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Notes to Accounts of Dynacons Systems & Solutions Ltd.

Mar 31, 2023

1. The Company has alloted 9,60,000 equity shares & 4,55,000 equity share of '' 10 each at a premium of '' 18 per share on a Preferential basis on September 1, 2022 & September 24,2022 respectively against the warrants converted by the holders.

2. As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents the both legal and beneficial ownership of shares.

3. The company has only one class of equity shares having a par value of '' 10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company in proportion to their shareholdings.

4. During the 5 years immediately preceding the balance sheet date, there were no equity shares allotted as fully paid up pursuant to contract without payment being received in cash, no bonus shares were issued and there was no buy-back of equity shares of the Company.

5. The Company declares and pays dividends in Indian Rupees. The Board of Directors in their meeting held on August 10, 2022, declared an interim dividend of '' 0.50/- per share on the nominal value of '' 10/-each and paid to all the eligible shareholders as at August 23, 2022. The interim dividend paid is considered as the final dividend for the financial year ended 31st March, 2023.

A preferential issue of 35,20,000 Warrants convertible into equivalent number of equity shares of ''10 each at a price of '' 28/- each (including premium of '' 18/- each) was approved by the board of directors on 03rd September 2020 for issuance to the promoter directors and Managing Director as per the provisions of SEBI (ICDR) Regulations and in accordance with the applicable provisions of the Companies Act, 2013. The preferential issue of Convertible warrants were approved by shareholders by in AGM held on dated 30th September, 2020. In pursuance of the above the company received '' 2,97,15,000/- towards 14,15,000 warrant at Rs 21 each . The above 14,15,000 warrants have been converted to equity shares of '' 10 each at premium of '' 18 each and allotted on preferential basis to the Promoter''s Group of the Company 9,60,000 warrants converted into equity shares in meeting held on September 01,2022 & 4,55,000 warrants converted into equity shares in meeting held on September 24, 2022 & in agreegate 14,15,000 warrant converted into equity shares.

Disclosure of payable to vendors as defined under the “Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no overdue principal amounts/interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made during the year.

a) The Company is engaged in systems Integration which includes the sales of products and services as a complete solution

b) Disaggregate Revenue

The table below presents disaggregated revenues of the Company from contracts with customers by geography. The Company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of its revenues and cash flows are affected by industry, market and other economic factors.

31.2. EMPLOYEE BENEFIT OBLIGATIONS Defined benefit plans - Gratuity:

Gratuity is payable to all the members at the rate of 15 days salary for each year of service. In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit retirement plan (“the Gratuity Plan”) covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet. There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

Defined contribution plans

The Company also has certain defined contribution plans. Contributions are made to provident fund in India for employees at the rate 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligations of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. Employer''s contribution to Provident Fund during the year is 104.30 Lakh (P.y. 95.47 Lakhs)

31.3. Employee Stock Option Plan

The Company had a Dynacons - Employees Stock Option Plan 2020 (ESOP - 2020) which provided for the grant of equity shares of the Company to the eligible employees of the Company. The Board of Directors recommended the establishment of the ESOP 2020 on September 03, 2020 and shareholders approved the recommendations of the Board of Directors in Annual General Meeting held on September 30, 2020. ESOP- 2020 was further amended by the Nomination and Remuneration Committee and Board of Directors of the Company at their meetings held on March 10, 2022 in accordance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 (SEBI SBEB and Sweat Equity Regulations). The maximum aggregate number of shares that may be awarded on the grant of stock options under ESOP 2020 is 15,00,000 equity shares. Under ESOP 2020, the Company had approved grant vide its Nomination and Remuneration committee meeting held on August 10, 2022 under ESOP 2020. As per the plan, option granted under ESOP- 2020 would vest over a period of 1 year to 2 years from the date of grant of such options. The Plan is Equity Settled Plan.

31.8. Financial instruments A. Capital Management :

The Company manages its capital structure with a view to ensure that it will be able to continue as a going concern while maximising the return to stakeholders through the optimization of the debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in notes 14, 16 and 20) and total equity of the Company.

The Company''s management reviews the capital structure of the Company on an annual basis. As part of this review, the management considers the cost of capital and the risks associated with each class of capital.

Fair value measurement hierarchy

The Company records certain financial assets and financial liabilities at fair value on a recurring basis. The Company determines fair values based on the price it would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability.

The Company holds certain fixed income investments and other financial assets, which must be measured using the fair value hierarchy and related valuation methodologies. The guidance specifies a hierarchy of valuation techniques based on whether the inputs to each measurement are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company''s assumptions about current market conditions. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Financial assets and Financial liabilities measured at fair value in the balance sheet are grouped into three Levels of fair value hierarchy. These levels are based on the observability of significant inputs to the measurement, as follows:

> Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities

> Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and

> Level 3: Unobservable inputs for the asset or liability.

The following table shows the Levels within the hierarchy of financial and non-financial assets and liabilities measured at fair value on a recurring basis at 31 March 2023 and 31 March 2022,:

There have been no transfers between levels during the period.

Investment in quoted equity instrument are valued based on the quoted prices available in the market as at the reporting date.

investments in Unquoted Equity Shares i.e Level 3 fair value measurement are valued at carrying cost since amounts are not materials. Investments in unquoted equity shares are made in banks as part of mandatory requirements for obtaining finances from the financing bank.

Loans, cash and bank balances, trade receivables, other financial assets, trade payables, and other financial liabilities have fair values that approximate to their carrying amounts due to their short-term nature.

