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Notes to Accounts of Dynacons Systems & Solutions Ltd.
Mar 31, 2025
1.2.15. Provisions (other than employee benefits) and contingencies
A provision is recognised when the Company has a present obligation as a result of past events and it is probable
that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be
made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based
on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each Balance
Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the note 32.7
Contingent assets are not recognised in the financial statements.
Onerous contracts
A contract is considered to be onerous when the expected economic benefits to be derived by the Company from
the contract are lower than the unavoidable cost of meeting its obligations under the contract.
The provision for an onerous contract is measured at the present value of the lower of the expected cost of terminating
the contract and the expected net cost of continuing with the contract. Before such a provision is made, the Company
recognises any impairment loss on the assets associated with that contract.
1.2.16. Leases
Lease Identification
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period
of time in exchange for consideration.
The Company''s lease asset primarily consist of lease for buildings. The Company assesses whether a contract
contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to
control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract
conveys the right to control the use of an identified asset, the Company assesses whether:
(i) the contract involves the use of an identified asset
(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease
and
(iii) the Company has the right to direct the use of the asset.
Lessee Accounting
Ind AS 116 âLeasesâ sets out the principles for the recognition, measurement, presentation and disclosure of leases
for both lessees and lessors.
Recognition
The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term and
lease liability at the lease commencement date.
Measurement of ROU Asset
The cost of the right of- use asset measured at inception comprises of the amount of the initial measurement of the
lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives
received, plus any initial direct costs incurred.
Subsequent Measurement of ROU Asset
The right-of-use assets is subsequently measured at cost less any accumulated depreciation and accumulated
impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of use assets is
depreciated using the straight-line method from the commencement date over the lease term life of right-of-use
asset.
Measurement of Lease Liability
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease payments include fixed payments (including in substance
fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and
amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price
of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating
the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do
not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in
the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease
payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest
rate implicit in the lease is not readily determinable.
Subsequent Measurement of Lease Liability
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting
from a change in an index or rate used to determine such lease payments) or a change in the assessment of an
option to purchase the underlying asset.
Short-Term and Low-Value Leases
The company has elected not to recognize assets and liabilities for (a) short- term leases (for a period of twelve
months or less) and (b) leases of low value assets. For these short-term and low value leases, the Company
recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.
Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company
changes its assessment if whether it will exercise an extension or a termination option.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been
classified as financing cash flows.
Finance Lease
Leases under which the company assumes substantially all the risks and rewards of ownership are classified as
finance leases. The lower of fair value of asset and present value of minimum lease rentals is capitalized as fixed
assets with corresponding amount shown as lease liability. The principle component in the lease rentals is adjusted
against the lease liability and interest component is charged to profit and loss account.
Company as a lessor
At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance
lease.
The Company recognises lease payments received under operating leases as income on a straight-line basis over
the lease term.
In case of a finance lease, finance income is recognised over the lease term based on a pattern reflecting a constant
periodic rate of return on the lessor''s net investment in the lease.
In the case company has entered into lease agreements for IT hardware & same are deployed to customers under
service contracts & under the service contracts the customers have full control and use of the assets during the term
and are entitled to acquire the assets at the end of the term, the Company derecognises the Right-of-Use assets as
Financial Assets, The corresponding lease liabilities remain recognized
1.2.17. Financial instruments
Financial assets (other than trade receivables) and financial liabilities are recognized when the Company becomes
a party to the contractual provisions of the financial instrument. All financial assets and financial liabilities contracts
are initially measured at fair value adjusted for transaction costs, and where such price is different from fair value, at
fair value. Trade receivables are recognized at their transaction price as the same do not contain significant financing
component.
Transaction costs that are attributable to the acquisition or issue of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from, as the case
may be, the fair value of such financial assets or liabilities on initial recognition. T ransaction costs directly attributable to
the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised in profit or loss.
Classification and subsequent measurement of financial assets
For the purpose of subsequent measurement financial assets are classified and measured based on the entity''s
business model for managing the financial asset and the contractual cash flow characteristics of the financial asset at:
a. Amortized cost
b. Fair Value Through Other Comprehensive Income (FVTOCI) or
c. Fair Value Through Profit and Loss (FVTPL)
All financial assets are reviewed for impairment at least at each reporting date to identify whether there is any
objective evidence that a financial asset or a Company of financial assets is impaired. Different criteria to determine
impairment are applied for each category of financial assets, which are described below.
Financial assets at amortized Cost
Financial assets at amortized Cost Includes assets that are held within a business model where the objective is to
hold the financial assets to collect contractual cash flows and the contractual terms gives rise on specified dates to
cash flows that are solely payments of principal and interest on the principal amount outstanding.
These assets are measured subsequently at amortized cost using the effective interest method. The loss allowance
at each reporting period is evaluated based on the expected credit losses for next 12 months and credit risk exposure.
The Company shall also measure the loss allowance for a financial instrument at an amount equal to the lifetime
expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition.
Financial assets at Fair Value Through Other Comprehensive Income (FVTOCI)
Includes assets that are held within a business model where the objective is both collecting contractual cash flows
and selling financial assets along with the contractual terms giving rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding. At initial application of Ind As 109,
the Company, based on its assessment, makes an irrevocable election to present in other comprehensive income
the changes in the fair value of an investment in an equity instrument that is not held for trading. These selections
are made on an instrument-by- instrument (i.e., share-by-share) basis. If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, impairment gains or
losses and foreign exchange gains and losses, are recognized in other comprehensive income. There is no recycling
of the amounts from OCI to profit or loss, even on sale of investment. The dividends from such instruments are
recognized in statement of profit and loss.
The fair value of financial assets in this category are determined by reference to active market transactions or using
a valuation technique where no active market exists. The loss allowance at each reporting period is evaluated based
on the expected credit losses for next 12 months and credit risk exposure. The Company shall also measure the loss
allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that
financial instrument has increased significantly since initial recognition. The loss allowance shall be recognized in
other comprehensive income and shall not reduce the carrying amount of the financial asset in the balance sheet.
Financial assets at Fair Value Through Profit and Loss (FVTPL)
Financial assets at FVTPL include financial assets that are designated at FVTPL upon initial recognition and financial
assets that are not measured at amortized cost or at fair value through other comprehensive income. All derivative
financial instruments fall into this category, except for those designated and effective as hedging instruments, for
which the hedge accounting requirements apply. Assets in this category are measured at fair value with gains or
losses recognized in profit or loss. The fair value of financial assets in this category are determined by reference to
active market transactions or using a valuation technique where no active market exists.
The loss allowance at each reporting period is evaluated based on the expected credit losses for next 12 months and
credit risk exposure. The Company shall also measure the loss allowance for a financial instrument at an amount
equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly
since initial recognition. The loss allowance shall be recognized in profit and loss.
1.2.18. Impairment
a) Impairment of financial instruments
The Company recognises loss allowances for expected credit losses on:
Financial assets measured at amortised cost;
At each reporting date, the Company assesses whether financial assets are carried at amortised cost. A financial
asset is ''credit-impaired'' when one or more events that have a detrimental impact on the estimated future cash flows
of the financial asset have occurred.
The Company measures loss allowances at an amount equal to lifetime expected credit losses, except for the
following, which are measured as 12 month expected credit losses:
- debt securities that are determined to have low credit risk at the reporting date; and
- other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected
life of the financial instrument) has not increased significantly since initial recognition.
Loss allowances for trade receivables are always measured at an amount equal to lifetime expected credit losses.
12-month expected credit losses are the portion of expected credit losses that result from default events that are
possible within 12 months after the reporting date (or a shorter period if the expected life of the instrument is less
than 12 months).
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and
when estimating expected credit losses, the Company considers reasonable and supportable information that is
relevant and available without undue cost or effort. This includes both quantitative and qualitative information and
analysis, based on the Company''s historical experience and informed credit assessment and including forward¬
looking information.
Measurement of expected credit losses
Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured as the
present value of all cash shortfalls (i.e. the difference between the cash flows due to the Company in accordance
with the contract and the cash flows that the Company expects to receive).
Presentation of allowance for expected credit losses in the balance sheet
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of
the assets.
Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no
realistic prospect of recovery. This is generally the case when the Company determines that the debtor does not
have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the
write-off.
b) Impairment of non-financial assets
The Company''s non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting
date to determine whether there is any indication of impairment. If any such indication exists, then the asset''s
recoverable amount is estimated.
For impairment testing, assets that do not generate independent cash inflows are grouped together into cash¬
generating units (CGUs). Each CGU represents the smallest group of assets that generates cash inflows that are
largely independent of the cash inflows of other assets or CGUs.
The recoverable amount of a CGU (or an individual asset) is the higher of its value in use and its fair value less costs
to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the CGU
(or the asset).
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its estimated recoverable
amount. Impairment losses are recognised in the standalone statement of profit and loss. Impairment loss recognised
in respect of a CGU is allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then
to reduce the carrying amounts of the other assets of the CGU (or group of CGUs) on a pro rata basis.
1.2.19. Share based payment transactions:
Employee Stock Option Plans (âESOPsâ):
The fair value of options determined at the grant date is recognized as an employee expense on a straight line
basis (on the basis of multiple vesting of options granted), with a corresponding increase in other equity under
âEmployee Stock Options Outstanding accountâ, over the vesting period of the grant, where the employee becomes
entitled to the options. At the end of each reporting period, the Company revises its estimate of the number of
equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in the
Statement of Profit and Loss such that the cumulative expenses reflects the revised estimate, with a corresponding
adjustment to the âEmployee Stock Options Outstanding accountâ.
Stock Options are granted to eligible employees in accordance with âDynacons - Employees Stock Option Plan 2020â
(ESOP 2020), as approved by the Shareholders in accordance with the SEBI (Share Based Employee Benefits)
Regulations, 2014 which was amended by the Board of Directors of the Company to align with the provisions of the
SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.
