To the Members ot
DYNAMIC INDUSTRIES LIMITED
Ahmedabad.
Report on the Audit of the financial statements Opinion
We have audited the accompanying financial statements of DYNAMIC
INDUSTRIES LIMITED ("the Company"), which comprise the balance sheet as at 31*
March, 2023, and the statement of Profit and Loss (including other comprehensive income),
statement of changes in equity and statement of cash flows for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies
and other explanatory information (hereinafter referred to as financial
statements?).
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the information required
by the Companies Act, 2013 (The Ad) in the manner so required and give a true and fair
view in conformity with the Indian Accounting Standards prescribed under section 133 of
the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended,
find AS") and other accounting principles generally accepted in India, of the state
of affairs of the Company as at 31st March, 2023, and its profit and total
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing
(SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities
under those Standards are further described in the Auditor?s Responsibilities for the
Audit of the financial Statements section of our report. We are independent of the Company
in accordance with fine Code of Ethics issued by the Institute of Chartered Accountants of
India together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies Act, 2013 and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
We have determined that there are no key audit matters to communicate
in our report.
Otherlnformation
The Company?s Board of Directors is responsible for the other
information. The other information comprises the information induded in the Board?s
Report, Management Discussion and Analysis, Report on Corporate Governance, including
Annexures to Board?s report but does not include the standalone financial statements
and our auditor?s report thereon.
Our opinion on the standalone financial statements does not cover the
other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements,
our responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the standalone financial statements or
our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a
material misstatement of this other information; we are required to report that fact. We
have nothing to report in this regard.
The Company?s Board of Directors is responsible for the matters
stated in section 134(5) of the Companies Act, 2013 ("the Act ?) with respect to
the preparation of these financial statements that give a true and fair view of the
financial position, financial performance, changes in equity and cash flows of the Company
in accordance with the accounting principles generally accepted in India, including the
accounting Standards specified under section 133 of the Act. This responsibility also
includes maintenance of adequate accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statement that give
a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is responsible for
assessing the Company?s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of
accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the
Company?s financial reporting process. Auditor?s Responsibilities for the Audit
of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditor?s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate in the circumstances. Under
section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our
opinion on whether the company has adequate internal financial controls system in place
and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management?s use of the
going concern basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast significant
doubt on the Company?s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor?s
report to the related disclosures in the financial statements or if such disclosures are
inadequate, to modify our opinion. Our condusions are based on the audit evidence obtained
up to the date of our auditor?s report However, future events or conditions may cause
the Company to cease to continue as a going concern. •
• Evaluate the overall presentation, structure and content of the
financial statements, including the disclosures, and whether Ihe financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the financial
statements that, individually or in aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of the financial statements may be
influenced. We consider quantitative materiality and qualitative factors in (i) planning
the scope of our audit work and in evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among
other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our
audit
We also provide those charged with governance with a statement that we
have complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we
determine those matters that were of most significance in the audit of the financial
statements of the current period and are therefore the key audit matters. We describe
these matters in our auditors report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor?s Report) Order, 2020
("the Order"), issued by the Central
Government of India in terms of sub-sedion (11) of section 143 of the
Companies Act, 2013, we give
in the Annexure - A - a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the
extent applicable.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the purposes of our audit
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet the Statement of Profit and Loss (including other
comprehensive income), Statement of Changes in Equity, and the Cash Flow Statement dealt
with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid financial Statements comply with the
Ind AS specified under Section 133 of the Act, read with Companies (Indian Accounting
Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the
directors as on 31st March, 2023 taken on record by the Board of Directors, none of the
directors is disqualified as on 31st March, 2023 from being appointed as a director in
terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls
over financial reporting of the Company and the operating effectiveness of such controls,
refer to our separate Report in "Annexure B" and
(g) With resped to the other matters to be included in tie Auditors
Report in accordance with the requirements of Section 197(16) of the Act, as amended, in
our opinion and to the best of our information and according to the explanations given to
us, the remuneration paid by the Company to its Directors during the year is in accordance
with the provisions of Section 197 of the Act.