31.9. Nature and extent of risks arising from financial instruments and respective financial risk management objectives and policies

The Company''s principal financial liabilities comprise of loans and borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its and group companies operations. The Company''s principal financial assets include loans, trade and other receivables, investments, cash and short-term deposits that derive directly from its operations. The Company also enters into derivative transactions to hedge and holds short term investments. The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management is supported by the Group Treasury Team that advises on financial risks and the appropriate financial risk governance framework in accordance with the Company''s policies and risk objectives. All derivative activities for risk management purposes are carried out by Group Treasury Team that have the appropriate skills, experience and supervision. It is the Group''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors review and agree on policies for managing each of these risks, which are summarized below:

a) Credit risk

Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to this risk for various financial instruments, for example trade receivables, investment in mutual funds etc.

Trade and other receivables

Customer credit is managed by each business unit subject to the Company''s established policies, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on 90 to 120 days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The Company does not hold collateral as security. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically.

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends.

The Company continuously monitors defaults of customers and other counterparties, identified either individually or by the Company, and incorporates this information into its credit risk controls. The Company''s policy is to transact only with counterparties who are highly creditworthy which are assessed based on internal due diligence parameters. In respect of trade receivables, the Company is not exposed to any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. Trade receivables consist of a large number of customers in various geographical areas. Based on historical information about customer default rates management consider the credit quality of trade receivables that are not past due or impaired to be good.

Few of the customers failed to pay the dues within the agreed terms. The Company is taking appropriate action to recover the amount. However, based on the Company''s accounting policy ? 13.68 Lakhs had been created as a expected credit loss in the books of accounts of the company for the year ended 31 March 2023.

Other financial assets

The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments in mutual funds. The Company has diversified portfolio of investment with various number of counterparties which have secure credit ratings hence the risk is reduced. Individual risk limits are set for each counterparty based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the Management of the Company.

b) Liquidity risk

Liquidity risk is that the Company might be unable to meet its obligations. The Company manages its liquidity needs by monitoring scheduled debt servicing payments for long-term financial liabilities as well as forecast cash inflows and outflows due in day-to-day business. The data used for analysing these cash flows is consistent with that used in the contractual maturity analysis below. Liquidity needs are monitored in various time bands, on a day-to-day and week-to week basis, as well as on a monthly, quarterly, and yearly basis depending on the business needs. Net cash requirements are compared to available borrowing facilities in order to determine headroom or any shortfalls. This analysis shows that available borrowing facilities are expected to be sufficient over the lookout period.

Liquidity risk is managed by Company through effective fund management. The Company''s principal sources of liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from operations. The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low.

The Company considers expected cash flows from financial assets in assessing and managing liquidity risk, in particular its cash resources and trade receivables. The Company''s existing cash resources and trade receivables significantly exceed the current cash outflow requirements. Cash flows from trade receivables are all contractually due within 90-120 days based on the credit period. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, and short-term borrowings. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding.

c) Market risk

The Company is exposed to market risk through its use of financial instruments and specifically to currency risk, interest rate risk and certain other price risks, which result from both its operating and investing activities.

Foreign currency risk

Most of the Company''s transactions are carried out in Indian rupees. Exposures to currency exchange rates arise from the Company''s overseas sales and purchases, which are primarily denominated in US dollars (USD)

To mitigate the Company''s exposure to foreign currency risk, cash flows are continuously monitored.

The company has not entered in any forward contract for hedging or otherwise in respect of foreign currencies during the year, and there are no such contracts outstanding at the end of the year.

Sensitivity analysis

The following table details the Company''s sensitivity to a 5% increase and decrease in the Rupee against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the net exposure outstanding on receivables or payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% charge in foreign currency rate. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. In cases where the related foreign exchange fluctuation is capitalised to fixed assets or recognised directly in reserves, the impact indicated below may affect the Company''s income statement over the remaining life of the related fixed assets or the remaining tenure of the borrowing respectively.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates are managed by borrowing at fixed interest rates. During the year Company did not have any floating rate borrowings.

The Company''s investments in term deposits (i.e. certificates of deposits) with banks are at fixed interest rate and therefore do not expose the company to significant interest rate risk.

31.11. Lease Commitments Operating Lease

The company has lease contract for office premises and these lease contracts are cancellable-renewable for further period on mutually agreeable terms during the tenure of leases contracts.

Leases have lease terms between 2 and 5 years The Company''s obligations under its leases are secured by the lessor''s title to the leased assets. The Company has lease contracts that includes extension option, however the lease term in respect of such extension option is not defined in the contract.

The Company recognised a lease liability measured at the present value of the remaining lease payments. The right-of-use asset is recognised at its carrying amount as if the standard had been applied since the commencement of the lease, but discounted using the lessee''s incremental borrowing rate as at April 1, 2020. The principal portion of the lease payments have been disclosed under cash flow from financing activities. The lease payments for operating leases as per Ind AS 17 Leases, were earlier reported under cash flow from operating activities. The weighted average incremental borrowing rate of 12.00% has been applied to lease liabilities recognised in the balance sheet at the date of initial application.

31.13. COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES:

Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017

31.14. UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM

a) During the year, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimately Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

b) During the year, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company, shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

31.15. COMPLIANCE WITH APPROVED SCHEME(S) OF ARRANGEMENTS

Company has not prepared any Scheme of Arrangements in terms of sections 230 to 237 of the Companies Act, 2013.

31.17. The management have neither come across any instance of fraud on or by the Company, noticed or reported during the financial year.

31.18. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.