Under Ind AS 102 on Share based Payment, the cost of stock options is recognised based on the fair value of stock
options as on the grant date.
1.2.20. Earnings per share
Basic earnings per equity share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding
during the period. The weighted average number of equity shares outstanding during the period is adjusted for
events including a bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse
share split (consolidation of shares). In this scenario, the number of equity shares outstanding increases without
an increase in resources due to which the number of equity shares outstanding before the event is adjusted for the
proportionate change in the number of equity shares outstanding as if the event had occurred at the beginning of the
earliest period reported.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects
of all dilutive potential equity shares.
15.4 The Company has allotted 12,200 equity shares of face value '' 10 each on January 03, 2025, to the eligible employees
at an exercise price of '' 10 per share as per the ''Dynacons - Employees Stock Option Plan 2020'' (''ESOP - 2020'')
15.5 As per records of the company, including its register of shareholders/members and other declarations received from
shareholders regarding beneficial interest, the above shareholding represents the both legal and beneficial ownership of
shares.
15.6 The company has only one class of equity shares having a par value of '' 10 per share. Each shareholder is eligible for
one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets
of the company in proportion to their shareholdings.
15.7 During the 5 years immediately preceding the balance sheet date, there were no equity shares allotted as fully paid up
pursuant to contract without payment being received in cash, no bonus shares were issued and there was no buy-back
of equity shares of the Company.
15.8 The Company declares and pays dividends in Indian Rupees. The Board of Directors in their meeting held on August
12,2024, declared an interim dividend of '' 0.50/- per share on the nominal value of ?10/-each and paid to all the eligible
shareholders as at August 23, 2024. The interim dividend paid is considered as the final dividend for the financial year
ended 31st March, 2025.
15.9 Shares reserved for issue under option
For details of shares reserved for issue and shares issued under the Employee Stock Option Plan (ESOP) of the Company,
refer note 32.3. These options are granted to the employees subject to cancellation under circumstance of his cessation
of employment with the Company on or before the vesting date.
32.2. EMPLOYEE BENEFIT OBLIGATIONS
Defined benefit plans - Gratuity:
Gratuity is payable to all the members at the rate of 15 days salary for each year of service. In accordance with applicable
Indian laws, the Company provides for gratuity, a defined benefit retirement plan (âthe Gratuity Planâ) covering eligible
employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion
of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn
salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the
reporting date.
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant. The sensitivity analysis
presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that
the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been
calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied
in calculating the projected benefit obligation as recognised in the balance sheet. There was no change in the methods
and assumptions used in preparing the sensitivity analysis from prior years.
Defined contribution plans
The Company also has certain defined contribution plans. Contributions are made to provident fund in India for employees
at the rate 12% of basic salary as per regulations. The contributions are made to registered provident fund administered
by the government. The obligations of the Company is limited to the amount contributed and it has no further contractual
nor any constructive obligation. Employer''s contribution to Provident Fund during the year is 139.05 Lakh (P.Y. 126.53
Lakhs)
32.3. Employee Stock Option Plan
The Company had Dynacons - Employees Stock Option Plan 2020 (ESOP - 2020) which provided for the grant of
equity shares of the Company to the eligible employees of the Company. The Board of Directors recommended the
establishment of the ESOP 2020 on September 03, 2020 and shareholders approved the recommendations of the
Board of Directors in Annual General Meeting held on September 30, 2020. ESOP - 2020 was further amended by the
Nomination and Remuneration Committee and Board of Directors of the Company at their meetings held on March 10,
2022 in accordance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 (SEBI SBEB
and Sweat Equity Regulations). The maximum aggregate number of shares that may be awarded on the grant of stock
options under ESOP 2020 is 15,00,000 equity shares. Under ESOP 2020, the Company had approved grant vide its
Nomination and Remuneration committee meeting held on August 10, 2022 & January 09,2025 under ESOP 2020 details
of which are tabulated as Grant I & Grant II below. As per the plan, option granted under ESOP- 2020 would vest over a
period of 1 year to 2 years from the date of grant of such options. The Plan is Equity Settled Plan.
ii) Fair Value Measurements (Ind AS 113):
Fair value measurement hierarchy
The Company records certain financial assets and financial liabilities at fair value on a recurring basis. The Company
determines fair values based on the price it would receive to sell an asset or pay to transfer a liability in an orderly
transaction between market participants at the measurement date and in the principal or most advantageous market
for that asset or liability.
The Company holds certain fixed income investments and other financial assets, which must be measured using the
fair value hierarchy and related valuation methodologies. The guidance specifies a hierarchy of valuation techniques
based on whether the inputs to each measurement are observable or unobservable. Observable inputs reflect
market data obtained from independent sources, while unobservable inputs reflect the Company''s assumptions
about current market conditions. The fair value hierarchy also requires an entity to maximize the use of observable
inputs and minimize the use of unobservable inputs when measuring fair value.
Financial assets and Financial liabilities measured at fair value in the balance sheet are grouped into three Levels of
fair value hierarchy. These levels are based on the observability of significant inputs to the measurement, as follows:
> Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities
> Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level
1 inputs; and
> Level 3: Unobservable inputs for the asset or liability.
The following table shows the Levels within the hierarchy of financial and non-financial assets and liabilities measured
at fair value on a recurring basis at 31st March 2025 and 31st March 2024,:
Loans, cash and bank balances, trade receivables, other financial assets, trade payables, and other financial liabilities have
fair values that approximate to their carrying amounts due to their short-term nature.
32.9. Nature and extent of risks arising from financial instruments and respective financial risk management objectives
and policies
The Company''s principal financial liabilities comprise of loans and borrowings, trade and other payables, and financial
guarantee contracts. The main purpose of these financial liabilities is to finance the Company''s operations and to provide
guarantees to support its and group companies'' operations. The Company''s principal financial assets include loans, trade
and other receivables, investments, cash and short-term deposits that derive directly from its operations. The Company
also enters into derivative transactions to hedge and holds short term investments. The Company is exposed to market
risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The
Company''s senior management is supported by the Group T reasury Team that advises on financial risks and the appropriate
financial risk governance framework in accordance with the Company''s policies and risk objectives. All derivative activities
for risk management purposes are carried out by Group Treasury Team that have the appropriate skills, experience
and supervision. It is the Group''s policy that no trading in derivatives for speculative purposes may be undertaken.
The Board of Directors review and agree on policies for managing each of these risks, which are summarized below:
a) Credit risk
Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed
to this risk for various financial instruments, for example trade receivables, investment in mutual funds etc.
Trade and other receivables
Customer credit is managed by each business unit subject to the Company''s established policies, procedures and
control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on
90 to 120 days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding
customer receivables are regularly monitored.
The Company measures the expected credit loss of trade receivables based on historical trend, industry practices
and the business environment in which the entity operates. Loss rates are based on actual credit loss experience
and past trends.
The Company continuously monitors defaults of customers and other counterparties, identified either individually or
by the Company, and incorporates this information into its credit risk controls. The Company''s policy is to transact
only with counterparties who are highly creditworthy which are assessed based on internal due diligence parameters.
In respect of trade receivables, the Company is not exposed to any significant credit risk exposure to any single
counterparty or any group of counterparties having similar characteristics. Trade receivables consist of a large
number of customers in various geographical areas. Based on historical information about customer default rates
management consider the credit quality of trade receivables that are not past due or impaired to be good.
Other financial assets
The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments in mutual
funds. The Company has diversified portfolio of investment with various number of counterparties which have
secure credit ratings hence the risk is reduced. Individual risk limits are set for each counterparty based on financial
position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by
the Management of the Company.
b) Liquidity risk
Liquidity risk is that the Company might be unable to meet its obligations. The Company manages its liquidity needs
by monitoring scheduled debt servicing payments for long-term financial liabilities as well as forecast cash inflows
and outflows due in day-to-day business. The data used for analysing these cash flows is consistent with that used
in the contractual maturity analysis below. Liquidity needs are monitored in various time bands, on a day-to-day and
week-to week basis, as well as on a monthly, quarterly, and yearly basis depending on the business needs. Net cash
requirements are compared to available borrowing facilities in order to determine headroom or any shortfalls. This
analysis shows that available borrowing facilities are expected to be sufficient over the lookout period.
Liquidity risk is managed by Company through effective fund management. The Company''s principal sources
of liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from operations. The
Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated
from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low.
The Company considers expected cash flows from financial assets in assessing and managing liquidity risk, in
particular its cash resources and trade receivables. The Company''s existing cash resources and trade receivables
significantly exceed the current cash outflow requirements. Cash flows from trade receivables are all contractually
due within 90-120 days based on the credit period. The Company''s objective is to maintain a balance between
c) Market risk
The Company is exposed to market risk through its use of financial instruments and specifically to currency risk,
interest rate risk and certain other price risks, which result from both its operating and investing activities.
Foreign currency risk
Most of the Company''s transactions are carried out in Indian rupees. Exposures to currency exchange rates arise
from the Company''s overseas sales and purchases, which are primarily denominated in US dollars (USD)
To mitigate the Company''s exposure to foreign currency risk, cash flows are continuously monitored.
Foreign currency denominated financial assets and financial liabilities which expose the Company to currency risk
are disclosed below. The amounts shown are those reported to key management translated at the closing rate: -
Sensitivity analysis
The following table details the Company''s sensitivity to a 5% increase and decrease in the Rupee against the relevant
foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management
personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates.
This is mainly attributable to the net exposure outstanding on receivables or payables in the Company at the end
of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary
items and adjusts their translation at the period end for a 5% charge in foreign currency rate. This analysis assumes
that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and
purchases. In cases where the related foreign exchange fluctuation is capitalised to fixed assets or recognised
directly in reserves, the impact indicated below may affect the Company''s income statement over the remaining life
of the related fixed assets or the remaining tenure of the borrowing respectively.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates are
managed by borrowing at fixed interest rates. During the year Company did not have any floating rate borrowings.
