DYNACONS SYSTEMS AND SOLUTIONS LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
TO
THE MEMBERS OF
DYNACONS SYSTEMS & SOLUTIONS LIMITED
We have audited the attached Balance Sheet of DYNACONS SYSTEMS & SOLUTIONS
LIMITED as at 31st March, 2012, the related Profit and Loss Account and the
Cash Flow statement 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.
1. 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 misstatement. 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 the management as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
2. As required by the Companies (Auditor`s Report) Order, 2003, issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, and on the basis of such checks of the books and
records of the Company as considered appropriate and according to the
information and explanations given to us during the course of our audit, we
enclose in the Annexure hereto a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
3. Further to our comments in the Annexure referred to 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, 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) In our opinion, the Balance Sheet, Profit and Loss Account and the Cash
Flow statement dealt with by this report are prepared in compliance with
the Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956.
d) The Balance Sheet, Profit and Loss Account and the Cash Flow statement
dealt with by this report are in agreement with the books of account.
e) On the basis of written representations received from the directors of
the company, as on March 31, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on March
31, 2012, from being appointed as a director in terms of clause (g) of sub-
section (1) of Section 274 of the Companies Act, 1956 and
f) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts 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:
i. In the case of the Balance Sheet, of the state of affairs of the Company
as at March 31, 2012;
ii. In the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
iii. In the case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
For P. C. GHADIALI & CO.
Firm Regn. No.: 103132W
Chartered Accountants
C. K. PALAN
Place: Mumbai Partner
Dated: May 30, 2012 Membership No: 100741
ANNEXURE TO THE AUDITORS` REPORT TO THE MEMBERS OF DYNACONS SYSTEMS &
SOLUTIONS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2012:
(Referred to in paragraph (2) of our report of even date)
1. (a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The company has a regular programme of physical verification of fixed
assets, which in our opinion, is reasonable having regard to the size of
the company and the nature of its fixed assets. In accordance with such
programme, the management has physically verified fixed assets during the
year and no material discrepancies were noticed on such verification.
(c) The Company has not disposed of any substantial part of its fixed
assets so as to affect the going concern assumption.
2. (a) As explained to us, the stocks of equipment and components/spares
for maintenance and resale have been verified by the management during the
year at reasonable intervals. In our opinion, having regard to the nature
and location of stocks, the frequency of the physical verification is
reasonable.
(b) In our opinion and according to the information and explanations given
to us, the procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) In our opinion, the Company has maintained proper inventory records.
The discrepancies noticed between the physical stocks and book records were
not material and the same have been properly dealt with in the books of
account.
3. According to the information and explanations given to us , the Company
has neither granted nor taken any loans, secured or unsecured to or from
companies, firms or other parties listed in the register maintained under
Section 301 of the Companies Act, 1956. Accordingly, provisions of sub-
clauses (a), (b), (c), and (d) of clause 4(iii) of the order are not
applicable to the Company.
4. In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with the
size of the Company and the nature of its business for the purchase of
inventory, fixed assets and for the sale of goods and services.
5. (a) In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into the Register
maintained under Section 301 of the Companies Act, 1956, have been so
entered.
(b) On the basis of our examination of the books of account, the Company
has not entered into any transactions exceeding Rs. 5 Lacs in respect of
any party during the financial year that needs to be entered in the
Register maintained under Section 301 of the Companies Act, 1956.
6. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India, the
provisions of Section 58A and 58AA of the Companies Act, 1956, and the
rules framed there under are not applicable.
7. In our opinion the Company has an internal audit system commensurate
with the size and nature of its business.
8. According to the information and explanations given to us, the Central
Government has not prescribed the maintenance of cost records under Section
209(1)(d) of the Companies Act, 1956 for any of the products of the
Company.
9. According to the information and explanations given to us and records of
the Company examined by us in our opinion:
a. The Company is generally regular in depositing the undisputed statutory
dues including provident fund, income tax, sales tax as applicable with the
appropriate authorities during the year.
b. There are no undisputed dues payable in respect of income tax, wealth
tax, sales tax and customs duty and cess which have remained outstanding as
at 31 March 2012 for a period of more than six months from the date they
became payable.
10. The Company does not have any accumulated losses and has not incurred
any cash losses during the current financial year and the immediately
preceding financial year.
11. Based on the examination of the books of account and related records
and according to the information and explanations provided to us, the
Company has not defaulted in repayment of dues to the banks and financial
Institutions.
12. The Company has not granted loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund, nidhi, mutual benefit fund or a
society.
14. In our opinion and according to the information and explanations given
to us, the Company is not dealing or trading in shares, securities,
debentures and other investments. Therefore the provisions of clause 4(xiv)
of the Companies (Auditor`s Report) Order, 2003, are not applicable to the
Company.
15. According to the information and explanations given to us, the Company
has not given any guarantee for loans taken by others from bank or
Financial Institutions.
16. According to the information and explanations given to us, the working
capital term loans raised during the year were used for the purpose for
which they were raised.
17. Based on the examination of the books of account and related records
and according to the information and explanations provided to us, the
Company has not utilized funds raised on short-term basis for long term
investment and vice versa.
18. The Company has not made any preferential allotment of shares during
the year.
19. During the year covered by our audit report the Company has not issued
any debentures.
20. The Company has not raised any money by public issues during the year.
21. According to the information and explanations given to us, no fraud on
or by the Company has been noticed or reported during the year.
For P. C. GHADIALI & CO.
Firm Regn. No.: 103132W
Chartered Accountants
C. K. PALAN
Place: Mumbai Partner
Dated: May 30, 2012 Membership No: 100741 |