Mar 31, 2018
INDEPENDENT AUDITORS'' REPORT
To,
The Members,
Dynamic Industries Limited,
Ahmedabad.
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Dynamic Industries Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2018, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flows and the Statement of Change in Equity for the year then ended and a summary of significant accounting policies and other explanatory information (hereinafter referred to as ''Ind AS financial statementsâ).
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with relevant Rules issued there under.
This responsibility also includes maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on standalone Ind AS financial statements
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including Ind AS, of the financial position of the company as at 31st March, 2018 and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub section (11) of section 143 of the Act, we give in the âAnnexure-Aâ, a statement of the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of 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 the Company so far as appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of written representations received from the directors as on 31 March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure-Bâ; and
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 and to our best of our information and according to the explanations given to us :
(i) The Company has disclosed pending litigations which would impact its financial position - Refer Note 35 to the financial statements;
(ii) The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
To the Independent Auditorsâ Report of even date on Standalone Ind As Financial Statements of DYNAMIC INDUSTRIES LIMITED
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of its fixed assets.
(b) The fixed assets of the Company are physically verified by the management according to phased program designed to cover all the items once in period of three years which in our opinion is reasonable having regard to the size of the Company and nature of its assets. Pursuant to program, a physical verification of Buildings, vehicles and Computers were carried out during the year by the management and no material discrepancies between the book records and physical inventory have been noticed.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) According to information and explanation given to us, the Management of the Company has conducted physical verification of inventory at the year end and no material discrepancies were noticed on such physical verification during the year.
(iii) The Company has not granted any secured / unsecured loan to any parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of Clause 3(iii) of the Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans, investments, guarantees and securities.
(v) According to information and explanations given to us, the Company has not accepted any deposits as defined in The Companies (Acceptance of Deposits) Rules 2014. Accordingly, the provisions of Clause 3(v) of the Order are not applicable to the Company.
(vi) We have broadly reviewed the cost records maintained by the Company pursuant to rules made by the Central Government. We are of the opinion that prima facie the prescribed accounts and records have been maintained and being made. We have not, however, made a detailed examination of these records with a view to determine whether they are accurate or complete.
(vii) (a) According to the information given to us, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues and Company had no arrears of such outstanding statutory dues as at 31st March, 2018 for a period more than six months from the date they became payable.
(b) According to the information and explanations given to us, the company has no disputed outstanding statutory dues as at 31st March, 2018 other than stated below:
Name of the Statute |
Nature of Dues |
Amount Rs, in lacs |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act, 1961 |
Income Tax |
8.73 |
2012-2013 |
CIT(A), Ahmedabad |
Customs Act, 1962 |
Customs Duty |
171.14 |
2006-2007 & 2007-2008 |
CESTAT, Ahmedabad |
Customs Act, 1962 |
Customs Duty |
5.51 |
2007-2008 |
CESTAT, Mumbai |
Finance Act, 1994 |
Service Tax |
79.24 |
2012-2013 |
CESTAT, Ahmedabad |
(viii) According to the information and explanations given to us, the Company has not defaulted in the repayment of loans and borrowings to financial institutions, banks, government or dues to debenture holders during the year.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year. However money raised by way of term loans have been applied for the purposes for which they have been obtained.
(x) According to the information and explanations given to us, no fraud by company or any fraud on the company by its officers and employees have been noticed or reported during the year.
(xi) According to the information and explanations give to us, the Company has paid/provided for managerial remuneration in accordance with the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of act where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Annexure - B to the Independent Auditorsâ Report of even date on the Standalone Ind As Financial Statements of Dynamic Industries Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting Dynamic Industries Limited (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs 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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For, ASHOK K. BHATT & CO.
[Firm Registration No. 100657W]
Chartered Accountants
Place : Ahmedabad Sd/-
Date : 30th May, 2018 ASHOK K. BHATT
Proprietor Membership No. 036439
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Dynamic Industries Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2015, the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding the assets of the Company and for
preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial control, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give true and fair view in
order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the company has in place an adequate internal financial
controls system over financial reporting and operating effectiveness of
such control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the company as
at 31st March, 2015 and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2015 ("the
Order") issued by the Central Government of India in terms of sub
section (11) of section 143 of the Act, we give in the Annexure, a
statement of the matters specified in paragraphs 3 and 4 of the Order
to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of 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 the Company so far as appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of written representations received from the directors
as on 31st March, 2015 taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March, 2015 from being
appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014 and to our best of our information and according to the
explanations given to us :
(i) The Company has disclosed pending litigations which would impact
its financial position - Refer Note 35 to the financial statements;
(ii) The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses.
(iii) There has been no delay in transferring amounts which were
required to be transferred to the Investor Education and Protection
Fund by the Company.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in our Report of even date to the members of Dynamic
Industries Limited)
(i) (a) The Company is in the process of compiling fixed assets records
to show full particulars, including quantitative details and situation
of fixed assets.
(b) We were informed that all major items of fixed assets were
physically verified by the Management at the end of the year and that
no discrepancy was noticed on such verification, which on account of
proper records being still under compilation, could not be verified.
(ii) (a) The Management of Company has conducted physical verification
of inventory at reasonable intervals.
(b) In our opinion, the procedures of physical verification of stocks
followed by the management of Company are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of inventories records, in our
opinion, the Company is maintaining the proper records of inventories
and no material discrepancies were noticed on physical verification.
