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Dynamic Cables Ltd.

BSE: 540795 Sector: Engineering
NSE: N.A. ISIN Code: INE600Y01019
BSE 00:00 | 27 Sep 71.50 0.75
(1.06%)
OPEN

72.80

HIGH

74.25

LOW

68.25

NSE 05:30 | 01 Jan Dynamic Cables Ltd
OPEN 72.80
PREVIOUS CLOSE 70.75
VOLUME 62853
52-Week high 82.90
52-Week low 20.25
P/E 16.03
Mkt Cap.(Rs cr) 157
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 72.80
CLOSE 70.75
VOLUME 62853
52-Week high 82.90
52-Week low 20.25
P/E 16.03
Mkt Cap.(Rs cr) 157
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Dynamic Cables Ltd. (DYNAMICCABLES) - Auditors Report

Company auditors report

To the Members of

Dynamic Cables Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Dynamic Cables Limited ("theCompany") which comprise the Balance Sheet as at 31 March 2021 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 2021 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 informing our opinion thereon and we do not provide a separate opinion on these matters.

Key Audit Matters How the matter was addressed in our Audit:
Transition to Ind AS The Company has adopted Ind AS prescribed under section 133 of the Act read with the companies Our audit procedures included but were not limited to the following:
(Indian Accounting Standards) Assessed the Company's process to identify the impact of adoption and transition to Ind AS;
Rules 2015 from April 01 2020 and the effective date of such transition is April 01 2019. For periods up to and including the year ended March 312020 the Company had prepared and presented its Financial Statements in accordance with Accounting Standards prescribed under the section 133 of the Act (Indian GAAP). Evaluated the design of internal controls and tested the operating effectiveness of key internal controls around the process of preparation of Ind AS financial statements;
Accordingly for transition to Ind AS the company has prepared its financial statements for the year ended March 31 2021 together with the comparative financial information for the previous year ended March 312020 and the opening Balance Sheet as at April 012019 under Ind AS. Reviewed the mandatory and optional exemptions and exceptions allowed by Ind AS and availed by the company in applying the first-time adoption principles of Ind AS 101;
Ind AS are new and complex Accounting Standards which require considerable judgement and interpretation in their implementation.
Further Ind AS 101 ("First-time Adoption of Indian Accounting Standards") allows two categories of exceptions to the first-time adopters which mainly includes prohibition to retrospective application of certain requirements of Ind AS and exemption from some requirements of Ind AS. Obtained an understanding of the governance over the determination of key judgements; Evaluated and tested the key assumptions and judgements adopted by management in line with principles under Ind AS;
Assessed the disclosures made as required by the relevant Ind AS;
and Determined the appropriateness of the methodologies and models used along with the responsibility of the outputs.

Other Information

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the Financial Statements and our auditors' reportthereon. The other information is expected to be made available to us after the date ofthis 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.

Management's and Board of Directors' Responsibility for the Financial Statements

The Company's management and Board of Directors are responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these Financial Statementsthat give a true and fair view of the state of affairs profit/loss and othercomprehensive income changes in equity and cash flow of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standards("Ind AS") specified under Section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring accuracy and completeness of the accounting records relevant tothe preparation and presentation of the Financial Statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

In preparing the Financial Statements The Management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic 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 in the Financial Statement made by theManagement and Board of Directors.

• Conclude on the appropriateness of Management and Board of Directors use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor's report tothe related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditors' report. Forever future events or conditions maycause the Company to cease to continue as a 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 2016 ("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 2021 taken on record by the Board of Directors none of the directors aredisqualified as on 31 March 2021 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".

(B) 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 2021 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 long-term contracts includingderivative contracts- Refer Note 46 to the Financial Statement:

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company; and

iv. The disclosures in the financial statements regarding the holdings as well asdealings in specified bank notes during the period from 8 November 2016 to 30 December2016 have not been made in the financial statements since they do not pertain to thefinancial year ended 31 March 2021.

(C) With respect to the matter to be included in the Auditors' Report under section197(16):

In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.

For Madhukar Garg & Company
Chartered Accountants
ICAI Firm Registration No. 000866C
Place: JAIPUR Sunil Shukla Partner M.No.071179
Date: 30.06.2020 UDIN:-20071179AAAAAP6431

Annexure-A to the Independent Auditor's Report

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 2021 wereport the following:

1. In respect of Company's Fixed Assets:

a. According to the information and explanation given to us the company is maintainingproper records showing full particulars including quantities details and situation offixed assets;

b. The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

c. According to the information and explanation given to us the title deeds/leasedeeds of immovable properties included in Property Plant and Equipment are held in thename of the Company except Land purchased by the company through Sale deed executed on10-03-2016 situated at H-l-601 B Rd. no. 6 VKI Area Jaipur value Rs. 4822450.00 forwhich lease deed has not been prepared till now.

