The Members of
Dynamic Portfolio Management & Services Limited
Report on the Audit of the Financial Statements
We have audited the accompanying financial statements of Dynamic PortfolioManagement & Services Limited ("the Company") which comprise theBalance Sheet as at 31st March 2020 the Statement of Profit & Loss (including othercomprehensive income) the statement of changes in equity Cash Flow Statement for theyear then ended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information.
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 in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2020 of its profit and other comprehensive income statement ofchanges 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 Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of themost significance in our audit of the Financial Statements of the current year. Thesematters were addressed in the context of our audit of the financial statement as a wholeand in forming our opinion thereon and we do not provide a separate opinion on thesematters.
Transition date accounting policies due to adoption of Ind-AS:
|Key audit matter description ||How the matter was address in our audit |
|Effective from 1 April 2019 the Company adopted the Indian Accounting Standards ("Ind AS") notified by the Ministry of Corporate Affairs with the Transition date of 1 April 2018. ||We performed the following key audit procedures: |
|The following are the major impact areas for the Company upon transition: || Assessed the design implementation and operating effectiveness of key internal controls over management's evaluation of transition date choices and exemptions availed in line with the principles under Ind-AS 101. |
|Classification and measurement of financial assets and financial liabilities || Evaluated management's transition date choice and Exemptions for compliance under Ind-AS 101. |
|The migration to the new accounting Frame work (Ind AS) is a complicated Process involving multiple decision points upon transition. Ind AS 101 First Time Adoption prescribes choices and exemptions for first time application of Ind AS principles at the transition date. || Assessed the methodology Implemented by Management to give impact on the transition. |
| || Assessed the accuracy of the computations. |
|We identified transition date accounting as a key audit matter because of significant Degree of management judgment and Application on the areas noted above. || Assessed areas of significant estimates and management judgment in line with Principles under Ind-AS. |
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the Board's Report including Annexures to the Board's Report butdoes not include the financial statements and our auditor's report thereon. Our opinion onthe financial statements does not cover the other information and we do not express anyform of assurance conclusion thereon. In connection with our audit of the financialstatements our responsibility is to read the other information and in doing so considerwhether the other information is materially inconsistent with the financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information. We are required to report that fact. We have nothing to report inthis 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 Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and other comprehensive Income statement of changes in equity andcash flows of the Company in accordance with the accounting principles generally acceptedin India including the Indian Accounting Standards (IND As) specified under section 133of the Act.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand 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 financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.
The Board of Directors are 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 Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management. Conclude on theappropriateness of management's use of the going concern basis of accounting and based onthe audit evidence obtained whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company's ability to continue as a goingconcern. If we conclude that a material uncertainty exists we are required to drawattention in our auditor's report to the related disclosures in the financial statementsor if such disclosures are inadequate to modify our opinion. Our conclusions are basedon the audit evidence obtained up to the date of our auditor's report. However futureevents or conditions may cause 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 ourauditor's 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
i. 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 ofthe Act we give in the "Annexure - A" a statement on the matters specified inparagraph 3 and 4 of the Order to the extent applicable.
ii. As required by the Section 143 (3) of the Act we report to the extent applicablethat:
a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose 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 & Loss (including other comprehensiveincome) Statement of Changes in equity & Cash Flow Statement dealt with by thisreport are in agreement with the books of accounts;
d) In our opinion the aforesaid financial statements comply with the Indian AccountingStandards (IND As) specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on March 312020 and taken on record by the Board of Directors we report that none of the director isdisqualified as on March 31 2020 from being appointed as a director in terms of Section164 (2) the Act;
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure - B";
g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rule 2014 in our opinionand to the best of our information and according to the explanations to us:
i. the Company does not have any pending litigations which would impact its financialpositions;
ii. the Company did not have any long term contacts including derivatives contracts forwhich there were any material foreseeable losses;
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
h) With respect to the other matters to be included in the Auditor's Report undersection 197(16) of the Act:
In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.
For M A N V & Associates
Firm Registration No. 007351N
Vijay Kumar Jain
Place: New Delhi
"Annexure- A" referred to in our Independent Auditors' Report to the Membersof Dynamic Portfolio Management & Services Limited on the financial statement for theyear ended on 31st March 2020 we report that:
i. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.
b) The Fixed Assets have been physically verified by the management at reasonableintervals which in our opinion is reasonable having regard to the size of the Company andnature of its assets. As informed to us no material discrepancies have been noticed onsuch verification.
c) According to information and explanation given to us and on the basis of ourexamination of books of account the Company does not have immovable property during theyear and as on 31.03.2020. Therefore the provisions of paragraph 3(i)(c) of the Orderregarding the title deeds of the immovable properties is not applicable.
ii. According to information and explanation given to us and on the basis of ourexamination of books of account the quoted securities held as stock in trade have beenconfirmed with the statement of holding of depository at the end of the year. The unquotedsecurities held as stock in trade have been confirmed with share certificates at the endof the year. In our opinion the frequency of verification of securities is reasonable.