The Company''s investments in term deposits (i.e. certificates of deposits) with banks are at fixed interest rate and
therefore do not expose the company to significant interest rate risk.
32.13. COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES:
Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies
(Restriction on number of Layers) Rules, 2017
32.14. UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM
a) During the year, no funds have been advanced or loaned or invested (either from borrowed funds or share premium
or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the intermediary shall,
whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Company ("Ultimately Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
b) During the year, no funds have been received by the Company from any persons or entities, including foreign entities
("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company, shall,
whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
32.17. The management have neither come across any instance of fraud on or by the Company, noticed or reported during
the financial year.
32.18. The Company does not hold any benami property and no proceedings have been initiated or pending against the
company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules
made thereunder.
32.19. There are no charges or satisfaction yet to be registered with Registrar of companies (ROC).
32.20. The Company did not have any transactions which had not been recorded in the books of accounts that had been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as,
search or survey or any other relevant provisions of the Income Tax Act, 1961).
32.21. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the
Company.
As per our report of even date attached For and on behalf of the Board of Directors
For M S P & CO. Dynacons Systems & Solutions Ltd.
Chartered Accountants CIN No: L72200MH1995PLC093130
Firm Registration 107565W
Shirish Anjaria Parag Dalal
Chairman cum Managing Director Whole-time/Executive Director
DIN : 00444104 DIN :00409894
M. S. PARIKH Dharmesh Anjaria Pooja Patwa
Partner Whole-time/Executive Director & Company Secretary &
Membership No. 08684 Chief Financial Officer(CFO) Compliance Officer
DIN : 00445009 Membership No. A60986
Mumbai : May 24, 2025
Mar 31, 2024
8.3 Trade Receivables of '' 40,151.99 lakhs (as at 31st March, 2023: '' 30060.86 Lakhs) are hypothecated against working capital facilities from banks. (Refer note 20.1)
8.4 The carrying amount of the Trade Receivables are considered as a reasonable approximation of fair value as it is expected to be collected within twelve months
8.5 The Company''s exposure to credit and currency risks, and loss allowances related to trade receivables are disclosed in note 31.9
14.4 The Company has allotted 20,050 equity shares of face value '' 10 each on March 29, 2024, to the eligible employees at an exercise price of '' 10 per share as per the ''Dynacons - Employees Stock Option Plan 2020'' (''ESOP - 2020'')
14.5 As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents the both legal and beneficial ownership of shares.
14.6 The company has only one class of equity shares having a par value of '' 10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company in proportion to their shareholdings.
14.7 During the 5 years immediately preceding the balance sheet date, there were no equity shares allotted as fully paid up pursuant to contract without payment being received in cash, no bonus shares were issued and there was no buy-back of equity shares of the Company.
14.8 The Company declares and pays dividends in Indian Rupees. The Board of Directors in their meeting held on August 24, 2023, declared an interim dividend of '' 0.50/- per share on the nominal value of '' 10/-each and paid to all the eligible shareholders as at August 24, 2023. The interim dividend paid is considered as the final dividend for the financial year ended 31st March, 2024.
14.9 Shares reserved for issue under option
For details of shares reserved for issue and shares issued under the Employee Stock Option Plan (ESOP) of the Company, refer note 31.3. These options are granted to the employees subject to cancellation under circumstance of his cessation of employment with the Company on or before the vesting date.
22.3 Disclosure of payable to vendors as defined under the âMicro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no overdue principal amounts/interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made during the year.
a) The Company is engaged in systems Integration which includes the sales of products and services as a complete solution
b) Disaggregate Revenue
The table below presents disaggregated revenues of the Company from contracts with customers by geography. The Company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of its revenues and cash flows are affected by industry, market and other economic factors.
31.2. EMPLOYEE BENEFIT OBLIGATIONS Defined benefit plans - Gratuity:
Gratuity is payable to all the members at the rate of 15 days salary for each year of service. In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit retirement plan (âthe Gratuity Planâ) covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date.
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet. There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
The Company also has certain defined contribution plans. Contributions are made to provident fund in India for employees at the rate 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligations of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. Employer''s contribution to Provident Fund during the year is 126.53 Lakh (Py. 104.30 Lakhs)
31.3. Employee Stock Option Plan
The Company had Dynacons - Employees Stock Option Plan 2020 (ESOP - 2020) which provided for the grant of equity shares of the Company to the eligible employees of the Company. The Board of Directors recommended the establishment of the ESOP 2020 on September 03, 2020 and shareholders approved the recommendations of the Board of Directors in Annual General Meeting held on September 30, 2020. ESOP- 2020 was further amended by the
Nomination and Remuneration Committee and Board of Directors of the Company at their meetings held on March 10, 2022 in accordance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 (SEBI SBEB and Sweat Equity Regulations). The maximum aggregate number of shares that may be awarded on the grant of stock options under ESOP 2020 is 15,00,000 equity shares. Under ESOP 2020, the Company had approved grant vide its Nomination and Remuneration committee meeting held on August 10, 2022 under ESOP 2020. As per the plan, option granted under ESOP- 2020 would vest over a period of 1 year to 2 years from the date of grant of such options. The Plan is Equity Settled Plan.
As per Para 4 of Ind AS 108 Operating Segments, when entity''s financial report contains both the consolidated financial statements of a parent that is within the scope of this Ind AS well as the parent''s standalone financial statements, segment information is required only in the consolidated financial statements. Hence segment information is disclosed as a part of consolidated financial statements for the year ended 31st March 2024.
31.7. Contingent Liabilitiesa) Claims against the Company not acknowledged as debts:
|
Particulars |
Period to which the amount relates |
Forum where the dispute is pending |
2024 (''/lakhs) |
2023 (''/lakhs) |
|
GST |
FY 2018-19 |
Appeal To Appellate Authority |
9.64 |
9.64 |
b) Guarantees given by the company''s bankers '' 8522.72 lakhs (previous year '' 4635.69 lakhs)31.8. Financial instruments A. Capital Management :
The Company manages its capital structure with a view to ensure that it will be able to continue as a going concern while maximizing the return to stakeholders through the optimization of the debt and equity balance.
The capital structure of the Company consists of net debt (borrowings as detailed in notes 14, 16 and 20) and total equity of the Company.
The Company''s management reviews the capital structure of the Company on an annual basis. As part of this review, the management considers the cost of capital and the risks associated with each class of capital.
For the purpose of computing debt to equity ratio, equity includes Equity Share Capital and Other Equity and Debt includes Long term borrowings, short term borrowings and current maturities of long-term borrowings.
ii) Fair Value Measurements (Ind AS 113):Fair value measurement hierarchy
The Company records certain financial assets and financial liabilities at fair value on a recurring basis. The Company determines fair values based on the price it would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability.
The Company holds certain fixed income investments and other financial assets, which must be measured using the fair value hierarchy and related valuation methodologies. The guidance specifies a hierarchy of valuation techniques based on whether the inputs to each measurement are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company''s assumptions about current market conditions. The fair value hierarchy also
Requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
Financial assets and Financial liabilities measured at fair value in the balance sheet are grouped into three Levels of fair value hierarchy. These levels are based on the observability of significant inputs to the measurement, as follows:
> Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities
> Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and
> Level 3: Unobservable inputs for the asset or liability.
The following table shows the Levels within the hierarchy of financial and non-financial assets and liabilities measured at fair value on a recurring basis at 31st March 2024 and 31st March 2023,:
Loans, cash and bank balances, trade receivables, other financial assets, trade payables, and other financial liabilities have fair values that approximate to their carrying amounts due to their short-term nature.
31.9. Nature and extent of risks arising from financial instruments and respective financial risk management objectives and policies
The Company''s principal financial liabilities comprise of loans and borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its and group companies'' operations. The Company''s principal financial assets include loans, trade and other receivables, investments, cash and short-term deposits that derive directly from its operations. The Company also enters into derivative transactions to hedge and holds short term investments. The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management is supported by the Group Treasury Team that advises on financial risks and the appropriate financial risk governance framework in accordance with the Company''s policies and risk objectives. All derivative activities for risk management purposes are carried out by Group Treasury Team that have the appropriate skills, experience and supervision. It is the Group''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors review and agree on policies for managing each of these risks, which are summarized below:
a) Credit risk
Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to this risk for various financial instruments, for example trade receivables, investment in mutual funds etc.
Customer credit is managed by each business unit subject to the Company''s established policies, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on 90 to 120 days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The Company does not hold collateral as security. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically.
The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends.
The Company continuously monitors defaults of customers and other counterparties, identified either individually or by the Company, and incorporates this information into its credit risk controls. The Company''s policy is to transact only with counterparties who are highly creditworthy which are assessed based on internal due diligence parameters. In respect
of trade receivables, the Company is not exposed to any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. Trade receivables consist of a large number of customers in various geographical areas. Based on historical information about customer default rates management consider the credit quality of trade receivables that are not past due or impaired to be good.
The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments in mutual funds. The Company has diversified portfolio of investment with various number of counter-parties which have secure credit ratings hence the risk is reduced. Individual risk limits are set for each counter-party based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the Management of the Company.
Liquidity risk is that the Company might be unable to meet its obligations. The Company manages its liquidity needs by monitoring scheduled debt servicing payments for long-term financial liabilities as well as forecast cash inflows and outflows due in day-to-day business. The data used for analysing these cash flows is consistent with that used in the contractual maturity analysis below. Liquidity needs are monitored in various time bands, on a day-to-day and week-to week basis, as well as on a monthly, quarterly, and yearly basis depending on the business needs. Net cash requirements are compared to available borrowing facilities in order to determine headroom or any shortfalls. This analysis shows that available borrowing facilities are expected to be sufficient over the lookout period.