2. As explained to us the inventories were physically verified during the year bymanagement at reasonable intervals and no material discrepancies were noticed on physicalverification.

3. In respect of the Loans secured or unsecured granted by the company to companiesfirms or other parties in the register maintained under section 189 of the Companies Act.

(i) According to the information & explanations given to us the company has notgranted any loan to the parties listed in the register maintained under section 189 of theAct.

4. In our opinion and according to information and explanations given to us the companyhas not granted any loans or provided any guarantee or security or made investment to theparties covered under section 185 and 186 of the Companies Act 2013.

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 2013 related to the manufacturing activities and are of theopinion that prima facie the specified accounts and records have been made andmaintained. 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 ourexamination of books of accounts records the Company has been generally regular indepositing undisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax value added Tax duty of customs duty of excise andany other statutory dues with the appropriate authority. According to the information andexplanation given to us no undisputed amounts payable in respect of the above were inarrears as at March 31st 2021 for a period of more than six months from the date on whenthey become payable.

(b) According to the information and explanation given to us the dues of Income-TaxSales-Tax Service Tax Duty of Custom Duty of Excise Value Added Tax and Cess whichhave not been deposited on March 31 2021 on account of any dispute are as follows:

Name of the Statute Nature of Dues Amount (in lakh) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 5.54 Various Years from 2008-09 to 2019-20 Rectification u/sl54 before ACIT-I and appeal pending with commissioner for A.Y. 2019-20.
Service Tax Service Tax 16.98 Years 2017-18 CESTAT New Delhi
VAT and CST Act VAT CST and Entry Tax 182.28 Various Years from 2016-17 to 2017-18 Rajasthan Tax Board
Total 204.80

8. In our opinion and according to the information and explanations given to us TheCompany has not defaulted in the repayment of loans or borrowings to Banks financialinstitutions. The company does not have any loans or borrowings from government and hasnot issued any debentures.

9. In our opinion and according to the information and explanations given to us theCompany did not raise any money by way of initial public offer or further public offer(including debt instruments) during the year. And term loans raised during the year havebeen utilized for the object of the issue.

10. 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 material fraud by the company or on the company by its officers or employeesnotice or reported during the year nor have we been informed of any such cases by themanagement.

11. In our opinion and according to the information and explanations given to us thecompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

12. As the company is not Nidhi Company hence reporting under clause 3(xii) of theorder is not applicable

13. In our opinion and according to the information and explanation given to us thecompany is in compliance with section 177 and 188 of the Act where applicable for alltransaction with the related parties and the details of related parties transactions havebeen disclosed in the financial statements as required by the applicable accountingstandards.

14. During the year the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause 3(xiv) of the Order is not applicable to the Company.

15. In our opinion and according to the information and explanation given to us duringthe year the company has not entered into any non-cash transactions with its directors orpersons connected to its directors and hence the provisions for compliance under section192 of the Act are not applicable.

16. The company is not required to be registered under section 45-IA of the Reservebank of India Act 1934. Accordingly the provision of clause 3 (xvi) of the order or notapplicable to the Company.

For Madhukar Garg & Company
Chartered Accountants
ICAI Firm Registration No. 000866C
Place: JAIPUR Sunil Shukla Partner M.No.071179
Date: 30.06.2020 UDIN:-20071179AAAAAP6431

ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT

(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 under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of DynamicCables Limited ("the Company") as at 31st March 2021 in conjunctionwith our audit of the financial statements of the Company for the year ended and as onthat date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India (1ICAI').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding 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 Companies Act 2013.

Auditors' Responsibility

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 Standards on Auditing prescribed under section 143(10) of the Companies Act2013 and the Guidance Note to the extent applicable to an audit of internal financialcontrols over financial reporting. Those Standards and the Guidance Note require that wecomply with the ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe 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 financial statements whether due to fraud or error.

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 systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

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 controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

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 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Madhukar Garg & Company
Chartered Accountants
ICAI Firm Registration No. 000866C
Place: JAIPUR Sunil Shukla Partner M.No.071179
Date: 30.06.2020 UDIN:-20071179AAAAAP6431

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