(h) With respect to the other matters to be included in the Auditors
Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of cur
information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 36 to the financial
statements;
(ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable losses.
(iii) (a) The Management has represented that, to the best of its
knowledge and belief, no funds
(which are material either individually or in the aggregate) have been
advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other person or entity, including
foreign entity ("Intermediaries"), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge
and belief, no funds (which are material either individually or in the aggregate) have
been received by the Company from any person or entity, including foreign entity
("Funding Parties"), with the understanding, whether recorded in writing or
otherwise, that the Company shall, whether, directly or indirectly, lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or
fine like on behalf of the Ultimate Beneficiaries;
(c) Based on the auditprocedures that have been considered reasonable
and appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided
under (a) and (b) above, contain any material misstatement
(iv) Proviso to Rule 3(1) of the Companies (Accountants) Rules, 2014
for maintaining books of accounts using accounting software which has a feature of
recording audit frail (edit log) facility is applicable to the company with effect from 1st
April, 2023, and accordingly reporting under Rule 11(g) of the Companies Audit and Auditor
Rules 2014 is not applicable for the financial year ended 31st March, 2023.
(v) As stated in Note 18.1 to the financial statements.
(a) The final dividend proposed in the previous year, declared and paid
by the Company during the year is in accordance with Section 123 of the Act, as
applicable.
(i) (a) (A) The Company has maintained proper records showing full
particulars, including quantitative
details and situation of Property. Rant and Equipment and relevant
details of right-of-use assets.
(B) The Company has maintained proper records showing full particulars
of intangible assets.
(b) The Company has a program of physical verification of Property,
Plant and Equipment and right-of- use assets so to cover all the assets once every three
years which, in our opinion, is reasonable having regard to the size of the Company and
the nature of its assets. Pursuant to the program, certain Property, Plant and Equipment
were due for verification during the year and were physically verified by the Management
during the year. According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
(c) Based on the information provided to us the title deed of all the
immovable properties disclosed in the financial statements are held in the name of the
Company.
(d) According to information and explanation given to us, the Company
has not revalued its Property, Plant and Equipment (including Right of Use assets) or
intangible assets during the year. Accordingly, clause 3 (i)(d) of the Order in not
applicable to the Company.
(e) According to information and explanation given to us, no
proceedings have been initiated or are pending against the Company for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.
Accordingly, clause 3(i)(e) of the Order in not applicable to the Company.
(ii) (a) According to information and explanation given to us, the
Management of the Company has
conducted physical verification of inventory at reasonable intervals
and no material discrepancies were noticed on such physical verification during the year.
(b) According to information and explanation given to us, the Company
has been sanctioned working capital limits in excess of ? 5 crore, in aggregate, during
the year, from banks on the basis of security of current assets. Quarterly return &
statement filed by the Company with such banks or financial institutions are materially in
agreement with the books of account of the company.
(iii) In respect of investment made by tie company, providing any
guarantee or security or granted any loans or advances in the nature of loans, secured or
unsecured, to companies, firms, Limited Liability Partnerships or any other parties,
during the year:
(a) During toe year, toe company has not provided any loans or advances
in the nature of loans or guarantee to companies, firms, limited liability partnership or
any other parties.
As the company has not provided any loans and advances in the nature of
loans or guarantees or securities, hence reporting under clause 3(iii)(b), (c), (d), (e)
and (f) of the order is not applicable to the company.
(iv) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of section 185 and 186 of the
Act, wherever applicable with respect to the loans, investments, guarantees and
securities.
(v) According to information and explanations given to us, the Company
has not accepted any deposits within toe meaning of section 73 to 76 of the Act and the
Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordingly, the provisions of
Clause 3(v) of the Order are not applicable to the Company.
