To the Members of Dynamic Cables Limited
Report on the Audit of the Financial Statements
We have audited the financial statements of Dynamic Cables Limited ("theCompany") which comprise the Balance Sheet as at 31 March 2022 and the statement ofprofit and loss (including other comprehensive income) statement of changes in equity andstatement of cash flow for the year then ended and notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information(hereinafter referred to as "the Financial Statements").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Financial Statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2022 and profit and other comprehensiveincome 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) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion on Financial Statement.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Financial Statements of the current year. These matterswere addressed in the context of our audit of the financial statements as a whole
and in forming our opinion thereon and we do not provide a separate opinion on thesematters.
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Company's annual report but doesnot include the Financial Statements and our auditors' report thereon. The annual reportis expected to be made available to us after the date of this auditor's report.
Our opinion on the Financial Statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the Financial Statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the FinancialStatements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these Financial Statements that givea true and fair view of the financial position financial performance changes in equityand cash flow of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards ("Ind AS") specified underSection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring accuracyand completeness of the accounting records relevant to the preparation and presentationof the Financial Statements that give a true and
fair view and are free from material misstatement whether due to fraud or error.
In preparing the financial statements the management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless the Boardof Directors either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the FinancialStatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act we are also responsible for expressing our opinion on whether the companyhas adequate internal financial controls with reference to financial statements in placeand the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditors'report. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditors' report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order 2020 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein "Annexure A" a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent applicable.
(A) 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 bestof 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 theCompany so far as it appears from our examination of those books.
(c) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the statement of changes in equity and the Statement of Cash Flows dealt with bythis Report are in agreement with the books of account.
(d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31March 2022 taken on record by the Board of Directors none of the directors aredisqualified as on 31 March 2022 from being appointed as a director in terms of Section164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".
(g) The Company has paid/ provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.
(h) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at 31 March 2022 onits financial position in its financial statements - Refer Note 38 to the financialstatements;
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on longterm contracts includingderivative contracts;
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company; and
iv. (a) The management has represented that
to the best of its knowledge and belief as disclosed in the notes to the Standalone
Financial Statements no funds have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the Company toor in any other person(s) or entity(ies) including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries (Refer Note 51(o) to the Standalone FinancialStatements);
(b) The management has represented that to the best of its knowledge and belief asdisclosed in the notes to the Standalone Financial Statements no funds have been receivedby the Company from any person(s) or entity(ies) including foreign entities("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries (Refer Note 51(o) to the StandaloneFinancial Statements); and
(c) Based on such audit procedures that we considered reasonable and appropriate in thecircumstances nothing has come to our notice that has caused us to believe that therepresentations under subclause (a) and (b) contain any material misstatement.
v. The dividend declared and paid during the year by the Company is in compliance withSection 123 of the Act
For Madhukar Garg & Company
Chartered Accountants lCAl Firm Registration No. 000866C
Partner M.No.071179 UDIN: -22071179AJWNVI9610
Place: JAIPUR Date: 30.05.2022
With reference to the Annexure A referred to in the Independent Auditors' Report to themembers of the Company on the financial statements for the year ended 31 March 2022 wereport the following:
i. In respect of Company's Property Plant and
a. (A) According to the information and explanation
given to us the company is maintaining proper records showing full particularsincluding quantities details and situation of Property Plant and Equipment;
(B) According to the information and explanation given to us the company ismaintaining proper records showing full particulars of Intangible assets;
b. The management during the year has physically verified the Property Plant andEquipment of the company and no material discrepancies were noticed on such physicalverification.
c. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of all the immovable properties(other than properties where the company is the lessee and the lease agreements are dulyexecuted in favour of the lessee) disclosed in the financial statements are held in thename of the company. except Land purchased by the company through Sale deed executed inthe name of the company on 10-03-2016 situated at H-1-601 B Rd. no. 6 VKI Area Jaipurvalue Rs. 4822450.00 for which lease deed has not been prepared till now.
d. As informed and explained to us the management has not revalued its Property Plantand Equipment (including Right of Use assets) or intangible assets or both during theyear.
e. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company no proceedings have been initiated or arepending against the company for holding any benami property under the Prohibition ofBenami Property Transactions Act 1988 (previously known as Benami Transactions(Prohibition) Act 1988) and rules made thereunder.