(iii) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013. Accordingly the clause
3(iii)(a) and 3(iii)(b) of the Order are not applicable to the Company.
(iv) In our opinion and according to information and explanation given
to us; there is adequate internal control system commensurate with the
size of the Company and the nature of its business, with regard to
purchase of inventory and fixed assets and with regard to sale of goods
and services. Further on the basis of our examination of books and
records of the Company, and according to the information and
explanations given to us, we have not observed any continuing failure
to correct major weaknesses in the aforesaid internal control system.
(v) The Company has not accepted any deposits as defined in The
Companies (Acceptance of Deposits) Rules 2014. Accordingly, the
provisions of Clause 3(v) of the Order are not applicable to the
Company.
(vi) According to information and explanations given to us, the Central
Government has not prescribed maintenance of cost records under section
(1) of Section 148 of the Companies Act, 2013.
(vii) (a) According to the information given to us, the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues and Company had no arrears of such outstanding statutory
dues as at 31st March, 2015 for a period more than six months from the
date they became payable.
(b) According to the information and explanations given to us, the
Company has no disputed outstanding statutory dues as at to 31st March,
2015 other than those stated below
Name of the Statute Nature of Amount
Dues Rs. in lacs
Income Tax Act, 1961 Income Tax 59.33
2.11
1.89
Customs Act, 1962 Customs Duty 171.14
Customs Act, 1962 Customs Duty 5.51
Finance Act, 1994 Service Tax 3.2
Name of the Statute Period to which the Forum where
amount relates dispute is pending
Income Tax Act, 1961 2002-2003 ITAT, Ahmedabad
2007-2008 CIT(A), Ahmedabad
2012-2013 CIT(A), Ahmedabad
Customs Act, 1962 2006-2007 CESTAT, Ahmedabad
&
2007-2008
Customs Act, 1962 2007-2008 CESTAT, Mumbai
Finance Act, 1994 2012-2013 Commissioner
(Appeal) Ahmedabad
(c) According to the information and explanations given to us, the
amounts which were required to be transferred to the Investor Education
and Protection Fund in accordance with the relevant provision of the
Companies Act,1956(1 of 1956) and rules thereunder has been transferred
to such fund within time.
(viii) The company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses during the
financial year end in the immediately preceding financial year.
(ix) According to the information and explanations given to us, the
Company has not defaulted in the repayment of dues to financial
institutions, banks or debenture holders during the year.
(x) According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions during the year.
(xi) According to the information and explanation given to us, the
Company has applied term loans for the purpose for which the loans were
obtained.
(xii) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the year
under review.
FOR, G. K. CHOKSI & CO.
[Firm Registration No. 101895W]
Chartered Accountants
Place : Ahmedabad Sd/-
Date : 30th May, 2015 ROHIT K. CHOKSI
Partner
Membership No. 31103
Mar 31, 2014
We have audited the accompanying financial statements of Dynamic
Industries Limited ("the Company"), which comprise of the Balance Sheet
as at March 31st, 2014, and the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position and
financial performance of the company in accordance with the Accounting
Standards notified under the Companies Act, 1956 ("the Act") read with
the General Circular 15/2013 dated 13th September, 2013 of the Ministry
of Corporate Affairs in respect of section 133 of the Companies Act,
2013. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India.
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31st, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that.
(a) we have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of those
books.
(c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) in our opinion, the Balance Sheet ,Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards notified under
the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of section 133 of the Companies Act, 2013.
(e) on the basis of written representations received from the directors
as on March 31st, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March, 31st, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in our report of even date to the members of Dynamic
Industries Limited)
1 (a) The Company is in the process of compiling fixed assets records
to show full particulars, including quantitative details and situation
of fixed assets.
(b) We were informed that all major items of fixed assets were
physically verified by the Management at the end of the year and that
no discrepancy was noticed on such verification, which on account of
proper records being still under compilation, could not be verified.
(c) The Company has not disposed of any substantial part of its fixed
assets during the year as would affect its going concern status.
2 (a) In our opinion, physical verification of inventory has been
conducted by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) On the basis of our examination of records of inventory, in our
opinion, the Company is maintaining proper records of inventory. No
material discrepancy was noticed on physical verification of the
inventory.
3 (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
u/s.301 of the Companies Act, 1956. Accordingly the clauses 4(iii)(b),
4(iii)(c) and 4(iii)(d) of the report are not applicable.
(b) As per the information and explanations given to us, the Company
has taken loans from one party covered in the register maintained u/s.
301 of the Companies Act, 1956. The maximum amount outstanding during
the year was Rs. 60,00,000 (PY Rs. Nil) and the year end balance is Rs.
NIL (PY. Rs. NIL).
(c) In our opinion, the rate of interest and other terms and conditions
on which the loans have been availed from the parties listed in the
register maintained under section 301 of the Companies Act, 1956 are
prima facie not prejudicial to the interest of the company.
(d) As per the information and explanations given to us, principal
amount and interest thereon has been repaid during the year.
4 In our opinion and according to information and explanation given to
us; there is adequate internal control system commensurate with the
size of the Company and the nature of the business, with regard to
purchase of inventory and fixed assets, and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in the
internal controls.
5 (a) According to information and explanations provided by the
management, the particulars of contracts or arrangements referred to in
section 301 of the act have been entered in the register required to be
maintained under that section.