(vi) We have broadly reviewed toe cost records maintained by the
Company pursuant to rules made by toe Central Government. We are of the opinion that prima
fade the prescribed accounts and records have been maintained and being made. We have not,
however, made a detailed examination of these records with a view to determine whether
they are accurate or complete
(vii) (a) According to the information given to us, In our opinion, the
Company has generally been regular in depositing undisputed statutory dues, including
Goods and Services tax, Provident Fund, Employees? State Insurance, Income Tax, duty
of Custom, Cess and other material statutory dues applicable to it with the appropriate
authorities and There were no undisputed amounts payable in respect of Goods and Service
tax, Provident Fund. Employees State Insurance. Income Tax. duty of Custom, Cess and
other material statutory dues in arrears as at 31st March, 2023 for a period of
more than six months from the date they became payable.
(b) According to the information and explanations given to us, the
company has no dispuled outstanding statutory dues as at 31st March, 2023 other than
stated below:
| Name of the Statute |
Nature of Dues |
Amount * in lacs |
Period to which the amount relates |
Forum where dispute is pending |
| Income Tax Act, 1961 |
Income Tax |
1.45 12.21 1.68 |
A.Y. 2013-2014 A.Y. 2003-2004 A.Y. 2008-2009 |
CIT(A), Ahmedabad CIT(A), Ahmedabad CIT(A),
Ahmedabad |
| Customs Act, 1962 |
Customs Duty |
171.14 |
F.Y. 2006-2007 & F.Y. 2007-2008 |
CESTAT, Ahmedabad |
(viii) According to information and explanations given to us, the
Company has not surrendered or disclosed any unrecorded transaction as income during the
year in the tax assessments under the Income Tax Act, 1961. Accordingly, the provisions of
Clause 3(viii) of the Order are not applicable to the Company.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of
the records of the Company, the company has not defaulted in repayment
of loans or other borrowings or in the payment of interest thereon to any lender.
(b) According to the information and explanations given to us, the
Company has not been declared as wilful defaulter by any bank or financial institution or
other lender.
(c) According to the information and explanations given to us by the
management, the Company has not obtained any term loans. Accordingly, clause 3(ix)(c) of
the Order is not applicable.
(d) In our opinion and according to the information and explanation
given to us, the company has not raised any funds on short term basis which have been
utilised for long term purposes. Accordingly, the provisions of Clause 3{ix){d) of the
Order are not applicable to the Company.
(e) On an overall examination of the financial statements of the
Company, the Company has not taken any funds from any entity or person on account of or to
meet the obligations of its subsidiaries, associates or joint venture.
(f) The Company has not raised any loans during the year on the pledge
of securities held in subsidiaries, associates or joint venture and hence reporting on
clause 3(ix)(f) of the Order is not applicable.
(x) (a) Accordingly to information and explanation provided to us, the
Company has not raised moneys by
way of initial public offer or further public offer {including debt
instruments) during the year. Accordingly, the provisions of Clause 3(x)(a) of the Order
are not applicable to the Company.
(b) The company has not made any preferential allotment or private
placement of shares or convertible debentures (fully, partially or optionally convertible)
during the year. Accordingly, the provisions of Clause 3(x)(b) of the Order are not
applicable to the Company.
(xi) (a) Accordingly to information and explanation provided to us, no
fraud by the Company or no fraud on
the Company has been noticed or reported during the year. Accordingly,
the provisions of Clause 3(xi)(a) of the Order are not applicable to the Company.
(b) No report under sub-section (12) of section 143 of the Companies
Act has been filed by the auditors in Form ADT-4 as proscribed under rule 13 of Companies
(Audit and Auditors) Rules, 2014 with the Central Government. Accordingly, the provisions
of Clause 3(xi)(b) of the Order are not applicable to the Company.
(c) As represented by the management, there are no whistle blower
complaints received by the Company during the year.
(xii) In our opinion and according to the information and explanations
given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the
Order is not applicable.
(xiii) According to the information and explanations given to us,
transactions with the related parties are in compliance with section 177 and 188 of the
Act, where applicable and details have been disclosed in the Ind AS Financial Statements
as required by the applicable accounting standards.
