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Dynemic Products Ltd.

BSE: 532707 Sector: Industrials
NSE: DYNPRO ISIN Code: INE256H01015
BSE 00:00 | 23 Jan 120.95 2.55
(2.15%)
OPEN

125.20

HIGH

125.20

LOW

119.25

NSE 00:00 | 23 Jan 120.35 1.70
(1.43%)
OPEN

119.90

HIGH

121.90

LOW

118.60

OPEN 125.20
PREVIOUS CLOSE 118.40
VOLUME 2128
52-Week high 226.95
52-Week low 113.00
P/E 7.76
Mkt Cap.(Rs cr) 137
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 125.20
CLOSE 118.40
VOLUME 2128
52-Week high 226.95
52-Week low 113.00
P/E 7.76
Mkt Cap.(Rs cr) 137
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Dynemic Products Ltd. (DYNPRO) - Auditors Report

Company auditors report

To

The Members of

Dynemic Products Limited

Report on the Standalone Indian Accounting Standards (Ind As) Financial Statements

1 We have audited the accompanying standalone Ind AS financial statements of DYNEMICPRODUCTS LIMITED ("The Company ") which comprise the Balance Sheet as atMarch 31 2018 the Statement of Profit and Loss (including Other Comprehensive Income)Cash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

2 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 standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance (including other comprehensive income) cashflows and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India incl uding the Indian Accounting Standards specified in theCompanies (Indian Accounting Standards) Rules 2015 (as amended) under Section 133 of theAct. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of theaccounting records rel evant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditors' Responsibility

3 Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

4 We have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules made thereunder.

5 We conducted our audit of standalone Ind AS Financial Statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act and otherauthoritative pronouncements issed by the Institute of Chartered Accountants of India.Those Standards and pronouncements require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the standalone IndAS financial statements are free from material misstatements.

6 An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgement i ncluding the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place an adequate internal financial controls system over financial reporting and theoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Board of Directors as well as evaluating the overallpresentation of the standalone Ind AS finacial statements.

7 We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

8 In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act 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 2018; and of the Statement of Profit and Loss of the profit(including other comprehensive income ) for the year ended on that date; and of the CashFlow Statement of the cash flows and changes in equity for the year ended on that date.

Other Matter

9 The financial information of the Company for the year ended March 31 2017 and thetransition date opening balance sheet as at April 1 2016 included in these standalone IndAS financial statements are based on the previously issued statutory financial statementsfor the years ended March 31 2017 and March 31 2016 prepared in accordance with theCompanies (Accounting Standards) Rules 2006 (as amended) which were not audited by us onwhich the previous auditor expressed an unmodified opinion dated May 26 2017 and May 282016 respectively. The adjustments to those standalone financial statements for thedifferences in accounting principles adopted by the Company on transition to the Ind AShave been audited by us.

Report on Other Legal and Regulatory Requirements

10 As required by the Companies (Auditor's Report) order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act and onthe basis of such checks of the books and records of the Company as we consideredappropriate and according to the information and explanations given to us we give in the AnnexureA a statement on the matters specified in paragraphs 3 and 4 of the Order to theextent applicable.

11 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 Cash Flow Statement and the Statement of Changes in Equity dealt with bythis Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st 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 controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.

(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) 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 on its financialposition in its standalone Ind As financial statements – Refer Note 34 to thestandalone Ind AS financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For ASIM RAVINDRA & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN. 118775W
[ RAVINDRA MEHTA ]
Place : Ahmedabad PARTNER
Date : 26/05/2018 M. No. 043051

ANNEXURE A TO

TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in Paragraph 1 under the heading of "Report on other legal andregulatory requirements" of our report of even date)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets ;

(b) Fixed Assets have been physically verified by the management periodically in aphased manner and no material discrepancies have been noticed on physical verification asconfirmed by the management ; (c) The title deeds of the immovable properties are held inthe name of the company.

