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Dynamic Industries Ltd.

BSE: 524818 Sector: Industrials
NSE: N.A. ISIN Code: INE457C01010
BSE 00:00 | 18 Jan 97.55 0.95
(0.98%)
OPEN

96.85

HIGH

98.00

LOW

96.65

NSE 05:30 | 01 Jan Dynamic Industries Ltd
OPEN 96.85
PREVIOUS CLOSE 96.60
VOLUME 1312
52-Week high 142.00
52-Week low 70.25
P/E 6.66
Mkt Cap.(Rs cr) 30
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 96.85
CLOSE 96.60
VOLUME 1312
52-Week high 142.00
52-Week low 70.25
P/E 6.66
Mkt Cap.(Rs cr) 30
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Dynamic Industries Ltd. (DYNAMICINDS) - Auditors Report

Company auditors report

To

The Members

Dynamic Industries Limited Ahmedabad.

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statementsof Dynamic Industries Limited ("the

st

Company") which comprise the Balance Sheet as at 31 March 2018the Statement of Profit and Loss (including other comprehensive income) the Statement ofCash Flows and the Statement of Change in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas `Ind AS financial statements').

Management's Responsibility for the Standalone Ind AS FinancialStatements

The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation and presentation of these standalone Ind AS financial statements that give atrue and fair view of the financial position financial performance including othercomprehensive income cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) prescribed under Section 133 of the Act read with relevant Rulesissued thereunder.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind ASfinancial statements based on our audit.

We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and disclosures in the standalone Ind AS financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the standalone Ind AS financial statements whether due to fraudor error. In making those risk assessments the auditor considers internal financialcontrol relevant to the Company's preparation of the standalone Ind AS financialstatements that give true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made byCompany's Directors as well as evaluating the overall presentation of the standalone IndAS financial statements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on standalone Ind AS financialstatements

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India including Ind AS ofthe financial position of the company as at 31st March 2018 and its financial performanceincluding other comprehensive income its cash flows and the changes in equity for theyear ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of sub section(11) of section 143 of the Act we give in the "Annexure-A" a statement of thematters 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss and Cash FlowStatement dealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014.

(e) On the basis of written representations received from the directorsas on 31 March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164(2) of the Act.

(f) with respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure-B"; and

(g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 and toour best of our information and according to the explanations given to us :

(i) The Company has disclosed pending litigations which would impactits financial position – Refer Note 35 to the financial statements;

(ii) The Company did not have any long-term contracts includingderivatives contracts for which there were any material foreseeable losses.

(iii) There were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company.

For ASHOK K. BHATT & CO.

[Firm Registration No. 100657W]

Chartered Accountants

Sd/-

ASHOK K. BHATT

Proprietor

Membership No. 036439

Place : Ahmedabad

th

Date : 30 May 2018

ANNEXURE - A

INDEPENDENT AUDITOR'S REPORT

To the Independent Auditors' Report of even date on Standalone Ind AsFinancial Statements of DYNAMIC INDUSTRIES LIMITED

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of its fixed assets.

(b) The fixed assets of the Company are physically verified by themanagement according to phased program designed to cover all the items once in period ofthree years which in our opinion is reasonable having regard to the size of the Companyand nature of its assets. Pursuant to program a physical verification of Buildingsvehicles and Computers were carried out during the year by the management and no materialdiscrepancies between the book records and physical inventory have been noticed.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

(ii) According to information and explanation given to us theManagement of the Company has conducted physical verification of inventory at the year endand no material discrepancies were noticed on such physical verification during the year.

(iii) The Company has not granted any secured / unsecured loan to anyparties covered in the register maintained under section 189 of the Companies Act 2013.Accordingly the provisions of Clause 3(iii) of the Order are not applicable to theCompany.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct with respect to the loans investments guarantees and securities.

(v) According to information and explanations given to us the Companyhas not accepted any deposits as defined in The Companies (Acceptance of Deposits) Rules2014. Accordingly the provisions of Clause 3(v) of the Order are not applicable to theCompany.

(vi) We have broadly reviewed the cost records maintained by theCompany pursuant to rules made by the Central Government. We are of the opinion that primafacie the prescribed accounts and records have been maintained and being made. We havenot however made a detailed examination of these records with a view to determinewhether they are accurate or complete.

(vii) (a) According to the information given to us the Company isgenerally regular in depositing with appropriate authorities undisputed statutory dues andCompany had no arrears of such outstanding statutory dues as at

st

31 March 2018 for a period more than six months from the date theybecame payable.

(b) According to the information and explanations given to us thecompany has no disputed outstanding

st

statutory dues as at 31 March 2018 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

8.73

2012-2013

CIT(A) Ahmedabad
Customs Act 1962 Customs Duty

171.14

2006-2007 & 2007-2008

CESTAT Ahmedabad
Customs Act 1962 Customs Duty

5.51

2007-2008

CESTAT Mumbai
Finance Act 1994 Service Tax

79.24

2012-2013

CESTAT Ahmedabad

(viii) According to the information and explanations given to us theCompany has not defaulted in the repayment of loans and borrowings to financialinstitutions banks government or dues to debenture holders during the year.

(ix) The Company has not raised moneys by way of initial public offeror further public offer (including debt instruments) during the year. However money raisedby way of term loans have been applied for the purposes for which they have been obtained.

(x) According to the information and explanations given to us no fraudby company or any fraud on the company by its officers and employees have been noticed orreported during the year.

(xi) According to the information and explanations give to us theCompany has paid/provided for managerial remuneration in accordance with the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.

(xiii) According to the information and explanations given by themanagement transactions with the related parties are in compliance with section 177 and188 of act where applicable and the details have been disclosed in the notes to thefinancial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations give to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

(xv) According to the information and explanations given to us theCompany has not entered into non-cash transactions with directors or persons connectedwith him. Accordingly paragraph 3(xv) of the Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

For ASHOK K. BHATT & CO.

[Firm Registration No. 100657W]

Chartered Accountants

Sd/-

ASHOK K. BHATT

Proprietor

Membership No. 036439

Place : Ahmedabad

th

Date : 30 May 2018

ANNEXURE - B

Annexure - B to the Independent Auditors' Report of even date on theStandalone Ind As Financial Statements of Dynamic Industries Limited

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting Dynamic Industries Limited ("the Company") as of 31 March 2018 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation and maintenanceof adequate 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 Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone Ind AS financial statements whether dueto fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial

st

reporting and such internal financial controls over financial reportingwere operating effectively as at 31 March 2018 based on the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For ASHOK K. BHATT & CO.

[Firm Registration No. 100657W]

Chartered Accountants

Sd/-

ASHOK K. BHATT

Proprietor

Membership No. 036439

Place : Ahmedabad

Date : 30 May 2018