

The filing provides a breakdown of the outstanding balances as of the reporting period. The total opening balance for these transactions was ₹61,509,996, which increased to a closing balance of ₹101,109,996 by the end of the fiscal year. No transactions were ratified by the audit committee during the period, nor were there any new transactions undertaken beyond the approved limits. The disclosure confirms that no financial indebtedness was incurred to facilitate these loans or deposits.

The following table summarizes the related party transactions disclosed for FY26:

The document was signed by Pradyumna Jajodia, Managing Director, and carries the circular stamp of A.A. Patwari & Co., Chartered Accountants. The complete disclosure is available on the company's website and the Bombay Stock Exchange platform.