2. In respect of Company's Inventory:
a. As explained to us the inventories were physically verified during the year bymanagement at reasonable intervals. In our opinion the coverage and procedure of suchverification by the management is appropriate. No discrepancies of 10% or more in theaggregate for each class of inventory were noticed during such physical verification bythe management.
b. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has been sanctioned working capitallimits in excess of five crore rupees in aggregate from banks or financial institutionson the basis of security of current assets. In our opinion the quarterly returns orstatements filed by the Company with such banks or financial institutions are in agreementwith the books of account of the Company.
3. According to the information and explanations given to
us and on the basis of examination of books and records
a. A. The Company has not granted any loans or
provided advances in the nature of loans or stood guarantee or provided security to itssubsidiaries associates and joint ventures during the year. Accordingly reporting underclause 3(iii)(a)(A) of the Order is not applicable.
B. The Company has not granted any loans or provided advances in the nature of loans orstood guarantee or provided security to parties other than subsidiaries joint venturesand associates during the year. Accordingly reporting under clause 3(iii)(a)(B) of theOrder is not applicable.
b. During the year the investments made and guarantees provided to companies are notprejudicial to the Company's interest.
c. The Company has not granted loans and advances in the nature of loans to companiesfirms Limited Liability Partnerships or any other parties. Accordingly the requirementto report on clause 3(iii)(c) (d) (e) and (f) of the Order are not applicable to theCompany.
4. In our opinion and according to information and explanations given to us the Companyhas complied with the provisions of section 185 and 186 of the Act
5. The company has not accepted any deposits under the provisions of section 73 to 76or any other relevant provisions of the Companies Act and the rules framed there underand as such the question of compliance under the Companies Act or any other directives ororders does not arise.
6. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148(1) of the Companies Act related to the manufacturing activities and are of theopinion that prima facie the specified accounts and records have been made
and maintained. We have not however made a detailed examination of the same.
7. (a) According to information and explanations given to
us and on the basis of our examination of books of accounts records the Company hasbeen generally regular in depositing undisputed statutory dues including Goods and ServiceTax provident fund employees' state insurance income-tax sales-tax service tax valueadded Tax duty of customs duty of excise and any other statutory dues with theappropriate authority. According to the information and explanation given to us noundisputed amounts payable in respect of the above were in arrears as at March 31st2022 for a period of more than six months from the date on when they become payable.
(b) According to the information and explanation given to us the dues referred to insub-clause (a) which have not been deposited on March 31 2022 on account of any disputeare as follows:
|Name of the Statute ||Nature of Dues ||Amount (Rs. in lakhs) ||Period to which the amount relates ||Forum where dispute is pending |
|Income Tax Act1961 ||Income Tax ||5.09 ||Various Years from A.Y. 2008-09 to 2019-20. ||Rectification u/s154 before ACIT-I and appeal pending with commissioner for A.Y. 2019-20. |
|Service Tax ||Service Tax ||3.92 ||Year 2017-18. ||CESTAT New Delhi |
|VAT and CST Act ||VAT CST and Entry Tax ||159.23 ||Various Years from 201213 and 2017-18 ||Demand on Portal and Appeal pending with Rajasthan High court |
|GST Act ||RCM ||3.08 ||Year 2019-20 ||Appeal to be filed with Commissioner |
|Total || ||171.32 || || |
8. According to the explanations and information given to us by the management and asverified by us there are no transactions which were not recorded in the books of accountand have been surrendered or disclosed as income during the year in the tax assessmentsunder the Income Tax Act 1961
9. (a) In our opinion and according to the information
and explanations given to us the Company has not defaulted in the repayment of loansor other borrowings or in the payment of interest thereon to any lender.
(b) According to the information provided to us by the management the company has notbeen declared as a willful defaulter by any bank or financial institution or any otherlender.
(c) The term loans were applied for the purpose for which the loans were obtained.
(d) The short-term loans were applied for the purpose for which the loans wereobtained.
(e) The Company has no subsidiaries associates or joint ventures. Accordinglyreporting under clause 3(ix)(e) of the Order is not applicable.
(f) The company has no subsidiaries associates or joint ventures. Accordinglyreporting under clause 3(ix)(f) of the Order is not applicable.
10. (a) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year.
(b) The company has not made any preferential allotment or private placement of sharesor convertible debentures (fully partially or optionally convertible) during the year.
11. (a) During the conduct of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanation given to us we have neither come across anyinstances of fraud by the company noticedor reported during the year nor have we beeninformed of any such cases by the management.