Liquidity risk is managed by Company through effective fund management. The Company''s principal sources of liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from operations. The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low.
The Company considers expected cash flows from financial assets in assessing and managing liquidity risk, in particular its cash resources and trade receivables. The Company''s existing cash resources and trade receivables significantly exceed the current cash outflow requirements. Cash flows from trade receivables are all contractually due within 90-120 days based on the credit period. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, and short-term borrowings. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding.
The Company is exposed to market risk through its use of financial instruments and specifically to currency risk, interest rate risk and certain other price risks, which result from both its operating and investing activities.
Most of the Company''s transactions are carried out in Indian rupees. Exposures to currency exchange rates arise from the Company''s overseas sales and purchases, which are primarily denominated in US dollars (USD)
To mitigate the Company''s exposure to foreign currency risk, cash flows are continuously monitored.
The company has not entered in any forward contract for hedging or otherwise in respect of foreign currencies during the year, and there are no such contracts outstanding at the end of the year.
The following table details the Company''s sensitivity to a 5% increase and decrease in the Rupee against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the net exposure outstanding on receivables or payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% charge in foreign currency rate. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. In cases where the related foreign exchange fluctuation is capitalised to fixed assets or recognised directly in reserves, the impact indicated below may affect the Company''s income statement over the remaining life of the related fixed assets or the remaining tenure of the borrowing respectively.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates are managed by borrowing at fixed interest rates. During the year Company did not have any floating rate borrowings.
The Company''s investments in term deposits (i.e. certificates of deposits) with banks are at fixed interest rate and therefore do not expose the company to significant interest rate risk.
Interest rate sensitivity has been calculated assuming the borrowings outstanding at the reporting date have been outstanding for the entire reporting period.
31.10. (a) Advance(s) in the nature of Loan (Regulation 34 of Listing Obligations & Disclosure Requirements)
No Loans have been given to Subsidiaries during the year.
31.11. Lease Commitments Operating Lease
The company has lease contract for office premises. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the
use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognizes a right-of-use asset (âROUâ) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.
As a lessee, the Company determines the lease term as the non-cancelable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors, such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to company''s operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances.
Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities include these options when it is reasonably certain that they will be exercised.
The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right-of-use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.
31.13. COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES:
Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017
31.14. UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM
a) During the year, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimately Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
b) During the year, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company, shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
31.15. COMPLIANCE WITH APPROVED SCHEME(S) OF ARRANGEMENTS
Company has not prepared any Scheme of Arrangements in terms of sections 230 to 237 of the Companies Act, 2013.
31.17. The management have neither come across any instance of fraud on or by the Company, noticed or reported during the financial year.
31.18. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Mar 31, 2023
1. The Company has alloted 9,60,000 equity shares & 4,55,000 equity share of '' 10 each at a premium of '' 18 per share on a Preferential basis on September 1, 2022 & September 24,2022 respectively against the warrants converted by the holders.
2. As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents the both legal and beneficial ownership of shares.
3. The company has only one class of equity shares having a par value of '' 10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company in proportion to their shareholdings.
4. During the 5 years immediately preceding the balance sheet date, there were no equity shares allotted as fully paid up pursuant to contract without payment being received in cash, no bonus shares were issued and there was no buy-back of equity shares of the Company.
5. The Company declares and pays dividends in Indian Rupees. The Board of Directors in their meeting held on August 10, 2022, declared an interim dividend of '' 0.50/- per share on the nominal value of '' 10/-each and paid to all the eligible shareholders as at August 23, 2022. The interim dividend paid is considered as the final dividend for the financial year ended 31st March, 2023.
A preferential issue of 35,20,000 Warrants convertible into equivalent number of equity shares of ''10 each at a price of '' 28/- each (including premium of '' 18/- each) was approved by the board of directors on 03rd September 2020 for issuance to the promoter directors and Managing Director as per the provisions of SEBI (ICDR) Regulations and in accordance with the applicable provisions of the Companies Act, 2013. The preferential issue of Convertible warrants were approved by shareholders by in AGM held on dated 30th September, 2020. In pursuance of the above the company received '' 2,97,15,000/- towards 14,15,000 warrant at Rs 21 each . The above 14,15,000 warrants have been converted to equity shares of '' 10 each at premium of '' 18 each and allotted on preferential basis to the Promoter''s Group of the Company 9,60,000 warrants converted into equity shares in meeting held on September 01,2022 & 4,55,000 warrants converted into equity shares in meeting held on September 24, 2022 & in agreegate 14,15,000 warrant converted into equity shares.
Disclosure of payable to vendors as defined under the âMicro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no overdue principal amounts/interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made during the year.
a) The Company is engaged in systems Integration which includes the sales of products and services as a complete solution
b) Disaggregate Revenue
The table below presents disaggregated revenues of the Company from contracts with customers by geography. The Company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of its revenues and cash flows are affected by industry, market and other economic factors.
31.2. EMPLOYEE BENEFIT OBLIGATIONS Defined benefit plans - Gratuity:
Gratuity is payable to all the members at the rate of 15 days salary for each year of service. In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit retirement plan (âthe Gratuity Planâ) covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date.
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet. There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
The Company also has certain defined contribution plans. Contributions are made to provident fund in India for employees at the rate 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligations of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. Employer''s contribution to Provident Fund during the year is 104.30 Lakh (P.y. 95.47 Lakhs)
31.3. Employee Stock Option Plan
The Company had a Dynacons - Employees Stock Option Plan 2020 (ESOP - 2020) which provided for the grant of equity shares of the Company to the eligible employees of the Company. The Board of Directors recommended the establishment of the ESOP 2020 on September 03, 2020 and shareholders approved the recommendations of the Board of Directors in Annual General Meeting held on September 30, 2020. ESOP- 2020 was further amended by the Nomination and Remuneration Committee and Board of Directors of the Company at their meetings held on March 10, 2022 in accordance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 (SEBI SBEB and Sweat Equity Regulations). The maximum aggregate number of shares that may be awarded on the grant of stock options under ESOP 2020 is 15,00,000 equity shares. Under ESOP 2020, the Company had approved grant vide its Nomination and Remuneration committee meeting held on August 10, 2022 under ESOP 2020. As per the plan, option granted under ESOP- 2020 would vest over a period of 1 year to 2 years from the date of grant of such options. The Plan is Equity Settled Plan.
31.8. Financial instruments A. Capital Management :
The Company manages its capital structure with a view to ensure that it will be able to continue as a going concern while maximising the return to stakeholders through the optimization of the debt and equity balance.
The capital structure of the Company consists of net debt (borrowings as detailed in notes 14, 16 and 20) and total equity of the Company.
The Company''s management reviews the capital structure of the Company on an annual basis. As part of this review, the management considers the cost of capital and the risks associated with each class of capital.
Fair value measurement hierarchy
The Company records certain financial assets and financial liabilities at fair value on a recurring basis. The Company determines fair values based on the price it would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability.
The Company holds certain fixed income investments and other financial assets, which must be measured using the fair value hierarchy and related valuation methodologies. The guidance specifies a hierarchy of valuation techniques based on whether the inputs to each measurement are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company''s assumptions about current market conditions. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
Financial assets and Financial liabilities measured at fair value in the balance sheet are grouped into three Levels of fair value hierarchy. These levels are based on the observability of significant inputs to the measurement, as follows:
> Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities
> Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and
> Level 3: Unobservable inputs for the asset or liability.
The following table shows the Levels within the hierarchy of financial and non-financial assets and liabilities measured at fair value on a recurring basis at 31 March 2023 and 31 March 2022,:
There have been no transfers between levels during the period.
Investment in quoted equity instrument are valued based on the quoted prices available in the market as at the reporting date.
investments in Unquoted Equity Shares i.e Level 3 fair value measurement are valued at carrying cost since amounts are not materials. Investments in unquoted equity shares are made in banks as part of mandatory requirements for obtaining finances from the financing bank.
Loans, cash and bank balances, trade receivables, other financial assets, trade payables, and other financial liabilities have fair values that approximate to their carrying amounts due to their short-term nature.
31.9. Nature and extent of risks arising from financial instruments and respective financial risk management objectives and policies
The Company''s principal financial liabilities comprise of loans and borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its and group companies operations. The Company''s principal financial assets include loans, trade and other receivables, investments, cash and short-term deposits that derive directly from its operations. The Company also enters into derivative transactions to hedge and holds short term investments. The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management is supported by the Group Treasury Team that advises on financial risks and the appropriate financial risk governance framework in accordance with the Company''s policies and risk objectives. All derivative activities for risk management purposes are carried out by Group Treasury Team that have the appropriate skills, experience and supervision. It is the Group''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors review and agree on policies for managing each of these risks, which are summarized below:
a) Credit risk
Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to this risk for various financial instruments, for example trade receivables, investment in mutual funds etc.
Customer credit is managed by each business unit subject to the Company''s established policies, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on 90 to 120 days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The Company does not hold collateral as security. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically.
The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends.
The Company continuously monitors defaults of customers and other counterparties, identified either individually or by the Company, and incorporates this information into its credit risk controls. The Company''s policy is to transact only with counterparties who are highly creditworthy which are assessed based on internal due diligence parameters. In respect of trade receivables, the Company is not exposed to any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. Trade receivables consist of a large number of customers in various geographical areas. Based on historical information about customer default rates management consider the credit quality of trade receivables that are not past due or impaired to be good.
Few of the customers failed to pay the dues within the agreed terms. The Company is taking appropriate action to recover the amount. However, based on the Company''s accounting policy ? 13.68 Lakhs had been created as a expected credit loss in the books of accounts of the company for the year ended 31 March 2023.