(ii) As explained to us inventories have been physically verified by the managementat reasonable intervals except for minor items and the inventories lying with outsideparties which have been confirmed by them. As explained to us the material discrepanciesif any noticed have been properly dealt with in the books of accounts by the management.

(iii) The company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under section 189 of the CompaniesAct.

(iv) In our opinion and according to the information and explanation given to us thecompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013in respect of the loans investments security and guarantees.

(v) In our opinion and according to the information and explanation given to us thecompany has complied with the provisions of Section 73 to 76 or any relevant provisions ofthe Act and its Rules and also the directives of Reserve Bank of India with regard toacceptance of deposits.

(vi) According to the information and explanation given to us the maintenance of costrecords has been specified by the Central Government under sub section (1) of section 148of the Companies Act 2013 and we have broadly reviewed the accounts and recordsmaintained by the company as prescribed by the Government for the maintenance of the costrecords under section 148 (1) of the Companies Act and we are of the opinion that primafacie the prescribed accounts and records have been maintained. We have not however madedetailed examination of the records with a view to determine whether they are accurate andcomplete. The company has obtained the Cost Audit Report from the Cost Accountants.

(vii) (a) According to the information and explanation given to us and on the basis ofour examination of books of accounts the Company is regular in depositing undisputedstatutory dues including Provident Fund Employees State Insuarance Sales Tax IncomeTaxCustom Duty Excise Duty Wealth tax Service tax and other statutory dues with theappropriate authorities ;

(b) According to the information and explanation given to us the dues of Excise Dutyand Income tax which have not been deposited on account of any dispute and the forumwhere the dispute is pending are as under :-

Sr. no Name of the Statute Nature of Dues Amount Rs. Period to which matter relates Forum where dispute is pending
1 Central Excise Act 1944 Service Tax & Excise Duty 2.15 2012-13 Appeal pending with Commissioner (Appeals) Surat-II

(viii) According to the information and explanation given to us the company has notdefaulted in repayment of dues to financial institutions and banks.

(ix) Based on the information and explanation given to us by the management term loanswere applied for the purpose for which the loans were taken. No moneys have been raised byway of initial public offer during the year under review.

(x) According to the information and explanation given to us and to the best of ourknowledge and belief no fraud on or by the company has been noticed or reported by thecompany during the year.

(xi) According to the information and explanation given to us and to the best of ourknowledge and belief the managerial remuneration has been paid or provided in accordancewith the requisite mandated by the provisions of Section 197 read with Schedule V to theCompanies Act.

(xii) The company is not Nidhi Company and so the clause is not applicable.

(xiii) According to the information and explanation given to us and to the best of ourknowledge and belief all the transactions with the related parties are in compliance withSection 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial Statements etc. as required by the applicable accountingstandards.

(xiv) According to the information and explanation given to us and to the best of ourknowledge and belief the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview.

(xv) According to the information and explanation given to us and to the best of ourknowledge and belief the company has not entered into any non-cash transactions withdirectors or persons connected with him.

(xvi) According to the information and explanation given to us and to the best of ourknowledge and belief the company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1943.

For ASIM RAVINDRA & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN. 118775W
[ RAVINDRA MEHTA ]
Place : Ahmedabad PARTNER
Date : 26/05/2018 M. No. 043051

ANNEXURE "B"

TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 11(f) under ‘Report on Other Legal and RegulatoryRequirements' 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")

1 We have audited the internal financial controls over financial reporting of DynemicProducts Limited ("the Company") as of 31st March 2018 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat 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 Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under theCompanies Act 2013.

AUDITORS' RESPONSIBILITY

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 on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively 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 judgement including the assessment of the risks ofmaterial misstatement of the standalone Ind AS financial statements whether due to fraudor error.

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 systemover financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

6 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 standalone Ind As 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 timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the standalone Ind AS 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 controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

OPINION

8 In our opinion to the best of our information and according to the explanationsgiven to us the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2018 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 ASIM RAVINDRA & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN. 118775W
[ RAVINDRA MEHTA ]
Place : Ahmedabad PARTNER
Date : 26/05/2018 M. No. 043051