Mar 31, 2018

1. Company Overview

Dynacons Systems & Solutions Ltd. is an IT solutions company with global perspectives and is engaged in providing a comprehensive range of end-to-end solutions to customers. Dynacons has the technical expertise and the service delivery infrastructure to serve Customers at a level ol quality consistent with their expectations. Dynacons helps in the selection of The right technology and application that will yield the greatest return and build a business case for implementation based on lower Total cost of ownership and higher performance.

(I) charge has been created over property, plant and equipments of the company in regard to borrowings (Refer note 16.1)

(II) The Company has adopted carrying value as recognized in the financial statement as at 31st March 2016 measured as per Previous GAAP as its deemed cost. Accordingly, its Net Block as on 31st March. 2016 is its Gross Block under lnd AS. Break up of the said Gross block as at 1st April, 2016 is as under:

(i) the Company has made an irrevocable election of accounting policy as at the adoption date 01 st April 2016 to fair value investment in equity instrument through Other Comprehensive Income (‘OCI’).

(ii) Investments at fair value through OCI reflect investment in quoted equity securities

Inventories of Rs 1,380.78 lakhs (as at 31st March. 2017: Rs 919 32 lakhs and as at 1st April, 2016: Rs. 662.06 lakhs) are hypothecated against working capital facilities from banks (Refer note 20.1)

(I) Trade Receivables of Rs. 3,953.57 lakhs (as at 31st March, 2017: Rs. 2,84 9 46 lakhs and as at 1st April, 2016: Rs. 3,035 29 lakhs )are hypothecated against working capital facilities from barks. (Refer note 20.1)

(II) The carrying amount ol the Trade Receivables are considered as a reasonable approximation of fair value as it is expected to be collected within twelve months, hence no provision is made for Expected credit Losses

Deposits Accounts of Rs. 672.39 lakhs (As at 31st March. 2017 Rs. 556 97 and as at 1st April, 2016 Rs 480.49) pledged as margin morey deposit for facilities from Banks. (Refer Note 20.1)

Fixed Deposit of Rs. 200.14 lakhs (As at 31st March. 2017 Rs. 127.71 lakhs and as at 1st April, 2016 Rs. 130 79 lakhs) pledged as margin money deposit for facilities from Banks (Refer Note 20.1)

2.1 The details of Shareholders holding more than 5% shares :

2.2 The Company has alloted 530,000 equity shares ot Rs 10 each at a premium of Rs. 10 per share on a Preferential basis on Jan 3.2018 against the warrants converted by the holders.

2.3 As per records of the company, including its register of shareholders/members and olher declarations received from shareholders regarding beneficial interest, the above shareholding represents the both legal and beneficial ownership of shares.

2.4 The company has only one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of The company in proportion to their shareholdings.

2 5 During the 5 years immediately preceding the balance sheet date, there were no equity shares allotted as fully paid up pursuant to contract without payment being received in cash, no bonus shares were issued and there was no buy-back of equity shares of the Company.

3.1 Nature of Security & terms of Repayment of secured borrowing :

a) Term loans from banks are Secured by way of first mortgage / charge on The Plant & Machinery of the Company

b) Term loans from Other Parties are Secured by way of first mortgage / charge on the Vehicles of the Company

Working capital loans are secured by hypothecation af present and future stock, book debts, outstanding monies, receivables, claims, bills, maternal in transit., Fixed Deposits. Fixed Assets and personal guarantees of directors.

Note: Micro, Small and medium enterprises under the Micro, Small and Medium Enterprises Development Act. 2006 have been determined based on the information available with the Company and the required disclosure are given below

Note:

a) The Company is engaged in systems Integration which includes the sales of products and services as a complete solution

b) In accordance with IndAS 18 on “Revenue” and Schedule Hi to the Companies Act, 2013, Sales for the pervious year ended 31st March 2017 and for the period 1st April to 30 June 2017 were reported net of Value Added Tax (VAT)/Sales Tax. Consequent to the introduction of Goods and Services Tax (GST) with effect from 1st July 2017, VAT/Sales Tax. Excise Duty etc. have been subsumed into GST and accordingly the same is not recognised as part of Sales as per the requirements of IndAS 18 With the change in structure of indirect taxes, expenses are also being reported net of taxes. Accordingly, Financial Statements for The year ended 31st March 2018 and in particular, absolute expenses, elements ol Working Capital (Inventories. Trade payable, other current assets/current liabilities etc.) and ratios in percentage of sales, are thus not comparable with the figures of the pervious year

3.2. Defined benefit plans-Gratuity:

Gratuity is payable to all the members at the rate of 15 days salary for each year of service. In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit retirement plan (“the Gratuity Plan”)covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard lo The Gratuity Plan are determined by actuarial valuation on the reporting date.

The following table sets out the status of the Gratuity Plan and the amounts recognized in the financial statement:

The sensitivity analysis have been determined based on reasonably passable changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet. There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

3.3. Related Party Disclosures

a. The names of related parties and the nature of relationship are as under

(i) Entities in which Directors are interested S. P. Corporation Trigem Infosolutions Limited

(il) Key Managerial Personnel

a) Executive Director Shirish M Anjaria Parag J Dalai Dharmesh S. Anjaria

b) Non Executive Director Jitesh Jain

Dilip Parmanand Palicha Archana Phadke Viren Champakial Shah

c) Other than Directors

Ravishankar Singh (Company Secretary)

The transactions with the related parties are as under:

Notes :

Service transactions with related parties are made at arm’s length price

3.4. Segment Information

The company operates in the single segment of System Integration and Services.