The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments in mutual funds. The Company has diversified portfolio of investment with various number of counterparties which have secure credit ratings hence the risk is reduced. Individual risk limits are set for each counterparty based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the Management of the Company.
Liquidity risk is that the Company might be unable to meet its obligations. The Company manages its liquidity needs by monitoring scheduled debt servicing payments for long-term financial liabilities as well as forecast cash inflows and outflows due in day-to-day business. The data used for analysing these cash flows is consistent with that used in the contractual maturity analysis below. Liquidity needs are monitored in various time bands, on a day-to-day and week-to week basis, as well as on a monthly, quarterly, and yearly basis depending on the business needs. Net cash requirements are compared to available borrowing facilities in order to determine headroom or any shortfalls. This analysis shows that available borrowing facilities are expected to be sufficient over the lookout period.
Liquidity risk is managed by Company through effective fund management. The Company''s principal sources of liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from operations. The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low.
The Company considers expected cash flows from financial assets in assessing and managing liquidity risk, in particular its cash resources and trade receivables. The Company''s existing cash resources and trade receivables significantly exceed the current cash outflow requirements. Cash flows from trade receivables are all contractually due within 90-120 days based on the credit period. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, and short-term borrowings. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding.
The Company is exposed to market risk through its use of financial instruments and specifically to currency risk, interest rate risk and certain other price risks, which result from both its operating and investing activities.
Most of the Company''s transactions are carried out in Indian rupees. Exposures to currency exchange rates arise from the Company''s overseas sales and purchases, which are primarily denominated in US dollars (USD)
To mitigate the Company''s exposure to foreign currency risk, cash flows are continuously monitored.
The company has not entered in any forward contract for hedging or otherwise in respect of foreign currencies during the year, and there are no such contracts outstanding at the end of the year.
The following table details the Company''s sensitivity to a 5% increase and decrease in the Rupee against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the net exposure outstanding on receivables or payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% charge in foreign currency rate. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. In cases where the related foreign exchange fluctuation is capitalised to fixed assets or recognised directly in reserves, the impact indicated below may affect the Company''s income statement over the remaining life of the related fixed assets or the remaining tenure of the borrowing respectively.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates are managed by borrowing at fixed interest rates. During the year Company did not have any floating rate borrowings.
The Company''s investments in term deposits (i.e. certificates of deposits) with banks are at fixed interest rate and therefore do not expose the company to significant interest rate risk.
31.11. Lease Commitments Operating Lease
The company has lease contract for office premises and these lease contracts are cancellable-renewable for further period on mutually agreeable terms during the tenure of leases contracts.
Leases have lease terms between 2 and 5 years The Company''s obligations under its leases are secured by the lessor''s title to the leased assets. The Company has lease contracts that includes extension option, however the lease term in respect of such extension option is not defined in the contract.
The Company recognised a lease liability measured at the present value of the remaining lease payments. The right-of-use asset is recognised at its carrying amount as if the standard had been applied since the commencement of the lease, but discounted using the lessee''s incremental borrowing rate as at April 1, 2020. The principal portion of the lease payments have been disclosed under cash flow from financing activities. The lease payments for operating leases as per Ind AS 17 Leases, were earlier reported under cash flow from operating activities. The weighted average incremental borrowing rate of 12.00% has been applied to lease liabilities recognised in the balance sheet at the date of initial application.
31.13. COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES:
Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017
31.14. UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM
a) During the year, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimately Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
b) During the year, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company, shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
31.15. COMPLIANCE WITH APPROVED SCHEME(S) OF ARRANGEMENTS
Company has not prepared any Scheme of Arrangements in terms of sections 230 to 237 of the Companies Act, 2013.
31.17. The management have neither come across any instance of fraud on or by the Company, noticed or reported during the financial year.
31.18. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Mar 31, 2018
1. Company Overview
Dynacons Systems & Solutions Ltd. is an IT solutions company with global perspectives and is engaged in providing a comprehensive range of end-to-end solutions to customers. Dynacons has the technical expertise and the service delivery infrastructure to serve Customers at a level ol quality consistent with their expectations. Dynacons helps in the selection of The right technology and application that will yield the greatest return and build a business case for implementation based on lower Total cost of ownership and higher performance.
(I) charge has been created over property, plant and equipments of the company in regard to borrowings (Refer note 16.1)
(II) The Company has adopted carrying value as recognized in the financial statement as at 31st March 2016 measured as per Previous GAAP as its deemed cost. Accordingly, its Net Block as on 31st March. 2016 is its Gross Block under lnd AS. Break up of the said Gross block as at 1st April, 2016 is as under:
(i) the Company has made an irrevocable election of accounting policy as at the adoption date 01 st April 2016 to fair value investment in equity instrument through Other Comprehensive Income (âOCIâ).
(ii) Investments at fair value through OCI reflect investment in quoted equity securities
Inventories of Rs 1,380.78 lakhs (as at 31st March. 2017: Rs 919 32 lakhs and as at 1st April, 2016: Rs. 662.06 lakhs) are hypothecated against working capital facilities from banks (Refer note 20.1)
(I) Trade Receivables of Rs. 3,953.57 lakhs (as at 31st March, 2017: Rs. 2,84 9 46 lakhs and as at 1st April, 2016: Rs. 3,035 29 lakhs )are hypothecated against working capital facilities from barks. (Refer note 20.1)
(II) The carrying amount ol the Trade Receivables are considered as a reasonable approximation of fair value as it is expected to be collected within twelve months, hence no provision is made for Expected credit Losses
Deposits Accounts of Rs. 672.39 lakhs (As at 31st March. 2017 Rs. 556 97 and as at 1st April, 2016 Rs 480.49) pledged as margin morey deposit for facilities from Banks. (Refer Note 20.1)
Fixed Deposit of Rs. 200.14 lakhs (As at 31st March. 2017 Rs. 127.71 lakhs and as at 1st April, 2016 Rs. 130 79 lakhs) pledged as margin money deposit for facilities from Banks (Refer Note 20.1)
2.1 The details of Shareholders holding more than 5% shares :
2.2 The Company has alloted 530,000 equity shares ot Rs 10 each at a premium of Rs. 10 per share on a Preferential basis on Jan 3.2018 against the warrants converted by the holders.
2.3 As per records of the company, including its register of shareholders/members and olher declarations received from shareholders regarding beneficial interest, the above shareholding represents the both legal and beneficial ownership of shares.
2.4 The company has only one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of The company in proportion to their shareholdings.
2 5 During the 5 years immediately preceding the balance sheet date, there were no equity shares allotted as fully paid up pursuant to contract without payment being received in cash, no bonus shares were issued and there was no buy-back of equity shares of the Company.
3.1 Nature of Security & terms of Repayment of secured borrowing :
a) Term loans from banks are Secured by way of first mortgage / charge on The Plant & Machinery of the Company
b) Term loans from Other Parties are Secured by way of first mortgage / charge on the Vehicles of the Company
Working capital loans are secured by hypothecation af present and future stock, book debts, outstanding monies, receivables, claims, bills, maternal in transit., Fixed Deposits. Fixed Assets and personal guarantees of directors.
Note: Micro, Small and medium enterprises under the Micro, Small and Medium Enterprises Development Act. 2006 have been determined based on the information available with the Company and the required disclosure are given below
Note:
a) The Company is engaged in systems Integration which includes the sales of products and services as a complete solution
b) In accordance with IndAS 18 on âRevenueâ and Schedule Hi to the Companies Act, 2013, Sales for the pervious year ended 31st March 2017 and for the period 1st April to 30 June 2017 were reported net of Value Added Tax (VAT)/Sales Tax. Consequent to the introduction of Goods and Services Tax (GST) with effect from 1st July 2017, VAT/Sales Tax. Excise Duty etc. have been subsumed into GST and accordingly the same is not recognised as part of Sales as per the requirements of IndAS 18 With the change in structure of indirect taxes, expenses are also being reported net of taxes. Accordingly, Financial Statements for The year ended 31st March 2018 and in particular, absolute expenses, elements ol Working Capital (Inventories. Trade payable, other current assets/current liabilities etc.) and ratios in percentage of sales, are thus not comparable with the figures of the pervious year
3.2. Defined benefit plans-Gratuity:
Gratuity is payable to all the members at the rate of 15 days salary for each year of service. In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit retirement plan (âthe Gratuity Planâ)covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard lo The Gratuity Plan are determined by actuarial valuation on the reporting date.
The following table sets out the status of the Gratuity Plan and the amounts recognized in the financial statement:
The sensitivity analysis have been determined based on reasonably passable changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet. There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
3.3. Related Party Disclosures
a. The names of related parties and the nature of relationship are as under
(i) Entities in which Directors are interested S. P. Corporation Trigem Infosolutions Limited
(il) Key Managerial Personnel
a) Executive Director Shirish M Anjaria Parag J Dalai Dharmesh S. Anjaria
b) Non Executive Director Jitesh Jain
Dilip Parmanand Palicha Archana Phadke Viren Champakial Shah
c) Other than Directors
Ravishankar Singh (Company Secretary)
The transactions with the related parties are as under:
Notes :
Service transactions with related parties are made at armâs length price
3.4. Segment Information
The company operates in the single segment of System Integration and Services.
3.5. Contingent Liabilities
a) Claims against the Company not acknowledged as debts:
b) Guarantees given by the companyâs bankers 7 1500.61 lakhs (previous year 7 1016.07 lakhs]
3.6. Financial instruments
A. Capital Management:
The Company manages its capital structure with a view to ensure that il will be able to continue as a going concern while maximising the return to stakeholders through the optimization of the debt and equity balance
The capital structure of The Company consists of net debt (borrowings as detailed in notes 15. 19 and 21) and total equity of the Company
The Companyâs management reviews the capital structure of the Company on an annual basis. As part of this review, the management considers 1he cost of capital and the risks associated with each class of capital.