(b) In our opinion and according to the information and explanations
given by the management, transactions exceeding Rs. 5 lacs made in
pursuance of such contracts or arrangements have been made at prices
which are reasonable having regard to the prevailing market prices at
the relevant time.
6 In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of Section 58A, 58AA or other relevant provisions of
the act.
7 In our opinion, the company has an adequate internal audit system
commensurate with the size and the nature of its business;
8 We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have however not made
a detailed examination of the cost records with a view to determine
whether they are accurate or complete.
9 (a) According to the information given to us, the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues and the Company had no arrears of such outstanding
statutory dues as at 31st March, 2014 for a period more than six months
from the date they became payable.
(b) According to the information and explanations given to us, the
Company had no disputed outstanding statutory dues as at 31st March,
2014 other than those stated below:
Name of the Statute Nature of Amount Period
Dues Rs. in lacs Which the
amount relates
Income Tax Act, 1961 Income Tax 78.29 2003-2004
2006-2007
Customs Act, 1962 Customs Duty 171.14 &
2007-2008
Customs Act, 1962 Customs Duty 5.51 2007-2008
Finance Act, 1994 Service Tax 28.67 2006-2007
&
2007-2008
Name of the Statute Forum where
dispute is pending
Income Tax Act,1961 CIT(A), Ahmedabad
Customs Act, 1962 CESTAT, Ahmedabad
Customs Act, 1962 CESTAT, Mumbai
Finace Act, 1994 Gujarat High Court
10 The Company does not have any accumulated losses as at 31st March,
2014 and it has not incurred any cash loss in the financial year ended
on that date or in the immediately preceding financial year.
11 According to the records of the company examined by us and on the
basis of information and explanations given to us, the company has not
defaulted in repayment of dues to any financial institution or bank or
debenture holders.
12 As per the information and explanations given to us, the Company has
not granted any loan or advance on the basis of security by way of
pledge of shares, debentures and other securities.
13 The provisions of any special statute applicable to Chit fund, Nidhi
or Mutual Benefit Funds/Societies are not applicable to the company.
14 According to the information and explanation given to us, the
company does not deal or trade in shares, securities, debentures and
other investments.
15 In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for loans taken by
others from banks and financial institutions during the year.
16 In our opinion, the term loans have been applied for the purpose for
which they were raised.
17 On the basis of an overall examination of the balance sheet of the
company in our opinion and according to the information and
explanations given to us, the company has not utilised any funds raised
on short term basis for long term investments.
18 The company has not made any preferential allotment to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956.
19 The Company has not issued any debentures during the period under
review.
20 The company has not raised any money by public issues during the
year under review.
21 According to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the period
under review.
FOR, G. K. CHOKSI & CO.
[Firm Registration No. 101895W]
Chartered Accountants
Place : Ahmedabad Sd/-
Date : 30th May,2014 ROHIT K. CHOKSI
Partner
Membership No. 31103
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Dynamic
Industries Limited ("the Company"), which comprise the Balance Sheet as
at March 31 st, 2013, and the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act")- This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor''s
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
control relevant to the Company''s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India.
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31 st, 2013;
b) in the case of the Statement of Profit and Loss, of the profit
forthe year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date. Report on Other Legal and Regulatory
Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we reportthat:
a) we have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of those
books.
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31 st, 2013 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31st, 2013, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in our report of even date to the members of Dynamic
Industries Limited)
1 (a) The Company is in the process of compiling fixed assets records
to show full particulars, including quantitative details and situation
of fixed assets.
(b) We were informed that all major items of fixed assets were
physically verified by the Management at the end of the year and that
no discrepancy was noticed on such verification, which on account of
proper records being still under compilation, could not be verified.
(c) The Company has not disposed of any substantial part of its fixed
assets during the year as would affect its going concern status.
2 (a) In our opinion, physical verification of inventory has been
conducted by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) On the basis of our examination of records of inventory, in our
opinion, the Company is maintaining proper records of inventory. No
material discrepancy was noticed on physical verification of the
inventory.
3 (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
u/s 301 of the Companies Act, 1956. Accordingly the clauses 4(iii)(b),
4(iii)(c) and 4(iii)(d) of the report are not applicable.
(b) As per the information and explanations given to us, the Company
has not taken any loans from parties covered in the register maintained
u/s 301 of the Companies Act, 1956. Hence, this clause is not
applicable.
4 In our opinion and according to information and explanation given to
us; there is adequate internal control system commensurate with the
size of the Company and the nature of the business, with regard to
purchase of inventory and fixed assets, and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in the
internal controls.
5 (a) According to information and explanations provided by the
management, there are no contracts or arrangements
referred to in section 301 of the act which required to be entered in
the register maintained under that section.
(b) To the best of our knowledge and belief and according to the
information and explanations given to us, the Company has not entered
into transactions, which required to be entered in the register
maintained in pursuance of section 301 of the Companies Act, 1956.
6 In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of Section 58A, 58AA orother relevant provisions of
the act.
7 In our opinion, the company has an adequate internal audit system
commensurate with the size and the nature of its business;
8 We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 209(1 )(d) of the
Companies Act, 1956 and are of the opinion that prima facia the
prescribed cost records have been maintained. We have however not made
a detailed examination of the cost records with a view to determine
whether they are accurate or complete.
9 (a) According to the information given to us, the Company is
generally regular in depositing with appropriate
authorities undisputed statutory dues and the Company had no arrears of
such outstanding statutory dues as at 31st March, 2013 for a period
more than six months from the date they became payable.