3.5. Contingent Liabilities

a) Claims against the Company not acknowledged as debts:

b) Guarantees given by the company’s bankers 7 1500.61 lakhs (previous year 7 1016.07 lakhs]

3.6. Financial instruments

A. Capital Management:

The Company manages its capital structure with a view to ensure that il will be able to continue as a going concern while maximising the return to stakeholders through the optimization of the debt and equity balance

The capital structure of The Company consists of net debt (borrowings as detailed in notes 15. 19 and 21) and total equity of the Company

The Company’s management reviews the capital structure of the Company on an annual basis. As part of this review, the management considers 1he cost of capital and the risks associated with each class of capital.

The gearing ratio at the end of the reporting period was as follows:

For the purpose of computing debt to equity ratio, equity includes Equity Share Capital and Other Equity and Debt includes Long term borrowings, short term borrowings and current maturities of long term borrowings.

ii) Fair Value Measurements (Ind AS 113):

Fair value measurement hierarchy

The Company records certain financial assets and financial liabilities at fair value on a recurring basis. The Company determines fair values based on the price it would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability

The Company holds certain fixed income investments and other financial assets, which must be measured using the fair value hierarchy and related valuation methodologies. The guidance specifies a hierarchy of valuation techniques based on whether the inputs to each measurement are observable or unobservable Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions about current market conditions. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize 1he use of unobservable inputs when measuring fair value.

Financial assets and Financial liabilities measured at fair value in The balance sheet are grouped into three Levels of fair value hierarchy. These levels are based on the observability of significant inputs to the measurement, as follows:

- Level 1: Quoted princes (unadjusted) in active markets for identical assets or liabilities.

- Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

- Level 3: Unobservable inputs for the asset or liability

The following table shows the Levels within the hierarchy of financial and non-financial assets and liabilities measured at fair value on a recurring basis at 31st March 2018, 31st March 2017, and 1st April 2016:

a) Quantitative disclosures fair value measurement hierarchy for assets as at the reporting date:

There have been no transfers between levels during the period.

Investment in quoted equity instrument are valued based on the quoted prices available in the market as at the reporting date

Investments in Unquoted Equity Shares i.e Level 3 fair value measurement are valued at carrying cost since amounts are not materials. Investments in unquoted equity shares are made in banks as part of mandatory requirements for obtaining finances from the financing bank.

The following tables shows a reconciliation from the opening balance to the closing balance for level 3 fair values:

Loans, cash and bank balances, trade receivables, other financial assets, trade payables, and other financial liabilities have fair values that approximate to their carrying amounts due to their short-term nature

3.7. Nature and extent of risks arising from financial instruments and respective financial risk management objectives and policies

The Company’s principal financial liabilities comprise of loans and borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its and group companies operations The Company’s principal financial assets include loans, trade and other receivables, investments, cash and short-term deposits that derive directly from its operations. The Company also enters into derivative transactions to hedge and holds shod term investments The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management is supported by the Group Treasury Team that advises on financial risks and the appropriate financial risk governance framework in accordance with the Company’s policies and risk objectives. All derivative activities for risk management purposes are carried out by Group Treasury Team that have the appropriate skills, experience and supervision It is the Group’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors review and agree on policies for managing each of these risks, which are summarized below:

a) Credit risk

Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to this risk for various financial instruments, for example trade receivables, investment in mutual funds etc.

Trade and other receivables

Customer credit is managed by each business unit subject to the Company’s established policies, procedures and control relating to customer credit risk management. Trade receivables are noninterest bearing and are generally on 30 to 180 days credit term Credit limits are established for all customers based on internal rating cretin. Outstanding customer receivables are regularly monitored.

An impairment analysis is performed al each reporting date on an Individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The Company does not hold collateral as security. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically

The following table provides information about the exposure lo credit risk and Expected Credit Loss Allowance for trade and other receivables:

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends.

The Company continuously monitors defaults of customers and other counterparties, identified either individually or by the Company, and incorporates this information into its credit risk controls. The Company’s policy is to transact only with counterparties who are highly creditworthy which are assessed based on internal due diligence parameters In respect of trade receivables, the Company is not exposed to any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. Trade receivables consist of a large number of customers in various geographical areas Based on historical information about customer default rates management consider the credit quality of trade receivables that are not past due or impaired to be good.

Other financial assets

The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments in Debentures, Preference shares, mutual funds, derivative contracts and loan to subsidiary companies. The Company has diversified portfolio of investment with various number of counter parties which have secure credit ratings hence the risk is reduced. Individual risk limits are set for each counter party based on financial position credit rating and past experience Credit limits and concentration of exposures are actively monitored by the Management of the Company.

b) Liquidity risk

Liquidity risk is that the Company might be unable to meet its obligations. The Company manages its liquidity needs by monitoring scheduled debt servicing payments for long-term financial liabilities as well as forecast cash inflows and outflows due in day-to-day business. The data used for analysing these cash flows is consistent with that used in the contractual maturity analysis below. Liquidity needs are monitored in various time bands, on a day-to-day and week-to week basis, as well as on a monthly, quarterly, and yearly basis depending on the business needs Net cash requirements are compared to available borrowing facilities in order to determine headroom or any shortfalls. This analysis shows that available borrowing facilities are expected to be sufficient over the lookout period.

Liquidity risk is managed by Company through effective fund management. The Company’s principal sources of liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from operations The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient to meet requirements. Accordingly, liquidity nsk is perceived to be low.