The gearing ratio at the end of the reporting period was as follows:
For the purpose of computing debt to equity ratio, equity includes Equity Share Capital and Other Equity and Debt includes Long term borrowings, short term borrowings and current maturities of long term borrowings.
ii) Fair Value Measurements (Ind AS 113):
Fair value measurement hierarchy
The Company records certain financial assets and financial liabilities at fair value on a recurring basis. The Company determines fair values based on the price it would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability
The Company holds certain fixed income investments and other financial assets, which must be measured using the fair value hierarchy and related valuation methodologies. The guidance specifies a hierarchy of valuation techniques based on whether the inputs to each measurement are observable or unobservable Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Companyâs assumptions about current market conditions. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize 1he use of unobservable inputs when measuring fair value.
Financial assets and Financial liabilities measured at fair value in The balance sheet are grouped into three Levels of fair value hierarchy. These levels are based on the observability of significant inputs to the measurement, as follows:
- Level 1: Quoted princes (unadjusted) in active markets for identical assets or liabilities.
- Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
- Level 3: Unobservable inputs for the asset or liability
The following table shows the Levels within the hierarchy of financial and non-financial assets and liabilities measured at fair value on a recurring basis at 31st March 2018, 31st March 2017, and 1st April 2016:
a) Quantitative disclosures fair value measurement hierarchy for assets as at the reporting date:
There have been no transfers between levels during the period.
Investment in quoted equity instrument are valued based on the quoted prices available in the market as at the reporting date
Investments in Unquoted Equity Shares i.e Level 3 fair value measurement are valued at carrying cost since amounts are not materials. Investments in unquoted equity shares are made in banks as part of mandatory requirements for obtaining finances from the financing bank.
The following tables shows a reconciliation from the opening balance to the closing balance for level 3 fair values:
Loans, cash and bank balances, trade receivables, other financial assets, trade payables, and other financial liabilities have fair values that approximate to their carrying amounts due to their short-term nature
3.7. Nature and extent of risks arising from financial instruments and respective financial risk management objectives and policies
The Companyâs principal financial liabilities comprise of loans and borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Companyâs operations and to provide guarantees to support its and group companies operations The Companyâs principal financial assets include loans, trade and other receivables, investments, cash and short-term deposits that derive directly from its operations. The Company also enters into derivative transactions to hedge and holds shod term investments The Company is exposed to market risk, credit risk and liquidity risk. The Companyâs senior management oversees the management of these risks. The Companyâs senior management is supported by the Group Treasury Team that advises on financial risks and the appropriate financial risk governance framework in accordance with the Companyâs policies and risk objectives. All derivative activities for risk management purposes are carried out by Group Treasury Team that have the appropriate skills, experience and supervision It is the Groupâs policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors review and agree on policies for managing each of these risks, which are summarized below:
a) Credit risk
Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to this risk for various financial instruments, for example trade receivables, investment in mutual funds etc.
Trade and other receivables
Customer credit is managed by each business unit subject to the Companyâs established policies, procedures and control relating to customer credit risk management. Trade receivables are noninterest bearing and are generally on 30 to 180 days credit term Credit limits are established for all customers based on internal rating cretin. Outstanding customer receivables are regularly monitored.
An impairment analysis is performed al each reporting date on an Individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The Company does not hold collateral as security. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically
The following table provides information about the exposure lo credit risk and Expected Credit Loss Allowance for trade and other receivables:
The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends.
The Company continuously monitors defaults of customers and other counterparties, identified either individually or by the Company, and incorporates this information into its credit risk controls. The Companyâs policy is to transact only with counterparties who are highly creditworthy which are assessed based on internal due diligence parameters In respect of trade receivables, the Company is not exposed to any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. Trade receivables consist of a large number of customers in various geographical areas Based on historical information about customer default rates management consider the credit quality of trade receivables that are not past due or impaired to be good.
Other financial assets
The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments in Debentures, Preference shares, mutual funds, derivative contracts and loan to subsidiary companies. The Company has diversified portfolio of investment with various number of counter parties which have secure credit ratings hence the risk is reduced. Individual risk limits are set for each counter party based on financial position credit rating and past experience Credit limits and concentration of exposures are actively monitored by the Management of the Company.
b) Liquidity risk
Liquidity risk is that the Company might be unable to meet its obligations. The Company manages its liquidity needs by monitoring scheduled debt servicing payments for long-term financial liabilities as well as forecast cash inflows and outflows due in day-to-day business. The data used for analysing these cash flows is consistent with that used in the contractual maturity analysis below. Liquidity needs are monitored in various time bands, on a day-to-day and week-to week basis, as well as on a monthly, quarterly, and yearly basis depending on the business needs Net cash requirements are compared to available borrowing facilities in order to determine headroom or any shortfalls. This analysis shows that available borrowing facilities are expected to be sufficient over the lookout period.
Liquidity risk is managed by Company through effective fund management. The Companyâs principal sources of liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from operations The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient to meet requirements. Accordingly, liquidity nsk is perceived to be low.
The Company considers expected cash flows from financial assets in assessing and managing liquidity risk, in particular its cash resources and trade receivables. The Companyâs existing cash resources and trade receivables significantly exceed The current cash outflow requirements. Cash flows from trade receivables are all contractually due within 30 - 180 days based on the credit period. The Companyâs objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, and short term borrowings. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low The Company has access to a sufficient variety of sources of funding
The Companyâs non-derivative financial liabilities have contractual maturities as summarised below:
c) Market risk
The Company is exposed to market risk through its use of financial instruments and specifically to currency risk, interest rate risk and certain other price risks, which result from both its operating and investing activities.
Foreign currency risk
Most of the Companyâs Transactions are carried out in Indian rupees. Exposures to currency exchange rates arise from the Companyâs overseas sales and purchases, which are primarily denominated in US dollars (USD).
To militate the Companyâs exposure to foreign currency risk, cash flows are continuously monitored.
Foreign currency denominated financial assets and financial liabilities which expose the Company lo currency risk are disclosed below The amounts shown are those reported to key management translated at the closing rate:-
The company has not entered in any forward contract for hedging or otherwise in respect of foreign currencies during the year, and there are no such contracts outstanding at the end of the year.
Sensitivity analysis
The following table details the Companyâs sensitivity to a 5% increase and decrease in the Rupee against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents managementâs assessment of the reasonably possible change in foreign exchange rates This is mainly attributable to the net exposure outstanding on receivables or payables in the Company at the end of (he reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts Their translation al The period end for a 5% charge in foreign currency rate This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of Forecast sales and purchases. In cases where the related foreign exchange fluctuation is capitalised to fixed assets or recognised directly in reserves, The impact indicated below may affect the Companyâs income statement over the remaining life of the related fixed assets or the remaining tenure of the borrowing respectively
Interest rate risk
Interest rate risk Is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companyâs exposure to the risk of changes in market interest rates are managed by borrowing at fixed interest rates During the year Company did not have any floating rate borrowings.
The Companyâs investments in term deposits {i.e. certificates of deposits) with banks, investments in preference shares, mutual funds and debentures are at fixed interest rate and therefore do not expose the company to significant interest rate risk
Interest rate sensitivity has been calculated assuming the borrowings outstanding at the reporting date have been outstanding for the entire reporting period
3.8. CSR Expenditure
The conditions stipulated for mandatory earmarking of amounts for Corporate Social Responsibility activities in the section 185 of The Companies Act. 2013 is not applicable to The Company.
3.9. (a) Advance(s) in the nature of Loan (Regulation 34 of Listing Obligations & Disclosure Requirements)
No Loans have been given to Subsidiaries during the year.
(b) Particulars of Loans, Guarantees or Investments covered under section 186(4) of the Companies Act, 2013
3.10. Lease Commitments Operating Lease
The company has taken office premises on lease under cancelable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee Rental payments under such leases are Rs. 68.82 lakhs (Previous year Rs. 56.24 (lakhs). The deposit paid in respect of the same is Rs. 30.02 Lakhs (as al 31st March, 2017: Rs. 26.51 lakhs, as al 1st April, 2016: Rs. 23.91 lakhs)
3.11. Transition to Ind AS
These are the Companyâs first financial statements prepared in accordance with Ind AS. The Company has adopted all the Ind AS and The adoption was carried out in accordance with Ind AS 101 - First time adoption of Indian Accounting Standards. The transition was carried out from Generally Accepted Accounting Principles In India (Indian GAAP) as prescribed under Section 133 of the Act. read with Rule 7 of the Companies (Accounts) Rules. 2014. which was the âPrevious GAAPâ,
The Significant Accounting Policies set out In Note No 2 have been applied in preparing the financial statements for the year ended 31st March 2018, 31st March 2017 and the opening Ind AS balance sheet on the date of transition i.e. 1 st April 2016.
In preparing its Ind AS Balance Sheet as at 1 st April 2016 and in presenting the comparative information for the year ended 31st March 2017, the Company has adjusted amounts previously reported in The financial statements prepared in accordance with Previous GAAP This note explains the principal adjustments made by the Company in restating its financial statements prepared in accordance with Previous GAAP and how the transition from Previous GAAP to Ind AS has affected The Companyâs financial position, financial performance and cash flows.
I. Explanation of transition to Ind AS
In preparing the financial statements, the Company has applied the below mentioned optional exemptions and mandatory exceptions.
A. Optional Exemptions availed
a) Deemed cost for property, plant and equipment, investment property and intangible assets
The Company has elected to measure all its properly, plant and equipment and intangible assets at the Previous GAAP carrying amount as its deemed cost on the date of transition to Ind AS.
b) Investments in Subsidiaries
The Company has elected Jo measure its investments in subsidiaries at The Previous GAAP carrying amount as its deemed cost on the dale of transition to Ind AS.