10 The Company does not have any accumulated losses as at 31s'' March,
2013 and its has not incurred any cash loss in the financial year ended
on that date or in the immediately preceding financial year.
11 According to the records of the company examined by us and on the
basis of information and explanations given to us, the company has not
defaulted in repayment of dues to any financial institution or bank or
debenture holders.
12 As perthe information and explanations given to us, the Company has
not granted any loan or advance on the basis of security by way of
pledge of shares, debentures and other securities.
13 The provisions of any special statute applicable to Chit Fund, Nidhi
or Mutual Benefit Funds / Societies are not applicable to the company.
14 According to the information and explanation given to us, the
company does not deal or trade in shares, securities, debentures and
other investments.
15 In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for loans taken by
others from banks and financial institutions during the year.
16 In our opinion, the term loans have been applied for the purpose for
which they were raised.
17 On the basis of an overall examination of the balance sheet of the
company in our opinion and according to the information and
explanations given to us, the company has not utilized any funds raised
on short term basis for long term investments.
18 The company has not made any preferential allotment to parties and
companies covered in the register maintained under section 301 ofthe
Companies Act, 1956.
19 The Company has not issued any debentures during the period under
review.
20 The company has not raised any money by public issues during the
year under review.
21 According to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the period
under review.
FOR, G. K. CHOKSI & CO.
[Firm Registration No. 101895W]
Chartered Accountants
Place : Ahmedabad Sd/-
Date : 30th May, 2013 ROHIT K. CHOKSI
Partner
Membership No. 31103
Mar 31, 2012
1. We have audited the attached Balance Sheet of Dynamic Industries
Limited as at 31st March, 2012 and statement of Profit and Loss and
Cash Flow Statement of the company for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis evidence supporting, the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, and on the basis of such checks
as we considered appropriate and according to information and
explanations given to us, we enclose in the Annexure a statement on the
matters specified in paragraph 4 and 5 of the said order.
4. Particular attention is drawn:
The company has not yet compiled the requisite information, related to
suppliers who have registered themselves under the Micro, Small and
Medium Enterprises Development Act, 2006. In the absence of relevant
information the requisite disclosures are not made in the financial
statements.
5. Further to our comments in the Annexure referred at para 3 above,
we report that:
a. we have obtained all the information and explanations, which, to
the best of our knowledge and belief, were necessary for the purposes
of our audit.
b. In our opinion, subject to matters stated at para 4 above and
1(a),1(b) and 8 of annexure to the auditors' report below, proper books
of account have been kept by the Company as required by law so far as
appears from our examination of those books.
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d. In our opinion the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the accounting standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
e. On the basis of written representation received from the directors
of the company as at 31st March, 2012 and taken on record by the board
of directors, we report that none of the directors is disqualified from
being appointed as director of company under clause (g) of sub-section
(1) of Section 274 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, subject to para 4
above, give the information required by the Companies Act, 1956 in the
manner so required and give a true and fair view; in conformity with
the accounting principles generally accepted in India:
a. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012
b. In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date.
and
c. In the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Re: Dynamic Industries Limited
Referred to in paragraph 3 of our report of even date,
1 (a) The Company is in the process of compiling fixed assets records
to show full particulars, including quantitative details and situation
of fixed assets.
(b) We were informed that all major items of fixed assets were
physically verified by the Management at the end of the year and that
no discrepancy was noticed on such verification, which on account of
proper records being still under compilation, could not be verified.
(c) The Company has not disposed of any substantial part of its fixed
assets during the year as would affect its going concern status.
2 (a) In our opinion, physical verification of inventory has been
conducted by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) On the basis of our examination of records of inventory, in our
opinion, the Company is maintaining proper records of inventory. No
material discrepancy was noticed on physical verification of the
inventory.
3 (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
u/s.301 of the Companies Act, 1956. Accordingly the clauses 4(iii)(b),
4(iii)(c) and 4(iii)(d) of the report are not applicable.
(b) (i) As per the information and explanations given to us, the
Company has taken unsecured loan from one party covered in the register
maintained u/s.301 of the Companies Act, 1956. The balance outstanding
on ac- count of this loans as at the end of the year was t Nil and the
maximum amount involved during the year wereRs. 15.42 lacs.
(ii) The terms and conditions of the above loans are prima facie not
prejudicial to the interest of the Company.
(iii) As per the information and explanations given to us, repayment of
principal amounts as well as interest have been regular during the
year, whenever it is fallen due for repayment.
4 In our opinion and according to information and explanation given to
us; there is adequate internal control system commensurate with the
size of the Company and the nature of the business, with regard to
purchase of inventory and fixed assets, and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in the
internal controls.
5 (a) According to information and explanations provided by the
management, there are no contracts or arrangements referred to in
section 301 of the act which required to be entered in the register
maintained under that section.
(b) To the best of our knowledge and belief and according to the
information and explanations given to us, the Company has not entered
into transactions (expect loans as mentioned in paragraph 3(b) above),
which required to be entered in the register maintained in pursuance
of section 301 of the Companies Act, 1956.
6 In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of Section 58A, 58AA or other relevant provisions of
the act.
7 In our opinion, the company has an adequate internal audit system
commensurate with the size and the nature of its business;
8 On the basis of examination of records, in our opinion, the company
has not updated and maintained cost records which' has been prescribed
under section 209(1) (d) of the Companies Act, 1956.