The Company considers expected cash flows from financial assets in assessing and managing liquidity risk, in particular its cash resources and trade receivables. The Company’s existing cash resources and trade receivables significantly exceed The current cash outflow requirements. Cash flows from trade receivables are all contractually due within 30 - 180 days based on the credit period. The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, and short term borrowings. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low The Company has access to a sufficient variety of sources of funding

The Company’s non-derivative financial liabilities have contractual maturities as summarised below:

c) Market risk

The Company is exposed to market risk through its use of financial instruments and specifically to currency risk, interest rate risk and certain other price risks, which result from both its operating and investing activities.

Foreign currency risk

Most of the Company’s Transactions are carried out in Indian rupees. Exposures to currency exchange rates arise from the Company’s overseas sales and purchases, which are primarily denominated in US dollars (USD).

To militate the Company’s exposure to foreign currency risk, cash flows are continuously monitored.

Foreign currency denominated financial assets and financial liabilities which expose the Company lo currency risk are disclosed below The amounts shown are those reported to key management translated at the closing rate:-

The company has not entered in any forward contract for hedging or otherwise in respect of foreign currencies during the year, and there are no such contracts outstanding at the end of the year.

Sensitivity analysis

The following table details the Company’s sensitivity to a 5% increase and decrease in the Rupee against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates This is mainly attributable to the net exposure outstanding on receivables or payables in the Company at the end of (he reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts Their translation al The period end for a 5% charge in foreign currency rate This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of Forecast sales and purchases. In cases where the related foreign exchange fluctuation is capitalised to fixed assets or recognised directly in reserves, The impact indicated below may affect the Company’s income statement over the remaining life of the related fixed assets or the remaining tenure of the borrowing respectively

Interest rate risk

Interest rate risk Is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates are managed by borrowing at fixed interest rates During the year Company did not have any floating rate borrowings.

The Company’s investments in term deposits {i.e. certificates of deposits) with banks, investments in preference shares, mutual funds and debentures are at fixed interest rate and therefore do not expose the company to significant interest rate risk

Interest rate sensitivity has been calculated assuming the borrowings outstanding at the reporting date have been outstanding for the entire reporting period

3.8. CSR Expenditure

The conditions stipulated for mandatory earmarking of amounts for Corporate Social Responsibility activities in the section 185 of The Companies Act. 2013 is not applicable to The Company.

3.9. (a) Advance(s) in the nature of Loan (Regulation 34 of Listing Obligations & Disclosure Requirements)

No Loans have been given to Subsidiaries during the year.

(b) Particulars of Loans, Guarantees or Investments covered under section 186(4) of the Companies Act, 2013

3.10. Lease Commitments Operating Lease

The company has taken office premises on lease under cancelable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee Rental payments under such leases are Rs. 68.82 lakhs (Previous year Rs. 56.24 (lakhs). The deposit paid in respect of the same is Rs. 30.02 Lakhs (as al 31st March, 2017: Rs. 26.51 lakhs, as al 1st April, 2016: Rs. 23.91 lakhs)

3.11. Transition to Ind AS

These are the Company’s first financial statements prepared in accordance with Ind AS. The Company has adopted all the Ind AS and The adoption was carried out in accordance with Ind AS 101 - First time adoption of Indian Accounting Standards. The transition was carried out from Generally Accepted Accounting Principles In India (Indian GAAP) as prescribed under Section 133 of the Act. read with Rule 7 of the Companies (Accounts) Rules. 2014. which was the ‘Previous GAAP’,

The Significant Accounting Policies set out In Note No 2 have been applied in preparing the financial statements for the year ended 31st March 2018, 31st March 2017 and the opening Ind AS balance sheet on the date of transition i.e. 1 st April 2016.

In preparing its Ind AS Balance Sheet as at 1 st April 2016 and in presenting the comparative information for the year ended 31st March 2017, the Company has adjusted amounts previously reported in The financial statements prepared in accordance with Previous GAAP This note explains the principal adjustments made by the Company in restating its financial statements prepared in accordance with Previous GAAP and how the transition from Previous GAAP to Ind AS has affected The Company’s financial position, financial performance and cash flows.

I. Explanation of transition to Ind AS

In preparing the financial statements, the Company has applied the below mentioned optional exemptions and mandatory exceptions.

A. Optional Exemptions availed

a) Deemed cost for property, plant and equipment, investment property and intangible assets

The Company has elected to measure all its properly, plant and equipment and intangible assets at the Previous GAAP carrying amount as its deemed cost on the date of transition to Ind AS.

b) Investments in Subsidiaries

The Company has elected Jo measure its investments in subsidiaries at The Previous GAAP carrying amount as its deemed cost on the dale of transition to Ind AS.

B Mandatory Exceptions

a) Estimates

On assessment of the estimates made under the Previous GAAP financial statements, The Company has concluded that there is no necessity to revise the estimates under Ind AS, as there is no objective evidence of an error in those estimates. However, estimates that were required under Ind AS but not required under Previous GAAP are made by the Company for The relevant reporting dates reflecting conditions existing as at that date.

b) Derecognition of financial assets and financial liabilities

Derecognition of financial assets and liabilities as required by Ind AS 109 is applied prospectively i.e. after the transition date

c) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on The date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at 1he date of transition if retrospective application is impracticable

Accordingly, the Company has determined the classification of financial assets based on tacts and circumstances that exist on the date of transition. Measurement of financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.

I. Notes to reconciliation:

A. Fair valuation of investments

All Investments except investments in group companies have been fair valued in accordance with Ind AS 109. Investments in debt securities are measured at amortised costs. Other investments are fair valued through proft or loss. Under Previous GAAP, current investments were carried at cost net of diminution in their value as at the Balance Sheet date. The long term investments were carried at cost net of permanent diminution, if any.