(xiv) (a) In our opinion and according to the information and
explanation provided to us, the Company has
an internal audit system commensurate with the size and nature of its
business.
(b) The internal audit reports furnished by the internal auditors for
the period under audit have been considered by us.
(xv) In our opinion and according to the information and explanations
given to us during the yearthe Company has not entered into any non-cash transactions with
its Directors or persons connected with its directors and hence provisions of section 192
of the Companies Act, 2013 are not applicable to the Company.
(xvi) (a) In our opinion, the Company is not required to be registered
under section 45-IA of the Reserve
Bank of India Ad, 1934. Hence, reporting under clause 3(xvi)(a), (b)
and (c) of the Order is not applicable.
(b) In our opinion, there is no core investment company within the
Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) and
accordingly reporting under clause 3(xvi)(d) of the Order is not applicable.
(xvii) In our opinion and according to the information and explanation
provide to us, the Company has not incurred cash losses during the current financial year
and in the immediately preceding financial year.
(xviii) During the year there has not been any resignation of the
statutory auditors. Accordingly, paragraph 3(xviii) of the Order are not applicable.
(xix) According to the information and explanations given to us and on
the basis of the financial ratios, ageing and expected dates of realization of financial
assets and payment of financial liabilities, other information accompanying the financial
statements, our knowledge of the Board of Directors and management plans and based on our
examination of the evidence, nothing has come to our attention, which causes us to believe
that any material uncertainty exists as on the date of the audit report that Company is
not capable of meeting its liabilities existing at the date of balance sheet as and when
they fall due within a period of one yearfrom the balance sheet date. We, however, state
fiat this is not an assurance as to the future viability of the Company. We further state
that our reporting is based on the information available and explanation provided up to
the date of the audit report and we neither give any guarantee nor any assurance that all
liabilities falling due within a period of one year from the balance sheet date, will get
discharged by the Company as and when they fall due:?
(xx) In our opinion and according to the information and explanations
given to us, the company does not have net worth of rupees five hundred crore or more, or
turnover of rupees one thousand crore or more or a net profit of rupees five crore or more
during immediately preceding financial year. Hence, reporting under clause 3{xx)(a) and
(b) of the Order is not applicable.
Report on the Internal Financial Controls under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial
reporting Dynamic Industries Limited ("the Company") as of 31st
March, 2023 in conjunction with our audit of the financial statements of the Company for
the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Company?s management is responsible for establishing and
maintaining internal financial controls based on the internal control over financial
reporting criteria established by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting issued by the Institute of Chartered Accountants of India
(‘ICAI?). These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively for
ensuring the orderly and efficient conduct of its business, including adherence to
company?s policies, the safeguarding of its assets, the prevention and detection of
frauds and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Companies Ad, 2013.
Auditors? Responsibility
Our responsibility is to express an opinion on the Company?s
internal financial controls over finandal reporting based on our audit. We conducted our
audit in accordance with the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued
by ICAI and deemed to be prescribed under section 143(10) of the Companies Ad, 2013, to
the extent applicable to an audit of internal financial controls, both applicable to an
audit of Internal Financial Controls and, both issued by the Institute of Chartered
Accountants of India. Those Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls overfinancial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about
the adequacy of the internal financial controls system overfinancial reporting and their
operating effectiveness. Our audit of internal financial controls over financial reporting
included obtaining an understanding of internal financial controls over financial
reporting, assessing the risk that a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the Company?s internal
financial controls system ova" financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company?s internal financial control over financial reporting is
a process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. A company?s internal financial control
over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the
company;
(2) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorisations of management and directors of the
company; and
(3) provide reasonable assurance regarding prevention or timely
detection of unauthorised acquisition, use, or disposition of the company?s assets
that could have a material effect on the financial statements
Inherent Limitations of internal Financial Controls Over Financial
Reporting
Because of the inherent limitations of internal financial controls over
financial reporting, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate
internal financial controls system over financial reporting and such internal financial
controls over financial reporting were operating effectively as at 31st March, 2023, based
on the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India.
+91-9892691696