B Mandatory Exceptions
a) Estimates
On assessment of the estimates made under the Previous GAAP financial statements, The Company has concluded that there is no necessity to revise the estimates under Ind AS, as there is no objective evidence of an error in those estimates. However, estimates that were required under Ind AS but not required under Previous GAAP are made by the Company for The relevant reporting dates reflecting conditions existing as at that date.
b) Derecognition of financial assets and financial liabilities
Derecognition of financial assets and liabilities as required by Ind AS 109 is applied prospectively i.e. after the transition date
c) Classification and measurement of financial assets
Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on The date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at 1he date of transition if retrospective application is impracticable
Accordingly, the Company has determined the classification of financial assets based on tacts and circumstances that exist on the date of transition. Measurement of financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.
I. Notes to reconciliation:
A. Fair valuation of investments
All Investments except investments in group companies have been fair valued in accordance with Ind AS 109. Investments in debt securities are measured at amortised costs. Other investments are fair valued through proft or loss. Under Previous GAAP, current investments were carried at cost net of diminution in their value as at the Balance Sheet date. The long term investments were carried at cost net of permanent diminution, if any.
B. Trade receivables
Under previous GAAP, the Company had recognised provision on trade receivables based on The expectation of the Company
Under lnd AS The Company provides loss allowance on receivables based on the Expected Credit Loss (ECL) model which is measured following the âsimplified approachâ at an amount equal to the lifetime ECL at each reporting date.
The carrying amount of the Trade Receivables are considered as a reasonable approximation of fair value hence no provision is made for Expected credit Losses.
C. Deferred Tax
Under previous GAAP, deferred tax accounting was done using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period.
Under ind AS, accounting of deferred taxes is done using the Balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base.
D. Remeasurement of Defined benefits liabilities
Under previous GAAP the company recognised remeasurements of defined benefits plans under profit and loss. Under Ind AS, remeasurement of defined benefits plans are recognised in Other Comprehensive Income
E. Other Comprehensive Income
Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard enquires or permits otherwise Items of income and expense that are not recognised m profit or loss but are shown In The statement of profit and loss as other comprehensive incomeâ includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP
F. Others
Other adjustments on account of transition to Ind AS include reclassification of Property, Plant and Equipment (PPE) to Intangible asset as part of service concession arrangements, classification of Investment Property, fair valuation of deposits and effect of adjustments relating to revenue recognition.
G. The previous year Previous GAAP figures have been reclassified/regrouped to make them comparable with Ind AS presentation.
Mar 31, 2015
1. Segment Information
The company operates in the single segment of System Integration and
Services.
2. Lease Commitments
Operating Lease
The company has taken office premises on lease under cancelable
operating lease agreements that are renewable on a periodic basis at
the option of both the lessor and the lessee. Rental payments under
such leases are Rs. 19.26 lakhs (Previous year Rs. 14.23 lakhs).
3. Foreign Exchange Exposure:
The company has not entered in any forward contract for hedging or
otherwise in respect of foreign currencies during the year, and there
are no such contracts outstanding at the end of the year.
As of the Balance Sheet date, the Company has net foreign currency
exposure that are not hedged by a derivative instrument or otherwise,
amounting to Rs.25.55 lakhs (Previous year Rs. 24.57 lakhs).
4. Other Notes
a) In the opinion of the Board of Directors, Current Assets, Loans and
Advance have the value at which these are stated in the Balance Sheet,
if realised in the ordinary course of business and the provisions for
all known liabilities is adequate and not in excess of or less than the
amount reasonably necessary.
b) Previous year's figures have been regrouped/reclassified wherever
necessary to correspond with the current year's classification /
disclosure.
Mar 31, 2014
1. Company Overview
Dynacons Systems & Solutions Ltd. is an IT solutions company with
global perspectives and is engaged in providing a comprehensive range
of end-to-end solutions to customers. Dynacons has the technical
expertise and the service delivery infrastructure to serve Customers at
a level of quality consistent with their expectations. Dynacons helps
in the selection of the right technology and application that will
yield the greatest return and build a business case for implementation
based on lower Total cost of ownership and higher performance.
2. As per records of the company, including its register of
shareholders/members and other declarations received from shareholders
regarding beneficial interest, the above shareholding represents the
both legal and beneficial ownership of shares.
3. The company has only one class of equity shares having a par value
of 10 per share. Each shareholder is eligible for one vote per share
held. In the event of liquidation of the Company, holder of equity
shares will be entitled to receive remaining assets of the Company
after distribution of all preferential amount. The distribution will
be in proportionate to the number of equity shares held by the
shareholders.
4. No bonus shares have been issued to equity share holders in last
five years
5. No equity share shares been bought back in last five years.
6. Term loans from banks are Secured by way of first mortgage / charge
on the Plant & Machinery of the Company
7. Term loans from Other Parties are Secured by way of first mortgage /
charge on the Vehicles of the Company
8. Contingent Liabilities
a) Claims against the Company not acknowledged as debts: Nil
b) Guarantees given by the companyÂs bankers 473.83/- (previous year
258.48)
9. Segment Information
The company operates in the single segment of System Integration and
Services.
10. Lease Commitments
Operating Lease
The company has taken office premises on lease under cancelable
operating lease agreements that are renewable on a periodic basis at
the option of both the lessor and the lessee. Rental payments under
such leases are Rs. 14.23 (Previous year Rs. 12.74 ).
11. Foreign Exchange Exposure:
The company has not entered in any forward contract for hedging or
otherwise in respect of foreign currencies during the year, and there
are no such contracts outstanding at the end of the year.
As of the Balance Sheet date, the Company has net foreign currency
exposure that are not hedged by a derivative instrument or otherwise,
amounting to 24.57 (Previous year Rs. 22.30).
12. Other Notes
a) In the opinion of the Board of Directors, Current Assets, Loans and
Advance have the value at which these are stated in the Balance Sheet,
if realised in the ordinary course of business and the provisions for
all known liabilities is adequate and not in excess of or less than the
amount reasonably necessary.
b) Previous year''s figures have been regrouped / reclassified wherever
necessary to correspond with the current year''s classification /
disclosure.
Mar 31, 2013
Company Overview
Dynacons Systems & Solutions Ltd. is an IT solutions company with
global perspectives and is engaged in providing a comprehensive range
of end-to-end solutions to customers. Dynacons has the technical
expertise and the service delivery infrastructure to serve Customers at
a level of quality consistent with their expectations. Dynacons helps
in the selection of the right technology and application that will
yield the greatest return and build a business case for implementation
based on lower Total cost of ownership and higher performance.
1.1 Contingent Liabilities
a) Claims against the Company not acknowledged as debts: Nil
b) Guarantees given by the company''s bankers Rs. 258.48/- (previous year
Rs. 252.04)
1.2 Segment Information
The company operates in the single segment of System Integration and
Services.
1.3 Lease Commitments Operating Lease
The company has taken office premises on lease under cancelable
operating lease agreements that are renewable on a periodic basis at
the option of both the lessor and the lessee. Rental payments under
such leases are Rs. 12.74 (Previous year Rs. 7.34).
1.4 Foreign Exchange Exposure:
The company has not entered in any forward contract for hedging or
otherwise in respect of foreign currencies during the year, and there
are no such contracts outstanding at the end of the year.
As of the Balance Sheet date, the Company has net foreign currency
exposure that are not hedged by a derivative instrument or otherwise,
amounting to Rs. 22.30 (Previous year Rs. 22.25).
1.5 Other Notes
a) In the opinion of the Board of Directors, Current Assets, Loans and
Advance have the value at which these are stated in the Balance Sheet,
if realized in the ordinary course of business and the provisions for
all known liabilities is adequate and not in excess of or less than the
amount reasonably necessary.
b) Previous year''s figures have been regrouped / reclassified wherever
necessary to correspond with the current year''s classification /
disclosure.
Mar 31, 2012
Company Overview
Dynacons Systems & Solutions Ltd. is an IT solutions company with
global perspectives and is engaged in providing a comprehensive range
of end-to-end solutions to customers. Dynacons has the technical
expertise and the service delivery infrastructure to serve Customers at
a level of quality consistent with their expectations. Dynacons helps
in the selection of the right technology and application that will
yield the greatest return and build a business case for implementation
based on lower Total cost of ownership and higher performance.
Pursuant to the Scheme of Arrangement (the Scheme) entered into by the
Company with Dynacons Technologies Limited (DTL), the Marketing and
Distribution Business and Manufacturing Business of the Company was
transferred to DTL with effect from 1st April, 2009, the Appointed
Date.
1. SHARE CAPITAL
1.1 Pursuant to the Scheme of Arrangement the Equity Share Capital of
the Company has been reorganised in the year 2010-11
1.2 The face value of equity shares of the company has been
consolidated from Rs. 1 each to Rs. 10 each
1.3 As per records of the company, including its register of
shareholders/members and other declarations received from shareholders
regarding beneficial interest, the above shareholding represents the
both legal and beneficial ownership of shares.
1.4 The company has only one class of equity shares having a par value
of Rs. 10 per share. Each shareholder is eligible for one vote per
share held.
1.5 No bonus shares have been issued to equity share holders in last
five years
1.6 No equity share shares been bought back in last five years.
2. LONG TERM BORROWINGS
2.1 Term loans from banks are Secured by way of first mortgage/charge
on the Plant & Machinery of the Company
2.2 Term loans from Other Parties are Secured by way of first
mortgage/charge on the Vehicles of the Company
3. Short Term Borrowings
2.1 Working capital loans are secured by hypothecation of present and
future stock, book debts, outstanding monies, receivables, claims,
bills, material in transit and Fixed Assets.