B. Trade receivables

Under previous GAAP, the Company had recognised provision on trade receivables based on The expectation of the Company

Under lnd AS The Company provides loss allowance on receivables based on the Expected Credit Loss (ECL) model which is measured following the ‘simplified approach’ at an amount equal to the lifetime ECL at each reporting date.

The carrying amount of the Trade Receivables are considered as a reasonable approximation of fair value hence no provision is made for Expected credit Losses.

C. Deferred Tax

Under previous GAAP, deferred tax accounting was done using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period.

Under ind AS, accounting of deferred taxes is done using the Balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base.

D. Remeasurement of Defined benefits liabilities

Under previous GAAP the company recognised remeasurements of defined benefits plans under profit and loss. Under Ind AS, remeasurement of defined benefits plans are recognised in Other Comprehensive Income

E. Other Comprehensive Income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard enquires or permits otherwise Items of income and expense that are not recognised m profit or loss but are shown In The statement of profit and loss as other comprehensive income” includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP

F. Others

Other adjustments on account of transition to Ind AS include reclassification of Property, Plant and Equipment (PPE) to Intangible asset as part of service concession arrangements, classification of Investment Property, fair valuation of deposits and effect of adjustments relating to revenue recognition.

G. The previous year Previous GAAP figures have been reclassified/regrouped to make them comparable with Ind AS presentation.


Mar 31, 2015

1. Segment Information

The company operates in the single segment of System Integration and Services.

2. Lease Commitments

Operating Lease

The company has taken office premises on lease under cancelable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. Rental payments under such leases are Rs. 19.26 lakhs (Previous year Rs. 14.23 lakhs).

3. Foreign Exchange Exposure:

The company has not entered in any forward contract for hedging or otherwise in respect of foreign currencies during the year, and there are no such contracts outstanding at the end of the year.

As of the Balance Sheet date, the Company has net foreign currency exposure that are not hedged by a derivative instrument or otherwise, amounting to Rs.25.55 lakhs (Previous year Rs. 24.57 lakhs).

4. Other Notes

a) In the opinion of the Board of Directors, Current Assets, Loans and Advance have the value at which these are stated in the Balance Sheet, if realised in the ordinary course of business and the provisions for all known liabilities is adequate and not in excess of or less than the amount reasonably necessary.

b) Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2014

1. Company Overview

Dynacons Systems & Solutions Ltd. is an IT solutions company with global perspectives and is engaged in providing a comprehensive range of end-to-end solutions to customers. Dynacons has the technical expertise and the service delivery infrastructure to serve Customers at a level of quality consistent with their expectations. Dynacons helps in the selection of the right technology and application that will yield the greatest return and build a business case for implementation based on lower Total cost of ownership and higher performance.

2. As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents the both legal and beneficial ownership of shares.

3. The company has only one class of equity shares having a par value of 10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation of the Company, holder of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amount. The distribution will be in proportionate to the number of equity shares held by the shareholders.

4. No bonus shares have been issued to equity share holders in last five years

5. No equity share shares been bought back in last five years.

6. Term loans from banks are Secured by way of first mortgage / charge on the Plant & Machinery of the Company

7. Term loans from Other Parties are Secured by way of first mortgage / charge on the Vehicles of the Company

8. Contingent Liabilities

a) Claims against the Company not acknowledged as debts: Nil

b) Guarantees given by the company’s bankers 473.83/- (previous year 258.48)

9. Segment Information

The company operates in the single segment of System Integration and Services.

10. Lease Commitments

Operating Lease

The company has taken office premises on lease under cancelable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. Rental payments under such leases are Rs. 14.23 (Previous year Rs. 12.74 ).

11. Foreign Exchange Exposure:

The company has not entered in any forward contract for hedging or otherwise in respect of foreign currencies during the year, and there are no such contracts outstanding at the end of the year.

As of the Balance Sheet date, the Company has net foreign currency exposure that are not hedged by a derivative instrument or otherwise, amounting to 24.57 (Previous year Rs. 22.30).

12. Other Notes

a) In the opinion of the Board of Directors, Current Assets, Loans and Advance have the value at which these are stated in the Balance Sheet, if realised in the ordinary course of business and the provisions for all known liabilities is adequate and not in excess of or less than the amount reasonably necessary.

b) Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2013

Company Overview

Dynacons Systems & Solutions Ltd. is an IT solutions company with global perspectives and is engaged in providing a comprehensive range of end-to-end solutions to customers. Dynacons has the technical expertise and the service delivery infrastructure to serve Customers at a level of quality consistent with their expectations. Dynacons helps in the selection of the right technology and application that will yield the greatest return and build a business case for implementation based on lower Total cost of ownership and higher performance.

1.1 Contingent Liabilities

a) Claims against the Company not acknowledged as debts: Nil

b) Guarantees given by the company''s bankers Rs. 258.48/- (previous year Rs. 252.04)

1.2 Segment Information

The company operates in the single segment of System Integration and Services.

1.3 Lease Commitments Operating Lease

The company has taken office premises on lease under cancelable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. Rental payments under such leases are Rs. 12.74 (Previous year Rs. 7.34).

1.4 Foreign Exchange Exposure:

The company has not entered in any forward contract for hedging or otherwise in respect of foreign currencies during the year, and there are no such contracts outstanding at the end of the year.