(b) No report under sub-section (12) of section 143 of the Companies Act has been filedby us in Form ADT 4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules2014 with the Central Government;
(c) As per our information and according to the explanations given to us no whistleblower complaints were received by the company during the year.
12. As the company is not Nidhi Company hence reporting under clause 3(xii)(a)(xii)(b) and (xii)(c) of the order is not applicable.
13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Ind AS financial statements as required by theapplicable accounting standards.
14. (a) In our opinion and according to the information and explanations given bymanagement the company has an internal audit system commensurate with the size and natureof its business.
(b) The reports of the Internal Auditors for the period under audit were considered byus.
15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with him as referred to in section 192 ofthe Act.
16. (a) According to the information and explanations given to us by the managementthe Company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.
(b) According to the information and explanations given to us by the management thecompany has not conducted any Non-Banking Financial or Housing Finance activities withouta valid Certificate of Registration (CoR) from the Reserve Bank of India as per theReserve Bank of India Act 1934.
(c) According to the information and explanations given to us by the management thecompany is not a Core Investment Company (CIC) as defined in the regulations made by theReserve Bank of India.
(d) According to the information and explanations given to us by the management theCompany is not a part of any group hence clause (xvi)(d) of paragraph 3 of the said orderis not applicable to the company.
17. The company has not incurred any cash losses in the current financial year and theimmediately preceding financial year.
18. There has been no resignation of the statutory auditors during the year.
19. On the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements in our knowledge of the Board of Directors and management plans weare of the opinion that no material uncertainty exists as on the date of the audit reportthat company is capable of meeting its liabilities existing at the date of balance sheetas and when they fall due within a period of one year from the balance sheet date. Wehowever state that this is not an assurance as to the future viability of the company. Wefurther sate that our reporting is based on the facts up to the date of the audit reportand we neither give any guarantee nor any assurance that all the liabilities falling duewithin a period of one year from the balance sheet date will get discharged by thecompany as and when they fall due.
20. According to the information and explanations given to us by the management and onthe basis of our examination of the records of the company the company has spent theentire amount as per the requirement of section 135 of the Companies Act 2013 andtherefore sub-clauses (a) and (b) of clause (xx) of para 3 are not applicable.
21. According to the information and explanations given to us by the management theCompany is not a part of any group. Since this report is being issued in respect offinancial statements of the company hence clause (xxi) of paragraph 3 of the said Orderis not applicable.
For Madhukar Garg & Company
Chartered Accountants lCAl Firrn Registration No. 000866C
(Referred to in paragraph 1(A)(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)
Report on the Internal Financial Controls with reference to Financial Statements underClause (i) of Sub-section 3 of Section 143 of the Act
1. We have audited the internal financial controls with reference to FinancialStatements of Dynamic Cables Limited ("the Company") as at 31st March2022 in conjunction with our audit of the Standalone financial statements of the Companyfor the year ended on that date.
Management's Responsibility for Internal Financial Controls
2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting("the Guidance Note") issued by the Institute of Chartered Accountants of India('ICAI'). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.
3. Our responsibility is to express an opinion on the Company's internal financialcontrols Over Financial Reporting based on our audit. We conducted our audit in accordancewith the Guidance Note and the Standards on Auditing deemed to be prescribed under section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth applicable to an audit of internal financial controls and both issued by the ICAI.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls Over
Financial Reporting was established and maintained and if such controls operatedeffectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system Over Financial Reporting and their operatingeffectiveness. Our audit of internal financial controls Over Financial Reporting includedobtaining an understanding of internal financial controls Over Financial Reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Standalone Financial statements whether due to fraud orerror.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemwith reference to Standalone Financial Statements.
Meaning of Internal Financial Controls Over Financial Reporting
6. A company's internal financial controls Over Financial Reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of Financial Statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial controls OverFinancial Reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of FinancialStatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the Financial Statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
7. Because of the inherent limitations of internal financial controls Over FinancialReporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls Over FinancialReporting to future periods are subject to the risk that the internal financial controlsOver Financial Reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
8. In our opinion the Company has in all material respects an adequate internalfinancial controls system Over Financial Reporting and such internal financial controlsOver Financial Reporting were operating effectively as at 31 March 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.
For Madhukar Garg & Company
Chartered Accountants lCAl Firrn Registration No. 000866C