4. Additional Information to the financial statements
4.1 Contingent Liabilities
a) Claims against the Company not acknowledged as debts: Nil
b) Guarantees given by the company's bankers Rs. 252.04/-
(previous year Rs. 219.82)
4.2 Segment Information
The company operates in the single segment of System Integration and
Services.
4.3 Related Party Disclosures
a. The names of related parties and the nature of relationship are as
under:
S. P. Corporation Firm in which Wholetime Directors
have substantial interest.
Shirish M. Anjaria Chairman and Managing Director
Parag J. Dalal Wholetime Director
Dharmesh S. Anjaria Wholetime Director
Trigem Infosolutions Limited Company in which Wholetime Directors
have substantial interest
Dynacons Technologies Limited Company in which Directors have
substantial interest
4.4 Lease Commitments
Operating Lease
The company has taken office premises on lease under cancelable
operating lease agreements that are renewable on a periodic basis at
the option of both the lessor and the lessee. Rental payments under
such leases are Rs. 7.34 (Previous year Rs. 3.15).
4.5 Foreign Exchange Exposure:
The company has not entered in any forward contract for hedging or
otherwise in respect of foreign currencies during the year, and there
are no such contracts outstanding at the end of the year.
As of the Balance Sheet date, the Company has net foreign currency
exposure that are not hedged by a derivative instrument or otherwise,
amounting to Rs. 22.25 (Previous year Rs. 8.24).
4.6 Other Notes
a) In the opinion of the Board of Directors, Current Assets, Loans and
Advance have the value at which these are stated in the Balance Sheet,
if realised in the ordinary course of business and the provisions for
all known liabilities is adequate and not in excess of or less than the
amount reasonably necessary.
b) The Revised Schedule VI has become effective from 1 April, 2011 for
the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in the financial
statements. Previous year's figures have been regrouped/reclassified
wherever necessary to correspond with the current year's
classification/disclosure.
Mar 31, 2011
Company Overview
Dynacons Systems & Solutions Ltd. is an IT solutions company with
global perspectives and is engaged in providing a comprehensive range
of end-to-end solutions to customers. Dynacons has the technical
expertise and the service delivery infrastructure to serve Customers at
a level of quality consistent with their expectations. Dynacons helps
in the selection of the right technology and application that will
yield the greatest return and build a business case for implementation
based on lower Total cost of ownership and higher performance.
1. Contingent Liabilities
a) Claims against the Company not acknowledged as debts: NIL
b) Guarantees given by the company's bankers Rs. 2,19,82,406/-
(previous year Rs 38,86,462/-)
2. SCHEME OF ARRANGEMENT
Pursuant to the Scheme of Arrangement (the Scheme) entered into by the
Company with Dynacons Technologies Limited (DTL), the Marketing and
Distribution Business and Manufacturing Business of the Company was
transferred to DTL with effect from 1st April, 2009, the Appointed
Date.
The said Scheme, under section 391 to 394 of the Companies Act, 1956,
has been approved by the Hon'ble High Court of Judicature of Bombay,
vide its Order dated 15th October, 2010.
The Scheme provides that it shall become effective upon satisfaction of
the conditions set out in the Scheme therein, including receipt of
necessary approvals from Government Authorities. Accordingly, upon
receipt of the requisite approvals, as aforesaid, the Effective Date of
the Scheme was December 20, 2010.
In accordance with the terms of the Scheme of Arrangement an aggregate
of 44,432,100 equity shares of Re 1 each of DTL were issued as fully
paid up, to the members of DSSL whose names are recorded in the
register of members on the record date, in the ratio of 3(three) equity
shares in DTL of face value of Re 1 each for every 10(ten) equity
shares of Rs 2 each held by such member in DSSL.
Pursuant to the Scheme, the equity capital of the company stands
reorganised in a manner that each shareholder of the company whose name
appeared in the Register of members of the company on the Record Date
shall receive 4 fully paid Equity Shares of the face value of Re 1 each
of the company in lieu of every 10 equity shares of the face value of
Rs 2 each held.
In accordance with the Scheme, the following effects have been given in
the books of account of the Company:
3. Segment Information
The company operates in the single segment of System Integration and
Services.
4. Related Party Disclosures
a. The names of related parties and the nature of relationship are as
under:
S. P. Corporation Firm in which Wholetime
Directors have substantial
interest.
Shirish M. Anjaria Chairman and Managing Director
Parag J. Dalal Wholetime Director
Dharmesh S. Anjaria Wholetime Director
Trigem Infosolutions Limited Company in which Wholetime
Directors have substantial
interest
Dynacons Technologies Limited Company in which Directors have
substantial interest
5. Lease Commitments
Operating Lease
The company has taken office premises on lease under cancelable
operating lease agreements that are renewable on a periodic basis at
the option of both the lessor and the lessee. Rental payments under
such leases are Rs. 315,200/- (Previous year Rs. 287,285/-).
6. Retirement Benefit Plans
Defined benefit plan
Gratuity Plan
The present value of the defined benefit obligation and the related
current service cost were measured using the Projected Unit Credit
Method with actuarial valuations being carried out at the balance sheet
date.
7. Foreign Exchange Exposure:
The company has not entered in any forward contract for hedging or
otherwise in respect of foreign currencies during the year, and there
are no such contracts outstanding at the end of the year.
As of the Balance Sheet date, the Company has net foreign currency
exposure that are not hedged by a derivative instrument or otherwise,
amounting to Rs.1,824,639/- (Previous year Rs. 1,905,062/-).
8. Other Notes
a) In the opinion of the Board of Directors, Current Assets, Loans and
Advance have the value at which these are stated in the Balance Sheet,
if realised in the ordinary course of business and the provisions for
all known liabilities is adequate and not in excess of or less than the
amount reasonably necessary.
b) Previous year's figures have been regrouped or rearranged or
reclassified wherever necessary to confirm to those of the current
year.
Mar 31, 2010
Company Overview
Dynacons Systems & Solutions Ltd. is an IT solutions company with
global perspectives and is engaged in providing a comprehensive range
of end-to-end solutions to customers. Dynacons has the technical
expertise and the service delivery infrastructure to serve Customers at
a level of quality consistent with their expectations. Dynacons helps
in the selection of the right technology and application that will
yield the greatest return and build a business case for implementation
based on lower Total cost of ownership and higher performance.
1. Contingent Liabilities
a) Claims against the Company not acknowledged as debts:
Income Tax demands Rs. 686,491/- (previous year Rs 686,491/-). Against
this, the Company has deposited a sum of Rs 60,000 under protest. No
provision is necessary since the Company expects favourable decisions.
b) Guarantees given by the companys bankers Rs. 38,86,462/- (previous
year Rs 34,74,285/-)
2. Disclosures as per Micro, Medium and Small Enterprises Development
Act, 2006 (MSMED)
Particulars 2010 2009
Amount (Rs.) Amount (Rs.)
a. Amounts payable to suppliers
under MSMED
(suppliers) as on March 31, 2010
- Principal NIL NIL
- Interest due thereon NIL NIL
b. Payments made to suppliers beyond
the appointed day during the year
- Principal NIL NIL
- Interest due thereon NIL NiL
c. Amount of interest due and payable
for delay in payment (which have
been paid but beyond the appointed
day during the year)
but without adding the interest
under MSMED NIL NIL
d. Amount of interest accrued and
remaining unpaid as on 31
March, 2010 NIL NIL
e. Amount of interest remaining due
and payable to suppliers disallowable
as deductible expenditure under
Income Tax Act, 1961
NIL NIL
Note: The information has been given in respect of such vendors to the
extent they could be identified as micro and small enterprises as per
MSMED on the basis of information available with the Company.
3. Segment Information
The company operates in the single segment of System Integration and
Services.
4. Related Party Disclosures
a. The names of related parties and the nature of relationship are as
under:
S. P. Corporation Firm in which Wholetime Directors have
substantial interest.
Shirish M. Anjaria Chairman and Managing Director
Parag J. Dalai Wholetime Director
Dharmesh S. Anjaria Wholetime Director.
Trigem Infosolutions
Limited Company in which Wholetime Directors have
substantial interest
Dynacons Technologies
Limited Subsidiary
5. Lease Commitments
Operating Lease
The company has taken office premises on lease under cancelable
operating lease agreements that are renewable on a periodic basis at
the option of both the lessor and the lessee. Rental payments under
such leases are Rs. 348,299/- (Previous year Rs. 198,580/-).
Defined benefit plan
Gratuity Plan
The present value of the defined benefit obligation and the related
current service cost were measured using the Projected Unit Credit
Method with actuarial valuations being carried out at the balance sheet
date.
The following tables set out the status of the gratuity plan and
amounts recognized in the Companys financial statements as at March
31,2010:
6. Foreign Exchange Exposure:
The company has not entered in any forward contract for hedging or
otherwise in respect of foreign currencies during the year, and there
are no such contracts outstanding at the end of the year.
As of the Balance Sheet date, the Company has net foreign currency
exposure that are not hedged by a derivative instrument or otherwise,
amounting to Rs.l,905,062/-(Previous year Rs. 1,747,226/-).
7. Scheme of Arrangement:
A scheme of Arrangement has been presented under Section 391 to 394 of
the Act for transfer and vesting of Marketing & Distribution Business
and Manufacturing Business of Dynacons Systems & Solutions Limited into
Dynacons Technologies Limited. The approval of the shareholders of
both the companies has been obtained and the petition for the same has
been admitted to the High Court for approval. The effect of the scheme
shall be given in the accounts on sanctioning of the scheme by the High
Court.
8. Other Notes
a) In the opinion of the Board of Directors, Current Assets, Loans and
Advance have the value at which these are stated in the Balance Sheet,
if realised in the ordinary course of business and the provisions for
all known liabilities is adequate and not in excess of or less than the
amount reasonably necessary.
b) Previous years figures have been regrouped or rearranged or
reclassified wherever necessary.
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