9 (a) According to the information given to us, the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues and the Company had no arrears of such outstanding
statutory dues as at 31st March, 2012 for a period more than six months
from the date they became payable.
(b) According to the information and explanations given to us, the
Company had no disputed outstanding statutory dues as at 31st March,
2012 other than those stated below:
Particulars Amount Period to which Forum where
(Rs. in Lacs) the amount relates dispute is
pending
Commissioner of
Income Tax Act,
1961 5.06 2000-2001 Income Tax
(Appeal)
Income Tax Act, Commissioner of
1961 7.24 2007-2008 Income Tax
(Appeal)
Income Tax Act,
1961 78.29 2003-2004 Assessing
Officer
2006-2007 & Appropriate
Custom & Excise
Duty 171.14 2007-2008 Authorities
10 The Company does not have any accumulated losses as at 31st March,
2012 and it has not incurred any cash losses in the financial year
ended on that date or in the immediately preceding financial year.
11 According to the records of the company examined by us and on the
basis of information and explanations given to us, the company has not
defaulted in repayment of dues to any financial institution or bank or
debenture holders.
12 As per the information and explanations given to us, the Company has
not granted any loan or advance on the basis of security by way of
pledge of shares, debentures and other securities.
13 The provisions of any special statute applicable to Chit fund, Nidhi
or Mutual Benefit Funds/Societies are not applicable to the company.
14 According to the information and explanation given to us, the
company does not deal or trade in shares, securities, debentures and
other investments.
15 In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for loans taken
by others from banks and financial institutions during the year.
16. In our opinion, the term loans have been applied for the purpose
for which they were raised.
17. On the basis of an overall examination of the balance sheet of the
company in our opinion and according to the information and
explanations given to us, the company has not utilised any funds raised
on short term basis for long term investments.
18 The company has not made any preferential allotment to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956.
19 The Company has not issued any debentures during the period under
review.
20. The company has not raised any money by public issues during the
year under review.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
period under review.
FOR, G. K. CHOKSI & CO.
[Firm Registration No. 101895W]
Chartered Accountants
ROHIT K. CHOKSI
Place: Ahmedabad. Partner
Date: 30th May, 2012 Membership No. 31103
Mar 31, 2011
1. We have audited the attached Balance Sheet of Dynamic Industries
Limited as at 31 st March, 2011 and Profit and Loss Account and Cash
Flow Statement of the company for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis evidence supporting, the amounts
and disclo- sures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, and on the basis of such checks
as we considered appropriate and according to information and
explanations given to us, we enclose in the Annexure a statement on the
matters specified in paragraph 4 and 5 of the said order.
4. Particular attention is drawn:
(i) Adhering to significant accounting policy, as referred to para (i)
of schedule -12 ieave encashment payable on retirement has been
provided in the books based on computation made by the company and not
in accordance with actuarial valuation. Thus, the provision made is not
in compliance with Accounting Standard 15 (Revised) "Employee Benefits"
issued by Institute of Chartered Accountants of India the differential
impact is not presently ascertained.
(ii) The company has not yet compiled the requisite information,
related to suppliers who have registered themselves under the Micro,
Small And Medium Enterprises Development Act, 2006. In the absence of
relevant information the requisite disclosures are not made in the
financial statements.
5. Further to our comments in the Annexure referred at para 3 above,
we report that:
a. we have obtained all the information and explanations, which, to
the best of our knowledge and belief, were necessary for the purposes
of our audit.
b. In our opinion, subject to matters stated at para 4 above and
1(a),1(b) and 8 of annexure to the auditors' report below, proper books
of account have been kept by the Company as required by law so far as
appears from our examination of those books.
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agree- ment with the books of account.
d. In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with the account- ing standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956, except para
4(i) above regarding leave encashment payable at the time of retirement
in accordance with Accounting Standard-15.
e. On the basis of written representation received from the directors
of the company as at 31st March, 2011 and taken on record by the board
of directors, we report that none of the directors is disqualified from
being appointed as director of company under clause (g) of sub-section
(1) of Section 274 of the Companies Act, 1956.
g. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, subject to para 4
above, give the information required by the Companies Act, 1956 in the
manner so required and give a true and fair view; in conformity with
the accounting principles generally accepted in India:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011
b. in the case of the Profit and Loss Account, of the profit for the
year ended on that date
and
c. in the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Re: Dynamic Industries Limited
Referred to in paragraph 3 of our report of even date,
1. (a) The Company is in the process of compiling fixed assets records
to show full particulars, including quantitative details and situation
of fixed assets.
(b) We were informed that all major items of fixed assets were
physically verified by the Management at the end of the year and that
no discrepancy was noticed on such verification, which on account of
proper records being still under compilation, could not be verified.
(c) The Company has not disposed of any substantial part of its fixed
assets during the year as would affect its going concern status.
2 (a) In our opinion, physical verification of inventory has been
conducted by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedure of physical verifica- tion of inventory
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) On the basis of our examination of records of inventory, in our
opinion, the Company is maintaining proper records of inventory. No
material discrepancy was noticed on physical verification of the
inventory.
3 (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
u/s.301 of the Companies Act, 1956. Accordingly the clauses 4(iii)(b),
4(iii)(c) and 4(iii)(d) of the report are not applicable.
(b) (i) As per the information and explanations given to us, the
Company has taken unsecured loan from two parties covered in the
register maintained u/s.301 of the Companies Act, 1956. The balance
outstanding on account of this loans as at the end of the year was Rs.