As of the Balance Sheet date, the Company has net foreign currency exposure that are not hedged by a derivative instrument or otherwise, amounting to Rs. 22.30 (Previous year Rs. 22.25).

1.5 Other Notes

a) In the opinion of the Board of Directors, Current Assets, Loans and Advance have the value at which these are stated in the Balance Sheet, if realized in the ordinary course of business and the provisions for all known liabilities is adequate and not in excess of or less than the amount reasonably necessary.

b) Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2012

Company Overview

Dynacons Systems & Solutions Ltd. is an IT solutions company with global perspectives and is engaged in providing a comprehensive range of end-to-end solutions to customers. Dynacons has the technical expertise and the service delivery infrastructure to serve Customers at a level of quality consistent with their expectations. Dynacons helps in the selection of the right technology and application that will yield the greatest return and build a business case for implementation based on lower Total cost of ownership and higher performance.

Pursuant to the Scheme of Arrangement (the Scheme) entered into by the Company with Dynacons Technologies Limited (DTL), the Marketing and Distribution Business and Manufacturing Business of the Company was transferred to DTL with effect from 1st April, 2009, the Appointed Date.

1. SHARE CAPITAL

1.1 Pursuant to the Scheme of Arrangement the Equity Share Capital of the Company has been reorganised in the year 2010-11

1.2 The face value of equity shares of the company has been consolidated from Rs. 1 each to Rs. 10 each

1.3 As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents the both legal and beneficial ownership of shares.

1.4 The company has only one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held.

1.5 No bonus shares have been issued to equity share holders in last five years

1.6 No equity share shares been bought back in last five years.

2. LONG TERM BORROWINGS

2.1 Term loans from banks are Secured by way of first mortgage/charge on the Plant & Machinery of the Company

2.2 Term loans from Other Parties are Secured by way of first mortgage/charge on the Vehicles of the Company

3. Short Term Borrowings

2.1 Working capital loans are secured by hypothecation of present and future stock, book debts, outstanding monies, receivables, claims, bills, material in transit and Fixed Assets.

4. Additional Information to the financial statements

4.1 Contingent Liabilities

a) Claims against the Company not acknowledged as debts: Nil

b) Guarantees given by the company's bankers Rs. 252.04/- (previous year Rs. 219.82)

4.2 Segment Information

The company operates in the single segment of System Integration and Services.

4.3 Related Party Disclosures

a. The names of related parties and the nature of relationship are as under:

S. P. Corporation Firm in which Wholetime Directors have substantial interest.

Shirish M. Anjaria Chairman and Managing Director

Parag J. Dalal Wholetime Director

Dharmesh S. Anjaria Wholetime Director

Trigem Infosolutions Limited Company in which Wholetime Directors have substantial interest

Dynacons Technologies Limited Company in which Directors have substantial interest

4.4 Lease Commitments

Operating Lease

The company has taken office premises on lease under cancelable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. Rental payments under such leases are Rs. 7.34 (Previous year Rs. 3.15).

4.5 Foreign Exchange Exposure:

The company has not entered in any forward contract for hedging or otherwise in respect of foreign currencies during the year, and there are no such contracts outstanding at the end of the year.

As of the Balance Sheet date, the Company has net foreign currency exposure that are not hedged by a derivative instrument or otherwise, amounting to Rs. 22.25 (Previous year Rs. 8.24).

4.6 Other Notes

a) In the opinion of the Board of Directors, Current Assets, Loans and Advance have the value at which these are stated in the Balance Sheet, if realised in the ordinary course of business and the provisions for all known liabilities is adequate and not in excess of or less than the amount reasonably necessary.

b) The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosure.


Mar 31, 2011

Company Overview

Dynacons Systems & Solutions Ltd. is an IT solutions company with global perspectives and is engaged in providing a comprehensive range of end-to-end solutions to customers. Dynacons has the technical expertise and the service delivery infrastructure to serve Customers at a level of quality consistent with their expectations. Dynacons helps in the selection of the right technology and application that will yield the greatest return and build a business case for implementation based on lower Total cost of ownership and higher performance.

1. Contingent Liabilities

a) Claims against the Company not acknowledged as debts: NIL

b) Guarantees given by the company's bankers Rs. 2,19,82,406/- (previous year Rs 38,86,462/-)

2. SCHEME OF ARRANGEMENT

Pursuant to the Scheme of Arrangement (the Scheme) entered into by the Company with Dynacons Technologies Limited (DTL), the Marketing and Distribution Business and Manufacturing Business of the Company was transferred to DTL with effect from 1st April, 2009, the Appointed Date.

The said Scheme, under section 391 to 394 of the Companies Act, 1956, has been approved by the Hon'ble High Court of Judicature of Bombay, vide its Order dated 15th October, 2010.

The Scheme provides that it shall become effective upon satisfaction of the conditions set out in the Scheme therein, including receipt of necessary approvals from Government Authorities. Accordingly, upon receipt of the requisite approvals, as aforesaid, the Effective Date of the Scheme was December 20, 2010.

In accordance with the terms of the Scheme of Arrangement an aggregate of 44,432,100 equity shares of Re 1 each of DTL were issued as fully paid up, to the members of DSSL whose names are recorded in the register of members on the record date, in the ratio of 3(three) equity shares in DTL of face value of Re 1 each for every 10(ten) equity shares of Rs 2 each held by such member in DSSL.

Pursuant to the Scheme, the equity capital of the company stands reorganised in a manner that each shareholder of the company whose name appeared in the Register of members of the company on the Record Date shall receive 4 fully paid Equity Shares of the face value of Re 1 each of the company in lieu of every 10 equity shares of the face value of Rs 2 each held.