According to information and explanation given to us and on the basis of ourexamination of books of account the procedure of verification of securities held as stockin trade followed by the management were reasonable and adequate in relation to the sizeof the Company and the nature of its business.
According to information and explanation given to us and on the basis of ourexamination of books of account the Company has maintained proper records of securitiesheld as stock in trade and as informed to us no discrepancies have been noticed onverification.
iii. According to information and explanation given to us and on the basis of ourexamination of books of account the Company being a NBFC Company has not granted anyloans secured or unsecured to Companies Firms Limited Liability Partnerships or otherparties covered in the register maintained under section 189 of the Companies Act 2013except in the normal course of business. Therefore the provisions of the paragraph 3(iii) of the Order is not applicable to the Company.
iv. According to information and explanation given to us and on the basis of ourexamination of books of account the Company being a NBFC Company has not granted anyloans made any investments given any guarantees and security where provisions of section185 and 186 of the Act except in the normal course of operations are required to becomplied with. Therefore the provisions of the paragraph 3 (iv) of the Order is notapplicable to the Company.
v. According to the information and explanations given to us and on the basis of ourexamination of books of accounts the Company has not accepted any deposits from thepublic covered under section 73 to 76 or other relevant provisions of the Companies Act2013 and rules framed thereunder. Therefore the provisions of the paragraph 3 (v) of theOrder is not applicable to the Company.
vi. As per information & explanation given by the management maintenance of costrecords has not been prescribed by the Central Government under sub-section (1) of section148 of the Companies Act 2013.
vii. According to information and explanations given to us in respect of statutorydues:
a) According to the records of the company undisputed statutory dues includingprovident fund employees' state insurance income tax sales tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues to the extentapplicable have generally been regularly deposited with appropriate authorities.According to the information and explanations given to us there were no undisputedstatutory dues were outstanding as at 31st March 2020 for a period of morethan six months from the date they became payable.
b) According to information and explanation given to us and on the basis of ourexamination of books of account there are no disputed dues of income tax sales taxservice tax duty of customs duty of excise and value added tax.
viii. According to information and explanation given to us and on the basis of ourexamination of books of account the Company has not defaulted in the repayment of loansor borrowing to financial institution bank or government. The Company has not issued anydebentures.
ix. According to information and explanation given to us and on the basis of ourexamination of books of account the Company has not raised money by way of initial publicoffer or further public offer (including debt instruments) and term loans during the year.Therefore the provisions of the paragraph 3 (ix) of the Order is not applicable to theCompany.
x. In our opinion and according to the information and explanations given to us nomaterial fraud on or by the Company has been noticed or reported during the year.
xi. According to information and explanation given to us and on the basis of ourexamination of books of account the Company has paid/provided for managerial remunerationin accordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.
xii. According to the information and explanations given to us and in our opinion theCompany is not a Nidhi Company. Therefore the provisions of the paragraph 3 (xii) of theOrder is not applicable to the Company.
xiii. According the information and explanations given to us and on the basis of ourexamination of the records of the Company all transactions with the related parties arein compliance with section 177 and 188 of the Act where applicable and the details havebeen disclosed in the Financial Statements as required by the applicable accountingstandards.
xiv. According the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Therefore the provisions of the paragraph 3 (xiv) of the Order is notapplicable to the Company.
xv. According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with them.Accordingly the provisions of the paragraph 3 (xv) of the Order is not applicable to theCompany.
xvi. The Company holds a Certificate of Registration No. B-05.02311 issued by ReserveBank of India to carry the business of non-banking financial services (Non-DepositAccepting or Holding) under section 45-IA of the Reserve Bank of India Act 1934.
| ||For M A N V & Associates |
| ||Chartered Accountants |
| ||Firm Registration No. 007351N |
|Date: 27.06.2020 ||Vijay Kumar Jain |
|Place: New Delhi ||Partner |
|UDIN: 20087502AAAABL7947 ||M. No.087502 |
Annexure -B referred to the Independent Auditor's Report to the Members of DynamicPortfolio Management & Services Limited being report on the Internal FinancialControls 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 of DynamicPortfolio Management & Services Limited ("the Company") as at March 31 2020in conjunction with our audit of the financial statements of the Company for the yearended on that 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 internalcontrols stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting bases on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing in accordance with section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls systems 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations 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
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.
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 March 31 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||For M A N V & Associates |
| ||Chartered Accountants |
| ||Firm Registration No. 007351N |
| ||Vijay Kumar Jain |
| ||Partner |
| ||M. No.087502 |
|Date: 27.06.2020 || |
|Place: New Delhi || |