14.15 lacs and the maximum amount involved during the year were Rs.
26.54 lacs.
(ii) The terms and conditions of the above loans are prima facie not
prejudicial to the interest of the Company.
(iii) As per the information and explanations given to us, repayment of
principal amounts as well as interest have been regular during the
year, whenever it is fallen due for repayment.
4. In our opinion and according to information and explanation given to
us; there is adequate internal control system commensurate with the
size of the Company and the nature of the business, with regard to
purchase of inventory and fixed assets, and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in the
internal controls.
5. (a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangement referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that Section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursu- ance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act,1956 and exceeding the value of Rs.5,00,000/- in
respect of any party during the period have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time except for items stated to be of specialized nature,
where no comparison is possible.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of Section 58A, 58AA or other relevant provisions of
the act.
7. In our opinion, the company has an adequate internal audit system
commensurate with the size and the nature of its business;
8. On the basis of examination of records, in our opinion, the company
has not updated and maintained cost records which has been prescribed
under section 209(1 )(d) of the Companies Act, 1956.
9. (a) According to the information given to us, the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues and the Company had no arrears of such outstanding
statutory dues as at 31st March, 2011 for a period more than six months
from the date they became payable.
(b) According to the information and explanations given to us, the
Company had no disputed outstanding statutory dues as at 31st March,
2011 other than those stated below:
Particulars Amount Period to Forum where
(Rs.) which the dispute is
amount relates pending
Income Tax Act, 1961 5,06,003 2000-2001 Commissioner of
Income (Appeals)
Income Tax Act, 1961 7,23,930 2007-2008 Commissioner of
Income (Appeals)
10. The Company does not have any accumulated losses as at 31st March,
2011 and it has not incurred any cash losses in the financial year
ended on that date or in the immediately preceding financial year.
11. According to the records of the company examined by us and on the
basis of information and explanations given to us, the company has not
defaulted in repayment of dues to any financial institution or bank or
debenture holders.
12. As per the information and explanations given to us, the Company has
not granted any loan or advance on the basis of security by way of
pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to Chit fund, Nidhi
or Mutual Benefit Funds/Societies are not applica- ble to the company.
14. According to the information and explanation given to us, the
company does not deal or trade in shares, securities, debentures and
other investments.
15. In our opinion and according to the information and explanation
given to us, the company has not given any guaran- tee for loans taken
by others from banks and financial institutions during the year.
16. In our opinion, the term loans have been applied for the purpose
for which they were raised.
17. On the basis of an overall examination of the balance sheet of the
company in our opinion and according to the information and
explanations given to us, we report that company has not utilised any
funds raised on short term basis for long term investments.
18. The company has not made any preferential allotment to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956.
19. The Company has not issued any debentures during the period under
review.
20. The company has not raised any money by public issues during the
year under review.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
period under review.
FOR, G. K. CHOKSI & CO.
Firm Registration No. 101895W
Chartered Accountants
ROHIT K. CHOKSI
Partner
Membership No. 31103
Place Ahmedabad.
Date 14th May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Dynamic Industries
Limited as at 31 st March, 2010 and Profit and Loss Account and Cash
Flow Statement of the company for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis evidence supporting, the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, and on the basis of such checks
as we considered appropriate and according to information and
explanations given to us, we enclose in the Annexure a statement on the
matters specified in paragraph 4 and 5 of the said order.
4. Particular attention is drawn:
(i) Adhering to significant accounting policy, as referred to para (i)
of schedule -12 leave encashment payable on retirement has been
provided in the books based on computation made by the company and not
in accord- ance with actuarial valuation. Thus, the provision made is
not in compliance with Accounting Standard 15 (Revised) "Employee
Benefits" issued by Institute of Chartered Accountants of India the
differential impact is not presently ascertained.
(ii) The company has not yet compiled the requisite information,
related to suppliers who have registered them- selves under the Micro,
Small And Medium Enterprises Development Act, 2006. In the absence of
relevant information the requisite disclosures are not made in the
financial statements.
5. Further to our comments in the Annexure referred at para 3 above,
we report that:
a. we have obtained all the information and explanations, which, to
the best of our knowledge and belief, were necessary for the purposes
of our audit.
b. In our opinion, subject to matters stated at para 4(i) and 4 (ii)
above and 1 (a),1 (b) and 8 of annexure to the auditors report below,
proper books of account have been kept by the Company as required by
law so far as appears from our examination of those books.
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agree- ment with the books of account.
d. In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with the ac- counting standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956, except para
4(1) above regarding leave encashment payable at the time of retirement
in accordance with Accounting Standard - 15.
e. On the basis of written representation received from the directors
of the company as at March 31 st, 2010 and taken on record by the board
of directors, we report that none of the directors is disqualified from
being appointed as director of company under clause (g) of sub-section
(1) of Section 274 of the Companies Act, 1956.
g. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, subject to para 4
above, give the information required by the Companies Act, 1956 in the
manner so required and give a true and fair view; in conformity with
the accounting principles generally accepted in India:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2010
b. in the case of the Profit and Loss Account, of the profit for the
year ended on that date. and
c. in the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT Re: Dynamic Industries Limited
Referred to in paragraph 3 of our report of even date,
1 (a) The Company is in the process of compiling fixed assets records
to show full particulars, including quantitative details and situation
of fixed assets.