In accordance with the Scheme, the following effects have been given in the books of account of the Company:

3. Segment Information

The company operates in the single segment of System Integration and Services.

4. Related Party Disclosures

a. The names of related parties and the nature of relationship are as under:

S. P. Corporation Firm in which Wholetime Directors have substantial interest.

Shirish M. Anjaria Chairman and Managing Director

Parag J. Dalal Wholetime Director

Dharmesh S. Anjaria Wholetime Director

Trigem Infosolutions Limited Company in which Wholetime Directors have substantial interest

Dynacons Technologies Limited Company in which Directors have substantial interest

5. Lease Commitments

Operating Lease

The company has taken office premises on lease under cancelable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. Rental payments under such leases are Rs. 315,200/- (Previous year Rs. 287,285/-).

6. Retirement Benefit Plans

Defined benefit plan

Gratuity Plan

The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method with actuarial valuations being carried out at the balance sheet date.

7. Foreign Exchange Exposure:

The company has not entered in any forward contract for hedging or otherwise in respect of foreign currencies during the year, and there are no such contracts outstanding at the end of the year.

As of the Balance Sheet date, the Company has net foreign currency exposure that are not hedged by a derivative instrument or otherwise, amounting to Rs.1,824,639/- (Previous year Rs. 1,905,062/-).

8. Other Notes

a) In the opinion of the Board of Directors, Current Assets, Loans and Advance have the value at which these are stated in the Balance Sheet, if realised in the ordinary course of business and the provisions for all known liabilities is adequate and not in excess of or less than the amount reasonably necessary.

b) Previous year's figures have been regrouped or rearranged or reclassified wherever necessary to confirm to those of the current year.


Mar 31, 2010

Company Overview

Dynacons Systems & Solutions Ltd. is an IT solutions company with global perspectives and is engaged in providing a comprehensive range of end-to-end solutions to customers. Dynacons has the technical expertise and the service delivery infrastructure to serve Customers at a level of quality consistent with their expectations. Dynacons helps in the selection of the right technology and application that will yield the greatest return and build a business case for implementation based on lower Total cost of ownership and higher performance.

1. Contingent Liabilities

a) Claims against the Company not acknowledged as debts:

Income Tax demands Rs. 686,491/- (previous year Rs 686,491/-). Against this, the Company has deposited a sum of Rs 60,000 under protest. No provision is necessary since the Company expects favourable decisions.

b) Guarantees given by the companys bankers Rs. 38,86,462/- (previous year Rs 34,74,285/-)

2. Disclosures as per Micro, Medium and Small Enterprises Development Act, 2006 (MSMED)

Particulars 2010 2009 Amount (Rs.) Amount (Rs.)

a. Amounts payable to suppliers under MSMED

(suppliers) as on March 31, 2010

- Principal NIL NIL

- Interest due thereon NIL NIL



b. Payments made to suppliers beyond the appointed day during the year

- Principal NIL NIL

- Interest due thereon NIL NiL

c. Amount of interest due and payable for delay in payment (which have been paid but beyond the appointed day during the year)

but without adding the interest under MSMED NIL NIL

d. Amount of interest accrued and remaining unpaid as on 31 March, 2010 NIL NIL

e. Amount of interest remaining due and payable to suppliers disallowable as deductible expenditure under Income Tax Act, 1961

NIL NIL

Note: The information has been given in respect of such vendors to the extent they could be identified as micro and small enterprises as per MSMED on the basis of information available with the Company.

3. Segment Information

The company operates in the single segment of System Integration and Services.

4. Related Party Disclosures

a. The names of related parties and the nature of relationship are as under:

S. P. Corporation Firm in which Wholetime Directors have substantial interest.

Shirish M. Anjaria Chairman and Managing Director Parag J. Dalai Wholetime Director

Dharmesh S. Anjaria Wholetime Director.

Trigem Infosolutions Limited Company in which Wholetime Directors have substantial interest

Dynacons Technologies Limited Subsidiary

5. Lease Commitments

Operating Lease

The company has taken office premises on lease under cancelable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. Rental payments under such leases are Rs. 348,299/- (Previous year Rs. 198,580/-).

Defined benefit plan

Gratuity Plan

The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method with actuarial valuations being carried out at the balance sheet date.

The following tables set out the status of the gratuity plan and amounts recognized in the Companys financial statements as at March 31,2010:

6. Foreign Exchange Exposure:

The company has not entered in any forward contract for hedging or otherwise in respect of foreign currencies during the year, and there are no such contracts outstanding at the end of the year.

As of the Balance Sheet date, the Company has net foreign currency exposure that are not hedged by a derivative instrument or otherwise, amounting to Rs.l,905,062/-(Previous year Rs. 1,747,226/-).

7. Scheme of Arrangement:

A scheme of Arrangement has been presented under Section 391 to 394 of the Act for transfer and vesting of Marketing & Distribution Business and Manufacturing Business of Dynacons Systems & Solutions Limited into Dynacons Technologies Limited. The approval of the shareholders of both the companies has been obtained and the petition for the same has been admitted to the High Court for approval. The effect of the scheme shall be given in the accounts on sanctioning of the scheme by the High Court.

8. Other Notes

a) In the opinion of the Board of Directors, Current Assets, Loans and Advance have the value at which these are stated in the Balance Sheet, if realised in the ordinary course of business and the provisions for all known liabilities is adequate and not in excess of or less than the amount reasonably necessary.

b) Previous years figures have been regrouped or rearranged or reclassified wherever necessary.

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