(b) We were informed that all major items of fixed assets were
physically verified by the Management at the end of the year and that
no discrepancy was noticed on such verification, which on account of
proper records being still under compilation, could not be verified.
(c) The Company has not disposed of any substantial part of its fixed
assets during the year as would affect its going concern status.
2 (a) In our opinion, physical verification of inventory has been
conducted by the management at reasonable inter- vals.
(b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) On the basis of our examination of records of inventory, in our
opinion, the Company is maintaining proper records of ihventory. No
material discrepancy was noticed on physical verification of the
inventory.
3 (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
u/s.301 of the Companies Act, 1956. Accordingly the clauses 4(iii)(b),
4(iii)(c) and 4(iii)(d) of the report are not applicable.
(b) (i) As per the information and explanations given to us, the
Company has taken unsecured loan from one party covered in the register
maintained u/s.301 of the Companies Act, 1956. The balance outstanding
on account of these loans as at the end of the year was Rs. 20.24 lacs
and the maximum amount involved during the year were Rs. 30.51 lacs.
(ii) The terms and conditions of the above loans are prima facie not
prejudicial to the interest of the Com- pany.
(iii) As per the information and explanations given to us, repayment of
principal amounts as well as interest have been regular during the
year, whenever it is fallen due for repayment.
4 In our opinion and according to information and explanation given to
us; there is adequate internal control system commensurate with the
size of the Company and the nature of the business, with regard to
purchase of inventory and fixed assets, and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in the
internal controls.
5 (a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or
arrangement referred to in Section 301 of the Act have been entered in
the register required to be maintained under that Section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursu- ance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 5,00,000/- in
respect of any party during the period have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time except for items stated to be of specialized nature,
where no comparison is possible.
6 In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of Section 58A, 58AA or other relevant provisions of
the act.
7 In our opinion, the company has an adequate internal audit system
commensurate with the size and the nature of its business;
8 On the basis of examination of records, in our opinion, the company
has not updated and maintained cost records which has been prescribed
under section 209(1 )(d) of the Companies Act, 1956.
9 (a) According to the information given to us, the Company is
generally regular in depositing with appropriate
authorities undisputed statutory dues and the Company had no arrears of
such outstanding statutory dues as at 31st March, 2010 for a period
more than six months from the date they became payable.
(b) According to the information and explanations given to us, the
Company had no disputed outstanding statutory dues as at 31 st March,
2010 other than those stated below :
Particulars Amount Period to which Forum where
(Rs.) the amount relates dispute is
pending
Income Tax Act, 1961 1,12,820 2007-2008 Commissioner
of
Income Tax
(Appeals)
10 The Company does not have any accumulated losses as at 31st March,
2010 and it has not incurred any cash losses in the financial year
ended on that date or in the immediately preceding financial year.
11 According to the records of the company examined by us and on the
basis of information and explanations given to us, the company has not
defaulted in repayment of dues to any financial institution or bank or
debenture holders.
12 As per the information and explanations given to us, the Company has
not granted any loan or advance on the basis of security by way of
pledge of shares, debentures and other securities.
13 The provisions of any special statute applicable to Chit fund, Nidhi
or Mutual Benefit Funds/Societies are not applicable to the company.
14 According to the information and explanation given to us, the
company does not deal or trade in shares, securities, debentures and
other investments.
15 In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for loans taken by
others from banks and financial institutions during the year.
16 In our opinion and according to the information and explanations
given to us, the company has not obtained any term loans during the
year under review. Accordingly clause 4(xvi) of the order is not
applicable.
17 On the basis of an overall examination of the balance sheet of the
company in our opinion and according to the information and
explanations given to us, we report that company has not utilised any
funds raised on short term basis for long term investments.
18 The company has not made any preferential allotment to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956.
19 The Company has not issued any debentures during the period under
review.
20. The company has not raised any money by public issues during the
year under review.
21. According to the information and explanations given to us, no
fraud on or by the Company has .been noticed or reported during the
period under review.
FOR, G. K. CHOKSI & CO.
Firm Registration No. 101895W
Chartered Accountants
ROHIT K. CHOKSI
Place: Ahmedabad. Partner
Date :29th May, 2010 Membership No. 31103
Mar 31, 2009
1. We have audited the attached Balance Sheet of Dynamic Industries
Limited as at 31 st March, 2009 and Profit a| Loss Account and Cash
Flow Statement of the company for the year ended on that date annexed
thereto. The! financial statements are the responsibility of the
companys management. Our responsibility is to express an op| ion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standard require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statement are free of material misstatements. An audit
includes examining, on a test basis evidence supporting, the amount and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in tern of sub-section (4A) of
section 227 of the Companies Act, 1956, and on the basis of such checks
as we considered appropriate and according to information and
explanations given to us, we enclose in the Annexure a statement of the
matters specified in paragraph 4 and 5 of the said order.
4. Particular attention is drawn:
(i) Adhering to significant accounting policy, as referred to para (i)
of schedule -12 leave encashment payable of retirement has been
provided in the books based on computation made by the company and not
in accorcd ance with actuarial valuation. Thus, the provision made is
not in compliance with Accounting Standard 1 (Revised) "Employee
Benefits" issued by Institute of Chartered Accountants of India the
differential impact i not presently ascertained.
(ii) The company has not yet compiled the requisite information,
related to suppliers who have registered then selves under the Micro,
Small And Medium Enterprises Development Act, 2006. In the absence of
relevant information the requisite disclosures are not made in the
financial statements.
(iii>. Further to our comments in the Annexure referred at para 3
above, we report that:
a. we have obtained all the information and explanations, which, to
the best of our knowledge and belief, wen necessary for the purposes of
our audit.
b. In our opinion, subject to matters stated at para 4(i) and 4 (ii)
above and 1 (a),1 (b) and 8 of annexure to the auditors report below,
proper books of account have been kept by the Company as required by
law so far a appears from our examination of those books.
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agree ment with the books of account.
d. In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with the ac counting standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956, except pan
4(i) above regarding leave encashment payable at the time of retirement
in accordance with Accounting Standard -15.
e. On the basis of written representation received from the directors
of the company as at March 31 st, 2009 and taken on record by the board
of directors, we report that none of the directors is disqualified from
being appointed as director of company under clause (g) of sub-section
(1) of Section 274 of the Companies Act 1956.
g. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, subject to para 4
above, give the information required by the Companies Act, 1956 in the
manner so required and give a true and fair view; in conformity with
the accounting principles generally accepted it India:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2009
b. in the case of the Profit and Loss Account, of the profit for the
year ended on that date. and -
c. in the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT Re: Dynamic Industries Limited
Referred to in paragraph 3 of our report of even date,
1 (a) The Company is in the process of compiling fixed assets records
to show full particulars, including quantitative details and situation
of fixed assets.
(b) We were informed that all major items of fixed assets were
physically verified by the Management at the end of the year and that
no discrepancy was noticed on such verification, which on account of
proper records being still under compilation, could not be verified.
(c) The Company has not disposed of any substantial part of its fixed
assets during the year as would affect its going concern status.
2 (a) In our opinion, physical verification of inventory has been
conducted by the management at reasonable inter vals.
(b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) On the basis of our examination of records of inventory, in our
opinion, the Company is maintaining proper records of inventory. No
material discrepancy was noticed on physical verification of the
inventory.
3 (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
u/s.301 of the Companies Act, 1956. Accordingly the clauses 4(iii)(b),
4(iii)(c) and 4(iii)(d) of the report are not applicable.
(b) (i) As per the information and explanations given to us, the
Company has taken unsecured loan from two parties covered in the
register maintained u/s.301 of the Companies Act, 1956. The balance
outstanding on account of these loans as at the end of the year was Rs.
30.51 lacs and the maximum amount involved during the year were Rs.
36.71 lacs.
(ii) The terms and conditions of the above loans are prima facie not
prejudicial to the, interest of the Com- pany.
(iii) As per the information and explanations given to us, repayment of
principal amounts as well as interest have been regular during the
year, whenever it is fallen due for repayment.
4 In our opinion and according to information and explanation given to
us; there is adequate internal control system commensurate with the
size of the Company and the nature of the business, with regard to
purchase of inventory and fixed assets, and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in the
internal controls.
5 (a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangement referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that Section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursu- ance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act,1956 and exceeding the value of Rs.5,00,000/- in
respect of any party during the period have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time except for items stated to be of specialized nature,
where no comparison is possible.
6 In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of Section 58A, 58AA or other relevant provisions of
the act.
7 In our opinion, the company has an adequate internal audit system
commensurate with the size and the nature of its business;
8 On the basis of examination of records, in our opinion, the company
has not updated and maintained cost records which has been prescribed
under section 209(1 )(d) of the Companies Act, 1956.
9 (a) According to the information given to us, the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues and the Company had no arrears of such outstanding
statutory dues as at 31st March, 2009 for a period more than six months
from the date they became payable.
(b) According to the information and explanations given to us, the
Company had no disputed outstanding statu- tory dues as at 31 st March,
2009 other than those stated below:
Particulars Amount Period to which Forum where
(Rs.) the amount relates dispute is pending
Income Tax
Act, 1961 17,06,422 2002-2003 Income Tax Appellate
Tribunal
Commissioner of
income Tax
Act, 1961 59,32,963 2003-2004 Income Tax (Appeals)
10 The Company does not have any accumulated losses as at 31st March,
2009 and it has not incurred any cash losses in the financial year
ended on that date or in the immediately preceding financial year.
11 According to the records of the company examined by us and on the
basis of information and explanations given to us, the company has not
defaulted in repayment of dues to any financial institution or bank or
debenture holders.
12 As per the information and explanations given to us, the Company has
not granted any loan or advance on the basis of security by way of
pledge of shares, debentures and other securities.
13 The provisions of any special statute applicable to Chit fund, Nidhi
or Mutual Benefit Funds/Societies are not appli- cable to the company.
14 According to the information and explanation given to us, the
company does not deal or trade in shares, securities, debentures and
other investments.
15 In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for loans taken by
others from banks and financial institutions during the year.
16. In our opinion and according to the information and explanations
given to us, the company has not obtained any term loans during the
year under review. Accordingly clause 4(xvi) of the order is not
applicable.
17. On the basis of an overall examination of the balance sheet of the
company in our opinion and according to the information and
explanations given to us, we report that company has not utilised any
funds raised on short term basis for long term investments.
18 The company has not made any preferential allotment to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956.
19 The Company has not issued any debentures during the period under
review.
20. The company has not raised any money by public issues during the
year under review.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
period under review.
FOR, G. K. CHOKSI & CO.
Chartered Accountants
ROHIT K. CHOKSI
Place: Ahmedabad. Partner
Date : 30th June, 2009 Membership No. 31103